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first_img Fortune Magazine: Paradigm, a16z crypto and other crypto VC asset management scales have significantly shrunk

According to Fortune magazine, in the context of a downturn in the crypto market in 2025 and the distribution of profits to investors, the portfolio values of crypto venture capital firms such as Paradigm and a16z crypto have significantly shrunk.According to filings with the U.S. Securities and Exchange Commission (SEC), the total assets under management (AUM) of four crypto funds under a16z crypto dropped nearly 40% from 2024 to 2025, falling to $9.5 billion. Part of the reason is that the firm began returning capital to investors from earlier funds, and the timing of the returns coincided with the market peak in 2025, with a net DPI (distributions to paid-in capital) of 5.4 for its first crypto fund.Multicoin Capital's AUM has more than halved, dropping to about $2.7 billion. Paradigm's holdings also slightly decreased by about 6%. Meanwhile, the total size of a16z crypto's parent company, Andreessen Horowitz, has exceeded $100 billion.The report points out that the shrinkage in assets under management reflects the decline in portfolio value due to the market downturn, and is also a sign of normal exits by VCs and the return of funds to limited partners (LPs). Some firms, such as Haun Ventures, have seen their AUM grow by over 30%, reaching around $2.5 billion.Currently, Paradigm is seeking to raise a new fund of $1.5 billion, and a16z crypto is also raising up to $2 billion for its fifth fund.

BitMEX Research proposes a new mechanism to mitigate the impact of quantum computing-related Bitcoin freezing

According to official news, BitMEX Research has released a new research article proposing that in response to the risk of future quantum computers potentially breaking elliptic curve signatures, the Bitcoin network could adopt an alternative soft fork mechanism to "directly freeze" to reduce controversy and increase flexibility.The proposal revolves around "quantum-vulnerable fund freezing," but suggests avoiding the direct freezing of all related assets without evidence, instead gradually implementing security strategies through a verifiable condition-triggering mechanism. The core of the proposal is to establish a "signal vault," which contains special addresses generated using "accidental numbers" to prove that no one possesses their private keys. If passive spending occurs from that address, it will be regarded as on-chain evidence that quantum computing capabilities genuinely exist, thereby immediately triggering a comprehensive freeze of quantum-vulnerable assets.At the same time, the fund could attract capital through a multi-signature structure as a "quantum bounty," aimed at incentivizing potential attackers to expose their capabilities. The article also mentions that there is currently a BIP-361 proposal promoting the phased disabling of the old signature system and ultimately freezing risky assets, but this proposal is controversial due to its involvement in "mandatory freezing."The newly proposed "signal-trigger + security window" mechanism aims to replace the fixed-time freeze path, reducing potential system shocks while retaining Bitcoin's censorship-resistant characteristics, but it also brings complexity and execution risk trade-off issues.

CryptoQuant: Bitcoin on-chain indicators show that selling pressure is increasing, and the risk of profit-taking is rising

According to The Block, CryptoQuant's research director Julio Moreno stated on Wednesday that Bitcoin's recent rally is facing an increasing risk of profit-taking, with multiple on-chain indicators showing that selling pressure is strengthening. Currently, the price of Bitcoin has slightly retreated but is testing the on-chain "realized price" of $76,800 for traders. This level is seen as a significant bearish resistance, historically often limiting the rebound space, as holders close to breaking even are more inclined to sell for profit, thereby suppressing further increases.Moreno pointed out, "This price range precisely capped the price increase during the bear market rebound in January 2026 and reversed downward after reaching that level. If the current selling pressure continues to strengthen, a similar trend may occur again." He added that if the resistance level holds, approximately $67,600 below will become the main short-term support. The report also noted that the proportion of large trades has rapidly increased from less than 10% to over 40%, and historically, this level usually corresponds to strong short-term selling pressure. Profit-taking has not yet peaked. Currently, the daily realized profit is about $500 million, below the $1 billion threshold that historically marks significant sell-off peaks.Finally, Moreno stated that if Bitcoin remains above $76,000, or even approaches the realized price level of $76,800, the daily realized profit could accelerate to over $1 billion, thereby increasing selling pressure and raising the likelihood of a temporary top or correction in the market.
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