Morning Report | Binance completes $283 million user compensation; Trump may be one of the largest Bitcoin investors in the U.S., holding approximately $870 million
Overview of Important Market Events on October 12整理：Zhou，ChainCatcher
Important News:
- Binance responds to market volatility: confirms system is operating normally, has completed $283 million in user compensation
- Forbes: Trump may be one of the largest Bitcoin investors in the U.S., holding approximately $870 million
- Glassnode: Funding rates in the crypto market have fallen to their lowest level since the 2022 bear market
- Hong Kong Monetary Authority: Cross-border data verification platform between Shenzhen and Hong Kong has established a blockchain node in each city
- Analysis: The whale that "sold over $4.23 billion in BTC to swap for ETH" is suspected to be former exchange executive Garrett Jin
What important events have occurred in the past 24 hours?
According to ChainCatcher, Binance released a statement in response to the severe market volatility caused by global macro events from 04:50 to 06:00 Beijing time on October 11. The official stated that the overall crypto market suffered a sharp decline due to concentrated selling by institutions and retail investors. Binance confirmed through a comprehensive review that the core contract and spot matching engines and API trading remained normal, with only some modules experiencing brief technical failures after 05:18 on October 11, causing certain assets to become unpegged.
For the affected users, Binance has completed compensation within 24 hours of the incident, amounting to approximately $283 million, primarily covering liquidation losses due to the unpegging of USDE, BNSOL, and WBETH. Additionally, Binance will also provide compensation for users who suffered losses due to delays in internal transfers and Earn product redemptions.
According to ChainCatcher, Forbes reports that former President Trump currently indirectly holds approximately $870 million in Bitcoin, potentially placing him among the largest Bitcoin investors globally. The report indicates that Trump holds a significant amount of Bitcoin through his shares in Trump Media & Technology Group (TMTG).
TMTG operates the social platform Truth Social, which, despite generating less than $4 million in annual revenue, has a market capitalization in the billions on Nasdaq. Earlier this year, TMTG raised $2.3 billion through debt and the sale of overvalued stock, purchasing approximately $2 billion in Bitcoin in July. Subsequently, Trump's stake in the company decreased from 52% to 41%. Since the company's investment in Bitcoin, the price of BTC has risen by about 6%, and it is estimated that the Bitcoin value corresponding to Trump's shares is approximately $870 million.
According to ChainCatcher, Glassnode stated on social media, "The funding rates across the entire cryptocurrency market have fallen to the lowest level since the 2022 bear market. This marks one of the most severe leverage resets in the history of the crypto market, indicating that speculative excesses have been systematically cleared out."
Vance: President Trump is willing to negotiate rationally with China on tariff issues
According to ChainCatcher, Bloomberg reports that U.S. Vice President JD Vance stated that President Trump is willing to negotiate rationally with China on tariff issues.
Vance urged the Chinese side to "choose the rational path" in the recently escalating U.S.-China trade war, claiming that Donald Trump holds greater leverage. "This will be a subtle contest, largely depending on how China responds," Vance said on Fox News' "Sunday Morning Futures."
According to ChainCatcher, Caixin reports that Hong Kong Monetary Authority Vice President Yuen Kwok-hang pointed out that they have decided to regularize the "cross-border credit information exchange" pilot program to be launched in 2024, covering the Guangdong-Hong Kong-Macao Greater Bay Area, with trials taking place in Hong Kong and Shenzhen. Participating institutions include seven local retail banks such as HSBC, Standard Chartered, and Bank of China Hong Kong, as well as three local credit agencies.
Michael Saylor releases Bitcoin Tracker information again, possibly hinting at another BTC purchase
According to ChainCatcher, Strategy founder Michael Saylor has released Bitcoin Tracker-related information again. Following previous patterns, Strategy typically discloses Bitcoin purchases the day after related news is released.
According to ChainCatcher, OKX founder and CEO Star stated on the X platform that the entire crypto industry should take some time to reflect on the true reasons behind the global market crash. Is it really just a tariff issue, or are there deeper structural problems at play?
According to ChainCatcher, on-chain detective ZachXBT stated, "The identity of the BTC whale that is prominently swapping for ETH still has too many unknowns, and I cannot draw a conclusion that I am willing to publish. The posts currently under scrutiny are actually exaggerated versions of immature theories.
What is known is that Garrett Jin / Exe seems to have started collaborating with a Chinese whale, who previously had ten-digit funds on-chain that had been dormant until recently."
According to ChainCatcher, on-chain analyst Eye disclosed on the X platform that the HyperLiquid whale holding over 100,000 BTC and selling over $4.23 billion in BTC to swap for ETH may be linked to former exchange executive Garrett Jin.
During August and September, this whale sold over 35,000 BTC through a series of BTC wallets using Hyperliquid/Hyperunit and exchanged them for ETH. The address where its staked ETH contracts were deployed received funding from a wallet, and the first funds from that wallet came from "ereignis.eth," while the second ENS domain name associated with that address, "garrettjin.eth," points to X user Garrett Jin. Currently, Garrett still holds 46,295 BTC (currently valued at $5.19 billion) in these addresses.
In response to this analysis, Zhao Changpeng retweeted, "It is still uncertain whether this is true or accurate; I hope someone can verify it."
According to ChainCatcher, Wall Street Journal reports that after the "October 11 flash crash," the crypto market has begun to recover some ground, but the full impact of the event may take days or even weeks to fully manifest. Several industry insiders have expressed their views:
Edward Chin, CEO of crypto hedge fund Parataxis, expressed skepticism that news of some funds facing liquidation or market makers suffering heavy losses will emerge in the coming days or weeks.
Caroline Mauron, co-founder of Orbit Markets, pointed out that Bitcoin's next major support level is at $100,000, and falling below this level would mark the end of the bull market cycle of the past three years.
Vincent Liu, Chief Investment Officer of Kronos Research, believes that this crash was triggered by tariff concerns but exacerbated by excessive leverage from institutions, highlighting the close relationship between cryptocurrencies and the macro economy.
Meme Popularity Rankings
According to the meme token tracking and analysis platform GMGN, as of October 13, 08:40,
The top five popular ETH tokens in the past 24 hours are: USDe, sUSDe, LINK, KOBE, SPX
The top five popular Solana tokens in the past 24 hours are: TRUMP, LILPEPE, USELESS, MEFAI, LighteR.
The top five popular Base tokens in the past 24 hours are: ZORA, EURC, ZEN, Pistachio, NEKO
What are some must-read articles from the past 24 hours?
After the tide recedes, let's talk about the differences between Meme and Build
With the overall market crash, the Meme frenzy that has been ongoing for the past week has abruptly halted, the noise has gradually dissipated, and retail sentiment has returned to rationality. It is time to calm down and discuss the route collisions and differences in opinions that have emerged in the industry over the past few days.
Perhaps due to lingering idealism, I personally find myself unconsciously leaning towards the Build side in the factional debate between Meme and Build. While I do not oppose the Meme concept and acknowledge that Meme, as a collective spiritual symbol in the post-Internet era, has its objective significance, I believe that many of the so-called "Memes" that have recently emerged, which clearly exhibit sycophantic tendencies and blatant profit motives, do not align with the core definition of Meme. I also do not believe these "Memes" possess sustainable value expectations—because maintaining such sentiment requires dual continuous positive feedback from sycophantic targets and position profits, rather than relying on spontaneous emotional expression from the crowd like classic Memes, which makes these "Memes" inherently fragile in terms of value.
What does DeFi need to reach its next milestone?
This article from Lemniscap systematically outlines the rise and real dilemmas of "smart agent finance." From &milo, Meridian to SendAI, The Hive, these early products demonstrate how AI can become a new interface for on-chain interactions, while also exposing significant gaps in execution reliability, permission security, and verification mechanisms. The author points out that for DeFi to move to the next stage, the key is not smarter models, but more trustworthy underlying structures—ensuring that every action of the agent is verifiable, traceable, and trustworthy.
This is not only a turning point in technological evolution but also an experiment in trust reconstruction. As stated in the article: DeFi's next milestone is not larger scale, but trust in automation.
By 2025, DeFi will be completely different from its early form.
In extreme market conditions, why might your position be forcibly liquidated?
Given that many people woke up to find their perpetual contract positions liquidated and wondered what "Auto-Deleveraging" (ADL) means, here is a concise introductory guide.
What is ADL? How does it work? Why does it exist?
In the past two days, the Memecoin sector on the BNB Chain has experienced a deep correction, with most tokens generally falling 80% within 48 hours, but the market's FOMO sentiment has not completely dissipated. It was not until this morning's sudden black swan event that most community players woke up from their dreams.
In this seemingly equal opportunity speculative wave, the vast majority of participants may not have realized actual profits, with all profits returned or losses incurred after a brief period of paper wealth. Data shows that nearly 90% of popular Memecoins have significantly retreated from their highs, with Binance's Alpha project seeing a drop of up to 87.8% in the past week. The narrative of getting rich quickly cannot hide the reality of "huge losses," with some investors losing over $430,000 from buying BNBHolder, and some whales facing cumulative losses of over $3.5 million on Meme coins like "Binance Life" and "Customer Service Xiao He."
As the speculative frenzy of Memecoins gradually recedes, it is worth reflecting calmly: should we continue to chase risks in rapidly rotating markets, or should we focus more on underlying infrastructures with actual value support?
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Risk warning
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