Musk’s Blockchain Plan Criticized
Metaplanet Now Holds 0.01% Btc
Elon Musk wants the U.S. Treasury to be on a blockchain. That’s a terrible idea—take it from a big proponent of the technology
A month ago, no one could have predicted this. Yet today, we are seriously discussing the U.S. Treasury moving all of its transactions onto a blockchain. As we know, this technology underpins cryptocurrencies like Bitcoin, and the proposal is largely thanks to the increasing involvement of crypto advocate Elon Musk in the U.S. government’s affairs.
A self-proclaimed government cost-cutter, the world’s richest man and newly unelected politician has been focusing his energies on the recently launched Department of Government Efficiency, or DOGE for short. This is named after the eponymous memecoin for which Musk has become a cheerleader. In a nutshell, the new department’s job is to “rip the waste out of [America’s] $6.5 trillion budget,” at least according to Trump’s Commerce department nominee Howard Lutnick. And Musk believes a large proportion of this waste is coming from the misuse of Treasury funds.
“Career Treasury officials are breaking the law every hour of every day by approving payments that are fraudulent or do not match the funding laws passed by Congress,” the Tesla CEO wrote on X, which he owns, earlier this month. “This needs to stop now!”
When an X user asked whether the Treasury “should be put on the blockchain so this doesn’t happen,” Musk replied, “Yes!”
His view is that the transparency and immutability of the blockchain technology—which ensures all transactions are visible for everyone to see for the rest of time—would eradicate this alleged fraud. And, in theory at least, he’s absolutely right. The problem is in the implementation.
A national security risk
If anyone should support the idea of a U.S. Treasury on the blockchain, it’s me. I’m a huge proponent of this technology. Indeed, I left a very well-paid job at Goldman Sachs in 2015 to enter the blockchain space and haven’t looked back. I truly believe this technology, along with the endless financial opportunities afforded by the cryptocurrency space, can help enhance not only personal wealth, but also the efficiency and transparency of nation states. However, I don’t believe for one second that moving the U.S. Treasury onto the blockchain right now would be anything short of a disaster.
My first concern is simply security. Blockchain is essentially an immutable ledger of transactions that anyone can see at any time. This means there’s no way to hide any blockchain-based transaction. This makes it very difficult to obfuscate fraudulent activity, but it would also mean that the most sensitive financial information, such as defense spending or foreign exchange operations, of the world’s most powerful nation would be available, at least in some form, for the whole world to see—and talented hackers could connect many dots. This presents an obvious national security risk.
At a time when new technologies like AI and escalating attacks from North Korean and other hackers are putting increasing pressure on cybersecurity systems, the last thing the U.S. needs is for all of its financial data to be available for the world to see. Now, data on the blockchain could be encrypted and only visible to those with clearance, but this kind of technology is in its early days, meaning it isn’t yet scalable or ready for large-scale adoption. Indeed, if Musk wants to put his focus and financial firepower anywhere, it should be here: blockchain innovation that supports both transparency and security.
Too early to the game
Yet, even if these security concerns could be ironed out with the use of encrypted data and privacy-preserving blockchains, for example, another problem is that the U.S. Treasury is a huge enterprise. In 2023, it distributed some $5.4 trillion in federal payments and collected a similar amount in federal revenue.
In contrast, the entire market cap of the crypto industry currently stands at roughly $3.4 trillion, while Ethereum—one of the most battle-tested blockchains—handles about $322 billion. Meanwhile, Solana—the main challenger to Ethereum that has been buoyed by the launch of Trump memecoins $TRUMP and $MELANIA—has a market cap of less than $100 billion. And, indeed, the surge in trading volume after $TRUMP’s launch tested Solana to its limits. Does anyone truly believe that any one blockchain today could handle more than $5 trillion of Treasury assets? Some day, I fervently believe it will—but we’re not there yet.
The sheer size of the Treasury and the nature of its systems mean it would take years to actually transition it on-chain. Treasury officials would also require upskilling to ensure they can use the blockchain in a safe and competent way, which would entail many new hires. And this would really be essential considering the cybersecurity upgrades required to avoid a major security incident.
In short, even if the idea of the U.S. Treasury moving onto the blockchain passes muster, it will be a multi-year project. As a strong proponent of the transparency and immutability provided by blockchain technology, I truly hope to see a future where many government treasuries can move on-chain. But this isn’t something that can be rushed. Indeed, rushing it could have dire consequences. In the meantime, Musk will need to find another way to “rip the waste” out of the U.S. Treasury’s spending.
Japan’s Metaplanet Now Owns 0.01% Of Total BTC Supply After Latest Shopping Spree
Metaplanet, a Japanese investment firm that mirrors the model of American firm Strategy, the world’s biggest corporate BTC holder, has just snapped up more of the foremost cryptocurrency.
Just last month, Metaplanet said it would accelerate its Bitcoin buys by issuing debt as part of its ambitious strategy to lead Japan’s Bitcoin renaissance.
Metaplanet Now Holds 2,100 BTC
Metaplanet, which trades on the Tokyo Stock Exchange, announced Thursday that it had bought 68.59 Bitcoin for $6.6 million as it attempts to deepen its crypto strategy.
The company paid an average of $96,335 per BTC, bringing its total stash to 2,100 BTC, worth around $203 million. This means Metaplanet currently holds approximately 0.01% of the total BTC supply that will ever be mined.
According to CoinGecko data, the Bitcoin price had reclaimed the $97,000 level at press time, having gained 1.4% in the past day. Notably, multinational bank Standard Chartered recently laid out its vision for how Bitcoin could rocket to as high as $500,000 before U.S. President Donald Trump leaves office.
Metaplanet’s Dylan Le Clair revealed in an X post that the firm had raised $20 million in equity capital in the first two trading days of its “21 million plan”. In January, Metaplanet announced plans to raise more than 116 billion yen (around $745 million) to finance more Bitcoin buys.
At the time, the little-known Japanese investment firm said its goal was to accumulate 10,000 BTC by Q4 2025, which would cost more than $1 billion. By Q4 2026, Metaplanet plans to boost its cache to 21,000 BTC, valued at roughly $2.1 billion.
The company is copying the Bitcoin playbook established by American software firm MicroStrategy. In 2020, MicroStrategy started buying Bitcoin to give shareholders the best value for their money. Following its latest buy, the company now holds 478,740 BTC, which is valued above $46.5 billion.
Metaplanet first purchased Bitcoin on April 8, 2024, adopting it as a core treasury asset to protect against currency depreciation. It is now Asia’s second-largest corporate holder of Bitcoin following Boyaa Interactive, which holds 3,183 Bitcoin worth $309 million.
It’s worth mentioning that Strategy founder and executive chairman Michael Saylor has acknowledged Metaplanet’s latest BTC investment, defining its stash as “One Basis Point of Bitcoin.
Pi Network (PI) IOU Price Crashes 42% Ahead Of Mainnet Launch
The price of PI Network has taken a significant hit, dropping 42% over the past 24 hours. This decline comes amid growing skepticism surrounding the altcoin’s upcoming mainnet launch on February 20.
Investors are increasingly concerned, especially with the rumors of Pi Network being labeled a pyramid scheme, which has made it difficult for the token to gain traction. As the launch date approaches, the skepticism has only intensified, and many investors are unsure about the viability of the project.
Bearish Momentum Builds Around Pi
The Relative Strength Index (RSI) for Pi Network recently breached into the overbought zone, only to experience a sharp downtick in the past 24 hours. Historically, tokens that enter this zone often face a reversal, as seen with PI IOU (I owe you).
While the RSI still holds above the neutral line at 50.0, the overall bearish momentum appears to be building. As the price continues to experience fluctuations, the RSI’s movement suggests that the negative sentiment surrounding the token could lead to further declines.
In addition to the RSI’s movement, investors’ confidence remains low. The sharp drop in PI’s price highlights the market’s hesitation, and many are waiting for clearer signs before making any major moves.
With the skepticism surrounding the mainnet launch, the altcoin is facing increased selling pressure. This lack of confidence in the market is contributing to the overall decline in price and further stoking fears of a prolonged downturn.
The Chaikin Money Flow (CMF) indicator, which measures the amount of money flowing into or out of an asset, has been on a decline since the start of the month. Despite some occasional upticks, the CMF has failed to secure the zero line as support.
This trend indicates that outflows are currently dominating inflows, signaling a lack of confidence among investors. Such a situation is often detrimental to a token’s price performance, as it indicates a lack of buy-side interest.
With the CMF’s ongoing decline and the market sentiment showing signs of weakness, Pi Network’s price could continue to struggle in the short term. The overwhelming selling pressure coupled with investor skepticism is limiting the ability of Pi Network to rally.
For any sustained upward momentum, the market needs stronger support and reassurance from investors, which currently seems to be lacking.
PI Price Prediction: Losses Ahead
PI price currently stands at $72, having dropped 42% in just 24 hours. This sharp decline occurred after the altcoin failed to breach and secure $130 as a support floor.
With concerns growing around the upcoming mainnet launch, the price is expected to face further downward pressure. The current price level may not be able to hold, and the bearish sentiment could extend PI’s losses.
Although PI is holding above the support of $63, it remains susceptible to further declines. Losing this support could bring the price down to $47, which would result in significant losses for investors who have held onto the coin in recent weeks. The altcoin’s potential to recover hinges on maintaining this key support level.
On the other hand, if PI manages to bounce back from the $63 support, it could attempt another breach of the $130 resistance level. Successfully flipping $130 into support would invalidate the bearish outlook and set the stage for a more substantial recovery. However, the market remains uncertain, and without a change in investor sentiment, this outcome remains unlikely.
Bitcoin Whales Go on Buying Spree as 28,000 BTC Accumulated
According to a recent report by crypto analytics firm CryptoQuant, more than 28,000 BTC ($2.6 billion) were accumulated by big players in the crypto market. According to the CQ, these accumulated addresses consist of Over-the-Counter (OTC) trading desks, major institutional investors, and long-term HOLDers.
The move is bullish for the premier digital currency as these wallet addresses aren’t associated with spot cryptocurrency exchange accounts and are a sign of long-term accumulation. In other words, more than $2.5 billion worth of BTC was taken off the market, which can considerably affect market pressure in the coming weeks.
Bitcoin’s Recent Price Stagnation
The largest cryptocurrency by market capitalization has had an uneventful last 3-4 months overall. The index has largely stuck between the relatively narrow $93k-$106k trading range with only minor price deviations in between. While this frustrates many crypto users, we must consider the larger market economy.
The American stock market has been under immense pressure for the last few weeks because of the surprise arrival of the Chinese AI chatbot Deepseek. The market has witnessed double-digit losses overall. However, Bitcoin has been able to considerably shake off the negative market pressure and rein in any major bearish concerns.
On the other hand, price stagnation is very real and is starting to shake some nerves among investors. The important news is that a long period of price stagnation often follows up with a sharp price increase or decrease.
The Future
As Bitcoin accumulation statistics pile up, the market will likely bounce back soon enough. The buy forces are still strong, and on-chain data supports the resumption of the bull market. However, considering evolving factors like the feared USA-China trade war and under-pressure AI investments, continuing this bull market may take some time. Big news regarding Donald Trump’s campaign promise of a Bitcoin strategic reserve might provide the spark needed right now.
There is no clear timeline for when this major market opportunity will arise, but one can expect the situation to improve in the second quarter of 2025, with a probable peak emerging in the fourth quarter of 2025.
AI-Generated Memecoins Keep Pump.fun Thriving Despite Major Changes
Artificial intelligence (AI) generated tokens are taking over the memecoin narrative, breathing new life into Pump.fun.
After a tumultuous end to 2024 marked by controversies, these fresh token launches have helped the platform recover, boosting its metrics and steering it toward renewed success.
Breathing New Life
The novel concept of attaching an AI bot to a cryptocurrency and its marketing is the latest trend on Solana’s memecoin marketplace, Pump.fun, and they are seemingly keeping the controversial platform afloat following major changes to the platform, namely the removal of its unhinged live streaming feature.
Whilst this initially hurt the platform’s overall metrics, which saw declines across revenues, token launches, and trading volumes, AI-driven cryptos have now taken precedence as the platform’s new-found success story narrative.
AI-powered tokens have now surpassed a market cap of $10 billion and currently hold sturdy 24-hour trading volumes of $1.8 billion.
AI Memecoins 2025
Memecoins drove Solana network trading volumes through the roof in 2024, with Pump.fun token activity accounting for more than half of all transactions from Aug. 2024 to today.
As per DeFiLlama, Pump.fun earned $80.32 million in revenues throughout December 2024, which is barely down from its November high of $93.88 million.
The current trend of memecoin projects “lead by AI” could prove fruitful for memecoin traders and AI technologies overall.
However, whether or not such novelties can sustain themselves remains yet to be seen.
There are projects such as Goatseus Maximus that appear to have no end or clear goal and exist purely to prove that they can.
New projects such as ai16z (AI16Z) hold more promise. Created by Eliza Labs, which is building operating systems for AI Agents, ai16z is an AI investment DAO-driven parody of venture capital firm Andreessen Horowitz, aka a16z.
It is currently the leading AI memecoin by volume and market cap and has—so far—pledged to pioneer AI DAOs where “AI agents serve as the catalysts for value creation and growth.”
This latest wave of innovation in the Pump.fun memecoin space could be a solid boost for the platform, which continues to dominate Solana network metrics.
