Hey folks! Welcome to the latest edition of The Blockchain Bulletin. Over the last 24 hours, significant developments in the crypto space have brought surprises, shocks, and even eyebrow-raising moments. So buckle up! and dive into the whirlwind of crypto chaos and unexpected twists!
Kicking things off, Bybit has pulled off what many called a “crypto miracle” by recovering over half of the stolen Ethereum after the hack. The attack was no small affair—439,000 ETH and liquid-staked tokens vanished on Feb 21, totaling losses to $1.4 billion. Bybit CEO Ben Zhou assured clients that the deficit had been fully addressed. Moreover, Bybit promised an audited Proof of Reserves report using Merkle Tree technology. This aims to show a 1:1 asset ratio because, let’s face it, after losing that much crypto, everyone wants proof that their funds are safe. Besides, nothing screams transparency like a blockchain-backed audit report.
Meanwhile, the rapper Kanye West (Ye) posted on X, hinting at launching his blockchain, YZYCHAIN, which created a buzz in the community. Earlier this month, Ye rejected a $2 million proposal to promote a scam project, stating that coins prey on the fans with hype. Following his blockchain announcement, Polymarket even gave a 52% chance of Kanye dropping a coin by February’s end. However, speculations are rife on whether this is a real venture or just another gimmick.
On the other hand, Raydium (RAY) token holders were dealt a harsh blow after the token nosedived 31%. The cause? Pump.fun, a Solana-based token issuance platform, decided to go rogue by developing its own automated market maker (AMM). RAY plunged from $4.30 to as low as $2.87. The AMM’s discovery through the “amm.pump.fun” URL unveiled a swap interface with buy, sell, deposit, and withdrawal options—basically, everything you need to bypass Raydium altogether.
Previously, Pump.fun relied on Raydium for liquidity after certain market thresholds, but now it seems determined to keep things in-house. Consequently, liquidity providers watching RAY’s decline aren’t thrilled. Analyst BTCmask warned that failing to hold $4.50 support levels could push the token toward $2—and with that plunge, investors could face severe complications.e.
Meanwhile, Bitcoin decided to play it safe, spending the entire month of February stuck in a tight trading range between $93,000 and $101,000. However, in the early hours of Tuesday, the king of crypto dipped to $91K amid market volatility.
XRP didn’t fare much as its price dropped 3.97% to $2.4726. Continuous failures to climb past $2.60 have put traders on edge, with support hovering dangerously at $2.48. Analysts suggested that if XRP slips further, it could nosedive toward $2.20, adding to the market’s frayed nerves. Yet, amidst the price swings and volatility, politicians in Montana and Georgia took their shot at crypto regulation.
Montana’s House of Representatives rejected House Bill 429, which aimed to use Bitcoin as a reserve asset. Concerns about taxpayer funds being subjected to crypto’s volatility were too much for many lawmakers. “It’s still taxpayer money, and we’re responsible for it,” said Representative Steven Kelly. While Montana closed the door, Georgia opened it by introducing its second Bitcoin reserve bill, SB 228. Unlike its predecessor, SB 178, which proposed a 5% limit, this new bill had no restrictions. With bipartisan disagreements brewing, the Peach State’s legislative landscape seemed just as volatile as the crypto markets.
Adding more fuel to this week’s volatility bonanza, Pump.fun took another jab at Raydium by launching its AMM testnet. The feature introduces internal liquidity pools, aiming to lure meme tokens away from external providers. A test token called $CRACK even made its debut, proving that the crypto world’s naming conventions remain as colorful as ever. On-chain analyst trenchdiver101 reported that this move could help Pump.fun retain transaction fees and reduce dependency on Raydium.
If that wasn’t enough, Hong Kong-based Infini neobank faced a $49 million USDC hack on February 24. Hackers exploited a vulnerability in its smart contract, swiftly converting the funds into 17,696 ETH. Cyvers and Blocksec traced the funds to Tornado Cash, making recovery efforts even trickier. Infini’s founder, Christian Li, promised affected clients compensation while assuring everyone that the platform remains financially stable—though trust might take longer to repair than the actual code.
On the other hand, analyst Ali Martinez warned that the HYPE token might not live up to its name. Trading at $21.90 after dropping 8.25% in a single day, HYPE faces a potential bearish breakout. Should it breach the $19.29 support level, prices could fall to $13—a 44% plunge that might make holders reconsider their FOMO decisions. In a market where hype is often everything, the irony couldn’t be more perfect.
