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Mangoceuticals and Cube Group Launch $100 Million Digital Asset Strategy
According to Odaily, Nasdaq-listed Mangoceuticals has announced a collaboration with Cube Group to establish a subsidiary named Mango DAT. This initiative aims to develop a $100 million digital asset treasury strategy, with a primary focus on investing in SOL. The necessary funds will be raised through an ATM financing plan and the sale of common stock. Additionally, the company has filed a trademark application for 'MULTI-DAT' with the United States Patent and Trademark Office to promote a series of strategic digital asset and DeFi initiatives.
According to Odaily, Nasdaq-listed Mangoceuticals has announced a collaboration with Cube Group to establish a subsidiary named Mango DAT. This initiative aims to develop a $100 million digital asset treasury strategy, with a primary focus on investing in SOL. The necessary funds will be raised through an ATM financing plan and the sale of common stock. Additionally, the company has filed a trademark application for 'MULTI-DAT' with the United States Patent and Trademark Office to promote a series of strategic digital asset and DeFi initiatives.
Market Cautious as Put Options Remain Priced Higher Than Calls
According to Foresight News, data from Glassnode indicates that the 25D skew, which measures the implied volatility of put options minus that of call options, remains positive. This suggests that put options are still priced higher than call options, reflecting the market's ongoing caution towards downside risks. The current skew pattern does not align with the typical pattern observed before a breakout.
According to Foresight News, data from Glassnode indicates that the 25D skew, which measures the implied volatility of put options minus that of call options, remains positive. This suggests that put options are still priced higher than call options, reflecting the market's ongoing caution towards downside risks. The current skew pattern does not align with the typical pattern observed before a breakout.
COINBASE SUES THREE U.S. STATES
Coinbase has filed lawsuits against Michigan, Illinois, and Connecticut.
The exchange wants clarity that prediction markets are regulated by the CFTC, not treated as gambling by state regulators.
Coinbase has filed lawsuits against Michigan, Illinois, and Connecticut.
The exchange wants clarity that prediction markets are regulated by the CFTC, not treated as gambling by state regulators.
Whale Opens High-Leverage Bitcoin Short Position
$BTC
According to Odaily, Onchain Lens has reported that a significant investor, often referred to as a 'whale,' has opened a Bitcoin short position with 40x leverage. The current position is valued at $99 million, equivalent to 1,125.2 BTC, with a liquidation price set at $89,130.95. In previous trades, this investor has incurred losses exceeding $3 million.
#BinanceBlockchainWeek #USNonFarmPayrollReport #
$BTC
According to Odaily, Onchain Lens has reported that a significant investor, often referred to as a 'whale,' has opened a Bitcoin short position with 40x leverage. The current position is valued at $99 million, equivalent to 1,125.2 BTC, with a liquidation price set at $89,130.95. In previous trades, this investor has incurred losses exceeding $3 million.
#BinanceBlockchainWeek #USNonFarmPayrollReport #
Ethereum Developers Name Post-Glamsterdam Upgrade 'Hegota'
$ETH
According to Foresight News, Ethereum core developers have officially named the post-Glamsterdam upgrade 'Hegota,' combining the naming conventions of Bogota and Heze. Developers have indicated that the main Ethereum Improvement Proposal (EIP) for Hegota will be determined in February. Meanwhile, work on Glamsterdam, Ethereum's first planned upgrade for 2026, is ongoing. Ethereum developers have also clarified the network's development cycle for 2026, maintaining a biannual release schedule. The All Core Developers Execution (ACDE) meeting is set to resume on January 5, where developers will finalize the scope of Glamsterdam. Glamsterdam is expected to be implemented in the first half of 2026, with Hegota following later in the year.
$ETH
According to Foresight News, Ethereum core developers have officially named the post-Glamsterdam upgrade 'Hegota,' combining the naming conventions of Bogota and Heze. Developers have indicated that the main Ethereum Improvement Proposal (EIP) for Hegota will be determined in February. Meanwhile, work on Glamsterdam, Ethereum's first planned upgrade for 2026, is ongoing. Ethereum developers have also clarified the network's development cycle for 2026, maintaining a biannual release schedule. The All Core Developers Execution (ACDE) meeting is set to resume on January 5, where developers will finalize the scope of Glamsterdam. Glamsterdam is expected to be implemented in the first half of 2026, with Hegota following later in the year.
Crypto News Today: Crypto Market Cap Drops to Eight-Month Low as Analysts Warn of Further Downside
The global cryptocurrency market capitalization has fallen to its lowest level in eight months, wiping out much of 2025’s gains and reinforcing concerns that the market has entered a deeper corrective phase.
According to data from CoinGecko, total crypto market value slipped to $2.93 trillion in late Thursday trading — the weakest level since April. The decline marks a sharp reversal from the market’s early-October peak near $4.4 trillion, representing a drawdown of roughly 33% from all-time highs.
Yearly Gains Erased as Market Returns to Range Lows
The pullback has erased nearly all of this year’s gains, with total crypto market capitalization now down about 14% year-to-date. After bottoming near $2.5 trillion in April, the market staged a strong recovery through mid-year before stalling and rolling over in recent weeks.
Since March 2024, crypto market cap has largely traded within a broad range — and the latest move has pushed valuations back toward the middle of that long-standing consolidation zone.
Bank of Japan Rate Hike Adds to Global Macro Pressure
Macro uncertainty remains a key driver of risk aversion. On Friday, the Bank of Japan raised interest rates to 0.75%, the highest level in three decades, adding another tightening signal at a time when global liquidity conditions remain fragile.
MN Fund co-founder Michaël van de Poppe warned ahead of the decision that short-term downside risk remained elevated.
“Wouldn’t be surprised if BTC continues to cascade and gets itself into a form of capitulation in the next 24 hours, as the trend clearly is down,” van de Poppe said, adding that altcoins could see 10%–20% drawdowns before stabilizing.
Despite those concerns, Bitcoin briefly rebounded more than 2%, underscoring the market’s heightened volatility and conflicting macro signals.
.
The global cryptocurrency market capitalization has fallen to its lowest level in eight months, wiping out much of 2025’s gains and reinforcing concerns that the market has entered a deeper corrective phase.
According to data from CoinGecko, total crypto market value slipped to $2.93 trillion in late Thursday trading — the weakest level since April. The decline marks a sharp reversal from the market’s early-October peak near $4.4 trillion, representing a drawdown of roughly 33% from all-time highs.
Yearly Gains Erased as Market Returns to Range Lows
The pullback has erased nearly all of this year’s gains, with total crypto market capitalization now down about 14% year-to-date. After bottoming near $2.5 trillion in April, the market staged a strong recovery through mid-year before stalling and rolling over in recent weeks.
Since March 2024, crypto market cap has largely traded within a broad range — and the latest move has pushed valuations back toward the middle of that long-standing consolidation zone.
Bank of Japan Rate Hike Adds to Global Macro Pressure
Macro uncertainty remains a key driver of risk aversion. On Friday, the Bank of Japan raised interest rates to 0.75%, the highest level in three decades, adding another tightening signal at a time when global liquidity conditions remain fragile.
MN Fund co-founder Michaël van de Poppe warned ahead of the decision that short-term downside risk remained elevated.
“Wouldn’t be surprised if BTC continues to cascade and gets itself into a form of capitulation in the next 24 hours, as the trend clearly is down,” van de Poppe said, adding that altcoins could see 10%–20% drawdowns before stabilizing.
Despite those concerns, Bitcoin briefly rebounded more than 2%, underscoring the market’s heightened volatility and conflicting macro signals.
.
BNB Surpasses 840 USDT with a 0.68% Increase in 24 Hours
On Dec 19, 2025, 03:32 AM(UTC). According to Binance Market Data, BNB has crossed the 840 USDT benchmark and is now trading at 841.409973 USDT, with a narrowed 0.68% increase in 24 hours.
$BTC $BNB
#BinanceBlockchainWeek #BTCVSGOLD #
On Dec 19, 2025, 03:32 AM(UTC). According to Binance Market Data, BNB has crossed the 840 USDT benchmark and is now trading at 841.409973 USDT, with a narrowed 0.68% increase in 24 hours.
$BTC $BNB
#BinanceBlockchainWeek #BTCVSGOLD #
SEC's Classification of Bitcoin Mining Hosting as Securities Sparks Debate
AI Summary
According to Cointelegraph, the U.S. Securities and Exchange Commission (SEC) has raised concerns about third-party Bitcoin mining hosting services, suggesting they could be classified as securities. This stance has been met with strong opposition from industry leaders. The SEC has filed a lawsuit against Bitcoin mining company VBit and its founder, Danh Vo, in a Delaware federal court. The lawsuit accuses them of fraud and misappropriating approximately $48 million from investors between 2018 and 2022 by selling more hosting agreements than there were mining rigs available.
The SEC argues that VBit's hosting agreements qualify as investment contracts under the Howey test, which defines securities. The agency claims that investors purchased these agreements with the expectation of earning passive income, relying solely on VBit's efforts to generate profits, as they did not have control over the mining rigs they supposedly acquired. This approach by the SEC is seen as a continuation of its enforcement strategy under the Biden administration, which has been criticized by crypto advocates for broadly categorizing cryptocurrencies and related businesses under securities laws.
$BTC
The SEC further alleges that VBit's operations did not adhere to industry standards, with investors unable to monitor their rigs and the company maintaining full control. VBit reportedly directed hashrate into a mining pool it controlled, a factor that contributed to the SEC's classification of VBit's hosted Bitcoin mining agreements as securities. The SEC's filing states that the fortunes of each investor were linked to the performance of the VBit mining pool, with increased investor participation purportedly enhancing the chances of earning more Bitcoins.
#CPIWatch #BTCVSGOLD
AI Summary
According to Cointelegraph, the U.S. Securities and Exchange Commission (SEC) has raised concerns about third-party Bitcoin mining hosting services, suggesting they could be classified as securities. This stance has been met with strong opposition from industry leaders. The SEC has filed a lawsuit against Bitcoin mining company VBit and its founder, Danh Vo, in a Delaware federal court. The lawsuit accuses them of fraud and misappropriating approximately $48 million from investors between 2018 and 2022 by selling more hosting agreements than there were mining rigs available.
The SEC argues that VBit's hosting agreements qualify as investment contracts under the Howey test, which defines securities. The agency claims that investors purchased these agreements with the expectation of earning passive income, relying solely on VBit's efforts to generate profits, as they did not have control over the mining rigs they supposedly acquired. This approach by the SEC is seen as a continuation of its enforcement strategy under the Biden administration, which has been criticized by crypto advocates for broadly categorizing cryptocurrencies and related businesses under securities laws.
$BTC
The SEC further alleges that VBit's operations did not adhere to industry standards, with investors unable to monitor their rigs and the company maintaining full control. VBit reportedly directed hashrate into a mining pool it controlled, a factor that contributed to the SEC's classification of VBit's hosted Bitcoin mining agreements as securities. The SEC's filing states that the fortunes of each investor were linked to the performance of the VBit mining pool, with increased investor participation purportedly enhancing the chances of earning more Bitcoins.
#CPIWatch #BTCVSGOLD
How to Earn $2–$3 Every Few Hours on Binance Without Investing Money 🚀
Many people think crypto means you must put in money or take big risks. That’s not true. On Binance, you can earn free money by using your time, not your cash. This is perfect for beginners, students, or anyone who wants extra income 💡.
First, create a Binance account and complete KYC verification ✅. After that, explore the app. Sometimes you can even get free rewards from posts and events 🎁
1️⃣ Earn by Posting on Binance Feed 📝
Binance rewards users for posting content on its Feed. You can post:
Memes 😂
Market updates 📊
Simple charts 📈
Your opinion
Post 2–3 times daily. If you stay active, you can earn $0.50 to $3 per day 💸.
Tip: Use free apps like Canva to make simple memes or posts 🎨.
2️⃣ Learn and Earn Free Coins 🎓
Binance also gives free coins for learning. You watch short videos and answer easy questions. After that, free tokens go into your wallet 🔐.
Path: More → Learn and Earn
This is not daily, but when available, you can earn $0.50 to $1 easily 💰.
3️⃣ Do Simple Tasks for Rewards 🎯
Binance offers rewards for easy tasks like:
Opening a Web3 wallet 🌐
Watching short tutorials
Following new projects
These tasks are in the Task Center / Rewards Center. Most take only a few minutes and pay $0.50 to $1 🔥.
⏱️ Simple Daily Plan to Earn $2.75+
You can earn around $2.75 or more daily like this:
Post twice on Feed (30 min) → $1.50
Complete one Web3 task (10 min) → $0.75
Do one small task (10 min) → $0.50
Total time: 40–45 minutes
Total earning: $2.75+ ✅
💡 Easy Tips to Earn More
Post daily on Binance Feed (simple posts work) 🔁
Use ChatGPT or social media for ideas 🧠
Check Learn and Earn every week
Keep your Web3 wallet active for surprise rewards 🎁
🏁 Final Words
You don’t need money to earn on Binance 💸. Just spend a little time each day and earn small but steady income while learning crypto. It’s safe, beginner-friendly, and a great way to start your crypto journey.
Many people think crypto means you must put in money or take big risks. That’s not true. On Binance, you can earn free money by using your time, not your cash. This is perfect for beginners, students, or anyone who wants extra income 💡.
First, create a Binance account and complete KYC verification ✅. After that, explore the app. Sometimes you can even get free rewards from posts and events 🎁
1️⃣ Earn by Posting on Binance Feed 📝
Binance rewards users for posting content on its Feed. You can post:
Memes 😂
Market updates 📊
Simple charts 📈
Your opinion
Post 2–3 times daily. If you stay active, you can earn $0.50 to $3 per day 💸.
Tip: Use free apps like Canva to make simple memes or posts 🎨.
2️⃣ Learn and Earn Free Coins 🎓
Binance also gives free coins for learning. You watch short videos and answer easy questions. After that, free tokens go into your wallet 🔐.
Path: More → Learn and Earn
This is not daily, but when available, you can earn $0.50 to $1 easily 💰.
3️⃣ Do Simple Tasks for Rewards 🎯
Binance offers rewards for easy tasks like:
Opening a Web3 wallet 🌐
Watching short tutorials
Following new projects
These tasks are in the Task Center / Rewards Center. Most take only a few minutes and pay $0.50 to $1 🔥.
⏱️ Simple Daily Plan to Earn $2.75+
You can earn around $2.75 or more daily like this:
Post twice on Feed (30 min) → $1.50
Complete one Web3 task (10 min) → $0.75
Do one small task (10 min) → $0.50
Total time: 40–45 minutes
Total earning: $2.75+ ✅
💡 Easy Tips to Earn More
Post daily on Binance Feed (simple posts work) 🔁
Use ChatGPT or social media for ideas 🧠
Check Learn and Earn every week
Keep your Web3 wallet active for surprise rewards 🎁
🏁 Final Words
You don’t need money to earn on Binance 💸. Just spend a little time each day and earn small but steady income while learning crypto. It’s safe, beginner-friendly, and a great way to start your crypto journey.
ok
Binance Academy
--
What Is Rehypothecation Risk in Crypto Lending?
Key Takeaways
Rehypothecation occurs when a lender uses the collateral pledged by its users to secure its own loans or generate yield with third parties.
While it increases liquidity and allows platforms to offer high interest rates, it also creates a complex chain of financial dependency.
The main risk of rehypothecation happens when a third-party borrower defaults, causing the primary lender to become insolvent and leaving depositors unable to withdraw their funds.
Investors can mitigate risks through self-custody. It’s also important to understand the terms of service and recognize the trade-off between high yield and security.
Introduction
Earning passive income through crypto lending platforms has become a popular strategy. Users deposit their digital assets to earn an annual percentage yield (APY), much like a savings account. However, unlike traditional banking, the mechanisms generating these yields often involve a practice known as rehypothecation.
While rehypothecation is a standard practice in traditional finance (TradFi), its application in the crypto sector operates with fewer regulations. Understanding this concept is important for any investor entrusting their assets to a centralized exchange (CEX) or lending platform.
Understanding Hypothecation vs. Rehypothecation
Hypothecation is the act of pledging an asset as collateral to secure a loan. For example, when you take out a mortgage, your house is hypothecated to the bank. You retain ownership, but the bank has a claim on it if you default. In crypto, this happens when you lock bitcoin to mint a stablecoin or take a cash loan.
Rehypothecation occurs when the entity holding your collateral (the bank or crypto platform) takes those pledged assets and uses them for their own purposes, usually pledging them as collateral for their own trading or lending them to a third party. In other words, you lend your money to a platform, and the platform lends your money to someone else.
How Rehypothecation Works in Crypto
Rehypothecation is the engine behind many high-yield crypto accounts. Here is the typical flow of funds:
Deposit: Let’s suppose you deposit 1 BTC into a centralized lending platform offering 5% APY.
Re-lending: The platform takes your 1 BTC and lends it to an institutional borrower (such as a hedge fund or market maker) at 8% interest.
The spread: The platform pays you 5% and keeps the 3% difference as profit.
From the platform's perspective, this maximizes capital efficiency. However, it means your bitcoin is no longer sitting in the platform's cold storage; it’s in the hands of a third party.
The Core Risks of Rehypothecation
When assets are rehypothecated, the depositor is exposed to "counterparty risk." This creates a house-of-cards scenario where the failure of one entity can trigger a collapse of others.
1. Counterparty insolvency
If the hedge fund (Borrower B) makes bad trades and loses the BTC they borrowed from your platform (Lender A), they cannot repay the loan. Consequently, Lender A now has a hole in its balance sheet and cannot repay you. You are relying on the financial health of entities you don’t really know.
2. Bank run
In times of market volatility, users often rush to withdraw their funds simultaneously. If a platform has rehypothecated a large percentage of user funds into illiquid investments or long-term loans, it likely won’t have the liquid cash to honor withdrawal requests. This usually leads to a freeze on withdrawals and potential bankruptcy.
3. Unsecured creditor status
In traditional brokerage accounts (like in the US), rehypothecation is capped (usually at 140% of the loan balance) and insured (SIPC). In crypto, regulations are still evolving. Terms of Service for many lending platforms state that upon deposit, you transfer ownership of the assets to them. In the event of bankruptcy, depositors are often treated as unsecured creditors, meaning they are last in line to be repaid.
Examples: The 2022 Liquidity Crisis
The risks of rehypothecation became a reality during the crypto market crash of 2022. Several major platforms collapsed due to aggressive rehypothecation strategies:
Celsius Network: The platform rehypothecated user funds into high-risk DeFi protocols and loans. When the market turned, they could not recall liquidity fast enough to meet user withdrawals.
Voyager Digital: Voyager lent hundreds of millions of dollars of user assets to a single hedge fund, Three Arrows Capital (3AC). When 3AC defaulted due to its own trading losses, Voyager became insolvent.
CeFi vs. DeFi Rehypothecation
It’s important to distinguish between centralized and decentralized finance. CeFi operations are more opaque. Users often deposit funds into a "black box" without knowing who the counterparty is or how much leverage is being used.
DeFi rehypothecation exists (often via liquid staking or wrapping), but it is generally transparent. Users can verify on the blockchain where their assets are deployed. However, DeFi introduces smart contract risk, where bugs in the code can lead to loss of funds.
How to Mitigate Rehypothecation Risk
Self-custody: The most effective way to avoid rehypothecation risk is to hold your assets in a non-custodial crypto wallet. If you hold the private keys, the assets can’t be lent out.
Read the fine print: Before using a centralized lender, read the Terms of Service. Look for clauses regarding "transfer of title" or the platform's right to "pledge, re-pledge, or hypothecate" your assets.
Assess the yield: Be skeptical of high yields. If a platform offers significantly higher interest than the market average, it often signals they are engaging in riskier rehypothecation strategies to generate that return.
Segregated accounts: While rare in retail, some institutional custodians offer segregated wallets where client assets aren’t mixed with the firm’s assets.
Closing Thoughts
Rehypothecation is a double-edged sword. On one hand, it provides the liquidity necessary for markets to function and allows holders to earn yield on idle assets. On the other hand, it introduces systemic risks that can lead to total loss of funds during bear markets.
For the individual investor, the choice comes down to risk tolerance. Remember that old saying: "not your keys, not your coins". Keeping control over your funds provides total protection against rehypothecation risk.
Further Reading
What Are Wrapped Tokens?
What Is Crypto Staking and How Does It Work?
Hot vs. Cold Wallet: Which Crypto Wallet Should You Use?
Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.
Rehypothecation occurs when a lender uses the collateral pledged by its users to secure its own loans or generate yield with third parties.
While it increases liquidity and allows platforms to offer high interest rates, it also creates a complex chain of financial dependency.
The main risk of rehypothecation happens when a third-party borrower defaults, causing the primary lender to become insolvent and leaving depositors unable to withdraw their funds.
Investors can mitigate risks through self-custody. It’s also important to understand the terms of service and recognize the trade-off between high yield and security.
Introduction
Earning passive income through crypto lending platforms has become a popular strategy. Users deposit their digital assets to earn an annual percentage yield (APY), much like a savings account. However, unlike traditional banking, the mechanisms generating these yields often involve a practice known as rehypothecation.
While rehypothecation is a standard practice in traditional finance (TradFi), its application in the crypto sector operates with fewer regulations. Understanding this concept is important for any investor entrusting their assets to a centralized exchange (CEX) or lending platform.
Understanding Hypothecation vs. Rehypothecation
Hypothecation is the act of pledging an asset as collateral to secure a loan. For example, when you take out a mortgage, your house is hypothecated to the bank. You retain ownership, but the bank has a claim on it if you default. In crypto, this happens when you lock bitcoin to mint a stablecoin or take a cash loan.
Rehypothecation occurs when the entity holding your collateral (the bank or crypto platform) takes those pledged assets and uses them for their own purposes, usually pledging them as collateral for their own trading or lending them to a third party. In other words, you lend your money to a platform, and the platform lends your money to someone else.
How Rehypothecation Works in Crypto
Rehypothecation is the engine behind many high-yield crypto accounts. Here is the typical flow of funds:
Deposit: Let’s suppose you deposit 1 BTC into a centralized lending platform offering 5% APY.
Re-lending: The platform takes your 1 BTC and lends it to an institutional borrower (such as a hedge fund or market maker) at 8% interest.
The spread: The platform pays you 5% and keeps the 3% difference as profit.
From the platform's perspective, this maximizes capital efficiency. However, it means your bitcoin is no longer sitting in the platform's cold storage; it’s in the hands of a third party.
The Core Risks of Rehypothecation
When assets are rehypothecated, the depositor is exposed to "counterparty risk." This creates a house-of-cards scenario where the failure of one entity can trigger a collapse of others.
1. Counterparty insolvency
If the hedge fund (Borrower B) makes bad trades and loses the BTC they borrowed from your platform (Lender A), they cannot repay the loan. Consequently, Lender A now has a hole in its balance sheet and cannot repay you. You are relying on the financial health of entities you don’t really know.
2. Bank run
In times of market volatility, users often rush to withdraw their funds simultaneously. If a platform has rehypothecated a large percentage of user funds into illiquid investments or long-term loans, it likely won’t have the liquid cash to honor withdrawal requests. This usually leads to a freeze on withdrawals and potential bankruptcy.
3. Unsecured creditor status
In traditional brokerage accounts (like in the US), rehypothecation is capped (usually at 140% of the loan balance) and insured (SIPC). In crypto, regulations are still evolving. Terms of Service for many lending platforms state that upon deposit, you transfer ownership of the assets to them. In the event of bankruptcy, depositors are often treated as unsecured creditors, meaning they are last in line to be repaid.
Examples: The 2022 Liquidity Crisis
The risks of rehypothecation became a reality during the crypto market crash of 2022. Several major platforms collapsed due to aggressive rehypothecation strategies:
Celsius Network: The platform rehypothecated user funds into high-risk DeFi protocols and loans. When the market turned, they could not recall liquidity fast enough to meet user withdrawals.
Voyager Digital: Voyager lent hundreds of millions of dollars of user assets to a single hedge fund, Three Arrows Capital (3AC). When 3AC defaulted due to its own trading losses, Voyager became insolvent.
CeFi vs. DeFi Rehypothecation
It’s important to distinguish between centralized and decentralized finance. CeFi operations are more opaque. Users often deposit funds into a "black box" without knowing who the counterparty is or how much leverage is being used.
DeFi rehypothecation exists (often via liquid staking or wrapping), but it is generally transparent. Users can verify on the blockchain where their assets are deployed. However, DeFi introduces smart contract risk, where bugs in the code can lead to loss of funds.
How to Mitigate Rehypothecation Risk
Self-custody: The most effective way to avoid rehypothecation risk is to hold your assets in a non-custodial crypto wallet. If you hold the private keys, the assets can’t be lent out.
Read the fine print: Before using a centralized lender, read the Terms of Service. Look for clauses regarding "transfer of title" or the platform's right to "pledge, re-pledge, or hypothecate" your assets.
Assess the yield: Be skeptical of high yields. If a platform offers significantly higher interest than the market average, it often signals they are engaging in riskier rehypothecation strategies to generate that return.
Segregated accounts: While rare in retail, some institutional custodians offer segregated wallets where client assets aren’t mixed with the firm’s assets.
Closing Thoughts
Rehypothecation is a double-edged sword. On one hand, it provides the liquidity necessary for markets to function and allows holders to earn yield on idle assets. On the other hand, it introduces systemic risks that can lead to total loss of funds during bear markets.
For the individual investor, the choice comes down to risk tolerance. Remember that old saying: "not your keys, not your coins". Keeping control over your funds provides total protection against rehypothecation risk.
Further Reading
What Are Wrapped Tokens?
What Is Crypto Staking and How Does It Work?
Hot vs. Cold Wallet: Which Crypto Wallet Should You Use?
Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.
U.S. Financial Markets React to Federal Reserve's Rate Cut Amid AI Challenges
AI Summary
According to PANews, despite the Federal Reserve's anticipated interest rate cut and dovish signals exceeding market expectations, the U.S. financial markets have not uniformly shifted towards risk appetite. Instead, ongoing challenges in the artificial intelligence sector, such as valuation pressures, extended capital expenditure return cycles, and increased uncertainty in profit realization, are influencing market sentiment. This has resulted in a complex divergence in the performance of U.S. stocks and bonds.
In the bond market, long-term U.S. Treasury yields have risen this week, with the 10-year yield increasing by about 5 basis points during the typical 'Fed rate cut week.' This counterintuitive trend suggests that the market is not simply pricing the rate cut as the start of comprehensive easing. Instead, it is reassessing inflation persistence, the pressure of U.S. debt supply amid fiscal deficits, and the marginal impact of rate cuts on the real economy and corporate profits. From a pricing perspective, this appears to be an early discounting of the 'effectiveness of easing policies.'
The key determinant of market direction remains inflation data. The U.S. November CPI annual rate, core CPI annual rate, month-on-month data, and weekly initial jobless claims, released on Thursday evening, will serve as the core pricing anchors for the dollar and risk assets. With the current CPI still around 3%, significantly above the 2% target, market focus has shifted from 'whether to cut rates' to 'whether rate cuts are reasonable and sustainable.' If CPI data falls significantly below expectations, it will further validate the Fed's current shift towards easing, potentially exerting downward pressure on the dollar and providing some recovery space for risk assets. Conversely, if inflation remains strong or stubborn, the market will reassess the risks of 'premature easing,' possibly leading to a dollar rebound and increased volatility in .
AI Summary
According to PANews, despite the Federal Reserve's anticipated interest rate cut and dovish signals exceeding market expectations, the U.S. financial markets have not uniformly shifted towards risk appetite. Instead, ongoing challenges in the artificial intelligence sector, such as valuation pressures, extended capital expenditure return cycles, and increased uncertainty in profit realization, are influencing market sentiment. This has resulted in a complex divergence in the performance of U.S. stocks and bonds.
In the bond market, long-term U.S. Treasury yields have risen this week, with the 10-year yield increasing by about 5 basis points during the typical 'Fed rate cut week.' This counterintuitive trend suggests that the market is not simply pricing the rate cut as the start of comprehensive easing. Instead, it is reassessing inflation persistence, the pressure of U.S. debt supply amid fiscal deficits, and the marginal impact of rate cuts on the real economy and corporate profits. From a pricing perspective, this appears to be an early discounting of the 'effectiveness of easing policies.'
The key determinant of market direction remains inflation data. The U.S. November CPI annual rate, core CPI annual rate, month-on-month data, and weekly initial jobless claims, released on Thursday evening, will serve as the core pricing anchors for the dollar and risk assets. With the current CPI still around 3%, significantly above the 2% target, market focus has shifted from 'whether to cut rates' to 'whether rate cuts are reasonable and sustainable.' If CPI data falls significantly below expectations, it will further validate the Fed's current shift towards easing, potentially exerting downward pressure on the dollar and providing some recovery space for risk assets. Conversely, if inflation remains strong or stubborn, the market will reassess the risks of 'premature easing,' possibly leading to a dollar rebound and increased volatility in .
Cash Levels Reach Record Low as Stock and Commodity Allocations Rise
According to ChainCatcher, a survey conducted by Bank of America among global fund managers reveals that cash levels have dropped to a record low of 3.3%, down from the previous 3.7%. Meanwhile, allocations in stocks and commodities have increased to their highest levels since February 2022.
According to ChainCatcher, a survey conducted by Bank of America among global fund managers reveals that cash levels have dropped to a record low of 3.3%, down from the previous 3.7%. Meanwhile, allocations in stocks and commodities have increased to their highest levels since February 2022.
Wall Street Analyst Predicts Market Shift and Economic Changes by 2026
AI Summary
According to Odaily, renowned Wall Street bear Peter Berezin forecasts a significant shift in the stock market by early 2026, as investors move from tech stocks to non-tech stocks and from growth stocks to value stocks. Berezin anticipates that these changes will lead to the S&P 500 index closing at 5280 points in 2026, marking a 23% annual decline, while the Nasdaq Composite Index is expected to fall by 31%. Additionally, the U.S. dollar is predicted to weaken, with the yen significantly appreciating, and the dollar-yen exchange rate expected to reach 115 by the end of the year. Gold prices are projected to hit new historical highs. Growing concerns over a U.S. economic recession are likely to prompt the Federal Reserve to accelerate interest rate cuts in the second half of 2026. By December 2026, the federal funds rate is expected to decrease to 2.25%, and the yield on 10-year U.S. Treasury bonds is anticipated to drop to 3.1%.
$BTC
AI Summary
According to Odaily, renowned Wall Street bear Peter Berezin forecasts a significant shift in the stock market by early 2026, as investors move from tech stocks to non-tech stocks and from growth stocks to value stocks. Berezin anticipates that these changes will lead to the S&P 500 index closing at 5280 points in 2026, marking a 23% annual decline, while the Nasdaq Composite Index is expected to fall by 31%. Additionally, the U.S. dollar is predicted to weaken, with the yen significantly appreciating, and the dollar-yen exchange rate expected to reach 115 by the end of the year. Gold prices are projected to hit new historical highs. Growing concerns over a U.S. economic recession are likely to prompt the Federal Reserve to accelerate interest rate cuts in the second half of 2026. By December 2026, the federal funds rate is expected to decrease to 2.25%, and the yield on 10-year U.S. Treasury bonds is anticipated to drop to 3.1%.
$BTC
UK Cryptocurrency Ownership Declines Amid Stable Awareness Levels
$BTC
According to Foresight News, a report by the UK's Financial Conduct Authority reveals a decrease in the proportion of adults holding cryptocurrency, dropping to around 8% this year. This marks the first year-on-year decline in cryptocurrency ownership in the UK since 2021. In 2024, approximately 7 million adults, representing 12% of the adult population, are expected to hold cryptocurrency, an increase from 10% in 2022 and 4.4% in 2021.
The survey also indicates that public awareness of cryptocurrency remains stable at 91%, consistent with the previous year. Among those holding cryptocurrency, the majority are expected to increase their holdings in 2025 compared to 2024. About 21% of users possess cryptocurrency valued between £1,001 and £5,000, while the proportion of users holding cryptocurrency worth less than £100 has decreased.
$BTC
According to Foresight News, a report by the UK's Financial Conduct Authority reveals a decrease in the proportion of adults holding cryptocurrency, dropping to around 8% this year. This marks the first year-on-year decline in cryptocurrency ownership in the UK since 2021. In 2024, approximately 7 million adults, representing 12% of the adult population, are expected to hold cryptocurrency, an increase from 10% in 2022 and 4.4% in 2021.
The survey also indicates that public awareness of cryptocurrency remains stable at 91%, consistent with the previous year. Among those holding cryptocurrency, the majority are expected to increase their holdings in 2025 compared to 2024. About 21% of users possess cryptocurrency valued between £1,001 and £5,000, while the proportion of users holding cryptocurrency worth less than £100 has decreased.
Visa Expands U.S. Network to Support Stablecoin Settlements
According to ChainCatcher, payment giant Visa is opening its U.S. network to support stablecoin settlements, aiming to expand its cryptocurrency-related products and services. Visa will allow U.S. institutions to use Circle Internet Group Inc.'s USDC tokens for transaction settlements via the Solana blockchain. Cross River Bank and Lead Bank are the first institutions to utilize this service
$USDC .
According to ChainCatcher, payment giant Visa is opening its U.S. network to support stablecoin settlements, aiming to expand its cryptocurrency-related products and services. Visa will allow U.S. institutions to use Circle Internet Group Inc.'s USDC tokens for transaction settlements via the Solana blockchain. Cross River Bank and Lead Bank are the first institutions to utilize this service
$USDC .
Matador Technologies Revises Financing Agreement to Raise $75 Million
$BTC
According to ChainCatcher, Canadian-listed Bitcoin treasury company Matador Technologies has announced a revision to its previous $100 million convertible note financing agreement. The company disclosed that it has signed a registration rights agreement with investors, allowing it to raise a total of $75 million through the issuance of additional notes. The funds will be used to purchase Bitcoin for Matador's balance sheet. However, Matador Technologies has removed the previously announced plan to hold 6,000 Bitcoins by 2027 from its latest disclosure.
#CPIWatch
#BTCVSGOLD
$BTC
According to ChainCatcher, Canadian-listed Bitcoin treasury company Matador Technologies has announced a revision to its previous $100 million convertible note financing agreement. The company disclosed that it has signed a registration rights agreement with investors, allowing it to raise a total of $75 million through the issuance of additional notes. The funds will be used to purchase Bitcoin for Matador's balance sheet. However, Matador Technologies has removed the previously announced plan to hold 6,000 Bitcoins by 2027 from its latest disclosure.
#CPIWatch
#BTCVSGOLD
Check Guy’s… this is exactly why I always say trust the levels I give you 🔥🔥🔥
I clearly mentioned to buy $BTC in the $83k – $85k zone, when fear was high and most people were panicking. And look now… EXACTLY as predicted, Bitcoin bounced hard from the bottom and delivered a clean recovery move back above $87k.
I asked everyone to hold strong and open longs near the lows, and those who trusted the plan are already sitting on solid profits. This was a textbook execution, played perfectly from the demand zone straight into today’s bullish push.
BTC is still looking strong
Momentum alive
Structure bullish
And the next push toward $88k, $89k, and $90k is loading 🚀🔥
Congratulations to every single follower who trusted the call and stayed disciplined.
This is how smart money trades.
Stay with me… more high-probability setups are coming.
$BTC
BTCUSDT
Perp
I clearly mentioned to buy $BTC in the $83k – $85k zone, when fear was high and most people were panicking. And look now… EXACTLY as predicted, Bitcoin bounced hard from the bottom and delivered a clean recovery move back above $87k.
I asked everyone to hold strong and open longs near the lows, and those who trusted the plan are already sitting on solid profits. This was a textbook execution, played perfectly from the demand zone straight into today’s bullish push.
BTC is still looking strong
Momentum alive
Structure bullish
And the next push toward $88k, $89k, and $90k is loading 🚀🔥
Congratulations to every single follower who trusted the call and stayed disciplined.
This is how smart money trades.
Stay with me… more high-probability setups are coming.
$BTC
BTCUSDT
Perp
BiSwap Website Compromised by Malicious URL, Redirects to Gambling Site
According to PANews, CertiK has reported that the official website of BiSwap, a cross-chain trading platform on Binance Smart Chain (BSC), has been infected with a malicious URL. This URL redirects users to a gambling website. Users are advised to exercise caution.
$BNB
According to PANews, CertiK has reported that the official website of BiSwap, a cross-chain trading platform on Binance Smart Chain (BSC), has been infected with a malicious URL. This URL redirects users to a gambling website. Users are advised to exercise caution.
$BNB
Charles Schwab Integrates Solana Futures into Trading Platform
According to Odaily, Charles Schwab, a financial services company with a market capitalization of $11 trillion, has incorporated Solana futures into its trading platform. This move marks a significant development in the integration of cryptocurrency products into mainstream financial services.$SOL
According to Odaily, Charles Schwab, a financial services company with a market capitalization of $11 trillion, has incorporated Solana futures into its trading platform. This move marks a significant development in the integration of cryptocurrency products into mainstream financial services.$SOL
Bitcoin Miners Shift to AI Data Centers Amid Rising Costs and Regulatory Challenges
AI Summary
According to Foresight News, Bitcoin miners are increasingly facing survival challenges due to declining Bitcoin prices and rising operational costs. In response, many are transitioning to providing AI infrastructure services as a means of diversification.
The core issue for Bitcoin mining companies is the instability of mining revenue coupled with consistently rising costs, making their traditional business model unsustainable. To mitigate these challenges, miners are leveraging their existing facilities and infrastructure to rent out data center space to large tech companies. This shift is seen as a way to alleviate intense competition and enhance the overall health and stability of the industry.
Bitcoin mining companies face significant operational risks due to their reliance on a single business model. Their revenue is heavily dependent on the volatile Bitcoin price, while costs such as increased mining difficulty, rising electricity prices, and hardware upgrades continue to climb. This creates a "squeeze" effect, particularly when Bitcoin prices fall, leading to reduced income and high costs. Additionally, regulatory risks loom, such as proposed tax increases on mining in New York State, which could signal broader compliance pressures in the future.
The average cost to mine a Bitcoin has risen to approximately $74,600, according to CoinShares. When factoring in equipment depreciation, the total production cost approaches $130,000 per Bitcoin. With the current Bitcoin price around $91,000, miners face a loss of about $46,000 per Bitcoin produced. Increased mining difficulty and tighter energy policies further weaken the industry's profitability.
The demand for AI data centers is driven by the rapid growth of AI technology, prompting tech giants to seek data center space. Building new data centers is time-consuming,
AI Summary
According to Foresight News, Bitcoin miners are increasingly facing survival challenges due to declining Bitcoin prices and rising operational costs. In response, many are transitioning to providing AI infrastructure services as a means of diversification.
The core issue for Bitcoin mining companies is the instability of mining revenue coupled with consistently rising costs, making their traditional business model unsustainable. To mitigate these challenges, miners are leveraging their existing facilities and infrastructure to rent out data center space to large tech companies. This shift is seen as a way to alleviate intense competition and enhance the overall health and stability of the industry.
Bitcoin mining companies face significant operational risks due to their reliance on a single business model. Their revenue is heavily dependent on the volatile Bitcoin price, while costs such as increased mining difficulty, rising electricity prices, and hardware upgrades continue to climb. This creates a "squeeze" effect, particularly when Bitcoin prices fall, leading to reduced income and high costs. Additionally, regulatory risks loom, such as proposed tax increases on mining in New York State, which could signal broader compliance pressures in the future.
The average cost to mine a Bitcoin has risen to approximately $74,600, according to CoinShares. When factoring in equipment depreciation, the total production cost approaches $130,000 per Bitcoin. With the current Bitcoin price around $91,000, miners face a loss of about $46,000 per Bitcoin produced. Increased mining difficulty and tighter energy policies further weaken the industry's profitability.
The demand for AI data centers is driven by the rapid growth of AI technology, prompting tech giants to seek data center space. Building new data centers is time-consuming,
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