May 5, 2025: Our weekly Institutional Insights explores the latest market developments — market performance, industry news, exchange-traded fund (ETF) flows, trending topics, upcoming events and token unlocks — to help you supercharge your crypto trading.

 explores the latest market developments — market performance, industry news, exchange-traded fund (ETF) flows, trending topics, upcoming events and token unlocks — to help you supercharge your crypto trading.

Weekly highlight — Robust economic data might support June rate cut

Things are becoming increasingly complicated for the Federal Reserve as it prepares for its upcoming meeting. With inflation in focus, officials are likely to maintain interest rates. Yet, concerns about an economic slowdown are growing, exacerbated by calls from President Trump for a rate cut.

Fed Chair Jerome Powell may find some reassurance in recent labor data, which reported a robust increase of 177,000 jobs in April 2025. This solid job market provides a rationale for the Fed to hold rates steady. Additionally, the Fed's preferred inflation measure indicates a slight easing of price pressures. However, rising tariffs on imports threaten to undermine this progress.

Uncertainty looms globally over major central banks, as the White House seeks trade deals that could significantly alter economic forecasts. Economists suggest Powell will emphasize the importance of price stability, especially as inflation expectations appear to be shifting.

Meanwhile, the European Central Bank continues to lower rates in anticipation of disinflation and weaker growth due to US tariffs, and the Bank of Canada has diverged from its usual practice of issuing a standard forecast, opting instead for two contrasting scenarios based on the tariff situation with the US.

Looking ahead, the US economic calendar is sparse, with upcoming data on service sector activity and jobless claims expected to provide insights into labor market trends. Globally, monetary policy decisions are anticipated in several countries, highlighting the widespread impact of trade tensions.

As central banks navigate these turbulent waters, the interplay of tariffs and inflation will be critical in shaping future economic policies.

Weekly crypto highlight — Strategy sees no pause in Bitcoin purchase

Michael Saylor's company, Strategy, has doubled its capital raising plan to $84 billion following a record $4.2 billion first-quarter loss. This loss was attributed to a new accounting rule mandating that the firm value its substantial Bitcoin holdings at market prices. On Thursday, Strategy registered to sell an additional $21 billion in common shares, having exhausted a previously authorized equity program.

Additionally, the company has increased its planned debt purchase program from $21 billion to $42 billion, with $14.6 billion remaining. This shift reflects a growing awareness among corporate Bitcoin buyers of the unrealized earnings fluctuations that can occur, such as in Strategy's dramatic quarterly loss. The company holds approximately $53 billion in Bitcoin.

Prior to this accounting change, Strategy classified its Bitcoin as intangible assets, which limited its ability to recognize gains unless the assets were sold. This resulted in permanent markdowns whenever Bitcoin prices fell.

Over the past five years, Saylor has transformed Strategy, formerly known as MicroStrategy Inc., into the largest leveraged Bitcoin proxy globally. However, revenue from its software division fell 3.6% to $111.1 million in the first quarter of 2025.

Saylor's advocacy has significantly contributed to Bitcoin’s mainstream acceptance, inspiring numerous companies to follow suit by purchasing Bitcoin for their balance sheets. Analysts suggest that as more firms adopt this strategy, demand for Bitcoin will rise, potentially benefiting Strategy further.

Despite the stock's remarkable 3,000% increase since Saylor began buying Bitcoin in 2020, concerns remain about the sustainability of this approach. New competitors are emerging, including well-funded entities like Twenty One Capital Inc., increasing the pressure on Strategy. Nonetheless, Saylor shows no signs of slowing down, and is continuing to expand Bitcoin acquisitions aggressively.

Advanced

5 May 2025 weekly newsletter.png

Weekly Institutional Insights: Robust US economic data sends stocks higher; Strategy sees no pause in Bitcoin purchase

Bybit showcased its innovative crypto solutions at Web Summit Rio 2025, emphasizing its role in integrating crypto into traditional payments. 

Daily top performer — Zebec Network (ZBCN)

The S&P 500 extended its rally with a nine-day winning streak, its longest since 2004, as optimism over potential trade deals and upcoming Fed and earnings updates lifted sentiment. Gold rose to $3,245 on trade uncertainty and Fed rate cut hopes. CoinDesk Indices, which tracks the broader crypto market, fell 1.50% in the past 24 hours, while Bitcoin and Ether dropped 0.10% and 0.51%, respectively. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today's top performer is ZBCN, which surged 19.5% after Zebec Network joined the Circle Alliance, aiming to make USDC the default stablecoin for real-world payments.

Zebec Network (ZBCN), founded in 2021, is a Solana-based DeFi protocol enabling real-time payroll and payments, with products like Zebec Card, Safes, and Web3 Banking, all governed by ZBC token holders. 

, with Circle Ventures being an early backer. USDC powers Zebec's products, including Zebec Cards and payroll services. With Circle holding a significant amount of ZBCN, Zebec aims to establish USDC as the default stablecoin for real-world payments.

Check out the latest prices, charts, and data of 

 its innovative crypto solutions at Web Summit Rio 2025, emphasizing its role in integrating crypto into traditional payments. The exchange launched Bybit Pay in Brazil, offering a seamless crypto-to-fiat experience with features like QR code payments, multi-currency support, and secure blockchain transactions. Bybit also highlighted its strategic partnerships, including with Tomorrowland Brasil, and introduced its rewarding Bybit Card. The event showcased Bybit’s commitment to empowering the LATAM crypto community and making crypto accessible in everyday life.

BTC spot ETFs saw $1.8B net inflows last week, driven by $1.86B into non-GBTC ETFs despite a $58.7M GBTC outflow. Since inception, total net inflows stand at $40.2B.

GiveRep is experiencing heavy traffic, causing site loading issues, but the team is actively working on 

 V1 soon. In the meantime, users can continue earning rewards as all tweets about GiveRep are still being indexed. A confirmed ATTN token airdrop will reward those who rank higher on the leaderboard, so continued engagement is encouraged.

Beginner

4.png

Bybit showcases crypto payment solutions at Web Summit Rio 2025 with Bybit Pay launch in Brazil

Crypto portfolio diversification is the practice of spreading investments across different asset classes, industries or geographies in order to reduce risk.

In the whirlwind cryptocurrency space, the secret to keeping your profits lies not in predicting the next moonshot, but in mastering portfolio diversification: the art of turning market chaos into a calculated advantage. From blending rock-solid 

, this article reveals how strategically spreading your investments can shield your portfolio from meltdowns and position you to profit — no matter which way the crypto winds blow.

Portfolio diversification is the practice of spreading investments across different asset classes, industries or geographies in order to reduce risk.

This strategy aims to mitigate the impact of poor performance in one area by balancing it with gains or stability in others.

Portfolio diversification entails spreading investments across different asset classes in order to minimize risk. By holding a mix of stocks, bonds, real estate and commodities, you avoid putting all your eggs in one basket. When one asset class takes a hit, others may remain stable or even perform better, helping to reduce the overall risk to your portfolio.

In the crypto market, diversification works in a similar way, but with an extra layer of complexity. Cryptocurrencies 

, so diversifying within this market is essential. A well-diversified crypto portfolio often starts with well-established coins like Bitcoin (BTC) and Ethereum (ETH). These major assets are the foundation of many portfolios, due to their market dominance and liquidity. Then, in order to add growth potential (though with higher risk), investors might include mid-to-small cap coins like 

You can also diversify by sector, investing in different use cases, such as 

, AI or non-fungible tokens (NFTs). This can involve a mix of altcoins and newer tokens that are part of various blockchain ecosystems — such as 

 (DOT) — to reduce dependency on a single blockchain's performance.

For those looking to minimize volatility, diversifying into stablecoins like 

 can be a good option. These assets are pegged to traditional currencies such as the US dollar, making them more stable while still allowing you to gain exposure to the crypto market.

 (ETFs) or index funds can help simplify crypto diversification. These options give investors access to a basket of cryptocurrencies, reducing the need to manage each asset individually and providing a more hands-off approach to diversification.

Diversifying your cryptocurrency portfolio is a strategic approach to managing risk and enhancing potential returns in the volatile crypto market. By spreading investments across various digital assets, sectors and regions, investors can mitigate the impact of adverse movements in any single asset as follows.

Different types of portfolio diversification

Diversifying your crypto portfolio is essential for managing risk and capturing growth across varying market conditions. Below are some key methods to consider.

Infrastructure tokens like Ethereum (ETH) and Cardano (ADA) are vital for running blockchain networks, while 

) give holders a voice in project decisions. Meanwhile, 

), though speculative, can offer short-term gains, due to community hype and viral momentum.

Diversification is a powerful strategy to manage risk and optimize returns, but it requires careful planning and ongoing monitoring. Following are some key considerations before diversifying your crypto portfolio.

Assess your risk tolerance and investment goals

 and investment objectives. If stability is your priority, consider focusing on well-established assets like BTC, ETH and stablecoins like USDC and USDT. These assets tend to offer lower volatility and more predictable returns. However, if you're comfortable with higher risk for potentially higher rewards, you might allocate a portion of your portfolio to emerging sectors, such as DeFi tokens or gaming coins. Additionally, your time horizon matters — since short-term investors may prefer liquid, low-volatility assets (such as stablecoins), while long-term holders may opt for high-potential assets, such as NFTs or blockchain infrastructure (e.g., mining operations or tokenized real estate).

When diversifying, balance large-cap cryptocurrencies (e.g., BTC or ETH) with smaller, high-growth altcoins. Large-cap assets are generally more stable, and provide a solid foundation for your portfolio. Meanwhile, smaller-cap coins can offer higher growth potential, but they come with more risk. 

Spread your investments across different sectors, such as DeFi, 

 platforms, in order to reduce overexposure to any one area. Consider geopolitical factors and the regulatory environment, as these factors can affect markets differently in various regions, making geographical diversification important.

A balanced portfolio is key to effective diversification. For example, you could allocate 40% to Bitcoin and Ethereum, 30% to stablecoins for liquidity and risk mitigation and the remaining 30% to altcoins or alternative investments, such as blockchain startups. Another strategy is that of 

 (DCA), whereby you invest a fixed amount periodically, regardless of market fluctuations. This helps to reduce the impact of market timing and smooth out crypto market volatility.

While diversification has its advantages, over-diversifying can dilute your returns because your gains may be spread thin across many assets. Frequent trading and rebalancing can also lead to higher transaction fees that can into your profits. Additionally, managing a diverse portfolio requires time, expertise and constant attention, which might not be feasible for every investor.

To further reduce exposure to crypto volatility, think about including traditional assets, such as stocks, ETFs or blockchain infrastructure investments. These can act as a stabilizing force during crypto market downturns, offering balance to your portfolio.

Ultimately, a well-diversified portfolio can help investors navigate market volatility with more confidence. Diversifying your portfolio is a vital strategy for managing risk and optimizing returns, particularly in the volatile crypto market. By spreading investments across various asset types, market caps, sectors and investment vehicles, investors can cushion the impact of market fluctuations and potentially capture better returns. While diversification offers many benefits, it requires careful planning, constant monitoring and a balanced approach in order to avoid over-diversification and excessive trading costs.

portfolio diversification.png

Portfolio diversification: The key to efficiently navigating market volatility

Ethereum R1 is a new donation-funded, tokenless Layer 2 rollup designed to offer a decentralized, censorship-resistant, and governance-minimized scaling solution for Ethereum

The S&P 500 rose 0.63% Thursday, boosted by strong Meta and Microsoft earnings, but futures slipped Friday as investors awaited the April jobs report and weighed Apple and Amazon tariff concerns. Gold fell to $3,235 as easing trade tensions cut safe-haven demand; markets await US jobs data for rate cut signals. The Coindesk Indices, which tracks the broader crypto market, rose 2.19%, with Bitcoin and Ether up 2.57% and 2.60%, respectively in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today's top performer is AR, which gained 16.8% following CloneX's successful migration to Arweave, sponsored by ArDrive.

Arweave (AR), founded in 2017, is a decentralized network for permanent data storage, using blockweave and Proof of Access to ensure long-term accessibility. It offers 200-year storage for a one-time fee, incentivized by AR tokens for miners. The system connects blocks efficiently to preserve and retrieve data, aiming to create a lasting digital knowledge repository. CloneX has successfully 

 to Arweave for permanent storage, with the support of ArDrive, which sponsored the migration of 100 GB of data. The process is nearly complete, with only Animus remaining to undergo decentralization.

 is a new donation-funded, tokenless Layer 2 rollup designed to offer a decentralized, censorship-resistant, and governance-minimized scaling solution for Ethereum. Built on open-source code and the Nethermind Surge stack, it emphasizes credible neutrality, public good funding (with all fees burned after 2030), and infrastructure that remains free from VC control or centralized dependencies.

Yesterday, BTC spot ETFs saw $71.1M in total inflows, with $16M from GBTC and $55.1M from other ETFs.

 $BOOP tokens to active Solana memecoin traders and creators who promote memecoins or Solana dapps on X. To claim, users must connect their Solana wallet or X account and launch a free token. The airdrop arrives in 30 days, but growing the token’s market cap can accelerate the reward.

3.png

Ethereum R1 offers a decentralized rollup solution for Ethereum

Trading

DeFi

Investing

Crypto rug pulls often happen in DEXs, and they are notorious for your investment. Learn how it happens & spot the rug pull signs before it's too late.

Untitled.png

Untitled_(1).png

WhaleFarm-Token-Rug-Pull.jpeg

If you’re standing on a rug and it’s suddenly pulled out from under you, unless it’s a magic carpet, you’d fall on the floor. Worse yet, you might spill or lose everything you were holding onto at that moment. That’s exactly why you need to be aware of rug pulls, especially when you’re trading a volatile crypto asset.

In this guide, we’ll explain what a rug pull is, how it happens and how you can avoid them. Here’s what you need to know to stay ahead and minimize risks.

A crypto rug pull happens when developers create a token paired with a valuable cryptocurrency, list the token on 

 (DEXs), and then pull all the funds out after the investor’s buy-in. 

Rug pulls are usually perpetrated by malicious scammers who create hype around a coin and then abandon the project, running away with the money. These cryptocurrencies are usually paired with reliable utility blockchains, be it on 

 or Binance Chain. This is because investors who swapped their ETH for the listed token gives the creators of the token a chance to withdraw the ETH from liquidity quickly. For example, meme coins are one of the craters that cause investors to concede into the FOMO spirit and get rug-pulled.

) space by pulling funds from a liquidity pool. To understand this in-depth, we need to know how liquidity pools function.

A liquidity pool is effectively a market maker for DEXs, meaning it provides buy and sell orders for a given token. Because there is no centralized system for facilitating trades, crypto exchanges need a way to keep order flow going. It’s also easy to list tokens on a decentralized exchange because there’s no one to audit the token. 

At its core, a liquidity pool is a pile of investor funds locked in crypto pairs that allow users to trade between different cryptocurrencies. Crypto pairs usually include a popular cryptocurrency like Ethereum’s (ETH) because it’s a well-established platform token with high availability. 

To encourage investors to pool their resources and act as a liquidity provider (LP), a trading fee is charged on orders and awarded based on the total value lent to the pool (similar to a dividend). In exchange for the crypto in their wallet dedicated to the pool, each user is entitled to a percentage of the overall fee. The higher the amount lent, the more money an investor stands to make. 

Creators of liquidity pools vie for more investors by offering higher yields. The below graphic depicts simply how liquidity pools function.

Once the creators of a rug pull have amassed a large amount of liquidity providers with substantial capital, they pull all the available assets out. The coins are then exchanged in another marketplace and made untraceable to the victims. Because Ether is often used as the exchange currency, it’s easy to transfer between other wallets and “disappear” to other users. This removes all crypto assets — leaving the pool empty and the liquidity providers with nothing but disappointment. 

Why DeFi Became a Common Space for Rug Pulls 

As the name suggests, DeFi protocols have no centralized oversight relying only on smart contracts, making it a prime target for DeFi rug. In the first seven months of 2021 alone, 

. However, investors are getting savvier, and the amount of crypto stolen on DeFi platforms is down 64%.

With DeFi projects, bad actors can create tokens, raise their profile and recruit investors. By using 

, the tokens are created and listed without audit. All the scammers need to do is create a token with some apparent value, promise use cases, and create a market appeal for investors to buy it. 

As soon as money starts flowing into the project, its value shoots up and the creators sell these tokens, draining the value of the tokens to zero. They essentially take the money promised to the project in token sales for themselves, pack their bags and flee — in other words, pulling the rug from underneath their buyers. 

Since the DeFi space isn’t regulated, it’s easily targeted for crimes.

Rug pulls in cryptocurrency markets are easy to pinpoint — 

In August 2021, a criminal group walked away with 

 of funds taken from investors in one of the largest cryptocurrency DeFi scams to date. All social media accounts and the website for Luna Yield, a project on the DeFi platform Solana, were closed down. When users withdrew (or “unstake”) their funds, they found the pools were empty. They had fallen victim to a rug pull.

In one of the most publicized cases of 2021, Thodex, a Turkish-based platform, was closed, and its founder, Faruk Fatih Özer, is rumored to have 

. Özer is still on the run, but is being pursued internationally by

. Thodex built an active user base of 390,000 financial users. In April, the DEX was unexpectedly closed. It’s still unknown where the missing funds went.

2021 also saw DeFi platform Compounder Finance 

worth over $10.8 million in stolen customer funds. A breakdown revealed that contracts worth $5 million in Dai, $4.8 million in Ether and $750,000 in Wrapped Bitcoin (WBTC) were drained from Compounder Finance. In a scheme that sounds like something out of a thriller, the team replaced their secure and audited contracts with malicious ones that enabled them to steal locked investor money. They also cleverly mimicked the name of Compound Finance, a legit DeFi interest-earning protocol, to lure their marks into investing.

In March 2021, Meerkat Finance, a DeFi yield project using a forked cryptocurrency of 

, perpetrated a rug pull worth $31 million in crypto assets. The platform’s official Telegram channel claimed that its smart contract vault had been compromised. Investigations suggested that either the private key of the Meerkat deployer was compromised or the incident was self-directed by the owners of the project. 

In June of this year WhaleFarm, a DeFi project token 

 in exchange for staking its pool, crashed 99% in a matter of minutes (chart below), scamming investors out of $2.3 million worth of cryptocurrencies. The team, which was entirely anonymous from the start, is still unidentified.

. These range from small value scams in the thousands to 

Image credit: TradingView and Reddit. An example of WhaleFarm Token Rug Pull.

Signs That an Exit Scam and Rug Pull Is About to Happen

 the total monetary amount stolen is dropping because investors are learning to watch for the signs. If you know what you’re looking for, it becomes easier to avoid these schemes. Below are some common signals to help you avoid falling victim to such an exit scheme.

Many DeFi pools offer to facilitate the trade of tokens and lend them inside, creating extra yield to investors in the pool. WhaleFarm, for instance, 

. If you see a yield farm offering returns that are too good to be true, they probably are.

There may be a rationale for creators to remain anonymous, 

 to personal reasons. However, anonymity also makes it harder for bad actors to be tracked after pulling off a scam. If a project is started anonymously, with new social media accounts created within days or hours of a launch — that’s a big red flag. 

If projects have no ties to other successful projects or the crypto community as a whole, that’s also a red flag. Look on a project’s website for meaningful information about the team. If it’s just a bunch of fluff, proceed (if at all) with caution.

With any asset, if you can’t see why the value is rapidly increasing, beware. Scammers can inflate a project by either putting in funds or creating false hype to get people involved in it by exploiting the “FOMO” — fear of missing out. Look for legitimate reasons such as new exchange listings, partnership announcements, or other good news that could be driving the spike. If these are non-existent, it may be a rug pull or 

. Remain skeptical unless you have a good reason not to be.

Most crypto scams are designed with a rug pull in mind. Because of this, the use case for the token or pool is vague and unpractical. Instead, the creators rely on social media posts, crypto influencers and paid advertisements to gain support. Try to understand the legitimate use case for a project before jumping into a new token or pool. All sizzle and no steak won’t provide anyone with a good meal.

Most legitimate liquidity pools lock in investor money for a certain amount of time. This does two things. First, the pool liquidity needed for token swapping, lending and other activities is ensured, so that the pool can continue to function. Second, it keeps the creators from quickly emptying the pool once it gets to a certain size — and running away with the money. A locked pool helps to safeguard investor interests. If there’s no lockup, it’s another red flag. 

By exercising caution and looking for the signs above, investors can mitigate the risk of becoming entrapped by a rug pull. Prudent investors exercise caution when entering new markets or investing in new pools. Greed can make poor business decisions seem much safer than otherwise, so knowing the signs of foul play will decrease one’s chances of falling prey.

Avoiding scams and potential rug pulls in crypto projects ultimately boils down to awareness before investing and doing your own research. Here are a few more ways to check the legitimacy of any project. 

One way to assess a token’s legitimacy is to check its liquidity. Legitimate projects usually have millions in liquidity. These projects lock up a significant amount of tokens for a long time — and again, they cannot be withdrawn from the liquidity pool during that time frame. Check the project’s staking period, and verify the amount of liquidity belonging to a project’s owners. Legitimate platforms like PancakeSwap and Uniswap usually have liquidity information readily available. 

Review Github, Whitepaper and Social Media Channels 

Github is the code base hub for DeFi projects, usually containing their development activities. It’s well worth keeping an eye on these, as well as a project’s social media channels including Telegram, Twitter, etc. If the project is apparently not going through any active development and is a fork of another project, it might be a bad sign.

Any project that’s potentially a rug pull is defined by its owners and creators. Their relevance to the cryptocurrency space, as well as their previous involvements, track records, social media and industry history and connections must add up if they are to gain credibility. The more questions than answers about the owners and team, the more likely the project is to be a scam. 

Look at Holders and Listings on DEX Platforms

If a token has only a few token holders and isn’t actively traded on multiple platforms, it’s possible that it might be a rug pull waiting. Tools like Etherscan and CoinGecko can reveal more information about a token. 

DeFi is a young industry with great potential. It offers the freedom to borrow without any restrictions on credit history. All you need to borrow is collateral. Moreover, DeFi banking is truly private, as there is no centralized authority involved in dictating terms or taking high transaction fees. However, the downside of such an unregulated space is that anyone can list an asset with no central control over it. There’s no one to tell if a project is out to scam people, and that’s where rug pulls come in. 

As with any new technology, unethical players in the crypto space will try their best to con people who have less knowledge and experience. With many new projects, prices can be inflated short-term, and sometimes it can be difficult to separate hype from reality.

Investing in DeFi ultimately comes down to your available funds and your risk appetite. Make sure you do proper research before investing in a project, and really understand what the project is about. Online platforms and tools like 

 can help you evaluate the legitimacy of investments. 

Rug pulls are usually very well planned and blatantly executed. The tokens that have been created promise exciting developments and garner a lot of attention in a short span of time. Instead of executing token sales, however, the teams behind the hoax are orchestrating an exit scam. Investors often don’t realize it until the token is drained of all value and its creators have long disappeared.

With growing interest in crypto, the stakes are becoming increasingly high. Scam artists are constantly looking for ways to make a quick buck off of unsuspecting victims. By keeping track of common signs of exit scams and conducting due diligence on prospective projects, you can decrease the chances that their next victim will be you.

Why Crypto Rug Pulls Happen in DeFi — and How to Avoid Them

Compete for 2,500 USDT Every Week

Earn Points by Completing Tasks

Event Rules

Register now and get 10 points

Write/Reply Comments (0/5)

Publish an Article (0/5)

Share an Article on Social Media (0/5)

Like an Article (0/5)

Read an Article (0/5)

Weekly Leaderboard