Blockonomi

TLDR

Hong Kong’s financial regulators are preparing a draft bill for digital asset regulation, expected to be submitted in 2026.

The draft bill will focus on regulating crypto advisory services and align with international standards for digital asset taxation.

The Hong Kong Monetary Authority has started processing applications for stablecoin issuers under the new regulatory framework.

Hong Kong aims to implement revisions to the OECD’s crypto-asset reporting framework, with tax information exchanges starting in 2028.

The Stablecoin Ordinance, passed in August, requires stablecoin issuers to obtain licenses from the Hong Kong Monetary Authority.

Hong Kong’s financial regulators are set to submit a draft framework for regulating digital assets in 2026. This development comes as the government works on refining its approach to crypto and digital asset regulations. Hong Kong aims to establish a clear set of rules to manage the emerging sector while ensuring compliance with international standards.

Hong Kong’s Legislative Plans for Digital Asset Regulation

Hong Kong’s Financial Services and the Treasury Bureau, along with the Securities and Futures Commission (SFC), are preparing a draft bill. This legislation will address the regulatory framework for firms offering crypto advisory services. The regulators have been consulting with the public after releasing a consultation paper on digital assets in December.

The proposed draft bill, scheduled for submission to the Hong Kong Legislative Council in 2026, will define how the crypto advisory sector should operate. It will aim to provide a clear legal framework for firms offering advice related to cryptocurrencies, fostering industry growth while maintaining security and compliance.

The Hong Kong Monetary Authority (HKMA) has begun processing applications for stablecoin issuers. As part of this initiative, the HKMA has also set out plans to regulate the taxation of digital assets. Financial Secretary Paul Chan and other officials have been pushing for Hong Kong to become a leading hub for financial innovation in digital assets.

In August, the Legislative Council passed the Stablecoin Ordinance, which requires stablecoin issuers to obtain licenses from the HKMA. Despite this, as of now, no licensed stablecoin issuers are listed in the HKMA’s public register. This regulatory move aims to ensure that Hong Kong stays competitive in the rapidly evolving digital asset space.

Global Push for Crypto Regulation

The draft bill comes as global efforts to regulate the digital asset industry increase. For instance, US lawmakers recently advanced a digital asset market structure bill, which aims to clarify the roles of financial regulators. Hong Kong’s regulators are aligning their efforts with international efforts to combat tax evasion by including revisions to the OECD’s crypto-asset reporting framework. These efforts will support the automatic exchange of tax information starting in 2028.

The regulatory framework being developed by Hong Kong aims to balance innovation with security, positioning the city as a key player in the global digital asset market.

The post Hong Kong Plans to Introduce Digital Asset Regulatory Framework in 2026 appeared first on Blockonomi.

TLDR:

Kevin Warsh’s Fed Chair probability surge yesterday triggered immediate sell-off across global markets. 

Former Fed governor criticized QE as reverse Robin Hood policy benefiting markets over real economy growth. 

Markets fear combination of rate cuts with balance sheet reduction instead of traditional liquidity expansion. 

$6 trillion erased in 60 minutes spanning gold, equities, and crypto as investors reprice policy expectations. 

 

Market turbulence intensified yesterday following a sharp increase in the probability of Kevin Warsh becoming the next Federal Reserve Chair.

The sudden shift in expectations triggered a broad sell-off across global markets, erasing trillions in value within minutes of the US market open.

Warsh’s hawkish policy stance and critical views on quantitative easing have raised concerns among investors about a fundamental shift in monetary policy approach.

Warsh’s Policy Record Raises Market Concerns

Kevin Warsh served on the Federal Reserve Board from 2006 to 2011 during the financial crisis. His tenure provided him with firsthand experience managing one of the most challenging periods in modern economic history.

However, his views on subsequent policy responses have placed him at odds with conventional market expectations.

Since departing from the Fed, Warsh has emerged as one of the most outspoken critics of post-crisis monetary policy.

KEVIN WARSH IS ANOTHER REASON BEHIND THIS MARKET CRASH.

Yesterday’s sell off began when the probability of Kevin Warsh becoming the next Fed Chair surged sharply. ,

This reaction was due to Kevin Warsh’s policy record.

Kevin Warsh is not a new name. He served on the Federal… pic.twitter.com/A8zHtQcus8

— Bull Theory (@BullTheoryio) January 30, 2026

He has consistently argued that quantitative easing programs inflated asset prices without delivering proportional benefits to the real economy.

According to his assessment, these policies primarily benefited financial markets while increasing wealth inequality across society.

Warsh characterized quantitative easing as a “reverse Robin Hood” policy that transferred benefits to those already holding financial assets.

This description underscores his fundamental disagreement with the approach taken by Fed leadership over the past decade.

His critique extends beyond simple policy disagreements to questioning the core framework of modern central banking interventions.

The former Fed governor has also stated that the post-2020 inflation surge represented a policy mistake rather than an unavoidable outcome.

This view suggests he would adopt a less tolerant stance toward prolonged ultra-easy monetary policy compared to recent Fed chairs. Markets interpret this position as signaling potential restrictions on the liquidity injections they have grown accustomed to expecting.

Market Crash Reflects Liquidity Concerns

While Warsh currently supports interest rate cuts, his framework differs significantly from recent Fed approaches. He has advocated for rate reductions paired with continued balance sheet reduction rather than open-ended liquidity provision.

This combination presents a challenging environment for highly leveraged market positions and stretched equity valuations that depend on ample liquidity.

The market reaction was swift and severe across all asset classes. According to market analyst Swazy, approximately $6 trillion in value was erased within 60 minutes of the US market opening.

Gold lost nearly $3 trillion in market capitalization while silver declined by roughly $790 billion during the same period.

$6 TRILLION ERASED IN 60 MINUTES

Gold wiped out nearly $3 trillion
Silver erased nearly $790 billion
S&P 500 lost nearly $780 billion
Nasdaq wiped out $750 billion
Crypto market erased $100 billion

Insane crash at US market open. pic.twitter.com/vlw7Wacq1Y

— Swazy (@SwazySol) January 30, 2026

Traditional equity markets suffered equally dramatic losses as precious metals. The S&P 500 shed approximately $780 billion in value while the Nasdaq experienced losses exceeding $750 billion.

The cryptocurrency market was not spared from the carnage, with the sector losing around $100 billion in total market capitalization.

The core market fear centers on the possibility of rate cuts without accompanying quantitative easing programs. This scenario would represent a departure from the policy playbook markets have relied upon since the 2008 financial crisis.

President Trump’s preference for lower rates conflicts with Warsh’s emphasis on balance sheet discipline, creating policy uncertainty.

The post Kevin Warsh Fed Chair Speculation Triggers $6 Trillion Market Crash Amid QE Concerns appeared first on Blockonomi.

TLDR

KRAKacquisition Corp completed an upsized $345 million IPO, surpassing its initial target of $250 million.

The company’s units began trading on Nasdaq on January 28 under the ticker KRAQU.

Each unit consists of one Class A ordinary share and one-quarter of a redeemable warrant.

Kraken, along with Natural Capital and Tribe Capital, sponsors the blank-check company.

The offering included 34.5 million units, with 4.5 million sold through the exercise of the underwriter’s overallotment option.

KRAKacquisition Corp, a special purpose acquisition company (SPAC) backed by Kraken, has raised $345 million through its upsized initial public offering (IPO). The offering, which was completed on January 28, marks the company’s debut on the Nasdaq Global Market under the ticker symbol KRAQU. The deal exceeded initial expectations, raising more than originally planned, as investor demand led to an upsized offering.

The IPO included 34.5 million units, each priced at $10, with 4.5 million units sold following the exercise of the underwriter’s overallotment option. Gross proceeds reached $345 million before fees and expenses, far surpassing the initial target of $250 million. Kraken, an affiliate of Natural Capital and Tribe Capital, sponsors the blank-check company, which intends to pursue a future merger or acquisition.

KRAKacquisition’s Nasdaq debut

KRAKacquisition Corp’s units began trading on January 28 under the ticker KRAQU. The offering comprised units, each consisting of one Class A ordinary share and one-quarter of a redeemable warrant. Once the units separate, the shares will trade under the symbol KRAQ, and the warrants will trade as KRAQW. Each full warrant is exercisable at $11.50 per share.

Santander US Capital Markets served as the sole underwriter for the offering. A registration statement for the IPO became effective on January 27. “The IPO was completed successfully, thanks to strong demand from investors,” said the company in a press release.

Kraken’s strategy with SPAC-backed listing

KRAKacquisition Corp is sponsored by an affiliate of Kraken, which aims to assess potential merger or acquisition targets over time. The structure of the SPAC allows the company to hold capital in trust while maintaining the flexibility to pursue future transactions. Kraken and its partners are keeping their options open while awaiting the right opportunity for a potential deal.

The decision to use a SPAC route reflects Kraken’s strategic approach, as the company has not yet identified a specific target.

The post Kraken’s SPAC KRAKacquisition Corp Closes $345M IPO, Joins Nasdaq appeared first on Blockonomi.

TLDR

Norway’s sovereign wealth fund saw a 149% increase in its indirect Bitcoin exposure in 2025.

The fund’s total Bitcoin exposure reached 9,573 BTC by the end of 2025.

K33 reported that the fund’s Bitcoin exposure is valued at 8.5 billion NOK or $837 million USD.

The fund has not directly purchased Bitcoin but holds shares in companies with significant Bitcoin holdings.

Strategy, MARA, Metaplanet, Coinbase, and Block are key contributors to the fund’s Bitcoin exposure.

Norway’s sovereign wealth fund, the Government Pension Fund Global, saw its indirect Bitcoin exposure increase by 149% in 2025. The total exposure reached 9,573 BTC, according to K33 data. Despite the fund not directly holding Bitcoin, its investments in companies holding the cryptocurrency have grown significantly.

Indirect Bitcoin Exposure Reaches 9,573 BTC

The Norwegian sovereign wealth fund’s exposure to Bitcoin has risen sharply. By the end of 2025, the fund’s indirect Bitcoin holdings totaled 9,573 BTC. This represents a 149% increase from the previous year. The exposure comes from shares in companies that hold large Bitcoin treasuries, including Strategy, MARA, Metaplanet, Coinbase, and Block. K33, a market analytics firm, reported these figures, with the value of the Bitcoin exposure reaching 8.5 billion NOK or $837 million USD.

Despite the sharp increase, the fund has not directly purchased Bitcoin. “While BTC price action has been horrendous for a while, NBIM’s indirect BTC exposure marches higher,” said Vetle Lunde, Head of Research at K33. He noted that the fund’s indirect Bitcoin holdings have grown despite the challenging market conditions for the cryptocurrency. However, the actual percentage of the fund’s total assets tied to Bitcoin remains small, at just under 0.04%.

Once again, back on duty to cover the indirect BTC ownership of the world's largest sovereign wealth fund, Norway's Oil Fund.

While BTC price action has been horrendous for a while, NBIM's indirect BTC exposure marches higher. It grew by 149% in 2025 to 9,573 BTC. pic.twitter.com/zOIeQYqDx3

— Vetle Lunde (@VetleLunde) January 30, 2026

Strategy, MARA, Metaplanet, Coinbase, and Block Lead the Way

The exposure is primarily from five companies holding Bitcoin. Strategy, a leading company in Bitcoin holdings, accounts for 81% of the fund’s indirect exposure. This translates to 7,801 BTC in indirect exposure from Strategy’s stock. The fund’s largest percentage ownership in a Bitcoin-holding company is with Metaplanet, a Japanese treasury giant. NBIM holds 1.69% of Metaplanet’s stock, which contributes 593 BTC to the fund’s total indirect Bitcoin exposure.

Other companies, such as MARA, Coinbase, and Block, also contribute to the fund’s Bitcoin exposure. The Norwegian sovereign wealth fund holds 618 BTC from MARA, 156 BTC from Coinbase, and 105 BTC from Block. This broad exposure shows the fund’s growing indirect interest in Bitcoin through its investments in companies focused on cryptocurrency.

The growth of Bitcoin exposure within Norway’s sovereign wealth fund highlights the cryptocurrency’s increasing integration into mainstream finance. K33’s data shows that the fund’s holdings are part of a broadly diversified portfolio. The fund holds shares in companies with diverse investments, and its exposure to Bitcoin is a result of this diversification.

Lunde added, “While short-term price action sucks, the growth trend highlights the strong underlying institutional adoption of BTC.” However, he emphasized that the fund’s exposure to Bitcoin is likely a byproduct of its diversified investment strategy rather than a deliberate focus on the cryptocurrency.

The post Norway Fund’s Bitcoin Holdings Surge 149% to 9,573 BTC in 2025 appeared first on Blockonomi.

TLDR:

Bitcoin CoinGlass data shows $14 billion in short liquidations stacked between $84,000 and $100,000 price levels. 

Long-side exposure below current prices totals approximately $1 billion, creating an unprecedented 14:1 leverage imbalance. 

Over 267,000 Bitcoin traders were liquidated in one day as prices dropped 10 percent from recent $90,000 highs this week. 

Each price level breached toward $100,000 could trigger cascading forced buying as concentrated short positions face closure. 

 

Bitcoin markets are witnessing an unprecedented asymmetry in leveraged positions, with Coinglass data revealing approximately $14 billion in short liquidations stacked between $84,000 and $100,000. 

Long-side exposure below current prices stands at roughly $1 billion or less. This 14:1 imbalance has created conditions that veteran traders recognize as potentially explosive, though recent market volatility demonstrates the unpredictable nature of such setups.

Short Squeeze Mechanics Point to Volatile Price Action

The concentration of short positions creates a specific market dynamic that experienced traders monitor closely. Liquidation maps track where leveraged positions face forced closure when prices move against them.

Short liquidations trigger automatic market buy orders. Multiple liquidations occurring simultaneously generate cascading buy pressure across exchanges.

This mechanism forms the foundation of short squeeze events. Price increases force shorts to close positions. Those closures push prices higher still.

Additional shorts then face liquidation at elevated levels. The cycle continues until the concentrated positions clear or buying pressure exhausts itself.

The current setup between $84,000 and $100,000 represents an unusually dense liquidation zone. Each price level breached within this range could activate the next wave of forced buying.

Traditional market structures rarely display such pronounced asymmetry. Downside liquidation risk appears comparatively minimal based on available data.

Market participants from Milk Road highlighted this imbalance through a detailed analysis of leverage positioning.

The trading platform emphasized that such extreme ratios warrant attention from both bullish and bearish market participants. However, the data alone cannot predict actual price movement or guarantee specific outcomes.

What happens when $14B in shorts are stacked against just $1B in longs?

(Save this. You'll come back to it.)

The current asymmetry in long/short leverage is insane.

And whether you're bullish or bearish, you need to understand what's happening beneath the surface.

Coinglass… https://t.co/VSc8h1AZy4 pic.twitter.com/6WasgB7Bae

— Milk Road (@MilkRoad) January 30, 2026

Recent Volatility Demonstrates Double-Edged Nature of Leverage

The theoretical potential for upward pressure meets practical market realities that complicate straightforward predictions. Over 267,000 Bitcoin traders experienced liquidations during a single trading session recently.

Prices fell approximately 10 percent from the $90,000 highs. This event illustrates how quickly leveraged positions unwind regardless of prevailing imbalances.

Liquidation maps show potential catalysts rather than predetermined outcomes. Sophisticated market makers and institutional players access identical data.

These entities can deliberately target liquidity concentrations in either direction. Strategic positioning allows them to profit from forced liquidations rather than falling victim to them.

Similar leverage imbalances have appeared in previous market cycles without triggering anticipated squeezes. External factors including regulatory developments, macroeconomic shifts, and broader risk sentiment often override technical positioning.

The fuel for explosive moves exists within the current market structure. Whether that fuel ignites depends on numerous variables beyond simple leverage ratios.

A sustained move toward $100,000 would necessarily traverse the concentrated short liquidation zone. The mechanical buying pressure from forced closures could accelerate momentum significantly.

Yet the same market that built these positions can dismantle them through coordinated action or sudden sentiment shifts. Traders watching this setup recognize both the opportunity and the inherent unpredictability of highly leveraged markets.

 

The post Bitcoin’s $14B Short Squeeze Setup: Extreme Leverage Imbalance Creates Explosive Conditions appeared first on Blockonomi.

TLDR

Circle plans to upgrade its infrastructure in 2026 to support institutional adoption of stablecoins like USDC and EURC.

The company aims to move its Arc blockchain from testnet to production, enabling better support for high-volume institutional activities.

Circle is focused on strengthening Arc’s integration with additional blockchain networks to improve cross-chain functionality for stablecoins.

The company is expanding its payments network to allow institutions to adopt stablecoin payments without building their own infrastructure.

Circle’s goal is to make stablecoin products more accessible and practical for everyday use in business transactions and financial tasks.

Circle has revealed plans to enhance its infrastructure in 2026, aiming to drive the widespread use of stablecoins in the banking sector. The company is focusing on upgrading its systems to attract more institutional clients. With this move, Circle aims to make its stablecoin products more accessible and efficient for daily use in institutional settings.

Circle’s Focus on Arc Blockchain Integration

Circle is prioritizing the transition of its Arc blockchain from testnet to production, a major step toward supporting institutional clients. Arc, designed specifically for high-volume, enterprise applications, will play a central role in improving the usability of Circle’s stablecoin products. According to Nikhil Chandhok, Circle’s chief product and technology officer, the goal is to make it easier for institutions to hold, move, and program with Circle’s stablecoins as part of their routine activities.

Circle is also working to strengthen Arc’s integration with other blockchain networks. This effort will make Circle’s stablecoin products like USDC and EURC more widely usable, bridging gaps between different systems and networks. By enhancing cross-chain support, Circle intends to improve the accessibility and utility of stablecoins for enterprise use.

Expanding Payments Network for Institutional Use

In addition to developing Arc, Circle is expanding its payments network to simplify the use of stablecoins in business operations. The company’s goal is to allow institutions to adopt stablecoin payments without building their own infrastructure. This move is part of Circle’s larger plan to make stablecoins a more practical tool for tasks like remittances, treasury management, and payments.

Circle’s initiative aims to lower the barrier for companies to adopt stablecoin technology. By offering robust infrastructure, Circle hopes to encourage more businesses to use its stablecoin products in their financial transactions. This change comes as institutions look for secure, regulated methods to integrate digital assets into their operations.

In 2025, the stablecoin market experienced major shifts following new regulations introduced in the U.S. These regulations have spurred greater interest from banks and institutions, paving the way for more adoption of regulated digital assets. Circle is positioning itself to capitalize on this trend, with a focus on meeting the increasing demand for stablecoins in institutional markets.

The company’s long-term investment in infrastructure is expected to make its stablecoin products more widely adopted and easier to use. By improving tools for developers and creating better integrations, Circle is paving the way for more institutions to adopt its products.

The post Circle Advances Arc Blockchain for Institutional Stablecoin Integration appeared first on Blockonomi.

TLDR

Netflix stock found support after a 40% drop from last year’s all-time high.

The company’s Q4 earnings exceeded expectations with a 17% revenue increase.

Free cash flow remained strong, showing Netflix’s resilience despite market challenges.

The broader market’s shift to a positive outlook could boost Netflix’s stock.

Netflix’s post-earnings rebound signals potential for a 40% rally in the coming months.

Netflix Inc. (NASDAQ: NFLX) seems to have found its footing after a challenging period. The company’s stock, which fell 40% from its peak last year, recently saw a shift in momentum following its Q4 earnings report. With expectations at a low point, Netflix posted solid results, providing new hope for investors looking for growth.

Netflix Stock Shows Resilience Post-Earnings

The Q4 earnings report may not have been a game-changer, but it still exceeded analyst expectations. Netflix posted a 17% year-over-year revenue increase, beating both earnings and revenue forecasts. This surprised many who had anticipated further disappointment, showing the company’s ability to maintain solid growth despite facing market headwinds.

Despite a challenging environment, Netflix demonstrated strong free cash flow, showing that its business model remains robust. The company’s global audience is approaching one billion users, a clear indication of Netflix’s continued relevance in the entertainment sector. “The latest earnings report has eliminated a major source of uncertainty,” said a market analyst, noting that the report gave investors a reason to regain confidence.

The broader market environment has shifted to a more positive outlook, which could benefit Netflix in the coming months. After months of selling, the stock has found support, with the post-earnings price action reflecting investor optimism. The bounce that followed the earnings report suggests the stock could be poised for further gains, especially with much of the downside already priced in.

As the S&P 500 sets new highs, investors are once again attracted to deeply discounted mega-cap stocks with improving fundamentals. With the pressure from last year easing, Netflix stock has started to show signs of recovery. Its fundamentals now align better with the broader market sentiment, positioning the stock for potential upside.

Technical Indicators Suggest Possible Rally

On the technical front, Netflix stock has shown encouraging signs. After gapping down the day following its earnings release, the stock quickly rebounded, signaling potential for further recovery. While it remains to be seen whether Netflix can break its multi-month downtrend, this price action has provided hope for investors looking for a rebound.

Investor sentiment has clearly shifted, and the current low price level might serve as a foundation for a 40% rally. With Netflix’s solid earnings and the broader market trending upwards, the stock is well-positioned to take advantage of improving market conditions. I

The post Netflix Stock Bounces Back After Earnings Beat, Is a 40% Rally Ahead? appeared first on Blockonomi.

When $19 billion in leveraged positions evaporated within 24 hours last October, perpetual futures traders learned an expensive lesson about liquidity provider models. A flash crash that liquidated 1.62 million accounts across centralized and decentralized venues exposed a fundamental flaw in how most perpetual DEXs manage liquidity. When markets turn violent, the very pools meant to provide stability become transmission mechanisms for contagion.

Hyperliquid’s $12 million loss on a single micro-cap token earlier in 2025 illustrated the problem perfectly. A trader forced the platform’s HLP vault to inherit a massive short position, then pumped the token’s price from $10 million to $50 million market cap in under an hour. The vault, designed to absorb liquidations and provide market-making, found itself bleeding unrealized losses while bid depth evaporated.

The incident required manual intervention to prevent insolvency, but it could have been avoided altogether. With a proper risk-managed model, like that offered by HFDX, the liquidity would have escaped destruction – but where did this new platform come from?

When unlimited risk exposure meets market stress

The issue certainly isn’t unique to Hyperliquid. GMX’s GLP model similarly exposes liquidity providers to direct trader profit and loss, creating a zero-sum dynamic where sustained directional moves can drain pools. When traders win big, LPs lose proportionally, which affects users universally.

During October’s liquidation cascade, insurance funds across multiple platforms were overwhelmed, forcing Auto-Deleveraging that closed profitable positions to maintain solvency. Traders running sophisticated hedged strategies watched their short positions forcibly liquidated while unprofitable longs remained open, breaking carefully constructed risk management.

The common thread? Liquidity models that expose providers to unlimited downside create systemic fragility, and traders are nearing their limit.

Fixed-rate capital vs. variable vault exposure

HFDX approaches liquidity provision from a different architectural starting point. Rather than asking liquidity participants to absorb unlimited trading PnL exposure through variable-return vault shares, the platform structures capital participation through Liquidity Loan Notes with pre-defined, fixed-rate returns over stated terms. This isn’t semantic difference but a fundamental structural divergence that changes how the protocol handles market stress.

Under this LLN model, it means liquidity participants aren’t counterparties to individual trades. They’re not inheriting massive liquidated positions that must be unwound into evaporating order books. Instead, returns are backed by protocol trading fees and borrowing costs rather than being dependent on whether aggregate trader performance happens to be profitable or loss-making during any particular period.

It’s a term structure that prevents the panic withdrawal cascades that turned October’s flash crash into an extended crisis for platforms dependent on always-available vault liquidity. Importantly, this design choice reflects HFDX’s broader positioning as a financial infrastructure rather than a speculation vehicle, meaning the platform makes for a broader offering than competitors.

Evaluating structural trade-offs

The trade-off, naturally, is that LLN participants forgo the potential upside of variable vault yields during favorable conditions. When markets are calm and trading volumes steady, platforms like Hyperliquid can deliver attractive LP returns. The crucial question experienced traders are asking post-October, though, is whether that upside compensates for demonstrated tail risk.

For perpetual traders evaluating where to deploy capital, the relevant comparison isn’t whether HFDX promises higher returns than competitors. It’s whether the platform’s risk-managed approach to liquidity provision can deliver consistent depth without the structural fragility that turned 2025 into a year of expensive lessons.

The answer depends on whether you believe transparent, term-committed capital structures matter more than chasing variable yields that occasionally reverse violently. The data so far? It shows us that more often than not, it’s essential.

Make Your Money Work Smarter And Unlock A Wealth Of Opportunities With HFDX Today!

Website: https://hfdx.xyz/

Telegram: https://t.me/HFDXTrading

X: https://x.com/HfdxProtocol

The post Market Turmoil Pushes Perp Traders Toward HFDX’s Risk-Managed Liquidity Model appeared first on Blockonomi.

The perpetual DEX space spent 2025 relearning an expensive lesson: decentralization claims mean nothing if your infrastructure fails when traders need it most. In October 2025, dYdX experienced an eight-hour chain halt during a $19 billion liquidation cascade, the largest in crypto history. An order-of-operations bug in isolated market liquidation logic triggered a protocol failsafe that froze all trading, including oracle price updates. But that was just the beginning.

When the chain resumed, stale oracle data caused the matching engine to execute trades at incorrect prices, compounding losses for thousands of positions. Two months later, Paradex suffered a database migration error that displayed Bitcoin at zero dollars during routine maintenance, triggering mass liquidations before engineers responded two and a half hours later.

Watching multiple platform choose to rollback to restore affected positions raises uncomfortable questions. Does blockchain immutability even matter when a Stage 0 rollup can simply rewind the tape? Are there any alternatives left out there which truly respect the technology?

What infrastructure failures reveal about market leaders

These incidents weren’t isolated technical glitches. They exposed fundamental architectural vulnerabilities that sophisticated traders now screen for before deploying capital. dYdX’s market share collapsed from seventy-three percent to seven percent within twelve months, not because Hyperliquid offered better marketing, but because the complex v3-to-v4 migration created friction exactly when competitors offered smoother onboarding.

Paradex’s multiple infrastructure failures across eighteen months – September 2024 bot attacks, March 2025 service outages, January 2026 rollback – revealed operational fragility that zero retail fees couldn’t overcome. The pattern shows that perpetual platforms optimized for performance and user acquisition often ignore the unglamorous work of building resilient infrastructure.

Even now, single oracle addresses controlling price feeds without multi-signature requirements persist on certain dominant platforms. Literal control of insurance funds sized at sixteen million dollars relative to billions in daily open interest. Validator sets where the founding team controls supermajority stake. These aren’t theoretical vulnerabilities, but they’re documented single points of failure that have already cost traders billions.

Building infrastructure that survives market stress

Having studied and learned from every major failure mode, HFDX is offering a much more reliable and sustainable outlook. The protocol employs multiple independent oracle providers with automatic failover, addressing the stale price feed problem that destroyed positions during dYdX’s October halt. Price deviation alerts trigger before liquidations execute if oracle sources diverge beyond tolerance thresholds.

Its insurance fund is structured for automatic deployment during system-level shortfalls rather than requiring governance votes that arrive after damage is done, a direct response to dYdX’s post-incident compensation process that took weeks to materialize. Critically, HFDX’s architecture eliminates the migration complexity that drove traders away from established platforms, too.

There’s no v3-to-v4 forced transition requiring users to bridge assets, learn new wallet systems, or risk stranded tokens if they miss arbitrary deadlines. The forty-five thousand holders who found twenty-five million dollars in ethDYDX permanently locked after dYdX’s June 2025 bridge closure illustrate why clean initial architecture matters more than ambitious upgrade paths.

It’s topped off with Liquidity Loan Note strategies. They operate transparently with returns funded by actual protocol revenue, trading fees and borrowing costs, rather than token emissions that attract mercenary capital. This matters because dYdX’s market share collapse was accelerated by heavy emissions that created unsustainable, artificial volume. When incentives dried up, traders left – something which HFDX appears to address well.

Evaluating platforms that work when it matters

No platform is risk-free. HFDX acknowledges that perpetual trading involves liquidation risk, smart contract risk, and market volatility that no infrastructure can eliminate. The difference, though, is in building systems specifically designed to prevent the failure modes that took down platforms with smart teams and good intentions.

When evaluating where to trade with leverage, the question is no longer simply which platform promises the highest uptime percentage. It’s increasingly becoming which platform you trust to remain operational during the next forty-five minute flash crash that liquidates nineteen billion dollars.

For traders who value infrastructure that works when it matters most, HFDX represents an approach built after the industry learned expensive lessons on someone else’s capital.

Make Your Money Work Smarter And Unlock A Wealth Of Opportunities With HFDX Today!

Website: https://hfdx.xyz/

Telegram: https://t.me/HFDXTrading

X: https://x.com/HfdxProtocol

The post Traders Seek Safer Perp DEX Infrastructure After Paradex And dYdX Volatility appeared first on Blockonomi.

On-chain analytics platforms tracking perpetual DEX activity reveal an interesting pattern emerging across the sector: sophisticated capital is rotating into infrastructure-grade trading protocols at an accelerating pace. While Hyperliquid commands the lion’s share of attention with its $4+ billion TVL and Paradex offers zero-fee trading on Starknet, wallet-level data suggests experienced traders are increasingly looking to alternatives that prioritize transparent risk management and sustainable revenue models.

In fact, the metrics reveal something quite distinct from social media sentiment. Open interest growth, arguably the most reliable indicator of genuine capital commitment, since it cannot be wash-traded, has become the primary method through which institutional participants assess platform worth.

Nansen’s latest cohort analysis of wallets labeled as “Smart DEX Traders” and “Smart LPs” shows distinct diversification behavior. Traders who historically concentrated positions on a single platform are now splitting exposure across multiple protocols, testing infrastructure before committing significant capital. Among these protocols stands HFDX – an increasingly visible alternative experiencing growing interest from whale wallets.

Infrastructure That Addresses Documented Failures

HFDX enters this landscape with a value proposition centered on what sophisticated traders actually value most: verifiable on-chain settlement, transparent liquidation mechanisms, and revenue derived from real trading activity rather than inflationary token emissions. The platform’s architecture has been carefully designed to address several key pain points in existing perpetual DEXs.

Hyperliquid’s centralization concerns, for example, were highlighted by the JELLY manipulation incident – where the team manually intervened to close positions and delist a token. This showed the true face of discretionary control masquerading as decentralization. Next on the list is Paradex’s January 2026 database error, which triggered mass liquidations and required an eight-hour chain rollback, underscoring infrastructure brittleness during stress events.

Its LLN strategy framework differentiates HFDX from vault-based models that expose liquidity providers to trader PnL during volatile periods. By offering pre-defined, fixed-rate returns backed by protocol trading fees and borrowing costs rather than token inflation, it appeals to capital that prioritizes risk-adjusted returns over speculative upside. This mirrors the behavior observed in Glassnode’s data on institutional wallet preferences: a shift from yield-farming mercenary capital toward protocols with transparent, sustainable economics.

On-chain behavior reveals sophisticated participation

Early indicators suggest HFDX is attracting the specific cohort of traders who conduct thorough due diligence. In particular, wallet clustering analysis reveals patterns consistent with sophisticated participants. Multiple smaller test transactions are seen before larger commitments, interaction with governance contracts to understand protocol parameters, and stablecoin deposits timed to market consolidations rather than euphoria peaks are all visible.

Furthermore, the perpetual DEX landscape keeps proving that technical excellence alone doesn’t guarantee sustained adoption. dYdX’s market share collapsed from 73% to 7% despite pioneering decentralized order books, undone by unsustainable token emissions that attracted mercenary capital. Hyperliquid’s success proves that zero gas fees and sub-second finality matter, but its $256 million outflow following DPRK-linked wallet concerns highlights how quickly centralization erodes confidence.

Instead, HFDX positions itself as infrastructure rather than speculation. It’s essentially a smarter, calculated bet that the next wave of institutional capital will prioritize audit transparency, custody safety, and regulatory clarity over raw leverage limits.

Signal beats certainty

It should go without saying, but tracking whale exposure provides signal, not certainty. Even platforms with genuine smart money adoption face execution risk, liquidity challenges, and competitive pressure.

But when Arkham Intelligence and Nansen data show consistent deposit patterns from wallets with proven track records, it’s important to take notice. They have often revealed hidden features, like the accumulation before the UST collapse became visible, or exiting FTX weeks before the liquidity crisis.

The blockchain provides transparency traditional markets cannot match. For traders evaluating where to allocate margin in an increasingly fragmented perpetual DEX landscape, HFDX’s on-chain behavior offers more reliable signal than marketing claims ever could, and is well worth looking into further.

Make Your Money Work Smarter And Unlock A Wealth Of Opportunities With HFDX Today!

Website: https://hfdx.xyz/

Telegram: https://t.me/HFDXTrading

X: https://x.com/HfdxProtocol

The post Smart Money Tracker Shows Growing Whale Exposure to HFDX Perp Markets appeared first on Blockonomi.

TLDR

Sen. Thom Tillis opposes Kevin Warsh’s nomination for Federal Reserve chair until the DOJ probe into Powell is resolved.

The DOJ investigation into Powell stems from the Fed’s headquarters renovation and his testimony before Congress.

Tillis’ opposition could create a stalemate in the Senate Banking Committee, delaying Warsh’s nomination process.

Democrats, led by Senator Elizabeth Warren, criticize Warsh’s nomination, citing concerns over Trump’s influence on the Fed.

Warsh, a former Fed governor, faces challenges amid the political climate and ongoing legal investigations into Powell.

Senator Thom Tillis has stated that he will oppose the nomination of Kevin Warsh as Federal Reserve chair until the criminal probe of Jerome Powell is resolved. Tillis, a member of the Senate Banking Committee, emphasized the importance of protecting the Federal Reserve from political influence. He made his position clear in a statement, stressing that the Federal Reserve’s independence is non-negotiable.

Tillis Rejects Warsh Nomination Amid Powell’s DOJ Investigation

According to a CNBC report, Senator Tillis declared that he will oppose the confirmation of Kevin Warsh for Federal Reserve chair. He cited the ongoing investigation by the Department of Justice (DOJ) into Chairman Jerome Powell as his reason.

“I will oppose the confirmation of any Federal Reserve nominee, including for the position of Chairman, until the DOJ’s inquiry into Chairman Powell is fully and transparently resolved,” Tillis stated.

The criminal investigation stems from the Federal Reserve’s renovation of its headquarters and Powell’s testimony before Congress regarding the project. Powell believes the investigation is politically motivated, as it coincides with his refusal to cut interest rates at President Trump’s request. Tillis, however, emphasized that this issue must be resolved before moving forward with any new nominations for the Federal Reserve.

Potential Stalemate in Senate Banking Committee

Tillis’s opposition could create a roadblock for Warsh’s nomination, as he is a key member of the Senate Banking, Housing, and Urban Affairs Committee. This committee has 13 Republicans and 11 Democrats, meaning a single Republican vote against Warsh would likely lead to a stalemate.

Without a recommendation for approval, Warsh’s nomination would not be sent to the full Senate for a vote. Warsh, who was nominated by President Trump, is a former Federal Reserve governor with a deep understanding of monetary policy.

Despite Tillis’s opposition, Warsh’s supporters argue that his qualifications make him a suitable candidate to lead the Federal Reserve. However, the ongoing DOJ probe and the political climate surrounding the nomination could make the confirmation process more difficult.

Criticism from Democrats on Kelvin Warsh’s Nomination

Democratic lawmakers have also voiced concerns over Warsh’s potential nomination. Senator Elizabeth Warren of Massachusetts criticized the move, saying that no Republican claiming to care about the Federal Reserve’s independence should support Warsh.

“This nomination is the latest step in Trump’s attempt to seize control of the Fed,” Warren stated, citing Warsh’s past support for Wall Street.

The growing tension around Warsh’s nomination reflects broader political divisions over the future leadership of the Federal Reserve. The ongoing investigation into Jerome Powell further complicates an already contentious nomination process. While some Republicans support Warsh’s candidacy, the political and legal challenges surrounding the nomination could delay or derail the confirmation altogether.

The post Sen. Tillis Opposes Kevin Warsh’s Nomination for Fed Chair Over DOJ Investigation Into Powell appeared first on Blockonomi.

TLDR

Britain seeks to strengthen ties with China through business deals, including a $15 billion investment by AstraZeneca.

China agreed to halve tariffs on Scotch whisky, benefiting Scottish distillers, and visa-free travel was granted for British travelers.

Earlier, the European Union paused its trade deal with the U.S. amid escalating tariff threats from President Trump.

India and the European Union finalized a major trade deal after two decades of negotiations, improving economic relations.

Canada has eased tariffs on Chinese electric vehicles, signaling a shift in its trade policy toward China.

The relationship between Britain and China is improving, as U.K. Prime Minister Keir Starmer visits China for the first time in eight years. While no major trade agreements were made, several business deals were announced, signaling a shift in Britain’s foreign policy.

Focus on Trade with China

During his visit, Prime Minister Starmer emphasized business over politics, aligning with Britain’s economic needs. With both economies under pressure, Britain seeks to revive its economy by forging stronger ties with China. AstraZeneca announced a $15 billion investment in China, its largest ever there.

British energy firm Octopus Energy also confirmed its entry into the Chinese market, marking its first expansion into the country. In addition to these deals, China agreed to halve tariffs on Scotch whisky, benefiting Scottish distillers. Moreover, British travelers will now enjoy visa-free travel to China for 30 days. These measures aim to stabilize economic relations, especially as the U.S. continues to reshape global trade.

Prime Minister Starmer and his government have framed this new phase of relations as a way to support domestic growth while managing geopolitical risks. The U.K. insists it does not need to choose between its relationship with the U.S. and China, viewing both as essential to its future prosperity.

Is the U.S. Losing Ground as Countries Forge New Trade Ties?

As reported earlier by Blockonomi, the European Union has paused the approval process for its trade deal with the U.S. following President Donald Trump’s escalating tariff threats. The U.S. had warned that it would impose tariffs on several European countries unless it gained control over Greenland.

Bernd Lange, Chairman of the European Parliament’s international trade committee, said the EU had “no alternative but to suspend work” on the deal due to the tariff threats. The deal, which was supposed to cap U.S. tariffs on most EU products at 15%, now faces uncertainty.

In another business-related development, India and the European Union have finalized a major trade agreement after nearly two decades of negotiations. Prime Minister Narendra Modi confirmed the deal during a speech, calling it a “turning point” for bilateral relations. On the other hand, Canada has taken a different approach to trade policy, easing tariffs on Chinese electric vehicles.

China vs. U.S.: The Ongoing Economic Power Struggle

According to a World Bank report, the U.S. and China remain the two largest global economies, dominating both nominal GDP and purchasing power parity (PPP). The U.S. leads in nominal terms, while China has been at the top of PPP since 2014.

As of last year, the U.S. economy is projected to be worth $30,507 billion, ahead of China’s $19,232 billion in nominal GDP. In PPP terms, China’s economy is forecasted to surpass the U.S., with China’s GDP valued at $40,716 billion compared to the U.S. at $30,507 billion.

Despite the disparity in per capita income, the competition between the U.S. and China for global economic leadership is intensifying. Both countries’ GDP growth rates have fluctuated over the years, with China showing higher growth in recent decades.

The post U.K. Moves Closer to China with Major Deals as U.S. Faces Trade Challenges appeared first on Blockonomi.

TLDR:

US Bank tests Stellar stablecoin issuance with PwC while Marshall Islands deploys UBI payments on network 

Dell joins Hedera’s AI integrity platform alongside NVIDIA and Intel for Verifiable Compute initiative 

Ripple’s RLUSD stablecoin gains regulatory approval in Dubai and Abu Dhabi for legal operations 

XDC Network becomes first public blockchain member of Alternative Investment Management Association

 

Recent market conditions have led many observers to question the viability of cryptocurrency assets. However, beneath the surface of declining prices, enterprise blockchain adoption continues to accelerate.

A comprehensive analysis from Web3Alert highlights seven substantial developments across major blockchain networks during the past three months.

These advancements demonstrate that institutional interest and real-world implementation remain strong regardless of price volatility.

Most people assume crypto is dead because of how the markets are looking.

But time & time again, this industry proves that progress is the loudest when price is most quiet.

We've been in a downtrend for ~3 months now

But even then… Progress isn't just visible.

It's clear as… pic.twitter.com/rEqAQKRa9P

— Web3Alert (@theweb3alert) January 30, 2026

Financial Giants Enter Blockchain Infrastructure

Stellar has secured partnerships with two major institutional players in recent weeks. US Bank, among America’s largest financial institutions, now tests stablecoin issuance on Stellar alongside PwC.

The Marshall Islands government has deployed universal basic income payments through the network. These moves strengthen Stellar’s position in both tokenization and payment systems.

Hedera’s collaboration with technology leaders continues to expand. Dell and EQTYLabs released a report on Verifiable Compute technology.

This initiative builds on Hedera’s AI integrity platform developed with NVIDIA and Intel. Accenture previously joined the effort, and Dell’s participation as a Hedera council member adds credibility.

Ripple’s RLUSD stablecoin has gained regulatory approval across multiple jurisdictions. Dubai and Abu Dhabi financial authorities have authorized the token for legal use.

The stablecoin now integrates with leading real-world asset infrastructure platforms. These approvals mark progress in Ripple’s expansion strategy beyond its initial market.

Quant’s selection for the UK Finance GBTD program extends its work in British banking infrastructure. The project targets official bank deposits following Quant’s role in the UK RLN.

Banking institutions, FinTech providers, and external services rely on Quant’s blockchain backbone. The technology now serves as essential infrastructure for on-chain banking operations.

Global Trade and Institutional Asset Management

IOTA’s ADAPT program advances Africa’s trade modernization efforts alongside the World Economic Forum. The initiative follows TLIP and TWIN projects focused on continental trade systems.

Digital identities, data exchange protocols, and payment innovations form the program’s core. African trade organizations and global leaders collaborate on rebuilding trade architecture through IOTA technology.

Ondo Finance launched an on-chain fund with State Street and Galaxy Digital. The asset management platform previously established Global Markets and achieved institutional adoption.

State Street’s involvement signals growing traditional finance participation in blockchain-based funds. The collaboration combines expertise from established asset management and digital finance sectors.

XDC Network became the first public distributed ledger technology member of the Alternative Investment Management Association.

The organization develops regulations and frameworks for alternative asset classes. XDC’s focus on trade receivables, agribusiness tokenization, and global trade aligns with AIMA’s mission. The membership places XDC among elite institutional finance organizations.

Web3Alert emphasized that these developments occurred during three months of downward price trends. The tweet noted that progress remains visible despite market conditions that drive retail participants away.

Enterprise blockchain adoption continues independent of short-term price movements across digital asset markets.

The post Enterprise Blockchain Adoption Accelerates as Seven Major Partnerships Emerge During Market Decline appeared first on Blockonomi.

TLDR

American Express reported fourth-quarter earnings of $3.53 per share, missing analyst estimates of $3.54 per share

Revenue rose 10% to $18.98 billion, beating Wall Street’s expectations of $18.92 billion

The company forecasts 2026 revenue growth of 9% to 10% with earnings between $17.30 and $17.90 per share

Card member spending increased 9% while net card fee revenues grew by double digits

American Express announced a 16% dividend increase to 95 cents per share starting in the first quarter

American Express shares dropped 2.8% in premarket trading Friday after the company reported mixed fourth-quarter results. The credit-card giant posted earnings that fell short of expectations while revenue topped Wall Street forecasts.

The company reported earnings of $3.53 per share for the fourth quarter. That figure came in just below the analyst consensus estimate of $3.54 per share, according to FactSet.

Revenue painted a brighter picture. Net income totaled $2.46 billion, up from $2.17 billion in the prior year period.

$AXP (American Express) #earnings are out: pic.twitter.com/mWp9Rq0gfP

— The Earnings Correspondent (@earnings_guy) January 30, 2026

Revenue net of interest expenses reached $18.98 billion, marking a 10% increase from last year. The result exceeded Wall Street’s projection of $18.92 billion.

The revenue growth came from multiple sources. Higher card member spending drove the increase, along with card fee growth and increased net interest income from growing revolving loan balances.

Card member spending climbed 9% during the quarter. Net card fee revenues grew by double digits, showing strong demand for the company’s premium offerings.

Expenses Rise With Customer Engagement

Company expenses increased 10% to $14.5 billion. The jump stemmed largely from higher variable customer engagement costs tied to increased spending and the launch of new Platinum cards.

American Express laid out its expectations for the year ahead. The company forecasts 2026 revenue growth of 9% to 10%, maintaining the same pace as 2025.

2026 Outlook and Dividend Boost

The earnings guidance for 2026 ranges from $17.30 to $17.90 per share. The midpoint of that range sits slightly above the analyst estimate of $17.43 per share.

The company announced a dividend increase of 16% to 95 cents per share. The new dividend rate takes effect in the first quarter.

Shares had already fallen 3.1% in 2026 through Thursday’s close. The decline comes partly from uncertainty around President Donald Trump’s proposal to cap credit-card interest rates at 10% for one year.

Other financial stocks showed weakness in early trading. Capital One Financial dropped 0.7% while JPMorgan Chase fell 0.4%.

Card network stocks also declined. Visa slipped 1% and Mastercard dropped 0.6% in premarket trading.

The broader S&P 500 fell sharply in early premarket trading. The index recovered some ground after Trump nominated Kevin Warsh, former Federal Reserve governor, to be the next Fed chair.

American Express has maintained that its customer base continues spending and paying bills despite broader consumer confidence declines. The company targets higher-income consumers willing to pay premium fees for cards offering perks and benefits.

The post American Express (AXP) Stock Falls Despite Revenue Beat After Q4 Earnings Report appeared first on Blockonomi.

TLDR

Tesla stock fell 3.36% to $416.98 after posting Q4 revenue decline of 3% and 60% EPS drop

Company ending Model S and Model X production to focus on autonomous vehicles and robotics

Full self-driving subscribers reached 1.1 million with 38% annual growth

Cybercab autonomous vehicle production starts in April with robotaxi expansion planned

2026 capital spending to exceed $20 billion, more than double 2025’s $8.5 billion

Tesla shares extended their recent slide Thursday, finishing down 3.36% at $416.98. The electric vehicle maker is now down more than 11% over the past month as investors process the company’s fourth-quarter results and strategic direction.

The earnings report delivered a split message. Fourth-quarter revenue declined 3% year-over-year. Earnings per share dropped a steep 60%. Automotive revenue fell 11% as vehicle deliveries slumped 16% during the period.

But CEO Elon Musk used the earnings call to outline a dramatic shift in strategy. “We’re really moving into a future that is based on autonomy,” Musk told analysts.

Goodbye Model S and Model X

Tesla will stop making its Model S sedan and Model X SUV next quarter. These vehicles helped establish Tesla as a serious automaker, with the Model S debuting in 2012.

Musk framed the decision as necessary for the company’s evolution. “It’s time to basically bring the Model S and X programs to an end with an honorable discharge,” he said. “It’s part of our overall shift to an autonomous future.”

The production lines will be retooled to manufacture new products like the Cybercab robotaxi and Optimus humanoid robots.

The Autonomous Push

Tesla disclosed it now has 1.1 million paying full self-driving subscribers. That represents 38% growth from a year ago, outpacing the company’s 22% vehicle delivery growth.

Around 500 robotaxis currently operate in Austin and San Francisco. Tesla wants to expand to seven additional cities in the first half of 2026. The company plans to double its robotaxi fleet monthly.

Cybercab production begins in April. This purpose-built autonomous vehicle will ship without a steering wheel. Analysts expect Tesla could surpass Waymo’s 2,000-vehicle fleet by April.

Musk even suggested converting Cybertruck production to autonomous delivery vehicles for urban cargo transport.

Betting on Robots and AI

Tesla plans to unveil its Optimus Gen 3 humanoid robot this quarter. Production should start before year-end with capacity eventually reaching 1 million units annually.

One analyst estimated that selling 500,000 Optimus robots at $50,000 each would generate $25 billion in revenue. The discontinued Model S and X brought in roughly $3 billion.

Free cash flow dropped 30% to $1.4 billion in Q4. This pressure will continue through 2026 as Tesla ramps up AI and manufacturing investments.

Capital expenditures will top $20 billion this year, up from approximately $8.5 billion in 2025. The spending covers AI infrastructure and new production facilities.

What’s Missing

Tesla didn’t provide 2026 delivery guidance. The company only said deliveries “will be impacted by aggregate demand for our products, supply chain readiness and allocation decisions.”

Energy storage deployment grew 29% to 14.2 gigawatt-hours in Q4. The stock trades at a price-to-earnings ratio around 389.

Wedbush analyst Dan Ives believes Tesla could hit a $2 trillion market cap in early 2026 and potentially $3 trillion by year-end in an optimistic scenario. The company currently trades at a $1.4 trillion valuation.

The post Tesla Shares Pull Back on Q4 Earnings — Buying Opportunity? appeared first on Blockonomi.

TLDR

LULU stock dropped 3.24% to $180.35 following see-through leggings scandal

CEO Calvin McDonald stepping down during quality crisis and brand reputation damage

Company told customers to wear different underwear to fix $108 defective tights

Failed $500 million Mirror acquisition and Disney collaboration hurt brand credibility

Shares down 56% over 12 months with 20 Hold ratings versus one Buy rating

Lululemon is in crisis mode. The yoga pants pioneer that built a cult following on quality is now defending defective products and searching for new leadership.

Shares fell to $180.35 yesterday, down 3.24%. The catalyst? A disastrous product launch that’s become a case study in what happens when premium brands cut corners.

The $108 “Get Low” leggings became see-through when customers moved or bent. Instead of recalling the product, Lululemon suggested women wear different underwear. Retail analyst Neil Saunders didn’t mince words, calling the response “honestly, that’s a joke.”

His point hits hard. Premium brands charging premium prices shouldn’t ask customers to work around defective products.

Fast Fashion Approach Backfires

CEO Calvin McDonald pushed to speed up product development. The strategy aimed to get new items into stores faster. But rushing appears to have sacrificed the quality control that made Lululemon special.

Chief Brand and Product Activation Officer Nikki Neuburger faced hundreds of employees last week. The global meeting was supposed to showcase new designs. Instead, she explained why the latest tights were exposing customers.

Social worker Amore Prince tested the leggings in-store. Even after staff suggested different sizes, she concluded the product “just doesn’t work.”

McDonald is now departing. Elliott Investment Management wants retail veteran Jane Nielsen to take over. Founder Chip Wilson has nominated three board directors and publicly criticized the company’s direction.

Brand Confusion Grows

The company’s attempts at expansion have misfired repeatedly. The $500 million Mirror fitness device purchase ended in discontinuation three years later. A personal care products line went nowhere.

Recent collaborations flopped too. A Disney partnership got roasted on social media as “random” and “basic AF.” Guggenheim Securities analyst Simeon Siegel said early adopters feel “disenfranchised.”

The brand that created athleisure now chases fast-fashion trends. Retail analysts say Lululemon has gone from industry leader to follower.

Stock Performance and Outlook

LULU shares have crashed 56% over the past year. The stock hit new lows this week as the leggings crisis intensified.

Wall Street remains cautious. Twenty analysts rate the stock a Hold. Only one recommends buying. The average price target sits at $211.71, suggesting 17.4% upside potential.

Historical data shows LULU has recovered from previous 30% drops with median 12-month returns of 26%. But those rebounds came when the brand’s reputation was intact.

The company’s revenue growth remains positive at 8.8% over the last twelve months. Operating cash flow margin stands at 16.8%. These metrics show the business still functions. However, brand damage takes time to repair.

Long-time customers who built Lululemon into a powerhouse are questioning their loyalty. The quality issues combined with leadership uncertainty create a challenging environment for any recovery.

The next CEO inherits a company that needs to remember what made it special in the first place.

The post Lululemon (LULU) Stock: Defective Leggings and CEO Exit Send Shares Lower appeared first on Blockonomi.

TLDR

TechCreate Group (TCGL) exploded 889% Thursday to $86.36, then jumped 118% to $188.42 in Friday premarket

Company told NYSE American it knows of no undisclosed information explaining the massive price swing

The Singapore fintech provider went public at $4 in October 2025 and now trades near $188

Trading volume hit 5 million shares Thursday as market cap reached $1.8 billion

Stock’s RSI hit 99.16, showing extreme overbought conditions with 1,651% gain over 12 months

TechCreate Group shares went parabolic Thursday, gaining 889% before extending gains another 118% in Friday’s premarket. The stock closed regular trading at $86.36 and hit $188.42 before the opening bell.

Nobody seems to know why.

The Singapore-based payment software company issued a statement Thursday after NYSE American asked about the unusual activity. TechCreate said it’s “not aware of any material nonpublic information” that could explain the trading. The company doesn’t comment on speculation or price swings.

Thursday’s session saw TCGL rocket from $8.90 to a high of $136.32. Nearly 5 million shares changed hands as the stock became one of the market’s hottest names.

From $4 to $188 in Three Months

Context matters here. TechCreate priced its IPO at $4 per share in October 2025. That means Friday’s premarket price represents a 4,600% gain in just three months.

The company operates in payments, cybersecurity, and digital infrastructure. It provides software consulting and implementation services to enterprise clients.

Technical readings show extreme momentum. The Relative Strength Index reached 99.16, deep into overbought territory. The five-day gain alone hit 944%.

TechCreate’s 52-week range spans $3.95 to $136.32. Current pricing sits at about 62% of that range, above the midpoint of $70.14 but below Thursday’s peak. Market cap now hovers around $1.8 billion.

What Traders Are Watching

This looks like pure speculation at work. No news. No earnings. No major announcements. Just relentless buying pressure pushing shares higher.

Small-cap stocks can move violently when liquidity dries up. Premarket trading amplifies that effect since fewer participants create wider spreads. Each order carries more weight.

The opening auction will tell the real story. That’s when premarket positions meet actual market depth at 9:30 a.m. ET. Traders will see if buying continues or if early gains evaporate.

Exchange Response Looming

NYSE American may step in with additional requirements. U.S. markets have circuit breakers that halt trading during extreme moves. Whether those trigger depends on Friday’s regular session activity.

The company’s non-answer leaves more questions than clarity. Investors are flying blind, trading on momentum rather than fundamentals.

Over 12 months, TCGL has returned 1,651%. That performance makes it one of the year’s biggest gainers, though most of those gains came in the past week.

The danger is obvious: what goes up this fast can come down just as quickly. Without fundamental support, momentum stocks tend to reverse hard when sentiment shifts. Premarket gains could vanish at the opening bell if sell orders pile up.

The post TechCreate (TCGL) Stock: Singapore Fintech Explodes 889% Thursday appeared first on Blockonomi.

TLDR

Visa delivered Q1 fiscal 2026 earnings of $3.17 per share and $10.9 billion in revenue, topping Wall Street forecasts

Holiday shopping drove payment volume up 8% while cross-border transactions climbed 12% year-over-year

Stock declined 1.9% after results as investors focused on rising expense projections and decelerating cross-border growth

Company forecasts low double-digit revenue growth for Q2 and full fiscal year 2026

Visa trades down 5.4% in 2026 versus S&P 500’s 1.4% gain

Visa exceeded Wall Street expectations for its latest quarter. Investors sent shares lower anyway.

The payments giant earned $3.17 per share in its fiscal first quarter ending December 31. Analysts expected $3.14 per share.

Revenue reached $10.9 billion versus the $10.69 billion consensus estimate. Both metrics jumped 15% from last year’s quarter.

Strong holiday shopping fueled the results. Payment volumes increased 8% during the period.

Cross-border volumes rose 12%. Processed transactions climbed 9%.

CEO Ryan McInerney pointed to resilient consumer spending as the driver. Higher-income households led the charge during the holiday season.

Record shopping activity and surging online sales boosted transaction volumes. Lower and middle-income consumers faced tighter budgets.

President Trump’s tariffs pushed prices higher. This limited purchasing power for many households.

Guidance Concerns Pressure Stock

Shares dropped 1.9% Thursday despite the earnings win. The stock has fallen 5.4% so far in 2026.

That trails the S&P 500’s 1.4% year-to-date advance. Visa is down 3.3% over the past year.

Evercore ISI analysts blamed higher operating expense guidance for the selloff. They also noted softness in cross-border metrics.

Cross-border volume growth of 12% represents a deceleration from prior quarters. These figures track global trade and travel in real time.

Market watchers scrutinize these numbers following Trump’s tariff announcements. Visa’s CFO said tariffs haven’t meaningfully impacted results yet.

The company projects low double-digit net revenue growth for Q2 ending in March. Operating expenses should grow in the mid-teens.

Earnings per share growth is expected at the high end of low double digits. Full-year fiscal 2026 guidance calls for low double-digit growth across key metrics.

Stablecoin Push and Regulatory Headwinds

Visa is integrating stablecoins into its payment infrastructure. The company views digital tokens as a growth opportunity.

A December pilot program lets some U.S. banks settle transactions using Circle’s USDC stablecoin. Management called the initiative “additive” to existing business.

Political pressure is mounting on the payments industry. Trump called for capping credit card interest rates at 10% for one year.

The current average U.S. credit card rate sits at 19.65%. Some analysts believe the impact would be less severe than feared.

Visa and Mastercard agreed in November to cut merchant fees by 0.1 percentage points for five years. The settlement resolves a 2005 antitrust lawsuit.

Court approval is still pending. Visa declared a 67-cent quarterly dividend per class A share.

The payment goes to shareholders of record on February 10. Seaport Research Partners analysts noted Visa “tends to guide conservatively” and consistently outperforms projections.

Peer Mastercard also reported strong quarterly results Thursday. American Express reports earnings Friday morning.

The post Visa (V) Stock: Earnings Win Overshadowed by Expense Worries appeared first on Blockonomi.

TLDR

Apple posted $143.8 billion in Q1 revenue, up 16% year-over-year, with projections for 13-16% growth next quarter.

CEO Tim Cook says TSMC can’t produce enough 3-nanometer chips to meet iPhone demand, constraining sales.

Memory chip prices are rising due to AI data center demand, creating additional supply chain pressure.

Apple expects 48-49% gross margins in March quarter despite higher memory costs.

The company sourced 20 billion chips from U.S. manufacturers in 2025, beating its 19 billion target.

Apple delivered massive earnings Thursday. But the company left money on the table.

The iPhone maker reported $143.8 billion in quarterly revenue. That’s a 16% increase from last year. Apple forecasts another 13-16% growth for the current quarter.

The catch? Sales could be higher if Apple had enough chips.

CEO Tim Cook told analysts that customer demand exceeds production capacity. The problem isn’t interest in iPhones. It’s getting enough processors to build them.

“We expect our March quarter total company revenue to grow by 13% to 16% year over year, which comprehends our best estimates of constrained iPhone supply during the quarter,” CFO Kevan Parekh said. Translation: they’re selling every iPhone they can make.

TSMC Manufacturing Crunch Limits Output

Taiwan Semiconductor Manufacturing Co. makes Apple’s custom chips. The A-series processors in iPhones and M-series chips in Macs use TSMC’s 3-nanometer technology.

That’s where the bottleneck sits.

“The constraints that we have are driven by the availability of the advanced nodes that our SoCs are produced on,” Cook explained. He said Apple sees “less flexibility in supply chain than normal, partly because of our increased demand.”

TSMC dominates advanced chip manufacturing. But even the world’s biggest chipmaker has limits. Apple can’t get enough production slots to meet orders.

Cook said the company is working to increase supply access. But he wouldn’t say how long the shortage might last beyond March.

Memory Prices Rising Too

AI data centers are driving up memory chip prices. That’s creating another headache for Apple.

Rising memory costs had “minimal impact” on profit margins last quarter, Cook said. But he expects “a bit more of an impact” in the current quarter ending in March.

Apple isn’t sharing its specific plans. “As always, we’ll look at a range of options to deal with that,” Cook told analysts.

The company still expects healthy gross margins between 48% and 49% for the March quarter. That would actually be higher than the December quarter at the midpoint.

Domestic Chip Production Exceeds Goals

Apple committed to spend over $600 billion in the U.S. over five years. Much of that goes toward companies building chip factories in America.

The strategy is paying off. Cook revealed Apple sourced 20 billion chips from U.S. manufacturers in 2025. That beats the company’s 19 billion target.

TSMC is expanding U.S. operations after doing most manufacturing in Taiwan historically. Apple is one of the companies helping fund that expansion.

The chip shortage affects device makers worldwide. AI demand created competition for both advanced manufacturing capacity and memory components.

Analysts pressed Cook repeatedly about component access during the earnings call. The questions reflect industry-wide concerns about supply constraints.

Apple expects 48-49% gross margins in the March quarter despite rising memory chip prices.

The post Apple (AAPL) Stock: iPhone Production Hits Wall as TSMC Chip Supply Runs Short appeared first on Blockonomi.

TLDR

Micron EVP Manish Bhatia sold 26,623 shares for $10.4 million on January 22, with prices ranging from $388.41 to $395.90 per share.

SVP Michael Charles Ray sold 10,468 shares for $5.02 million on January 27 at prices between $401.16 and $415.65 per share.

Micron stock surged over 30% in January, reaching an all-time intraday high of $444.71 on January 30.

Strong semiconductor sector earnings and guidance from Texas Instruments, ASML, SK Hynix, and Seagate boosted Micron shares.

Analysts raised price targets to as high as $500, citing memory-chip shortages and AI-driven demand supporting higher prices.

Two Micron Technology executives sold millions in company stock this month. The shares kept climbing to record levels afterward.

Manish Bhatia, executive vice president of global operations, sold 26,623 shares on January 22. The transactions totaled $10.4 million at prices between $388.41 and $395.90 per share.

The sale included 14,640 restricted stock units that vested from 2024 to 2025. It also contained 11,983 performance units from Micron’s equity incentive plan.

Bhatia retains direct ownership of 323,486 shares. Those holdings were valued at approximately $141 million based on Wednesday’s closing price.

Michael Charles Ray, senior vice president and chief legal officer, followed with his own sale. He sold 10,468 shares on January 27 for $5.02 million through a pre-arranged trading plan.

Ray’s shares sold at prices ranging from $401.16 to $415.65. He now directly owns 74,675 shares of the company.

Stock Climbs to Record After Insider Sales

Micron shares gained over 30% since the start of January. The stock broke above $400 for the first time on January 23.

That milestone came just one day after Bhatia’s sales. The rally continued gaining momentum throughout the week.

The stock closed at a record $435.28 on Wednesday. It pushed to an all-time intraday high of $444.71 on Thursday.

Semiconductor Sector Strength Lifts Micron

Strong earnings reports from chip sector peers fueled the rally. Texas Instruments, ASML Holding, and SK Hynix delivered positive guidance on January 28.

The companies pointed to recovering AI-driven demand. This overshadowed weaker-than-expected results from Texas Instruments.

Seagate Technology reported solid earnings the same day. The storage-device maker’s results added to positive sector sentiment.

Micron manufactures memory and storage products for smartphones and computers. The company supplies high-bandwidth memory for AI servers, making it a key player in the AI infrastructure buildout.

Analyst Price Targets Rise

Multiple analysts increased their price targets for Micron recently. HSBC raised its target to $500, citing rapid DRAM price increases.

Mizuho set a $480 target based on favorable pricing in DRAM and NAND markets. TD Cowen lifted its target to $450 due to worsening memory market shortages.

Stifel increased its price target to $360. The firm noted AI cloud infrastructure growth is absorbing DRAM output and creating shortages.

Micron’s December earnings report highlighted strong market conditions. The company expects a substantial memory-chip shortage to persist for the foreseeable future.

This shortage could support higher prices and stronger profit margins. Micron ended 2025 as one of the top S&P 500 performers alongside Western Digital and Seagate.

The company plans to announce new memory chip manufacturing capacity in Singapore. The investment will focus on NAND flash memory production.

The post Micron (MU) Stock: Executives Sell $15 Million as Shares Reach All-Time High appeared first on Blockonomi.