🔮 Short Liquidations, Memecoin Scams, Crypto S&P 500 Additions, Coinbase Hacked, Ripple Rejected

Top Stories

Record Short Liquidations Driven by ETH and Altcoin Rallies

Thursday, May 8, marked the largest single-day short liquidation event of 2025, with over $670 million in total liquidations—$290.8M (43.4%) on Bybit and 26.5% on Binance. Liquidations remained elevated through the weekend, with $301M on Friday and $233M on Saturday. While BTC short liquidations led Thursday’s action ($394M), they dropped to just $42M and $57M on Friday and Saturday, respectively. In contrast, altcoin liquidations made up 41% of Thursday’s total but surged to 86% and 75% on the following two days. Notably, memecoins MOODENG (+570%) and PNUT (+180%), both with perps on Binance and Bybit, played a major role in driving altcoin short liquidations over the weekend.

Source: The Block / Coinglass

Ethereum Foundation Unveils 'Trillion Dollar Security' Initiative

The Ethereum Foundation has launched the “Trillion Dollar Security” initiative to prepare the network for global financial scale. Despite currently securing $63 billion in assets, the Foundation aims to exceed the security standards of legacy finance. The initiative includes analyzing vulnerabilities, fixing critical attack vectors, and strengthening ecosystem-wide security collaboration. It will be co-chaired by EF Protocol Security Lead Fredrik Svantes and EF’s Josh Stark, alongside key contributors like Samczsun and Mehdi Zerouali.

99% of Memecoin Launches on PumpFun Are Scams Research Shows

Nearly 99% of memecoins launched on Solana’s PumpFun platform are pump-and-dumps or rug pulls, according to a new Solidus Labs report. The study, which analyzed 361,000 liquidity pools on Raydium, found a median rug pull amount of just $2,832—but warned the collective fraud on Solana is “staggering.” Only 97,000 of 7 million tokens deployed on PumpFun maintained liquidity above $1,000, and 98.6% collapsed shortly after launch. The report highlights PumpFun’s bonding curve mechanism as a key enabler, incentivizing creators to cash out as prices inflate, leaving latecomers with heavy losses. Solidus warned the trend poses growing regulatory and reputational risks for platforms facilitating memecoin trading. See similar: Pump.fun DEX PumpSwap TVL Breaks $100M Driven By Memecoin Comeback

Source: Dune Analytics

Telegram Shuts Down Haowang Guarantee Crypto Crime Syndicate, but Spin-Offs Emerge

Telegram has banned thousands of accounts tied to the notorious Haowang Guarantee (formerly Huione Guarantee), effectively shutting down what analysts say was the largest crypto-fueled black market ever. The network, linked to more than $27 billion in laundered funds and industrial-scale scams across Asia, enabled the trade of laundered USDT, stolen identities, and tools for cyber fraud. The takedown follows an Elliptic investigation and a U.S. Treasury proposal to designate Huione as a primary money laundering threat. Despite the win, successor platforms like Xinbi and Tudou Guarantee are already emerging, with Xinbi reportedly handling over $8.4 billion in suspect transactions, some linked to North Korean hackers and Western-targeted scams.

Solana Captures Over 50% of All dApp Revenue, Surging Past Ethereum

Solana now dominates the DeFi ecosystem with over 50% of total dApp revenue, far surpassing Ethereum's 12.84%, according to new data shared by researcher 0xGumshoe. Solana’s revenue lead is fueled by explosive memecoin activity, especially through launchpad PumpFun, which generated $630 million in the past year—second only to Circle and Tether. Other top Solana earners include Phantom and Photon. In contrast, Ethereum’s revenue remains concentrated in traditional DeFi players like Maker’s Sky, Lido, and Aave. The only major non-Solana outlier is Hyperliquid, which earned $212 million over the year, with 20% of that revenue coming in the last month alone.

Source: Blockworks

Regulation

First They Try To Destroy You, Then They Add You To The S&P 500

On May 19, Coinbase (COIN) will officially join the S&P 500, becoming the first pure-play crypto company to enter the prestigious index, replacing Discover Financial Services following its acquisition by Capital One. Analysts at Bernstein estimate this inclusion could drive ~$9 billion in passive inflows from index-tracking funds, with an additional ~$7 billion in active fund buying, due to Coinbase's ~0.1% index weight. In a client note, Bernstein analysts highlighted Coinbase’s dramatic trajectory from SEC litigation to mainstream index acceptance, calling it a “turnaround moment” for the broader crypto sector. CEO Brian Armstrong called the listing a "watershed moment," saying that "crypto is about to be in everyone’s 401k."

The Exchange in Green Tights Buys an Exchange

Robinhood will acquire Canadian crypto firm WonderFi for $179 million in cash, gaining access to platforms like Bitbuy, Coinsquare, and SmartPay. The deal values WonderFi at a 71% premium over its 30-day VWAP and will retain the company’s leadership under Robinhood Crypto. With over 140 staff already in Canada, Robinhood plans to expand offerings post-integration. The deal, expected to close in H2 2025 pending approvals, adds to a growing list of major crypto acquisitions this year.

Coinbase Offers $20M Bounty After Data Breach and Extortion Attempt

Coinbase has launched a $20 million bounty for information leading to the conviction of attackers who attempted to extort the exchange for the same amount by threatening to leak stolen customer data. Hackers allegedly bribed offshore support staff, breaching the accounts of about 1% of Coinbase’s monthly users. The exchange confirmed that no passwords, private keys, or funds were compromised and that Coinbase Prime was unaffected. After refusing to pay the ransom, Coinbase reported the incident to law enforcement and pledged to reimburse affected users. A subsequent SEC filing estimated potential remediation costs of up to $400 million, while the agency is also reportedly investigating whether Coinbase misrepresented user numbers in previous disclosures.

Judge Rejects SEC-Ripple XRP Deal Over Procedural Flaws, But Resolution Still Expected

A federal judge denied the SEC and Ripple’s joint motion to approve a $50 million settlement—down from the original $125 million fine—citing procedural missteps. Judge Analisa Torres ruled the filing was “procedurally improper,” as it bypassed Rule 60 and lacked justification for reopening a final judgment still under appeal. Despite the setback, both parties remain committed to settling the four-year legal battle, and XRP held steady at $2.39. Ripple says the court’s rejection doesn’t affect its previous legal wins and plans to revisit the filing properly.

JP Morgan Settles First Tokenized Treasury Transaction on Public Blockchain

JP Morgan has completed its first-ever tokenized U.S. Treasury transaction on a public blockchain, using Ondo Finance and Chainlink to bridge traditional finance with DeFi. The milestone—part of its Kinexys platform—marks a significant shift in how the financial giant approaches blockchain, six years after launching JPM Coin. Chainlink Labs noted this as the first time a major global bank has connected core payment systems to a public chain, enabling real-world assets like Treasuries to move seamlessly between public and private blockchains. As institutional interest in tokenized assets accelerates—with over $12B in RWA value locked across 80+ DeFi platforms—JP Morgan's move signals real adoption beyond experimentation.

Other Domestic Regulation Updates

• Trump-affiliated mining firm American Bitcoin to go public via Gryphon Digital merger
• NYC Mayor Eric Adams wants long-term value with crypto, not to chase 'memes'
• Strategy and Metaplanet stack more bitcoin as corporate accumulation race heats up
• SEC’s Crypto Embrace Seems Like 'Government Picking Winners and Losers', Says Crenshaw
• SEC and Ripple's potential resolution hits a setback
• Senator Slams Trump’s World Liberty Financial Over 'Seriously Inadequate' Response to Inquiry

Other International Regulation Updates

• Wallets Have Moved Beyond Holding Crypto: Dune Analytics
• Abu Dhabi sovereign wealth fund raises BlackRock Bitcoin ETF exposure
• Bitcoin corporate accumulation race expands to Brazil

Pain & Gain

Pain

• Coinbase Decided Following Strategy's Bitcoin Reserve Playbook ‘Too Risky’: CEO
• Trump’s Crypto Dinner Cost VIP Attendees an Average of $4.8 Million
• Truth Social Denies Meme Coin Plans as Trump Token Slips

Gain

• Arthur Hayes says 'buy everything' as US-China trade war cools
• Another $1.3 Billion in Bitcoin: Michael Saylor’s Strategy Keeps Buying
• Solana Meme Coin Moo Deng Flies 530% in a Week Amid 'Macro Hopium'
• Believe App Token Soars 900% After Generating $6.3 Million in Daily Revenue
• Meteora Surpasses USDC Issuer Circle in Daily Fees