Ripple Courtroom Battle Will Go On Longer Than Expected

On February 5th, 2025, MicroStrategy officially rebranded to Strategy with a Bitcoin-focused marketing approach. The company remains the largest corporate Bitcoin holder with 471,107 BTC.

High Investor Demand

Besides MicroStrategy, other companies like Metaplanet, Semler Scientific, and Rumble have also adopted Bitcoin (BTC) as a treasury asset. BlackRock in particular is expanding its Bitcoin offerings with a Bitcoin ETP in Europe, following the success of its IBIT ETF in the US.

Elsewhere, the South Korean Financial Investment Association (KOFIA) is advocating for crypto ETF approval due to high investor demand both locally and internationally. Rumble also recently committed $20 million to Bitcoin as a hedge against inflation, purchasing its first Bitcoin earlier this year.

Bitcoin As A Lifeline
Following the rebranding, MicroStrategy will continue its focus on business intelligence software and Bitcoin treasury strategy. Co-founded by Bitcoin advocate Michael Saylor, it holds 471,107 BTC, valued at over $45.6 billion.

Saylor often points to how Bitcoin can help companies with limited financial flexibility. To that end, Metaplanet adopted a Bitcoin reserve strategy in April 2024 and plans to hold 10,000 BTC by 2025. Semler Scientific, which adopted Bitcoin in 2024, saw a 30% surge in its stock price. Both companies were struggling financially before adopting Bitcoin as a treasury asset.

Public Citizen, a U.S.-based non-profit, has called for a federal investigation into President Donald Trump and his promotion of the TRUMP meme coin.

The complaint, submitted to the Department of Justice (DOJ) and the Office of Government Ethics (OGE), claims Trump may have violated laws prohibiting the solicitation of gifts by the public.

Unlawful Gift Solicitation

The TRUMP token, mostly owned (80%) by CIC Digital LLC, a Trump Organization affiliate, has raised concerns about enabling untraceable foreign transactions. Public Citizen argues that the U.S. President blatantly promoting it could be considered an unlawful gift solicitation under federal laws, including 18 U.S.C. § 201 and 5 C.F.R. § 2635.

The official complaint cites a January 2024 tweet by Trump promoting the token, where Public Citizen notes that while the President can accept gifts, soliciting them for personal gain is prohibited. They argue that the tweet and promotion through Truth Social ask for money in exchange for a digital receipt with no tangible product.

Concerns About Foreign Influence

Experts have criticized the token as lacking value, with the complaint likening the transaction to a donor sending a check for digital confirmation. Public Citizen also raised concerns about foreign influence, citing the difficulty of tracking cryptocurrency transactions.

They have also urged the DOJ and OGE to investigate whether these actions violate the Emoluments Clause, which restricts government officials when it comes to accepting gifts by foreign entities. The non-profit is calling for immediate action if the promotion of the meme coin is deemed an illegal solicitation.

TIGER 21, a network of high-net-worth investors, has allocated up to $6 billion in crypto within its $200 billion portfolio.

The Importance Of Bitcoin

According to Michael Sonnenfeldt, the founder of TIGER 21, the company has allocated a maximum of 3% of $200 billion in digital assets. He noted that Bitcoin is gaining recognition as a store of value, similar to gold, and serves as a hedge against instability in countries like Argentina and Lebanon.

Additionally, Sonnenfeldt mentioned that nearly 80% of the portfolio is invested in real estate, private equity, and other long-term assets, with its cash position dropping to under 10% for the first time in 17 years.

Growing Institutional Interest

TIGER 21 operates on an invitation-only model, with a minimum of $20 million in investable assets required to join. Since its founding in 1999, the network has grown to over 1,600 members across 53 global cities.

In any case, the $6 billion crypto position reflects the rising institutional interest in digital currencies, particularly as the U.S. regulatory environment becomes clearer. The total crypto market cap is currently at $3.3 trillion, with Bitcoin dominance at 61.42%.

Jupiter was recently hit by a major security breach that compromised its X (formerly Twitter) account. As of this writing, the Solana-based DEX aggregator is still trying to control the situation.

Damage Control

The hacker exploited Jupiter to promote a fake meme coin, $MEOW, causing widespread panic among the community. The scam reportedly tricked unsuspecting traders into purchasing the fraudulent token, leading to millions of dollars in losses within minutes.

Jupiter Mobile quickly issued a warning to its users, urging them to avoid clicking on any links shared through the compromised account. Despite these efforts, the hacker continued to post about another suspicious token, $DCOIN.

Increasing Concerns

Unfortunately, many users reported losing their hard-earned tokens, highlighting the severity of the breach and the vulnerability of assets in the DeFi space. The hack also sparked a wave of criticism by the crypto community, with many questioning how a platform handling billions in liquidity could fail to secure its social media accounts.

With the breach still unresolved and the X account remaining compromised, concerns about the overall security of crypto platforms have only deepened, and it is the community which continues to suffer.

The XRP Ledger experienced a rare disruption on Tuesday, halting block production for about an hour before recovering spontaneously. The network froze at ledger height 93927173, but validators quickly investigated and confirmed that no assets or transactions were lost.

Back Online

The XRP Ledger is now fully operational, and transactions have resumed as normal. David Schwartz, CTO of XRPL, explained that while consensus was running, validations were not being published, causing the network to drift.

He also suggested the network recovered on its own without major changes by UNL operators. Although the incident raised concerns about transaction safety, Schwartz clarified that no assets were at risk. The disruption is part of ongoing technical challenges faced by the XRP Ledger, including previous node failures and emergency patches in 2024.

Key Changes

In January 2023, the XRPL Foundation reduced the validator influence of Ripple by removing one of its operated validators, dropping its control to 2 out of 34. The UNL was later expanded to 36 validators in March 2023.

Despite concerns by critics, Daniel Keller, CTO of XRPL node operator Eminence, confirmed that all 35 validators were actively proposing. XRP Ledger also made changes to its fee structure, reducing the account activation reserve requirement to just 1 XRP.

Ethereum (ETH) is getting ready to launch their game, Moonray, on both Xbox and PS5. Blockchain-based games will not achieve widespread adoption without mainstream platforms, says Moonray Studios CEO Rodrigo Etcheto.

Although exact release dates are still to be confirmed, the porting process is underway, and the team plans to begin playtests in mid-2025.

Reaching A Larger Audience

Moonray is an Ethereum-based multiplayer battle arena game. It has been available on PC through the Epic Games Store since last July. The game is slated to launch on Xbox Series X and PlayStation 5 later this year.

Blockchain-based games will not achieve widespread adoption without mainstream platforms, says Moonray Studios CEO Rodrigo Etcheto. He stated that most gamers are already on platforms like PlayStation, Xbox, and Steam, so to bring gamers into Web3, it is important to meet them where they are.

Without engaging with players on their terms, he added, blockchain games will struggle to reach a large audience.

Working Within The System

Moonray becomes the second Web3 title to make its way to mainstream consoles, following the early-access release of the first-person shooter Off The Grid on Xbox Series X and PlayStation 5 in October.

Etcheto believes Moonray has successfully struck the right balance between cross-platform gameplay to engage as many players as possible, while still adhering to the guidelines of each platform. This was especially tricky for Epic Games as they do not support cryptocurrencies.

In fact, for crypto games specifically, working within these guidelines has not always been straightforward. In October 2021, Valve, the company behind Steam, banned blockchain-based games on its platform as well as any crypto or NFT-related content.

Semler Scientific recently acquired over $88 million worth of Bitcoin (BTC), with a reported paper gain exceeding 150%.

In a press release on February 4th, the healthcare technology and software company stated that it purchased a total of 871 BTC between January 11th and February 3rd for $88.5 million, which translates to an average purchase price of $101,616 per Bitcoin.

Massive ROI

Besides the paper gain, the company also reported a cumulative yield of 152% between July 1st, 2024, to February 3rd, 2025, following the implementation of its Bitcoin treasury strategy. It also highlighted a 22% yield for the year thus far.

As of February 3rd, Semler holds 3,192 BTC, purchased for a total of $280 million. The company funded its cryptocurrency acquisition using a senior convertible notes offering and the liquidation of part of its minority stake in Monarch Medical Technologies.

10th Biggest BTC Holder

Eric Semler, Chairman of Semler Scientific, says he is excited about the progress the company is making in increasing their Bitcoin reserves. He also expressed satisfaction with the partial monetization of the Monarch Medical investment to facilitate additional Bitcoin purchases.

According to Bitcoin Treasuries, Semler is now the 10th-largest corporate holder of Bitcoin, as institutional adoption continues to grow.

The U.S. Securities and Exchange Commission (SEC) is downsizing its crypto enforcement unit, reassigning over 50 staff members. Meanwhile, SEC Commissioner Hester Peirce is now leading a new crypto task force to create clearer regulations.

Reducing Government Intervention

According to The New York Times, several crypto unit members have been moved to other departments, and at least one senior lawyer was removed within the enforcement division, which some insiders see as an unfair demotion.

This shift aligns with President Trump pushing to reduce government intervention in crypto, aiming to make the U.S. a global leader in digital assets. Hester Peirce has repeatedly criticized the past approach which the agency has taken, calling it legally vague and impractical.

Complete Overhaul

The restructuring also raises concerns about ongoing SEC lawsuits, such as the one against Coinbase, which the SEC claims operates as an unregistered securities platform. Under former SEC Chair Gary Gensler, the agency faced backlash for its unclear regulatory stance on crypto.

This overhaul is part of the broader Trump administration effort to reform crypto regulations, including repealing the controversial SAB121 policy and rejecting the creation of a central bank digital currency (CBDC).

The decision by U.S. President Donald Trump to temporarily pause tariffs on Mexico and Canada gave the cryptocurrency market a much-needed boost, following sharp losses after his initial tariff proposal.

Market Reacts

The move, which came after discussions with Canadian Prime Minister Justin Trudeau, also saw the announcement of a $1.3 billion border security plan between the U.S. and Canada. Meanwhile, tariffs on Mexico were similarly delayed, with both governments agreeing on a series of trade and security measures.

The crypto market quickly rebounded, with Bitcoin (BTC) climbing past $100,000 and Ethereum (ETH) recovering to $2,800 after significant drops. Speculation also grew about potential Bitcoin investments after Trump signed an executive order exploring a U.S. sovereign wealth fund, which was also supported by Senator Cynthia Lummis.

Big Leadership Changes

Treasury Secretary Scott Bessent was appointed acting director of the CFPB after Trump removed Rohit Chopra, though the reasons behind the change remain unclear. Trump also recently fired former SEC Chair, Gary Gensler, after years of Gary waging a one-man war on the crypto industry.

Trump has also been busy positioning his preferred candidates in leadership roles at major U.S. financial regulatory bodies, contributing to an overall shift in sentiment that saw the Crypto Fear & Greed Index rise into the Greed zone.

An increasing number of American parents are no longer choosing 529 college savings plans, instead opting for Bitcoin (BTC), viewing it as a long-term investment and inflation hedge.

Despite its volatility, Bitcoin has outperformed traditional investments like stocks. Some use it as a full replacement for 529 plans, while others see it as a way to diversify, trusting their children will have time to manage market ups and downs.

Setting Up For Life

Financial expert Rajat Soni said that investing $10-$100 of Bitcoin per month for 18 years will set your kids up for an excellent life, claiming it will massively outperform the rest of the portfolio. BTC nearly hit $110,000 this year, which has increased investor confidence, with some predicting further growth.

However, it should be mentioned that opting for Bitcoin over 529 plans means losing tax benefits like tax-free withdrawals for education expenses. Still, many feel this is worth the risk.

Bitcoin Keeps Growing

Bitcoin adoption is also growing among institutional investors, with over 70 publicly traded companies now holding more than 600,000 BTC. Political figures like President Trump have shown their support, with some countries, such as the Czech Republic and Hong Kong, exploring Bitcoin reserves.

Experts like Travis Kling, founder of Ikigai Asset Management, argue that the decentralized nature, fixed supply, and global accessibility of Bitcoin make it a stronger financial asset. He predicts Bitcoin could reach a market cap of $15 trillion by 2035, potentially surpassing U.S. Treasury bonds.

Pepe (PEPE) was trading around $0.00001 on Tuesday, following a 23% drop last week. The recent correction has caused over $20 million in liquidations within two days. On-chain metrics also show weakness, with negative funding rates and a sharp decline in the Network Realized Profit/Loss (NPL) indicator, suggesting further downside.

Massive Liquidations

PEPE fell 11% on Sunday, hitting a low of $0.000007 on Monday before a brief recovery. This triggered the aforementioned $20 million in liquidations, raising concerns about increased selling pressure. On-chain data shows more traders betting on further declines.

Meanwhile, the OI-Weighted Funding Rate is negative at -0.0059%, indicating bearish sentiment. Additionally, the NPL indicator dropped sharply, showing that holders are realizing losses, which could lead to additional selling.

Price Outlook

After facing resistance on January 18th, PEPE fell 47% and is now below its 200-day EMA. If it closes below $0.000010, a further 40% drop is possible, potentially revisiting its August low. The RSI remains at 32, signaling more room for decline before reaching oversold conditions.

Still, the meme coin has managed to gain some semblance of price improvement over the past 24 hours, increasing by nearly 10%, although it is down by over 24% on a weekly basis.

A recent report by Sygnum Bank suggests that AI agents, while popular, remain highly speculative. Despite these challenges, the sector remains promising, and projects with real utility may lead future AI-driven crypto advancements.

Utility Over Hype

In its quarterly outlook, the Swiss crypto bank noted growing interest in AI-driven crypto initiatives, particularly AI agents. Despite their traction, these agents have yet to prove their value beyond speculation.

Meanwhile, infrastructure projects like Bittensor (TAO), the Artificial Superintelligence Alliance (FET), and Phala Network are tackling more practical challenges by integrating AI with decentralized applications (dApps).

Widespread Adoption

In any case, AI agent tokens have grown rapidly over the last few years, with their total market cap surpassing $15 billion by Q4 2024. Agentic AI, which automates decision-making, is a key driver behind this growth and is valuable in areas like trading, social media, and DeFi.

Industry leaders like Sam Altman and Mark Zuckerberg predict that AI agents will become entirely mainstream by the end of 2025. However, Sygnum cautioned that these agents are still vulnerable to external factors, such as cheaper AI technologies like DeepSeek, which recently triggered a U.S. stock market crash.