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Dragonfly Partner: Crypto VC Could Become History by 2030
On July 21, 2026, Dragonfly managing partner Haseeb Qureshi said in an interview that Crypto VC may be entering its “final investment cycle.” He believes that while Bitcoin, Ethereum, and stablecoins will continue to grow, the rise of major platforms will leave less room for new crypto companies to emerge.
Qureshi noted that relying on single financial products or distributing through other platforms is unlikely to create long-term business value, and the crypto industry may become increasingly centralized in the future.

The stablecoin market lost USD 7.7 billion in June, its largest monthly decline since the Terra-Luna collapse in May 2022, bringing total capitalization down roughly USD 10 billion from its May peak to about USD 300 billion. Yet adjusted transaction volume reached a record USD 1.79 trillion, rising 63% from May and 125% from a year earlier, suggesting usage for transfers and settlement remained strong even as circulating supply contracted.

South Korea halted trading in KOSPI-listed shares for 20 minutes on July 28 after the benchmark index fell more than 8%, marking its eighth circuit-breaker activation of 2026. SK Hynix’s U.S.-listed ADR, traded under the ticker SKHY, fell below USD 140 and was last quoted at USD 139.45, down 11.89% over the past 24 hours. SK Hynix is one of the world’s largest memory-chip manufacturers and a leading supplier of high-bandwidth memory used in AI processors.

Reuters reported that a U.S. federal judge has blocked Minnesota from enforcing a new law that would have become the first state law in the country to directly ban prediction markets such as Kalshi and Polymarket. U.S. District Judge Katherine Menendez issued a preliminary injunction, finding that federal law likely preempts the state measure. The ruling followed a lawsuit filed by Kalshi, Polymarket, and the CFTC after Minnesota Governor Tim Walz signed the law in May, which would have made operating, hosting, or promoting prediction markets in the state a crime.

According to CoinDesk, Lido has begun migrating more than 8 million ETH to its Curated Module v2 architecture, consolidating smaller validators into Ethereum’s post-Pectra large-validator design. Lido estimates the move could reduce Ethereum’s total validator count by about one-third and cut attestation messages by roughly 29% per epoch. All 34 curated node operators will also be required to post ETH bonds for the first time.

According to The Block, Kraken parent Payward acquired Magic Labs’ embedded wallet business through an asset purchase. The business will move to Payward Services, while Magic Labs will become Newton Labs and focus on Newton Protocol. Magic previously raised more than $80 million, including a $52 million round led by PayPal Ventures in 2023. Financial terms were not disclosed.

According to Bloomberg, more than a dozen digital asset treasury companies have recently announced pivots into AI data centers and other businesses as the crypto downturn weakens investor interest in the DAT model. The moves have so far failed to reverse share-price declines: K Wave Media has fallen about 71% since its data-center pivot in May, while Lixte Biotechnology and the newly renamed Alpha Compute are each down roughly 33%. Firms are also exploring areas including space technology and small modular nuclear reactors.

Circle acquired more than 680 patent families comprising nearly 1,000 issued patents from IBM, covering blockchain infrastructure, banking, payments, insurance, supply chains and secure cloud operations. The company said the deal makes it the largest U.S. holder of blockchain patents and will support products including USDC, Circle Payments Network, Arc and agentic finance tools. Financial terms were not disclosed.

BitMine said it acquired 9,946 ETH over the past week, bringing total holdings to 5,787,414 ETH, or about 4.8% of the circulating supply. The company has staked 4,917,189 ETH, representing roughly 85% of its holdings, and repurchased 6.1 million shares during the week. Its total crypto, cash, marketable securities and other investments reached $11.8 billion.

Strategy said it sold 5.43 million MSTR shares for $544.5 million in net proceeds between July 20 and July 26, while repurchasing 288,930 STRC preferred shares for $25 million. The company made no bitcoin purchases during the week and continues to hold 843,775 BTC, acquired for $63.69 billion at an average price of $75,476. Its U.S. dollar reserve increased to $3.75 billion.

Zcash is expected to activate its Ironwood network upgrade at block height 3,428,143 on July 28. The upgrade introduces a new shielded pool with quantum-recoverable notes and a turnstile mechanism designed to strengthen verification of the ZEC supply following concerns over a potential counterfeiting vulnerability in the legacy Orchard pool.

According to Reuters, the yen recently fell to around its weakest level in four decades. Prime Minister Sanae Takaichi said stronger economic growth could help restore confidence in the currency. The Bank of Japan is expected to keep rates at 1% at its July 31 meeting but may signal further tightening as yen weakness and inflation pressures persist. A Reuters poll found 86% of economists expect the BOJ to raise rates to 1.25% by year-end.

From July 20 to 24 (ET), spot Ethereum ETFs recorded $104 million in net inflows, marking a third consecutive week of inflows. Spot Bitcoin ETFs saw $3,379 in net inflows, also extending their streak to three weeks. Spot SOL and XRP ETFs posted net inflows of $7.2 million and $8.15 million, respectively, while spot HYPE ETFs recorded $8.61 million in net outflows.

WEMIX, the blockchain ecosystem backed by South Korean listed gaming company Wemade, confirmed a security incident involving its smart contract.
The company said an attacker obtained owner privileges on July 26, enabling approximately $6.25 million worth of WEMIX tokens to be abnormally minted and transferred. WEMIX has identified the related addresses and is working with exchanges and blockchain security firms to trace the funds, with potential law enforcement involvement if necessary.

Storj Labs, the company behind decentralized cloud storage network Storj, has voluntarily filed for Chapter 11 bankruptcy protection to address legacy debt while continuing operations.
The company said customer services will remain uninterrupted during the restructuring. Management, the community, STORJ token holders and investors are expected to jointly own the reorganized company.
Storj Labs previously raised about $5 million in traditional funding and grants, alongside roughly $30 million through its 2017 STORJ token sale.

After BitMEX and BitMart announced plans to wind down their exchange operations, Binance founder Changpeng Zhao said acquiring smaller centralized exchanges is more complicated than buying other businesses. He cited the risk that a hack could occur after an acquisition because of legacy backdoors or security flaws left by the previous team, adding that such deals remain possible but require greater caution. BitMEX is scheduled to close on September 23, while BitMart said users would be allowed to withdraw assets during an orderly wind-down.

Japan Elevates On-Chain Finance to National Policy and Targets Bitcoin ETFs by 2028, South Korea Moves to Expand Institutional Crypto Access as Exchange Volumes Plunge, Russia’s Sberbank Builds Regulated Crypto Trading Infrastructure, and the Philippines and Vietnam Advance Stablecoin and Crypto-Market Frameworks. For the complete article and weekly curated reports, subscribe to our Substack:

1. Japan Includes “Advancement of On-Chain Finance” in 2026 Basic Policy on Economic and Fiscal Management link
On July 21, the Japanese government approved the Basic Policy on Economic and Fiscal Management and Reform 2026, formally incorporating “advancing on-chain finance” into national economic and fiscal policy documents. It defines the concept as settling funds on blockchains via tokenized deposits, stablecoins and other instruments, integrated programmatically with data management covering trade and logistics. The technology is expected to be applied to scenarios including manufacturing orders, trade documentation and securities settlement.
2. Japan Targets Bitcoin ETF Launch in 2028; Retail Capital Expected to Be Primary Inflow Source link
Japan expects to launch Bitcoin ETFs as early as 2028. Following revisions to the Financial Instruments and Exchange Act that bring crypto assets under financial product regulation, the Financial Services Agency of Japan plans to amend rules governing investment trusts to allow funds and ETFs to hold crypto assets as primary investments, with multiple asset managers considering participation. Interest in crypto assets among Japanese institutional investors is rising. A survey by Nomura Holdings and Laser Digital found roughly 79% of institutional investors and family offices plan to allocate capital to crypto assets within the next three years. Unlike US Bitcoin ETFs driven largely by institutional capital, Japan has a smaller institutional investor base, and cash accounts for a substantial share of household financial assets, meaning retail investor funds may serve as the primary capital source. Some analysts project Japan’s Bitcoin ETFs could attract inflows of up to 3 trillion yen by fiscal 2028.
3. Daily Trading Volume on Korea’s Five Major Crypto Exchanges Plunges 89% YoY, While KOSPI Rises 114.44% link
Average daily trading volume across South Korea’s five major crypto exchanges, Upbit, Bithumb, Coinone, Korbit and Gopax, has fallen to $305 million from $2.82 billion recorded in the same period of July 2025, representing an approximately 89% year-on-year decline. Over the same timeframe, the Korea Composite Stock Price Index (KOSPI) rose 114.44%. ZDNet Korea reported that Monday’s trading volume on the five exchanges dropped 88% year-on-year. Some platforms have liquidated crypto assets amid falling fee income. Korbit sold 15 BTC and 60 ETH, raising roughly 1.6 billion South Korean won (approximately $1 million).
4. South Korea FSC to Accelerate Stablecoin Legislation and Actively Ease Institutional Access to Crypto Markets link
South Korea’s Financial Commission stated it will advance the Digital Assets Basic Act covering stablecoin regulation as soon as possible, aiming to complete legislation within the year, and actively evaluate opening the crypto asset market to corporations and financial institutions. Regulators are also exploring allowing institutions to trade via dedicated brokers and over-the-counter platforms, alongside lowering entry barriers for banks, securities firms and trust companies engaging in custody, intermediary services and security token businesses. If these measures take effect, restrictions imposed since 2017 on financial institutions participating in the crypto market in South Korea are expected to be eased.
5. Sberbank, Russia’s Largest Lender, to Build Crypto Trading Infrastructure for Custody & Settlement link
Sberbank, Russia’s largest bank, plans to build cryptocurrency trading infrastructure and launch a digital custody system by December 1 to support regulated crypto asset trading, custody and settlement. The digital custody system will record client ownership of crypto assets and process most off-chain transactions, while Sberbank will manage custodial wallets for client deposits, withdrawals and transfers. The initiative follows Russia’s recently adopted cryptocurrency regulation bill, whose framework takes effect on September 1. The rule mandating trades through licensed intermediaries is expected to be enforced in July 2027. Under regulatory requirements, public trading is limited to crypto assets meeting liquidity criteria set by the Central Bank of Russia. Qualified investors gain access to a broader range of assets, yet cryptocurrency payments for goods and services within Russia remain prohibited.
6. Pakistan FIA Establishes Dedicated Crypto Unit Focused on Money Laundering & Terror Financing link
Pakistan’s Federal Investigation Agency (FIA) has established a cryptocurrency investigation unit within the newly operational National Command and Control Centre (NC3) to probe the potential use of virtual assets in money laundering, terrorist financing and other criminal activities. Muhammad Athar Waheed, head of the FIA Counter-Terrorism Division, stated that the newly formed Pakistan Virtual Assets Regulatory Authority (PVARA) oversees regulation of the digital asset sector, while the new FIA unit focuses on criminal investigations and enforcement. The NC3 also houses a dedicated anti-money laundering (AML) division and integrates functions including cross-agency intelligence coordination, cyber patrols, dark web investigations and Interpol cooperation.
7. Bank of the Philippine Islands to Pilot Stablecoin Cross-Border Settlement link
Bank of the Philippine Islands (BPI) has partnered with digital clearinghouse Meridian to pilot a stablecoin-powered cross-border settlement system designed to cut overseas remittance costs and accelerate fund arrival. Stablecoins will act as settlement instruments, after which funds are converted into Philippine pesos and deposited into recipient accounts.
The pilot will initially cater to freelancers, virtual assistants, overseas Filipino workers and exporters, with plans to expand coverage to all BPI clients later. BPI stated the project will advance under the existing regulatory framework and maintain coordination with the Bangko Sentral ng Pilipinas.
8. Vietnam Establishes Administrative Penalty Framework for Upcoming Regulated Crypto Market link
The Vietnamese government issued Decree №284/2026/NĐ-CP on July 16, establishing an administrative penalty framework for the upcoming regulated crypto market. Under the new rules, investors trading crypto assets via unlicensed platforms face fines of up to 50 million Vietnamese dong (approximately $1,900). Unauthorized issuance of crypto assets and serious violations of anti-money laundering rules carry maximum fines of 200 million Vietnamese dong (roughly $7,700). The decree also empowers regulators to suspend relevant operations, revoke licenses and seize related assets, and will officially take effect on September 1, 2026. Vietnam opened applications for domestic crypto exchange licenses this January. Nguyen Duc Chi, Deputy Minister of Finance, previously stated that the first batch of regulated crypto services is expected to launch in the third quarter.
9. Hunan Man Penalized for Lending Family Payment Accounts to Facilitate USDT Trading link
A man from Tongdao County, Hunan, resold virtual currency for profit and lent WeChat payment codes, Alipay accounts and bank cards verified under his relatives’ real names to others for receiving and transferring funds. Police determined his conduct constituted illegal renting and lending of payment accounts and imposed administrative penalties in accordance with the Anti-Telecom and Online Fraud Law.
10. Shenzhen Authorities Shut Down Multiple Self-Media Accounts Promoting Virtual Currency Activities link
The Shenzhen Branch of the People’s Bank of China, the Shenzhen Securities Regulatory Bureau, the Municipal Cyberspace Affairs Office and the Municipal Local Financial Administration Bureau have continued to carry out in-depth special rectification and disposed of a number of illegal and irregular self-media accounts in accordance with laws and agreements. Among them, accounts that illegally released information hyping virtual currencies include “USDT Merchant Exchange Group”, “Group Up to Trade Virtual Currency”, “Search Bitcoin”, “Weizhi Quick Exchange”, “Zhonglian Laojiu”, “Yaosui Gehaojiao”, “Little Goldfish 9884”, “User 0767527971” and others. These accounts illegally provided marketing and promotional information related to virtual currency businesses within China, inducing the public to participate in illegal financial activities involving virtual currencies. In accordance with policy provisions including the Circular on Further Preventing and Resolving Risks Related to Virtual Currencies, the above-mentioned accounts have been permanently shut down by platforms in accordance with laws and user agreements.
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Binance Chief Security Officer Jimmy Su said the exchange's internal Red Team conducts simulated phishing attacks against employees every month to assess security awareness. Scenarios include fake recruitment outreach, free conference invitations and attempts to collect personal information. Employees who fail must undergo remedial training, while repeated serious failures can hurt performance ratings and potentially result in dismissal. Binance has run the program for roughly three to four years.

Cybersecurity firm JUMPSEC said North Korea-linked hacking group BlueNoroff is targeting crypto professionals through fake Zoom and Microsoft Teams meetings. Attackers use hijacked Telegram accounts to send malicious links, scan browser wallets, and trick victims into installing a fake “SDK update.” The malware affects Windows and macOS and can steal system data, browser keys, and Telegram sessions.