• Market Analyst || • Crypto and Global Economic News Provide || •Sharing My Personal Opinion and Not Financial Advice || Let's Learn and Grow Up Together 🤜🤛
🚨BABYLON IS NOT A SURE SOLUTION FOR A BEAR MARKET.
I feel like we’re getting closer to a bear market phase. Many traders get liquidated. Bitcoin is really hard to get back to 70,000.
"Just relax, right? There’s Babylon, though."
I don’t think so either.
Let me tell you… Trustless Bitcoin Vault (TBV) is basically the idea that: "You don’t need to take your BTC out of Bitcoin, but you can use it to secure other chains." The way it works uses a script + timelock on Bitcoin + fraud proofs. It’s like you lock BTC in a safe, and the key is split into 2: 1 with you, 1 with the validator.
Sounds cool, right? But when you actually try it, it’s kind of funny.
To slash the thief, you have to wait 7–14 days for unbonding. So by the time you slash, the thief is already gone to Bali, selling tokens, partying, and only then does Bitcoin say: "Oh, he’s the bad guy."
Bitcoin fees are expensive? One slash can be $30–$50. Imagine if there are 200 malicious validators doing it at the same time. The protocol wallet would basically start crying. Third, because BTC is locked and not liquid, 90% of people end up putting it into LSTs like lbBTC.
In the end, the "decentralized vault" is controlled by 3 protocols. Fort Knox, but the keys are held by the parking attendant.
Bitcoin Vault is the most "Bitcoin-like" in terms of ideology. The security is the hardest to hack because there’s no bridge. But the UX is bad—slow, expensive—and it ends up re-centralized again through LSTs.
It’s suitable for securing something really important like a bridge or stablecoin. Not suitable for 1,000 cheap apps that need speed like me.
Yesterday I almost sold all my Bitcoin because the price dumped to 60,000.
Luckily it didn’t happen. Because I heard about Babylon: "You can stake your BTC, get yield, but the BTC stays in Bitcoin. Trustless, bro."
Sounds sweet. But there’s one problem: if you stake directly, my BTC gets locked for 14 days. Not liquid. Even though I projected this BTC for the next bull run in 2028.
Then the 3 "Giant Vaults" showed up: *Lombard, pSTAKE, Solv. They said: "Deposit your BTC with us. We’ll give you lbBTC. You can sell whenever you want. You can also use it for DeFi."
I thought: "Not bad, it’s not locked either."
In the end, I tried depositing 0.01 BTC.
What I thought about was this... a year later, 70% of all the BTC staked on Babylon turns out to be only in those 3 vaults.
A new PoS chain, let’s call it "NovaChain" needs security. The validators are few, and it’s expensive to buy Nova tokens.
Then Validator A gets smart. He borrows lbBTC from Lombard, stakes it to Nova. Now he has huge voting power using "leased BTC".
If Nova gets attacked? He can just dump the lbBTC onto the market before the 14-day unbonding period finishes. The loss is borne by the lbBTC holders... aka me! pret.
This is a loophole in Babylon that a lot of people don’t see.
The original goal of Bitcoin is "don’t trust third parties."
But now those 3 vaults have become a new version of a bank. If one of them gets hacked, gets regulated, or colludes, half of Bitcoin’s security on Babylon can fall apart.
I only realized it when I saw the news: "Lombard sanctioned. lbBTC depegs by 15%."
My BTC is still in Bitcoin... but its value crashes because everyone panics and sells lbBTC.
Babylon provides a way to stake BTC without a bridge. But humans are still humans. For "liquidity," weฝาก it with intermediaries. And those intermediaries gradually become a new single point of failure.
"Trustless" on paper. "Re-centralized" in reality.
🚨President Donald Trump was reported pressuring the Federal Reserve to cut interest rates, arguing the U.S. “should have the lowest rates in the world.” Speaking to reporters on Air Force One, he pointed to other countries with lower rates and pushed for the Fed to follow suit. He also commented on Fed Chair candidate Kevin Warsh, calling him “an outstanding guy” but claiming the Fed board is “very political” and suggesting he knows what Warsh wants to do.
The timing is hard to ignore. Trump made these comments just two days before the FOMC was set to announce its next rate decision, where markets overwhelmingly expect rates to stay unchanged, as they have all year.
Publicly demanding rate cuts and calling out individual board members undermines the Fed’s independence and turns monetary policy into political theater. It pressures the central bank to chase headlines instead of data, and risks eroding credibility right when markets need the Fed to stay consistent, not reactive to political talking points.
ETF Bitcoin Spot in Indonesia must experience net outflows for two consecutive days on Friday, and that broke the seven-day inflow streak beforehand. Based on Farside Investors data, these funds released $240 million on Friday, after withdrawing $225 million the day before. The total $465 million outflow nearly erased almost half of the $1 billion inflow that came in during the previous week. The peak itself was on July 20 with inflows of $227 million, before demand began to slow.
BlackRock IBIT is the main culprit behind this reversal, contributing nearly $415 million of the total two-day outflows. Even so, on a weekly basis, Spot Bitcoin ETFs still closed in the green, up about $34 million. That’s because the two-day outflows only held back part of the three prior strong inflow sessions. #USStorageStocksExtendLosses
Michael Saylor argues that for Bitcoin to reach its full potential, it must integrate with banks, corporations, exchanges, governments, and traditional financial markets. Rejecting that integration would limit Bitcoin to just 1% of its possible impact, denying its benefits to 99% of the world. In short, he’s pushing for institutional adoption over keeping Bitcoin isolated.
Kamala Harris says she’s “thinking about it” and hasn’t ruled out running for president again in 2028. After her 2024 campaign, she’s told crowds “I am not done” and has been showing up in early primary states while the DNC sets South Carolina to go first.
On crypto: Harris isn’t anti-crypto, but she’s not full pro-crypto either. In 2024 she called for “consistent and transparent rules of the road” and said Democrats should protect the millions of Americans who own digital assets.
She was rated “B” by Stand With Crypto. more open than Biden, but with a focus on regulation and consumer protection instead of deregulation or a Bitcoin strategic reserve.
If she runs in 2028, what do you expect for crypto market #BinanceSquareFamily ??? $XRP $BTC $ETH