Discover Rifampicin (RIF), a Solana-based token merging decentralized science with longevity research on Pump.science. Explore live experiments, gamified funding and predictions.

Rifampicin (RIF) is the gamified compound token for the Rifampicin experiment, representing longevity research conducted with the compound Rifampicin. As part of the 

 (DeSci) movement spearheaded by Molecule and 

, RIF is connected to the Pump.science platform, which leverages blockchain’s decentralized nature to democratize access to research and innovation.

This guide explores what Pump.science is, the RIF token (including its launch and trading) and the way Pump.science seeks to address critical challenges within longevity research.

 highlights three core challenges in developing life-extending interventions.

Traditional research, such as that conducted through human and mouse trials, is often slow and expensive. With more potential drug molecules than atoms in the universe, high-throughput methods are essential. Pump.science leverages blockchain and gamification to balance speed, cost and quality, accelerating discoveries while maintaining data integrity.

 is a blockchain-based research protocol that democratizes the process of conducting and funding scientific experiments, with a focus on longevity research. By breaking down barriers to scientific innovation, Pump.science fosters a more inclusive and creative environment for discoveries.

The platform allows users to propose longevity-focused drug regimens, test them on experimental platforms such as 

 (with plans to expand to other models) and retain ownership of the resulting intellectual property (IP). Results are transparently shared for community review and collaboration.

Think of it as a virtual arena for scientific experimentation, in which regimens compete to extend lifespans. The Colosseum is now a petri dish, the gladiators are microscopic organisms and their weapons are cutting-edge longevity strategies.

How Pump.science Aims to Solve the Longevity Trilemma

Pump.science uses tools such as WormBot to gamify research, creating a Percentage Life Extension (PLE) score as a benchmark for success. Here’s how the basic process works:

This approach reduces research costs, democratizes participation and introduces a transparent, collaborative system for scientific advancement.

Pump.science is a blockchain-based platform that decentralizes and funds longevity research through gamified experimentation. Its process includes the following steps:

This milestone-driven approach combines accessible funding with transparent experimentation, enabling a collaborative and efficient path to discovering effective longevity compounds.

Pump.science integrates decentralized funding with structured, milestone-based experimentation, ensuring each stage is financially feasible and tied to measurable thresholds, as follows:

These thresholds are informed by extensive analysis of historical trading data on platforms like 

, ensuring alignment between funding goals and realistic market behavior.

Efficient and Transparent Research Funding

This structured funding model reduces reliance on centralized gatekeepers, enabling community-driven innovation and collaboration.

 (RIF) is a token on the Solana blockchain that represents ownership in longevity experiments using the compound Rifampicin. Traditionally an antibiotic, Rifampicin is gaining attention for its potential anti-aging properties. Studies of 

 (worms) suggest Rifampicin enhances cellular defenses against stress and damage, extending lifespan by maintaining protein quality and reducing oxidative stress.

On Pump.science, investors can fund and monitor real-time experiments by using RIF tokens.

The RIF token represents intellectual property and experimental rights for Rifampicin on Pump.science. Participants can trade the token and view data from studies that assess its impact on longevity. Its tokenomics ensure efficient funding, as well as transparency and scalability for advancing scientific discovery.

As trading scales, RIF tokens empower participants to fund and benefit from transformative scientific breakthroughs.

 (FDV) of $42 million, reflecting its total supply of 1 billion tokens. Its price performance indicates its potential, as follows:

Pump.science’s clear and ambitious road map for 2025 indicates that the platform is set to expand its impact on decentralized longevity research.

By integrating RIF tokens and leveraging blockchain for funding and data sharing, Pump.science is transforming longevity research into a collaborative and gamified frontier.

Rifampicin (RIF) is now available to trade as a Bybit Perpetual contract. Trade 

Intermediate

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Rifampicin (RIF): Gamified Decentralized Science

Fuel (FUEL) redefines Ethereum Layer 2 with modular design, parallelized transactions, and developer-friendly tools, enabling scalable, low-cost DApps.

 blockchain solutions have mushroomed over the past few years. As a result, developers have a solution for building efficient, low-cost and scalable 

 (DApps), a phenomenon mainly driven by Ethereum's network congestion, poor scalability and high transaction costs. However, many of these Layer 2 networks continue to suffer from performance issues, albeit not to the extent of 

 network. Some blockchain technicians have attributed such performance limitations to the monolithic nature of these platforms.

Fuel is a Layer 2 solution for the Ethereum blockchain that aims to address these problems by adopting a highly modular design and technical innovations such as parallelized transaction processing. Having started as an 

, one of the first of its kind within the world of Ethereum, Fuel has evolved into a modular, high-performance execution layer designed to help developers build scalable DApps. While offering an efficient, high-performance execution layer, Fuel utilizes Ethereum's own data availability (DA) and 

First introduced in 2020, the Fuel project entered a new era at the tail end of 2024 with the launch of its native token, FUEL, and a sharper focus on providing high-performance execution layer infrastructure.

 (FUEL) is a Layer 2-focused blockchain infrastructure project offering a high-performance modular execution layer while utilizing Ethereum’s Layer 1 DA and consensus layers

.Fuel was initially launched in December 2020 as one of the earliest optimistic rollups for Ethereum. Over the next several years, the project’s team refocused their efforts on delivering a modular, scalable Layer 2 solution with its own execution layer, externalizing the DA and consensus layers.

The result of this new approach is the current Fuel network, sometimes referred to as Fuel V2, which acts as what the project has called an operating system for Ethereum rollups. In essence, Fuel V2 offers developers a convenient and flexible way to launch rollup networks and DApps that leverage Fuel's modular architecture principles — an internal and highly scalable execution layer interacting with Ethereum's DA and consensus layers.

Rollups developed using the Fuel framework will feature significant mutual interoperability, in addition to the core benefits of scalability, low costs and Ethereum-supported security. The project’s team launched the first of these Fuel-powered rollups, Fuel Ignition, in October 2024.

As of early 2025, Fuel is actively building an infrastructural ecosystem to support Fuel Ignition and other Fuel-based rollup networks. For instance, users can already take advantage of the platform's native 

, Fuel Wallet, which lets them interact with DApps based on Fuel-powered rollup networks.

Fuel is also actively working on decentralizing its network to enhance security and performance. While a typical rollup solution uses a single sequencer node, a key network actor responsible for both block-building and proposing blocks to the underlying Layer 1, Fuel separates the roles of the builder and the proposer between distinct nodes. Fuel has already completed Phase 0 of its sequencer decentralization initiative, and operates 12 proposers and a single builder. Phase 1 will introduce multiple builders, along with around 100 proposers. The final stage of decentralization, Phase 2, is envisioned to feature as many as 10,000 sequencer proposers.

Fuel aims to be developer-friendly, and offers blockchain developers a toolbox called 

 to facilitate easy scripting and deployment of 

The project's developer is Fuel Labs, a Vancouver (Canada)–based blockchain development company founded by John Adler and Nick Dodson in 2019.

Fuel-based rollups boast performance and security benefits, thanks to several technological innovations, particularly a modular design, a highly secure 

 address model and parallelized transaction processing.

Fuel's technical advantages are based on architectural modularity. Most other rollups use Ethereum Layer 1 only for consensus, internalizing their execution and DA layers. Sidechains, another popular Layer 2 network type besides rollups, often keep all three blockchain layers under the hood. Such monolithic designs may limit scalability or security — or both.

In contrast, Fuel internally handles only the execution layer, allowing the overall platform to remain highly flexible and adaptable. Some other modular rollups adopt the same approach, but they often outsource their DA layers to partnering DA providers, many of which are small projects with less established security profiles. Fuel, on the other hand, utilizes Ethereum Layer 1 directly for both DA and consensus. Since Ethereum is one of the industry's most secure and decentralized platforms, Fuel's overall modular setup enjoys high levels of security.

Another key security advantage of Fuel stems from its UTXO transaction model. While Ethereum and many Ethereum-linked Layer 2 chains employ an account-based model, Fuel utilizes a UTXO setup in which each network address contains unspent amounts from earlier transactions, and each transfer represents an exchange of these unspent funds. First implemented by 

’s blockchain, UTXO is regarded as more secure than Ethereum's account-based model, particularly with regard to protections from 

Fuel's UTXO model also features another critical performance advantage — namely, support for parallel transaction processing. At runtime, Fuel's processing engine determines which transactions don't overlap, in terms of the addresses and UTXO amounts involved. Non-overlapping transactions are then processed in parallel, delivering significant scalability and throughput advantages.

FuelVM is the platform's processing engine. Fuel's virtual machine (VM) is a register-based system designed to optimize performance and parallelized transaction execution. Register-based VMs are one of the two most popular types of VMs, along with stack-based systems like 

 (EVM). Within a stack-based VM, data is stored in and retrieved from a temporary memory stack during transaction processing. In such systems, data pieces are stored and accessed in a last-in, first-out (LIFO) fashion, creating performance bottlenecks, such as a need for frequent instructions or a lack of direct access.

In contrast, a register-based system such as FuelVM processes data pieces held in registers — separate labeled storage areas. Such a design delivers performance benefits in the form of fewer instructions, enabling a more straightforward implementation of parallelized processing.

Sway is a programming language for writing Fuel-based 

. It's a domain-specific language, adapted to the needs of blockchain developers. Sway is based on Rust, a popular general-purpose programming language that emphasizes performance and concurrent processing. Since Fuel heavily leverages parallelized processing in order to achieve its scalability and throughput benefits, the Rust-based Sway is an optimal language for the Fuel platform's smart contracts.

While Sway has inherited many of Rust's properties, Fuel Labs has specifically adapted it for blockchain-based smart contract development. As such, blockchain development with Sway is typically easier and more efficient than using Rust.

Fuel Ignition is the first rollup network to leverage FuelVM. We noted earlier that Fuel is essentially a high-performance execution layer that developers can leverage to launch custom rollups. Theoretically, many different Ethereum-linked rollup chains can utilize Fuel and become part of the platform's ecosystem. Fuel Ignition represents the first step in this direction.

Fuel Ignition features one-second block times and gas fees that are small fractions of a cent. According to the project's public communications, transaction fees on Fuel Ignition can be lower than $0.0002. The Fuel Ignition Layer 2 chain utilizes Ethereum's DA layer. It optimizes the cost and efficiency of data processing on the underlying Layer 1 through the implementation of 

, an experimental Ethereum feature that uses bundles of data called "blobs," instead of standard transactions.

Fuel Ignition boasts a throughput of over 600 

 (TPS) on the Ethereum DA layer. It also features a high TPS per CPU core, with a throughput of 21,000 TPS per CPU. With parallelized processing and high TPS per core, Fuel Ignition is ideally suited for mass adoption on consumer hardware.

Another distinct feature of Ignition is its nearly universal support for Ethereum and 

 (SOL) native wallets. As of early January 2024, the blockchain already has over 60 live DApps operating on it in areas ranging from 

FuelProver is the platform's hybrid proof-generation solution that combines the features of optimistic fraud proofs and 

. Rollups pass these proofs along with blocks of transactions to the underlying Layer 1 chain to help validate transaction data. Optimistic rollups generally offer lower computational overheads, while ZK-rollups feature greater security. FuelProver is envisioned to combine the benefits of the two rollup types, helping developers integrate Fuel's execution layer into both varieties.

Fuel's native cryptocurrency, FUEL, is an 

 token issued on the Ethereum blockchain in December 2024. One of the token's key functions is to support the project's decentralized sequencer network, which is based on the 

 (PoS) validation method. The network utilizes FUEL to secure its operations via staking and stake delegation. Sequencers are rewarded in FUEL for their transaction processing activity. Other platform users can delegate FUEL to preferred sequencers to earn a share of the rewards.

Developers pay in FUEL to utilize the platform's resources, such as access to DA. Gas fees on the sequencer network are also paid in FUEL tokens.

The FUEL token is also used for Application Specific Sequencing, whereby users can bond their FUEL to a specific DApp and earn staking rewards from that application.

FUEL has a total supply of 10 billion, with an annual supply inflation of 3%. The image below details the token’s distribution:

The Fuel project has announced a genesis airdrop campaign, during which 10% of the FUEL supply (1 billion tokens) will be distributed to more than 200,000 eligible addresses. Recipients include various groups of early adopters, including testnet users, holders of NFTs on Fuel Ignition, those bridging funds to the blockchain, active gas users and open-source code contributors. The airdrop is active between Dec 19, 2024 and Jan 19, 2025.

The FUEL token can be purchased as Spot pair (

) on Bybit. As of Jan 7, 2024, FUEL is trading at $0.067, which is 19.8% lower than its ATH of $0.08375 on Dec 29, 2024 and 78.5% higher than its ATL of $0.03762 on Dec 20, 2024.

Until Jan 14, 2025, 8AM UTC, you have the chance to 

 by embarking on Bybit’s Puzzle Hunt! To earn FUEL rewards, start by registering for the Puzzle Hunt event. Then, collect puzzle pieces either by completing simple daily tasks or receiving the pieces from your friends. If you complete three consecutive puzzle pieces, you can earn achance at a lucky draw to unlock even more FUEL rewards. Additionally, be among the first 600 participants to complete the entire puzzle, and you can claim 5,000 FUEL!

Fuel’s network offers developers a unique environment in which to spin off Ethereum rollups. The developer toolchain — featuring Fuel Orchestrator, the Sway programming language and the parallel processing–capable FuelVM — offers outstanding tools that, along with the platform's high throughput capacity and modular design, make the job of launching high-performance rollups that much easier. As Fuel progresses in 2025, the project’s team is determined to keep its focus on serving the developer community, and strives to promote collaboration, innovation, education, creativity and efficiency in all matters related to blockchain rollup development.

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Fuel (FUEL): The Modular Ethereum Layer 2 for Developers

Solana's new proposal introduces a lattice-based hashing system to address the "state growth problem," allowing the blockchain to scale to billions of user accounts. 

Daily Top Performer —  Pudgy Penguins (PENGU)

The S&P 500 rose 0.55% on Monday, driven by gains in tech and semiconductor stocks, with Nvidia and Micron leading the way. Coindesk Indices, an index measuring broader cryptocurrency market performance was up by 2.17%, with Bitcoin and Ether rising by 4.08% and 0.61%, respectively in the past 24 hours.

Today's top performer is PENGU, which surged 3.5% following the Pudgy Penguins assets surge ahead of the Abstract Network launch.

Pudgy Penguins (PENGU), launched in 2021, is a popular NFT collection with a market cap of over $1.19 billion as of December 2024. The brand has expanded into physical toys, generating $10 million in sales through partnerships with major retailers. Ahead of the launch of the Abstract Ethereum layer-2 network, Pudgy Penguins assets are increasing in value. The PENGU token has seen significant growth, while Pudgy Penguin NFTs are approaching a higher floor price. The rise is linked to growing PENGU holders and speculation of another airdrop. Companion collections Lil Pudgys and Pudgy Rods have also gained in value. Details about Abstract’s launch are still scarce, but anticipation is building.

Check Out the Latest Prices, Charts, and Data of Perp 

 introduces a lattice-based hashing system to address the "state growth problem," allowing the blockchain to scale to billions of user accounts. This system enables instant verification of accounts without recalculating the entire state, reducing computational overhead while maintaining security. Early tests have shown promising results, and the upgrade will be implemented through Solana’s formal improvement process, with gradual activation through validator voting.

Yesterday, the total flow for BTC Spot ETFs was $769.5 million, with $73.8 million in GBTC and $695.7 million in non-GBTC.

Check Out the Latest Prices, Charts, and Data of 

. To earn tokens, complete simple tasks like joining Discord or following on X. Tokens can be redeemed at TGE. To participate, connect your Solana wallet, complete tasks, and claim daily rewards. Additionally, the SLM Store charges 1 $ASRR token per query. Start now to maximize your rewards!

Beginner

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Solana's New Hashing Proposal Aims to Scale Blockchain to Billions of Accounts

Alchemist AI is a no-code development platform that transforms natural language into functional applications. Learn more about how it works in this article.

Complex coding requirements continue to block millions of web3 users from creating software applications. Alchemist AI offers a unique solution that combines AI and 

, enabling anyone to create applications through simple natural language while earning rewards in its marketplace ecosystem.

This article explores Alchemist AI’s workings, from its AI-powered application generation to its token-based monetization system. We'll examine its unique features, analyze its market potential and evaluate its position as both a development platform and investment opportunity.

 is a no-code development platform that transforms natural language into functional applications. Built on Solana, it combines AI-powered development with a blockchain marketplace, allowing users to build and monetize applications without technical expertise.

The Alchemist AI website tells a mythical origin story set in the ancient realm of Alberon. According to the tale, within the mist-shrouded valleys lies the Arcane Forge, an ancient school where masters of "Linguistic Alchemy" discovered how to transform words into digital reality.

This storytelling reflects the platform's core mission of making software creation as natural as speaking your ideas. By combining AI language models with blockchain technology, the anonymous team has built a system with which anyone can transform simple descriptions into working applications.

Alchemist AI's primary goal is to eliminate technical barriers to web application creation by transforming natural language into functional code. Removing the requirement for programming expertise enables anyone with an idea to create applications without learning complex programming languages.

Beyond accessibility, Alchemist AI seeks to shorten the development process from months to minutes. Through AI-powered code generation and automated testing, creators can rapidly prototype and iterate their applications to significantly reduce the time to market for new ideas.

Alchemist AI also aims to democratize application monetization through its marketplace ecosystem. Creators can sell their applications directly to users, earning ALCH tokens for their contributions while building a community in which anyone can turn their ideas into profitable solutions.

Alchemist AI uses a four-step process that helps transform simple text descriptions into functional applications.

Users can fine-tune this process using the Generation Settings slider, which controls the following parameters:

 enables integration with premium services and custom APIs, expanding the possibilities for application functionality.

Alchemist AI offers a comprehensive suite of tools and features to streamline the entire application development life cycle.

 is Alchemist AI's core development space, where users create fully functional applications using natural language. Instead of writing code, creators describe what they want to build — whether it's a game, productivity tool, or business application.

Using the AI Laboratory is straightforward:

The Laboratory adapts to your creative vision through its Generation Settings slider, while the integrated Wizard Chat Bot provides real-time assistance for refinements and improvements.

 is a decentralized store where the Alchemist AI community can share and monetize their creations. All transactions within the marketplace are powered by the platform's native ALCH token, which enables direct 

 transactions, a community tipping system and advanced creator monetization opportunities.

Creators can easily list their applications by navigating to the 

 tab, uploading their completed app, setting a price in ALCH tokens and providing descriptive information. Buyers can browse categories like 

 to find applications that match their particular needs.

 is Alchemist AI's control center for customizing application generation. Through its intuitive interface, users can fine-tune the way the AI creates applications by adjusting parameters and setting default configurations.

The system offers preconfigured profiles for different needs:

Users can enhance their workflow by setting default prompts, such as 

, ensuring consistent styling and features across all generated applications. These parameters can be adjusted at any time, giving creators complete control over their applications’ generation and refinement.

, the Alchemist AI team outlined their vision for 2025, with a focus on pushing beyond current capabilities for building basic applications. While the platform excels at creating programs from user prompts, it aims to tackle more sophisticated software development. The road map focuses on evolving Alchemist AI’s system to handle complex applications, while maintaining the platform's core principle of minimal technical requirements. 

Key to this evolution is the introduction of Pro Mode, a feature designed for users with the technical knowledge to create more intricate applications. This strategic direction positions Alchemist AI to compete with established Web 2.0 platforms, such as Bolt, while maintaining its accessibility advantage. Unlike platforms that require coding expertise, Alchemist AI promises to deliver advanced functionality through simple natural language inputs.

ALCH, the native token of Alchemist AI, powers its entire ecosystem. The token plays several crucial roles within the platform:

The ALCH token bridges the gap between creators and users, facilitating a sustainable economy within the Alchemist AI ecosystem. By powering all marketplace transactions, ALCH ensures seamless value transfer between community members while simultaneously incentivizing the creation of quality content.

While cryptocurrency price predictions are inherently speculative, various analysts have offered forecasts for ALCH. CoinCodex 

 between $0.07 and $0.29 in 2025, with an average price of $0.17. CoinDataFlow 

 between $0.13 and $0.34 in 2025, while its longer-term outlook for 2026–2031 suggests a range of $0.10 to $0.47.

These projections suggest moderate growth potential for ALCH, which aligns with increasing demand for AI-powered development solutions. Ultimately, the token's value will be determined by Alchemist AI's success in attracting users to its platform, as well as broader market trends and the wider adoption of no-code development tools.

Looking to trade ALCH tokens? Bybit now offers the ALCH/USDT Spot trading pair. To get started, you’ll first need to create a Bybit account, then fund it with cryptocurrency and navigate to the 

To celebrate this listing, Bybit is holding 

 for you to earn a share of a 1,500,000 ALCH prize pool through 

While Alchemist AI (ALCH) showcases innovative technology in the no-code development space, investors need to carefully consider both its strengths and risk factors before making investment decisions.

With its strong technical infrastructure and innovative approach to democratizing software development, Alchemist AI (ALCH) shows promising potential. However, potential investors will want to 

 and consider their own risk tolerance before investing.

Alchemist AI reimagines software development through its intuitive, language-based approach. Now, anyone can transform ideas into functional applications, setting the stage for a future in which software creation is truly accessible to all.

Its vision for 2025 extends this promise, evolving toward sophisticated application development while keeping creation as simple as a conversation. Executing this vision will be key to both Alchemist AI’s and the ALCH token's long-term success.

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Alchemist AI (ALCH): Forging Ahead in Innovation With AI Alchemy

Bybit Learn

Crypto

A bank run occurs when large numbers of depositors withdraw their money simultaneously from a bank. Find out how such a run can affect a crypto exchange.

When it comes to investments, it’s easy to become emotional or 

. When bad news or rumors begin to circulate, it can easily lead to a financial crisis. Bank runs, in which depositors withdraw large amounts of cash very quickly, still occur today. For cryptocurrency exchanges with no 

 or proper support, this can be a big problem that leads to people losing their investments.

There are several ways to prevent bank runs and 

. Even if you aren’t concerned about a crypto exchange you’re using or an asset you’re invested in, use this guide to learn more about how bank runs affect the financial system and everyone involved.

A bank run occurs when large numbers of depositors withdraw their money simultaneously from a bank, typically due to fear that the bank will run out of money.

, large numbers of users withdrawing the same asset within a short period led to significant price drops in the asset’s values.

When a large number of depositors withdraw funds within the same short period of time, financial institutions can run out of the funds they have on hand. During a bank run, the problem usually arises from the unexpected amount of withdrawals. The financial institution doesn’t necessarily lack the funds to fulfill their obligations; they just don’t have them 

Unfortunately, whether the bank run occurs at commercial banks or popular cryptocurrency exchanges, the answer isn’t as easy as collecting the funds from another location. For physical banks, the U.S. 

 sets cash limits on how much money can be stored at each location. This amount is based on typical demand, and is put in place to limit risks.

Banks also lend customer deposits to other customers, or use them to make investments. To help protect consumers, a 

 was introduced which allows banks to lend or invest a large portion of deposits, but they must keep some funds on hand to cover any withdrawals.

During a bank run, banks need to quickly increase the amount of cash they have on hand to cover all of the withdrawals taking place. This can lead to the bank quickly selling off assets to avoid insolvency. While central banks can lend money to commercial banks as a last resort, it isn’t always enough to keep the commercial bank afloat.

For cryptocurrency exchanges, bank runs can be devastating to investors. Some exchanges handle billions of dollars in transactions. While the 

 that separates broker and customer assets, many brokers use custodians to handle transactions. Some assets may not have the same requirements, depending on how those assets are transferred and used. This can lead to more potential issues when investors attempt to withdraw all their funds within a short period of time.

There are several reasons why a bank run could start. Historically, bank runs didn’t occur just because a few people thought an investment was too risky, and decided to pull their funds all at once. In many cases, bank runs were responses to external political or economic factors. For example, the 

 caused a great deal of panic, prompting many Americans to want to hold physical cash. Rumors of banks running out of cash reserves spurred some of the first bank runs.

Today, the majority of bank runs are silent. People don’t form long lines outside of the local bank to withdraw funds; they do it digitally. If the bank is in danger of failing, there are strict procedures in place to prevent it from doing so, such as receiving money from central banks, or allowing another bank to promptly and silently take over.

Bank runs, whether they’re silent or not, tend to be very swift and unexpected. Runs on crypto exchanges, on the other hand, often have a few warning signs that signify the exchange is in trouble.

A little publicity can go a long way, especially with cryptocurrency. Because a lot of cryptocurrency assets are speculative investments, it doesn’t take much effort to cause fear and shake a community. A few bad tweets can cause large investors to reconsider where they hold their assets, which in turn can cause significant decreases in asset prices if there’s a lack of buyers.

 is crucial for cryptocurrency exchanges. Verification will always be done by a third party, and could reveal if funds are being mismanaged. Even if an exchange is practicing fractional reserve banking activities, they should be able to easily track and access assets. Because regulations are different for cryptocurrency exchanges, there are several different factors that could lead to accounting errors or the mismanagement of funds.

There are several short- and long-term effects of a bank run. In addition to affecting financial institutions and customers, bank runs can also spark changes in Federal Reserve policies. Here are just some of the ways bank runs make an impact.

Effects on Companies and Crypto Exchanges

If a bank run occurs and a company or crypto exchange doesn’t have enough cash on hand to properly handle it, it can lead to distrust in the brand. Even if another institution or central banks bail out the company or exchange, holding customer funds — even for a short period — may result in fewer customers.

In addition to public relations issues, banks and cryptocurrency exchanges can suffer from “liquidity crunches.” These occur when a bank can’t find a bailout, and must quickly liquidate assets — often at a loss — to generate cash in order to avoid collapsing. If the amount the bank owes is greater than the amount of cash the bank generates, this can lead to its failure.

Depending on the speed of the bank run, customers may not have a lot of time to react. On a cryptocurrency exchange, panic can spread very quickly, especially if the exchange’s native token starts plummeting in value. This can create a snowball effect, causing the platform or its asset to become worthless in a matter of hours or days. Should the exchange shut down or an asset become virtually worthless, customers can lose their entire investment.

The biggest difference between a run at a commercial bank and a run on a crypto exchange is in the 

 regulations and deposit insurance. These factors help to prevent financial system collapses and bank failures, but they’re typically nonexistent for exchanges.

The government has taken several measures to prevent bank runs. In 1933, the FDIC was founded to maintain stability and regulate the industry. Bank runs can be slowed down or prevented in several ways. 

Bank runs are typically driven by panic and fear, rather than actual issues with financial institutions misusing funds. Slowing the process down doesn’t just help to protect the bank or exchange’s assets — it provides a cooldown period. If faced with the threat of a run, a commercial bank or exchange may shut down for a short period of time. Inspectors may also actively work to gather proof of reserves to give the public peace of mind.

After slowing down the run as much as possible, banks and exchanges need to raise funds to cover all of the withdrawals. For commercial banks, this typically means borrowing from other institutions or central banks to cover large loans and boost their cash reserves.

Some cryptocurrency exchanges may offer an industry recovery fund. For example, 

 following FTX’s collapse to help the crypto industry recover.

Deposit insurance guarantees that investors and consumers will get their money back, should there be a bank or exchange failure, or another issue with the financial system. Part of the reason why runs are devastating in the crypto community is that the FDIC doesn’t insure investors’ assets as it would for central banks. Should a bank collapse, the FDIC allows other banks to purchase the bank having issues, and customers can typically access their funds with little to no interruption.

One prevention method is to actively encourage investors to leave their assets on an exchange or in a bank. This is typically done by offering a percentage of interest. Sometimes, deposits are arranged for a set period. The user makes the deposit, and at the end of the predetermined term, they can make the withdrawal.

How to Protect Yourself During a Bank Run

Investors are becoming more cautious after seeing the impact a run can have on crypto exchanges. Observing crypto exchanges’ actions during previous runs can give an idea of what to expect should history repeat itself. Following the November 2022 FTX collapse, some exchanges 

 institutional traders’ access to liquidity. This move not only demonstrates Bybit’s willingness to support traders during a difficult time, but it helps to show the exchange’s reliability.

Only Use Reputable Cryptocurrency Exchanges

While there are several steps financial systems can take to prevent runs, one of the biggest things you can do to protect yourself is to conduct extensive due diligence before using an exchange. While runs can happen on any crypto exchange, working with a trustworthy platform that’s been successfully operating for several years can decrease the odds of being affected by a run.

Ensure Your Crypto Exchange Has Proof of Reserves

Carefully research any exchange platform you plan to use. It should have publicly shown proof of reserves. Since the FDIC doesn’t offer deposit insurance on crypto exchanges, you need to be cautious when choosing whom to trust with your money. Some exchanges may practice fractional reserve banking, a system where they only keep a percentage of funds on hand.

Rather than offering deposit insurance, a reliable exchange will be able to show proof of reserves. This independent audit shows what assets the exchange has, confirms that the exchange is financially stable, and indicates if any fractional reserve banking practices are being implemented. Proof of reserves should show that the exchange has more assets available than the balance of their users’ accounts, much like the reserves at traditional commercial banks.

Even if you’ve selected a reliable exchange like Bybit to handle your crypto transactions, you need to ensure you always have access to your funds. Never leave your assets on a third-party exchange. This helps to protect you in the event of a run, or any other issues an exchange may run into, such as downtime. Investing in a 

 for your assets will also add an additional layer of protection against hackers and scammers.

It’s tempting to specialize in one or two cryptocurrencies, especially if you have a lot of faith that a particular asset will increase in value. Unfortunately, various events can affect the value of an asset. One of the easiest ways to avoid a financial crisis is to diversify your portfolio with multiple investments. Some investors also work with multiple exchanges so that they’re always ready to trade if necessary.

It’s no secret that the world of cryptocurrency moves quickly. Following multiple news sites who report on the assets you’re investing in, as well as the platforms you’re using, can save you some heartache later on. Whether there’s a run or another financial crisis, being one of the first people to know gives you an advantage. For example, during the collapse of FTX, depositors who withdrew their funds early were able to recover some of their investments. Those who waited to withdraw may not have been able to recover any of theirs.

Bank runs can cause a financial crisis at any time. While the U.S. financial system doesn’t have as many federal reserve regulations for cryptocurrency exchanges, there are still several ways you can protect your digital investments. By understanding the causes of a run and taking precautions, you can protect your assets during an unforeseen financial crisis.

What Is a Bank Run & How Does It Impact Crypto Exchanges?

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