Crypto World
JP Morgan Strategist Prefers Bitcoin to Gold Long Term
While crypto natives lament Bitcoin’s underperformance compared to precious metals, institutional traders are eyeing the digital asset.
On one of BTC’s worst days in recent memory, JP Morgan’s quantitative strategist Nikolaos Panigirtzoglou is taking the contrarian approach and says that not only is Bitcoin undervalued, but it looks “even more attractive compared to gold.”
Panigitzoglou says that liquidations have been “more modest” despite the asset’s poor recent performance, and highlighted that the bitcoin-to-gold volatility ratio is at a “record low” in a recent investor research note, according to Yahoo Finance.
However, BTC is currently down 13.3% today compared to gold’s 3% decline, so that ratio gap is closing quickly.
Bitcoin’s stark underperformance relative to gold continues a trend that began when the new U.S. administration took office in January 2025. Gold is up 80% since Trump entered office, while BTC is down 37% over the same period.
While retail crypto traders have struggled to reconcile gold’s outperformance, Bitcoin analyst Willy Woo cites several reasons, including quantum computing threats and the marginal buyers in each asset class.
On Jan. 25, Woo said, “It’s really hard to convince sovereigns and fiduciary institutions to buy a nascent asset like BTC with 17 years of history (which is less than a retail home mortgage). Then think about their perspective on quantum uncertainty over the next 5-15 years.”
The “Aave Will Win” governance proposal has successfully passed the Temp Check vote, garnering 52.58% support, and is now progressing to the Aave Request for Final Comment (ARFC) stage, marking a significant step for Aave’s future development.
In a closely watched governance decision for one of DeFi’s largest protocols, the “Aave Will Win” framework has passed its initial Temp Check vote, moving the proposal forward in Aave DAO’s multi-stage governance process.
The off-chain Snapshot vote, designed to gauge community sentiment ahead of more binding stages, closed with approximately 52.58% in favor, 42% against, and roughly 5% abstaining. This approval clears the first formal hurdle and advances the framework to the Aave Request for Final Comment (ARFC) phase, where structural and implementation details will be refined based on community feedback before any on-chain vote occurs.
A Token-Centric Model
The “Aave Will Win” framework proposes a fundamental shift in how Aave’s economic value is distributed and how Aave Labs is funded: it would direct 100% of product revenue generated by Aave products to the AAVE token and DAO treasury, aligning incentives between token holders and the protocol’s builders.
Stani Kulechov, founder of Aave and long-time steward of the protocol, confirmed the result on social media shortly after the vote closed, framing the outcome as a step toward a fully token-centric model for the ecosystem.
“Temp Check for the Aave Will Win proposal has passed,” Kulechov wrote. “This brings Aave Labs closer to a fully token-centric model, directing 100% of product revenue to the $AAVE token,” he wrote, underscoring the strategic shift.”
Kulechov followed up with additional remarks reaffirming the protocol’s direction and the DAO’s role in shaping the final structure as the proposal progresses.
Governance Debate and Split Vote
Despite the ultimate approval, the vote exposed ongoing tensions within Aave’s governance community. The margin was relatively narrow, and earlier debate on the forums and in governance reports highlighted deep divisions over funding levels, the size of token allocations to Aave Labs, and how decentralized authority should evolve.
Following the vote, Marc Zeller, founder of the Aave Chan Initiative, published a detailed post-mortem analyzing the Temp Check results, noting that when excluding votes from several large Aave Labs–linked addresses, the broader community actually tilted against the proposal.
Zeller’s analysis argued that while many delegates support the general direction of “Aave Will Win,” concerns remain about fiscal guardrails, capital deployment phases, and independence from Labs’ influence.
What Comes Next
With the Temp Check cleared, the Aave Will Win proposal now enters the ARFC stage, where community feedback will be folded into a more detailed governance proposal that may ultimately be put to an on-chain Aave Improvement Proposal (AIP) vote. Only through an AIP vote would any commitments become binding.
If the framework ultimately garners approval in that final vote, it could reshape Aave’s economic and governance model, formalizing revenue alignment with token holders and setting V4 as the long-term technical foundation for future growth.
With the proposal’s advancement, the focus now shifts to the ARFC stage, where further community input will shape the final outcome. The proposal’s progress is a testament to the robust governance framework that empowers Aave’s community to steer its future direction.
This article was generated with the assistance of AI workflows.
Michael Saylor’s Strategy, the world’s largest public holder of Bitcoin, completed its 101st Bitcoin purchase, pushing its total holdings above 720,000 BTC.
The company acquired 3,015 Bitcoin (BTC) for $204.1 million last week, according to a US Securities and Exchange Commission filing on Monday.
The average buy price of its latest purchase was $67,700 per BTC, marking another purchase well below the company’s average acquisition price of $75,985.
The purchase brings its holdings to 720,737 BTC, acquired for a total cost of about $54.8 billion, the company disclosed.
Another buy below Strategy’s cost basis
The latest buy is one of a small number of Strategy purchases made below the company’s average cost basis, according to data compiled by SaylorTracker, a website that tracks Strategy’s bitcoin acquisitions.
The first such purchase occurred on Feb. 9, when the company bought 1,142 BTC as market prices dipped below $76,051 during the week. Strategy reported the average acquisition price of that batch at $78,815, above the market price at the time.
Strategy encountered a similar situation around 2022-2023, when BTC price dipped below its cost basis of around $30,600. The company completed a total of seven purchases of 28,560 BTC during that below-cost period.
MSTR shares rise modestly while Bitcoin trades near $65,800
Strategy (MSTR) shares saw some upward momentum last week, rising from around $125 on Monday to nearly $130 by Friday, according to TradingView.
Bitcoin, however, remained largely flat over the same period. The crypto asset started the week near $65,000, briefly surged above $69,000 on Wednesday, and dipped below $64,000 before stabilizing. At the time of publication, Bitcoin was trading at $65,834, according to TradingView.
Related: Strategy yield wrapper lands in Europe as 21Shares lists STRC ETP
The news came after Strategy chairman Saylor announced on Sunday that the company is raising the dividend on its STRC preferred stock, also known as “Stretch,” to 11.50% for March 2026, from the previous 11.25%.
The capital raised through the stock can be used for corporate purposes, including potential Bitcoin acquisitions.
Magazine: 6 massive challenges Bitcoin faces on the road to quantum security
TLDR
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Natural gas prices across Europe experienced dramatic increases following disruptions to LNG transportation routes through the Strait of Hormuz linked to Iranian conflict.
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Production facilities operated by QatarEnergy were forced offline following drone strikes, creating immediate global LNG supply constraints.
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Benchmark Dutch TTF gas contracts climbed by up to 49% in intraday trading amid mounting supply anxieties.
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LNG imports have become critical for Europe’s energy security after the continent pivoted away from Russian gas in 2022.
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Market experts caution that extended supply disruptions could drive European gas prices significantly higher while straining worldwide energy availability.
Natural gas markets in Europe experienced substantial price increases as Middle Eastern geopolitical tensions threatened critical energy transportation corridors. Trading activity reflected heightened concerns over liquefied natural gas delivery reliability.
During early trading hours, European gas valuations jumped approximately 25%. The Dutch TTF benchmark contract subsequently accelerated, posting gains approaching 49% at peak levels.
Price movements came as regional military tensions escalated dramatically. Disruptions connected to Iranian military activities have impacted maritime operations through the Strait of Hormuz, one of the world’s most vital energy chokepoints.
This narrow waterway facilitates substantial volumes of international LNG trade. Vessel movements have declined considerably as security threats mounted.
Following drone strikes on its infrastructure, QatarEnergy suspended operations at natural gas production sites. The government-controlled operator supplies approximately 20% of worldwide LNG exports.
European Vulnerability to Supply Shocks
European nations face significant vulnerability to LNG supply interruptions. The continent dramatically reduced Russian pipeline gas dependence following 2022’s energy upheaval.
Qatari sources now provide substantial volumes of Europe’s LNG requirements. Numerous cargoes transit the Strait of Hormuz en route to European import facilities.
Storage levels decline throughout winter heating demand periods. European nations must consequently increase LNG purchases to replenish stockpiles.
Market analysts drew comparisons to circumstances observed during 2022’s crisis. That episode produced industrial closures and accelerated inflation throughout European economies.
Goldman Sachs projected that a one-month suspension of LNG transits through the Strait would likely more than double European gas valuations. Benchmark prices could reach €74 per megawatt hour in such circumstances.
Should disruptions extend beyond two months, prices might exceed €100 per megawatt hour. Historical data shows such elevated pricing previously forced substantial demand destruction across the continent.
Broader Energy Market Impacts
Commodity markets swiftly incorporated supply risk assessments. Oil prices advanced as market participants factored in potential regional disruption scenarios.
Approximately 80 million tonnes of LNG flow through the Strait of Hormuz annually. This volume constitutes roughly 19% of total global supply.
Crude oil movements through this strategic waterway similarly underpin global energy systems. Roughly 20% of worldwide petroleum production traverses these waters.
Reports emerged over the weekend of three oil tankers sustaining damage in regional waters. Shipping uncertainties have amplified price fluctuations.
Transportation costs for crude carriers have escalated sharply in recent trading periods. Certain Gulf-to-Asia shipping routes have experienced threefold rate increases over thirty days.
Asian LNG markets confront comparable price pressure risks. Interconnected global gas trading means supply disruptions in one region ripple across others.
Domestic U.S. natural gas pricing has demonstrated relatively muted responses thus far. Export infrastructure operates near maximum capacity, constraining the ability to rapidly boost outbound volumes.
European market participants continue monitoring LNG supply chain resilience closely. Trading sentiment hinges on whether Strait of Hormuz shipping operations normalize within upcoming weeks.
TLDR
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Block’s price target was lifted to $78 by Cantor Fitzgerald, up from $70, with the firm keeping its Overweight stance.
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Fiscal 2026 projections indicate gross profit reaching approximately $12.2 billion with EPS around $3.66.
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The fintech company surpassed Q4 expectations for both gross profit and adjusted earnings metrics.
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A major restructuring will see Block eliminate approximately 40% of its staff to focus on AI integration.
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Wall Street analysts anticipate that expense reductions will enhance profitability and drive sustainable growth.
Following impressive quarterly results and forward-looking guidance, Block (XYZ) secured an upgraded price target from Cantor Fitzgerald. The investment firm elevated its target from $70 to $78 while continuing to rate the stock as Overweight.
This reassessment comes after Block delivered fourth-quarter numbers that exceeded Wall Street’s projections. The payment technology firm beat consensus estimates on both gross profit and adjusted EPS.
Block’s diluted earnings came in at $2.10 per share for the trailing twelve-month period. The company’s gross profit figure also topped analyst predictions, prompting several firms to revise their outlooks upward.
Following management’s fiscal 2026 outlook, Cantor adjusted its financial models accordingly. Block anticipates generating approximately $12.2 billion in gross profit alongside adjusted operating income near $3.2 billion.
For the full fiscal 2026 year, adjusted EPS is expected to reach roughly $3.66. The company’s first-quarter outlook calls for gross profit around $2.8 billion with adjusted EPS approximately $0.67.
Wall Street Perspective and Stock Metrics
The revised $78 target from Cantor reflects a 16x multiple applied to its calendar 2027 EPS projection of $4.85. This represents an upgrade from the prior methodology using a 14x multiple on more conservative earnings estimates.
Block’s stock price has jumped approximately 25.5% in the last week alone. Trading recently around $63.70, the company commands a market cap approaching $38.2 billion.
Block trades at approximately 30 times earnings currently. Analysts noted the valuation looks reasonable when measured against anticipated earnings expansion and discounted cash flow analysis.
Additional Wall Street firms have reaffirmed bullish stances following the earnings report and restructuring reveal. UBS, RBC Capital, and Bernstein each maintained Buy or Outperform designations with targets spanning the mid-$80s to $90 range.
Truist kept its Hold recommendation with a $72 target. Raymond James reduced its objective to $79 while retaining an Outperform view, pointing to potential execution challenges.
Staff Reductions and AI Transformation
Block disclosed plans to eliminate roughly 40% of its employee base in a significant restructuring. Leadership characterized this as a strategic realignment designed to integrate artificial intelligence throughout the business.
Company executives indicated the workforce adjustments will result in a more streamlined cost structure and improved organizational efficiency. Analysts project these modifications could bolster operating margins going forward.
Block highlighted that its Cash App platform delivered substantial contributions to recent gross profit expansion. The Cash App ecosystem remains central to the company’s revenue generation and profitability.
Leadership noted that updated fiscal guidance incorporates strong business momentum from the end of Q4 2025. The revised forecasts include elevated projections across gross profit, operating income, and per-share earnings.
Block’s stock has experienced significant price swings over the trailing year but surged dramatically after the restructuring disclosure. Market participants are closely tracking the implementation of cost initiatives and achievement of updated financial targets.
Key takeaways
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After paying a $45-million settlement in 2023 and exiting the market, Nexo has reentered the US with a redesigned product model focused on regulatory alignment rather than direct yield issuance.
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The 2023 crackdown centered on unregistered securities concerns. The SEC alleged that Nexo’s Earn Interest Product functioned as an unregistered security, raising questions about retail yield marketing, transparency, custody practices and counterparty risk.
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The new model relies on licensed US partners. Instead of directly offering yield products, Nexo now operates through regulated US intermediaries, including licensed entities and, where required, SEC-registered investment advisers.
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The Bakkt partnership anchors the compliance strategy. By collaborating with Bakkt, a publicly traded US crypto firm with regulatory licenses, Nexo shifts from a direct issuer model to a partner-delivered framework embedded within regulated infrastructure.
Three years after departing the US and paying a $45-million settlement to federal and state regulators, Nexo has formally reentered the US market. But this is not a straightforward relaunch. Rather, it is a structural overhaul.
What changed is not merely the timing or the political climate; it is how the product is designed, delivered and regulated.
This article examines why Nexo exited in 2023, what regulators objected to and how its 2026 return is structured differently. It also explores what US users should watch before engaging with crypto-backed loans or yield-style products.
The 2023 crackdown: Why Nexo left the US
Nexo, co-founded by former Bulgarian lawmaker Antoni Trenchev, developed much of its initial US footprint through its Earn Interest Product (EIP), which enabled users to deposit crypto and earn yield.
In January 2023, the US Securities and Exchange Commission (SEC) accused Nexo of offering and selling unregistered securities through this product. The SEC contended that the EIP met the legal definition of a security and, therefore, required proper registration.
Nexo consented to a settlement:
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It paid a total of $45 million in fines to the SEC and various state regulators.
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It neither admitted nor denied the allegations.
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It ceased offering the product to US investors.
Soon after, Nexo withdrew from the US retail market.
Why regulators targeted “earn” products
The enforcement action stemmed from a wider post-2022 crypto lending fallout. Major failures across the lending industry had revealed liquidity mismatches, rehypothecation risks and retail exposure to opaque yield structures.
Regulators were particularly concerned about:
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The promotion of yield products to retail investors
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Transparency regarding how returns were generated
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Custody practices and credit counterparty risks
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Whether these offerings functioned as investment contracts.
The crackdown extended beyond Nexo and signaled a broader regulatory overhaul for centralized crypto yield offerings.
Did you know? Borrowing against volatile assets is not a new concept. Traditional stock margin lending has existed for decades, but crypto’s 24/7 trading makes liquidation mechanics far more dynamic and automated.
What changed in 2026
Nexo’s 2026 comeback rests on a core claim: The product is now structured differently and provided through licensed US partners.
Instead of directly delivering yield-like products to US investors under its former approach, Nexo states that its updated structure:
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Relies on properly licensed US partners
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Incorporates an SEC-registered investment adviser when required
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Has phased out the product addressed in the 2023 order.
This difference is significant: Rather than operating as an independent provider of an earn program, Nexo is now positioned within a regulated infrastructure framework.
According to Nexo, it will offer crypto-backed loans and yield-generating products. These services will be provided through licensed US partners.
Crypto-backed loans differ from the unsecured lending models that failed in 2022. Users deposit digital assets as collateral and borrow against them. Liquidation occurs if the collateral falls below set loan-to-value thresholds.
The Bakkt partnership: Compliance by design
A key factor in the relaunch is Nexo’s collaboration with Bakkt, a publicly traded US crypto firm.
Bakkt provides regulated trading infrastructure and holds multiple US licenses. By channeling US operations through regulated entities, Nexo is effectively moving from a direct issuer model to a partner-delivered model.
In practical terms, this means:
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Trading, custody or advisory services could reside with regulated entities.
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Product elements may be distributed across licensed intermediaries.
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Supervision may occur across multiple regulatory layers.
This framework is designed to address the regulatory objections that led to the 2023 settlement.
Did you know? Unlike banks, most crypto lending platforms do not benefit from federal deposit insurance, meaning customer protections depend heavily on custody structures and legal agreements rather than government backstops.
A shifting regulatory landscape
Timing is a factor in Nexo’s return to the US. Under President Donald Trump’s administration, the SEC has terminated or scaled back multiple crypto enforcement actions. The enforcement environment has shifted from an intense crackdown to a period of readjustment.
For instance, the SEC moved to drop a lawsuit involving the Gemini Earn program following investor recoveries. This does not indicate that crypto lending issues are entirely resolved, but it points to a more adaptable regulatory stance than in early 2023.
Nevertheless, the US regulatory framework remains fragmented. Federal agencies, state securities regulators, money transmitter statutes and consumer lending rules may all apply depending on the structure.
What US users need to watch
Even if products are offered through regulated intermediaries, users should assess:
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Who is your legal counterparty? Is the agreement with Nexo, with a US-licensed entity or with multiple entities?
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Where does custody sit? Are assets held by a qualified custodian? Under which regulatory regime?
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How are returns generated? Are yields derived from lending, staking, market-making or other activities?
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What are the liquidation terms for crypto-backed loans?
What is the loan-to-value (LTV) threshold?
How quickly can liquidation occur?
Are there additional fees?
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What disclosures exist? Look for:
Risk disclosures
Rehypothecation clauses
Conflict-of-interest statements
Jurisdiction clauses.
“Compliant structure” does not equal “risk-free product.”
Did you know? Money transmitter licensing in the US is state-based, which means a crypto company may need approvals in dozens of jurisdictions. This is one reason partner-led models are gaining popularity.
Why this comeback matters for the industry
Nexo’s return could indicate a wider transformation in US crypto lending:
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Phase 1 (Pre-2023): Direct-to-consumer yield models with minimal registration
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Phase 2 (2023-2025): Regulatory enforcement, withdrawals and reorganization
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Phase 3 (2026 onward): Partner-led models employing licensed intermediaries and segregated functions.
If this framework proves viable, other international crypto companies may reenter the US through comparable compliance layers instead of direct issuance models.
The real shift: It is about the wrapper, not just the product
The primary takeaway from Nexo’s return is structural.
The fundamental economic idea of generating yield on digital assets or borrowing against crypto remains intact. What has evolved is the regulatory framework surrounding it.
Rather than pushing the limits of securities law, the updated model integrates into licensed infrastructure.
Whether this method satisfies regulators over the long term will hinge on:
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Disclosure quality
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Risk management practices
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Transparency of revenue sources
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Ongoing federal and state coordination.
For now, Nexo’s comeback reflects a more prudent crypto industry that recognizes that in the US, structure dictates survival.
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Crypto outflows from Iran’s largest exchange jumped 700% within minutes of the first U.S.-Israeli airstrikes on Tehran, blockchain analytics firm Elliptic said in a Monday blog post.
Elliptic said transaction volumes leaving Nobitex spiked almost immediately after the strikes, suggesting a rush to move funds offshore. Initial blockchain tracing indicates the crypto was sent to overseas exchanges that have historically received significant inflows from Iran.
The activity “potentially represents capital flight from Iran that bypasses the traditional banking system,” according to Dr. Tom Robinson, Elliptic’s co-founder and chief scientist.
Over the weekend, coordinated U.S. and Israeli airstrikes struck multiple targets in Iran, killing Supreme Leader Ayatollah Ali Khamenei and escalating a wider Middle East conflict. The attacks stoked market volatility as investors priced in potential disruptions to oil supplies through the strategic Strait of Hormuz, sending global crude prices sharply higher and triggering broad sell-offs in equities and safe-haven buying across assets.
Nobitex allows users to convert Iranian rials into crypto and withdraw funds to external wallets, offering a route around traditional banking channels.
The exchange processed $7.2 billion in crypto transactions in 2025 and claims more than 11 million users, making it central to Iran’s digital asset ecosystem, Robinson said.
Elliptic has previously linked the exchange to IRGC-aligned financial activity and reported in January that Iran’s central bank appeared to use Nobitex in efforts to support the weakening rial.
Iran’s crypto ecosystem
Previous reports have detailed Iran’s growing use of cryptocurrencies as a hedge against a weakening rial and as a potential workaround to international sanctions, with U.S. authorities probing whether digital-asset platforms have enabled state-linked actors to move funds and access hard currency outside the traditional banking system. Blockchain research cited in those reports estimates that Iran-linked crypto activity has reached into the billions of dollars annually, spanning retail users as well as, according to officials, sanctioned entities.
Robinson also flagged additional surges in Iranian crypto outflows earlier this year. The largest came on Jan. 9, following widespread anti-regime demonstrations and a subsequent government-imposed internet blackout.
Two additional surges followed U.S. sanctions announcements targeting Iranian actors, the report said, suggesting crypto may be used to mitigate the impact of sanctions.
Bitcoin and major altcoins dropped sharply in the immediate aftermath of the strikes, with BTC briefly falling below $64,000 before recovering to the mid-$60,000s, underscoring crypto’s sensitivity to geopolitical tensions. Ether (ETH) and other tokens also declined, though several remained above pre-strike levels, pointing to a relatively swift rebound after the initial sell-off.
The world’s largest cryptocurrency was over 2% lower at publication time, trading around $65,500. Ether, the second-largest crypto by market cap, was 3.8% lower at around $1,930.
Read more: Iran crisis puts the regime’s $7.8 billion crypto shadow economy in spotlight
CoinDesk Indices presents its daily market update, highlighting the performance of leaders and laggards in the CoinDesk 20 Index.
The CoinDesk 20 is currently trading at 1907.12, up 0.3% (+5.99) since 4 p.m. ET on Friday.
Eight of the 20 assets are trading higher.
Leaders: NEAR (+12.4%) and SOL (+2.1%).
Laggards: DOT (-7.3%) and BCH (-4.5%).
The CoinDesk 20 is a broad-based index traded on multiple platforms in several regions globally.
Strategy Inc has purchased 3,015 Bitcoin for about $204 million, lifting its total holdings to 720,737 BTC despite ongoing market weakness.
Summary
- Strategy bought 3,015 BTC at an average price of $67,700.
- Total holdings now stand at 720,737 BTC worth about $54.77B.
- The purchase was funded mainly through ATM share sales.
Strategy has added more Bitcoin (BTC) to its balance sheet after spending over $200 million on a fresh purchase, continuing its long-running effort to build one of the largest corporate crypto treasuries in the world.
On March 2, Strategy Inc revealed in a regulatory filing that it bought 3,015 BTC between February 23 and March 1 at an average price of $67,700 per coin, taking total holdings to 720,737 BTC.
Funding the latest Bitcoin purchase
The company spent about $204.1 million on the acquisition, using mainly proceeds from its at-the-market share sales and preferred stock offerings. During the same period, Strategy raised roughly $237.1 million, leaving part of the funds as a cash reserve.
With this purchase, Strategy’s total Bitcoin acquisition cost has reached around $54.77 billion. Its average cost basis now stands at about $75,985 per BTC.
At current market prices, the company’s Bitcoin holdings are valued at roughly $47 billion to $47.5 billion. This places Strategy at an estimated unrealized loss of between $7 billion and $9 billion, depending on price movements.
Strategy’s Class A shares trade on the Nasdaq Global Select Market under the ticker MSTR. The stock is down about 50% over the past year and 18% year-to-date, tracking Bitcoin’s recent decline.
The latest deal marks the company’s tenth straight weekly Bitcoin purchase. Its approach remains focused on raising capital and converting it directly into BTC to increase per-share exposure.
Financial pressure and long-term strategy
While Strategy continues to buy, the weak market has weighed on its financial results. Since early 2025, the company has used fair-value accounting for digital assets, which requires marking Bitcoin holdings to market.
In the fourth quarter of 2025, Strategy reported a $12.4 billion net loss, driven largely by unrealized crypto losses. Its core software business remains small, making overall performance closely tied to Bitcoin prices.
To limit dilution from issuing new common shares, the company has relied more on preferred stock. In February, it raised the dividend rate on its Variable Rate Series A preferred shares to 11.50%.
Executive chairman Michael Saylor has continued to support the company’s long-term holding strategy, arguing that Bitcoin should be treated as a primary reserve asset.
Analysts remain divided. Supporters say buying during downturns could pay off if prices recover above the company’s cost basis. Critics warn that extended weakness could deepen losses and strain investor confidence.
In a provocative spoof set in the 2030s, Energym imagines a world where automation has displaced 80% of workers, turning a gym into a symbolic power plant for AI systems. The satire arrived as a reflection of real-world shifts, where automation accelerates and investors wrestle with what AI may mean for employment, productivity, and growth. In late February 2026, Block announced it would cut more than 4,000 roles as part of a broader move to streamline operations and deploy more intelligence tools across teams. Separate labor-market data showed cooling demand for office roles, with finance and insurance openings dipping to 134 per month in December 2025—roughly half the level from the previous year. These signals fed a mood of caution about the pace of technological disruption and its implications for wages, markets, and policy. The rapid deployment of AI tools—often produced with little human coding—spurred entrepreneurs to imagine new ownership models that could empower individuals rather than central platforms. Against this backdrop, crypto-native visions that center user control over AI agents began to surface as potential antidotes to the Energym scenario, offering a different path for value creation in an era of automation.
Key takeaways
- Block’s decision to cut over 4,000 jobs signals a broader push toward AI-enabled lean operations, aligning with a trend where firms favor automation to reduce labor costs.
- Labor data from December 2025 shows cooling demand for office roles in the US, with finance and insurance openings down to 134 per month—50% lower than the prior year.
- A Citrini Research scenario, framed as a hypothetical, depicted AI agents triggering cascading layoffs, eroding wages, and a potential market downturn later this decade, intensifying investor jitters in software and payments stocks.
- Crypto projects that emphasize ownership of AI agents—such as Valory and Olas Network—pose an alternative to centralized AI infrastructure, aiming to redistribute control and incentives away from monolithic platforms.
- Market chatter tied to AI policy and macro expectations has fed a narrative that Bitcoin tailwinds could emerge if AI-driven policies pave easier monetary conditions, a theme echoed in industry analyses.
Sentiment: Bearish
Price impact: Negative. The sell-off in software and payments stocks followed the Citrini scenario, with several large names retreating in a single session.
Market context: The era of AI-led disruption is broadening beyond labs into the software, payments, and financial services ecosystems, influencing risk appetite, liquidity conditions, and policy debates. Investors are weighing how quickly automation could erode demand for human labor and how policy responses might shape pricing, capital allocation, and market resilience.
Why it matters
The Energym satire captures a core debate about AI’s economic structure: will automation simply replace tasks, or will it redefine value capture by enabling new forms of ownership and collaboration? The Block restructuring underscores how firms are recalibrating headcount and capabilities in a world where code generation and decision automation can outpace human labor in many roles. As the US labor market data show a cooling in openings for office-based work, the risk that automation could compress wages or slow cycle growth becomes more tangible for investors looking at software, fintech, and adjacent sectors.
For the crypto community, the conversation shifts from dystopian fiction to practical experimentation. Valory, a crypto venture focused on autonomous agents, and the Olas Network, which contemplates co-owned AI systems, argue that giving people direct ownership and governance over AI agents could prevent the Energym scenario from taking hold. In this view, tokenized ownership and on-chain governance align incentives with human labor and oversight, offering a model where AI serves as a collaborative partner rather than a substitute for labor. The discussion around “AI agents” also intersects with broader debates about platform power, data ownership, and labor rights in an increasingly automated economy.
At the same time, the broader market backdrop remains uneasy. A 7,000-word scenario from Citrini Research, pitched as a scenario rather than a forecast, highlighted potential risks: AI agents, cascading layoffs, shrinking wages, and a deep market downturn by the end of the decade. The reactions in software and payments stocks—Uber, American Express, and Mastercard—reflected a re-pricing of risk as investors reassessed how swiftly AI could reshape demand for human labor. These dynamics have fed headlines about tailwinds for certain crypto narratives, including Bitcoin, in environments where policy responses or macro shifts could influence liquidity and risk sentiment. For those watching the relationship between traditional finance and crypto, the message is clear: the pace and direction of AI-driven disruption will influence both corporate strategy and the incentives that shape decentralized tech ecosystems.
Within this context, some observers point to Ethereum and other ecosystems as proving grounds for new tooling and governance models. The idea of AI-assisted software development—sometimes described as “vibe coding”—has been discussed as a way to accelerate roadmaps while maintaining human oversight. If this trend accelerates, it could alter how quickly blockchain platforms implement upgrades and how communities plan for scaling. The broader question is whether AI will concentrate power in a handful of labs and cloud providers, or whether crypto-native approaches can distribute control to developers and users, creating more resilient networks.
What to watch next
- Block’s upcoming quarterly results and any guidance on further efficiency initiatives or hiring plans.
- New data on US labor demand, especially for office-based and finance-related roles, to gauge the persistence of the cooling trend.
- Any announcements from crypto projects focused on AI agents about governance models, ownership structures, or real-world deployments.
- Regulatory developments related to AI ownership, accountability, and the integration of autonomous systems into financial services and markets.
- Industry analyses on whether Bitcoin (CRYPTO: BTC) and other crypto assets could benefit from shifts in monetary-policy expectations tied to AI-driven productivity and policy adaptation.
Sources & verification
- Block announces cutting more than 4,000 roles as part of a lean AI-driven restructuring.
- US Bureau of Labor Statistics data showing December 2025 finance and insurance job openings at 134 per month, about 50% lower than the prior year.
- Citrini Research’s 7,000-word scenario exploring AI agents, layoffs, wages, and a potential mid-to-late-2020s market downturn.
- Coverage of stock movements in Uber, American Express, and Mastercard following AI-valuation reassessments.
- NYDIG’s discussion of Bitcoin tailwinds if AI prompts easier monetary policy.
Market reaction and key details
The Energym concept arrived as a provocative mirror to the real trajectory of AI deployment in business. The outreach and engagement around the clip—featuring AI-aged figures resembling Elon Musk, Sam Altman, and Jeff Bezos—captured how quickly technology narratives can morph into cultural commentary. The Block layoff announcement and the December 2025 BLS data reinforce a pattern: enterprises are trying to squeeze more productivity out of fewer humans by leaning into AI automation, a move that can compress labor costs and recalibrate growth expectations in the near term. In this environment, investors are weighing the implications for both tech equities and crypto markets as policy and macro conditions shift in response to productivity gains, wage dynamics, and inflation trajectories.
From a crypto perspective, the discussion shifts toward resilience and ownership. Projects like Valory and Olas Network are pitched as options to decentralize control over AI agents, potentially aligning incentives across developers, users, and founders rather than concentrating decision power in a few large platforms. If such models gain traction, they could influence the design of autonomous tooling, smart contracts, and governance structures—areas where blockchain-based coordination could offer more robust alignment between human values and automated processes. The debate about whether AI’s benefits will be distributed or captured by a few centralized ecosystems remains central to both policy debates and market expectations.
In the near term, the sentiment remains cautious. The Citrini scenario and the stock-market reactions it helped catalyze remind investors that even with AI’s promised gains, the path to stable returns is nuanced. The possibility of softer wage growth, more automation-driven productivity, and a shift in labor-market dynamics could reshape both traditional and crypto markets. In this environment, the question for readers is not only how fast AI will replace tasks, but how quickly communities and ecosystems can adapt—whether through crypto-native ownership models, more transparent governance, or policy frameworks that encourage responsible innovation. The dialogue between dystopian fiction and practical innovation is ongoing, and it will likely influence both investor behavior and the development of next-generation AI tools within decentralized networks.
What to watch next
- Block’s next earnings call and any updates to staffing or automation initiatives.
- US labor-market data releases that illuminate the durability of the December 2025 trend.
- Announcements from crypto projects pursuing AI-agent ownership and on-chain governance experiments.
- Regulatory developments shaping AI accountability, data rights, and platform liability in 2026.
Sources & verification
- Block cuts 4,000 jobs in AI-driven restructuring — Cointelegraph article and related reporting.
- US Bureau of Labor Statistics December 2025 finance and insurance openings data (JTU5200JOL).
- Citrini Research’s AI-agent scenario report and market implications.
- Reporting on Uber, American Express, Mastercard stock movements tied to AI expectations.
- NYDIG analysis suggesting Bitcoin tailwinds under certain monetary-policy scenarios.
What the Energym narrative means for users and builders
The Energym confrontation with automation is not merely a cautionary tale; it’s a prompt for builders to consider how technology can be deployed in ways that preserve agency and opportunity. For users, it underscores the importance of understanding who controls the tools that shape daily life and work. For investors and builders in the crypto space, it highlights opportunities to experiment with ownership, governance, and incentive structures that can align human labor with automated capabilities rather than replace it. The integration of AI with blockchain-based coordination could yield new business models that distribute value more broadly while maintaining accountability—an evolution that might help bridge the gap between existential concerns and practical, verifiable improvements in productivity and quality of life.
How this shapes the future of automation and finance
Looking ahead, the interplay between AI-enabled efficiency and the demand for human labor will shape both policy and market structure. The tension between centralized AI platforms and decentralized, user-owned AI agents will likely influence how capital, data, and governance flow through the tech economy. As firms continue to experiment with automation, the crypto sector could offer alternative paths for value creation and risk sharing, potentially leading to more resilient systems that reflect broad community interests rather than narrow corporate imperatives. The Energym debate thus serves as a barometer for how society negotiates the benefits of AI with the fundamental need for meaningful work, fair compensation, and transparent governance.
Disclosure: The views and opinions expressed here belong solely to the author and do not represent the views and opinions of crypto.news’ editorial.
Every major wave of political repression in the last two decades has followed the same playbook. First, control the media. Then, monitor communication. Finally, isolate people from one another. The tools change, but the vulnerability remains constant: centralized communication systems create centralized points of failure. And in an age where messaging apps have become the nervous system of civil society, that failure is no longer theoretical; it is lethal.
Summary
- Encryption is not enough: Centralized messengers still expose metadata — contact graphs, timestamps, and location data — which authorities can weaponize without ever reading message content.
- Centralization creates single points of failure: Servers can be subpoenaed, hacked, or shut down, turning communication infrastructure into a surveillance map during political crises.
- Resilience requires decentralization: Peer-to-peer and metadata-minimizing systems remove subpoena targets and reduce network visibility, making repression materially harder.
While debates around digital freedom often focus on encryption, the real danger lies elsewhere. Who controls the servers? Who can access the metadata? Who can be compelled to reveal communication patterns? History has already answered these questions.
When communication becomes a weapon
Governments have long understood that silencing dissent doesn’t always require censorship of content. Sometimes, simply knowing who is talking to whom is enough. Very often, detained demonstrators reported interrogators confronting them with printed Telegram conversations, contact graphs, and phone records. In some documented cases, authorities reactivated Telegram accounts of detainees while they were imprisoned in order to monitor incoming messages and identify associates. Even more chilling, accounts belonging to deceased protesters were reportedly brought back online to map activist networks.
Journalists all over the world face imprisonment, or worse, if their communication trails are exposed. Many rely on familiar tools like WhatsApp, Telegram, or even Signal, believing encryption alone protects them. It doesn’t.
Even when message content is encrypted, centralized messengers still generate metadata: who contacted whom, when, how often, and from where. That information is routinely subpoenaed, hacked, or quietly handed over under legal or extralegal pressure. Metadata has led directly to arrests, disappearances, and worse.
In many environments around the world, the existence of communication becomes incriminating.
The forgotten lesson of past uprisings
This is not a new realization. Each generation confronting repression relearns the same lesson: centralized communication fails precisely when it is needed most.
One of the more recent cases has been the Gen Z–led protest in Nepal in 2025, where the government imposed sweeping bans on major social media and messaging platforms, including Facebook, WhatsApp, and YouTube, in an attempt to suppress mobilization and control information flow. In response, protesters adapted quickly. Decentralized and offline-capable messaging tools such as Bitchat, which rely on peer-to-peer connectivity rather than centralized servers, saw increased use as activists sought ways to communicate beyond state-controlled infrastructure.
Without a central service to shut down or monitor, these tools allowed information to continue circulating even as mainstream platforms went dark. The episode demonstrated a recurring pattern: when centralized messengers become pressure points, people are forced to seek alternatives that are resilient by design.
Why encryption alone isn’t enough
The tech industry has trained users to equate privacy with encryption. This framing is incomplete. Encryption protects message content, but it does nothing to prevent:
- Network mapping through contact graphs;
- Identification of organizers through communication frequency;
- Retroactive analysis of relationships after device seizure;
- Legal or covert access to server logs.
For journalists, this means sources can be exposed even if messages remain unread. Communication patterns can be subpoenaed from centralized servers, revealing relationships that no encryption key can hide.
For activists, metadata allows authorities to dismantle movements without ever reading a single message. Leaders, coordinators, and connectors stand out clearly once networks are visualized.
For human rights defenders documenting abuses, centralized storage creates a single breach point where evidence and identities can be compromised simultaneously.
In these contexts, conversation history itself becomes a liability.
The case for decentralized messengers
A decentralized messenger changes the threat model entirely. Without a central server, there is no database to subpoena, hack, or quietly access. Without centralized metadata, communication patterns cannot be easily reconstructed. Without persistent identities tied to servers, networks become opaque rather than legible to surveillance.
For journalists, this means sources can communicate without leaving a trail that can later be uncovered. Not just encrypted content, but hidden relationships.
For activists in repressive states, it means coordination tools that cannot be mapped through metadata analysis. When no central authority sees the whole network, mass arrests become harder to orchestrate.
For human rights defenders, it allows evidence to be shared without revealing who collected it or how it moved through the network.
These systems also address a second, often overlooked threat: coercion after arrest. Features such as self-deleting messages, ephemeral identities, and emergency data deletion ensure there is no historical record to weaponize during interrogation, even if a device is seized or an account compromised. In places where interrogators demand passwords at gunpoint, privacy must be designed for failure.
Convenience has a cost
Centralized messengers dominate because they are easy. They sync instantly, store everything forever, and abstract complexity away from the user. But convenience is not neutral.
Every centralized design decision, such as account recovery, cloud backup,s and contact discovery, creates another surface for abuse. In stable democracies, this is mostly invisible. In authoritarian states, it is catastrophic.
The uncomfortable truth is that many of today’s most popular “secure” messengers were never designed for adversarial environments. They assume good-faith legal systems, independent courts, and limits on state power. Millions of people do not live under those assumptions.
Rebuilding the right to communicate
Free expression is meaningless without the ability to communicate safely. Safe communication cannot depend on centralized intermediaries whose incentives, jurisdictions, or survival may change overnight.
Decentralized messengers are not a silver bullet. They require new mental models, new UX compromises, and new infrastructure. But they align technology with the realities faced by journalists, activists, and dissidents, not with the comfort of Silicon Valley.
The question is no longer whether decentralized communication is necessary. The question is how many more examples we need before we treat it as essential.
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