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CEO of ‘Textbook Ponzi’ Pleads Guilty in $200M Bitcoin Fraud Case

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In brief

  • Prosecutors said Palafox raised $201M by promising daily returns of up to 3%.
  • At least $62.7M in losses were recorded, with funds spent on luxury goods and property.
  • The real issue is fraudulent behavior, not the underlying technology, one observer said.

The chief executive of Praetorian Group International, Ramil Ventura Palafox, pleaded guilty in Virginia this week to wire fraud and money laundering.

Palafox, 60, a dual U.S. and Philippine citizen, led the company as chairman, chief executive, and chief promoter. He oversaw a $200 million Bitcoin Ponzi scheme that prosecutors said had defrauded over 90,000 investors, with total losses of at least $62 million, according to a statement from the Justice Department.

The scheme promised daily returns of 0.5% to 3% through a Bitcoin trading program that never operated at scale. Instead, funds from new participants were recycled to pay earlier investors or spent on personal luxuries.



From December 2019 to October 2021, investors put in at least $201 million, including more than $30 million in fiat and more than 8,100 Bitcoin valued at $171 million at the time.

Palafox also spent around $3 million on 20 luxury cars, more than $6 million on four homes in Las Vegas and Los Angeles, and hundreds of thousands on penthouse suites and designer goods from brands like Rolex, Cartier, and Gucci.

PGI’s online portal showed investors fraudulent account balances and fictitious gains, reinforcing the appearance of safety. Prosecutors said the platform was central to maintaining the illusion until withdrawals mounted and the scheme unraveled.

“Praetorian is a textbook Ponzi scheme MLM structure with promises of unrealistic returns through “AI Bitcoin arbitrage,” and payouts funded by new investors,” Dan Dadybayo, research and strategy lead at Unstoppable Wallet, told Decrypt.

Here, Dadybayo is referring to multi-level marketing (MLM), a sales model where participants earn money both by selling products or services and by recruiting new members into the scheme.

Praetorian’s scheme “fits the same pattern as BitConnect, PlusToken, and OneCoin,” he noted.

Yet unlike larger-scale cases such as those of FTX and Mt. Gox, the Praetorian case “won’t leave a lasting mark,” he said. “It may create more skepticism around the term “arbitrage,” but for regulated players it’s almost a marketing win: they can point to their compliance spending as a safeguard.”

Such schemes keep emerging “because greed is universal, and regulators don’t have the resources to chase everyone,” he added.

Palafox is scheduled for sentencing on February 3, 2026, and faces up to 40 years in prison. He has agreed to restitution of $62.7 million, though actual sentences are typically less than the statutory maximum.

“The lesson for regulators is that the real issue is fraudulent behavior, not the underlying technology,” Dadybayo opined. “Instead of ever-expanding KYC/AML, a better approach is financial literacy, red-flag awareness, and stronger international coordination.”

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Tokens Resume Slow Grind Higher After Fed, Dollar Index Is Resilient Too
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Tokens Resume Slow Grind Higher After Fed, Dollar Index Is Resilient Too

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Analysts told CoinDesk early this week that major cryptocurrencies led by bitcoin would resume their slow grind higher following Wednesday’s Fed rate cut.

That’s exactly what has happened since the Fed cut rates by 25 basis points to 4% late Wednesday. The central bank also hinted rapid easing in the next 12 months.

Bitcoin BTC$117,104.48, the leading cryptocurrency by market value, topped $117,900, the highest level since Aug. 17, ending the sideways trend since Friday and resuming the slow recovery from early September lows near $107,200, CoinDesk data show. As of writing, the cryptocurrency was up nearly 1% on a 24-hour basis.

Ethereum’s ether (ETH) token, the second-largest cryptocurrency by market value, was up 2.7%, but remained locked within the four-week-long narrowing price range, or contracting triangle, as noted by CoinDesk early this week.

Other majors such as dogecoin DOGE$0.2798, solana SOL$244.70 and BNB (BNB) were up over 4% while the payments-focused cryptocurrency XRP traded nearly 3% higher, looking to build upside momentum in the wake of a bullish descending triangle breakout.

Programmable blockchain Solana’s SOL token briefly topped $245, almost testing the weekend high, as CME’s decision to offer SOL options from Oct. 13 raised hopes of increased institutional participation. These options will help institutions manage their exposure more effectively. The CME is also going to debut XRP options on the same day.

Matt Mena, crypto research strategist at 21Shares, said that the Fed’s openness to accelerate the pace of easing is creating an asymmetric setup for bitcoin.

“The dots [interest rate projections] leaned more dovish, signaling the Fed is open to accelerating the pace of easing if conditions demand it. That repricing risk is now front and center – creating an asymmetric setup for Bitcoin. While today’s 25bps cut provided the spark, it is the path implied by the dots – more than the cut itself – that may set the stage for Bitcoin to challenge new highs into year-end,” Mena said in an email to CoinDesk.

He added that bitcoin could set an all-time high above $124,000 by the end of October, with ether topping the $5,000 psychological barrier.

Dollar resilience could be a potential headwind

The path to new lifetime highs, however, may not be smooth, as the dollar is showing signs of life.

Despite the dovish Fed rate projections, the dollar index, which tracks the greenback’s value against major currencies, including the euro, has bounced to 97.30, quickly recovering from the initial drop below the July 1 low of 96.37.

Perhaps the Fed’s dovishness is already factored in by the foreign exchange markets. After all, the DXY has dropped 10% this year largely on the back of Fed rate cut bets. BTC, too, has rallied by 25% this year, hitting new highs above $124,000 in August, supported by dovish Fed expectations.

Dollar Index’s (DXY) daily chart. (TradingView/CoinDesk)

The dollar’s resilience likely reflects Chairman Jerome Powell’s emphasis that rapid, successive rate cuts are not guaranteed. He also highlighted that quantitative tightening (balance sheet runoff) remains in effect and inflation continues to run high. These remarks dampened the optimism sparked by the dovish dot plot projections.

A strong bounce in the DXY could lead to financial tightening, potentially weighing on BTC and other risk assets.

Tail risk pricing

Sophisticated market participants are pricing tail risk, according to crypto financial platform BloFin.

Tail risk refers to low-probability, high-impact events, such as market crashes or major economic crises, that cause disproportionately large losses, often occurring at the “tails” of a probability distribution.

“As one of the most interest rate-sensitive assets, the recent increase in interest rate risk has led to a growing demand for tail protection, prompting market makers and traders to incorporate more interest rate risk into their pricing. Meanwhile, block trades data also includes a short-dated (about 4DTE) put spread order with 2,000 contracts (clearly intended for tail protection), which is not often seen,” BloFin told CoinDesk.

A put spread is a strategy designed to profit from a decline in the price of the underlying asset, in this case, BTC.



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XRP and DOGE Spot ETF Approvals Almost Certain After Key SEC Rule Change
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XRP and DOGE Spot ETF Approvals Almost Certain After Key SEC Rule Change

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  • Watershed moment 
  • 100 crypto ETF launches?  

In a stunning win for the industry, the U.S. Securities and Exchange Commission (SEC) has greenlit generic listing standards for various cryptocurrency-based ETFs. 

Spot ETFs will be able to launch under the ’33 Act so long as they have futures on Coinbase. 

Hence, the tokens that are currently eligible for spot ETFs under generic listing standards include XRP, Dogecoin (DOGE), Stellar (XLM), Avalanche (AVAX), and even Shiba Inu (SHIB).   

Watershed moment 

Katie Haun claims that the approval reminds her of Grayscale’s case against the SEC. The game-changing DC Circuit, which was issued in August 2023, eventually paved the way for the approval of Bitcoin and Ethereum ETFs. 

“At the time, people overlooked the magnitude of that decision and the effect it would have on institutional interest in the space,” Haun said.

Haun has suggested that the market might end up overlooking this development as well. 

100 crypto ETF launches?  

As noted by ETF analyst Eric Balchunas, the last time the SEC implemented a generic listing standard in 2019, launches ended up tripling. The expert believes that more than 100 crypto launches will take place within the next 12 months. 

Earlier this week, Bitwise’s Matt Hogan compared the current state of the market to the Super Bowl pre-game show. He believes that cryptocurrency holders might be on the verge of a “spectacular” end-of-the-year rally due to an uber-bullish mix of surging ETF inflows and the Federal Reserve’s rate cuts. 



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The Ether Machine
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Ethereum Giant The Ether Machine Aims for US Public Debut

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The Ether Machine, an Ethereum treasury firm, has confidentially submitted a draft registration statement on Form S-4 with the US Securities and Exchange Commission as part of a planned merger with blank-check firm Dynamix Corporation.

Reports have disclosed the move as the next step in bringing the company’s large ether holdings onto public markets.

Draft Filing Ties To Dynamix Merger

According to filings and company posts, the S-4 is linked to a business combination between The Ether Machine and Dynamix that was first announced in July.

The merged entity would trade under the ticker ETHM when the deal closes, which market watchers expect to occur in Q4 2025 if shareholders and regulators approve the transaction.

Image: The Ether Machine

The company said it has engaged a Big Four auditor to bolster its financial reporting as it prepares for public scrutiny.

As of today, we have confidentially filed our S-4 with the SEC. We’re shifting into the next gear, and officially on its path to full public form 🔥

“The submission of our Form S-4 is a critical step towards becoming a publicly traded Ethereum company. We have also retained…

— The Ether Machine (@TheEtherMachine) September 16, 2025

The Firm’s Ether Hoard And Recent Financing

Based on reports, The Ether Machine now holds roughly 495,362 ETH, a stash valued at about $2.16 billion at recent prices, and has set aside roughly $367 million in cash to buy more ether.

The company also recently secured a $654 million commitment in a private financing round tied to a 150,000 ETH in-kind investment, a deal that brought a new board member to the firm.

ETHUSD now trading at $4,492. Chart: TradingView

Those moves have helped push the company’s balance sheet toward what backers call institutional-grade exposure to ether.

Funding Push And Big Investors

Reports have identified major crypto names among the backers. Investors such as Blockchain.com, Kraken and Pantera Capital participated in earlier financing, and organizers expect to raise more than $1.6 billion in the Nasdaq listing effort.

The Ether Machine is also lining up additional capital, with Citibank said to be leading a third fundraising round that may target at least $500 million. Those inputs matter because they will shape how much ether the public company starts its life with on the books.

Market Reaction

Market response to the deal was swift when it was first revealed: Dynamix stock jumped sharply in premarket trading after the merger was announced.

If the combination completes, The Ether Machine would become one of the largest publicly visible holders of ether, offering investors a way to gain regulated equity exposure to the token rather than buying it directly.

Featured image from Unsplash, chart from TradingView

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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How experts believe Bitcoin and altcoins will react
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How experts believe Bitcoin and altcoins will react

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With the Fed delivering a widely anticipated decision, experts are shifting attention to the tone.

Summary

  • The Federal Reserve has cut interest rates by 25 basis points, as markets anticipated
  • Fed’s tone leans dovish, potentially boosting Bitcoin and altcoins
  • Still, altcoins are not out of the woods yet, as there’s no definitive decision on further easing

The Federal Reserve delivered its long-anticipated 25-basis-point rate cut, the first cut of 2025. While markets fully priced the September 17 cut, all attention was on the Fed’s tone and what it signals for the future.

Notably, Fed Chair Jerome Powell emphasized risks to employment and growth and stated that the door was open for more cuts. This, together with the FOMC dissenter who called for a 50-basis-point cut, signals a dovish shift. crypto.news talked to several experts in the crypto space ahead of the decision, asking how this would affect the crypto markets.

A 25-basis-point cut was expected, but the stakes are higher than earlier, says Shawn Young, chief analyst at cryptocurrency exchange MEXC. With inflation still elevated, markets will closely watch the direction the Fed is taking.

In a bullish scenario, a dovish Fed outlook with further expectations of rate cuts could drive flows into BTC and other blue-chip coins, pushing the BTC price towards the $120,000–$125,000 range in the weeks ahead.

Farzam Ehsani, CEO at crypto exchange VALR, also suggested that Bitcoin may continue to face macro pressures. For Bitcoin, the key is the expansion of institutional liquidity, he added.

“Bitcoin’s relative underperformance against Gold and the S&P 500 highlights the current shift in market dynamics… investors are very selective about where they deploy their capital now.”

Fed’s decision could trigger altcoin rotation

According to Arthur Azizov, founder at B2 Ventures, the reaction to the Fed could boost Bitcoin and altcoins or lead to a “sell the news” scenario. The latter alternative is particularly likely if markets see the Fed’s decision as not dovish enough.

“Altcoins are even more sensitive. Solana, now above $230, looks strong but faces heavy resistance near $240-250, while XRP is defending the $2.90-$3.00 zone. The problem is liquidity: unless fresh inflows arrive, traders tend to rotate back into Bitcoin during uncertainty,” Arthur Azizov, B2 Ventures



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SEC Clears Path for ‘Waves’ of Crypto ETFs With New Listing Standards

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In brief

  • The standards bar leveraged and inverse trusts from using the generic path.
  • Eligible assets must already be traded on regulated, surveilled markets or backed by an existing ETF.
  • Solana and Litecoin ETFs could arrive within weeks, with Dogecoin and others in line, Decrypt was told.

The U.S. Securities and Exchange Commission signed off Wednesday on new generic listing standards for commodity-based trusts, a move that analysts say could swing the door wide open for crypto products beyond Bitcoin and Ethereum.

The new standards, approved for Nasdaq, Cboe BZX, and NYSE Arca, allow trusts that meet defined criteria to list without a separate Commission order. They bar leveraged and inverse structures, but create a pathway for commodity or crypto-linked products to qualify more quickly.

“It was expected, but big, because it’s gonna mean that about 12 to 15 coins are good to go,” Eric Balchunas, senior ETF analyst at Bloomberg Intelligence, told Decrypt in a call. “You start getting the coins coming in waves,” he said, adding that this factor is “pretty big” considering that “right now, only two really exist under the 33 Act.”



Balchunas was pointing to the Securities Act of 1933, often shortened to the ’33 Act. It is a U.S. statute that governs the initial offer and sale of securities to the public and requires issuers to register their products with the SEC and provide full, fair disclosure in a prospectus.

That statute has long been “the more appropriate place to file them,” for commodity-style funds like SPDR Gold Shares and BlackRock’s iShares Bitcoin Trust, Balchunas explained.

“It’s going to be real nice for investors to have 33 Act spot ETFs with reasonable fees and low trading spreads in the ETF wrapper, which has been vetted by the SEC. It’s a beautiful thing,” Balchunas said.

In a section on the discussions around the standards, the SEC said the rules are “designed to help prevent fraudulent and manipulative acts and practices” while improving market transparency and investor protection. These steps help “perfect the mechanism of a free and open market and a national market system,” the discussion reads.

In any case, the standards would require underlying assets to trade on surveilled markets, have a futures history, or already back an exchange-traded fund with significant exposure.

Trusts must also publish daily holdings, net asset values, and liquidity policies, while market makers face trading limits and firewalls to block misuse of non-public information.

Still, Balchunas thinks the SEC’s latest action sets the stage for the broadest expansion of crypto ETFs since spot Bitcoin products debuted last year.

Asked about ETF expectations for the near term or within the year, Balchunas said he sees Solana and Litecoin leading the next wave of approvals.

“You’re not going to see everything on one day,” Balchunas said. Solana and Litecoin ETFs could be the “ones that come out first, probably within a month,” he said, adding that Dogecoin could follow soon after.

An XRP ETF, meanwhile, may lag a bit, because “the futures aren’t exactly six months old, which is a criterion, so they might be a little later than the other ones,” he said.

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Fed Cuts Interest Rate in 'Risk Management' Move as Bitcoin Eyes Possible Upside
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Fed Cuts Interest Rate in ‘Risk Management’ Move as Bitcoin Eyes Possible Upside

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The Federal Reserve has returned to easing mode after ten months of taking a wait and see approach on the U.S. economy.

In a widely expected move on Wednesday, the U.S. central bank cut its benchmark fed funds interest rate range by 25 basis points to 4%-4.25%, the lowest since December 2022, in what Fed chair Jerome Powell called a “risk management cut.”

The Fed acknowledged that economic growth in the first half of the year “moderated” and the job market has “slowed.” This slowdown, Powell said during a press conference, is mostly due to changes in immigration. Nevertheless, there was no widespread support for a larger cut, he said, and that the Fed was right to wait to lower rates and will not be rushed to cut more aggressively.

The decision follows growing signs that the U.S. labor market has begun to decisively weaken, the latest being the August employment report which showed the addition of just 22,000 jobs to the economy and the unemployment rate rising to 4.3%, the highest since 2021.

“The Fed is under pressure to lean more dovish, and any successor to Powell is likely to favor faster and deeper rate reductions,” Chris Rhine, Head of Liquid Active Strategies at Galaxy, said. “While risk assets had largely priced in this cut, the updated dot plot aligns with recent sell-side forecasts, pointing to another 50bps of cuts ahead.”

Alongside that data, revisions to previous months’ reports showed far less jobs had been created than previously thought.

Added to that was political pressure in the form of President Trump’s repeated criticisms of the Fed’s hesitancy to act in the face of what he insists has been softening inflation. Powell said during Wednesday’s press conference that the Fed is “strongly committed to maintaining [its] independence.”

Bitcoin ‘new highs’ possible

In the minutes following the rate cut, the price of bitcoin BTC$116,862.68 rose about 1% before giving up gains. It is currently down about 1.5% since the decision, trading at $115,092.

Major U.S. stock indexes — which have been repeatedly carving out record highs for weeks ahead of the Fed move — also briefly rose on the news but later fell sharply. Gold followed a similar move.

“The dots leaned more dovish, signaling the Fed is open to accelerating the pace of easing if conditions demand it,” said Matt Mena, Crypto Research Strategist at 21Shares. “That repricing risk is now front and center – creating an asymmetric setup for Bitcoin. While today’s 25bps cut provided the spark, it is the path implied by the dots – more than the cut itself – that may set the stage for Bitcoin to challenge new highs into year-end.”

Looking ahead

A glance at the Fed’s dot plot shows that the Commission is torn about how the rest of the year will unfold. A slight majority of participants of the Federal Open Market Committee (FOMC) believe there could be two more rate cuts this year.

Seven out of the 19 participants see rates kept steady throughout the year.

UPDATE (September 17, 18:18 UTC): Adds dot plot projections and markets update alongside commentary.

UPDATE (September 17, 18:39 UTC): Adds quote on markets.

UPDATE (September 17, 18:45 UTC): Adds quotes from Federal Reserve chair Jerome Powell.



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Crypto Market Prediction: Shiba Inu to Add Zero or Hit $0.00002? Is Bitcoin in Stealth Rally to $120,000? Ethereum Can Start $5,000 Rally Here
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Crypto Market Prediction: Shiba Inu to Add Zero or Hit $0.00002? Is Bitcoin in Stealth Rally to $120,000? Ethereum Can Start $5,000 Rally Here

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The market might be ready for a long-awaited recovery, with numerous hidden signals on assets like Bitcoin, Shiba Inu and Ethereum. These assets are showing a good bullish dynamic that might turn into longer-term growth.

Shiba Inu has to choose

As Shiba Inu (SHIB) maintains its narrowing consolidation pattern, we are stuck with two scenarios here: either an anticipated push to $0.00002 or a painful return to the $0.00001 zone, which would essentially add another zero. 

  • Currently SHIB is located precisely inside an EMA cluster made up of the 50-100 and 200-day moving averages hovering around $0.0000129. For bulls and bears, this range has evolved into the ultimate battlefield. All attempts to break higher have been capped close to $0.0000140, while $0.0000124 has served as support for the downside. 

    SHIB/USDT Chart by TradingView 

  • A volatility breakout is anticipated, according to the tightening triangle structure, but it is unclear which way it will go. With $0.00002 in sight, the situation is bullish. Should SHIB successfully break above the resistance level of $0.000014 and clear the EMA cluster, the technical path would open toward $0.0000160 and possibly $0.0000200.

  • This size of a breakout would reestablish bullish sentiment, perhaps due to whale accumulation or resurgent retail demand. This scenario is unavoidable given SHIB’s history of sharp increases once momentum picks up. Including a zero is the bearish scenario. Conversely, if the $0.0000124-$0.0000120 support zone is not held, momentum would be sharply bearish.

If SHIB experiences a breakdown, it could plunge back to $0.0000100, wiping out months of attempts at recovery and adding another zero to its valuation. In addition to undermining investor confidence, this action runs the risk of locking SHIB into a protracted consolidation phase.

Bitcoin’s hidden growth

The world’s largest cryptocurrency, Bitcoin, may be getting ready for a surprise rally that could push it toward the $120,000 mark sooner than most people think. The price action of late has been surprisingly quiet. As of press time, Bitcoin is trading at about $116,300, with few notable breakouts. On the other hand, the market’s structure is gradually becoming better.

With strong long-term support at the 200-day EMA ($105,500), the price is consolidating above the 50-day EMA ($114,300) and 100-day EMA ($113,800). There is less chance of severe downside shocks thanks to this layered support zone, which indicates that a strong foundation is developing.

BTC/USDT Chart by TradingView

Most significantly, the Relative Strength Index (RSI) remains neutral at 59, allowing for a prolonged rally without entering overbought territory. In the past, these configurations frequently come before significant upward movements, as buyers gradually accumulate, raising prices without drawing much attention until a breakout has already occurred.

The area between $118,000 and $120,000 is the main resistance to keep an eye on. A clear close above $118,000 would probably validate Bitcoin’s covert increase and possibly start a surge of inflows driven by momentum. Following the clearance of $120,000, the next targets might move toward $125,000-$130,000, which are levels consistent with earlier bullish extensions.

Is Ethereum ready?

After a robust summer rally, Ethereum (ETH) has been consolidating, and despite slight setbacks, the framework for a further leg higher is getting stronger. ETH is showing resilience in the face of wider market volatility, as it is currently trading close to $4,490, comfortably above its critical moving averages.

The ability of Ethereum to maintain above the 50-day EMA ($4,285) and 100-day EMA ($4,218) is the most crucial technical consideration in this case. Throughout the recent uptrend, these levels have served as dynamic support, mitigating each correction. This cluster will continue to support the bullish bias as long as ETH stays above it.

There is also potential for more upside, according to momentum indicators. Currently, the Relative Strength Index (RSI) is firmly in neutral territory at 53. This indicates that Ethereum is not overbought and could easily withstand a further surge in buying pressure before going through its limit. The slight tapering of trading volume in recent sessions is consistent with the usual consolidation stages preceding a breakout move.

The psychological $5,000 mark is ETH’s immediate upward target. If ETH continues to rise through the current resistance level between $4,600 and $4,700, momentum-driven buying is likely to occur, propelling the cryptocurrency closer to that mark. The current rally may continue toward $5,200-$5,400, which corresponds to Fibonacci extensions from the prior surge, if the larger cryptocurrency market stays stable and liquidity inflows continue to be supportive.

On the downside, a retest of the 200-day EMA close to $3,760 might occur if the $4,200 support zone is not held. Nonetheless, the current market structure encourages continuation rather than collapse.



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Is Bitcoin Treasury Hype Fading? Data Suggests So

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

Bitcoin treasury companies have seen a record-breaking 2025 so far, but CryptoQuant data shows momentum has started to slow down.

Bitcoin Treasuries May Be Observing A Slowdown

In a new post on X, on-chain analytics firm CryptoQuant has discussed how the latest trend is looking when it comes to Bitcoin corporate treasuries. Popularized by Michael Saylor’s Strategy (formerly Microstrategy), the treasury playbook refers to a model where a publicly listed entity buys and keeps BTC as a reserve asset on its balance sheet.

The previous cycle saw this treasury strategy gain some steam, but things have gone up a notch this cycle as the success of Strategy has encouraged companies to go bolder.

As the below chart shows, 2023 peaked at just 15 new treasury buyers of Bitcoin, but the number more than doubled to 38 in 2024.

The number of new treasuries seems to have been accelerating | Source: CryptoQuant on X

2025 has only continued this trend of acceleration, with 89 companies already having added BTC to their balance sheets, when there are a few months left to go for the year.

That said, while 2025 has certainly been impressive so far, granular data could show early signs that a shift may be underway.

The new treasury companies established in the various months of 2025 | Source: CryptoQuant on X

As is visible in the above graph, the Bitcoin treasury strategy hype saw an increase over the year, peaking at 21 new firms in July. In August, however, the number dropped to 15, and in the first half of September, so far, just one new company has employed this model. Based on the data, CryptoQuant concludes, “the slowdown has begun.”

The cooldown in momentum is also evident in the stock charts of some of these firms.

Looks like these companies all saw a notable peak in their stock before seeing a sharp decline | Source: CryptoQuant on X

Examples of this include The Blockchain Group, which was sitting at +1,820% at its peak before seeing a decline to +443%, and Metaplanet, down to +55% from its +355% top. “Signs the hype is deflating as reality sets in,” notes the analytics firm.

Though while signs have been there for a slowdown, the big buyers haven’t looked done accumulating Bitcoin yet. Strategy has regularly been buying and has added $19.3 billion to its reserves year-to-date. Similarly, Metaplanet has expanded its treasury by $1.92 billion.

The cumulative USD amount invested by Strategy for each year | Source: CryptoQuant on X

Today, Bitcoin treasury companies as a whole control more than 1 million tokens, equivalent to 5% of the entire BTC supply in circulation. Strategy alone makes up for 66% of this stack.

BTC Price

Bitcoin has furthered its recovery over the past day as its price has surged to $116,600.

The trend in the price of the coin over the last five days | Source: BTCUSDT on TradingView

Featured image from Dall-E, CryptoQuant.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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Wormhole's W token enters 'value accrual' phase with strategic reserve
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Wormhole’s W token enters ‘value accrual’ phase with strategic reserve

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Wormhole has moved beyond its distribution phase, initiating a new strategy. By allocating on-chain and off-chain protocol revenue to a dedicated treasury, the cross-chain protocol is creating a direct link between its commercial success and the value of its native token, W.

Summary

  • Wormhole launched W 2.0 tokenomics with a new strategic reserve funded by protocol revenue.
  • The upgrade introduces a 4% base yield for governance stakers and smoother bi-weekly token unlocks.
  • The reserve ties W’s value directly to ecosystem growth, while changes aim to reduce market shocks and strengthen long-term alignment.

According to an announcement on September 17, the interoperability platform will begin channeling fees generated across its entire ecosystem, including its core messaging layer, the Portal bridge, and other applications, into a newly formed strategic reserve.

The Wormhole team said the treasury will be denominated in W and designed to be a permanent holder, systematically accumulating tokens to support long-term ecosystem growth.

Notably, the initiative is part of a broader “W 2.0” tokenomics upgrade and directly ties the treasury’s expansion to the protocol’s commercial performance, ensuring its war chest grows in tandem with network adoption.

Why Wormhole is reshaping W’s economics now

Nearly five years after its launch in 2020, the Wormhole has matured into one of the most widely integrated interoperability protocols, powering applications across more than 40 blockchains. With that scale comes both opportunity and pressure.

As institutions, governments, and corporations accelerate their on-chain experiments, Wormhole is positioning itself to capture value flowing across fragmented networks. A retooled W token lies at the center of that strategy, serving as the link between the protocol’s adoption curve and tokenholder incentives.

At its core, W is a capped-supply multichain asset. Of its 10 billion tokens, just under half, about 4.7 billion, are currently circulating. W carries governance rights, secures the network through staking, and directs resources toward long-term ecosystem growth.

But under the new 2.0 framework, its role is expanding. Wormhole has introduced a targeted 4% base yield for stakers who participate in governance, with the potential for higher returns tied to activity on flagship applications like the Portal bridge. Rewards are not guaranteed and remain emissions rather than revenue shares, but the design creates a more consistent incentive for users to remain engaged.

The Wormhole reserve

The most notable addition is the Wormhole Reserve. The reserve will be capitalized exclusively by on-chain and off-chain revenue generated across the Wormhole ecosystem. This includes fees from its core cross-chain messaging layer, its user-facing Portal application, and a suite of other ecosystem products.

Rather than distributing these profits, the protocol will use them to accumulate W tokens on the open market, creating a built-in, recurring source of demand that is directly correlated to network usage and adoption.

Complementing the reserve is a significant overhaul of the token’s emission schedule. According to the press release, Wormhole is abandoning its annual unlock cliffs in favor of a biweekly distribution model.

This change applies to several major token categories including Guardian Nodes, which represent 5.1% of the total supply, the Community and Launch allocation at 17%, the Ecosystem and Incubation pool at 31%, and Strategic Network Participants, who hold 11.6%.

By shifting to a linear, four-and-a-half-year vesting schedule for these groups, Wormhole intends to smooth out token releases, thereby reducing market shocks and fostering a more stable trading environment.

At the time of writing, the W token was trading at approximately $0.094, according to data referenced in the source material from crypto.news. The token also saw a price increase of more than 7.82% following the announcement.



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