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MetaMask Ethereum Token: Traders Bet on Timing as Joe Lubin Hints at Imminent Drop

by admin September 20, 2025

In brief

Myriad Markets gives ~32% odds MetaMask launches a token before November; Polymarket traders price higher for a 2025 drop.
CEO Joe Lubin has confirmed a token is coming and says the timeline may be “sooner than expected,” stoking airdrop speculation.
Regulatory risk looms: SEC’s lawsuit against ConsenSys could delay or shape the token’s design, distribution, and launch window.

Is MetaMask finally launching a token? Ethereum co-founder and Consensys CEO Joe Lubin said this week that the long-awaited token tied to the popular crypto wallet is “on the way” and “may come sooner than you would expect”—and Myriad traders are betting on just how soon that might mean.

At the time of this writing, a prediction market on Myriad Markets currently put the odds of MetaMask launching an official token before November 1 at about 32% Yes. No timeline has been announced, but traders don’t appear to believe that Consensys is ready to roll out the token in a matter of weeks.

(Disclaimer: Consensys is one of 22 investors in an editorially independent Decrypt, and Myriad Markets is a product of Decrypt’s parent company, DASTAN.)

Polymarket users, meanwhile, give a 46% chance that the token will launch by the end of the year.

Lubin made the latest comments in an interview with The Block this week, explaining that a native token (nicknamed MASK) would be part of MetaMask’s decentralization roadmap.

MetaMask was created by Consensys in 2016 as part of its “mesh” of Ethereum-focused projects, and it has remained one of its wholly owned products ever since. When Consensys raised its Series D funding round in 2022 at a $7 billion valuation, MetaMask (and Infura) were explicitly cited as core revenue drivers inside the company—not portfolio investments.

Consensys has been dangling the prospect of a token since 2021, when Lubin first confirmed it would be part of a broader plan to decentralize the wallet’s governance. Over the next few years, Lubin repeated that a token was coming but stressed it wouldn’t be a quick cash-grab; the team wanted to avoid a speculative frenzy and focus on “progressive decentralization.”

In the meantime, MetaMask’s official channels even warned users about scam airdrops, confirming no launch date had been set. Over the years, MetaMask rolled out staking and bridging features, while Consensys recently launched the Linea layer-2 Ethereum network and LINEA token—moves widely seen as laying the groundwork for a token economy.

MetaMask also just launched a stablecoin called mUSD, which provides some evidence that infrastructure and regulatory groundwork are being laid. The stablecoin is live on Ethereum and Linea, suggesting they are both preparing user-facing features and on-ramps for the token era.

What we still don’t know

Despite strong hints, several critical details remain unclear:

Timing: Lubin’s statements are vague. “Sooner than expected” is subjective and doesn’t give a firm date. We don’t know if “sooner” means weeks, months, or just “within the same year.”
Tokenomics and utility: What exactly the token will do is only partially described. Governance? Rewards? Access to features? There are suggestions, but no full white paper or specifications have been published.
Distribution/qualification: Who will receive the token? Will it be retroactive, via airdrop, or earned by activity? Those details are not yet public.
Regulatory risk: Any token tied to a major wallet with many U.S. users will draw regulatory scrutiny. MetaMask and Consensys will have to navigate laws around securities, know-your-customer (KYC), token issuance, and what counts as utility vs. financial return.

The takeaway

Putting this together, here’s a smart bet: MetaMask is very likely to launch a token, and apparently sooner rather than later. The existence of Myriad’s prediction market (“No” being more likely before November) shows there’s reasonable skepticism, but executive confirmations from Lubin push the probability significantly upward.

Disclaimer

The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.

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September 20, 2025 0 comments

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$270B Market Tracking Crypto’s Growth

by admin September 20, 2025

The $270 billion stablecoin sector has grown significantly but still accounts for less than 8% of crypto’s total market cap, a level it has held since 2020, according to a JPMorgan research note.

That dynamic could turn the coming wave of U.S. stablecoin launches into a zero-sum contest, unless the crypto market itself expands significantly, analysts led by Nikolaos Panigirtzoglou wrote.

Tether, whose USDT is primarily used overseas, plans to debut a U.S.-compliant token, USAT. Unlike USDT, whose reserves are about 80% compliant with U.S. requirements, USAT’s backing would fully meet the new regulatory standards, the bank said.

Stablecoins are cryptocurrencies whose value is tied to another asset, such as the U.S. dollar or gold. They play a major role in cryptocurrency markets, providing a payment infrastructure, and are also used to transfer money internationally. Tether’s USDT is the largest stablecoin, followed by Circle’s (CRCL) USDC.

The passage of U.S. stablecoin legislation in July has already spurred a fresh round of launches aimed at Circle’s USDC, which dominates the U.S. market, the report noted.

While new players are jockeying for position ahead of regulatory implementation, the stablecoin market’s growth remains tied to crypto’s overall market cap, the analysts wrote.

Circle is also losing ground to competitors like Hyperliquid, whose exchange alone accounts for nearly 7.5% of USDC usage, as well as fintech giants PayPal (PYPL), Robinhood (HOOD), and Revolut, which are rolling out their own tokens, JPMorgan said.

In response, Circle is developing Arc, a blockchain tailored to USDC transactions, to improve speed, security, and interoperability and keep USDC central to crypto infrastructure.

Without significant expansion, the new wave of stablecoin competition may simply redistribute market share rather than grow the pie, the report added.

USDC supply has surged to $72.5 billion, 25% ahead of Wall Street firm Bernstein’s 2025 estimates, the broker said in a report earlier this month.

Read more: Circle’s USDC Market Share ‘On a Tear,’ Says Wall Street Broker Bernstein

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September 20, 2025 0 comments

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Bitcoin May Benefit From US Debt, Ray Dalio Reveals How

by admin September 20, 2025

Ray Dalio, the founder of Bridgewater Associates, has sparked a conversation around Bitcoin and non-fiat assets. Dalio shared his views recently at the FutureChina Global Forum 2025. Speaking on the state of the U.S. economy, Dalio noted that gold and no-fiat currencies like Bitcoin could become more critical to financial stability.

Ray Dalio indirectly spotlights Bitcoin as safe-haven asset

Notably, the Bridgewater founder observed that across the globe, different governments are engaging in heavy borrowing. This trend increases the risk that fiat currencies face in terms of value. He believes these currencies will weaken over time and their values will drop.

This is a general progression when government-issued currencies like the U.S. dollar, euro, pound sterling or yen are printed to manage growing debt profiles. With countries dealing with too much debt and printing money, inflation is inevitable.

However, he implied that assets like gold and Bitcoin that are outside government control will naturally gain more relevance as a store of value. Their purchasing power will remain stable or even increase. Dalio foresees a future where many investors will turn to Bitcoin and other non-fiat currencies to protect their wealth.

Dalio encouraged smart investors to consider devoting about 10% of their portfolio to gold. This could also apply to Bitcoin and other crypto assets of their choosing. Given Bitcoin’s growth trajectory, the asset appears as a credible alternative to fiat currencies.

Despite its fluctuations and volatility, which scare many investors, Bitcoin has gained over 83% in the last year. The asset, which hit an all-time high (ATH) of $124,457.12 on Aug. 13, 2025, still flashes signs of upward movements.

As of press time, Bitcoin is trading down by 1.68% at $115,651.64. The trading volume has also dropped by 36.36% to $41.54 billion. Nonetheless, investors continue to bet on the future outlook of the coin.

Is institutional adoption fueling Bitcoin’s store-of-value narrative?

Institutional investors like Strategy, Metaplanet, Marathon Digital Holdings and Bullish, among others, continue to accumulate Bitcoin as a store of value.

Strategy, led by Michael Saylor, remains the most aggressive accumulator of the digital asset. As of the last count, the business intelligence firm now holds a total of 638,985 BTC. Saylor has continued to hold his “Bitcoin or nothing” stance in the face of growing criticism of his increased stockpiling.

While Dalio and others believe in the value of digital assets and non-fiat currencies, Peter Schiff, a gold advocate and Bitcoin critic, disagrees. Schiff argues that Bitcoin lacks the features of a true asset that could store wealth or value.

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September 20, 2025 0 comments

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PayPal’s PYUSD Stablecoin Now Available On 9 More Chains

by admin September 20, 2025

Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

PayPal’s stablecoin PYUSD is now available on nine more blockchains, thanks to integration with LayerZero’s interoperability protocol.

PayPal’s Stablecoin Now On Tron, Avalanche, & Seven Other Networks

As announced by LayerZero in a blog post, PayPal USD (PYUSD) is getting a major expansion through integration with its Stargate Hydra system, allowing users to move the stablecoin to blockchains on which it is natively unavailable. This is made possible with PYUSD0, a new permissionless token that’s fully fungible with the original PYUSD.

Currently, PayPal’s stablecoin is natively issued by Paxos on Abritrum, Solana, Ethereum, and Stellar. With PYUSD0, it will now also be transferable to Abstract, Aptos, Avalanche, Ink, Sei, Stable, and Tron. According to LayerZero, more networks beyond these are also set to come.

Previously, PYUSD was already bridged to two other networks, Berachain (BYUSD) and Flow (USDF), and both will now be receiving upgrades to PYUSD0. This makes a total of nine networks on which the new token will be accessible.

“As the stablecoin market continues its rapid growth beyond $270 billion, innovations like this are essential for creating the seamless, interoperable financial infrastructure that users and developers demand,” says David Weber, Head of Ecosystem, PayPal USD.

PayPal launched its stablecoin back in 2023, becoming one of the first payment processing giants to embrace fiat-tied tokens. Since then, the firm has been taking measures to increase the reach of its coin, most recently with the Stellar version launch on Thursday.

Now, with the LayerZero integration, the company has taken another step toward its goal. “By working together, we will enable PYUSD to reach new markets faster while maintaining compliance and composability from day one,” notes Weber.

The PYUSD0 system is built on three pieces of infrastructure: PayPal’s stablecoin itself, Stargate Hydra, and LayerZero. Stargate, which was acquired by LayerZero last month, acts as the transfer interface, while LayerZero handles minting, burning, and deployment of PYUSD0 to the new blockchains.

“With PYUSD0, PayPal USD expands its reach and flexibility to work across today’s networks and tomorrow’s,” says Bryan Pellegrino, Co-Founder and CEO at LayerZero Labs. “Launches like this make it obvious that we are at the start of a global financial market that breaks down borders and works around the clock.”

Besides its stablecoin, PayPal has also been making developments in its cryptocurrency payments ecosystem lately. In late July, the payments processor firm unveiled a “Pay with Crypto” service to help merchants receive digital asset payments, and earlier this week, it also announced cryptocurrency integration into its peer-to-peer (P2P) payments system.

Bitcoin Has Seen A Pullback During The Past Day

Bitcoin recovered to $117,900 on Thursday, but the asset has since gone down as its price is back at $116,400. The below chart shows how the coin’s recent trajectory has looked.

The price of the asset seems to have overall moved sideways over the last five days | Source: BTCUSDT on TradingView

The pullback in Bitcoin and other digital assets has induced $133 million in long liquidations over the last 24 hours, according to data from CoinGlass.

The data for the cryptocurrency liquidations during the past day | Source: CoinGlass

Featured image from Dall-E, CoinGlass.com, chart from TradingView.com

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.

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September 20, 2025 0 comments

Grayscale launches multi-asset crypto ETF

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Grayscale debuts first U.S. multi-asset crypto ETF on NYSE Arca

by admin September 20, 2025

Grayscale just rolled out a multi-asset crypto ETP on NYSE Arca, introducing a fund that tracks five major cryptocurrencies. This offers a fresh approach for tapping into diversified exposure across the digital-asset class.

Summary

Grayscale launched the first U.S. multi-asset crypto ETF, listed on NYSE Arca.
The ETF tracks Bitcoin, Ether, XRP, Solana and Cardano, covering over 90% of crypto market cap.
The product shifts from OTC to exchange-traded, improving liquidity and access.

According to a September 19 press release, the Grayscale CoinDesk Crypto 5 ETF ticker kicked off trading on the NYSE Arca this Friday. It’s now the first U.S.-listed exchange-traded product that holds more than two digital assets.

The fund mirrors an index curated by CoinDesk Indices and includes Bitcoin (BTC), Ether (ETH), XRP, Solana (SOL), and Cardano (ADA). Shifting from its earlier over-the-counter listing, this move marks a major step up in accessibility and liquidity for the established product.

A first-of-its-kind product with broad market reach

Developed by Grayscale Investments, the world’s largest digital-asset manager, GDLC tracks the five most liquid and widely traded assets and is engineered to provide concentrated exposure to the market’s established leaders.

According to data from CoinDesk Indices as of late August, this basket captures more than 90% of the entire cryptocurrency market capitalization, a figure calculated by excluding stablecoins and memecoins from the top 100 tokens. This offers a pure play on the core value drivers of the digital-asset ecosystem through a single, tradable security.

The launch represents a maturation in how institutional and mainstream investors can access crypto. Instead of navigating the complexities of multiple wallets and exchanges, investors now have a streamlined vehicle for a diversified crypto strategy.

“Grayscale CoinDesk Crypto 5 ETF has met the growing investor demand for diverse exposure to crypto for nearly a decade and investors are increasingly turning to the ETP wrapper for their crypto exposure. GDLC is a purpose-built innovation designed to meet that demand, bringing simplicity and transparent access to the most liquid and largest crypto assets,” Grayscale CEO Peter Mintzberg said.

Despite its scope, GDLC is not registered under the Investment Company Act of 1940. This means the product does not offer the same regulatory protections or operate under the same strict guidelines as traditional ’40 Act–registered ETFs or mutual funds.

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September 20, 2025 0 comments

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Public Keys: Alt Autumn Arrives, Kindly Investors Leave Bitcoin Stock, and Here Comes the SOL

by admin September 20, 2025

In brief

Rex-Osprey launched XRP and DOGE ETFs, and the SEC debuted streamlined listing standards for commodity-based trust shares.
Forward Industries became Solana’s first $1 billion treasury company, with Helius planning a $500 million SOL treasury raise
KindlyMD shares dropped 54% after filing S-3 registration, releasing $200 million in discounted shares that created sell pressure

Public Keys is a weekly roundup from Decrypt that tracks the key publicly traded crypto companies.

Alt Autumn loading

The U.S. Securities and Exchange Commission press release didn’t actually mention altcoins, but crypto ETF hopefuls haven’t wasted time rushing their funds toward the starting line.

The regulator has streamlined generic listing standards for commodity-based trust shares, meaning that as long as applicants meet the listing standards of the Nasdaq, Cboe BZX, and NYSE Arca exchanges, they can opt out of applying for a rule change for individual funds like every other crypto ETF issuer so far.

The rule change didn’t have unanimous support, though. Commissioner Caroline Crenshaw said in a statement Wednesday that the new rule amounts to “passing the buck on reviewing these proposals and making the required investor protection findings, in favor of fast tracking these new and arguably unproven products to market.”

Rex-Osprey was first out of the gate with its Rex-Osprey XRP ETF and Rex-Osprey DOGE ETF. The company is also working to bring a leveraged option to market, the Rex-Osprey DOJE Growth & Income ETF, for traders who want big risks and big rewards.

It’s still early, as the filing doesn’t yet mention a fee. But the objective is to pay weekly distributions by selling calls, while targeting 1.05 to 1.5 times the daily move of its newly trading DOJE Dogecoin ETF—resetting exposure every day. It’s a product for short-term traders, not buy-and-hold investors.

Dogecoin jumped as high as $0.28 earlier this week on the bullish news, but the gains haven’t been long lasting. At the time of writing, DOGE was down over 5% to $0.26.

Kindly leave

KindlyMD CEO David Bailey did a pre-flight check on Monday, pointing out the exits to investors who weren’t comfortable with some near-term volatility. The company’s shares dropped 54% to $1.26 that day. And after the closing bell on Friday, the price hasn’t improved much.

The company’s shares—which trade on the NasdaqGM under the NAKA ticker symbol—finished the day trading for $1.40, after having lost 6% in the past day and down 87% over the last month.

The company became a Bitcoin treasury company when it merged with Nakamoto Holdings, Bailey’s BTC holding company, earlier this year. The newly formed firm jumpstarted its Bitcoin treasury vision with a $200 million PIPE deal. But the discounted shares that were sold during that round were essentially locked until the company filed its S-3 registration with the SEC.

Once the registration was filed and deemed effective, there was $200 million worth of discounted shares creating sell pressure.

Bailey, ever the optimist, found a silver lining.

“I will say one of the unintended consequences of the stock being down is [that] everyone can buy in relatively cheap and ride with us,” he wrote on X. “The past week we’ve put up serious volume and one or two more days like yesterday and we’ll have churned and reset the cap table. Then we’ll have our convicted and aligned shareholder base.”

Grayscale has also listed its Digital Large Cap Fund after playing red light, green light with the SEC for months. The fund, which trades under the GDLC ticker, tracks a basket of assets that contains XRP, Solana, Cardano, Bitcoin, and Ethereum.

Treasured SOL

Solana got its first $1 billion treasury company, but that was just the beginning of bullish news for SOL digital asset treasuries.

The same day Forward Industries crossed the $1 billion mark, Helius announced plans to raise $500 million to build its own Solana treasury.

Two days later, Forward Industries debuted an at-the-market offering to raise another $4 billion in cash to buy more SOL. If it does raise the cash and spend the bulk of it buying Solana tokens, that could more than double the $3.1 billion worth of SOL already sitting with publicly traded companies.

Then, on Thursday, former chief legal officer at Kraken, Marco Santori, was named CEO at newly renamed Solana treasury Solmate. The company made its debut as a digital asset treasury by announcing a $300 million raise, and saw its stock soar 500%.

The news has been bullish for SOL, but not enough to save it from the malaise that’s hit the rest of the crypto market. At the time of writing, Solana was lagging 4% behind its price on Thursday and changing hands for about $238.

Other Keys

BitLicense boost: Newly IPO’d Bullish saw its shares jump on news that it’s been granted a BitLicense by the New York State Department of Financial Services. That means it’s now approved to operate in the state as a digital asset trading and custody business, and BitLicense aims to expand its broader U.S. presence as a result.

Itty, bitty buy: Strategy added $60 million worth of Bitcoin to its BTC treasury this week, the smallest buy it’s announced in a month. Although the company has raised around $68.2 million through its various preferred stock offerings, the company only spent $60.2 million on Bitcoin, leaving it with around $8 million in extra cash.

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September 20, 2025 0 comments

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Bitcoin Price (BTC) News: Escalator Up, Elevator Down

by admin September 20, 2025

Markets take the escalator up and elevator down goes an old Wall Street shibboleth, and crypto is following that script this week, with several days of hard-earned gains more than wiped away in Friday trade.

Nearly pushing through the $118,000 level at one point on Thursday after the Federal Reserve one day earlier trimmed interest rates for the first time this year, bitcoin BTC$115,664.14 has pulled back to $115,600, down 1.5% over the past 24 hours and now essentially flat over the past seven days.

Ether (ETH) has pulled back from the $4,750 area to $4,460, lower by 2.9% over the past 24 hours and now off 1.5% week-over-week.

Amid ETF excitement and growing institutional adoption, the two hottest crypto majors this week were solana SOL$239.03 and dogecoin DOGE$0.2659. Both, however, have returned to flat over the last seven days, with SOL lower by 4.5% over the past 24 hours and DOGE down 6.3%.

Technical factors suggest reason for optimism

In a world where U.S. stocks have been putting in record highs on a daily basis, it may seem that bitcoin has failed to gain much ground of late. Its price action over the past few weeks, though, has formed a clear ascending triangle pattern, highlighted by a series of higher lows, while pressing against horizontal resistance near $118,000.

Each pullback since early September has found support at a rising trendline, signaling steady accumulation and a bullish bias among traders. The market is currently consolidating in the $115,700 around the rising support line.

For now, the higher lows keep the advantage tilted toward bulls, with traders closely watching the $118,000 ceiling.

Bitcoin’s Higher Low Pattern (TradingView)

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September 20, 2025 0 comments

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Crypto Scam Bribery Scheme Busted by Elon Musk’s X Platform

by admin September 19, 2025

Large-scale operation
X’s crypto scam problem

X, Elon Musk’s social media platform that was formerly known as Twitter, has uncovered a bribery network that was operating against it.

Some of the suspended accounts tied to cryptocurrency scams attempted to get reinstalled by attempting to bribe the social network’s employees.

Large-scale operation

While the warning was specifically issued by X, it is worth noting that the malicious actors were also targeting other social media platforms like Instagram, YouTube, and TikTok.

The attackers have been linked to larger criminal organizations, including “the Com,” which is a notorious cybercrime group.

X’s crypto scam problem

X (formerly Twitter) is no stranger to security incidents involving cryptocurrencies.

Back in July 2020, the popular social media sites suffered the so-called “Celebrity Bitcoin Hack.” Various high-profile individuals, including Musk himself, Bill Gates, and so on.

The hacker managed to gain control of employee access controls with the help of clever social engineering.

Of course, the platform also continues to be plagued by bots impersonating prominent personalities such as Ripple CEO Brad Garlinghouse.

Following the latest incident, X has stated that the team’s commitment to ensuring the platform’s integrity remains “absolute.”

That said, some users have complained that Elon Musk’s social media platform is not doing enough to combat rampant bot networks.

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September 19, 2025 0 comments

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XRP Marks Another Win As SEC Approves Grayscale’s GDLC ETF

by admin September 19, 2025

Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

The cryptocurrency industry and the XRP market have scored a major win, with the United States Securities and Exchange Commission (SEC) approving Grayscale’s Digital Large Cap Fund, known as GDLC, for uplisting as an Exchange-Traded Fund (ETF). The timing of this approval has sparked renewed optimism among investors, particularly as XRP cements its position in a rapidly evolving crypto ETF landscape.

XRP Gains Legitimacy Through Grayscale’s GDLC ETF

On September 18, Grayscale Chief Executive Officer (CEO) Peter Mintzberg announced via X social media that the Grayscale Digital Large Cap Fund has been approved for trading under the SEC’s Generic Listing Standards. The move represents a watershed moment, as it will be the first multi-crypto asset ETP in the US market.

The product, now renamed the “Grayscale CoinDesk Crypto 5 ETF,” will provide investors with exposure to a diversified basket of five major digital assets, including Bitcoin, Ethereum, XRP, Solana, and Cardano. For XRP holders, this development is particularly significant, as it positions the cryptocurrency at the forefront of institutional-grade investment products.

Grayscale’s move ensures that XRP will share the same investment vehicle as the two largest cryptocurrencies, BTC and ETH, placing it firmly within the category of assets gaining mainstream recognition and adoption. This also marks a sharp turnaround from just a few years ago, when XRP’s regulatory uncertainty, stemming from the previous SEC lawsuit, had caused several crypto exchanges and platforms to delist the token.

Notably, Mintzberg highlighted the SEC Crypto Task Force’s role in driving the much-needed clarity for the industry, emphasizing that regulatory collaboration is accelerating the transition of digital assets into traditional finance. For XRP, this could mean greater visibility, more liquidity, and easier access for institutional investors who prefer ETF exposure over direct token purchases.

XRP ETF To Fuel Bull Flag Breakout To $15

According to crypto expert Zenia, XRP has confirmed a Bull Flag breakout, setting the stage for a short-term move toward $5.80. Beyond that, the analyst notes a larger pattern that stretches back to 2024, suggesting that XRP could target $15, representing a potential gain of more than 400% from its current levels.

The weekly chart shows XRP steadily recovering from its previous consolidation phase, with bullish candles pushing above $3.10 and momentum indicators such as the Relative Strength Index (RSI) holding strong without showing signs of exhaustion. Zenia has highlighted that the first target at $5.8 serves as the immediate resistance, while the second target at $15 represents the more ambitious upside projection tied to the Bull Flag structure.

Source: Chart from Zenia on X

With ETF exposure now in play, XRP could finally break free from the cycle of stalled rallies that have defined past bull markets. Zenia also notes that XRP’s partnerships with global financial institutions, such as DBS Group and Franklin Templeton, are creating real-world utility to complement its bullish technical setup.

XRP trading at $3.03 on the 1D chart | Source: XRPUSDT on Tradingview.com

Featured image from Adobe Stock, chart from Tradingview.com

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September 19, 2025 0 comments

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BNB Chain’s New Gold Protocol hit by $2m launch-day hack

by admin September 19, 2025

AI-driven, self-described “DeFi 3.0” staking protocol The New Gold Protocol, built “with sustainability at its core,” was hacked hours after launch. The hacking took place on Sept. 18, 2025. The hacker exploited two flaws in the design of NGP. The case demonstrates how negligence in protocol design may doom a project from day one.

Summary

Nearly $2 million in crypto was stolen from the just-launched New Gold Protocol platform via a flash loan attack.
Stolen money was sent to Tornado Cash. The hacker is not identified.
The team behind the New Gold Protocol keeps silent.
The biggest flash loan attacks resulted in over $100 million in losses.

What is New Gold Protocol?

The New Gold Protocol is a staking protocol built on top of the BNB blockchain and launched on Sept. 18.

One of the problems that The New Gold Protocol aimns to solve is the “lack of pricing rules.” According to the whitepaper, many DeFi protocols “lack standardized mechanisms for behavior pricing, resulting in volatility and disorder.”

The “next-generation DeFi 3.0” New Gold Protocol was meant to outperform competitors that do not have intrinsic earnings and whose governance models are inefficient. The NGP team saw the way to achieve transparency, fairness, and sustainability through AI optimization.

The New Gold Protocol was striving to create an inclusive staking platform with a transparent, automated environment sustained via smart contracts. Due to token burns, NGP promoted its native token as deflationary. It promised real-yield distributions instead of inflationary and speculative incentives. The NGP whitepaper suggested that transparency ensures accountability. However, it turned out that this was not enough.

How was NGP hacked?

The hacking took place shortly after the launch of the NGP token. The amount of NGP tokens that could be bought was limited to prevent price-inflation attacks, but the hacker found a way to bypass it.

According to analysts from blockchain security company Hacken, six hours before the attack the hacker accumulated a high number of assets via flash loans using different accounts. Flash loans are a feature popular on DeFi platforms. They allow borrowing crypto assets quickly without collateral. Borrowed funds may be used for arbitrage trading, stealing funds from a protocol, or price manipulation. As Hacken notes, the damage caused through flash loan attacks may amount to millions of dollars.

The attacker used an oracle-manipulation tactic. The protocol determined the NGP token price by scanning its reserves in the DEX’s liquidity pool, which allowed the attacker to manipulate the price. The attacker began swapping BUSD to NGP on PancakePair, which pumped NGP’s price quickly.

The New Gold Protocol contained two limits: a buying limit and a cooldown limit for buyers. Both were bypassed as the attacker used the “dEaD” address as the recipient.

The next move was draining nearly all the BUSD tokens from the protocol via selling NGP. It left The New Gold Protocol with almost no funds. The attacker then gained $1.9 million worth of crypto and immediately swapped the funds to BNB-based ETH.

According to the Hacken team, the following actions included depositing stolen funds to Tornado Cash through Ethereum bridged with Across. The action sent the NGP price up while leaving the protocol with only a small amount of funds. Soon, the NGP token price plummeted 88%.

Unfortunately, despite ambitious plans to reshape the DeFi sector and build a sustainable product, The New Gold Protocol neglected its own security and faced severe damage. The company did not comment on the issue. The latest tweet reads “stability meets growth.” It was published several hours before the attack and now looks like a bitter joke.

Other flash loan attacks

As soon as flash loans were introduced, flash loan attacks quickly became one of the tactics used by criminals.

The biggest attack took place in March 2023. The hacker managed to steal around $197 million in Wrapped Bitcoin, Wrapped Ethereum, and other assets from the Euler Finance protocol. The hacker was using an error in the platform’s calculation rate. The funds were sent to an address used earlier by the notorious DPRK hackers, the Lazarus Group. What made this case especially notable is that the hacker voluntarily returned all the funds and apologized.

Other notable examples include the Cream Finance hack ($130 million stolen in 2021) and Polter ($12 million stolen in 2024). A flash loan was part of the scheme used in 2025 to wipe out $223 million in crypto from the Cetus protocol based on Sui.

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September 19, 2025 0 comments