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AI Tokens Jump After Elon Musk’s AGI Bombshell

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AI Tokens Jump After Elon Musk’s AGI Bombshell

Elon Musk’s claim that Tesla could be the first company to achieve Artificial General Intelligence (AGI) sent Decentralized AI (DeAI) tokens surging up to 7.4% within 24 hours.

The post reignited speculative demand across blockchain-based AI infrastructure tokens, lifting trading volumes across the category.

Why it matters:

  • AGI narrative cycles historically drive short-term capital rotation into DeAI and tokenized compute projects
  • Elevated volume across the AI-token basket signals active sector repositioning, not isolated price moves
  • Musk’s reach on X (Twitter) amplifies retail momentum faster than most market catalysts

The details:

  • Bittensor (TAO) and Virtuals Protocol each climbed 7.4% in the 24 hours after the post
  • Internet Computer (ICP) rose 6.4% and Kite added 6.6% over the same window
  • Artificial Superintelligence Alliance (FET) posted a smaller gain of 4.7%
  • Musk’s post on X drew immediate engagement, including a reply thread from entrepreneur Simon Squibb
  • Not all AI-linked tokens moved higher, as performance across the broader category was mixed

The big picture:

  • DeAI tokens covering decentralized compute, agent economies, and tokenized intelligence networks have traded closely with AGI-related news cycles throughout 2024–2025
  • Tesla’s robotics and autonomous AI divisions give Musk’s AGI claims more structural credibility than social media speculation alone
  • The broader AI token category on CoinGecko tracks dozens of projects, making selective rotation a key indicator of conviction within the sector

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Four months on, MEV Capital falls victim to $4B DeFi daisy chain implosion

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Four months on, MEV Capital falls victim to $4B DeFi daisy chain implosion

Almost four months have passed since the devastating disassembly of a DeFi daisy chain, which saw the value of the so-called “yield vault” sector drop by over $4 billion.

Since then, many of the “risk curators” involved have kept a low profile, while others are keen to rebuild confidence.

Last week, it became clear that one such curator hadn’t managed to weather the storm.

MEV Capital dissolves

Last week, The Big Whale reported that MEV Capital would be taken over by one of its partners, Belem Capital. Citing DeFiLlama figures, the article highlights an 80% drop in MEV Capital’s assets under management, dropping from $1.5 billion to $300 million.

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The drop-off was sparked by the firm’s exposure to looped-leverage yield strategies involving deUSD, which depegged in early November in response to the collapse of Stream Finance (not, as the article claims, in the infamous October 10 market crash).

Elixir announced it would discontinue deUSD shortly thereafter.

MEV Capital’s CEO Laurent Bourquin, “seems to have abruptly stepped back,” according to the article.

Additionally, asset tokenization platform Midas Capital disclosed that it had “concluded all business” with MEV Capital, handing management of mMEV and mevBTC to RockawayX. 

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DeFi’s ‘risk curator reckoning’

In late October, worries began to circulate over the integrity of a number of high-yield vault tokens across the DeFi sector.

Days later, one of these risk curators, Stream Finance, collapsed spectacularly after admitting it had lost $93 million. With the quality of its backing exposed, Stream’s vault token, xUSD, lost 75% of its value.

Other assets in the “daisy chain” of recursive lending followed suit, notably Elexir’s deUSD.

The resulting domino effect saw a scramble to unwind leverage across a handful of projects. In all, almost half of the sector’s $10 billion in total value locked was wiped out over the following month.

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It’s since recovered slightly, sitting at around $6 billion.

Some handled it better than others, with users often waiting weeks with no news. Risk curator Re7 Labs even made legal threats to a self-styled “whistleblower” who had publicly complained on behalf of depositors.

‘Any curators reading these reports?’

November’s yield vault apocalypse hinged on recursive lending and borrowing of vault tokens between interconnected projects.

More sustainable projects, however, went unscathed. They’ve increasingly leaned into “institutional-grade” offerings of on-chain, but somewhat more tangible, real world assets (RWA).

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The aforementioned Midas Capital tokenizes off-chain funds such as Fasanara’s F-ONE (as mF-ONE), for example. These come with regular reporting on the state of off-chain assets.

However, some remain unconvinced, asking “any curators reading these reports?” in response to Midas’ recent disclosure of an inaccuracy in their mF-ONE reporting. Another X user called the reporting “trash,” pointing to delays and missing information.

It should be noted that both accounts are contributors at Yearn, a fully on-chain yield aggregator platform.

Read more: Yearn hacker loses $2.4M of $9M loot as tokens burned from wallet

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Off-chain risk, now on-chain

DeFi is often seen as plenty risky enough, but it’s certainly not immune from outside risks.

A detailed December report from curator Steakhouse Financial drew attention to a 2% drop in Midas-tokenized fund mF-ONE, in line with the real-world version.

The dip wasn’t enough to cause any mF-ONE collateralized positions to be liquidated, but still raised eyebrows as a novel asset class in DeFi.

Last week, risk management firm Chaos Labs revisited the episode, pointing to “a bankrupt auto-parts supplier” as the source of the shortfall.

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It makes the case that “yield is risk,” and that “off-chain doesn’t mean safe by default.”

Steakhouse, whose high-yield vault is exposed to mF-ONE, said the post contained “inaccuracies and selective presentations” and accused Chaos Labs of “plagiarismgooning and fudmaxxing.” 

Founder of Steakhouse, Sébastien Derivaux, insisted that mF-ONE is “fit for high yield vaults as collateral.”

Worth it?

The mechanics of bringing RWAs into DeFi are complex. They also make adhering to the maxim “don’t trust, verify,” reliant on issuers’ reporting on off-chain assets.

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Even stranger, their use as collateral may even see lenders receiving lower yield than the collateral itself. Whilst assuming both counterparty and underlying asset risk.

Got a tip? Send us an email securely via Protos Leaks. For more informed news and investigations, follow us on XBluesky, and Google News, or subscribe to our YouTube channel.

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MEXC Expands Tokenized Stock Listings Through Ondo Finance Partnership

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Coinbase, Kraken, Stocks, Bitpanda, Tokenization, RWA Tokenization

Crypto exchange MEXC has expanded its tokenized equities offering through its partnership with Ondo Finance, listing new onchain representations of US stocks that trade against Tether on its platform.

According to company announcements this week, the expansion includes 17 newly listed tokenized stock pairs and seven additional tokens tied to US defense and energy companies.

The tokens are issued as ERC-20 assets on Ethereum and trade against Tether (USDT) pairs on the exchange. The underlying shares are held in regulated trust accounts and subject to quarterly third-party audits, with the tokens designed to represent ownership of the corresponding underlying equities.

A March 3 announcement introduced 17 additional tokenized stock pairs spanning sectors such as technology, healthcare and finance.

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Trading fees for the 17 newly listed tokenized stock pairs will be waived for the first 30 days. The companies did not disclose the names of the individual companies included in the batch.

A separate release on Wednesday added seven tokenized equities tied to defense and energy companies, including Lockheed Martin (LMT), RTX (RTX), ConocoPhillips (COP) and Occidental Petroleum (OXY). Withdrawals for the newly listed tokens are scheduled to begin March 5.

The partnership builds on a series of tokenized equity listings MEXC has introduced with Ondo Finance since launching the product in September 2025. The 17 new pairs are the ninth expansion of the offering.

MEXC is a centralized cryptocurrency exchange founded in 2018 and offering spot and derivatives trading for digital assets. According to CoinMarketCap data, it is the ninth-largest exchange by spot trading volume.

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Ondo Finance is a New York–based blockchain company that focuses on bringing traditional financial assets onchain through tokenization. At the time of writing, assets issued through Ondo total about $2.66 billion in tokenized value, according to RWA.xyz data.

Coinbase, Kraken, Stocks, Bitpanda, Tokenization, RWA Tokenization
Source: RWA.xyz

Related: Kraken debuts tokenized stock perpetual futures for non-US traders

Crypto exchanges move to tokenize assets

The race among crypto exchanges to tokenize stocks has been gaining momentum.

In June, more than 60 tokenized equities became available on exchanges including Kraken and Bybit through Backed Finance’s xStocks product. The lineup included major companies such as Apple, Amazon, Nvidia, Tesla, Meta and Netflix.

Gemini has also moved into the sector through a partnership with Dinari. In July, the exchange said customers in the European Union could trade a growing list of tokenized US stocks on its platform, including shares tied to companies such as Exxon, Sony, BlackRock and Visa.

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To be sure, tokenized equities remain largely unavailable to US users as the industry awaits clearer regulatory guidance for blockchain-based securities.

In the meantime, several exchanges are expanding into traditional equities through brokerage-style services. In April, Kraken said it would begin offering trading in about 11,000 US-listed stocks and exchange-traded funds as part of a phased rollout across the United States.

Over the past few months, Coinbase and Bitpanda have also announced stock trading features that allow users to buy and sell equities alongside cryptocurrencies on the same platforms.

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