Spritehood has sold 42,956 paid NFTs on Robinhood Chain in about 53 minutes, generating nearly $1.28 million for Pudgy Penguins co-founder Cole Villemain.

Spritehood NFT sale reached $1.28 million

The Defiant reported that Villemain launched Spritehood on Aug. 11 after previously being removed from the founding team of Pudgy Penguins, with the paid portion of the sale selling out in less than one hour.

On-chain analyst 0xlaplaced calculated that the mint generated about $1.2829 million, or approximately 684.28 ETH, based on the price of Ether during the sale. The final total came in well above an earlier estimate of roughly $755,000 that circulated before the mint had finished.

According to the analyst’s transaction review, buyers minted 37,430 NFTs for $17 each, producing $636,310 in proceeds. A second group of 5,526 NFTs sold for $117 each, adding another $646,542.

Combined, the two paid tiers generated $1,282,852 from 42,956 tokens. The deploying address had already distributed 1,488 NFTs at no charge through 20 zero-price transactions before the public sale, taking the full reported supply to 44,444 items.

Although the available figures show how many tokens moved at each price, the supplied report did not identify what determined whether a buyer paid $17 or $117. It also did not provide details about any benefits, future access, or other features attached to the collection.

Unverified code limits review of Spritehood’s mint

Spritehood’s contract appears with an “unverified” label on Robinhood Chain’s Blockscout explorer, according to The Defiant. An unverified contract can still operate and record transactions on-chain, but its human-readable source code has not been matched publicly with the deployed bytecode through the explorer.

Without that verification, buyers cannot use Blockscout to inspect the complete source code governing Spritehood’s pricing and distribution process. The label does not establish that the contract is malicious or faulty, though it reduces the information available for independent review through the explorer.

The reported mint figures instead come from an analysis of completed blockchain transactions. Since every paid tier can be calculated separately, the on-chain totals explain why the final proceeds exceeded the figure shared while the sale was still underway.

No information in the supplied report indicates that Robinhood organized, promoted or endorsed the Spritehood launch. Robinhood describes its network as a permissionless Ethereum Layer 2, meaning independent developers can deploy applications and tokens without each project representing an official Robinhood product.

Robinhood Chain has attracted speculative assets

Spritehood arrived about six weeks after Robinhood opened its Layer 2 network to the public. As crypto.news reported in July, Robinhood Chain launched as an Arbitrum-based Ethereum scaling network designed for tokenized stocks and decentralized finance applications.

The mainnet debuted with integrations involving infrastructure providers, including Alchemy, BitGo, and Chainlink. Robinhood also introduced Stock Tokens for eligible users outside the United States, while decentralized exchanges and lending applications supplied on-chain trading functions.

Despite its stated focus on financial assets, permissionless deployment has allowed unrelated tokens and speculative projects to enter the network. A July network review found that memecoin trading had become a major source of early activity, even though Robinhood built the chain around tokenized equities and real-world assets.

The network’s early activity also produced a gap between trading volume and available liquidity. Another July analysis found $570 million in launch-week trading volume against $21.68 million in liquidity, with incentive-backed decentralized finance deposits and speculative tokens driving much of the activity.

More recent figures cited by Bitmine Chairman Tom Lee placed Robinhood Chain’s cumulative decentralized exchange volume near $9 billion. Lee said the chain could expose Robinhood’s 27 million customers to Ethereum-based services, although the figure represented the company’s funded customer base rather than confirmed users of the blockchain.

ETH functions as Robinhood Chain’s native gas token, while network transactions settle through Ethereum. Buyers therefore need ETH to pay transaction fees when directly using applications deployed on the chain, including NFT contracts such as Spritehood.

Pudgy Penguins history follows Villemain’s new mint

Villemain, also known online as ColeThereum, helped create Pudgy Penguins with three other founders in 2021. The original collection contained 8,888 penguin profile-picture NFTs and sold out shortly after launch.

An earlier Pudgy Penguins history published by crypto.news said the initial mint priced the NFTs at about $90 each and generated more than $800,000. The collection later became one of the most recognized projects from the NFT market’s 2021 expansion.

Pudgy Penguins holders voted Villemain out of the founding team in January 2022. The removal followed community allegations that he had misused project funds and failed to deliver on parts of the project’s roadmap.

The claims remained allegations, and the supplied report said Villemain was not prosecuted over them. Entrepreneur Luca Netz later acquired control of the Pudgy Penguins brand in April 2022 for 750 ETH, taking over its leadership after the original team’s removal.

Under its new ownership, the project expanded beyond blockchain collectibles into physical toys, licensing deals, and the PENGU token. Pudgy Penguins has also continued to register periods of high secondary-market activity, including a 247% weekly sales increase to $9.3 million in July 2025.

What the Spritehood sale means for US buyers

Robinhood is a U.S.-listed brokerage, but use of its public blockchain does not mean an NFT carries Robinhood’s approval or the protections attached to a brokerage account. The company’s official disclosures describe Robinhood Chain as a permissionless and separate blockchain from its regulated financial services.

For U.S. buyers, the tax treatment of NFT purchases also differs from buying assets inside a standard brokerage account. The Internal Revenue Service treats digital assets as property, and its guidance requires taxpayers to report taxable gains or losses when cryptocurrency is sold, exchanged or used to acquire property, including an NFT.

Paying for a Spritehood NFT with ETH may therefore create a taxable disposal for a U.S. buyer if the Ether changed in value between acquisition and use. Any later sale of the NFT may produce another reportable gain or loss based on the difference between its cost basis and sale proceeds.

Federal securities treatment depends on the economic facts surrounding an offering rather than the NFT label alone. In 2023, the Securities and Exchange Commission charged Impact Theory over an NFT offering that raised about $30 million, while Stoner Cats 2 agreed to settle charges tied to an $8 million NFT sale.

Neither the supplied report nor the cited on-chain review said a U.S. regulator had examined Spritehood or alleged that its NFTs were securities. The report also did not identify any passive-income rights, revenue-sharing terms, or promises of returns attached to the collection.

Chicago Fed President Austan Goolsbee has identified inflation above the Federal Reserve’s 2% target as the main U.S. economic problem while officials debate whether to raise rates from 3.50%–3.75%.

Why Goolsbee sees inflation as the main challenge

Wired released Goolsbee’s interview on Aug. 11 after recording the discussion on June 22, with the Chicago Fed president arguing that fast-rising prices remain more damaging than current labor-market conditions.

“The biggest problem facing our economy right now is not the collapse of industry and the collapse of jobs; it’s that the prices have been rising too fast,” Goolsbee said. “We got an inflation problem and people hate inflation.”

While assessing employment, Goolsbee pointed to the unemployment rate, hiring and layoffs as the three main indicators shaping his view. He described the labor market as “stable, without being good,” indicating that conditions have weakened without showing the type of collapse that would make employment the central bank’s most urgent concern.

The Chicago Fed president did not provide guidance on whether he would support an increase at the Federal Open Market Committee’s Sept. 15–16 meeting. Goolsbee does not vote on monetary policy this year, although his comments add to the public debate among regional Fed presidents and members of the Board of Governors.

Inflation has remained above the central bank’s 2% goal despite periods of slower monthly price growth. The June consumer price index fell 0.4% from May, while annual inflation eased to 3.5% from 4.2%, according to the Bureau of Labor Statistics. Core CPI, which removes food and energy, was unchanged for the month and increased 2.6% from a year earlier.

Fed rate hike support has divided policymakers

At its July 28–29 meeting, the Federal Reserve maintained rates within a target range of 3.50%–3.75% by a 9–3 vote. Beth Hammack, Neel Kashkari, and Lorie Logan dissented because they preferred a 25-basis-point increase.

Minneapolis Fed President Kashkari has since argued that the central bank should begin raising rates as elevated inflation and the U.S.-Iran conflict complicate the policy outlook. The closure of the Strait of Hormuz has restricted a route that normally carries about one-fifth of global oil and gas supplies, according to Reuters.

Kashkari said uncertainty around the conflict made it difficult for the Fed to promise rate cuts or provide firm guidance. During an earlier CBS interview, he said policymakers “might have to go the other direction” if the war and resulting energy shock kept inflation elevated.

The Minneapolis Fed president also warned that there was no assurance that shipping through Hormuz would return to normal quickly. Higher oil costs can reach American households through gasoline prices, while businesses may face increased transport and production expenses.

St. Louis Fed President Alberto Musalem has also backed tighter policy, arguing that an early and gradual response would be less disruptive than waiting until inflation becomes more firmly established. San Francisco Fed President Mary Daly supported the July decision to leave rates unchanged, saying the central bank needed more evidence to determine whether the energy-driven increase would prove temporary or persistent.

Meanwhile, Goolsbee’s comments place him closer to the Fed’s inflation-focused camp without confirming how he would approach the next policy decision. His description of employment as stable separates current conditions from a severe labor downturn, even though the latest payroll figures showed a notable loss of momentum.

Weak jobs data has reduced September hike expectations

The U.S. economy lost 23,000 nonfarm payroll positions in July, while the unemployment rate remained near 4.1%, according to the Bureau of Labor Statistics. May and June payroll estimates were also reduced by a combined 103,000 jobs, while average hourly earnings increased 3.2% from a year earlier.

As crypto.news reported in its July payroll coverage, Bitcoin initially gained almost 2% and traded near $65,200 after the report reduced expectations of an immediate rate increase. Prediction-market traders raised the probability that the Fed would leave rates unchanged in September to 66%, up from about 50% one day earlier.

Expectations have continued to vary across contracts. The supplied prediction-market data placed the probability of no September change at 59%, while a separate contract gave a rate increase before the end of 2026 the same probability. Since the contracts cover different time periods, the figures do not represent conflicting outcomes for the same FOMC meeting.

Iggy Ioppe, chief investment officer at Theo, previously told crypto.news that one weak employment report would not necessarily overcome the inflation concerns created by energy prices and shipping disruptions.

“A softer jobs number does not automatically close that gap,” Ioppe said. “Risk assets, including Bitcoin, retain the medium-term support that comes from continued inaction, but the same geopolitical energy risk that is keeping the Fed cautious also continues to limit upside.”

For U.S. crypto investors, the rate decision can affect Treasury yields, the dollar and demand for assets that do not pay interest. Higher rates raise the returns available from lower-risk government debt, while tighter financial conditions can reduce the amount of capital investors allocate to Bitcoin and other cryptocurrencies.

July CPI has become the next test for Bitcoin

The Bureau of Labor Statistics is scheduled to release July CPI at 8:30 a.m. ET on Aug. 12. Economists surveyed by Reuters expect headline inflation to slow from 3.5% to 3.4% annually, with core inflation easing from 2.6% to 2.5%.

A recent CPI preview reported that expectations for a September rate increase had fallen to 44% from 67% one week earlier after the weak payroll numbers. The U.S. 10-year Treasury yield was trading near 4.66%, while Bitcoin had briefly moved above $65,000 before failing to establish the level as support.

Selling returned on Aug. 11 as crude oil rose and negotiations over Hormuz lost momentum. Bitcoin dropped about 2% to $63,780 before attempting an intraday recovery, while Ether and XRP also came under pressure. U.S. spot Bitcoin ETFs recorded $144.6 million in net withdrawals on Aug. 10, ending five consecutive sessions of inflows, according to SoSoValue data cited in Bitcoin’s latest decline.

Iranian official Mohsen Rezaei said the Strait of Hormuz would remain closed unless the United States met Tehran’s conditions, which included ending the war and unfreezing Iranian assets held abroad. His statement followed comments from Pakistan’s defense minister that Washington and Tehran were close to an arrangement despite fresh attacks on maritime traffic.

Coinbase has secured Abu Dhabi regulatory approval to arrange investment deals and provide custody as it prepares an international hub for tokenized securities and onchain capital markets.

Coinbase secures approval for tokenized securities

Coinbase said in an announcement published by Abu Dhabi Global Market that the Financial Services Regulatory Authority had granted the exchange Financial Services Permission to arrange investment deals and provide custody services.

The authorization gives Coinbase a regulated base within ADGM, Abu Dhabi’s international financial center, for issuing and servicing digital securities linked to traditional financial assets. Under the planned structure, Coinbase will register and issue the securities in ADGM under FSRA supervision.

Rather than using the emirate only for cryptocurrency trading, the company plans to make Abu Dhabi its primary international tokenization center outside the United States. Services developed there will focus on bringing securities and other capital-market products onto blockchain networks.

Each tokenized security will be backed by an underlying share, Coinbase said. Eligible verified holders will receive rights connected to the represented stock, including dividend and voting rights, subject to the terms contained in the relevant prospectus.

Under the conditions described for the product, dividend payments will be reinvested automatically. Some voting and redemption rights will also depend on whether a holder meets the applicable vesting requirements, meaning access to every shareholder function may not be immediate or available under identical terms.

The licensing announcement did not identify the first shares Coinbase will tokenize, the blockchain networks that will support them, or a date for the initial offering. It also did not specify which countries’ residents will qualify to purchase the securities.

Wallets will replace conventional brokerage accounts

Unlike a normal stock purchase, investors will not need a conventional brokerage account or a correspondent banking relationship to hold the planned securities, according to Coinbase. Eligible users will instead need a compatible blockchain wallet.

Transfers will remain subject to compliance controls despite taking place through wallets. Coinbase said every transaction will undergo continued sanctions screening, while the company will retain the ability to freeze or seize assets at the wallet level when regulations require it.

The control mechanism places restrictions directly into the tokenized-security system rather than relying only on checks at the point of purchase. Coinbase presented the model as a way to make blockchain-based assets compatible with securities regulation and decentralized finance applications.

Brett Tejpaul, co-CEO of Coinbase Institutional, said ADGM had established one of the first regulatory systems for virtual assets in 2018 and had continued developing rules for blockchain-based financial products.

“No major financial center has yet built a framework that treats tokenized equities simultaneously as securities, blockchain-native tokens, and DeFi-composable assets,” Tejpaul said.

Arvind Ramamurthy, ADGM’s chief market development officer, described the planned hub as an endorsement of Abu Dhabi’s role in blockchain-based finance. He said the financial center would continue supporting products designed to improve market access and transparency while maintaining regulatory oversight.

The planned ownership model follows Coinbase’s earlier work on 1:1-backed tokenized stocks with Base, its Ethereum layer-2 network. Crypto.news reported in July that Base founder Jesse Pollak said the companies were close to introducing equities backed by actual underlying shares.

Pollak contrasted the planned product with stock-linked derivatives that track share prices without giving customers ownership of the represented stock. At that time, neither Base nor Coinbase had disclosed the product’s custody arrangements, issuance process or supported securities.

Abu Dhabi license adds to Coinbase’s UAE operations

From Abu Dhabi, Coinbase plans to build its tokenized-securities and on-chain capital markets business, while Dubai will serve as a base for its international derivatives operations. The company described the two units as among its most ambitious businesses outside the United States.

The separate locations also place the operations under different regulatory systems. ADGM and its FSRA oversee financial services in Abu Dhabi’s financial free zone, while the Dubai Virtual Assets Regulatory Authority supervises virtual-asset businesses operating in or from Dubai, except those based in the Dubai International Financial Centre.

Coinbase’s selection of the UAE comes as other financial institutions build regulated digital-asset services in Abu Dhabi. In May, crypto.news covered BNY’s custody plans with Finstreet and ADI Foundation, beginning with Bitcoin and Ether before a proposed expansion into stablecoins and tokenized real-world assets.

BNY said that work would be based in ADGM and remain subject to final agreements and regulatory approvals. The proposed service uses Finstreet’s licensed trading, settlement, custody, and investment infrastructure alongside the ADI Chain blockchain network.

Coinbase is also expanding products for professional investors in the United Kingdom. Its recent UK derivatives rollout includes more than 170 contracts covering cryptocurrencies, equities, commodities, and foreign exchange.

Eligible UK professional clients will receive progressive access to perpetual contracts offering continuous trading and leverage of up to 50 times. Dated futures will carry leverage of up to 20 times, while the options offering will initially cover crypto assets.

U.S. rules remain central to Coinbase’s tokenization plans

For American investors, the Abu Dhabi approval does not by itself authorize Coinbase to offer the ADGM-issued securities in the United States. Any domestic product involving tokenized shares would remain subject to U.S. securities laws and SEC oversight.

In June, U.S. exemption discussions centered on a possible SEC framework that could allow companies to test blockchain-based securities under modified regulatory requirements. Lawyers and market participants cited by Reuters expected SEC Chair Paul Atkins to introduce an innovation exemption, although the regulator had not finalized the reported plan.

Coinbase had already disclosed plans for tokenized shares backed one-for-one by underlying securities as those discussions continued. CoinGecko data cited in the June report showed the number of listed tokenized stocks rising from 14 in January 2024 to 478 by May 2026, an increase of more than 3,300%.

Competition has since reached the U.S. market. Dinari introduced tokenized versions of all S&P 500 stocks for eligible American investors in August, using self-custody wallets funded with USDC. The company said each token is backed by an underlying security held with a regulated custodian and includes voting, dividend, and redemption rights.

Outside tokenization, Coinbase began giving eligible UK customers access to U.S. equities on Aug. 6. The phased service covers nearly 4,000 stocks, supports purchases funded with pounds or USDC, and allows fractional investments from £1, while Apex executes and clears the orders and holds the shares in the United States.

“New York intends to make event contract derivatives waste away under its iron curtain of state gaming laws before the courts get the chance to issue final rulings,” he said. “These are financial exchanges that offer financial instruments and operate across state lines. They match the bid from a resident of one state with the offer of a resident from another state and submit the trade to a clearinghouse that backstops the transactions of customers throughout the country. New York has no business regulating these interstate financial markets.”

The CFTC had previously sued New York over its stance on prediction markets.

New York sued Kalshi on July 31 after a federal judge ruled against Kalshi’s bid to block the state from filing a lawsuit. New York alleged that Kalshi was violating its state gambling laws by offering sports prediction markets.

“Kalshi has failed to obtain a license from the New York State Gaming Commission (Gaming Commission), sidestepping its obligation to pay taxes like licensed casinos and mobile sports gambling platforms do,” a press release from the state said. “This tax revenue from gambling regulation funds public schools, sports programs for underserved youth, and problem gambling education and treatment.”

Kalshi moved to transfer the case to federal court; New York moved to transfer the case back. The motions are currently awaiting a judge’s ruling.