Crypto World
Trump MAGA statue has strange crypto backstory
A 15-foot-tall statue of former President Donald Trump, cast in bronze and gilded in gold leaf, has a home: a 7,000-pound pedestal at one of Trump’s golf resorts.
But this monument, dubbed “Don Colossus,” is not just a tribute to the 34-felony-count president. According to the New York Times, it’s at the heart of a bizarre cryptocurrency venture that’s seen a rollercoaster of financial hopes, legal disputes, and strange alliances — and it may just be the wildest moneymaking scheme of the Trump era.
Summary
- A 15-foot statue of Trump was used to promote the struggling PATRIOT memecoin, which lost over 90% of its value shortly after its launch.
- The project faced delays, infighting, and a legal dispute with sculptor Alan Cottrill, who claimed he was owed $75,000 for intellectual property rights, stalling the statue’s public debut.
- Despite the coin’s failure, the project continues with plans for an official unveiling at Trump’s Doral golf resort.
The statue was funded by cryptocurrency investors who paid $300,000 to commission a sculptor to create it as a homage to Trump. It was then used to promote PATRIOT, a memecoin with little function beyond speculation, designed to capitalize on MAGA hype.
The coin went on sale in late 2024, briefly spiking in value as Trump made bold promises about turning the U.S. into the “crypto capital of the planet.” But as with many memecoin ventures, the excitement didn’t last.
PATRIOT’s price plummeted, losing over 90% of its value within months, marred by delays and infighting among the investors. The statue, initially planned for a grand unveiling, became a symbol of the volatile and often dubious nature of memecoins, which are known for their reliance on viral trends and celebrity endorsements.
However, its sheer size and golden sheen have continued to draw attention, and it has remained the centerpiece of a marketing campaign designed to revive the struggling cryptocurrency.
The project’s backers, including crypto developers and right-wing activists, used social media to promote the statue, hoping to gain enough internet buzz to revive the coin’s value.
Official Trump ‘trumps’ Patriot
While the statue was being built, it encountered multiple setbacks, including a clash with Ohio-based sculptor Alan Cottrill, who claimed he was owed $75,000 for intellectual property rights. The dispute over the use of his design for marketing purposes led to a bitter standoff, with Cottrill threatening to withhold the statue until he was fully compensated. Despite these tensions, the statue’s construction proceeded, and a concrete-and-stainless-steel pedestal was installed at Trump’s golf complex in January 2026.
Though the Trump family publicly distanced itself from the coin, Trump promoted the project, including a link shared to Breitbart News, and kept the spotlight on PATRIOT.
His own coin, Official Trump (TRUMP), launched shortly before the PATRIOT unveiling, further complicating the situation and leading to a drop in interest in the competing crypto token. The timing couldn’t have been worse, as the price of PATRIOT tanked just as Trump’s official token took off.
The PATRIOT saga, though financially rocky, continues to capture the public’s imagination. The statue, intended as a marketing stunt for the coin, is now poised for an official unveiling in Doral, Florida.
Trump has reportedly expressed interest in attending the event, though no official date has been set.
In the meantime, Cottrill is still waiting for full payment for his work, while the investors continue to promote the project online, hoping the statue’s golden finish will spark renewed interest.
Despite the setbacks, the statue stands as a symbol of one of the stranger intersections between politics, crypto, and celebrity culture. The backers of PATRIOT have insisted that the project wasn’t about getting rich — it was about building a “people’s crypto token” that would celebrate Trump and his supporters.
As of now, it seems more like a monument to memecoins.
Cathie Wood’s Ark Invest kept buying into the crypto slump, adding to positions tied to digital assets as Bitcoin steadied in the mid $70,000s and sentiment stayed fragile.
Trade disclosures showed the firm’s ETFs bought about $3.25M of Bitmine Immersion Technologies on Tuesday, adding exposure to a stock that has tracked the broader slide in crypto-linked names.
The firm also added roughly $2.4M of Circle Internet Group through its funds, according to the same filings.
In addition, Ark picked up about $3.5M of Bullish, and it bought about $630,606 of Coinbase.
Ark Steps Up Buying As Bitcoin Slips And Risk Appetite Weakens
The purchases landed in a market still shaped by deleveraging and shaky risk appetite. Bitcoin had slipped below $80,000 earlier in the week, and the pullback kept pressure on crypto-related equities as investors reassessed how much risk they wanted to carry.
Ark’s Tuesday trades followed a heavier round of buying on Monday, when the firm disclosed about $24.8M of added exposure across several crypto-exposed names, with Robinhood and Bitmine among the biggest adds.
— Cryptonews.com (@cryptonews) February 3, 2026
@CathieDWood’s ARK Invest added ~$24.8M in crypto stocks despite market weakness, boosting exposure to @RobinhoodApp, @circle, Coinbase, and @BitMNR as $BTC dipped under $80,000#CathieWood #CryptoStocks #BTChttps://t.co/wCzlPlJH86
That earlier filing included roughly 235,077 shares of Robinhood valued at about $21.1M, alongside 274,358 shares of Bitmine worth roughly $6.2M, based on the disclosed figures.
Long-Term Crypto Thesis Drives Ark’s Buy-The-Dip Strategy
The buying fits Ark’s long-running view that steep drawdowns can create entry points in public markets linked to crypto infrastructure, trading and stablecoins, especially when liquidity thins and volatility shakes out fast money.
In its Big Ideas 2026 report, Ark laid out the upside it still sees in the sector. The firm said the market “could grow at an annual rate of ~61% to $28 trillion in 2030”.
The firm also expects Bitcoin to dominate that mix. “We believe Bitcoin could account for 70% of the market,” it said, with the remainder led by smart contract networks such as Ethereum and Solana.
The post Cathie Wood’s Ark Invest Leans Into Crypto Dip With Fresh Bitmine And Circle Purchases appeared first on Cryptonews.
Bitcoin (BTC) is trying to hold steady at $76,273 after dropping 3% in the past 24 hours, as the market reacts to a sharp increase in volatility. Even with the recent dip, spot Bitcoin ETFs saw $562 million in new investments as buyers took advantage of lower prices, showing that large institutional investors remain active.
Daily trading volume has reached $67.8 billion, setting up a contest between traders betting against Bitcoin and companies looking to buy more.
LSE’s New King: SWC Becomes Britain’s Largest Bitcoin Holder
This week, The Smarter Web Company (SWC) made its official debut on the Main Market of the London Stock Exchange, marking a significant moment for UK finance. Now the largest publicly listed Bitcoin holder in Britain, the company’s treasury has 2,674 BTC, making it 29th in the world among public companies.
CEO Andrew Webley aims for the company to join the FTSE 250 by 2026, highlighting a major move toward corporate Bitcoin adoption in the UK.
ETF Warriors: The $562 Million “Dip Buy”
After four days in a row of withdrawals spot Bitcoin ETFs had a robust comeback on Monday bringing in $562 million in new investments. This shows that some investors are “buying the dip” as Bitcoin recovers from weekend weakness partially offsetting last week’s massive $1.5 billion sell-off.
Institutional Conviction: Analysts note that Bitcoin is currently trading below the ETF average cost basis of $84,000, which is acting as a magnetic support zone for major funds.
Recovery Rally: The recovery from weekend lows below $75,000 back toward the $79,000 mark helped reignite demand, though macro uncertainty around US monetary policy remains a looming headwind.
The Gold Token Surge: A $6 Billion Market Test
The market for digital gold tokens such as PAX Gold and Tether Gold has grown four times larger since late 2024.
Flight to Safety: As spot gold hit a record $5,594.82, tokenized gold demand surged, though a recent historic one-day decline in precious metals is putting these assets to the test.
Custody Concerns: Experts warn that extreme price swings could trigger a rush for physical gold, raising questions about audits and actual ownership in the digital space.
Bitcoin (BTC/USD) Technical Analysis: Bulls Defend the $74,000 “Line in the Sand”
Bitcoin price prediction is currently navigating a period of stabilization after a “liquidity hunt” pushed prices to a nine-month low of $74,500. Before the correction, BTC was coiled in a massive symmetrical triangle. While the breach below $80,000 weakened the immediate bullish case, the long-term resolution target remains a psychological $100,000.
The Daily RSI has dipped into the 28–30 range, which typically signals an oversold market ripe for a reversal. A bullish Stochastic crossover further suggests that selling exhaustion is setting in.
Immediate structural support is anchored at $74,420–$74,666, while a reclaim of the $78,400 (0.236 Fibo) level is necessary to retest the $84,000 overhead resistance.
Conclusion
The current market setup points to a healthy reset of over-leveraged positions. With the Smarter Web Company leading corporate adoption on the LSE and ETF inflows picking up again, the main reasons for a bullish outlook remain strong. If buyers can keep Bitcoin above $74,000, reaching $100,000 may be more achievable than it appears.
Bitcoin Hyper: The Next Evolution of BTC on Solana?
d for security, Bitcoin Hyper adds what it always lacked: Solana-level speed. The result: lightning-fast, low-cost smart contracts, decentralized apps, and even meme coin creation, all secured by Bitcoin.
Audited by Consult, the project emphasizes trust and scalability as adoption builds. And momentum is already strong. The presale has surpassed $31.2 million, with tokens priced at just $0.013675 before the next increase.
As Bitcoin activity climbs and demand for efficient BTC-based apps rises, Bitcoin Hyper stands out as the bridge uniting two of crypto’s biggest ecosystems. If Bitcoin built the foundation, Bitcoin Hyper could make it fast, flexible, and fun again.
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The post Bitcoin Price Prediction: Is the $100K “Moon Mission” Back on After the $74K Flush? appeared first on Cryptonews.
Kraken’s parent company, Payward, reported 2025 revenue of $2.2 billion, a 33% increase from the prior year, driven by a combination of higher trading activity and strong performance from newly integrated businesses. For the year, total transaction volumes reached $2 billion, up 34% year over year, signaling robust activity across the platform as it leveraged a strategic wave of acquisitions to broaden its revenue base. Payward described the mix of income as well balanced, with about 47% derived from trading revenue and the remaining 53% from asset-based and other sources. The results come as the group advances toward a potential public listing after filing confidentially for an IPO in November, underscoring a broader push to diversify beyond traditional exchange services into broader financial technology offerings.
Key takeaways
- 2025 revenue rose to $2.2 billion, up 33% from $1.6 billion in 2024, reflecting gains across trading and asset-backed activities.
- Total transaction volumes climbed to $2 billion, a 34% year-over-year increase, signaling stronger platform usage.
- Revenue mix remained balanced: roughly 47% from trading activity and 53% from asset-based and other revenues, indicating diversified income streams.
- Strategic acquisitions—NinjaTrader, Breakout, Small Exchange, Capitalise.ai, and Backed—expanded product offerings and supported a 119% rise in daily average revenue trades.
- Assets on the platform grew to $48.2 billion, with funded accounts increasing 50% to 5.7 million, highlighting growing user engagement and custody depth.
Sentiment: Bullish
Market context: The results align with a crypto ecosystem where exchange activity remains sensitive to macro trends and regulatory developments, while diversified product lines help firms capture a broader share of trading and asset-management activity. Payward’s performance underscores a shift toward modular offerings and cross-segment efficiency within a consolidating market.
Why it matters
The 2025 performance marks a notable inflection for Payward as it monetizes scale and breadth. By deriving nearly half of its revenue from trading while more than half comes from asset-based and ancillary services, the group appears to be hedging against volatility in a single segment. This balance matters for users and investors who seek a platform capable of weathering cyclical swings in crypto markets while continuing to generate recurring income from tokenized assets, derivatives, and automated trading tools.
Central to this shift is Payward’s active pursuit of product-level specialization. The company has drawn inspiration from tech giants in how it segments its offerings so each product tackles a distinct customer segment. This approach—designed to boost usage by making each product a tailored solution—addresses both retail and institutional needs, from advanced traders seeking derivative exposure to users exploring tokenized stock concepts. The acquisitions carried out over 2025 are the operational backbone of that strategy, providing Payward with more tools to engage users across geographies and risk appetites.
The 119% increase in daily average revenue trades underscores the impact of integrating platforms like NinjaTrader and Breakout, which broaden trading capabilities and expand the client base. While NinjaTrader’s ecosystem emphasizes futures and active trading, Breakout adds a proprietary-trading edge that helps Payward capture higher-margin activity. Together, these assets contribute to a more resilient revenue engine by feeding more orders through Payward’s systems and enabling a wider set of use cases for clients. The full effect of these acquisitions—along with Small Exchange and Capitalise.ai—appears in the asset mix and in the expansion of both trading and automation-enabled workflows on the platform.
Beyond trading desks, Payward’s foray into tokenized assets and AI-driven automation signals a broader strategic convergence. The purchase of Backed—a company active in tokenized stocks and the backbone of the xStocks platform—signals Payward’s intent to offer institutional-grade access to tokenized equity products. This kind of diversification aligns with industry trends toward hybrid models that blend traditional financial instruments with digital representations, expanding the addressable market for crypto-enabled finance. The company’s asset base, reported at $48.2 billion, and its burgeoning funded account base—5.7 million—indicate a growing footprint that could attract further liquidity and potential listing interest from a broader investor audience.
In addition to the earnings figures, Payward’s leadership emphasized a long-term, risk-adjusted throughput strategy over chasing short-term cyclic metrics. Arjun Sethi, Payward’s co-CEO, described a path focused on compound efficiency across a single system rather than pursuing a handful of standalone products. This philosophy suggests a framework where future growth hinges on the integration of existing platforms, the cross-pollination of product capabilities, and the sustained scaling of operations across multiple asset classes and jurisdictions. The company’s public-listing ambitions, having progressed to a confidential IPO filing in November, indicate that Payward seeks to translate its internal efficiencies into external value for a wider pool of investors while continuing to evolve its platform economics.
The disclosed results also reflect a broader industry pattern where sizable crypto-focused platforms are layering revenue streams to reduce reliance on a single line item, all while expanding product suites to attract diverse participant cohorts. The highlighted acquisitions demonstrate Payward’s appetite for strategic bets that can be integrated into a unified operating model, enabling cadence and scale without sacrificing the quality of user experience.
Looking ahead, Payward’s management continues to frame growth as a systemic improvement—an emphasis on operational efficiency, cross-product usage, and geographic diversification rather than chasing isolated performance metrics. The confidential IPO filing from November remains a key milestone, offering a framework for how Payward intends to position its diversified platform to investors. The earnings narrative, underpinned by rising assets and a widening product footprint, suggests a company that is betting on a longer horizon where liquidity, product breadth, and disciplined integration drive sustainable returns rather than a single blockbuster quarter.
What to watch next
- Progress and timing of the confidential IPO filing: any updates on the path to a public listing and the anticipated markets open date.
- Performance of key acquisitions (NinjaTrader, Breakout, Small Exchange, Capitalise.ai, Backed) and their contribution to trading volumes and revenue mix in 2026.
- Trends in assets under custody and funded accounts, with any new geography or client segments adding material volume.
- Regulatory developments and macro conditions that could influence liquidity, market structure, or crypto-adjacent financial products.
Sources & verification
- Payward/ Kraken 2025 financials report, detailing revenue, volumes, and the asset mix.
- Confidential IPO filing status and coverage in November, outlining the company’s listing trajectory.
- Breakout acquisition and related product diversification mentioned in Kraken’s filings.
- Small Exchange and Capitalise.ai acquisitions and their impact on the platform’s trading and automation capabilities.
- Backed and tokenization-related developments within the Payward ecosystem and their role in the xStocks framework.
The Flare blockchain has introduced lending and borrowing for XRP-linked assets through an integration with Morpho, a crypto lending protocol that runs across multiple Ethereum compatible chains.
The update lets users lend and borrow with FXRP, a version of XRP designed for use on Flare, the team behind the blockchain said on Monday. Flare pitched the move as a step toward giving XRP holders more ways to earn yield and use their tokens beyond holding or trading.
For years, XRP has had fewer decentralized finance (DeFi) options than tokens built on smart contract networks. Flare has been trying to change that by building tools that let XRP be used in onchain apps while keeping the original XRP on the XRP Ledger.
FXRP holders can now deposit their tokens to earn interest, or use FXRP as collateral to borrow other assets such as stablecoins.
Flare said these positions can also be combined with other features on the network, including staking and yield products, for users who want more active strategies.
Morpho works differently from older lending apps that mix many assets into one shared pool. Each lending market is set up with one collateral asset and one borrowed asset, and the rules for that market are set when it is created. This structure is meant to keep problems in one market from spilling into others.
The first access point is Mystic, a separate app that shows the available vaults and lets users deposit funds or borrow against collateral. Flare said more ways to access the markets may be added later, including through Morpho’s main app.
Some vaults are being offered by independent curators, including Clearstar. These vaults include options backed by FXRP, Flare’s own token FLR and USDT0.
The rollout is part of a broader push by several networks to bring lending and borrowing to large token communities that have mostly stayed outside of onchain finance.
Read More: XRP Ledger Upgrade Lays Groundwork for Lending, Tokenization Expansion
Bitcoin slipped 3% on Wednesday to $76,000 as investors carried a sour mood into the Asia session after a tech-led sell-off hit US benchmarks and encouraged a shift toward more economically sensitive industries.
In early trade, Japan and Australia opened lower, and futures pointed to losses in Hong Kong.
Market snapshot
- Bitcoin: $78,719, up 2%
- Ether: $2,334, up 1.8%
- XRP: $1.61, up 0.5%
- Total crypto market cap: $2.72 trillion, up 2.6%
Software Rout Drags US Indexes Lower As Rotation Away From Big Tech Deepens
Overnight, falling software names pulled down the S&P 500 and the Nasdaq 100, even as most stocks in the S&P 500 finished higher and value shares continued to outpace growth in 2026 amid a broader rotation away from the “Magnificent Seven”.
The damage started with legal software and data services. Experian, London Stock Exchange Group and Thomson Reuters tumbled, and the selling spread across the wider software sector, sending the iShares Expanded Tech-Software Sector ETF down about 4.5%.
The slide picked up pace late in the session after Advanced Micro Devices sank in after-hours trade on a disappointing sales forecast. Traders also stayed cautious ahead of earnings from Alphabet and Amazon later this week, as investors demanded clearer payoffs from costly AI spending.
Crypto Markets Mirror Global Risk Aversion As Bitcoin Slips
Crypto traders watched the same risk-off undercurrent spill into digital assets. Bitcoin fell for a second day and extended an almost four-month slide, and investor Michael Burry warned that a drop through key thresholds could trigger cascading liquidations and wipe out value.
Tony Severino, market analyst at YouHodler, said Bitcoin remains locked in a tightening range, and he pointed to a signal building on longer timeframes.
“Bollinger Bands on the monthly chart are the tightest they have ever been, reflecting an extreme level of volatility compression,” he said. “At the same time, Bitcoin continues to trade below the monthly basis line, with only days left before a monthly close that would confirm acceptance beneath it.”
Across markets, the shared theme this week looks less about direction and more about pressure building under the surface. Currency volatility has risen. The dollar has softened.
Software Stocks Slide As AI Competition Spurs Fresh Investor Jitters
Metals have held extreme levels without a clear break, and Bitcoin has stayed stuck in one of the tightest volatility regimes in its history, conditions that tend to frustrate short-term traders while signalling markets are working off time rather than trend, he said.
On Wall Street, the focus tightened on software makers seen as vulnerable to AI-driven competition after Anthropic rolled out a legal tool for its Claude chatbot. Nvidia and Microsoft each fell almost 3% as the S&P 500 software and services index slid 3.8% for a fifth straight session.
Away from tech, pockets of the market showed more resilience. FedEx extended a record-breaking rally, and Walmart pushed past $1 trillion in market value. Palantir jumped almost 7% after strong quarterly results, while PepsiCo gained 4.9% after announcing price cuts on core brands like Lay’s and Doritos.
In other moves, oil climbed after the US Navy shot down an Iranian drone heading toward an aircraft carrier in the Arabian Sea.
Federal Reserve officials kept the rate outlook in play. Tom Barkin said policy easing has bolstered the jobs market as officials turn back to getting inflation to target, and Stephen Miran said the absence of strong price pressures means rates need to be lowered again this year.
The post Asia Market Open: Bitcoin Slips 3% To $76K As Asian Stocks Track US Tech-Led Selloff appeared first on Cryptonews.
Crypto exchange Kraken’s parent company, Payward, reported 33% revenue growth in 2025 as transaction volumes rose and the business capitalized on its acquisitions.
The company’s revenues rose to $2.2 billion last year, up from $1.6 billion in 2024 due to “broad-based performance across trading and asset-based businesses,” with total transaction volumes rising 34% over the year to $2 billion, Kraken co-CEO Arjun Sethi said in a report on Tuesday.
He added that revenues were “well balanced,” with around 47% coming from trading-based revenue and 53% from asset-based and other revenues.
The report comes as investors closely watch out for Kraken’s public launch, after the company confidentially filed for an initial public offering in November.
Acquisitions helped diversify income
Sethi said Payward’s acquisitions in 2025 helped boost its revenues, and it has taken inspiration from tech giants such as Meta and Amazon to separate its products to increase their usage, allowing “each product to be designed for a specific customer segment.”
Last year, Payward acquired the futures trading platform NinjaTrader, the prop trading firm Breakout, the derivatives trading platform Small Exchange and the trading automation software Capitalise.ai.
Payward also acquired Backed last month, a company operating in the tokenized stocks space that backs the popular xStocks platform.
Sethi said these acquisitions, especially NinjaTrader and Breakout, led to a 119% boost in daily average revenue trades.
Related: Galaxy Digital reports $482M net loss in Q4 2025
The report added that assets on the platform saw an 11% increase to $48.2 billion, while funded accounts grew 50% to 5.7 million, he added.
Sethi said that looking ahead, Payward’s focus is “not on maximizing any single metric in isolation. It is on maximizing long-run, risk-adjusted throughput across a growing set of asset classes and geographies.”
“The company’s strategy is not driven by adding standalone products or chasing short-term cycles. It is driven by compounding efficiency across a single system,” he added.
Magazine: Sharplink exec shocked by level of BTC and ETH ETF hodling — Joseph Chalom
The crypto market held steady on Tuesday as investors bought the dip and as risky assets like stocks continued their recent rally.
Summary
- The crypto market held steady on Tuesday as the recent crash faded.
- Federal Reserve’s Stephen Miran supports more interest rate cuts this year.
- Technical analysis suggests that cryptocurrencies have further downside in the near term.
Bitcoin (BTC) price rose to $78,330, up by 5% from its lowest level this month. Other top altcoins like Ethereum (ETH), Solana (SOL), and Hyperliquid (HYPE) were in the green. The market capitalization of all tokens rose by 0.62% in the last 24 hours.
The crypto market rose as Stephen Miran, a top Federal Reserve official, insisted that the bank should deliver more interest rate cuts this year, as inflation has remained lower than expected. He supports cutting interest rates by more than 1 full point this year, saying:
“I don’t see a lot of strong supply-demand imbalances of the type that monetary policy should respond to. So I think we’re keeping rates too high, mostly because of quirks of how we measure inflation, rather than actual price pressures themselves.”
His statement came a few days after President Donald Trump nominated Kevin Warsh to become the next Federal Reserve Chairman, if confirmed by the Senate.
Warsh is widely seen as an interest-rate hawk who has opposed quantitative easing. He has also criticized the bank for holding interest rates low for long.
The crypto market also steadied as talks between the United States and Iran began, reducing the risk of war in the region.
Data compiled by Polymarket shows that the possibility of the US striking Iran has dropped from over 80% last week to 60% today. This trend explains why crude oil prices have dropped in the past few days, with Brent moving from $70 last week to $66.50 today.
Technical analysis suggests the crypto market is still at risk of a dive
A closer look at longer-term charts shows that the crypto crash has more room to go. The daily timeframe chart shows that the market capitalization of all coins remains below the 50-day and 100-day Exponential Moving Averages.
This chart also shows that it remains below the crucial support level at $2.7 trillion, its lowest level in November last year.
It is all slowly forming a bearish pennant pattern, which consists of a vertical line and a symmetrical triangle. Therefore, the most likely scenario is that it resumes the downtrend in the coming days or weeks.
French prosecutors raided X’s Paris headquarters on Tuesday as part of a widening investigation into alleged child sexual abuse imagery, AI-generated deepfakes, and Holocaust denial on the platform.
The raid, supported by Europol, marks a significant escalation in European regulators’ crackdown on Elon Musk’s social media empire. Prosecutors have summoned Musk and former CEO Linda Yaccarino for “voluntary interviews” scheduled for April 20.
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Investigation Scope
The Paris prosecutors’ cybercrime unit opened a preliminary investigation in January 2025, initially focusing on allegations that biased algorithms on X distorted automated data-processing systems. The probe expanded significantly after Musk’s AI chatbot Grok generated content that allegedly denied the Holocaust and produced sexually explicit deepfakes.
Charges under investigation include complicity in possessing and spreading child sexual abuse imagery and sexually explicit deepfakes. Prosecutors are also probing denial of crimes against humanity and manipulation of automated data processing systems as part of an organized group.
The prosecutors’ office announced the ongoing searches on X itself. It then declared it was leaving the platform, calling on followers to join it on other social media services.
Grok at the Center of Controversy
The xAI-developed chatbot Grok sparked global outrage last month. Its “spicy mode” generated tens of thousands of sexualized nonconsensual deepfake images in response to user requests.
The chatbot also posted Holocaust denial content in French. It claimed gas chambers at Auschwitz-Birkenau were designed for “disinfection with Zyklon B against typhus” rather than mass murder—language long associated with Holocaust deniers.
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While Grok later reversed itself and acknowledged the error, the damage was done. Malaysia and Indonesia became the first countries to block Grok entirely, with Malaysia announcing legal action against X and xAI.
X Fires Back
In a statement posted on its own platform, X condemned the raid as “an abusive act of law enforcement theater designed to achieve illegitimate political objectives rather than advance legitimate law enforcement goals rooted in the fair and impartial administration of justice.”
The company denied all allegations, characterizing the French action as politically motivated censorship.
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Durov Weighs In
Telegram founder Pavel Durov, who himself faces similar charges in France after his August 2024 arrest, defended X and attacked French authorities.
“French police is currently raiding X’s office in Paris. France is the only country in the world that is criminally persecuting all social networks that give people some degree of freedom (Telegram, X, TikTok…). Don’t be mistaken: this is not a free country,” Durov wrote on X.
In a follow-up comment, he added: “Weaponising child protection to legitimise censorship and mass surveillance is disgusting. These people will stop at nothing.”
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Mixed Reactions
Durov’s characterization drew both support and pushback online. Some users echoed his framing, with one calling France’s approach a “Digital Autocracy starter pack” and describing Durov’s arrest as “the warning” of things to come.
Others urged nuance. “Platforms like Telegram and X aren’t just ‘freedom tools’. They can be used to spread hate, coordinate violence, and destabilise societies,” one user wrote. “Reducing it to ‘free country vs not free’ misses a lot of the reality on both sides.”
Regulatory Pressure Mounts
France is not alone in scrutinizing Musk’s platforms. Britain’s Information Commissioner’s Office opened formal investigations into how X and xAI handled personal data when developing Grok, while UK media regulator Ofcom continues a separate probe that could take months.
The European Union launched its own investigation last month following the deepfake incident and has already fined X €120 million for violations of digital regulations, including deceptive blue-checkmark practices.
The legal pressure comes as Musk consolidates his tech holdings. SpaceX announced Monday that it acquired xAI in a deal that would combine Grok, X, and the satellite communications company Starlink under one corporate umbrella—a move that could complicate regulatory oversight across multiple jurisdictions.
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The Senate Agriculture Committee is releasing its part of a major crypto bill today, ahead of a January 27 markup. The bill explains how the U.S. plans to divide crypto regulation between the CFTC and the SEC.
Under this proposal, the Commodity Futures Trading Commission (CFTC) would oversee most spot crypto markets. It classifies “digital commodities” as blockchain-based assets used for payments, governance, or network fees. These assets would not be treated as securities unless they are sold as investment contracts.
This gives crypto firms clearer rules and reduces SEC control over non-security tokens. The Senate Banking Committee has a different approach. Its draft gives the SEC more power by introducing “ancillary assets.” The SEC would decide case by case whether these assets are securities.
While Banking stalls, US Senate Agriculture Committee is expected to release new crypto bill text today, with a vote expected next week. pic.twitter.com/23OvzFr5hc
— mracrypto (@MRACRYPTO_) January 21, 2026
This approach creates less certainty and limits automatic CFTC authority, relying on coordination between committees to settle disputes. The Agriculture Committee’s bill also creates new CFTC registration categories for crypto exchanges, brokers, and dealers. The Banking Committee’s version does not create new CFTC roles and instead tries to fit crypto into existing securities laws.
Senate Crypto Bill Gains Bipartisan Support
The bill has bipartisan support. In July 2025, the House passed the CLARITY Act with backing from both parties. In the Senate, lawmakers from both sides continue talks. However, progress slowed after the Banking Committee delayed its January 15 markup. Coinbase later pulled its support over concerns about stablecoin yields and privacy. White House crypto advisor Patrick Witt warned that delays could lead to stricter rules later.
Industry reactions are mixed. Ripple CEO Brad Garlinghouse praised the bill as a positive step. SEC Chair Paul Atkins also supports bipartisan crypto legislation to provide long-term regulatory stability.
The Agriculture Committee will hold its markup on January 27 at 3:00 PM ET. Lawmakers may propose changes before voting to move the bill forward. Key sections on DeFi, developers, and anti-money laundering are still drafts, leaving room for changes.
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TLDR
- Bernstein reaffirmed an Outperform rating on ServiceNow with a $219 price target, calling it a “discount large cap growth” opportunity trading at 6 times revenue
- Cantor Fitzgerald maintained an Overweight rating with a $200 price target while Stifel cut its target from $200 to $180 but kept its Buy rating
- ServiceNow’s Q4 revenue jumped 20.5% to $3.57 billion with adjusted EPS rising 26% to $0.92, beating analyst expectations
- The company’s AI product Now Assist reached $600 million in annual contract value and is targeting over $1 billion by end of 2026
- ServiceNow forecast Q1 subscription revenue growth of 21.5% and full-year subscription revenue between $15.53 billion and $15.57 billion
ServiceNow shares dropped in after-hours trading following its January 29 earnings report. But Wall Street analysts aren’t backing away from the stock.
The selloff came despite strong fourth-quarter results that beat expectations. Revenue climbed 20.5% year over year to $3.57 billion. Adjusted earnings per share jumped 26% to $0.92, topping the analyst consensus of $0.88 on revenue of $3.53 billion.
Subscription revenue rose 21% to $3.47 billion. Professional services revenue increased 13% to $102 million.
Multiple firms maintained positive ratings on the stock after the earnings release. On January 29, Cantor Fitzgerald kept its Overweight rating with a $200 price target.
Stifel reduced its price target from $200 to $180 but maintained a Buy rating. Analyst Brad Reback noted the quarter “played out largely as expected” with an organic upside of around 100 basis points. He mentioned that fourth-quarter checks were “somewhat mixed.”
The firm called ServiceNow “an interesting value” at current levels. The stock trades at about 6 times revenue and 16 times free cash flow. Stifel pointed out that a broader shift in investor sentiment would be needed for a re-rating.
AI Products Drive Growth
ServiceNow’s AI suite Now Assist hit a $600 million annual contract value milestone. The company expects this to grow to over $1 billion by the end of 2026.
The company is acquiring AI cybersecurity firms Armis and Veza. These deals aim to tie security and AI capabilities together.
Remaining performance obligations increased 26.5% to $28.2 billion. Current RPO rose 25% to $12.85 billion. This metric combines deferred revenue and backlog, serving as an indicator of future revenue growth.
Ratings Pile Up After Market Selloff
Bernstein stepped in on January 30 with an Outperform rating and $219 price target. This came after a sharp market selloff.
The firm called ServiceNow a “discount large cap growth” opportunity. It noted the stock looks cheap compared to other large software companies with more than $50 billion in market cap when examining three-year growth against price-to-free-cash-flow.
Bernstein said the premium typically given to growth stocks has “collapsed further.” This makes ServiceNow’s valuation gap even wider when compared to other large-cap growth software stocks.
For the first quarter, ServiceNow forecast subscription revenue growth of 21.5% to between $3.650 billion and $3.655 billion. The company expects current RPO to increase 22.5%.
Full-year subscription revenue is projected at $15.53 billion to $15.57 billion. This represents growth of 20.5% to 21%.
CEO comments on the earnings call addressed AI concerns directly. He stated that AI will not “replace enterprise orchestration” and called it a huge opportunity. The company’s unified data system and structured workflows position it as an ideal environment for AI agents.
ServiceNow shares currently trade at $117.56 with a market cap of $123 billion. The stock has a 52-week range of $113.13 to $211.48.
ServiceNow’s AI Control Tower platform is positioning the company as an orchestration platform for agentic AI while its Now Assist product line continues expanding its annual contract value.
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