Crypto World
Cybersecurity Stocks Slump After Anthropic AI Launch
Shares in leading listed cybersecurity companies have fallen since Anthropic’s launch of Claude Code Security on Friday, an AI-powered code vulnerability scanner.
Anthropic launched Claude Code Security on Feb. 20 as a limited research preview.
Claude can reason like a skilled security researcher
According to the company website, Anthropic’s chatbot Claude “scans your entire codebase for vulnerabilities, validates each finding to minimize false positives, and suggests patches you can review and approve.”
Claude reasons through code “like a skilled security researcher,” it understands context, traces data flows, and “catches vulnerabilities that pattern-matching tools miss,” before proposing a fix.
Anthropic’s most advanced AI model, Claude Opus 4.6, has already found more than 500 high-severity vulnerabilities that have survived decades of expert review, VentureBeat reported on Monday.
ChatGPT maker OpenAI launched a new benchmark on Feb. 19 to evaluate how well different AI models detect, patch, and exploit security vulnerabilities in smart contracts. Claude Opus 4.6 came out on top.
Cybersecurity company shares decline
The top five US-listed information technology security companies by market capitalization have all seen heavy share price declines continue this week.
Palo Alto Networks, America’s largest cybersecurity company with a market capitalization of $116 billion, saw its stock (PANW) slide almost 9% since the launch.
CrowdStrike, which provides endpoint security, threat intelligence, and cyberattack response services, had an even greater loss with its share prices tanking 18% since Feb. 20, erasing $20 billion in market cap.
Meanwhile, California-based Fortinet, which develops and sells security products, lost 9% from its share price (FTNT) over the same period, according to Google Finance.
Other leading cybersecurity firms, such as Cloudflare and Zscaler, also saw their stocks slide amid the new AI competitor.
“What you’re seeing today is really the continuation of a panic-driven, narrative-led selloff,” Shrenik Kothari, security and infrastructure analyst at Robert W. Baird, told Reuters.
Market reactions are not irrational
“These reactions are not irrational,” noted the Kobeissi Letter in a lengthy post on the threat of AI taking over the IT workforce on Tuesday.
“When AI replicates what workers do, pricing power shifts to the buyer. That is the first-order impact, and it is very real.”
Related: Citrini’s AI doom report sees software, payment stocks tumble
Analysts at financial services firm Wedbush said the stock sell-off was due to “AI Ghost Trade fears.” They noted that Anthropic’s move into the market reinforces a broader view that cybersecurity will be a key beneficiary of the AI boom, reported Proactive on Tuesday.
Magazine: Crypto loves Clawdbot/Moltbot, Uber ratings for AI agents: AI Eye
Bitcoin (CRYPTO: BTC) stands at a turning point as institutional participation deepens and exchange-traded products reshape the trajectory of the largest crypto asset. Eric Jackson, founder of EMJ Capital, describes a coming wave of “purification” in which long-horizon capital becomes a more persistent buyer, even as price momentum remains tethered to ETF flows. Recent weeks have featured persistent net outflows from U.S. spot BTC ETFs, reinforcing a bearish tilt in the near term, yet Jackson argues that the industry is not failing as an asset class so much as redefining its owners and its catalysts. The market’s attention has shifted to the way Bitcoin interacts with broader markets, particularly through the lens of large equity ETFs and the evolving holdings of institutional investors.
Key takeaways
- Bitcoin has evolved into a high-beta tech position driven by ETF structures and institutional participation, with price dynamics increasingly echoing tech equities.
- Despite ongoing net outflows from U.S. spot BTC ETFs, the prevailing view is that the flow pattern may shift as longer-term institutional buyers re-emerge as meaningful holders.
- Stablecoin supply on exchanges needs to recover to counter prevailing bearish momentum and inject fresh liquidity into the market.
- Bitcoin’s price moves are closely tied to the performance of large ETFs like IGV (EXCHANGE: IGV), complicating the narrative that BTC is merely a store of value.
- The next wave of buyers could come from sovereign wealth funds, corporate treasuries, and other patient capital that plans to hold BTC for decades instead of quarters.
Tickers mentioned: $BTC, $IGV, $IBIT
Sentiment: Neutral
Price impact: Negative. BTC dipped below $63,000 amid ETF outflows.
Market context: The story sits at the intersection of ETF-driven liquidity, the risk-on attitude of macro markets, and the pursuit of longer-term capital that could redefine Bitcoin’s role beyond a short-term driver of price action.
Why it matters
The core argument explored by Jackson is that the current ETF environment is not a repudiation of Bitcoin’s thesis but a reconfiguration of who owns BTC and why. He notes that Bitcoin’s recent price action has been highly reactive to the behavior of large tech-focused baskets rather than gold-like stability, underscoring a shift toward a “high-beta tech position.” This is not a condemnation of Bitcoin as an asset; it highlights how ETF architecture can amplify or dampen moves depending on the flow dynamics of large holders.
In a contrast to 2021’s retail-driven exuberance, this cycle has institutions acting as the marginal buyers, with retail money gravitating toward other tech equities. The outcome, Jackson argues, could be a new equilibrium in which long-duration capital, less prone to rapid rebalancing, steps in as a stabilizing influence over time. This shift is underscored by the fact that the largest spot BTC ETF provider, via BlackRock, operates IBIT (EXCHANGE: IBIT), a vehicle that reframes who actually owns BTC and how its supply is interpreted in the broader market. In his words, “IBIT changed who owns Bitcoin.”
“BTC didn’t fail as an asset. It succeeded as an ETF. And that’s the problem.”
The analysis also points to a broader ecosystem dynamic: as exchange-traded products accumulate assets, their flows can become a dominant price driver, even if the asset itself remains in a longer-term growth trajectory. Jackson emphasizes that the true test is not immediate price action but the durability of new ownership patterns—whether sovereign wealth funds, corporate treasuries, and patient capital will embrace BTC as a decades-long holding rather than a quarterly rebalancing instrument. The evolution toward such ownership could act as a counterweight to cyclical pressures and help Bitcoin resist the pull of any single macro narrative.
“IBIT changed who owns Bitcoin.”
Market data cited in the commentary show a continued pattern of ETF outflows in the U.S. spot market, with sector-wide momentum often tied to the fate of the IGV (EXCHANGE: IGV), the BlackRock-run tech software ETF that remains a barometer for Bitcoin’s near-term price direction. Jackson notes a stark relationship: when IGV sells off, BTC tends to slide in tandem. This linkage reinforces the view that Bitcoin, for now, functions more as a risk-on tech proxy than as a pure store of value, a reality that could persist until a broader base of durable, long-horizon buyers emerges.
On the bearish side, data from Farside Investors indicate net outflows from US spot BTC ETFs topping the $200 million mark on a single day, reinforcing the delicate balance between supply and demand in the current environment. This outflow backdrop coincides with BTC/USD trading beneath recent support zones and with the market contemplating a potential macro bottom near the $50,000–$60,000 range. Yet the rhetoric around purification—an upgrade in the quality and durability of BTC ownership—offers a counter-narrative: the next phase could bring steadier demand from capital that does not chase quarterly returns but seeks a multi-year thesis aligned with the future of digital assets in institutional portfolios.
For observers, the key question remains: will the bears be proven right in the near term, or will the emergence of longer-duration capital push BTC toward new, steadier footing? Jackson’s framing suggests the latter, arguing that every cycle clears weak hands and paves the way for a more durable, patient class of buyers that can compress volatility over time. The bear-case focuses on current price behavior and ETF-outflow metrics; the bull-case centers on a structural shift in ownership that could re-anchor Bitcoin to a longer horizon rather than a shorter trading horizon.
As the market absorbs this tension, the role of stablecoins and liquidity in exchange ecosystems will be crucial. Jackson highlights a potential bullish trigger in the stabilization and expansion of stablecoin supply on venues where BTC trades, arguing that liquidity depth and cross-asset flows will better support a longer-duration investment thesis. The broader takeaway is not a single catalyst but a sequence of developments: improved ownership dispersion, more patient capital, and a liquidity backdrop capable of supporting larger, more durable bets on BTC’s future.
Ultimately, the narrative is not about abandoning the Bitcoin thesis but about reframing it in the language of institutions and ETFs. If “purification” proves to be a meaningful transition rather than a temporary lull, BTC could transition from a speculative cycle-driven asset to a more mature component of diversified institutional portfolios. That is the arc Jackson envisions: a gradual reweighting of the BTC thesis as the market benefits from a new class of owners who cross asset boundaries and commit to holdings that endure beyond quarterly reporting cycles.
For readers, the implications extend beyond price action. If the trend toward long-horizon ownership takes hold, Bitcoin could see more predictable demand patterns, reduced reliance on fickle retail speculation, and a broader acceptance within traditional investment portfolios. The coming months will be telling as ETF flows, stablecoin dynamics, and the behavior of IGV and IBIT converge to shape Bitcoin’s role in the institutional narrative.
What to watch next
- Watch for the end of IGV-driven selling pressure and any decoupling of BTC price from tech-equities movements.
- Observe whether stablecoin supply resumes growth on major exchanges, potentially altering liquidity dynamics.
- Track net flows into IBIT and other spot BTC ETFs as a gauge of increasing long-term institutional interest.
- Monitor commentary from sovereign wealth funds and corporate treasuries regarding BTC allocations and long-horizon positioning.
- Pay attention to price levels around the $50k–$63k range and any signals from volume that could precede a new phase of demand.
Sources & verification
- Eric Jackson’s X post discussing BTC price strength and the ongoing institutional exodus.
- Spot Bitcoin ETF net flows coverage detailing five weeks of net outflows.
- BlackRock’s position in BTC via IGV and the role of IBIT, the iShares Bitcoin Trust.
- Farside Investors’ data on netflows for Bitcoin ETFs.
- Historical references to BTC price behavior on macro timelines and timeline-based targets mentioned in market commentary.
Market reaction and the next phase for Bitcoin
Bitcoin (CRYPTO: BTC) is navigating a landscape where ETF mechanics and institutional involvement increasingly dictate price action, even as longer-horizon capital begins to align with a more durable ownership thesis. From Jackson’s perspective, the current environment is not a failure of Bitcoin’s core premise but a maturation of its ownership structure. He points to the fact that Bitcoin’s popularity as an ETF instrument has transformed who holds it and why, a transformation that could ultimately stabilize demand and reduce the volatility that has characterized the asset in previous cycles. In his framing, the “purification” process refines the Bitcoin thesis by pushing it toward a cohort of buyers capable of maintaining positions across a variety of market regimes.
IGV’s behavior—an influential proxy for tech-sector risk appetite—has underscored the degree to which BTC’s macro environment remains tethered to broader equity flows. The relationship is not a perfect one, but it has become a meaningful driver in days of outsized ETF activity. The linked commentary suggests that if IGV ceases its selling pressure, BTC could benefit from a re-tightening correlation and a broader base of liquidity that supports more stable trading ranges. IBIT, as a cornerstone of BTC exposure within a regulated ETF framework, represents a structural shift in ownership that could cement a longer-term, institutional footprint in the Bitcoin ecosystem.
Despite near-term headwinds, the long arc of this narrative remains optimistic for holders who are patient and disciplined. The prospect of sovereign wealth funds and corporate treasuries adopting BTC as a dedicated, multi-year allocation is the biggest potential inflection point described by Jackson. If realized, this shift would move Bitcoin beyond episodic cycles of price strength tied to fundraising or speculative sentiment, toward a steadier, more resilient accumulation that could redefine Bitcoin’s role in the global financial system over the coming decade. In the near term, traders will watch for liquidity signals, ETF flow trends, and the evolving interaction between BTC and large tech-equity benchmarks as the market slowly prices in a longer horizon reality.
Binance is back in the spotlight. Former compliance investigators now claim the exchange allegedly processed more than $1B in transactions tied to Iran sanctions violations, even while operating under U.S. monitorship after its 2023 plea deal.
Changpeng Zhao is not staying quiet. Instead of denying activity outright, he argues the investigators were fired for failing to stop the breaches, not for exposing them.
Now the fight is turning public, risking a return of regulatory pressure just as Binance tries to steady its global footing.
Key Takeaways
- Former investigators allege Binance processed nearly $1 billion in transactions linked to Iran after its 2023 plea deal.
- The staff claim they were fired in retaliation for identifying and flagging the suspicious on-chain activity to management.
- CZ counters that the employees were dismissed for incompetence because they failed to block the illicit flows in the first place.
What is the $1B Sanctions Breach Allegation?
Five former Binance investigators say they were fired after uncovering major sanctions breaches. They claim wallets tied to Iranian entities, including the exchange Nobitex, allegedly moved around $1B through Binance even after the November 2023 DOJ settlement.
These investigators worked on chain forensics. They say bad actors used obfuscation methods to slip past screening systems. When they flagged it internally, they allege the response was not corrective but retaliatory.
Binance is still under a three-year monitorship from the DOJ and FinCEN, which means any compliance failure carries extra weight.
The Whistleblowers’ Case: Retaliation or Restructuring?
The former employees are framing this as whistleblower retaliation. They say once they flagged the $1B exposure, they became a problem for an exchange trying to show regulators it had cleaned up.
In their view, the issue was not just the transactions. It was how Binance handled the discovery. They argue the exchange focused more on containing the fallout than fixing the screening gaps.
They also point to the size of the flows as proof that automated filters were not catching everything. If the system failed and the people who caught it were removed, that would weaken internal defenses.
CZ’s Defense: ‘Fired for Cause’
CZ is pushing back as he always does. He says this is not whistleblower retaliation. It is a performance issue. If investigators uncovered $1B in illicit flows, why were those flows not stopped in the first place?
Binance claims the departures were part of a compliance overhaul. The company says it brought in stronger talent and points to a 97% drop in sanctions related transaction volume between early 2024 and mid 2025 as proof that reforms are working. It denies firing anyone for reporting violations.
The stakes are huge. Binance already paid $4.3B in penalties tied to AML and sanctions failures and is operating under a DOJ monitorship. If regulators conclude the exchange ignored new violations or retaliated against staff, it could jeopardize that agreement.
Everything hinges on intent. If the firings were performance based, fallout may be limited. If not, regulatory pressure could intensify fast.
Ultimately, the outcome of this dispute will likely hinge on the internal documentation of the firings. If the data supports CZ’s claim of incompetence, Binance moves on.
Discover: Here are the crypto likely to explode!
The post Binance vs. Whistleblowers: The $1B Iran Sanctions Breach Allegation appeared first on Cryptonews.
Lawmakers in Arizona have taken a significant step toward formalizing state-level engagement with digital assets by advancing legislation that would create a Digital Assets Strategic Reserve Fund, allowing the state to hold, invest and potentially lend seized cryptocurrencies.
Summary
- Arizona lawmakers advanced Senate Bill 1649, which would create a Digital Assets Strategic Reserve Fund allowing the state to hold, invest and potentially lend seized cryptocurrencies.
- The fund would be administered by the State Treasurer and capitalized using confiscated or forfeited crypto assets rather than taxpayer funds.
- Eligible assets include Bitcoin, XRP and DigiByte, marking a notable step toward formal state-level recognition of digital assets.
Arizona senate backs crypto reserve fund
The measure, Senate Bill 1649 (SB1649), cleared the Senate Finance Committee in a 4–2 vote and was subsequently approved by the Senate Rules Committee, moving it closer to a full Senate vote.
Under the proposed law, the Arizona State Treasurer would administer the reserve, using assets that have been confiscated, forfeited or surrendered through criminal or civil enforcement actions. Instead of relying on taxpayer dollars to acquire crypto on the open market, the fund would be capitalized with these seized holdings.
Eligible assets named in the bill include Bitcoin (BTC), XRP (XRP) and DigiByte, alongside other digital assets that meet specified “fair value” criteria such as stablecoins and non-fungible tokens.
The inclusion of XRP in the reserve’s eligibility framework marks a notable development for the token, as it would represent one of the first instances of a U.S. government entity formally recognizing it as a potential reserve asset.
While the legislation does not require the state to immediately purchase or hold these assets, it establishes a legal structure for doing so in the future.
The bill’s progress highlights a broader trend in U.S. crypto policy, with several states exploring ways to integrate digital assets into public finance strategies.
However, similar initiatives in Arizona have faced pushback in the past from Governor Katie Hobbs, who has expressed caution about exposing state funds to cryptocurrency volatility. SB1649 must still pass both chambers of the legislature and survive executive review before becoming law.
Crypto World
Ethereum Foundation starts 70,000 ETH staking process to fund operations, bolster network
The Ethereum Foundation has started staking part of its treasury holdings, putting around 70,000 ETH to work as part of its plan to support ongoing operations in the Ethereum ecosystem.
The staking commenced with a 2,016 ETH deposit, and uses Dirk and Vouch, open-source validator tools developed by infrastructure firm Attestant, the Foundation said.
Dirk functions as a distributed signer that allows for coordination across multiple jurisdictions and reduces single points of failure, while Vouch handles validator duties.
The decision follows the public release of the Foundation’s treasury policy last year to manage crypto and fiat holdings in a way that balances long-term sustainability with Ethereum-aligned values such as decentralization, open-source access and user privacy.
Rather than letting ETH sit idle, the Foundation now plans to earn staking rewards and redirect those back into funding protocol research, ecosystem development, and community grants.
Based on the CoinDesk Composite Ether Staking Rate (CESR), the current staking yield of the Ethereum validator population is around 2.808%. Data from Arkham Intelligence shows the Ethereum Foundation currently has 172,650 ETH it could deploy, along with an additional 10,000 wrapped ether (WETH).
The staking setup uses a combination of hosted infrastructure and self-managed hardware, including minority clients, spread across several countries, the Foundation said.
The Hashgraph Group, a Swiss technology company building on the Hedera network, launched TrackTrace, a platform aimed at helping prepare for upcoming European Union product-compliance requirements tied to digital product passports.
TrackTrace is designed to improve supply-chain visibility by tracking goods and recording product data, including emissions-related information, in a way that can be used for compliance reporting and authenticity checks, the company said in a Tuesday announcement.
The platform builds verifiable audit trails for product-specific data, sustainability credentials, durability and reparability, while incorporating agentic artificial intelligence (AI) to automate workflows for compliance reporting.
The blockchain-based solution comes in response to the EU’s Ecodesign for Sustainable Product Regulation (ESPR), which went into effect on July 18, 2024. The ESPR creates a framework for product-specific rules that can include a Digital Product Passport (DPP) to standardize how key product information is recorded and shared across multiple supply chains.
A major early milestone is the EU’s battery passport requirement under the EU Battery Regulation, which is set to apply from Feb. 18, 2027, for certain categories including electric-vehicle and industrial batteries above 2 kilowatt-hours.
DPP requirements will extend to textiles, apparel, iron, steel and other priority items starting July 2027.
Related: EU to ban anonymous crypto accounts and privacy coins by 2027
EU climate targets drive data demands
The EU’s Green Deal aims to transform the bloc into a more resource-efficient economy and cut emissions by at least 50% by 2030. It also aims to reach net carbon neutrality by 2050 through the European Climate Act.
“The European Green Deal strives to establish the first climate-neutral continent by 2050 and needs infrastructure it can trust to transform Europe into a modern, efficient, and sustainable economy,” wrote Stefan Deiss, co-founder and CEO at The Hashgraph Group.
“With TrackTrace built on Hedera, we deliver that critical trust data infrastructure layer that enables companies to comply with DPP regulation, while strengthening global supply chain integrity and fostering the transition to a sustainable, transparent, and circular economy.”
Businesses targeting EU markets will have to rely on solutions such as TrackTrace to ensure compliance with the ESPR.
The Hashgraph Group said it is working with PwC on digital product passport implementations for enterprise clients and that TrackTrace can support traceability across a product’s lifecycle. Cointelegraph reached out to The Hashgraph Group for more details on the collaboration.
Related: Bitcoin treasuries log rare selling streak as BTC trades near $66K
TrackTrace builds on identity tools
TrackTrace has integrated The Hashgraph Group’s existing decentralized identity solution, IDTrust, to provide verifiable credentials in a decentralized manner.
This enables the linkage between physical events and digital records in a tamper-proof environment, where digital business processes and immutable data audit trails are anchored on the Hedera network.
Hedera claims to be the world’s most energy-efficient distributed ledger technology (DLT) that is governed by a council of leading global organisations including Dell, Deutsche Telecom, EDF, FedEx, Google, Hitachi, IBM, Mondelēz and Standard Bank, among over 30 Hedera Council members.
Competing supply chain traceability solutions include the blockchain-based IBM Sterling Transparent Supply, TraceX, Circular for batteries and plastics, and TrusTrace for fashion and textile traceability.
Magazine: How crypto laws changed in 2025 — and how they’ll change in 2026
PIPPIN continues to defy the overall market crash, while BCH has dumped the most from the larger caps.
Bitcoin’s price continues its underwhelming performance, dropping to another multi-week low of under $63,000 earlier today.
The altcoins are bleeding out as well, with another day of multiple losses of more than 3%. Some, such as BCH, have dumped by over 10%.
BTC Slides Again
BTC was rejected at over $70,000 at the beginning of the previous business week, and its bounce-off attempt was halted in its tracks. The following few days were less volatile, as the cryptocurrency remained sideways between $67,000 and $68,500. It slipped to $65,600 on Thursday, but quickly rebounded and stood close to $69,000 during the weekend.
Despite the most recent developments on the tariff front, which included a new global taxation after the US Supreme Court ruled against Trump, BTC remained relatively stable at first. However, it nosedived once the legacy futures markets opened late on Sunday.
In just over an hour, it dumped from $67,700 to $64,400, leaving millions in liquidations. It bounced off to $66,500 mid-day, but the bears resumed control of the market and drove it south hard once again. Earlier today, the asset dipped below $63,000 for the first time since the February 6 crash, when it plunged to $60,000.
It trades inches above that line now, with its market cap dumping to $1.260 trillion. Its dominance over the alts has also been hit hard and is below 56% on CG now.
Alts Tumble
Ethereum continues to lose value rapidly as well, dumping by 5% daily to just over $1,800. XRP is down by 4.5% and struggles to remain above $1.30. BNB, SOL, and TRX have marked similar losses, while DOGE, ADA, and HYPE have plunged by over 5%.
Bitcoin Cash has dropped the most from the larger caps. The asset has shed over 11% of value and now sits below $485. ZEC, RAIN, UNI, SUI, WLFI, and many others are deep in the red as well.
In contrast, PIPPIN continues to chart gains, surging to a new all-time high of $0.80 after another 11.5% daily jump.
The total crypto market cap, though, has lost more than $150 billion since Sunday and is down to $2.260 trillion on CG.
Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive $600 exclusive welcome offer on Binance (full details).
LIMITED OFFER for CryptoPotato readers at Bybit: Use this link to register and open a $500 FREE position on any coin!
Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.
Yesterday, shares in IBM Corporation opened above $254 but closed below $224. By some estimates, this marked the company’s largest single-day decline in the past 25 years. Since the start of February, the stock has fallen by roughly 27%, its worst monthly performance since 1968.
Why Did IBM’s Share Price Drop?
The main trigger was an announcement by Anthropic about the launch of a new AI tool, Claude Code, designed to modernise legacy COBOL code.
This is particularly significant for IBM, as much of “Big Blue’s” business is tied to mainframes processing transactions for banks and government institutions in COBOL. Traditionally, upgrading such systems required “armies of consultants” and multi-billion-dollar budgets.
The new AI solution promises to automate this process, making it faster and more cost-effective. This not only poses a direct threat to IBM’s services and support revenues, but also reignites concerns that AI could reshape the entire technology sector, rendering established business models less sustainable.
Technical Analysis of IBM Shares
Throughout 2025, IBM stock traded within an ascending channel, but the psychological $300 level proved to be strong resistance. The price attempted to secure a foothold above it for several months, without success. The earnings release on 28 January turned into a bull trap and marked the beginning of an extraordinary sell-off, accompanied by rising volume on bearish candles — a sign of market weakness.
At the same time, several major analysts (including those at Goldman Sachs and Jefferies) have maintained or reiterated their “Buy” ratings. Their optimism is based on the view that panic surrounding Anthropic’s tool may be overstated, while IBM’s financial fundamentals remain solid.
Although the sharp downward momentum may continue in the near term, a support zone could emerge where several technical levels converge:
→ the psychological $200 mark;
→ the 2025 low around $215;
→ the lower boundary of an increasingly clear channel (shown in red).
Buy and sell stocks of the world’s biggest publicly-listed companies with CFDs on FXOpen’s trading platform. Open your FXOpen account now or learn more about trading share CFDs with FXOpen.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Decentralized finance (DeFi) portfolio tracker Step Finance said it will wind down operations effective immediately.
The Solana-based platform was subject to a hack at the end of January, which saw 261,854 SOL, worth roughly $27 million at the time, stolen.
Step said it was unable to secure a viable outcome following the hack after it “explored every possible path forward, including financing and acquisition opportunities,” in a post on X on Monday.
The project is working on a buyback for holders of native token STEP based on a snpashot of holdings and value prior to the incident.
STEP lost nearly 96% of its value following the incident, and is a further 36% lower in the last 24 hours after the closure announcement.
Step Finance was founded in 2021 and offered an aggregation of yield farms, liquidity provider (LP) tokens and other DeFi positions from a single platform.
Affiliate projects SolanaFloor, a Solana-focused media outlet, and tokenization platform Remora Markets, will also close.
TLDR:
- Ethereum Foundation stakes 70,000 ETH to generate yield for ecosystem operations.
- Validators use Dirk and Vouch for distributed signing and client diversity risk mitigation.
- Type 2 withdrawal credentials allow flexible balance management across validator accounts.
- EF launches a dedicated DeFi team to expand ecosystem projects and protocol research.
Ethereum Foundation Treasury Staking Initiative marks a new phase in the organization’s capital management strategy.
The Ethereum Foundation has started staking part of its treasury in line with its previously announced Treasury Policy.
On February 24, 2026, the Foundation confirmed a 2,016 ETH deposit. It also stated that about 70,000 ETH will be staked, with rewards directed back into the treasury to support ongoing operations.
Treasury Deployment and Validator Configuration
Through a post shared by the Ethereum Foundation’s official account, the organization confirmed the rollout of its Treasury Staking Initiative.
The update stated that approximately 70,000 ETH will be committed to staking. Rewards generated from validators will return to the Ethereum Foundation treasury.
The Ethereum Foundation selected open-source tools developed by Attestant. Dirk will function as a distributed signer across several geographic regions. This structure reduces single points of failure and supports validator continuity during localized disruptions.
Vouch will coordinate multiple Beacon and Execution client pairings. Its configuration strategies are designed to reduce client diversity risk. The Ethereum Foundation confirmed the use of minority clients to strengthen network resilience.
Infrastructure will combine hosted services with self-managed hardware across multiple jurisdictions. This approach distributes operational responsibility.
It also aligns with the Foundation’s stated objective of maintaining geographic and technical diversity within its validator set.
Validator Credentials and Operational Structure
The Ethereum Foundation confirmed that validators use Type 2 (0x02) withdrawal credentials. These credentials allow validator balances to move between accounts through consolidations. As a result, signing-key custody can be adjusted more efficiently.
Each validator can hold a maximum effective balance of 2,048 ETH. This configuration lowers the total number of required signing keys to about 35. Reduced key management simplifies operational oversight without changing staking exposure.
Like 0x01 credentials, exits can be triggered by the withdrawal address even if validators are offline. This setup provides additional operational flexibility. It ensures withdrawal authority remains independent from validator uptime.
The Ethereum Foundation also stated it will build blocks locally instead of using proposer-builder separation sidecars.
By participating directly in consensus through solo staking, the Ethereum Foundation earns ETH-denominated yield.
The organization confirmed that staking rewards will help fund protocol research, ecosystem development, and community grants while operating within Ethereum’s native economic framework.
Software stocks have faced notable market headwinds amid growing investor fears regarding artificial intelligence disruption.
The broader equity pullback is also raising concerns for Bitcoin (BTC), which has closely tracked software stocks.
Why Are Software Stocks Down?
According to the Global Markets Investor, the iShares Expanded Tech-Software Sector ETF (IGV) has fallen 15% in February alone, putting it on pace for its worst monthly performance since 2008. The ETF is now testing its April 2025 lows and sits roughly 35% below its peak.
“Software stocks are having their WORST month since the Great Financial Crisis,” the post read.
Artificial intelligence sits at the center of the recent drawdown, with investors selling shares of companies perceived as vulnerable to disruption by advancing AI tools. Two major developments in recent days have accelerated the downturn.
On February 20, Anthropic introduced “Claude Code Security,” a new capability embedded within Claude Code. The tool scans codebases for security vulnerabilities and recommends targeted patches for human review, aiming to detect and fix issues that traditional security tools may overlook.
The announcement triggered an immediate reaction across cybersecurity stocks. According to The Kobeissi Letter, CrowdStrike erased $20 billion in market value within two trading sessions. Furthermore, IBM shares fell more than 10%.
“The software selloff continues, w/cybersecurity stocks particularly hard hit following the release of Anthropic’s Claude Code Security due to fears that this code-focused tool will change the industry. This indicates that there is nowhere to hide when it comes to software stocks. Even the Goldman Sachs basket of supposedly AI-immune software stocks has come under heavy pressure recently,” said Holger Zschaepitz, Senior Editor at the Economic and Financial desk of the German daily Die Welt and its Sunday edition Welt am Sonntag.
Pressure intensified again on Monday after Citrini Research published a report. The report presents a hypothetical scenario set in June 2028 in which AI automation drives higher corporate profits.
At the same time, it models significant disruption to white-collar employment, weaker consumer demand, rising credit stress, and structural economic challenges.
“What follows is a scenario, not a prediction. The sole intent of this piece is modeling a scenario that’s been relatively underexplored. Hopefully, reading this leaves you more prepared for potential left tail risks as AI makes the economy increasingly weird,” the report read.
Following the report’s release, shares of delivery, payments, and software companies moved lower.
Rising Tech Volatility Tightens Grip on Bitcoin
The impact is not confined to traditional equity markets. Grayscale observed that Bitcoin’s price action closely mirrored US software stocks during the latest wave of selling.
Several market participants have highlighted the correlation between US software stocks and Bitcoin. This suggests that, rather than behaving as a hedge, Bitcoin has at times traded like a high-beta extension of the tech sector.
Thus, if software stocks continue to weaken, Bitcoin may also remain under pressure. Prolonged weakness in high-growth equities can contribute to tighter financial conditions through wealth effects, higher equity risk premia, increased volatility, and systematic deleveraging across high-beta assets, including cryptocurrencies.
However, a divergence remains possible. If investors begin to view Bitcoin as a monetary hedge against structural AI-driven labor disruption, currency debasement, or policy responses such as aggressive stimulus, its correlation with software equities could weaken.
Taylor Frankie Paul Shares She’s ‘Struggling’ With Mental Health
Will the latest reforms to England’s schools and special educational needs support deliver? Experts react
Wordle Review No. 1,709 and Today’s Wordle #1711 Headlines
-
Video4 days agoXRP News: XRP Just Entered a New Phase (Almost Nobody Noticed)
-
Fashion4 days agoWeekend Open Thread: Boden – Corporette.com
-
Politics2 days agoBaftas 2026: Awards Nominations, Presenters And Performers
-
Sports17 hours agoWomen’s college basketball rankings: Iowa reenters top 10, Auriemma makes history
-
Politics18 hours agoNick Reiner Enters Plea In Deaths Of Parents Rob And Michele
-
Business6 days agoInfosys Limited (INFY) Discusses Tech Transitions and the Unique Aspects of the AI Era Transcript
-
Entertainment6 days agoKunal Nayyar’s Secret Acts Of Kindness Sparks Online Discussion
-
Tech6 days agoRetro Rover: LT6502 Laptop Packs 8-Bit Power On The Go
-
Sports5 days agoClearing the boundary, crossing into history: J&K end 67-year wait, enter maiden Ranji Trophy final | Cricket News
-
Business2 days agoMattel’s American Girl brand turns 40, dolls enter a new era
-
Crypto World4 hours agoXRP price enters “dead zone” as Binance leverage hits lows
-
Business2 days agoLaw enforcement kills armed man seeking to enter Trump’s Mar-a-Lago resort, officials say
-
Entertainment6 days agoDolores Catania Blasts Rob Rausch For Turning On ‘Housewives’ On ‘Traitors’
-
NewsBeat1 day ago‘Hourly’ method from gastroenterologist ‘helps reduce air travel bloating’
-
Business6 days agoTesla avoids California suspension after ending ‘autopilot’ marketing
-
Tech2 days agoAnthropic-Backed Group Enters NY-12 AI PAC Fight
-
NewsBeat2 days agoArmed man killed after entering secure perimeter of Mar-a-Lago, Secret Service says
-
Politics2 days agoMaine has a long track record of electing moderates. Enter Graham Platner.
-
Crypto World6 days agoWLFI Crypto Surges Toward $0.12 as Whale Buys $2.75M Before Trump-Linked Forum
-
Crypto World5 days ago83% of Altcoins Enter Bear Trend as Liquidity Crunch Tightens Grip on Crypto Market