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Crisis in mortgage & real estate that tokenization can solve

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Shubha Dasgupta

Disclosure: The views and opinions expressed here belong solely to the author and do not represent the views and opinions of crypto.news’ editorial.

Mortgage and real estate finance underpin one of the largest asset classes in the global economy, yet the infrastructure supporting it remains fundamentally misaligned with its scale. In Canada alone, outstanding residential mortgage credit exceeds $2.6 trillion, with more than $600 billion in new mortgages originated annually. This volume demands a system capable of handling continuous verification, secure data sharing, and efficient capital movement. 

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Summary

  • Mortgage finance runs on digitized paperwork, not real digital infrastructure: Fragmented data, manual reconciliation, and repeated verification are structural flaws — not minor inefficiencies.
  • Tokenization fixes the unit of record: By turning loans into structured, verifiable, programmable data, it embeds auditability, security, and permissioned access at the infrastructure level.
  • Liquidity is the unlock: Representing mortgages and real estate as transferable digital units improves capital mobility in a $2.6T+ market trapped in slow, illiquid systems.

The industry still relies on fragmented, document-based workflows designed for a pre-digital era. While front-end processes have moved online, the underlying systems governing data ownership, verification, settlement, and risk remain siloed across lenders, brokers, servicers, and regulators. Information circulates as static files rather than structured, interoperable data, requiring repeated manual validation at every stage of a loan’s lifecycle.

This is not a temporary inefficiency; it is a structural constraint. Fragmented data increases operational risk, slows settlement, limits transparency, and restricts how capital can be deployed or reallocated. As mortgage volumes grow and regulatory scrutiny intensifies, these limitations become increasingly costly.

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Tokenization offers a path to address this mismatch. Not as a speculative technology, but as an infrastructure-level shift that replaces disconnected records with unified, secure, and programmable data. By rethinking how mortgage and real estate assets are represented, governed, and transferred, tokenization targets the foundational weaknesses that continue to limit efficiency, transparency, and capital mobility across housing finance.

Solving the industry’s disjointed data problem

The most persistent challenge in mortgage and real estate finance is not access to capital or demand; it is disjointed data.

Industry studies estimate that a significant share of mortgage processing costs is driven by manual data reconciliation and exception handling, with the same borrower information re-entered and re-verified multiple times across the loan lifecycle. A LoanLogics study found that roughly 11.5% of mortgage loan data is missing or erroneous, driving repeated verification and rework across fragmented systems and contributing to an estimated $7.8 billion in additional consumer costs over the past decade.

Data flows through portals, phone calls, and manual verification processes, often duplicated at each stage of a loan’s lifecycle. There is no unified system of record, only a collection of disconnected artifacts.

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This fragmentation creates inefficiency by design. Verification is slow. Errors are common. Historical data is difficult to access or reuse. Even large institutions often struggle to retrieve structured information from past transactions, limiting their ability to analyze risk, improve underwriting, or develop new data-driven products. 

The industry has not digitized data; it has digitized paperwork. Tokenization directly addresses this structural failure by shifting the unit of record from documents to data itself.

Embedding security, transparency, and permissioned access

Tokenization is fundamentally about how financial information is represented, secured, and governed. Regulators increasingly require not just access to data, but demonstrable lineage, accuracy, and auditability, requirements that legacy, document-based systems struggle to meet at scale.

By converting loan and asset data into structured, blockchain-based records, tokenization enables seamless integration across systems while maintaining data integrity. Individual attributes, such as income, employment, collateral details, and loan terms, can be validated once and referenced across stakeholders without repeated manual intervention.

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Security is embedded directly into this model. Cryptographic hashing, immutable records, and built-in auditability protect data integrity at the system level. These characteristics reduce reconciliation risk and improve trust between counterparties.

Equally important is permissioned access. Tokenized data can be shared selectively by role, time, and purpose, reducing unnecessary duplication while supporting regulatory compliance. Instead of repeatedly uploading sensitive documents across multiple systems, participants reference the same underlying data with controlled access.

Rather than layering security and transparency on top of legacy workflows, tokenization embeds them directly into the infrastructure itself.

Liquidity and access in an illiquid asset class

Beyond data and security, tokenization addresses another long-standing constraint in real estate finance: illiquidity.

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Mortgages and real estate assets are slow-moving, capital-intensive, and often locked up for extended periods. Structural illiquidity constrains capital allocation and raises barriers to entry, limiting participation and restricting how capital can engage with the asset class. 

Tokenization introduces the ability to represent real estate assets, or their cash flows, as divisible and transferable units. Within appropriate regulatory and underwriting frameworks, this approach aligns with broader trends in real-world asset tokenization, where blockchain infrastructure is used to improve accessibility and capital efficiency in traditionally illiquid markets.

This does not imply disruption of housing finance fundamentals. Regulatory oversight, credit standards, and investor protections remain essential. Instead, tokenization enables incremental changes to how ownership, participation, and risk distribution are structured.

Incremental digitization to infrastructure-level change

This moment in mortgage and real estate finance is not about crypto hype. It is about rebuilding financial plumbing.

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Mortgage and real estate finance are approaching the limits of what legacy, document-based infrastructure can support. As volumes grow, regulatory expectations tighten, and capital markets demand greater transparency and efficiency, the cost of fragmented data systems becomes increasingly visible.

Tokenization does not change the fundamentals of housing finance, nor does it bypass regulatory or risk frameworks. What it changes is the infrastructure beneath them, replacing disconnected records with unified, verifiable, and programmable data. In doing so, it addresses the structural constraints that digitized paperwork alone cannot solve.

The next phase of modernization in mortgage and real estate finance will not be defined by better portals or faster uploads, but by systems designed for scale, durability, and interoperability. Tokenization represents a credible step in that direction, not as a trend, but as an evolution in financial infrastructure.

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Shubha Dasgupta

Shubha Dasgupta

Shubha Dasgupta is the CEO and Co-Founder of Toronto-based Pineapple, a leading mortgage industry disruptor. Since joining the mortgage industry in 2008, Shubha has focused on leveraging technology while prioritizing customer experience to transform the sector. His unique vision and expertise have been instrumental in building and growing Pineapple, which boasts over 700 brokers in its network today. Under Shubha’s leadership, Pineapple has developed a world-class, data-driven Enterprise Management platform that offers a personalized experience for clients, making it the first full-circle mortgage process for agents. His deep understanding of business and industry trends, combined with his ability to drive best-in-class customer experience and profitability, has allowed him to infuse vision and purpose in his professional endeavors throughout his career.

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Hedera (HBAR) Price Breaks Out In Preparation for 60% Rally

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HBAR MFI

Hedera price has surged in recent sessions, positioning HBAR for a breakout from a bullish chart pattern. 

The recent move reflects improving sentiment across select altcoins. However, breakouts require follow-through buying. 

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HBAR Investors Are Buying

The Money Flow Index indicates rising buying pressure for HBAR. The indicator has trended upward, signaling that capital is flowing back into the asset. Strengthening MFI readings often reflect growing demand during early recovery phases.

Investors appear to be accumulating as the price begins to climb. Increased participation provides liquidity support and reinforces bullish structure. If buying pressure continues building, HBAR could maintain upward momentum beyond near-term resistance.

HBAR MFI
HBAR MFI. Source: TradingView

The liquidation heatmap highlights $0.1084 as a critical level. Around that range, approximately $1 million worth of short positions could face forced liquidation. A move through this zone would likely accelerate upside volatility.

Short liquidations often create rapid price spikes. When bearish traders are forced to cover positions, buying pressure intensifies. For HBAR, clearing $0.1084 could serve as a catalyst for extended gains.

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However, investors must sustain bullish momentum until that level is reached. Without steady accumulation, the market may struggle to generate the necessary pressure. Breakout durability depends on consistent inflows and reduced profit-taking.

HBAR Liquidation Heatmap
HBAR Liquidation Heatmap. Source: Coinglass

HBAR Price Needs To Secure Support

HBAR price is trading at $0.1025, pressing against the $0.1030 resistance. Securing this level as support would confirm a breakout. However, a decisive close above resistance could shift sentiment toward sustained recovery.

The token has been moving within a descending broadening wedge. This formation projects a potential 57% rally upon confirmation. While that projection signals strong upside potential, a more realistic target lies near $0.1234, which would recover recent losses.

HBAR Price Analysis.
HBAR Price Analysis. Source: TradingView

On the other hand, if investors begin booking profits prematurely, downside risk increases. A pullback toward $0.0901 support would invalidate the bullish thesis. Going forward, maintaining buying pressure remains essential for Hedera’s price to extend gains and sustain breakout momentum.

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How High Can Ripple (XRP) Go Next Week? 4AIs Make Bullish Predictions

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How High Can Ripple (XRP) Go Next Week? 4AIs Make Bullish Predictions


Can XRP spike to $2 or beyond as early as next week?

While Ripple’s cross-border token crashed to almost $1.10 on February 6, bulls have since stepped in to stabilize the valuation, which currently trades around $1.55.

The question now is whether next week can deliver further gains and how high the price could go. Here’s what four of the most widely used AI-powered chatbots said on the matter.

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The Bulls

ChatGPT estimated that the most probable outcome for the week ahead is for XRP to rise to roughly $1.60, which it did on Sunday, but has yet to reclaim that level. It claimed that a move north is much more plausible than a renewed crash, based on recent investor behavior.

“At the moment, XRP looks more like it’s in a stabilization phase rather than the beginning of a major breakout. The bounce from around $1.10 to $1.50 shows that buyers stepped in aggressively at lower levels, which is constructive. However, sharp rebounds are often followed by consolidation before any serious continuation higher,” its analysis reads.

The chatbot projected that an explosion to as high as $2 next week is also possible, but it would depend heavily on a major catalyst, such as a solid revival of the broader crypto market or huge news concerning Ripple and its ecosystem.

Grok – the chatbot integrated within X – agreed with ChatGPT’s assumption that XPR is most likely to surge and maintain $1.60 next week. Nonetheless, it projected that such a scenario will only be possible if the price reclaims decisively the important zone of $1.40. Grok also envisioned a jump to as high as $1.80 but expects the rally to occur toward the end of February rather than in the following seven days.

Several indicators, including the declining amount of XRP held on the largest crypto exchange, Binance, and the formation of certain technical setups, reinforce the bullish thesis.

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The Bears

Unlike the aforementioned chatbots, Perplexity is pessimistic about XRP’s performance next week and expects the price to decline. It outlined that investor sentiment has been quite depressing lately, predicting that the price may drop to as low as $1.24 in the coming days.

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Google’s Gemini also envisioned a bearish tilt in the week ahead. It noted that February has historically been a challenging month for XRP, characterizing the $1.35 – $1.40 range as “the line in the sand.”

“This level isn’t just a number – it’s the technical floor that has been holding the ‘February slide’ together. XRP is hovering right on that edge, and if it plummets below this, it could open the door to a further plunge to as low as $1,” it concluded.

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The Great Rotation: How Capital is Pumping Defensive Sectors While Dumping Tech Stocks

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21Shares Introduces JitoSOL ETP to Offer Staking Rewards via Solana

TLDR:

  • Large-cap tech stocks have dumped back to September 2025 levels despite new highs in defensive sectors.
  • Energy, utilities, and consumer staples pump to record levels as massive capital rotates from technology.
  • Market concentration in tech means non-tech rallies cannot lift the S&P 500 without leadership change.
  • Emerging markets see the highest inflows in a decade as capital rotates away from US large-cap technology.

 

Markets are witnessing a Great Rotation as capital flows out of technology stocks and into defensive sectors. Some stocks pump to new highs while former leaders dump to new lows.

Leadership has shifted dramatically from high-flying tech names to old economy sectors. The S&P 500 has barely moved since late October 2025 despite this massive reallocation. This pump, dump, and rotate dynamic raises questions about market direction.

Capital Reallocation Drives Historic Sector Divergence

Energy through XLE has absorbed massive capital inflows as investors rotate away from technology. Utilities experienced historic call volume on Friday during the rotation.

Industrials, materials, and consumer staples have all pumped to fresh highs. Even semiconductors have participated in gains alongside traditional sectors.

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The rotation has created extreme bifurcation across markets. Large-cap tech stocks measured by MAGS have dumped back to September 2025 levels.

Software stocks tracked by IGV have declined sharply from previous peaks. This selling pressure has weighed heavily on the broader index.

Technology heavyweights act as anchors preventing the S&P 500 from advancing. Financials have also stagnated since December 2024 during this rotation phase.

The combination keeps the index flat despite pumping sectors elsewhere. Many individual names have dumped hard while others pump enough to offset losses.

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Market concentration in technology remains at multi-decade highs heading into this rotation. Non-tech stocks can pump without moving market-cap weighted indexes meaningfully higher.

The dominance of large-cap tech means their performance drives overall index direction. This structure makes rotations particularly visible when leadership shifts.

Two Possible Outcomes for the Pump, Dump, Rotate Cycle

The current rotation mirrors aspects of the 2000 period when defensive sectors pumped. Risk-on technology faces pressure as capital rotates into consumer staples and utilities.

However, important structural differences exist between market environments across decades. Past patterns rarely repeat exactly despite surface similarities.

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This rotation could resolve through two distinct scenarios. Technology weakness could spread and dump the broader market lower, like in 2000-2001.

Alternatively, tech could rebound from oversold levels and pump back into leadership. The second scenario appears more probable based on current conditions.

Sentiment on technology has rotated sharply in recent months. Investors previously applauded aggressive artificial intelligence spending across the sector.

Markets now question whether AI investments justify valuations as names dump. The selling has been indiscriminate across software and large-cap technology.

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Capital has rotated heavily into emerging markets during this shift. EEM recorded its highest inflows in nearly a decade as money pumps international exposure.

Ex-US equity funds across all capitalizations have seen substantial increases. VEU has pumped for eight consecutive weeks during the rotation.

Put/call ratios spiked recently, suggesting elevated hedging activity. This rotation back into US tech could spark meaningful rallies if leadership shifts again.

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Strategy Preferred Stocks Dominate US Market with $7B Issuance and Unique Tiered Structure

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21Shares Introduces JitoSOL ETP to Offer Staking Rewards via Solana

TLDR:

  • Strategy’s $7 billion preferred issuance represented one-third of total US preferred stock market in 2025 
  • STRC trades $150 million daily, offering 4.5% daily liquidity versus typical illiquid preferred markets 
  • Yield spreads between STRF and STRD range from 2% to 5%, functioning as investor fear index for securities 
  • $2.25 billion USD reserve stabilized STRC near par value despite recent Bitcoin price volatility and declines

 

Strategy preferred stocks have emerged as a dominant force in the preferred equity market. The company issued $7 billion in preferred securities during 2025.

This volume represented one-third of all preferred stock issuances in the United States. The firm launched five distinct preferred instruments over the past year. Each security offers different risk profiles and yield characteristics for investors.

Structural Differences Drive Yield Variations Across Securities

Strategy has created a tiered preferred stock structure with notable distinctions. STRF stands as the senior-most preferred security with enhanced protective provisions.

The instrument includes dividend step-up penalties and MSTR board seat provisions. STRD shares the same 10% fixed dividend rate but ranks junior to STRF. The subordination results in fewer governance protections for STRD holders.

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Market pricing reflects these structural differences through yield spreads. STRF consistently trades at 2% to 5% lower effective yield compared to STRD.

This spread serves as a fear index for Strategy’s preferred complex. When the yield difference widens to 5%, investor concern increases relative to narrower 2% spreads.

Crypto analyst Cern Basher highlighted the relationship between Strategy’s equity issuances on X. The common equity and preferred stocks work together in the capital structure.

Strategy issued $16.3 billion in common equity during 2025. This represented 6% of all US common equity issuance for the year.

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STRC Brings Variable Rates and Enhanced Liquidity

STRC functions as a perpetual non-convertible preferred stock with monthly dividend resets. The initial dividend rate started at 9% upon issuance.

Strategy has increased the rate six times to reach the current 11.25% level. The security represents the largest preferred issuance with $3.37 billion outstanding.

Liquidity distinguishes Strategy’s preferred stocks from typical market offerings. STRC trades approximately $150 million daily, equating to 4.5% of total market value.

Other Strategy preferreds collectively trade between $100 million and $200 million per day. Most preferred stocks in the broader market require invitations to trade.

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The variable rate structure creates different risk characteristics versus fixed-rate securities. STRD carries long duration and interest rate sensitivity.

STRC maintains short duration with minimal interest rate exposure. Market data shows STRD trades with a volatility risk premium ranging from 1.5% to 4%.

USD Reserve Reduces Volatility and Tightens Spreads

Strategy established a $1.44 billion USD reserve on December 1, 2025. The company subsequently expanded this reserve to $2.25 billion.

This cash position complements the approximately $50 billion Bitcoin treasury. The reserve creation dramatically reduced STRC volatility in the marketplace.

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Recent Bitcoin price declines tested the preferred stock complex. STRC maintained trading levels near its $100 par value throughout the downturn.

The spread between STRC and STRF narrowed following the reserve announcement. Current yield differences range from nearly zero to almost 2% between these securities.

The reserve backing changed investor perception of stress risk across the preferred stack. Tighter spreads emerged as confidence in liquidity support increased.

Strategy continues issuing additional STRC securities despite Bitcoin market volatility. The seasoning process demonstrates how structural features influence relative pricing dynamics.

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In bitcoin crash, ETF flows are down, but don’t signal investor panic

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How crypto's recent volatility impacts ETF investors, according to Bitwise CIO and GraniteShares CEO
How crypto's recent volatility impacts ETF investors, according to Bitwise CIO and GraniteShares CEO

Bitcoin’s massive slump from a record price above $126,000 last October has darkened sentiment across the crypto landscape. Faith has been shaken in a trade that was viewed as a digital rival to gold as a store of value, and as a risk-on asset that would continue to boom alongside a crypto-friendly Trump administration.

Since the all-time high price last October, bitcoin has lost almost half its value and its inability to bounce back in trading is increasing fears about another “crypto winter” — a prolonged slump similar to the time of the FTX crash in 2022 when bitcoin fell from near $50,000 to as low as $15,000. In the past month alone, bitcoin is down over 25%.

But crypto investing experts on the latest CNBC “ETF Edge” say a look at the recent flows into and out of bitcoin and crypto exchange-trade funds suggests that long-term investors are not abandoning the asset class. Money has certainly moved out, but they say not to a level that suggests long-term investor panic.

Over the past three months, the iShares Bitcoin Trust (IBIT) has seen approximately $2.8 billion in net outflows. That is substantial, but over the past year, the BlackRock ETF has attracted near $21 billion in net inflows, according to VettaFi.

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The broader spot bitcoin ETF category shows a similar pattern. Over the past three months, the ETF asset class has experienced roughly $5.8 billion in net outflows. Over the past year however, spot bitcoin ETFs have brought in around $14.2 billion in net inflows. Money is exiting, but the majority of assets have remained in placed, and some say the money being pulled isn’t from the long-term investor or financial advisor that have begun allocating assets to crypto.

“It’s not the ETF investors who are driving the sell off,” said Matt Hougan, Bitwise Asset Management CIO, on “ETF Edge.”

He says much of the broader pressure in bitcoin may be coming from crypto investors who accumulated positions over many years and are now trimming exposure. “It’s really a tale of two sides,” Hougan said. There are hedge funds and short-term traders who use the most liquid ETFs as tools and may pull capital quickly when momentum turns negative.

At CNBC’s Digital Finance Forum last week, Galaxy CEO Mike Novogratz said the crypto market’s “era of speculation” may be ending, and returns going forward will be more like a long-term investment holding. “It’s going to be real world assets with much lower returns,” he said at the CNBC event in New York City last Tuesday. “Retail people don’t get into crypto because they want to make 11% annualized,” he said. “They get in because they want to make 30 to one, eight to one, 10 to one.”

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Financial advisors at Wall Street banks are among those adding bitcoin to investor portfolios, and adding their own branded crypto ETFs. And longer horizon investors who hold crypto as a small allocation within diversified portfolios may be willing to ride out volatility, Hougan said. If investors were capitulating across the board, the outflows over the past three months would likely approach the scale of the prior 12 months inflows.

Not that the ETF asset flow analysis makes it any easy of a period to stomach for a recent crypto investor. “It’s tough to be a bitcoin investor right now,” said Will Rhind, founder & CEO of ETF company GraniteShares on “ETF Edge.” He added that the performance of other “hard” assets, like gold, has added to the bitcoin distress. For investors who have supported the “digital gold” concept, the bitcoin price crash has been unsettling. “This is not supposed to happen,” he said of a period of time when other safe haven assets perform strongly and bitcoin continues to drop. When bitcoin is going down nearly 50%, “gold’s not supposed to go to all time highs,” he said.

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Performance of the iShares Bitcoin Trust versus the SPDR Gold Shares Trust over the past year.

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Study Suggests WLFI Could Act as an Early Warning Signal for Crypto

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Crypto Breaking News

A new Amberdata analysis suggests that a niche DeFi token linked to the Trump family may have warned markets of stress well ahead of a broader crypto downturn. The study examines activity around World Liberty Financial Token (WLFI) on Oct. 10, 2025, a day when roughly $6.93 billion in leveraged crypto positions were liquidated within an hour. On the same day, Bitcoin and Ether moved decisively lower, with smaller altcoins bearing heavier losses. At the time, Bitcoin was hovering near $121,000, showing limited immediate stress, while WLFI exhibited a pronounced decline hours before the wider market sell-off began to unfold.

The Amberdata report, available here, investigates how WLFI’s unusual price and liquidity dynamics interacted with the rest of the market as tariff news circulates in the political arena. The exploration follows a market episode in which macro headlines translated into rapid, asset-specific reactions, highlighting how a single instrument can behave as a bellwether in a highly leveraged crypto ecosystem.

“A five-hour lead time is hard to dismiss as coincidence,” said Mike Marshall, the analyst who authored the work. “That duration is what separates a genuinely actionable warning from a statistical artefact.” The study emphasizes that this signal is not a claim of insider trading but an observation about how the architecture of crypto markets can amplify the relevance of smaller, highly leveraged tokens when headline-driven stress hits liquidity chains.

WLFI anomalies before the selloff

Researchers focused on three telltale patterns that contrasted WLFI with the broader market: a surge in trading activity, a divergence from Bitcoin, and extreme leverage. WLFI’s hourly volume spiked to roughly $474 million, about 21.7 times its normal level, within minutes of tariff-related political news. At the same time, funding rates on WLFI perpetual futures climbed to about 2.87% every eight hours, translating to an annualized borrowing cost near 131%. These indicators fed into a narrative that the token was disproportionately sensitive to stress, even as the rest of the market looked comparatively placid shortly before the wave of liquidations hit.

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The study does not assert insider knowledge or illicit trading; rather, it argues that the market structure can magnify the impact of asset-specific signals. One striking observation was WLFI’s holder base, which appears concentrated among politically connected participants, unlike the widely distributed ownership seen in Bitcoin. Marshall described the pattern as “instrument-specific,” with activity concentrated primarily in WLFI rather than across the crypto complex.

Timing mattered. The data show volume acceleration occurring roughly three minutes after public tariff headlines spilled into the market. Marshall notes that such rapid movement points to prepared execution rather than a collective, retail interpretation of headlines in real time. The implication, for researchers and market participants, is that under particular regulatory or geopolitical moments, an asset with high leverage and a tight, politically connected user base can become a pressure point in a broader liquidation cascade.

Another facet of the analysis ties WLFI’s stress to the mechanics of crypto collateral. In many trading venues, traders pledge a range of assets as collateral for borrowed positions. When WLFI’s price declined sharply, the value of those collateral pools fell, prompting forced liquidations of holdings like Bitcoin and Ether (CRYPTO: BTC, CRYPTO: ETH) to meet margin calls. In a market already under strain, those liquidations can amplify selling pressure across the broader ecosystem, pushing prices lower and triggering a wider selloff in a short span of time.

While WLFI’s decline appeared to precede the broader market’s weakness, Amberdata’s analysis stresses that the link is not deterministic. The report cautions against overinterpreting a single event as a predictive blueprint. Still, the authors argue that the episode offers a compelling glimpse into how leverage, asset-specific dynamics, and headline-driven liquidity shocks can interact in ways that amplify risk for other assets.

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“If this were superior analysis (sophisticated participants reading the tariff headlines faster and drawing better conclusions) you’d expect to see that reflected more broadly,” Marshall said. “What we actually saw was concentrated activity in WLFI first.” The timing underscores a broader theme in crypto markets: signal concentration can precede systemic moves, at least in certain stress scenarios.

WLFI’s role in a market-wide cascade

Amberdata’s contemporaneous measurements indicate that WLFI’s realized volatility surged to levels nearly eight times those of Bitcoin during the stressed period, underscoring how sensitive highly leveraged assets can become when macro news hits. The researchers emphasize that such patterns do not necessarily predict downturns in a universal sense; instead, they can reveal how micro-architecture—structure of leverage, liquidity distribution, and collateralization—can produce early stress signals within a single instrument that eventually feeds into broader market dynamics.

From the perspective of risk managers and traders, the WLFI episode offers a cautionary note about risk concentration and cross-asset contagion. The fact that perimeter assets with concentrated ownership and high leverage can falter first means that monitoring instrument-specific signals may help identify pockets of fragility before they cascade. It also highlights the importance of robust margin and collateral frameworks that can absorb sudden shifts without triggering a rapid domino effect across correlated assets such as BTC and ETH.

Beyond the immediate market mechanics, the report sits at the intersection of policy headlines and digital asset pricing. The per-minute reaction time to tariff news illustrated how quickly information can translate into liquidity discipline—especially for assets that exist in a tight governance loop and are used as collateral in high-leverage positions. In a space where liquidity conditions can change in minutes, observers say the WLFI episode demonstrates why market participants must consider asset-level dynamics as a potential early warning tool, even if it does not guarantee predictive accuracy in every case.

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Researchers acknowledge that WLFI’s linkage to the broader market depends on a confluence of factors—headline risk, macro policy signals, and the health of the DeFi ecosystem. The study’s broader implication is not that WLFI alone can forecast downturns; rather, it highlights how ecosystem fragility—driven by leverage, concentrated ownership, and instrument-specific behavior—can materialize in ways that precede shared downturns. As the crypto market continues to evolve, such signals may become an integral part of risk dashboards for sophisticated traders and institutions alike.

In a landscape where large-cap assets often dominate liquidity analyses, this episode serves as a reminder that smaller tokens with outsized leverage and targeted holder bases can temporarily steer attention toward systemic risk factors that would otherwise remain hidden. The question for market participants is whether these signals can be corroborated through additional data sets and repeated across multiple events, a task that will require more observations and longer time horizons to confirm transferability.

For now, Amberdata’s report remains a compelling case study in market microstructure: a single instrument with a distinctive balance of leverage and concentration can illuminate how stress travels through a network of collateralized positions, triggering liquidations that ripple through the broader market. As regulators and participants weigh the implications, the WLFI episode underscores the ongoing need for transparent data and robust risk controls in a crypto ecosystem that remains vulnerable to headline-driven shocks.

What to watch next

  • Whether the WLFI signal can be replicated across other event windows or markets, and how often such lead times occur in future stress scenarios.
  • Any regulatory or investigative developments related to WLFI, including disclosures about its holdings and governance structure.
  • Shifts in liquidity provision and margin requirements on major derivative platforms amid geopolitical headlines.
  • Further research from data providers validating instrument-specific stress signals and their predictive value for market-wide liquidations.

Sources & verification

  • Amberdata, “coincidence or signal: did WLFI telegraph cryptos’ $6.93B meltdown?” (Oct. 2025) and related data on WLFI activity around Oct. 10, 2025.
  • Cointelegraph, coverage of the Oct. 10, 2025 market crash and leveraged liquidations linked to tariff headlines.
  • Senators request probe into WLFI stake and related governance questions (UAE-linked stake in WLFI).
  • Reports on WLFI plans for foreign exchange and remittance platforms, highlighting the token’s evolving governance footprint.

Market signal and the WLFI episode: what it means for investors and the ecosystem

Risk & affiliate notice: Crypto assets are volatile and capital is at risk. This article may contain affiliate links. Read full disclosure

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US Banking Giant Morgan Stanley is Hiring for Crypto Jobs

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Praetorian Group Scandal Echoes FTX Collapse

Morgan Stanley, the $9 trillion banking giant, is aggressively advancing its crypto infrastructure capabilities in DeFi and real-world assets tokenization.

The move aligns with a broader wave of traditional financial institutions seeking skilled staff to tap into the US’s current pro-crypto posture.

Morgan Stanley Ramps up DeFi and Tokenization Push

According to a job posting on LinkedIn, the Wall Street giant is seeking a senior-level engineer to direct its blockchain architecture.

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Notably, the job description explicitly mentions “decentralized finance (DeFi)” alongside tokenization as a core focus area.

These two sectors have emerged as the fastest-growing verticals within the crypto economy. Data from analytics platform DeFiLlama indicates that DeFi protocols and real-world asset tokenization projects now command more than $100 billion in combined total value locked (TVL).

To capitalize on this growth, the successful candidate will be tasked with building “scalable, secure, and regulatory-compliant solutions.” These systems would be designed to bridge the gap between traditional banking requirements and the emerging digital asset industries.

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The posting requires proficiency in four distinct blockchains, including Ethereum, Polygon, Hyperledger, and Canton.

This combination suggests a tiered strategy using Ethereum and Polygon to provide public network liquidity and Layer-2 scaling efficiency.

Conversely, the firm appears set to deploy Hyperledger and Canton for institutional-grade, privacy-preserving permissioned transactions.

This infrastructure build-out aligns with Morgan Stanley’s broader crypto-related roadmap.

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The firm is preparing to launch a proprietary crypto trading service on its E*Trade platform in the first half of 2026. The new offering will support trading for Bitcoin, Ethereum, and Solana.

The move mirrors aggressive expansion by traditional finance (TradFi) competitors. Asset management giant BlackRock and Fidelity have already begun interacting with these sectors to tokenize institutional funds.

At the same time, there has been a noticeable surge in blockchain-related vacancies at traditional financial giants like JPMorgan Chase.

This signals that the sector is transitioning from experimental pilot programs to the development of permanent, revenue-generating digital asset products.

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Binance XRP Reserves Drop to 2024 Lows as Traders Eye Accumulation Signal

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Binance XRP Reserves Drop to 2024 Lows as Traders Eye Accumulation Signal

Binance reserves have dropped to levels not seen since early 2024, and the timing is interesting. Right as liquidity thins out, price ripped 4.5% toward $1.50. That is not a coincidence the market can ignore.

On chain data shows Binance now holds only about 2.5 billion XRP. That is a noticeable squeeze on the sell side. Less supply sitting on exchanges usually means less immediate selling pressure.

And with sentiment slowly turning bullish again, this kind of liquidity drain can add fuel fast. When supply tightens and demand wakes up at the same time, things can move quicker than most expect.

Key Takeaways
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  • Binance XRP reserves have plummeted to roughly 2.5 billion, the lowest point since early 2024.
  • Nearly 700 million coins have exited the exchange since November 2024, signaling a potential move to cold storage.
  • Analysts interpret shrinking exchange balances as a classic accumulation signal that reduces selling pressure.

Is a Supply Shock Incoming?

The shift is not small. In November 2024, Binance was holding around 3.2 billion XRP. Now that number is closer to 2.5 billion. That is roughly 700 million tokens gone, about 22% of the stack wiped from exchange wallets in just over a year.

Source: CryptoQuant

Analysts says this kind of drop usually signals tighter sell side liquidity. When coins leave exchanges, they often move into self custody. That is typically a longer term play, something institutions and whales tend to do when they are positioning, not trading.

What makes it more interesting is the timing. This reserve drain happened right after Binance rolled out full XRPL support for RLUSD. Many expected higher on chain velocity. Instead, XRP itself started flowing out.

Less supply on exchanges. Stronger price reaction. That combination is getting hard to ignore.

The Short Squeeze Scenario

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What happens next comes down to funding rates. XRP funding recently hit 10 month lows, and historically that kind of reset has often come before strong upside moves.

If shorts are getting crowded while exchange supply keeps shrinking, a clean break above $1.55 could spark a sharp squeeze toward $1.80.

Xrp (XRP)
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The setup is also getting support from improving regulatory sentiment, especially with Ripple leadership gaining more visibility in Washington.

For now, $1.45 is the key level to watch. If price holds there while reserves continue falling, that is the kind of confirmation bulls want before aiming for new highs.

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Bitcoin Volatility Subsides as Exchange Inflows Drop 90% After Peak Panic Selling

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TLDR:

  • Bitcoin recorded over 52% drawdown from all-time high as price fell below $60,000 on February 6 
  • Binance processed 25,000 BTC in panic-driven inflows before dropping threefold to 8,400 BTC recently 
  • Coinbase Advanced saw inflows plunge tenfold from 17,600 BTC peak to just 1,400 BTC in recent days 
  • Declining exchange inflows across platforms suggest selling pressure has largely subsided for now

 

Bitcoin volatility continues to test market participants as the leading cryptocurrency experiences a prolonged correction phase.

The digital asset dropped below $60,000 on February 6, recording a drawdown exceeding 52% from its all-time high. Exchange inflow data reveals panic-driven selling across both retail and institutional segments.

However, recent trends suggest selling pressure may be stabilizing as inflows decline substantially across major trading platforms.

Exchange Inflows Reveal Widespread Market Stress

The cryptocurrency market faced intense pressure on February 5 when Bitcoin inflows to exchanges surged dramatically.

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Trading platforms recorded unusually high volumes as investors rushed to liquidate positions. This behavior reflected growing concerns about further price deterioration across the market.

Binance processed approximately 25,000 BTC in inflows during this period. The platform represents the largest global trading volume and serves a diverse user base.

The substantial flow indicated widespread selling activity across different investor categories. Market analyst Darkfost highlighted these developments in a detailed thread on the social media platform X.

Coinbase Advanced recorded 17,600 BTC in inflows on the same day. This figure represented a fivefold increase compared to early February levels.

The US-regulated platform primarily serves professional and institutional traders. The elevated activity demonstrated that sophisticated investors were not immune to market stress.

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Both platforms experienced similar patterns despite serving different market segments. Retail traders and institutional participants alike moved assets onto exchanges for potential sales.

The synchronized behavior across platforms intensified downward price pressure. This dynamic created a challenging environment for all market participants attempting to navigate the correction.

Recovery Signals Emerge as Selling Pressure Subsides

Market conditions have improved considerably since the early February peak in exchange activity. Binance inflows declined to 8,400 BTC in subsequent days.

This represents a threefold reduction from the earlier surge. The decrease suggests panic selling has largely subsided among the platform’s user base.

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Coinbase Advanced experienced an even more pronounced decline in inflows. The platform recorded just 1,400 BTC in recent activity.

This marks a tenfold reduction from the February 5 peak. Professional and institutional investors appear to have stabilized their positioning strategies.

The declining inflow trend indicates that forced selling has largely concluded. Market participants who needed to liquidate positions have already done so.

Remaining holders demonstrate greater conviction in their investment thesis. This shift creates conditions for potential price stabilization.

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A modest recovery is already underway as selling pressure eases. The cryptocurrency has begun regaining some lost ground in recent sessions.

Sustained recovery depends on whether demand can match or exceed remaining supply. Market observers continue monitoring exchange flows for signs of renewed accumulation or distribution patterns.

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Aave DAO Shift as DeepSnitch AI Rises

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Aave DAO Shift as DeepSnitch AI Rises

Aave is pushing DeFi governance into a new phase. Its proposed $50 million deal to redirect product revenue back to the DAO could reshape how major protocols align incentives and reward token holders, an important shift in today’s crypto news cycle.

But while Aave continues to build, investors are hunting for the best crypto presale to buy. Most of the attention is now turning to DeepSnitch AI.

The project is developing a Web3-native Bloomberg Terminal, drawing over $1.6 million from whales in its presale. Many believe DSNT could be the most important crypto news today.

Aave Labs proposes $50M deal to redirect revenue to DAO

In the latest crypto news today, Aave Labs has requested a $50 million funding package from the Aave DAO in exchange for redirecting all revenue from Aave-branded products to the DAO treasury.

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The proposal includes up to $42.5 million in stablecoins, $25 million as a primary grant and $17.5 million tied to milestones, along with 75,000 AAVE tokens worth roughly $8 million.

In return, revenue from platforms such as aave.com, the upcoming Aave App and Card, Aave Pro, Aave Kit, and Aave Horizon would flow entirely to the DAO.

Top 3 cryptocurrencies to buy amid the crypto news today

DeepSnitch AI

In the latest crypto news today, DeepSnitch AI continues advancing its presale, raising more than $1,590,000 with the token holding at $0.03985. That represents roughly 160% growth from its initial level, reflecting steady participation as the project progresses through its current stage.

The broader thesis centers on its launch structure. By postponing open-market trading while keeping the platform accessible to presale users, the team concentrates on early engagement within a limited group. This approach restricts immediate liquidity while allowing the product to mature and demonstrate utility before wider exposure.

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Supply dynamics further shape expectations. More than 36 million tokens are already staked, reducing the projected circulating float ahead of listing. If awareness expands into a relatively constrained supply environment, early price discovery could be volatile.

There are also ongoing discussions about potential listings on major exchanges, though such outcomes remain speculative until formally confirmed. As with any presale, risks are significant, but DeepSnitch AI combines phased pricing, staking incentives, and live platform access.

Jasmy

JasmyCoin is trying to build a base after breaking a short-term bearish pattern. Fresh buying and optimism around the Jasmy Swap launch have helped sentiment. Price held above the key $0.0048 support on February 13, which keeps recovery hopes alive.

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The bounce still looks fragile. Sellers blocked price near $0.0066–$0.0070 at the top of a descending channel. JASMY also struggles near the mid-Bollinger Band, which acts as resistance. The broader trend has not flipped.

MACD stays below its signal line and shows weak momentum. Bulls must push price above channel resistance to target $0.008 or even $0.01. If $0.0044–$0.0048 fails, sellers regain control.

Pi Network

Pi Network has gained over 10% as traders prepare for the February 15 mainnet upgrade. The update requires node operators to install new software. The team aims to improve speed, security, and scale. That catalyst has fueled buying interest.

PI has broken a short-term descending trendline and shifted momentum higher. Price now holds above $0.15, which shows buyers defend support. The next test sits at $0.20, a key psychological and technical level.

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If PI closes above $0.20, the price could move toward $0.22–$0.25. If bulls fail there, the token may pull back to $0.14–$0.15. Strong selling could expose $0.12.

The bottom line

DeepSnitch AI is the rare chance to sidestep the noise of crypto winter and position before the crowd arrives. While the crypto news today focuses on governance proposals and short-term price swings, the real opportunity sits in this presale.

At $0.03985, a $2,000 allocation secures roughly 52,200 DSNT, and with the DSNTVIP30 bonus, that stack grows even larger before launch.

With over $1.6 million already raised, staking locking supply, and exchange speculation building, the upside narrative is clear. If adoption accelerates in 2026, early buyers won’t just outperform; they could redefine their entire portfolio trajectory.

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Visit the official DeepSnitch AI website, join Telegram, and follow on X for more updates.

FAQs

How does breaking crypto news today impact new investment opportunities?

Breaking crypto news drives short-term volatility, but DeepSnitch AI offers stronger long-term upside through utility and presale positioning.

Which project stands out in the latest blockchain updates?

Among the latest blockchain updates, DeepSnitch AI leads with AI-powered analytics, staking incentives, and accelerating whale participation.

What do current crypto industry headlines suggest for 2026?

Crypto industry headlines highlight innovation, yet DeepSnitch AI remains the top presale for asymmetric growth potential.

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Disclaimer: This is a Press Release provided by a third party who is responsible for the content. Please conduct your own research before taking any action based on the content.

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