Crypto World
Chat-Based P2P Crypto Exchange Development: Build an In-Chat Exchange
Over the past few years, a significant yet unnoticed shift has been occurring in peer-to-peer cryptocurrency trading, where discovery, negotiation, escrow, and settlement are leaving traditional exchange interfaces and entering messaging environments. Large volumes of OTC crypto trades today originate in Telegram groups, WhatsApp communities, and private chat networks where buyers and sellers coordinate directly and finalize payments off-platform. The crypto exchange software interface, in many instances, has effectively been replaced by conversation, mainly in mobile-first markets where users trust messaging applications more than financial dashboards. They negotiate prices in chat, confirm payment with screenshots, and rely on social reputation rather than order-book transparency. As a result, P2P crypto trading has naturally converged toward chat-centric workflows where everything happens on a conversational thread.
Recognizing the pattern, several platforms have begun formalizing chat-based crypto exchange software models rather than forcing users back into conventional UIs.
| Platform | Interface Type | Best Jurisdiction | Key Tech Feature |
|---|---|---|---|
| Vexl | Standalone App | Europe / Global | Social graph (Nostr-based) |
| Telegram @wallet | Native Bot | UAE / CIS / SE Asia | Direct Telegram integration |
| Noones | Chat-centric Web/App | Nigeria / Global South | 300+ payment methods |
| Peach Bitcoin | Swipe/Chat Hybrid | Europe / LatAm | No-KYC / privacy-first |
Users prefer to discuss terms, verify counterparties, and coordinate payment within chat before committing funds. Instead of separating messaging and trading into different systems, chat-based P2P crypto exchange software embeds escrow, wallets, and payment confirmation directly into conversational flows.
For enterprises and crypto exchanges targeting high-growth regions such as South Asia, Africa, and Latin America, this model aligns closely with real user behavior. It reduces friction, supports diverse local payment rails, and mirrors how informal crypto trading already occurs at scale.
What Is Chat-Based P2P Crypto Exchange Development?
Chat-based P2P crypto exchange development refers to designing peer-to-peer trading systems where the conversational triggers drive and control trade objects linked to escrow, wallet, and settlement infrastructure.
Instead of listing offers and executing trades through marketplace-style trade forms, users initiate, confirm payment, and release escrow within an integrated chat environment linked to wallet and settlement infrastructure. In this model, messaging doesn’t remain an auxiliary feature but is the transaction layer itself. Each trade exists as a persistent conversation thread that contains counterparties, agreed terms, payment proof, and escrow state. The exchange backend orchestrates wallets, escrow locking, and dispute resolution while the user experience remains interaction-first and chat-native only.
Core Features of Chat-Based P2P Crypto Exchanges
1. Conversation-linked trade threads
Each trade must be anchored to a chat thread and stored as a persistent object containing counterparties, agreed terms, timestamps, and state transitions. This implementation ensures the inseparability of negotiation context and execution data.
2. Integrated crypto escrow within chat
Escrow lock, confirmation, timeout, and release actions must be triggered directly from the conversation interface while being enforced by smart contracts or custodial wallet logic in the backend.
3. Payment rail negotiation and mapping
This chat-based crypto exchange software module must support dynamic selection of regional payment methods (UPI, Pix, mobile money, bank transfer) within the chat. It must also bind the chosen rail to the trade state for verification and audit.
4. Embedded payment proof with hash linkage
Payment receipts, transaction IDs, or media confirmations shared in chat must be cryptographically or database-linked to the escrowed trade record to prevent substitution or post-dispute alteration.
5. Counterparty identity and reputation context
User profiles must expose trade history, completion ratios, dispute records, and social linkage signals during negotiation to enable well-informed decisions before escrow commitment.
6. Conversation-native dispute invocation
Either party should be able to escalate directly from the trade thread, allowing moderators or automated systems to evaluate the full sequence of messages, payment evidence, and escrow events without reconstruction.
7. Mobile-native messaging UX
The conversational crypto exchange software interface must prioritize lightweight message exchange, quick action buttons, and asynchronous confirmations to maintain usability on low-bandwidth devices and emerging-market mobile environments.
Technical Architecture of a Chat-Based P2P Exchange Development
In a chat-based crypto exchange architecture, conversational events trigger and update backend trade states while settlement infrastructure manages escrow, wallets, and dispute workflows.
- Chat Interface Layer: It represents the messaging UI (app, web, or bot) where users negotiate, confirm payment, and trigger escrow actions.
- Trade State Engine: The system converts conversation events into structured trade states (initiated, terms agreed, escrow locked, payment pending, released, disputed).
- Escrow and Wallet Layer: This layer includes smart contracts or custodial wallets that lock, hold, and release crypto assets based on trade state transitions.
- Payment Coordination Layer: This level manages the selection of fiat payment methods, proof attachment, and confirmation signals associated with the trade thread.
- Identity and Reputation Services: Persistent counterparty profiles, trade history, and trust signals are accessible within conversations.
- Dispute and Arbitration Module: These moderation tools consistently access full chat, payment, and escrow context for resolution.
- Notification and Event System: This layer facilitates real-time updates for escrow status, payment confirmation, counterparty actions, and deadlines.
Where to Launch Chat-Based P2P Crypto Exchange Software
.
| Jurisdiction | Dominant Payment Integration | Why It’s Relevant for Chat-P2P | Regulatory Body | Licensing Difficulty |
|---|---|---|---|---|
| India | UPI / IMPS | The world’s largest informal WhatsApp/Telegram P2P market. Users expect “Chat-to-Pay” workflows. | FIU (Financial Intelligence Unit) | High (Strict AML/Tax) |
| Brazil | Pix / WhatsApp Pay | Brazil is the global “alpha” for WhatsApp Pay. Pix makes instant chat-settlement frictionless. | Central Bank of Brazil | Moderate |
| Nigeria | Mobile Money / OPay | High mobile-first population. Messenger apps bypass the need for expensive web infrastructure. | SEC Nigeria | Moderate-High |
| El Salvador | Lightning Network | Ideal for “micro-chats” where users send small amounts of BTC/Satoshis over a chat bubble. | CNAD (Digital Assets) | Low |
| UAE (Dubai) | Wio / Local Banks | Focuses on “Social Wealth”—chatting about trades and executing them in a “Superapp” environment. | VARA | High (Costly) |
| European Union | SEPA Instant | Relevant for “Social Investing” apps (Gen Z). Must be MiCA-compliant to operate cross-border. | MiCA (ESMA) | Very High |
Deployment Models for Chat-Based P2P Exchange Development
In-chat or chat-based crypto exchanges can be deployed through different messaging ownership models depending on regulatory exposure, user acquisition strategy, and infrastructure control. The choice of deployment model directly impacts custody design, compliance scope, scalability, and user trust assumptions.
1. Standalone Chat-Native P2P Exchange Development
In custom chat-based P2P crypto exchange development, enterprises create a proprietary application where the messaging system, trading logic, escrow, and wallets are fully owned and operated by the exchange.
Characteristics
- Custom-built chat protocol and trade-state engine
- Direct integration with custodial or smart-contract escrow
- Native wallet and payment rail orchestration
- Platform-controlled identity and reputation graph
When is this P2P exchange development model suitable?
- Regulated or semi-regulated jurisdictions
- For exchanges seeking full custody and compliance control
- Multi-asset or multi-chain expansion plans
- Institutional or high-volume P2P environments
Advantages of Chat-Native P2P Crypto Exchange Development
- Complete control over trade lifecycle and escrow logic
- Independent compliance and KYC framework
- No dependency on external messaging policies
- Stronger monetization and data ownership
Constraints
- Higher development and infrastructure costs are associated with building a complete chat-based P2P exchange app from the ground up.
- Messaging UX must compete with existing apps. This adds an extensive amount of effort to crypto exchange development, while they just reinvent the wheel.
- The chat-driven crypto exchange is required to find its own buyers and sellers, create initial liquidity, build network effects, and grow communities independently. No built-in audience for them
2. Messaging-Platform Integrated P2P Crypto Exchange Software(Telegram / Superapp Bots)
This is one of the most popular ways in which chat-based crypto exchanges are implemented. The exchange backend operates independently while the user interface is delivered through an existing messaging platform such as Telegram or a regional superapp.
Kraken recently picked up on this strategy and announced its collaboration with ICE chat:
“This integration opens a direct line into core institutional workflows, enabling traders to engage with our OTC desk’s expertise and execution in the digital asset class through a familiar interface.”
“Head of Kraken Institutional Gurpreet Oberoi
Characteristics
- A bot or mini-app acts as a conversational interface.
- The external platform handles messaging transport.
- Escrow and wallets are managed off-platform.
- Identity is partially inherited from a messaging account.
When is this chat-based cryptocurrency exchange development model suitable?
- High chat-native user populations
- OTC-heavy or informal trading regions
- Rapid go-to-market requirements
- Community-driven P2P ecosystems
Advantages
- Offers immediate access to existing user networks
- Familiar UX reduces onboarding friction.
- Viral distribution happens through chats and groups.
- Lower frontend development overhead
Constraints
- Dependency on platform APIs and policies
- Limited control over the identity layer
- Compliance boundaries are tied to platform rules.
- Messaging provider risk (blocking, restrictions)
3. Hybrid Chat-Linked P2P Crypto Exchange Software Development
In this model, conversation occurs in external messaging environments, while escrow, wallets, and trade state are managed in a separate exchange system linked through deep links or session binding.
Characteristics
- Negotiation in external chat (Telegram, WhatsApp, etc.)
- Trade instantiated via link or session handoff
- Escrow and settlement executed in the backend
- Conversation reference stored with the trade record
When is this chat-based P2P crypto exchange development model successful?
- Markets where OTC negotiation already occurs off-platform
- Exchanges transitioning from marketplace P2P to chat-based
- Compliance-sensitive jurisdictions
- Cross-platform user bases
Advantages
- Preserves existing user chat behavior
- Lower messaging infrastructure burden
- Clear separation between communication and custody
- Easier regulatory positioning
Constraints
- Context fragmentation risk
- This model requires reliable chat-to-trade linking.
- Less immersive conversational UX
- Dispute’s evidence may be split across chat and cryptocurrency exchange software systems.
Revenue Models and Build Cost for Chat-Based P2P Crypto Exchange Development
| Revenue Model | How It Works in Chat-P2P Context | Who Pays | Implementation Notes |
|---|---|---|---|
| Escrow transaction fee | A small percentage is charged when crypto is released from escrow after a successful trade | Typically buyer or both parties | Deducted automatically from escrowed asset at release |
| Offer a visibility boost | Sellers pay to prioritize their trade offers or profiles in discovery chats or listings | Sellers/merchants | Ranking algorithm or sponsored placement flag |
| Merchant / pro trader accounts | High-volume traders pay a subscription or reduced-fee tier for higher limits and tools | Professional traders | Tiered fee engine and volume tracking required |
| Payment rail markup | Spread added when facilitating specific fiat rails (e.g., local transfer aggregation) | Buyer or seller | Requires payment processor or liquidity partner integration |
| Spread facilitation | Chat-based P2P crypto exchange software platform intermediates pricing between counterparties and retains the spread | Both parties indirectly | Needs an internal pricing engine or liquidity sourcing |
| Dispute resolution fee | Charged when arbitration is invoked, and the platform mediates settlement | Disputing party or loser | Triggered on dispute workflow initiation |
| Withdrawal/custody fee | Fee for moving crypto out of platform wallets post-trade | User withdrawing | Standard wallet fee policy |
| Liquidity seeding incentives | P2P crypto exchange software platform shares fees with early merchants, providing consistent liquidity | Platform revenue share | Smart contract or backend rebate accounting |
| FX/stablecoin conversion margin | Margin on crypto-to-crypto or fiat-equivalent conversions inside chat trade | Converting user | Requires internal swap or routing logic |
Typical chat-based P2P crypto exchange development cost: Chat-based P2P crypto exchange software development generally ranges from $50K-$250K+, depending on custody model, messaging ownership, payment rail integrations, and compliance scope.
Estimated build timelines: 8-24 weeks, depending on messaging model (standalone or Telegram-integrated), custody design, and payment rail integrations.
Security and Compliance Considerations For Chat-Based P2P Crypto Exchange Development
Chat-native P2P trading introduces distinct fraud, identity, and payment risks because negotiation, trust formation, and settlement coordination occur conversationally. In-chat exchanges must implement controls that bind chat activity to verifiable trade and payment states while meeting jurisdictional AML and custody obligations.
Key Security Risks In Chat-Based P2P Crypto Exchange Software Include
- Impersonation and account takeover: Attackers mimic known traders or compromise messaging identities to redirect payments or escrow release.
- Off-rail payment fraud: Counterparties claim payment via manipulated receipts, reversible transfers, or third-party senders.
- Escrow manipulation attempts: Social engineering can trigger premature release or cancellation outside a valid trade state.
- Reputation gaming: Collusive trades or low-value cycles may be maintained to inflate trust metrics before large fraud attempts.
- Conversation tampering or deletion: Fraudsters may attempt to alter or remove chat evidence prior to dispute review.
Enable Crypto Trading Inside Conversations With Chat-Based P2P Exchange Development
Required Platform Controls To Mitigate Chat-Based Crypto Exchange Development Risks
- Trade-bound identity verification: A cryptocurrency exchange development company must create a workflow that binds each trade to authenticated user sessions and device fingerprints before escrow actions.
- Payment proof validation workflows: The chat-based P2P cryptocurrency exchange software must require structured receipt capture (ID, amount, timestamp) and cross-check against the expected rail format.
- Escrow action gating: The in-chat cryptocurrency exchange development must also allow release/cancel only from valid state transitions with counterparty confirmation or timeout logic.
- Immutable conversation logging: The cryptocurrency exchange must store message hashes or append-only records linked to trade objects to preserve evidence integrity.
- Reputation anomaly detection: AI-powered security can typically be implemented during crypto exchange development to flag abnormal trade patterns, circular trading, or sudden volume spikes in trust scoring.
Compliance and Regulatory Considerations For Chat-Based P2P Crypto Exchange Development
- AML/KYC scope alignment: The jurisdiction determines whether both parties, merchants, or only custodial wallet holders require KYC. Those building chat-based P2P crypto exchange software can implement a flexible KYC/AML module along with a geofencing mechanism.
- Custody classification: The licensing and safeguarding obligations depend on whether you’re choosing a smart-contract escrow or a custodial wallet.
- Payment rail monitoring: Regional rails (UPI, Pix, mobile money) may require transaction reporting or merchant registration as required by the local laws.
- Dispute and record retention: Chat-based P2P crypto exchange software requires integrations to store chat, payment, and escrow logs for mandated periods to satisfy audit or regulatory requests.
- Sanctions and counterparty screening: A centralized P2P crypto exchange software must screen wallet addresses and user identities before enabling escrow participation.
Final Word
P2P crypto exchange software development has been increasingly shaped by conversational behavior rather than marketplace navigation. As OTC activity continues to originate in messaging environments, exchanges that bring escrow, wallet, and payment directly into chat workflows will align more closely with how users already trade in mobile-first regions.
For builders and emerging exchanges, chat-based P2P crypto exchange development architecture is the most pressing structural shift. They can collaborate with their P2P cryptocurrency exchange development company to build such innovative models after carefully evaluating messaging ownership, custody model, and jurisdictional exposure for deployment choices, monetization design, and compliance scope
Platforms that successfully unify conversational interaction with verifiable escrow execution and regulatory controls can reduce friction while maintaining auditability and dispute integrity. This combination is what enables chat-native crypto exchange software to scale beyond informal OTC channels into structured, compliant trading infrastructure.
Antier delivers chat-based P2P crypto exchange software development tailored to regional payments and compliance needs. Share your requirements today!
Frequently Asked Questions
01. What is chat-based P2P crypto exchange development?
Chat-based P2P crypto exchange development involves creating trading systems where conversations drive and manage trade processes, integrating escrow, wallets, and settlement directly into chat interactions.
02. Why are users shifting to chat-based platforms for cryptocurrency trading?
Users prefer chat-based platforms because they allow for direct negotiation, payment verification, and coordination within messaging apps, which aligns with their trust in these environments over traditional exchange interfaces.
03. What are some key features of chat-centric P2P crypto exchange platforms?
Key features include integration with messaging apps, support for diverse payment methods, and the ability to conduct trades without separating messaging from trading, enhancing user experience and reducing friction.
The AI and data center boom partly driven by Bitcoin miners is increasingly being financed through high-yield bond issuance, underscoring how lenders are pricing both risk and opportunity in the sector.
According to TheEnergyMag’s latest newsletter, companies tied to AI data center development have raised about $33 billion in long-term senior notes over the past 12 months, excluding convertible debt — bonds that can later be converted into equity and typically carry different risk dynamics.
The interest rate spread is notable: While regulated utilities and traditional energy companies generally borrow at 4% to 5%, AI- and crypto-linked issuers pay closer to 7% to 9%.
The average coupon on newly issued US dollar high-yield debt has was close to 7.2% in late 2025, from 8% to 9% in 2023, according to Janus Henderson Investors, citing BofA Global Research, average coupon, as of Nov. 30.
Those at the higher end of the spectrum are largely current or former digital asset mining companies that have pivoted into AI infrastructure, suggesting capital remains comparatively expensive for the group.
TheEnergyMag cited recent raises, including CoreWeave at 9.25% and 9% in May and July 2025, Applied Digital at 9.2% in November, TeraWulf at 7.75% and Cipher Mining at 7.125% and 6.125%.
“The message from lenders is clear,” TheEnergyMag wrote. “Regulated load and contracted generation still get treated as infrastructure. AI and bitcoin, even when attached to long-term offtake agreements, are still treated as growth credit.”
Related: Canaan buys 49% stake in three Texas mining sites for $40M
AI infrastructure boom intensifies
Despite concerns about overspending and potential overcapacity, the AI data center build-out remains one of the most visible trends in the economy, and a major driver of demand on Wall Street.
The scale of that momentum was underscored on Wednesday when chipmaker Nvidia posted blockbuster fourth-quarter results, with profit rising 94% and revenue climbing 73% year-on- year. The chipmaker reported $43 billion in net income and $68.1 billion in revenue.
Meanwhile, Bitcoin mining companies are planning about 30 gigawatts of new power capacity aimed at AI workloads, nearly triple the capacity they currently operate. Much of it remains in development pipelines or early-stage planning, but the industry has made clear that AI infrastructure is a strategic priority.
Related: The real ‘supercycle’ isn’t crypto, it’s AI infrastructure: Analyst
Crypto World
Ethereum’s Fast L1 Vision: Vitalik Buterin Unveils Strawmap Plan for Slots and Finality
TLDR:
-
- Vitalik proposes cutting Ethereum’s slot time from 12 seconds to 2 seconds using a sqrt(2) formula.
- Erasure coding upgrades to Ethereum’s p2p layer will reduce block propagation time across the network.
- The Minimmit finality algorithm targets a reduction from 16 minutes today down to just 8 seconds.
- Ethereum’s quantum-resistant upgrades will roll out in phases, with slot protection arriving first.
- Vitalik proposes cutting Ethereum’s slot time from 12 seconds to 2 seconds using a sqrt(2) formula.
Ethereum’s Fast L1 goal took center stage as Vitalik Buterin published a detailed strawman roadmap outlining how the network plans to evolve its base layer.
The document covers slot time reductions, peer-to-peer network upgrades, and a new finality algorithm. Buterin walks through each goal methodically, explaining how the changes interconnect.
The roadmap presents a phased, component-by-component transformation of Ethereum’s consensus layer toward a faster, simpler, and quantum-resistant design.
Slot Time and Network Architecture at the Core of Fast L1
Ethereum’s Fast L1 goal begins with a structured reduction of slot time across multiple incremental steps. Buterin proposes moving from the current 12 seconds down through 8, 6, 4, 3, and eventually 2 seconds per slot.
Each reduction follows a “sqrt(2) at a time” formula, with steps only taken when safety is confirmed.
Supporting shorter slots requires major improvements at the network layer. Buterin points to ongoing work by @raulvk on an optimized peer-to-peer design using erasure coding.
The new architecture splits each block into pieces so that any subset of them is enough to reconstruct the full block.
In his post, Buterin explained: “split each block into 8 pieces so that with any 4 of them you can reconstruct the full block.” This design cuts 95th percentile block propagation time and makes shorter slots viable without security tradeoffs.
That said, adding protocols like ePBS and FOCIL to the slot structure tightens timing constraints. These changes shrink the safe latency window from one-third of a slot to one-fifth.
To offset this, researchers are exploring a model where only 256 to 1,024 randomly selected attesters sign per slot, eliminating the aggregation phase and shortening slot duration further.
Finality Overhaul and the Shift to Quantum-Resistant Consensus
Beyond slot time, the strawman roadmap targets a complete rework of how Ethereum achieves finality. Today, finality takes roughly 16 minutes on average, calculated across 12-second slots, 32-slot epochs, and 2.5 epochs. Buterin wants to decouple finality from slot time entirely so each can be optimized on its own path.
The target is a one-round-finality algorithm called Minimmit, a variant of the established BFT consensus design. A projected trajectory moves from 16 minutes today through several intermediate stages, eventually reaching as low as 8 seconds with aggressive Minimmit parameters.
These changes will also carry a transition to post-quantum cryptography, including hash-based signatures and a STARK-friendly hash function.
Three hash function options are under active research: adjusting Poseidon2’s round count, returning to Poseidon1, or adopting BLAKE3 as a conventional alternative.
Buterin described the overall transformation as a “ship of Theseus” style process, replacing each part of Ethereum’s consensus layer one at a time.
Notably, the phased approach means slot-level quantum resistance could arrive well ahead of finality-level protection, providing an early security layer if quantum computing advances faster than anticipated.
A Florida man accused of running what is arguably the largest crypto-linked Ponzi scheme involving $328 million has been arrested, federal prosecutors said Wednesday.
Christopher Alexander Delgado, 34, of Apopka, Florida, was taken into custody on a criminal complaint charging him with wire fraud and money laundering, according to the U.S. Attorney’s Office for the Middle District of Florida. If convicted on all counts, he faces up to 30 years in federal prison. A criminal complaint contains allegations, and Delgado is presumed innocent unless and until proven guilty.
According to a TRM Labs global report, pyramid and Ponzi schemes received approximately $6.1 billion in victim funds globally in 2025, a 49% increase from the previous year. The most recent case prior to Goliath Ventures involves Ramil Ventura Palafox, the CEO of Praetorian Group International (PGI), who was sentenced to 20 years for misleading more than 90,000 investors and draining over $62.7 million in funds.
Prosecutors allege Delgado served as president and CEO of Goliath Ventures, formerly known as Gen-Z Venture Firm, from January 2023 through January 2026. During that period, authorities claim he raised at least $328 million from investors by promising monthly returns generated through cryptocurrency “liquidity pools,” sometimes described as “guaranteed” or “low risk,” with contracts promising monthly returns of roughly 3% to 8%.
Instead of investing the funds as represented, Delgado allegedly operated Goliath as a Ponzi scheme, using money from new investors to pay purported returns to earlier backers and to meet withdrawal requests.
The complaint alleges that the firm’s claims about deploying capital into crypto liquidity pools were false. According to court filings, investigators said blockchain analysis showed only about $1.5 million was sent to Uniswap, while the “vast majority” of investor funds were not placed into liquidity pools.
To build credibility and attract victims, prosecutors say Delgado relied on personal referrals, polished marketing materials, luxury events, charitable sponsorships and periodic payments marketed as returns. The court documents also revealed investors were shown account updates via an online portal that displayed consistent gains, but the reported “returns” were allegedly fabricated and adjusted to match promised rates.
The case is being investigated by IRS Criminal Investigation and Homeland Security Investigations and is being prosecuted by the U.S. Attorney’s Office in Orlando. Law enforcement officials are asking potential victims to come forward as the investigation continues.
Ethereum co-founder Vitalik Buterin outlined a roadmap on Thursday to protect the blockchain from the long-term risks posed by quantum computers — a move that comes shortly after the Ethereum Foundation established a dedicated post-quantum research team to study the issue.
Although practical quantum computers capable of breaking modern cryptography do not yet exist, they could one day crack the digital signatures and cryptographic systems that secure Ethereum.
In a post on X, Buterin identified four key areas of vulnerability: validator signatures used in consensus, Ethereum’s data availability system, everyday wallet signatures, and certain zero-knowledge proofs used by applications and layer-2 networks.
A big part of the plan involves changing how Ethereum’s validators sign and confirm blocks. Right now, they use a type of digital signature called BLS. In a world with powerful quantum computers, those signatures could eventually be broken. Buterin suggests switching to “hash-based” signatures, which are considered much safer against quantum attacks.
Another area that would need updating is how Ethereum checks and stores large batches of transaction data. The system it uses today relies on a cryptographic tool called KZG commitments. Replacing that with a quantum-safe alternative is possible, Buterin said, but it would require significant behind-the-scenes engineering work and could make some parts of the system more complicated.
For everyday users, the proposed fix revolves around a planned upgrade called EIP-8141. In simple terms, this upgrade would make Ethereum wallets more flexible. Today, most wallets rely on one standard type of digital signature to approve transactions. EIP-8141 would allow accounts to switch to different types of signatures in the future — including ones designed to be safe against quantum computers.
There’s a similar issue with zero-knowledge proofs, a type of advanced cryptography used by privacy tools and many layer-2 scaling networks. Quantum-safe versions of these proofs are currently far more expensive to verify on Ethereum.
Buterin pointed to a longer-term solution built into EIP-8141 known as “validation frames.” These would allow the network to bundle together many signatures and proofs and replace them with a single combined proof. Instead of checking each one individually on the blockchain, Ethereum would only need to verify one compressed proof, helping keep costs down.
Read more: Quantum threat gets real: Ethereum Foundation prioritizes security with leanVM and PQ signatures
“The growth in Cardano’s technology has been amazing, and the best is yet to come,” one X user stroke back.
Cardano’s native token reached an all-time high of almost $3.10 in late 2021. Despite sporadic runs in the following years, it has not managed to break its record and is currently worth around $0.29, representing a staggering 90% decline from the historic peak.
The steep decline has left many investors frustrated, including popular content creator Jake Gagain, who described ADA as one of his worst investments since entering the crypto market.
Wasting “Such a Great Opportunity?’
Besides expressing regret over his investment, Gagain emphasized that Cardano still has a strong community and huge potential. He said he was disappointed to see the team waste “such a great opportunity” and asked his followers whether they still hold ADA.
His post on X sparked a heated debate, with many users sharing their experiences with the token. One person agreed with Gagain, arguing that Cardano’s community is among the most dedicated, “but the execution and speed have just been painful to watch for years now.”
The discontent was echoed by numerous others, some of whom pledged to step away from ADA and all altcoins for good and to shift their capital solely to Bitcoin (BTC) from now on.
Others differentiated from this thesis. X user Michael Lesser claimed that Gagain doesn’t understand the definition of a bear market, adding that his timing is bad.
“If you have an investment thesis and patience, ‘paper losses’ are just that. The growth in Cardano’s technology has been amazing, and the best is yet to come,” he said.
Many investors who remain optimistic said they would keep accumulating ADA, convinced that the token will set a new all-time high sooner or later. Some even flashed the “diamond hands” emoji to signal their determination not to sell under any circumstances.
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Meanwhile, certain X users attacked Gagain for promoting meme coins, which performed much worse than ADA. In the summer of 2024, for instance, he claimed that NEIRO could be the next “billion-plus dollar project” on the Ethereum blockchain. It is important to note that the asset’s market cap briefly surged above $1 billion in late 2024, but since then, it has been in a sharp decline, and its current capitalization stands at less than $30 million.
What’s Next for ADA?
Cardano’s native token has been among the biggest beneficiaries of the recent market resurgence, with its price rallying by 9% on a weekly scale. The recent whale activity suggests a further jump might be on the way.
As CryptoPotato reported, large investors have scooped up almost 820 million coins over the past six months, thus increasing their total holdings to 25.36 billion tokens, or nearly 70% of ADA’s circulating supply.
Big purchases of this type leave fewer tokens on the open market, which could result in a surging price (should demand remain constant or rise). Whales’ buying also sends a strong signal that they believe in the asset’s long-term future, and that confidence could draw smaller players into the ecosystem.
Some analysts observed ADA’s recent comeback and envisioned further gains if key levels are reclaimed. X user Nehal argued that breaking and holding above $0.30 could lead to a pump to $0.32 and $0.34.
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US-based asset manager REX Shares has launched an exchange-traded fund that bundles leveraged covered-call strategies tied to nine individual stocks, including crypto-linked names Coinbase and Strategy, into a single income-focused product trading under the ticker GIF.
According to Thursday’s announcement, the fund holds equal-weighted positions in REX’s existing single-stock Growth & Income ETFs, each of which targets about 1.25x exposure to its underlying equity while writing covered calls on a portion of the portfolio to generate option premium income.
GIF trades on Cboe Global Markets and each underlying ETF seeks to distribute income on a weekly basis, with payouts largely derived from covered call premiums.
Covered call premiums are the upfront payments a fund collects for selling options on stocks it already owns, generating income in exchange for capping some of the shares’ upside potential.
REX Shares said the ETF holds equal-weighted exposure to nine REX funds tied to Nvidia (NVII), Tesla (TSII), Strategy (MSII), Coinbase (COII), Robinhood (HOII), Palantir (PLTI), CoreWeave (CWII), Eli Lilly (LLII) and Walmart (WMTI), spanning crypto-linked equities, technology, AI, healthcare and retail sectors.
Related: Michael Saylor says quantum threat to Bitcoin is more than 10 years away
21Shares lists STRC ETP as companies add Strategy preferred shares to treasuries
The launch comes amid a week of new allocations tied to Strategy-linked securities.
On Wednesday, 21Shares introduced an exchange-traded product (ETP) giving European investors exposure to STRC, Strategy’s variable-rate perpetual preferred stock. The 21Shares Strategy Yield ETP began trading on Euronext Amsterdam under the ticker STRC NA on Thursday.
Also on Wednesday, Strategy said Prevalon Energy, an energy infrastructure company, and Anchorage Digital, a crypto-focused digital asset bank, had allocated portions of their corporate treasuries to STRC, though they did not disclose the size of their positions.
Strategy describes STRC as a digital credit instrument with an 11.25% annual dividend, part of its broader effort to issue fixed-income securities tied to its Bitcoin (BTC) holdings.
Since adopting its Bitcoin treasury strategy in August 2020, Strategy has become the largest corporate holder of Bitcoin, reporting 717,722 BTC, or about 3.4% of the fixed 21 million supply.
Despite demand for Strategy-linked securities, the company’s shares have fallen alongside Bitcoin’s price. The stock is down more than 60% over the past six months and about 50% over the past year, according to Yahoo Finance data.
Strategy has also emerged as the most heavily shorted large-cap US stock on Goldman Sachs’ latest ranking, based on short interest relative to market value.
Magazine: Bitcoin’s ‘biggest bull catalyst’ would be Saylor’s liquidation: Santiment founder
Crypto investigator ZachXBT detailed the results of a recent investigation today that show how a group of Axiom employees allegedly abused weak internal controls to spy on sensitive user data and carry out insider trading using wallet activity.
The previously teased exposé shows a group of Axiom employees and moderators discussing how they used the company’s dashboard to pull up “anything” on its users.
They apparently mapped out key opinion leaders (KOLs) within the crypto industry and targeted wallet details made available by one of the company’s senior business development professionals, Broox Bauer.
The group was recorded strategizing on how to insider trade and showed Bauer describing the ways he can pull up Axiom user data by tracking a user’s reference code, wallet, or user ID.
Bauer lays out ground rules to his group during the call, telling them not to send any Discord messages alluding to what they’re doing, and promising that if they send him specific identifying information, he’ll then get them “what they need.”
Read more: Here’s how insiders dump blockchain game tokens using Sybil attacks
Bauer also details how he’s slowly increased the number of wallets he’s probing from an initial 10 to 20 “so it does not look that suspicious.” He also promises one of his members a profit of $200,000 thanks to his access to Axiom’s data.
ZachXBT’s findings also revealed how the group targeted “a trader with a poor reputation for using his followers on X and Telegram as exit liquidity.”
Indeed, one member in the call says, “Time to farm the farmers.”
Axiom shocked by ZachXBT’s findings
In response to ZachXBT’s investigation, Axiom said it’s “shocked and disappointed to hear that someone on our team abused internal customer support tools to look up user wallets.”
“We have removed access to these tools and will continue to investigate and hold the offending parties responsible,” the crypto exchange said, adding, “This does not represent us as a team, we have always tried to put the user first. We’ll share updates on our twitter as we learn more.”
ZachXBT hinted that the insider trading evidence might be fit for a legal case against the alleged group in the Southern District of New York.
He said, “Whether or not criminal charges are filed, I hope the Axiom co-founders further investigate the abuse and consider taking legal action against the employees involved.”
ZachXBT’s Axiom teaser caused $38 million hype train
On February 23, ZachXBT announced that he’d undertaken a “major investigation” into one of “crypto’s most profitable businesses where multiple employees abused internal data to insider trade over a prolonged period of time.”
This teaser said all would be revealed today, sending Crypto Twitter into speculation overdrive as users tried to guess which firm he was talking about. The post alone has over 11 million views.
It soon caught Polymarket’s attention, and it launched a prediction market based on which firm would be outed.
This market attracted $38 million in trading volume, with Polymarket also taking bets on which day the investigation would be released and at what specific time.
Read more: Israeli soldier allegedly used military secrets to gamble on Polymarket
Ironically, some in crypto warned users to avoid this particular market, as the potential for somebody related to the investigation to use insider information to trade on the market is high.
ZachXBT also noted that after the teaser was dropped, “prediction market bros started raiding my DMs for insider info.” He also suggested that the number of interviewees means a “leak is probably inevitable.”
One Axiom employee was left red-faced when they confidently denounced Axiom’s potential to be in ZachXBT’s exposé. They have since apologised for their wayward takes.
“Devin” has also subsequently claimed that they’d been trading in this prediction market about the firm where they work and lost $20,000 as a result.
The potential for insider trading is a frequent criticism of prediction markets. Indeed, Polymarket rival Kalshi fined Mr. Beast’s editor, Artem Kaptur, for insider trading ahead of various markets related to his YouTube channel.
Kalshi also fined the former California Governor Kyle Langford for using non-public information to insider trade in his own elections.
An investigation was also opened by Israel against two military personnel who were accused of using military secrets to insider trade markets involving missile strikes against Iran.
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Circle (CRCL), issuer of the USDC stablecoin, continues to surge, now 45% higher in less than two sessions following its Wednesday fourth quarter earnings report.
The move snapped what had been a brutal 80% drawdown from record highs hit last year.
While the company delivered strong growth in USDC supply, the stock’s outsized reaction was driven more by crowded short bets heading into the print than by strong financials, analysts suggested.
“The magnitude of the move was not driven purely by the headline numbers. The real catalyst was positioning,” said Markus Thielen, founder of 10x Research.
Hedge funds had built sizable bearish exposure into the report, according to his data. That setup pointed to a “high-probability short squeeze rather than a fundamental re-rating,” Thielen added.
He estimated that hedge funds had lost roughly $500 million in a single day on shorts as shares squeezed higher.
Tough business
While Circle’s report produced positive headline numbers, digging deeper into the data shows that the profitability of the business slipped despite growing stablecoin demand.
On the fundamentals, Circle’s flagship USDC stablecoin grew to $75.3 billion in circulation, up 72% year over year and outpacing rival Tether’s USDT growth, Harvey Li, founder of Tokenization Insight, noted in a report.
Revenue from reserve income — primarily U.S. government debt backing USDC — rose 58% to $2.64 billion as benchmark interest rates compressed over the past year. But distribution costs climbed even faster, up 66% to $1.66 billion, underscoring the expense of incentivizing partners and platforms to expand adoption.
Despite surging circulation, Circle swung from a $156 million net profit in 2024 to a $70 million loss, Li pointed out.
“Stablecoin may be scaling; stablecoin issuance is a tough business,” Li said.
Beating expectations
Still, Circle topped analyst forecasts.
Japanese investment bank Mizuho raised its price target on Circle to $90 from $77 after the stronger-than-expected fourth quarter, citing a boost from prediction markets and growing optimism around “agentic commerce,” in which autonomous AI agents transact using Circle’s USDC stablecoin.
The firm reiterated its neutral rating on the stock, warning that lower interest rates could still weigh on reserve income.
Analysts Dan Dolev and Alexander Jenkins said Circle’s results topped expectations on both revenue and profit, easing investor concerns after a period of pessimism. Management highlighted prediction and betting platforms, particularly Polymarket, as meaningful drivers of recent USDC growth, pointing to their high-frequency transaction flows and near-term utility.
The analysts noted that company executives also underscored USDC’s emerging role in agentic commerce, describing the stablecoin as a potential default currency for AI agents transacting across digital marketplaces. A growing number of products are being built on USDC and connected to Circle’s network, with trading and prediction platforms serving as prominent examples of high-velocity use cases.
The bank now forecasts average USDC in circulation of roughly 123 million in 2027, modeling reserve income of about $3.7 billion and EBITDA of $916 million that year, assuming rate cuts in line with consensus expectations. Applying a 24x EBITDA multiple, a premium to peers such as Visa (V), Mastercard (MA), Coinbase (COIN) and Robinhood (HOOD), the analysts arrived at their new $90 price target.
With just days left in February, crypto whales are quietly repositioning. The broader market remains uncertain, but on-chain data tells a different story. Large holders are selectively adding exposure across three tokens — one seeking direction, one seeking a breakout, and one targeting greater upside.
As March approaches, the big holders appear to be making their move early.
Uniswap (UNI)
Uniswap is among the more interesting names showing crypto whale activity heading into March. Despite a broader market pullback, UNI is up nearly 15.5% over the past 24 hours, briefly spiking to $4.29 before pulling back sharply.
Yet crypto whales are not flinching. On-chain data shows large holders increased their UNI holdings from 639.06 million to 640 million tokens. And they did all of that on February 26 alone. At the current price, that sudden accumulation is worth roughly $1 million over a few hours, reflecting quiet conviction even as the price corrected from its intraday high.
The chart context explains why. UNI has been consolidating inside a developing symmetrical triangle, with lower highs being met by higher lows as both trendlines converge. The past two attempts to break above the upper resistance were rejected hard, with sellers stepping in precisely at the triangle boundary. The large wick from today’s session is a direct reflection of that dynamic — momentum pushing up, supply pushing back.
However, smart money positioning remains aggressive, as the Smart Money Index is still way above the signal line. This keeps the possibility of a breakout alive if broader market conditions improve. A confirmed 12-hour close above $4.21 would validate the breakout and give UNI a possible bullish direction. That would open upside toward $4.88 and potentially $5.95 if DeFi rotation picks up meaningfully through March.
On the downside, $3.81 is the key support. A break there risks pushing UNI toward the lower triangle boundary. However, buyers have consistently defended that zone since early February, suggesting the symmetrical structure remains intact and continues narrowing. However, if the broader market sell-off begins, traders need to keep a close eye on whale and smart money positioning.
Bitcoin Cash (BCH)
Bitcoin Cash is another name where whale accumulation has turned suddenly aggressive. BCH is up just 1.5% in the past 24 hours, underperforming the broader market. But zoom out, and Bitcoin Cash is up nearly 70% year-on-year. That is a standout number. Most major crypto names cannot say the same.
That long-term strength appears to be driving fresh conviction. The largest BCH holder cohort, wallets holding between 100,000 and 1,000,000 coins, increased their stash from 4.3 million to 4.4 million today, almost $50 million. The move was rapid and decisive. Notably, these whales were steadily reducing holdings until February 25. Then the shoulder of an inverse head-and-shoulders pattern formed.
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Price began moving on February 24. By February 26, accumulation kicked in sharply. The timing is deliberate. Whales waited for the pattern to develop before committing. That is disciplined positioning, not reactive buying. On the 8-hour chart, BCH has rallied roughly 10% since February 24, only to pull back.
It is now approaching the neckline of that inverse head-and-shoulders formation. A confirmed break above $598 would signal a breach of the neckline, which BCH could attempt in March. Based on pattern projection, that opens a path toward $777. However, it would first need to push past $570, a strong technical resistance, before that.
Given BCH’s year-on-year track record, both the targets, first the neckline at 19% and then the target, are not far-fetched. However, the setup has clear invalidation levels. Failure to reclaim $508 would be an early warning sign. A drop below $470 weakens the pattern meaningfully. A close under $423 invalidates the structure entirely, and the whale thesis unravels with it.
Chainlink (LINK)
Chainlink rounds out the three tokens where crypto whale accumulation has turned decisive heading into March. LINK saw continuous whale selling through February 25. That changed on February 26. Large holders increased their stash from 591.96 million to 592.33 million tokens. That is an addition of 370,000 LINK. At the current price, that accumulation is worth roughly $3.5 million — a sudden shift in positioning.
The trigger is clear. On the 12-hour chart, Chainlink broke out of an inverse head and shoulders pattern yesterday, as predicted by BeInCrypto Analysts. This is not anticipatory buying. Whales moved after the breakout was confirmed, adding on evidence rather than speculation.
Since the breakout, LINK has met resistance at $9.62 and pulled back, possibly due to profit-taking. However, it is holding firmly near $9.28, a strong support zone. That level needs to hold for the bullish structure to remain intact.
There is another layer of strength here. The Chaikin Money Flow, or CMF, crossed above the zero line on February 20. That cross preceded the breakout, signaling institutional money flowing into LINK before the price moved. CMF currently sits at 0.13.
A push toward 0.18 would confirm deepening institutional participation and give LINK the momentum needed for the next leg.
If buying resumes and sentiment holds, a move above $9.62 followed by $10.05 opens the path toward the realized projection target of $11.70.
Invalidation is straightforward. A correction toward $8.51 is the first warning. A close below $8.04 weakens the structure considerably and puts the entire bullish thesis at risk.
Bitcoin price faces growing downside risks after rejecting major resistance near $69,700. Weak bullish volume and loss of key support levels now raise the probability of a corrective move toward $62,000.
Summary
- Rejection at $69,700 0.618 Fibonacci resistance confirms weakness
- Loss of Point of Control signals bearish short-term structure
- $62,000 support becomes next key downside target
Bitcoin’s (BTC) recent recovery rally appears to be losing momentum after price action encountered strong resistance at a critical technical zone. The market briefly pushed higher but failed to sustain acceptance above a key Fibonacci resistance level, signaling exhaustion among buyers.
Bitcoin price key technical points
- Major Resistance: $69,700 aligns with the 0.618 Fibonacci retracement level.
- Structural Shift: Bitcoin has closed below the Point of Control, signaling rejection.
- Downside Target: Weak volume increases the probability of a move toward $62,000 support.
Bitcoin recently traded into a major resistance cluster around $69,700, a region defined by both historical supply and the 0.618 Fibonacci retracement. This level typically represents a decisive barrier during corrective rallies, often separating continuation from rejection. Price action briefly tested the zone but failed to establish acceptance above it, leading to a clear rejection signal.
The rejection becomes more significant when viewed through volume dynamics. Despite the upward move, bullish participation has remained relatively weak compared to prior impulsive expansions. Rising prices without corresponding volume expansion often indicate a lack of conviction among buyers. Instead of sustained accumulation, the rally appears driven more by short-term positioning rather than strong market demand.
Following the rejection, Bitcoin has now moved back below the Point of Control (POC) of the current trading range. The POC represents the price level with the highest traded volume and often acts as equilibrium within a market structure. Losing this level on a closing basis suggests that buyers failed to maintain control, confirming resistance rather than reclaiming it.
This structural development shifts short-term bias toward consolidation or correction, even as Indiana lawmakers approved House Bill 1042, known as the Bitcoin Rights Bill, sending the measure to Governor Mike Braun for final approval and reinforcing ongoing institutional and legislative engagement with digital assets.
From a market structure perspective, Bitcoin remains within a broader trading range rather than a confirmed bullish trend. Failed breakouts at key Fibonacci resistance frequently lead to rotational moves back toward lower liquidity zones. In this case, the next logical destination sits near $62,000, where high timeframe support and prior demand previously triggered strong reactions.
A corrective move toward $62,000 would not necessarily invalidate the broader bullish outlook. Instead, such a pullback could represent a healthy reset following a weak rally attempt. Markets often revisit strong support zones to rebuild liquidity before initiating sustained directional moves. The absence of strong bullish volume during the recent rise reinforces this scenario, suggesting the market may require further consolidation before another expansion phase develops.
Conversely, an increase in bearish volume could accelerate downside momentum toward deeper support zones if sentiment deteriorates further, especially as Bitcoin remains roughly 50% below its all-time high with a growing share of supply now held at a loss following months of sustained selling pressure.
Overall, Bitcoin’s technical landscape currently reflects hesitation rather than strength. The inability to reclaim resistance combined with fading bullish volume suggests that upside momentum is weakening, placing increased importance on upcoming support reactions.
What to expect in the coming price action
Bitcoin’s next directional move will likely depend on whether buyers can quickly reclaim lost volume support. Failure to do so increases the probability of a corrective move toward $62,000, while a reclaim of the POC would invalidate the bearish scenario and restore bullish continuation potential.
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