💸 ETH Short Positions Are Exploding

The recent back-to-back crypto hacks are a stark reminder that no transaction is ever 100% secure. To minimize risks, avoid keeping large amounts of funds on exchanges.

Here’s what we got for you today:

• 🚨 Infini Stablecoin Project Hacked for Nearly $50 …

• 💸 Institutions Are Going Heavy on Ethereum Shorts

• 🤝 Crypto Funding Rounds (Annouce Date: 20 Feb to …

• ⭐ Top Highlight in Crypto Today

• 🚀 DePIN: The Next Big Crypto Trend or Just Anothe …

• 🤡 Meme Of The Day

🚨 Infini Stablecoin Project Hacked for Nearly $50M – Another Wake-Up Call for Crypto Security

Another day, another exploit. On February 24, just after the Bybit hack, stablecoin platform Infini was hit—losing nearly $50 million to hackers.

What Happened?

Christian Li, co-founder of Infini, admitted on X (Twitter) that he accidentally exposed his private key, allowing hackers to drain $49.5 million USDC from the project. He took full responsibility and promised to reimburse affected users.

How the Hack Unfolded

📊 On-chain data from Lookonchain:

• The attacker swapped $49.5M USDC into $49.5M DAI.

• Then converted the DAI into 17,696 ETH.

• Finally, the ETH was moved to a new wallet: 0xf…e49—its current location.

Despite the attack, withdrawals on Infini are still operating normally, and the team has reported the incident to cybersecurity authorities. Investigation results are expected in the coming days.

What Is Infini?

Infini is a stablecoin-focused digital banking platform, founded in 2024 by Christian Li and Ryan Sun, with headquarters in Hong Kong.

Since launching, Infini has seen massive adoption, recording a 500% monthly user growth rate (CMGR) within six months.

Its success comes from a user-first approach, providing comprehensive financial tools for payments, investing, and wealth management.

Key Features:

• Seamless fiat-crypto transactions through Visa, Mastercard, Apple Pay, and Google Pay.

• Infini Earn: A delta-neutral strategy offering 10% APY.

• Infini Card: A crypto debit card with traditional banking features.

Despite its rapid growth, this exploit raises serious concerns about the project’s security measures.

The Bybit Connection – Another Major Hack

On the same day, Bybit CEO Ben Zhou confirmed that the exchange had successfully raised $1.2 billion in ETH to cover damages from its own massive hack.

While the total Bybit hack was estimated at $1.5 billion, the platform has almost fully recovered, thanks to backing from major players in the crypto space.

Crypto Security – A Growing Concern

🚨 These back-to-back attacks highlight a growing problem:

• Hackers are more sophisticated than ever.

• Even top-tier projects can be vulnerable.

• Human error (like Li’s private key exposure) remains a major risk factor.

For both projects and investors, security must be a priority. As DeFi continues to grow, so do the threats—and not everyone will recover as fast as Bybit.

💸 Institutions Are Going Heavy on Ethereum Shorts

Ethereum is under pressure. Institutions are placing record short bets on ETH, signaling major caution.

📉 CME’s futures market just hit the highest-ever short positions on Ethereum.

This isn’t retail panic—this is big money betting against ETH.

Short Positions Are Exploding

• ETH short positions jumped 40% in one week.

• Since November 2024, total short positions have skyrocketed 500%.

That’s not just a bearish signal—it’s a warning shot. When institutions move like this, retail traders often follow.

But… Ethereum ETFs Are Seeing Record-Breaking Inflows

• Over $2 billion has poured into Ethereum ETFs in just three weeks.

• A single week saw $854 million in inflows—the highest ever recorded.

So what’s happening? Institutions are playing both sides—shorting ETH on CME while quietly stacking ETFs for the long run.

They’re hedging their risk, not completely abandoning Ethereum.

Ethereum vs. Bitcoin: The Capital Battle

💰 Bitcoin has been stable, but Ethereum is getting more short-term attention.

📊 Some days, ETH inflows have hit $300 million (31 Jan 2025), even surpassing Bitcoin.

📉 ETH has had fewer days with negative inflows compared to BTC.

This tells us one thing—Ethereum isn’t being ignored. Institutions are just using a complex hedge strategy to manage risk.

Ethereum Futures Trading Spikes During Political Chaos

• 📅 Jan 21 (Trump’s Inauguration): ETH futures trading volume spiked on CME.

• 📅 Feb 3 (Market drop after Trump’s tax policy announcement): ETH futures trading surged again.

Every time a major political event shakes up the economy, Ethereum reacts.

Institutions aren’t just watching—they’re actively adjusting their positions.

Ethereum Is Down—But Holding Up Better Than Most Altcoins

📉 ETH is down 45% from its all-time high (Nov 2021).

📉 Most altcoins have dropped 70%+ from their peaks.

Ethereum may not be leading the market, but it’s holding up better than many competitors.

The problem? Since 2024, ETH’s growth has lagged behind Bitcoin.

Market Manipulation or Smart Hedging?

There are two ways to look at this:

1️⃣ Hedging Strategy:

• Institutions short ETH on CME to protect against short-term downside.

• At the same time, they accumulate ETH through ETFs for the long haul.

2️⃣ Price Suppression?

• Some analysts think institutions are deliberately pushing ETH’s price down.

• Once ETH dips enough, they’ll start accumulating at cheaper levels.

Either way, Ethereum might not crash as hard as some expect—but it could stay under pressure in the short term.

Trump’s Administration and Ethereum: What’s Really Going On?

✅ Pro-crypto policies are expected from the new administration.

❌ Yet, ETH is being aggressively shorted, while Bitcoin remains near its all-time high.

This raises some key questions:

• If Trump’s policies favor Ethereum, why are institutions still shorting it?

• Is this just a temporary phase, or do institutions see deeper risks ahead?

Long-term, regulatory clarity could help ETH recover, but for now, institutions are staying cautious.

Ethereum Market Snapshot

Final Takeaways

• ✅ Institutions are aggressively shorting Ethereum, but ETF inflows are signaling long-term confidence.

• ✅ Ethereum’s decline isn’t as bad as other altcoins, but it’s lagging behind Bitcoin.

• ✅ Some believe this is market manipulation, others see it as a strategic hedge.

• ✅ Trump’s policies could eventually support ETH, but for now, institutions are playing it safe.

• ✅ Retail investors should watch institutional money flows closely before making big ETH moves.

Ethereum’s short-term outlook is shaky, but ETF inflows suggest that big money still believes in ETH’s long-term potential.

🤝 Crypto Funding Rounds (Annouce Date: 20 Feb to 21 Feb)

• Projects like Mansa ($7M) and Primus Labs ($6.5M) show that investors are backing long-term infrastructure over short-term hype.

• Most projects have “Weak” X Performance scores, meaning they’re raising millions but struggling to gain real users.

• AMMO (AI Agents) raised $2.5M but has the worst performance (22, Poor).

• Investors are pouring capital into early-stage projects, but most lack real traction.

⭐ Top Highlight in Crypto Today

🚨 Bybit CEO warned that the exchange is struggling to move stablecoins due to a temporary freeze on Ethereum multisig wallet Safe—a direct consequence of Bybit’s $1.4 billion hack on February 21.

• Bybit’s stablecoin reserves are locked—Safe wallet freeze is preventing any movement.

• USDT reserves could be drained within hours, leaving users unable to withdraw.

• Bybit faces a $3 billion liquidity shortfall if an alternative solution isn’t found.

• Even if Safe resumes operations, Bybit is hesitant to use it again after losing $1.4 billion.

This week’s Bybit hack officially became the largest hack in crypto history by value at the time of its occurrence. However, in terms of impact, Mt. Gox remains the most devastating hack, as it handled over 70% of total crypto trading volume when it collapsed in early 2014.

Despite the crisis, Bybit has received widespread praise for how efficiently it handled the situation. Many in the crypto community have even compared Bybit CEO Ben Zhou to the new CZ for his swift and transparent crisis management.

According to X @lookonchain, Bybit has repurchased 266,694 ETH ($742 million) following the hack.

🔹 157,660 ETH ($437.82 million) was acquired through OTC trades with Galaxy Digital, FalconX, and Wintermute.

🔹 109,033 ETH ($304.12 million) was bought from DEXs and CEXs.

This means Bybit has already recovered half of the stolen Ethereum—a strong signal of its commitment to stabilizing operations. At the very least, this move suggests Bybit is not willing to gamble on ETH prices rising further.

🚨 Bybit hackers thought they could launder stolen funds through memecoins—but Pump.fun is shutting them down. Their new AMM is changing the game.

🏁 Alt season has begun.

⏳ Latin America is doubling down on crypto—are you? Binance Research says 95% of investors in Argentina, Brazil, Colombia, and Mexico are increasing their crypto holdings in 2025. Meanwhile, Triple-A predicts 116% growth. New money is flowing in sooner than expected, driving short-term momentum.

🚀 DePIN: The Next Big Crypto Trend or Just Another Hype Cycle?

“The future of infrastructure isn’t owned by governments—it’s owned by you. DePIN is turning real-world assets into blockchain-powered networks, and the market is already worth $27B. Are you in?”

📍 Why It Matters: The way we build and manage infrastructure is changing fast. Decentralized Physical Infrastructure Networks (DePIN) let anyone participate, profit, and power the future—without relying on centralized control. And with AI and blockchain accelerating adoption, the biggest opportunities are unfolding right now.

What is DePIN?

DePIN (Decentralized Physical Infrastructure Network) is blockchain’s next big move—bridging digital and physical infrastructure. Instead of relying on large corporations to provide cloud services, wireless networks, or mapping data, DePIN networks crowdsource these services and reward contributors with crypto.

Imagine earning tokens by sharing your unused computing power, providing 5G coverage, or capturing street-level imagery. That’s what DePIN is about—a decentralized infrastructure, owned and run by its users.

The question is: Is this the next big thing, or just another fleeting trend?

Why is DePIN Gaining Traction?

• $1B invested in 2023, led by Filecoin and Helium raising a combined $500M.

• DePIN revenue fell less than NFT, DEX, and other sectors during the bear market—a sign of resilience.

• Most DePIN projects are built on Solana, benefiting from its scalability and recent network upgrades.

• Projects like Hivemapper are showing real-world adoption, using decentralized mapping to disrupt Google Maps.

DePIN is still early, but the trend is forming. The real question: Is the money following?

1️⃣ Is Smart Money Moving Into DePIN?

📊 Latest data from DeFiLlama & Artemis:

• Transaction Volume: $1M/day (CoinMarketCap).

• Funding Data:

  • $86.65M raised in 16 rounds (biggest surge in Q4 2024: $30M in October).

  • Slowdown in early 2025, but projects like Teneo, Wingbits, and DePIN DAO still raised capital.

  • Major investors: KuCoin Ventures, Borderless Capital, and Framework Ventures.

  • Institutional backing suggests long-term confidence, not just hype.

DePIN is still attracting investment, but will momentum pick up again in Q1/Q2 2025? That’s the key.

2️⃣ What’s Driving the DePIN Narrative?

• AI x DePIN: Osaka’s AI-powered smart city is using Mawari DePIN to power extended reality (XR) experiences.

• Blockchain Innovation: AI + DePIN is unlocking trustless, verifiable AI data for infrastructure.

• Government Support: Local governments are exploring DePIN for cost-effective infrastructure solutions.

The trend is forming, but is it enough to sustain long-term growth?

3️⃣ Top DePIN Projects to Watch

Akash Network – Decentralized Cloud Computing

• What it does: A decentralized cloud marketplace competing with AWS and Google Cloud.

• Data & Insights:

  • $13.1K daily fees (highest in DePIN)

  • $1.32K daily revenue, FDV $711M (-53.3%)

  • Strong revenue, but FDV drop shows investor caution.

Helium – Decentralized Wireless Network

• What it does: A community-powered 5G & IoT network where users deploy hotspots to earn tokens.

• Data & Insights:

  • $7.8K daily fees, $1.8K daily revenue

  • FDV $842.9M (-36.2%)

  • Growing adoption (+24.1% fees), but mixed investor sentiment.

Hivemapper – Decentralized Mapping Network

• What it does: A blockchain-based mapping platform rewarding users for street-level imagery.

• Data & Insights:

  • Highest fee growth (+49.2%)

  • FDV $433.6M (-32.5%)

  • Early-stage, but strong growth potential.

📌 Akash & Helium lead in revenue, while Hivemapper is the fastest-growing DePIN project.

FDV declines suggest investor hesitation, but rising fees indicate real adoption.

📌 Conclusion: Akash & Helium lead in revenue, while Hivemapper is the fastest-growing DePIN project. FDV declines suggest investor hesitation, but rising fees indicate real adoption.

🚨 Risks to Consider

• Scaling Challenges: DePIN relies on mass adoption—but onboarding users is slow.

• Technical Barriers: Complex interfaces limit mainstream accessibility.

• Regulatory Uncertainty: Governments are watching blockchain-powered infrastructure closely.

• Big Tech Competition: Amazon, Google, and telecom giants won’t give up market share easily.

And let’s not forget the red flags:

• Token unlocks could create sell pressure.

• Security risks (bridges, smart contracts) could cripple adoption.

• Are VCs already exiting? If whales are dumping, that’s a major warning sign.

If the risks outweigh the upside, it’s better to stay on the sidelines and wait for clearer opportunities.

Should You Invest in This Narrative?

✅ Signs of a strong opportunity:

• TVL, active users, and volume are growing.

• Smart money is flowing in, signaling a potential breakout.

• Major projects are gaining adoption and securing strong partnerships.

❌ Signs to stay away:

• Whale-driven manipulation: If volume spikes, but only from large trades, it’s a trap.

• Upcoming token unlocks: Could lead to massive sell-offs.

• Regulatory threats: DePIN could be targeted if governments crack down on decentralized infrastructure.

📌 If money, users, and projects are strong → This could be a trend worth joining.

📌 If it’s just hype and VCs are exiting → Better to wait for real confirmation.

🔥 Bottom line: DePIN has potential, but don’t buy into the hype blindly. Follow the data: TVL, active addresses, and smart money flows before making a move. 🚀

🤡 Meme Of The Day

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