PA Daily News | Trump may nominate Kevin Warsh as Federal Reserve Chairman; Binance to convert $1 billion in stablecoin reserves from SAFU Fund into Bitcoin reserves.

Today's top news highlights:

1. Market News: The Trump administration is preparing to confirm Kevin Warsh as the new Federal Reserve Chairman.

2. The U.S. crypto market structure bill passed key Senate procedures despite Democratic opposition.

3. US SEC Chairman: The time is ripe to allow cryptocurrencies into 401(k) retirement accounts.

4. Binance will convert its $1 billion stablecoin reserves in the SAFU Fund into Bitcoin reserves.

5. Cryptocurrency exchange Talos raises $45 million, with Robinhood, a16z, and others participating.

6. AC's new project, Flying Tulip, has completed institutional financing totaling $225.5 million to date.

Macro

Trump said he will announce the nominee for Federal Reserve Chair tonight Beijing time.

According to Jinshi News, US President Trump said he will announce the nominee for Federal Reserve Chair tomorrow morning (tonight Beijing time).

Market news: The Trump administration is preparing to confirm Kevin Warsh as the new Federal Reserve Chairman.

According to Jinshi News, sources familiar with the matter revealed that the Trump administration is preparing to nominate Kevin Warsh as the next Federal Reserve Chairman. Trump stated on Thursday that he plans to announce his nominee for Fed Chair on Friday morning. Sources cautioned that the nominee is not finalized until Trump makes a formal announcement. The White House and Warsh did not immediately respond to requests for comment. One source indicated that Warsh, a former Fed governor and one of the four finalists on Trump's shortlist for the next Fed Chair, visited the White House on Thursday. Other candidates on the shortlist include White House National Economic Council Director Hassett, Fed Governor Christopher Waller, and BlackRock executive Rick Reid.

The UK Financial Services Regulatory Commission launches investigation into stablecoin regulations.

The UK House of Lords Financial Services Regulatory Committee announced today the launch of an inquiry into the growth of stablecoins and proposed regulations, and is now soliciting opinions and evidence. The inquiry will focus on the development of the global stablecoin market, the future trends of pound-denominated stablecoins, the potential impact of stablecoins on the UK economy and financial services, and the applicability of the proposed regulatory framework by the Bank of England and the Financial Conduct Authority (FCA).

Committee Chair Baroness Noakes, DBE, stated that the investigation aims to assess the opportunities and risks posed by the growth of stablecoins and to explore whether the regulatory framework proposed by the Bank of England and the FCA can effectively address these changes. Experts and interested parties in the field are welcome to submit their opinions.

The US Senate failed to advance an appropriations bill, and the federal government is once again facing a shutdown crisis.

According to Xinhua News Agency, the U.S. Senate failed to advance the government funding bill, which had already passed the House of Representatives, in a procedural vote on the 29th, threatening a partial shutdown of the U.S. federal government once again. The Senate voted 55-45, failing to reach the 60 votes needed for the bill to advance. All Democratic senators voted against the bill, and several Republican senators also voted against it. Funding for several U.S. federal departments will run out on January 30th. Currently, lawmakers from both parties are still engaged in tense negotiations to avoid a shutdown. Senate Majority Leader John Thune previously stated that he was considering potentially separating funding allocated to the Department of Homeland Security from the funding bill for separate discussion.

Earlier this month, law enforcement officers from agencies under the Department of Homeland Security shot and killed two U.S. citizens during an operation targeting undocumented immigrants in Minneapolis, Minnesota. Senate Democrats subsequently indicated they would vote against a government funding bill that included grants to the Department of Homeland Security.

US media: Trump and Democrats reach agreement on funding issues to avoid government shutdown

According to a report by NBC News cited by Jinshi, five sources familiar with the matter revealed that US President Trump and Senate Democrats reached an agreement on Thursday to avoid a prolonged shutdown of most departments of the federal government. This move aims to ease the fierce battle surrounding the Department of Homeland Security and Immigration and Customs Enforcement (ICE). This funding dispute reached a fever pitch after two US citizens were shot and killed by law enforcement officers in Minneapolis. Although funding for several agencies will be temporarily suspended starting at 00:01 local time on Saturday, the impact is expected to be minimal, as most federal employees do not work over the weekend. The Senate may vote on the appropriations agreement as early as Thursday evening. The House of Representatives will return to Washington on Monday, where it will need to pass the bill and send it to President Trump for his signature.

Trump declared a national emergency and imposed tariffs on countries supplying oil to Cuba.

According to Jinshi News, the White House stated that Trump signed an executive order declaring a national emergency and establishing a process to impose tariffs on goods from countries that sell or otherwise supply oil to Cuba.

Spot gold broke through $5,430 per ounce after Trump announced trade threats related to Cuba, rising 1.17% on the day.

SpaceX is reportedly considering merging with Tesla or AI.

According to Jinshi News, previous reports suggested that SpaceX and xAI might consider a merger, but the latest reports indicate that SpaceX is considering two options. Sources familiar with the matter revealed that SpaceX is also considering a merger with Tesla. This suggests that Musk is weighing how to consolidate his business empire. Sources said the company has explored the feasibility of a SpaceX-Tesla partnership, and some investors are pushing the idea. Other sources indicated that SpaceX is also exploring a merger with xAI prior to its IPO. Sources revealed that any deal could attract significant interest from infrastructure funds and Middle Eastern sovereign wealth funds. The deal may also require substantial financing. Sources stated that SpaceX has not yet made a final decision, details may change, and the companies may decide to continue operating independently. Tesla's stock price surged as much as 4.5% in after-hours trading on Thursday.

Related reading: The 2026 investment scripts of 4 billionaire tech moguls: go long on copper mines, go short on oil, and new crypto assets will replace gold and BTC .

The U.S. crypto market structure bill passed key Senate procedures despite opposition from Democrats.

The U.S. Senate Agriculture Committee formally advanced the legislative process for the Cryptocurrency Market Structure Act by a 12-11 partisan vote. This marks the first time the bill has made progress at the Senate committee level, signifying a new stage in its development. However, due to the entirely partisan voting process and the lack of Democratic support, the bill still faces significant obstacles to unanimous Senate passage. Committee Chairman John Boozman, a Republican, stated that significant progress has been made after months of negotiations, and it is time to move forward. However, Democratic chief negotiator Corey Booker criticized the Republicans for withdrawing from negotiations and accused President Trump and his family of profiting from the crypto industry while attempting to push for a regulatory framework lacking ethical constraints. Democrats on the committee unanimously opposed the current version but expressed their willingness to continue negotiations to reach a bipartisan consensus.

The bill still needs to pass the Senate Banking Committee's review, and its progress has been slow due to more controversial provisions involving stablecoin yields. The White House plans to convene another meeting next week to coordinate positions among the crypto industry, the banking sector, both parties, and the administration. If the bill ultimately passes the Senate, it will be integrated with the version that has already passed the House by a large majority before being submitted to the president for signature into law. Analysts point out that the legislative window is narrowing as the midterm elections approach.

The chairman of the US CFTC stated that the agency will develop new rules for prediction markets.

According to Bloomberg, Michael Selig, chairman of the U.S. Commodity Futures Trading Commission (CFTC), stated that the agency will develop new rules for the prediction market industry, while withdrawing a 2024 proposal to ban sports and politics-related prediction contracts, as well as a 2025 warning document issued by staff regarding sports-related contracts. Selig emphasized that the CFTC will support legitimate innovation in the market and reaffirm its exclusive jurisdiction over commodity derivatives.

Selig also stated that the CFTC will work with the Securities and Exchange Commission (SEC) to develop cryptocurrency rules, while also supporting the digital asset legislation being pushed forward by Congress. He pointed out that while regulators can issue rules, formal legislation is still necessary.

The Central Bank of Kazakhstan plans to use cryptocurrencies seized from criminals to expand the country's cryptocurrency reserves.

The National Bank of Kazakhstan's investment subsidiary, NIC, announced that it will use cryptocurrencies seized by law enforcement from criminals, along with foreign currency and gold reserves, to expand the newly established national cryptocurrency reserve fund.

Timur Suleimenov, the company's head, stated that $350 million worth of foreign exchange and gold had been allocated as initial capital for the fund. The central bank currently does not plan to directly hold cryptocurrencies, but rather invests through five selected hedge funds and will also invest in cryptocurrency venture capital funds. President Tokayev stated at a meeting of national financial regulatory agencies that police had shut down 130 illegal cryptocurrency exchanges, seizing assets worth over $5 million, and instructed agencies to develop specific proposals to combat cryptocurrency crime.

The US SEC chairman has withdrawn his previous timeline that the "crypto innovation exemption" would be released this month.

U.S. Securities and Exchange Commission (SEC) Chairman Paul Atkins withdrew his previous timeline for the "crypto innovation exemption" to be released this month, and when asked about the timing, refused to commit to issuing a final rule this month or even next month. He stated that the SEC is still studying the details and is taking a cautious approach to the matter, emphasizing that the progress of the crypto market structure bill currently being considered by Congress could also affect the timing of the exemption rule's release.

These proposed exemption rules aim to provide assurances to companies in specific crypto sectors, such as tokenized securities and DeFi, protecting their activities from SEC enforcement action. Atkins, which expressed hope for a January release in December, changed its tune at an event co-hosted with the CFTC this Thursday, stating that "it needs careful consideration" and that it hopes to see clear direction from Congress.

Crypto custody company Copper is considering an IPO, with Goldman Sachs, Citigroup, and others potentially participating.

London-based crypto custody firm Copper is in early discussions evaluating a potential initial public offering (IPO). Sources indicate that Goldman Sachs, Citi, and Deutsche Bank may be involved in the listing plans. Copper's final decision will depend on recent revenue performance, and a spokesperson stated that the company currently has no plans for an IPO but did not deny that discussions are underway.

If the IPO is successful, Copper will become the second crypto infrastructure company to go public, following its competitor BitGo. BitGo listed on the New York Stock Exchange last week at $18 per share, with an initial market capitalization of approximately $2 billion.

Previously, it was reported that Copper's founder launched Bron Labs, focusing on digital asset security, raising $15 million in early funding . BitGo's stock rose approximately 20% on its first day of trading on the NYSE, reaching a peak valuation of $2.6 billion during the session .

The US government seized over $400 million in assets related to the dark web cryptocurrency mixing service Helix.

According to a statement from the U.S. Department of Justice, the U.S. government has obtained final ownership of more than $400 million in assets through legal proceedings. These assets are related to the operations of Helix, a dark web cryptocurrency mixing service, and include seized cryptocurrencies, real estate, and monetary assets.

This operation involves assets previously seized from Helix operator Larry Dean Harmon. Court documents show that Helix handled at least approximately 354,000 bitcoins (worth about $300 million at the time) between 2014 and 2017, primarily for money laundering for the dark web drug market. Harmon pleaded guilty to conspiracy to launder money in August 2021 and was sentenced to 36 months in prison and forfeiture of assets in November 2024. On January 21, 2026, a judge in the U.S. District Court for the District of Columbia signed a final forfeiture order.

Opinion

Trader Eugene: I have re-entered the market and deployed my position, with a stop-loss set below $80,000.

Trader Eugene Ng Ah Sio posted on his Telegram channel: "I redeployed a reasonably sized position this morning. This recent market downturn seems to have wiped out even the most steadfast bulls, with a clear sense of frustration and capitulation (while many are also calling for even lower prices). In my opinion, the risk-reward ratio for going long here is quite good, and the stop-loss is clearly set below $80,000. I don't believe crypto assets will consistently underperform all risk assets; we're likely nearing the end of this relatively weak phase. It's time to fire again."

US SEC Chairman: The time is ripe to allow cryptocurrencies into 401(k) retirement accounts.

U.S. Securities and Exchange Commission (SEC) Chairman Paul Atkins said the time is ripe to allow cryptocurrencies into 401(k) retirement accounts in a cautious and secure manner through professional administration.

Atkins noted that many people already have access to these assets through the pension funds it manages, so the goal is to cautiously allow 401(k) plans to offer similar access under professional management and retiree protection measures. This statement is a response to critics such as Democratic Senator Elizabeth Warren, who has warned that the volatility and lack of transparency of cryptocurrencies could threaten the retirement security of millions of Americans.

Analysis: Bitcoin's implied volatility saw its largest increase since November 2025.

Bitcoin's implied volatility recently saw its biggest surge since November of last year. Deribit's DVOL index jumped from around 37 to above 44, indicating that traders are eager to seek downside protection. This volatility rose in tandem with the traditional market volatility index VIX, reflecting a broad-based risk aversion across markets, rather than an isolated event for cryptocurrencies.

Despite the volatility, data shows that current implied volatility has not yet reached extreme levels. Bitcoin's implied volatility ranks 36th, meaning the current level is only slightly above its lowest point in the past year; the implied volatility percentile is close to 50, indicating that volatility has been below current levels for about half of the past 12 months. The options market, after more than $1.7 billion in long positions were liquidated, is signaling caution rather than panic, while revealing the fragility of the market's previous positioning structure. Traders are preparing for more volatility to come, with some even setting target prices of $70,000 in the coming weeks.

Changpeng Zhao: FUD harms the market, and neither I nor Binance will engage in any substantial sell-off.

Binance founder Changpeng Zhao stated on the X platform that FUD (fear, uncertainty, and doubt) does not harm the target but instead damages the entire market. He indicated that neither he nor Binance will engage in any substantial sell-offs, and his personal consumption will only involve small-amount payment conversions.

Although he no longer runs Binance, to his knowledge, Binance only uses a portion of its revenue to cover expenses and is overall a net hoarder. Furthermore, Binance currently has a global regulatory body capable of auditing all account transactions. He urged investors not to be misled and to focus their efforts on self-improvement.

Arthur Hayes: Bitcoin's recent decline coincides with a contraction in dollar liquidity.

BitMEX co-founder Arthur Hayes stated in an article on the X platform that dollar liquidity has decreased by approximately $300 billion in the past few weeks, primarily due to a $200 billion increase in the US Treasury's General Account (TGA). The government may be raising cash reserves to secure spending in preparation for a potential shutdown. Against this backdrop, the decline in Bitcoin is not unexpected, as it coincides with the contraction in dollar liquidity.

Vitalik: The Ethereum Foundation is entering a period of moderate austerity, and I will personally contribute 16,000 ETH to promote an open-source, verifiable, full-stack ecosystem.

Ethereum founder Vitalik Buterin stated in an article published on the X platform that the Ethereum Foundation is entering a period of moderate austerity over the past five years, aiming to achieve two major goals simultaneously: first, to deliver an active roadmap to ensure that Ethereum becomes a high-performance, scalable world computer without sacrificing robustness, sustainability, and decentralization; and second, to ensure the Foundation's own long-term sustainable development capabilities and uphold Ethereum's core mission, including the core blockchain layer and the ability of users to access and use the chain with self-sovereignty, security, and privacy.

To this end, Vitalik himself will personally assume some of the responsibilities that may have previously belonged to the foundation's "special projects." The focus is on promoting the construction of an open-source, secure, and verifiable full-stack software and hardware system to protect the security and privacy of individuals and public environments, covering multiple fields such as finance, communications, governance, blockchain, operating systems, security hardware, and biotechnology. Therefore, he has just withdrawn 16,384 ETH, which will be used over the next few years to advance these goals and explore secure decentralized staking solutions, with the long-term aim of investing more staking rewards into these objectives.

Vitalik emphasized that Ethereum itself is an indispensable part of realizing the vision of "full-stack openness and verifiability." The foundation will continue to focus firmly on the development of Ethereum, with its core priority being to serve those who truly need it—providing self-sovereign infrastructure, rather than simply pursuing commercial expansion. In today's environment that values ​​power competition, building a truly open, secure, and verifiable technological foundation is a crucial way to ensure the autonomy and security of individuals and communities.

Project Updates

Moonbirds is now accepting $birb claims, and Nesting 2.0 is live.

Moonbirds has announced that it has opened the $birb claim page, and the Nesting 2.0 feature is now live.

Binance Alpha will be available on Kindred Labs (KIN) on January 30th.

According to Binance Wallet, Binance Alpha will list Kindred Labs (KIN) on January 30th (Beijing time). Eligible users can claim airdrop rewards using Binance Alpha Points through the Alpha Events page after trading begins.

MegaETH has outlined four key performance indicators (KPIs) that will determine the 53% MEGA token supply release plan.

Ethereum Layer 2 network MegaETH has clarified its MEGA token release rules: 53% of the supply (5.3 billion tokens) will be released based on the achievement of four key performance indicators (KPIs) of the protocol, rather than based on a fixed schedule. These four KPIs are: 1. Ecosystem Growth: Measured by the total value locked in MegaETH and the supply of the USDM stablecoin. 2. MegaETH Decentralization: Following the L2 standardization "phases" model proposed by Ethereum founder Vitalik Buterin. 3. Performance Improvement: Increasing network bandwidth and reducing latency. 4. Ethereum Ecosystem Decentralization: Including external milestones such as Ethereum's private transaction flow, client diversity, and the degree of centralization in block building.

Co-founder Namik Muduroglu stated that the tokens will be rewarded to holders who choose to stake MEGA. This means that token unlocking is linked to the success of the protocol, rather than time. If KPIs are not met, the relevant tokens will remain locked, and their future use may be decided by a vote.

Previously, it was reported that the MegaETH public mainnet would launch on February 9th. It is understood that its total token supply is 10 billion, with 53% allocated to KPI rewards, and the remainder distributed among the public sale (15%), venture capital (14.7%), the team/advisors (9.5%), and the foundation (7.5%).

Bit Digital announced it will completely cease its Bitcoin mining operations and further focus on the Ethereum ecosystem.

Nasdaq-listed Bit Digital, an Ethereum treasury company backed by Brock Pierce, announced that it will completely cease its Bitcoin mining operations to further focus on the Ethereum ecosystem and high-performance computing infrastructure.

In a letter to shareholders, the company's CEO explained that mining has become a less capital-efficient strategy compared to opportunities that can generate active returns and operating leverage. The company has consolidated its digital asset exposure into Ethereum and is focusing on AI infrastructure through its controlling subsidiary, WhiteFiber. Bit Digital entered Bitcoin mining in 2020 and was one of the first mining companies to shift towards high-performance computing. It first hinted at exiting mining in June 2025 , and has since gradually sold off assets and terminated custody contracts.

YO Protocol announces token economics: 8% allocated to the genesis airdrop, with applications opening on February 5th.

According to official news, YO Protocol announced the launch of its native governance token, YO, and released its token economics model. The total supply of YO is 1 billion tokens, allocated as follows: 30% for community growth and future rewards, 24% for core contributors, 21.5% for ecosystem development and strategic partnerships, 16.5% for early investors, and 8% for the genesis airdrop. The token airdrop application will open on February 5th; eligible users can claim their tokens by connecting to their Base network wallet.

The YO token will be launched in phases: In the initial phase, the token will be non-transferable to encourage active participation in governance and promote long-term consistency with real users; during this phase, transfer functionality is expected to be enabled through governance voting when feasible. Holding YO will grant voting rights on key protocol decisions, including future plans, vault usage, and vault parameter adjustments. For early users and the community, the YO Protocol launched the YO Rewards Program on January 29th for two weeks. Users can earn YO rewards by depositing yoUSD, yoETH, yoEUR, yoBTC, or yoGOLD into vaults or participating in supported DeFi activities. During the initial phase, the reward rate for all vaults is set at 14%.

Previously, in December 2025, it was reported that YO Labs, the development team behind YO Protocol, completed a $10 million Series A funding round, led by Foundation Capital.

Binance Alpha will list Infinex (INX)

According to an official announcement, Binance Alpha will list Infinex (INX) on January 30th. Eligible users can claim the airdrop using Binance Alpha Points on the Alpha Events page after trading opens. More details will be announced soon; please follow Binance's official channels for the latest information.

Binance will convert $1 billion of stablecoin reserves held by the SAFU Fund into Bitcoin reserves.

In an open letter to the crypto community, Binance announced that it will adjust the asset structure of the SAFU fund, gradually converting its existing $1 billion stablecoin reserves into Bitcoin reserves, with plans to complete the conversion within 30 days of this announcement. Binance will regularly review the SAFU fund's asset size, and if the fund's market capitalization falls below $800 million due to Bitcoin price fluctuations, Binance will replenish the fund with Bitcoin to restore it to $1 billion.

Based on Binance's assessment of Bitcoin as a core asset in the crypto ecosystem and its long-term value, Binance is willing to share the uncertainties with the industry during periods of pressure and increased cyclical volatility, and continue to invest resources in the crypto ecosystem. This initiative is part of Binance's long-term commitment to building the industry, and the company will continue to advance related work and gradually share more progress with the community.

Binance Futures will launch platinum and palladium perpetual contracts.

According to the official announcement, Binance Futures will launch platinum and palladium perpetual contracts at the following times:

• January 30, 2026, 18:00 (UTC+8): XPTUSDT perpetual contract, with a maximum leverage of 100x;
• January 30, 2026, 18:15 (UTC+8): XPDUSDT perpetual contract, with a maximum leverage of 100x.

Binance Alpha will list Kindred Labs (KIN) at 7 PM today, with an airdrop threshold of 241 points.

Binance Alpha will list Kindred Labs (KIN), with Alpha trading commencing on January 30, 2026 at 19:00 (UTC+8). Users with at least 241 Binance Alpha Points can claim an airdrop of 600 KIN tokens on a first-come, first-served basis. If the reward pool is not fully distributed, the points threshold will automatically decrease by 5 points every 5 minutes. Please note that claiming the airdrop will cost 15 Binance Alpha Points. Users must confirm their claim on the Alpha event page within 24 hours; otherwise, they will be considered to have forfeited their claim.

Binance plans to fully repay GoFi's debt by 2026 and strive for a leading position in the South Korean market.

SB Seker, head of Binance's Asia Pacific region, stated that Binance will complete compensation payments to users of GoFi, a service under Gopax in South Korea, this year to resolve the liquidity crisis that has persisted since 2023. The compensation will be in the form of cryptocurrency equal to the amount lost by the users. A dedicated wallet containing 775.11 BTC and 5766.62 ETH is currently being prepared and is awaiting final approval from the relevant South Korean authorities.

Following the compensation payment, Binance plans to shift its focus to improving Gopax's technology and security standards, and consider integrating it into the Binance brand system at an appropriate time. In the long term, Binance will focus on stablecoins, real-world asset tokenization, and institutional services in the South Korean market, planning to collaborate with local institutions to launch won-pegged stablecoins and security tokens. Although South Korean regulators have proposed potentially limiting major shareholders' stakes in exchanges to 15% to 20%, and Binance currently holds over 67% of Gopax's shares, Seker stated that they have ample experience in addressing this. He stated that South Korea is the pinnacle of digital assets in the Asia-Pacific region and has the potential to become one of the top three digital asset centers globally; Binance will strive to achieve market leadership over the next three to five years.

Binance Futures will launch INTCUSDT and HOODUSDT USDT U-margined perpetual equity contracts.

According to the official announcement, Binance Futures will launch perpetual contracts at the following time:

• February 2, 2026, 22:30 (UTC+8): INTCUSDT perpetual stock contract, with a maximum leverage of 10x;
• February 2, 2026, 22:45 (UTC+8): HOODUSDT perpetual stock contract, with a maximum leverage of 10x.

Important data

Trend Research added $36.39 million in margin, and is currently experiencing a paper loss of approximately $179 million.

According to AiYi, ETH briefly fell to $2805. 15 minutes ago, Trend Research withdrew 36.39 million USDT from Binance and deposited them in batches into the DeFi lending protocol Aave as margin. Trend Research currently holds 661,272.65 ETH, with an average cost of approximately $3104.36, resulting in a paper loss of approximately $179 million.

As the market crashed, Huang Licheng lost $2 million in a single day.

According to Lookonchain, as the market plummeted, Huang Licheng (Machi, @machibigbrother) lost another $2 million in a single day. Despite continuously injecting funds into the HyperLiquid platform, the losses continued to widen.

The "1011 Insider Whale" lost approximately $53 million in two hours.

According to Ai Yi, the "insider who opened short positions after the 1011 flash crash" has accumulated a floating loss of up to $84 million on its current long positions worth $704 million after adding to its positions on January 28. In just the past two hours alone, it has lost about $53 million.

Bitmine has staked another 314,500 ETH, bringing its total staked value to $7.98 billion.

According to Onchain Lens monitoring, Bitmine has further staked 314,496 ETH, worth $887 million.

To date, they have staked a total of 2,831,392 ETH, with a total value of $7.98 billion.

Two whale addresses saw a combined liquidation of $146 million, accounting for 8.4% of the total liquidation value in the past 24 hours.

According to on-chain analyst @ai_9684xtpa, as BTC plunged to $81,118 and ETH plunged to $2,689, two major whales were liquidated.

• Hyperliquid ETH long positions were liquidated, worth $65.14 million.
• HTX BTC long positions were liquidated, worth $80.58 million.

The two addresses together liquidated $146 million, accounting for 8.4% of the total liquidation value in the past 24 hours.

CZ's counterparty whale had its long positions worth $177 million liquidated, resulting in a loss of $48.2 million.

According to on-chain analyst Yu Jin's monitoring, the "whale that shorted ASTER after CZ showed off his holdings" was only $28 away from being liquidated last time, but this time, when ETH fell below $2,700, his long positions worth $177 million were liquidated, resulting in a loss of up to $48.2 million.

He went long on ETH, XRP, and HYPE in November. In December, he was $28 away from the liquidation price. Later, ETH rebounded and he managed to break even after a floating loss of $44 million.

However, ETH finally collapsed today when it fell below $2,700, with long positions worth $177 million being liquidated, leaving positions worth $60 million remaining.

Ethereum spot ETFs saw a total net outflow of $156 million yesterday, with Fidelity's FETH ETF experiencing the largest net outflow at $59.1937 million.

Bitcoin spot ETFs saw a total net outflow of $818 million yesterday, marking the third consecutive day of net outflows.

Investment and financing/acquisition

Venture capital firm Escape Velocity has raised $62 million to focus on investing in DePIN and crypto projects.

According to Fortune, venture capital firm Escape Velocity has completed its second round of fundraising, raising a total of $62 million, which will be primarily used to support DePIN (decentralized physical infrastructure) and projects in the broader crypto space.

The fund attracted prominent investors including Marc Andreessen and Ribbit Capital founder Micky Malka, with Cendana contributing $15 million as the largest contributor. Escape Velocity co-founder Mahesh Ramakrishnan stated that despite the current market downturn in the DePIN space, he believes decentralized physical infrastructure will see a breakthrough. The company has previously invested in DePIN projects such as Daylight and Glow in the solar energy sector and plans to continue seeking high-quality projects that transcend market hype.

ALT5 Sigma announced a $100 million stock buyback program and has signed a $15 million loan agreement with WLFI.

According to ALT5 Sigma Corporation (NASDAQ: ALTS), its board of directors has approved a stock repurchase program of up to $100 million and authorized the repurchase of up to 50 million shares, representing 40% of the total outstanding shares.

Furthermore, the company plans to further acquire $WLFI tokens through a strong balance sheet and a strategic partnership with World Liberty Financial (WLFI). Currently, ALT5 holds approximately 7.3 billion $WLFI tokens, valued at approximately $1.5 billion, and plans to leverage market conditions to enhance the token's value and strengthen its asset base. Simultaneously, the company has signed a $15 million loan agreement with WLFI to launch these initiatives. CEO Tony Isaac stated that these moves will create significant value for shareholders and demonstrate the company's strong confidence in its stock and strategy.

Previously, it was reported that WLFI financial institution ALT5 Sigma had resolved the issue of failing to file financial statements with Nasdaq on time .

Cryptocurrency exchange Talos raises $45 million, with Robinhood, a16z, and others participating.

Robinhood participated in Talos's Series B expansion funding round, which valued the platform at approximately $1.5 billion. Talos focuses on providing crypto trading infrastructure to global institutions, serving clients with approximately $21 trillion in assets under management. This $45 million expansion round also attracted new strategic investors including Sony Innovation Fund, IMC, QCP, and Karatage, while existing investors a16z crypto, BNY, and Fidelity Investments also joined the investment.

Robinhood stated that Talos's flexibility and rapid adaptability will further enhance the liquidity and functionality of its crypto business.

Previously, Talos announced a partnership with Uniswap Labs and Fireblocks to provide DeFi liquidity for institutional investors .

AC's new project, Flying Tulip, has raised a total of $225.5 million in institutional funding to date.

Flying Tulip, the unified on-chain financial system founded by Andre Cronje, founder of Sonic Labs, announced that it has completed a total institutional funding round of $225.5 million to date, at the same fully diluted valuation of $1 billion as its seed round. This funding includes a $25.5 million Series A private token funding round led by Amber Group, Fasanara Digital, and Paper Ventures, as well as a $200 million seed round completed last September.

In addition to institutional funding, Flying Tulip has raised $50 million through Impossible Finance's Curated platform and plans to launch another public sale on CoinList next week. The project team stated that it has received approximately $1.36 billion in investment intentions to date, and if the existing allocation is fully filled, the remaining funding amount will be approximately $400 million.

According to previous reports yesterday, CoinList will launch the public sale of its new AC project, FlyingTulip (FT), in the early hours of February 3 .

Institutional holdings

The Central Bank of El Salvador increased its gold holdings by $50 million, while the Salvadoran government continued to increase its holdings by one Bitcoin.

The Central Bank of El Salvador announced on Thursday that it had increased its gold reserves by $50 million. Following this purchase of 9,298 troy ounces of gold, the country's total gold reserves reached 67,403 ounces, valued at approximately $360 million.

Meanwhile, the government, adhering to President Nayib Bukele's promise to "buy one Bitcoin daily," added one Bitcoin to its holdings that day. According to Arkham data, its total Bitcoin holdings have reached 7,547, worth approximately $635 million based on the Bitcoin price of about $84,000 at the time of writing. President Bukele, in forwarding the central bank's announcement, wrote "We've bought the dip again," but did not specify whether he was referring to the purchase of gold or Bitcoin.

According to Jinshi News, sources familiar with the matter revealed that the Trump administration is preparing to nominate Kevin Warsh as the next Federal Reserve Chairman. Trump stated on Thursday that he plans to announce his nominee for Fed Chair on Friday morning. Sources cautioned that the nominee is not finalized until Trump makes a formal announcement. The White House and Warsh did not immediately respond to requests for comment. One source indicated that Warsh, a former Fed governor and one of the four finalists on Trump's shortlist for the next Fed Chair, visited the White House on Thursday. Other candidates on the shortlist include White House National Economic Council Director Hassett, Fed Governor Christopher Waller, and BlackRock executive Rick Reid.

Binance founder Changpeng Zhao stated on the X platform that FUD (fear, uncertainty, and doubt) does not harm the target but instead damages the entire market. He indicated that neither he nor Binance will engage in any substantial sell-offs, and his personal consumption will only involve small-amount payment conversions.

Although he no longer runs Binance, to his knowledge, Binance only uses a portion of its revenue to cover expenses and is overall a net hoarder. Furthermore, Binance currently has a global regulatory body capable of auditing all account transactions. He urged investors not to be misled and to focus their efforts on self-improvement.