Another week down, another deep dive into the crypto rabbit hole.
U.S. regulators are playing nice with crypto (thanks, Trump), Michael Saylor is still stacking BTC like there’s no tomorrow, and the crypto market? Well, it’s doing its usual routine of ups and downs.
But let’s skip the small talk. Here are this week’s biggest winners and losers in crypto
Top Gainers and Losers of the week
Top gainers of the week
- XDC Network (XDC): The price increased by 11.11% over the last 7 days to reach $0.1282.
- Worldcoin (WLD): $WLD increased by 8.46% over the last 7 days to reach $2.32.
- Hyperliquid (HYPE): The price of $HYPE increased by 5.02% over the last 7 days to reach $24.36.
Top losers of the week
- OFFICIAL TRUMP (TRUMP): The price decreased by 13.46% over the last 7 days to reach $37.09.
- ai16z (AI16Z): $AI16Z price dropped by 9.70% over the last 7 days to reach $1.01.
- Jupiter (JUP): The price of $JUP lost by 9.47% over the last 7 days to reach $0.7968.
US District Court Reverses Sanctions Imposed on Tornado Cash
A U.S. court has revoked sanctions that had been pressed against Tornado Cash, marking a major win for innovative privacy-focused crypto technology.
The decision, issued by the U.S. District Court for the Western District of Texas, reverses the Treasury’s Office of Foreign Assets Control (OFAC) ban on the crypto mixer.
OFAC imposed sanctions on Tornado Cash in August 2022, claiming it facilitated money laundering for the North Korean Lazarus Group, a group that allegedly used the protocol for laundering over $455 million in stolen crypto.
According to Coinbase Chief Legal Officer Paul Grewal, the FDIC discouraged banks from working with crypto firms, calling it Operation Chokepoint 2.0. He urged the next administration to reverse it, adding that blocking open-source tech over a few bad actors isn’t what Congress approved.
No one wants criminals to use crypto protocols, but blocking open source technology entirely because a small portion of users are bad actors is not what Congress authorized. These sanctions stretched Treasury’s authority beyond recognition, and the Fifth Circuit agreed. 3/6
— paulgrewal.eth (@iampaulgrewal) November 26, 2024
Tornado Cash developer Alexey Pertsev was arrested and convicted in the Netherlands to over five years for laundering $1.2 billion in illicit funds.
However Pertsev still remains in custody despite the court ruling. He argued in his trial that developers should not be held responsible for users’ illegal actions. However, the court ruled that he and other co-founders could have implemented measures to prevent misuse.
Donald Trump Rescinds Biden-era Executive Order on AI safety
Former President Donald Trump has revoked an executive order on AI safety originally issued during Joe Biden’s presidency.
The order was created to ensure ethical development and usage of generative AI.
In the directive issued by Biden, companies were required to conduct safety tests on advanced AI models before deployment. It also called for transparency, urging firms to disclose risks and ensure compliance with federal guidelines.
The goal of all of these was to prevent AI misuse and uphold national security. Trump’s decision removes these regulations, citing concerns over excessive government control, which could easily stifle innovative ideas.
However, there are critics who have issued warnings that eliminating these rules will easily result in unchecked AI development.
MicroStrategy Shareholders Approve Plans for More Bitcoin Purchases
MicroStrategy is doubling down on Bitcoin. The company's shareholders have approved a massive increase in the number of Class A common shares, expanding from 330 million to 10.3 billion. This move gives the company more flexibility to raise funds for additional Bitcoin purchases.
The firm, led by chairman Michael Saylor, has been aggressively acquiring Bitcoin since 2020. Its latest purchase added 11,000 BTC for approximately $1.1 billion at an average price of $101,191 per Bitcoin. As of January 20, 2025, MicroStrategy holds 461,000 BTC, acquired for roughly $29.3 billion, at an average cost of $63,610 per Bitcoin.
The company’s long-term strategy, known as the “21/21 Plan,” aims to raise $46 billion—half through equity sales and the other half through fixed-income securities—to buy even more Bitcoin. Saylor views Bitcoin as a superior asset, calling it “digital gold” and a hedge against inflation.
On the other hand, Saylor’s counterpart, Larry Fink, the CEO of BlackRock, has shifted from skepticism to becoming a major believer in Bitcoin. He now views it as a legitimate financial instrument and a hedge against currency debasement. Fink suggests that if institutional investors allocate 2% to 5% of their portfolios to Bitcoin, its price could reach $700,00.
“If you are frightened of debasement of your currency…you can have an internationally based instrument called Bitcoin….I’m a big believer…” - Larry Fink of @BlackRock pic.twitter.com/C3VJQpqTML
— Michael Saylor⚡️ (@saylor) January 22, 2025
MicroStrategy’s stock has surged over 3,000% since its Bitcoin strategy began. The company’s growing influence was recognized when it joined the Nasdaq-100 in December, placing it alongside giants like Apple and Microsoft. With this latest shareholder approval, MicroStrategy is set to further cement its position as the biggest corporate Bitcoin holder.
Solana Validators Pocket $25M Amid TRUMP and MELANIA Memecoin Frenzy
Solana's validators made a fortune as trading for TRUMP and MELANIA tokens exploded. On Jan. 20, validators earned over 87,000 SOL in fees and tips—part of a record 100,000 SOL influx. That’s nearly $25.8 million.
The surge was fueled by intense demand for TRUMP, followed by MELANIA. Traders rushed to secure their transactions, submitting 24.7 million bundles to get ahead. Solana saw 4.5 million daily active users, with 1.5 million tipping validators to speed things up.
Bundles are groups of transactions sent together for processing. Tippers—either users or bots—pay extra fees to push their transactions to the front of the line. The frenzy briefly boosted staking rewards to 7.14% annually while Solana’s inflation rate dipped below 5%.
By Wednesday, TRUMP was up 25%, trading at $42. MELANIA wasn’t so lucky, slipping to $4. The validator payday highlights just how profitable these meme coin surges can be.
Emmanuel Ekokotu
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