Kain Warwick—DeFi OG and founder of Synthetix and Infinex—is back on The Defiant Podcast with Camila Russo for a no-BS conversation at a pivotal moment: Infinex just ran its INX token sale and is heading into its TGE.
Binance pins crypto’s worst-ever liquidation day on macro risks, not exchange failure
Binance blamed the October 10 flash crash on a macro shock colliding with heavy leverage and evaporating liquidity, rather than any breakdown in its trading systems following speculative chatter on social media.
In a report released Saturday, the exchange said global markets were already under pressure following trade-war headlines when crypto markets cracked. Bitcoin and ether had rallied for months into early October, leaving traders heavily positioned and exposed.
At the time, open interest across bitcoin futures and options exceeded $100 billion, creating conditions ripe for forced deleveraging once prices started to fall, it said.
The selloff quickly fed on itself. As prices slid, market makers activated automated risk controls and reduced exposure, pulling liquidity from order books. Data cited by Binance, sourced from Kaiko, showed bid-side depth nearly vanished on several major exchanges during the peak of the move. With fewer resting orders, even small liquidations pushed prices sharply lower.
The disruption was not limited to crypto. U.S. equity markets lost an estimated $1.5 trillion that day, with the S&P 500 and Nasdaq posting their largest one-day drops in six months. Binance said roughly $150 billion in systemic liquidations occurred across global markets.
Blockchain congestion added to the strain. Ethereum gas fees spiked above 100 gwei at times, slowing transfers and limiting arbitrage between venues. With capital unable to move quickly, price gaps widened and liquidity fragmented further.
Binance incidents that occured
Binance acknowledged two platform-specific incidents during the crash but said neither caused the broader market move.
The first involved a slowdown in its internal asset-transfer system between 21:18 and 21:51 UTC, affecting transfers between spot, earn and futures accounts. Core trading systems remained operational, but some users temporarily saw zero balances displayed due to backend timeouts.
Binance said the issue stemmed from a database performance regression under surge traffic and has since been fixed. Affected users were compensated.
The second incident involved temporary index deviations for USDe, WBETH and BNSOL between 21:36 and 22:15 UTC, after most liquidations had already occurred. Binance said thin liquidity and delayed cross-venue rebalancing caused local price moves to disproportionately affect index calculations.
Methodology changes have since been implemented, and impacted users were compensated.
Binance said about 75% of the day’s liquidations occurred before the index deviations, pointing to the initial macro shock as the primary driver.
In total, the exchange said it compensated users with more than $328 million and launched additional support programs to stabilize participants affected by the crash.
Mistral AI Upgrades Vibe Coding Agent
French company Mistral AI has unveiled Mistral Vibe 2.0, a terminal native coding agent that adds a series of upgrades for developers.
Vibe 2.0 is powered by the Paris-based startup’s Devstral 2 model family and will enable users to “build, maintain and ship code faster,” according to the company.
The update, which is available through Mistral’s subscription plans as well as via pay-as-you-go access or Bring Your Own API Key, constitutes a major step forward for the firm as it underscores its position as the leading European company challenging the dominant U.S. players in AI-assisted software development.
While Vibe already utilized natural language commands, multifile orchestration, smart references and full codebase context, Mistral highlighted areas where the coding agent has been improved.
First, custom specialized sub agents can now be built and invoked on-demand for targeted tasks, with Mistral citing deployment scripts, pull request reviews and test generation as examples of what is possible.
Multichoice clarifications are also now featured. When intent is unclear or ambiguous, developers are prompted with additional options from Vibe to reduce the risk of inaccurate edits.
They will also have access to slash command skills, which enable preconfigured workflows to be loaded for common tasks such as deploying, linting or generating documents.
Finally, unified agent modes allow specific tools, permissions and behaviors to be combined, meaning developers can switch contexts without having to change tools.
In addition, Mistral says that bug fixes and improvements in the command line interface are now shipped automatically, eliminating the need for manual updates.
Vibe 2.0 is available via Mistral’s Le Chat Pro plan (currently $14.99 a month) or the more comprehensive Le Chat Team ($24.99 per month), which adds priority support.
Two different pay-as-you-go rates are available for Devstral access via API, dependent on usage, while there’s an Experiment plan available in Mistral Studio that offers free usage for testing and prototyping.
Mistral said it will also offer bespoke solutions for enterprise customers with more advanced requirements.
The release comes a week after CEO Arthur Mensch told Bloomberg at the World Economic Forum in Davos that the company hopes to surpass $1 billion in revenue this year.
By positioning itself as a European alternative to the major American frontier model providers and their Chinese challengers in a fraught geopolitical landscape, it has attracted some heavy funding — including a $2 billion Series C round led by Dutch chipmaker ASML in September of last year.
Bitcoin Options Flash Extreme Fear: Is Sub-$80K BTC Next?
Key takeaways:
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Bitcoin options show the highest level of fear in a year, as traders brace for the possibility of a deeper selloff.
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Bitcoin markets might be more stable due to high-risk leveraged positions being liquidated.
Bitcoin (BTC) underwent a sharp 10% correction between Wednesday and Thursday, retesting the $81,000 level for the first time in over two months. The move occurred as traders grew increasingly cautious following significant outflows from spot Bitcoin exchange-traded funds (ETFs), particularly as gold prices dropped 13% from their Wednesday all-time high.
The strong price changes caused traders to question the strength of the $80,000 psychological support level.
US-listed spot Bitcoin ETFs have seen $2.7 billion in net outflows since Jan. 16, representing 2.3% of total assets under management. Some market participants worry that institutional demand has stalled, while others note that gold’s 18% gain over three months may be temporarily overshadowing Bitcoin’s appeal as a store of value. Regardless of the specific catalyst for the decline, the perception of risk in the market has clearly risen.
Quantum computing threat adds to Bitcoin investor anxiety
One primary source of anxiety is the potential threat posed by quantum computing to the cryptographic methods securing blockchains. Coinbase recently formed an independent advisory board to evaluate these risks, with plans to release public research by early 2027. This initiative will operate separately from the company’s core management.
The debate intensified after Jefferies removed Bitcoin from its flagship portfolio, citing these long-term security concerns. However, cryptographer and Blockstream co-founder, Adam Back, predicted that there would be no material quantum risk over the next decade. Back argued that the technology remains at a very early stage, and even partial breaks in cryptography would not allow Bitcoin to be stolen.
Related: Bitcoin futures imbalance may spark liquidation revenge rally to $90K
Bitcoin options turn bearish
The BTC options delta skew surged to 17% on Friday, reaching its highest point in over a year. In neutral market conditions, put (sell) options typically trade at a premium of 6% or less compared to equivalent call (buy) instruments. Current levels indicate extreme fear, which often leads to volatile price swings as market makers hedge against further downside.
Approximately $860 million in leveraged long BTC futures positions were liquidated between Thursday and Friday, suggesting many traders were caught off guard. However, it might be inaccurate to blame the crash entirely on leverage; aggregate BTC futures open interest actually fell to $46 billion on Thursday, down from $58 billion three months ago.
Declining interest in leveraged futures is not always a bearish signal. The market is now healthier because excessive leverage has been purged. To better gauge risk appetite, analysts often look at stablecoin demand in China. When investors rush to exit the crypto market, this indicator usually drops below parity.
Typically, stablecoins trade at a 0.5% to 1% premium relative to the US dollar/Yuan exchange rate. The current 0.2% discount suggests moderate outflows, though this is a slight improvement from the 1% discount seen last week. Ultimately, Bitcoin derivatives reflect a cautious mood following a 13% price drop during the last 14 days.
Whether Bitcoin can reclaim $87,000 and regain bullish momentum likely depends on investors realizing that no asset is immune to corrections when macroeconomic and socio-political concerns drive a sudden surge in demand for cash and short-term US Treasuries.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. While we strive to provide accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness, or reliability of any information in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph will not be liable for any loss or damage arising from your reliance on this information.
Crypto ‘Extreme Fear’ Sentiment Is A Bullish Signal, Says Santiment
Crypto market sentiment reaching a year-low could be one of the few signs of a potential rebound, according to crypto analytics platform Santiment.
“This sentiment data is currently one of the few strong bullish signals available,” Santiment said in a report on Friday. “A silver lining is the extreme negativity on social media. The ratio of bearish to bullish comments is heavily skewed toward fear,” Santiment said.
The Crypto Fear & Greed Index, which measures overall crypto market sentiment, posted an “Extreme Fear” score of 20 on Saturday, indicating that investors are cautious about the crypto market. On Friday, the index recorded an “Extreme Fear” score of 16, the lowest in 2026 and the first time it had reached that level since Dec. 19.
It fell back into “Extreme Fear” on Thursday after being in “Fear” territory since Jan. 20.
Crypto sentiment level may be setting “stage for a rebound”
Santiment said the lingering fear in the market may signal that a reversal is on the cards.
“Historically, crypto markets move in the opposite direction of the crowd’s expectations. When the majority is convinced prices will go lower, it often sets the stage for a rebound,” Santiment said.
The comments come as Bitcoin (BTC) has fallen nearly 7% over the past seven days, while Ether (ETH) is down more than 9%, trading at $83,950 and $2,690, respectively, according to CoinMarketCap.
Bitcoin has not traded above the psychological $100,000 level since Nov. 13, with the prolonged consolidation below the level prompting analysts to question whether the crypto market has entered a bear phase.
Crypto market sentiment is just in “a blip,” says executive
Crypto analyst Benjamin Cowen said in a video on Thursday that the strong expectation of a “massive rotation” from metals like gold and silver into crypto may be misplaced. He emphasized that the rotation to Bitcoin is “probably not going to happen” in the short term.
Others pointed to industry developments as a reason why current sentiment levels may be temporary.
Coinbase chief business officer Shan Aggarwal said in an X post on Friday that despite sentiment being “down,” the “signals are there if you’re paying attention.”
Related: Trump picks crypto-friendly Kevin Warsh as new Fed chair
“The legacy players are staffing up,” Aggarwal said, pointing to several traditional financial institutions such as MasterCard, Paypal, American Express and JPMorgan posting crypto-related job advertisements.
“Just a blip, we’re just getting started,” Aggarwal said. Bitwise CEO Huntley Horsley said in an X post on the same day, “The space is hurtling toward the mainstream.”
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Japan’s banking giant Nomura tightens crypto risk controls as market setbacks hit European operations
Nomura Holdings, Japan’s largest investment bank and brokerage firm, has stepped up risk management in its crypto business following losses in Europe linked in part to digital asset market setbacks.
CFO Hiroyuki Moriuchi made the comments during a Friday conference call, noting the measures are intended to limit short-term swings in earnings. Despite reducing exposure to digital assets, the company stays committed to crypto over the long term.
Nomura saw quarterly profit decline after losses in its European business and exceptional costs linked to the acquisition of Macquarie Group weighed on results, offsetting gains in trading and wealth management.
Nomura closed a $1.8 billion acquisition of Macquarie Group’s US and European public asset management business, expanding its global asset management footprint.
The firm is the parent of Laser Digital, its digital asset arm, which is seeking approval to operate as a federally chartered bank in the US.
Nigeria: From Policy Reform to Regulatory Enforcement in the Race for a $1T Economy
Ejike Nwafor, an investment and regulatory counsel, outlines the shifting landscape for investors and fintechs in Nigeria as the nation targets a US$1trillion economy.
According to Nwafor, the investment conversation in 2026 has fundamentally changed: the question is no longer whether Nigeria is reform-minded, but whether investors are prepared for a system that has moved decisively from “policy reform to regulatory enforcement”.
Between 2022 and 2025, Nigeria enacted consequential economic legislation, including the Nigeria Startup Act, the Electricity Act, and the Investments and Securities Act (ISA) 2025. Nwafor argues that these are no longer just aspirational frameworks; they are being actively enforced, creating a business environment best described as “digital, identity-driven, and compliance-intensive”.
The rise of the ‘Single Identifier’
One of the most transformative reforms cited is the move toward identity harmonisation. The Corporate Affairs Commission (CAC), revenue authorities, and financial institutions now operate an integrated system where a company’s RC number doubles as its Tax Identification Number (TIN). Furthermore, directors and beneficial owners must be linked via their National Identification Number (NIN).
“Nigeria has made it much easier to register a business — and much harder to hide one,” Nwafor notes. While this reduces identity abuse, it raises the stakes for compliance, as errors in one database now cascade across the entire regulatory ecosystem.
Tech and startup obligations
For the technology sector, the ecosystem is anchored on startup labelling, data protection, and financial regulation. While qualifying startups can access incentives under the Nigeria Startup Act, they must strictly comply with the Nigeria Data Protection Act and SEC fintech licensing where applicable. Additionally, foreign technology agreements must be registered with NOTAP to ensure lawful FX repatriation.
Despite digital progress, structural bottlenecks remain. Nwafor highlights Fiscal Tightening as a key challenge, noting that Capital Gains Tax for companies now effectively aligns with corporate income tax at up to 30 per cent, fundamentally altering exit strategies.
Furthermore, the Land Use Act and sub-national multi-taxation continue to present obstacles, with state and local governments often imposing overlapping levies despite federal harmonisation efforts.
Nwafor concludes that the era of regulatory arbitrage is closing. “The golden rule for investors in 2026 is simple: Align your NIN, RC number, tax records, and beneficial ownership disclosures before your first dollar enters the system”
Amboss Launches RailsX, A Lightning-powered Bitcoin Exchange
Amboss, a company best known for building tools and liquidity infrastructure for the Bitcoin Lightning Network, announced the launch of RailsX, a new peer-to-peer exchange designed to let users trade bitcoin and stablecoins directly with one another — without relying on centralized exchanges or giving up custody of their funds, the company shared with Bitcoin Magazine.
The announcement was made today at the PlanB Forum in El Salvador.
At a high level, RailsX aims to solve a problem many Bitcoin users still face: moving between bitcoin, dollars, and other currencies usually requires trusting centralized platforms that can freeze accounts, charge high fees, or restrict access based on geography.
RailsX instead uses Bitcoin’s Lightning Network to enable direct trades between users, keeping funds under users’ control at all times.
Unlike traditional crypto exchanges, RailsX does not hold customer assets or operate an order book in the conventional sense. Instead, it acts and facilitates peer-to-peer swaps using Lightning payment channels, allowing users to exchange bitcoin and Lightning-issued stablecoins instantly and at very low cost.
Amboss says the system is designed to support stablecoins issued on Bitcoin using Taproot Assets, a newer protocol that allows assets like dollar-pegged tokens to be created and transferred over Bitcoin’s Lightning Network. That means users can move between bitcoin and stablecoins without leaving Bitcoin’s infrastructure or touching another blockchain.
Amboss’ lightning-based stablecoins could democratize currency trading across Bitcoin
Why does this matter? Today, the global foreign exchange market — where currencies like dollars, euros, and pesos are traded — moves roughly $9.5 trillion per day, but access to it is largely limited to banks, brokers, and large financial institutions.
Amboss argues that Lightning-based stablecoins and peer-to-peer trading could open currency exchanges to anyone with an internet connection, a Lightning wallet, and self-custodied funds.
RailsX builds on Amboss’s existing product, Rails, which allows users to provide liquidity to Lightning channels and earn fees while maintaining custody of their bitcoin or stablecoins. Together, the two products aim to create a more liquid Lightning ecosystem, making it easier for payments and trades to route efficiently across the network.
To bridge the gap between Bitcoin and traditional finance, Amboss is also partnering with companies including Magnolia and Bringin to provide fiat on- and off-ramps in the U.S. and Europe. This would allow users to convert between bank money and Lightning-based assets without using a centralized crypto exchange.
The launch comes amid renewed interest in bringing stablecoins back to Bitcoin. Industry leaders, including Tether CEO Paolo Ardoino and Lightning Labs CEO Elizabeth Stark, have recently signaled support for issuing USDT and other stablecoins natively on Bitcoin using Taproot Assets.
“RailsX represents the next step in Bitcoin’s evolution,” said Amboss CEO Jesse Shrader in a statement, framing the product as a way to scale Bitcoin’s use beyond speculation and toward everyday financial activity.
Tether Reaches Record High Treasury Holdings, Profits Fall
Tether, the issuer of USDt, the world’s largest stablecoin, reported around $3 billion less in net profits in 2025, while its US Treasury holdings reached new all-time highs.
In a report published on Friday and prepared by accounting firm BDO, Tether said it posted net profits of more than $10 billion in 2025, which is down around 23% from the $13 billion it reported in 2024.
Meanwhile, Tether said its direct US Treasury holdings climbed above $122 billion in 2025, marking “the highest level ever.” The company said this shows the “ongoing shift toward highly liquid, low-risk assets.”
The company issued $50 billion in new USDt (USDT) over the 12-month period, with Tether CEO Paolo Ardoino saying demand for the stablecoin grew as “global demand” for US dollars moved outside traditional banking rails.
USDt has soared in slow and fragmented financial systems
“Particularly in regions where financial systems are slow, fragmented, or inaccessible,” he said, claiming that the stablecoin has “become the most widely adopted monetary social network in the history of humanity.”
Crypto market participants closely watch Tether’s financials because its stablecoin makes up a major part of the ecosystem. USDt ranks as the third-largest cryptocurrency after Bitcoin (BTC) and Ether (ETH), with a market capitalization of $185.51 billion, according to CoinMarketCap.
Tether’s profits and reserves provide some insight into stablecoin market confidence, which is relevant for traders and exchanges that use USDt as a dollar substitute for liquidity and collateral.
Tether, which also issues the gold-backed stablecoin XAUt (XAUT), has been accumulating gold as part of its reserves for some time, reporting $12 billion in exposure as of September 2025.
Related: Analyst claims single entity is ‘suppressing’ Bitcoin below $90K
The company holds 520,089 troy ounces of gold for XAUT — roughly 16.2 metric tons — separately from a broader reserve of 130 metric tons, worth around $22 billion at current prices.
“Tether maintains approximately 130 metric tons of physical gold, and the gold backing every XAUT token is held separately, making it eligible for physical delivery redemption,” a spokesperson for Tether recently told Cointelegraph.
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Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently. Read our Editorial Policy https://cointelegraph.com/editorial-policy
Polkadot Treasury Posts First OpenGov Profit as DOT Price Lags
Lower spending and more conservative treasury management helped Polkadot record a profit in Q4, according to a new report.
Polkadot’s treasury became more active and more conservative in the fourth quarter (Q4) of 2025, according to a new treasury report.
The Polkadot treasury spent $7.4 million in Q4, the lowest level since OpenGov was introduced. Polkadot’s governance transitioned to the OpenGov model in June 2023.
After accounting for inflation and token burn, the treasury posted a net profit of 1.6 million DOT, its first positive result under the current system. At the end of the quarter, the treasury held about 32 million DOT, worth roughly $58 million.
The report outlined that most spending went to core areas: Development received $2.5 million, followed by outreach at $1.7 million and operations at $1.3 million. Meanwhile, a record 68% of spending was handled through departments and bounties. Another 30% of spending was done in stablecoins.
The treasury also became more active across the Polkadot ecosystem, with around $3.8 million deployed into DeFi-related market operations. The report noted that funds were managed across multiple parachains, including Hydration and Bifrost. The treasury now holds a mix of DOT, USDT, USDC and HOLLAR.
Despite all of this, DOT’s price remains near all-time lows. Today, the token is trading at $1.69, down 72% over the past year, per CoinGecko.
The findings align with broader trends across interoperability solution blockchains. In a separate report released earlier today, Sygnum said interoperability activity continues to expand, while tokens tied to these networks struggle to record gains. It found that tokens linked to Polkadot, Cosmos, and other interoperability projects are trading near multi-cycle lows.
For example, Cosmos’ native token ATOM is trading around $2.10, down about 66% over the past year, according to CoinGecko data. LayerZero’s native token ZRO is also lower, trading near $2.01, down roughly 45% over the same period, despite new partnerships and growing cross-chain use cases.
Sygnum cites Chainlink as the exception among interoperability projects. This is mainly due to the Cross-Chain Interoperability Protocol (CCIP) expanding across blockchains and service providers. For example, Coinbase recently selected CCIP as the bridging solution for its wrapped assets, which are valued at about $8 billion.