Author: dfmines

Suspicious trading activity led decentralized exchange Hyperliquid to delist the Jelly-my-Jelly (JELLY) memecoin, with details of an exploit unraveling over the course of a few days. The decentralized finance sector has already seen historic exploits in 2025, as the space struggles with issues of oversight and security. The Bybit hack saw North Korean hackers get away with $1.4 billion in February alone.The JELLY incident, in which a whale exploited the Hyperliquid exchange’s liquidation parameters, getting away with millions, is just the latest exploit to rock the industry. Observers roundly criticized Hyperliquid’s reaction to the short squeeze, with one even comparing it to the ill-fated FTX. Here’s a look at how the incident unfolded.Jelly token price crashes ahead of Hyperliquid exploitVenmo co-founder Iqram Magdon-Ismail launched the JELLY token as part of the JellyJelly Web3 social media project. Following the launch on Jan. 30, the token price crashed from $0.21 to just $0.01 some 10 days later. Jelly-my-Jelly token price lost most of its value in the first two weeks of trading. Source: CoinMarketCapWhile the coin’s market cap initially boasted almost a quarter of a billion dollars, by March 26 it had a market cap of roughly $25 million.A short squeeze of JellyJellyThe short squeeze on the JellyJelly token took place over the course of just a few hours on March 26. According to a postmortem by Arkham Intelligence, this is how it went down:The exploiter deposited $7 million on three separate Hyperliquid accounts, making leveraged trades on the illiquid Jelly token.Two accounts took $2.15 million and $1.9 million long positions on JELLY, while the other took a $4.1 million short position to cancel the others out.As the price of JELLYJELLY increased, the short position was liquidated, but it was too large to be liquidated normally.The short position was passed to the Hyperliquidity Provider Vault (HLP).The exploiter meanwhile had a seven-figure PnL from which to withdraw. By this point, the price of JELLY had pumped 400%.The exploiter began to pull withdrawals but Hyperliquid soon restricted their accounts. Instead of attempting further withdrawals, they began to sell their JELLY position.Hyperliquid shuts down Jelly marketAs the trader began to sell their remaining Jelly position, Hyperliquid shut down the market for the token. According to Arkham, the exchange closed the market with Jelly at $0.0095, the price at which the third account had entered its short trades. Hyperliquid announced on X that it would delist perpetual futures trading for the JELLY token, citing “evidence of suspicious market activity.”Related: Long and short positions in crypto, explainedThe exchange said, “All users apart from flagged addresses will be made whole from the Hyper Foundation. This will be done automatically in the coming days based on onchain data.” It further acknowledged the hit the HLP took when saddled with the long positions but said that the HLP’s positive net income was $700,000 over the last 24 hours: “Technical improvements will be made, and the network will grow stronger as a result of lessons learned.”Crypto observers criticize Hyperliquid Some market observers weren’t very impressed with how Hyperliquid handled the situation. The CEO of Bitget, Gracy Chen, wrote, “The way it handled the $JELLY incident was immature, unethical, and unprofessional, triggering user losses and casting serious doubts over its integrity.”She said that the exchange “may be on track to become FTX 2.0” and that the decision to close the Jelly market and settle positions at a favorable price “sets a dangerous precedent.” Alvin Kan, chief operating officer at Bitget Wallet, told Cointelegraph that the Jelly meltdown was just another example of how capricious hype-based price action can be. “The JELLY incident is a clear reminder that hype without fundamentals doesn’t last […] In DeFi, momentum can drive short-term attention, but it doesn’t build sustainable platforms,” he said. The market will continue to expose projects that are built on speculation, not utility, he concluded. Arthur Hayes, the founder of BitMEX, seemed to imply that reactions to the Jelly incident were overblown, writing on X, “Let’s stop pretending hyperliquid is decentralised. And then stop pretending traders actually give a fuck.” Source: Arthur HayesThe exchange had already taken action regarding leveraged trading earlier in March, increasing margin requirements for traders after its HLP lost millions of dollars during a large Ether liquidation. Related: Hyperliquid ups margin requirements after $4 million liquidation lossStill, Hayes could be right — “degen” traders who are at peace with the risk of DeFi may just eat the losses and continue onward. Furthermore, it doesn’t appear that a clear legal framework for DeFi is coming anytime soon, at least not in the United States. There may be no pressure or oversight, other than user reactions, to make “decentralized exchanges” change their ways. The true irony of the exploit is that it seems everyone lost out — the exchange, traders, and even the exploiter.In total, the trader deposited $7.17 million into their accounts but was only able to withdraw $6.26 million, with a balance of around $900,000 still remaining on their Hyperliquid accounts. If they are able to get the funds back, the exploit will cost them around $4,000; if not, it could have cost them almost $1 million. Magazine: Arbitrum co-founder skeptical of move to based and native rollups: Steven Goldfeder

Ethereum has lost its grip on the key $2,000 level, reigniting fears of a deeper correction as selling pressure returns to the market. Since March 19, ETH has managed to hold above $1,930, but recent weakness has pushed the price dangerously close to breaking below the $1,900 mark. The drop has added fuel to bearish speculation, with traders and analysts now questioning whether a larger pullback is underway. Related Reading: Avalanche 12-Hour TD Sequential Flashes Sell Signal After Nailing 50% Rally – Details The inability to hold above psychological support levels has weighed heavily on sentiment, especially as broader market volatility continues to grow. Top analyst Carl Runefelt shared his outlook on Ethereum’s current structure, noting that the asset has repeatedly failed to overcome resistance at $2,100 — a level that now acts as a firm ceiling for bullish momentum. According to Runefelt, this repeated rejection suggests Ethereum could be in serious trouble if buyers don’t step in soon. With momentum fading and no clear catalyst in sight, Ethereum risks slipping further if $1,900 fails to hold. Traders are watching closely for signs of a reversal, but for now, the path of least resistance appears to be downward. ETH must regain lost levels quickly to avoid confirming a broader bearish trend. Bulls Face Key Test As Resistance Weighs on Price Action Ethereum is under pressure as the broader crypto market faces one of its most crucial tests in months. With macroeconomic uncertainty mounting and fears of a potential recession in the United States, risk assets across the board are struggling to gain traction — and Ethereum is no exception. The current market environment remains hostile, with inflation concerns, unstable monetary policy, and global trade tensions shaking investor confidence. ETH’s price action has been particularly underwhelming. Despite widespread expectations that Ethereum would lead a strong rally in early 2025, the asset has failed to meet bullish projections. Instead of gaining ground, ETH has stalled and is now struggling to hold support levels amid growing selling pressure. Runefelt’s bearish outlook suggests that Ethereum has repeatedly failed to break through the $2,100 resistance level. According to Runefelt, this resistance zone is critical — and Ethereum’s inability to overcome it could be a sign of deeper weakness ahead. He warns that if Bitcoin experiences a breakdown, Ethereum could follow and potentially retest the wick near $1,750, which marked a local low during a previous correction. With momentum fading and no clear bullish catalyst in sight, Ethereum’s price structure remains fragile. Unless bulls reclaim key levels soon, ETH could face a deeper retrace, especially if broader market sentiment continues to deteriorate. Traders are closely watching Bitcoin and macroeconomic developments for cues, knowing that a decisive move in either direction could shape Ethereum’s next major trend. For now, the pressure is on — and Ethereum’s resilience is about to be tested. Related Reading: XRP Open Interest Has Surged 36% In Two Weeks – Is Momentum Building? ETH Bulls Struggle to Hold Key Support Ethereum (ETH) is currently trading at $1,910 after failing to hold above the critical $2,000 level, a psychological and technical barrier that has now flipped into resistance. The breakdown has weakened short-term momentum and left bulls in a defensive position as selling pressure continues to mount. At this stage, the $1,880 level has emerged as a key support zone that bulls must defend to avoid a deeper correction. Holding this level could allow for a consolidation phase and give Ethereum a chance to stabilize before attempting another push higher. However, if ETH loses $1,880, it could spark a wave of aggressive selling, triggering a continuation of the current downtrend and potentially pushing the price toward the $1,750 range. Related Reading: Ethereum Reclaims Realized Price – Bulls Face Strong Resistance At $2,300 To regain control of the trend, bulls must reclaim the $2,000 mark as soon as possible. A decisive move back above this level would signal renewed strength and could open the door for a rebound toward higher resistance zones. Until then, Ethereum remains in a fragile position, with the risk of further downside growing as macroeconomic pressure and technical weakness continue to weigh on price action. Featured image from Dall-E, chart from TradingView 

Blockchain developer platform Gelato is launching a new blockchain-as-a-service solution on Avalanche to meet the growing demand for sovereign blockchain infrastructure during a crucial “tipping point” for institutional adoption.Gelato, which previously developed blockchain solutions for companies such as Kraken and Animoca Brands, unveiled the new upgrade that aims to let developers deploy fully sovereign chains faster and cheaper with full interoperability via Avalanche InterChain Messaging (ICM).Gelato emphasized that its service is ideal for advanced applications such as financial technology (fintech) requiring identity verification (KYC) and specialized gaming economies, according to a March 28 announcement shared exclusively with Cointelegraph.The service lets companies quickly deploy independent (“sovereign”) blockchains with fewer costs and faster launch times.Luis Schliesske, founder of Gelato, said previously launching a blockchain required extensive technical knowledge and significant engineering resources. Gelato’s new product reduces the complexity involved. He told Cointelegraph:“Gelato’s RaaS on Avalanche streamlines everything from deployment and upgrades to real-time monitoring and scaling. It’s a plug-and-play solution that slashes time-to-market and operational burden bringing AWS-level infrastructure to the rollup era.”“The future of enterprise blockchain is sovereign, interoperable, and invisible to the end-user,” he added.Related: BlackRock Bitcoin ETP ‘key’ for EU adoption despite low inflow expectationsThe new solution will enable one-click layer-1 (L1) network deployment on Avalanche and leverage key network advancements such as dynamic fees and the removal of the Avalanche (AVAX) token staking requirements.“Avalanche L1s mark a paradigm shift in blockchain infrastructure, enabling a future where every application can run on its own sovereign chain, optimized for its unique needs,” according to Martin Eckardt, senior director of developer relations at Ava Labs.Total value locked, all chains. Source: DefiLlama Avalanche is the industry’s 10th largest blockchain network, with over $1.1 billion in total value locked (TVL) across its DeFi applications, DefiLlama data shows.Related: Fidelity plans stablecoin launch after SOL ETF ‘regulatory litmus test’Reliable infrastructure is a “prerequisite” for institutional crypto adoptionThe crypto industry is at the “tipping point” for institutional blockchain adoption, with increasingly more financial institutions looking to adopt the technology.However, financial institutions need more robust infrastructure to have the confidence to adopt blockchain and more crypto offerings, Schliesske said, adding:“Institutions will not build on crypto infrastructure that feels experimental or unreliable. […] That reliability is a prerequisite for onboarding financial institutions, governments, and large enterprises.”Fox News and eBay are some of the most prominent brands that have launched blockchain-based solutions on Gelato’s development platform.Magazine: Ex-Alameda hire on ‘pressure’ to not blow up Backpack exchange: Armani Ferrante, X Hall of Flame

Bitcoin’s price is currently at $85,288, with a market cap of $1.69 trillion and a 24-hour global trade volume of $30.19 billion. Throughout the past day, bitcoin has traded within a range of $84,784 to $87,723, reflecting a volatile market. Technical indicators across multiple timeframes suggest a prevailing bearish sentiment, with key oscillators and moving […]

Community members backing a Broccoli memecoin on BNB Chain are outraged, claiming their project was unfairly denied victory in the network’s liquidity support program.The BNB Chain Meme Liquidity Support Program, which kicked off on Feb. 18, offers $200,000 in permanent liquidity to the top-performing memecoins on the chain. But controversy erupted on day two of the competition on Feb. 19 when two memecoins — both inspired by Binance founder Changpeng Zhao’s dog Broccoli — went head-to-head.In the end, the Broccoli token ending in address “714” was declared the winner over the one ending in “F2B.” However, supporters of the F2B token say the result doesn’t add up.Related: BNB Chain scales up network as memecoin activity boosts transaction loadF2B Broccoli community investigation questions scoreAccording to the official leaderboard, both tokens earned a daily score of 5.7 in a system where lower is better. Per competition rules, a tie is broken by comparing trading volume, and 714’s token had the edge in that category.Feb. 19 ranking for BNB Chain’s meme liquidity competition. Source: BNB ChainBut an investigation conducted by the latter’s community now questions whether the 714 Broccoli token deserved the crown.In a video posted by the F2B community viewing the back-end data, their “BROCCOLI” token, with a token symbol in all caps, ranked first in its calculated daily score.Community members discovered their token ranked second publicly, even though it came first in back-end data. Source: F2B BROCCOLI communityThey then move to analyze the back-end data of the 714 Broccoli token (spelled without all caps), which had a daily score of 5.700000000000001 and ranked second.Rival Broccoli token ranked second in back-end data. Source: F2B BROCCOLI communityThe F2B community also attempted to calculate the scores themselves based on the formula cited by BNB Chain in a Feb. 14 blog post, and again in a Feb. 18 X post:“Score = (Market Cap Rank × 30%) + (24h Price Change Rank × 20%) + (24h Volume Rank × 50%)”Under that rubric, F2B appeared to have a clear edge — 5.5 points compared to 714’s 5.9 points.Related: BNB Chain flips Solana in daily fees, beats out all chainsBNB Chain claims score is legitIn a detailed response to the community inquiry shared with Cointelegraph, BNB Chain said that the community’s calculations relied on deprecated metrics. The actual scoring formula used by BNB Chain reflects:init_price_change_rankmarket_cap_rankacc_volume_rankThe community’s calculation relied on the deprecated “percent_change_24h_rank” and “volume_24h_rank.” When recalculated under the updated formula, both tokens scored 5.7 — making the official tie-breaker (volume rank) valid, according to the network. BNB Chain said the deprecated dimensions were removed on Feb. 21 to “prevent miscalculations by the community.” BNB Chain said the community relied on metrics that aren’t part of the official ranking formula. Source: BNB ChainBNB Chain also dismissed concerns about the overly precise 5.70000001 score, saying it was simply a result of floating-point deviations caused by the IEEE 754 standard and held no reference value for the actual score.Despite the clarification, many in the F2B camp remain unconvinced, arguing that the rules lacked transparency and shifted mid-competition.Magazine: Bitcoiner sex trap extortion? BTS firm’s blockchain disaster: Asia Express

US stock exchange Nasdaq submitted a filing to the US Securities and Exchange Commission (SEC) seeking permission to list Grayscale Investments’ spot Avalanche exchange-traded fund (ETF).The document, filed on March 27, asks for a rule change to list the Grayscale Avalanche Trust (AVAX). The derivative product in question would be a conversion of Grayscale Investments’ close-ended AVAX fund launched in August 2024.Grayscale said on its website that “its SEC-reporting Products present a strong case for uplisting when permitted by the U.S. regulatory environment.” The firm explained that, following the conversion, “the arbitrage mechanism inherent to ETFs would help the product more closely track the value” of the assets.At the time of publication, the Grayscale Avalanche Trust holds $1.76 million worth of assets under management. The current net asset value per share is $10.86 for just over 0.49 AVAX per share, worth $10.11 according to CoinMarketCap data, which puts the fund’s current market price at a 7.4% premium to the value of its underlying assets.Related: NYSE proposes rule change to allow ETH staking on Grayscale’s spot Ether ETFsGrayscale expands crypto ETF offeringsGrayscale’s website lists 28 crypto products, of which 25 are single-asset derivatives and three are diversified. The firm is among those currently waiting for the approval of its XRP spot ETF, as well as other products.Other examples include its spot Cardano ETF filing and its Litecoin Trust conversion to an ETF. These filings also follow the company’s successful conversion of its Ether and Bitcoin close-ended funds into spot ETFs.In 2024, Grayscale Investments also announced the conversion of a part of its Bitcoin and Ethereum ETFs into spinoff products. The new Grayscale Bitcoin Mini Trust (BTC) and Grayscale Ether Mini Trust (ETH) feature lower fees and follow their derivatives, losing capital to more cost-effective options.Related: BlackRock Bitcoin ETP ‘key’ for EU adoption despite low inflow expectationsUnited States Bitcoin ETF assets under management by product. Source: MacroMicroData reported at the end of 2024 shows that over $21 billion has been withdrawn from the Grayscale Bitcoin Trust (GBTC) since its launch on Jan. 11, 2024. This made it the only US-based Bitcoin ETF with a negative investment flow at the time.This product offering has the highest management fee among all the products, set at 1.5% per annum. The other ETFs range from 0.15% for the Grayscale Bitcoin Mini Trust to 0.25% for the highest-priced competitors.The situation, looking at Ethereum ETFs, is quite similar, with the lowest fee being the Grayscale Ether Mini Trust and the highest being its older Ethereum trust product. Competing offerings again do not charge more than 0.25%.Magazine: Arbitrum co-founder skeptical of move to based and native rollups: Steven Goldfeder

The SEC has dropped its probe into Crypto.com without charges, as the company blasted past crackdowns and vowed aggressive global expansion backed by sweeping regulatory approval. Crypto.com Prevails in SEC Investigation, Vows Continued Regulatory Leadership Crypto.com announced on March 27 that the U.S. Securities and Exchange Commission (SEC) has formally ended its investigation into the […]