The following is a guest post and opinion of Jeff Garzik, Co-founder of Hemi Labs.

Ever since Bitcoin stopped being the one and only crypto, a group of its stalwart devotees emerged called “Bitcoin maximalists,” arguing that BTC is the only “true” digital asset. As the crypto industry moves toward all-pervading decentralized finance (DeFi) interoperability, however, this mindset is rapidly becoming not only irrelevant but even harmful to the sector.

Bitcoin maximalism really took shape in the early days of crypto, back when Bitcoin was the only truly decentralized and trustless store of value, with a proven protocol and a clear focus on sound money principles. When other cryptocurrencies, or altcoins, started popping up later on, they were mostly seen as risky speculative bets or even scams — something that couldn’t match Bitcoin’s security, its strong network effects, or the ideological purity it represented.

Back then, most maximalists would insist that BTC was the only legitimate crypto out there, viewing all other digital currencies as distractions or, even worse, a betrayal of Satoshi’s original vision. With infrastructure and interoperability still in their infancy, this mindset made sense — after all, Bitcoin was the only player in town, and its dominance seemed pretty much unchallenged.

From Isolation to Collaboration

Fast forward to 2025, and the world of crypto looks completely different from those early days. The explosive growth and innovation in DeFi and cross-chain tech have shifted the focus from isolated ecosystems to interconnected ones. Now, the crypto space is all about enabling smooth interactions between different blockchains, making the environment much more interconnected and versatile.

Today, a number of innovative projects are pushing this trend even further by integrating Bitcoin directly into the DeFi space — and not just as tokenized versions like wrapped BTC, but as a true, native part of this interconnected world. This marks a huge shift from the old ways and clashes with the maximalist view, which still argues that Bitcoin’s isolation is actually a good thing.

At its core, Bitcoin maximalism has a flaw — it refuses to adapt or keep up with the changing crypto environment. It still sees Bitcoin as a closed ecosystem, ignoring the breakthroughs happening all around in the wider crypto industry. But that mindset overlooks a key point — most modern crypto users aren’t driven by ideology; they want convenience and easy access to a variety of services rather than isolated platforms or insular systems.

Unique Opportunities Emerge

Decentralized finance, or DeFi, has already opened up amazing new opportunities — things like yield farming, lending, and decentralized exchanges — that make capital more efficient and put increased power in the hands of users.

So, it’s only natural that Bitcoin, with its top-tier security and liquidity, should be right at the center of this finance revolution, not pushed to the sidelines. Bringing Bitcoin directly into DeFi doesn’t dilute its value — in fact, it boosts it by making BTC the backbone of this new financial age.

The numbers back this up, contradicting the arguments of maximalists. For instance, by 2025, the total value locked in DeFi surpassed $120 billion, with stablecoins adding another $250 billion in market cap, and cross-chain bridges processing billions in daily transactions.

Meanwhile, solutions like wrapped BTC are often clunky and centralized, creating counterparty risks that go against Bitcoin’s core principles. If these workarounds are phased out and Bitcoin can move freely across many different blockchains, it could become even more valuable through interoperability.

Brand New Crypto World

As this trend accelerates, maximalist ideas will seem outdated. The future of crypto isn’t about blockchains fighting each other but rather working together — each playing to their strengths, creating a system that’s more powerful than any individual chain. Bitcoin will still be a premier store of value, but its usefulness will grow immensely through support of smart contracts, liquidity pools, and cross-chain tech. Maximalists who dismiss this as heresy risk getting left behind, like dinosaurs staring at a meteor streaking across the sky.

The problem is, their unwavering zeal might actually hold Bitcoin back, trying to keep it out of the modern, interconnected crypto ecosystem. This attitude also pushes away users and developers who see crypto as a unified, interconnected network that needs to function smoothly and serve real-world needs.

While Bitcoin maximalism isn’t completely dead yet, it’s definitely on its way out. As interoperability becomes the industry standard, the idea of Bitcoin as a standalone, isolated giant will fade away. The DeFi boom is already here, and rather than destroying Bitcoin, it’s launching it into a new era. The big question now is whether maximalists will adapt or become relics of a bygone era.

The gambling mentality is becoming the dominant mindset among crypto traders amid a surge in memecoin discussions, according to analytics firm Santiment.

In a new report, Santiment says that memecoin mindshare is making a comeback despite the recent high-profile collapses of several assets in the sector.

Santiment says that the rise in memecoin-centered discussions on social media suggests an increase in speculation and short-term investing mentality.

“Memecoins, in particular, are once again gaining considerable attention. Online discussions about these high-risk tokens have proliferated as traders embrace a ‘gamble’ mindset, rather than a calculated investment approach.

Notice how social volume has been creeping up for top market cap meme coins, and declining for layer-1s and layer-2s. This is a telltale sign that traders are increasingly investing based solely on speculation and short-term gains.”

Santiment says that currently, the rise in online discussions about altcoins, altseasons and bull markets suggests that the crypto market will likely witness a correction.

“Historically, the best times to invest in altcoins have been when crowd interest is between low and practically nonexistent. But at this current stage, with buzzwords like ‘altcoin,’ ‘altseason’ and ‘bull cycle’ trending, caution is advised, with retailers looking for any opportunity to buy minor dips. Markets move opposite to crowd expectations, so when the crowd’s excitement peaks, it often signals that prices are nearing exhaustion.”

Read the full Santiment report here.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: Midjourney

Online discussions about memecoins have hit a year-to-date high, gaining considerable attention after sentiment cooled earlier in the year, according to onchain analytics platform Santiment. 

Two weeks ago, discussions around Bitcoin (BTC) and layer-1 protocols peaked during the market volatility brought on by the Trump administration’s sweeping tariffs. However, that’s since shifted to high market cap memecoins, Santiment marketing director Brian Quinlivan said in a May 1 blog post.

“Online discussions about these high-risk tokens have proliferated as traders embrace a gamble mindset, rather than a calculated investment approach,” he said.

“This is a telltale sign that traders are increasingly investing based solely on speculation and short-term gains,” Quinlivan added.

Quinlivan said the overall crypto market rose 10% in the past eight days, but Bitcoin only gained 7%, which indicates traders are flocking to more speculative assets.

“Any time Bitcoin leads an initial rally and then begins to move sideways, investors generally start taking bigger risks in hopes of scoring even higher returns through more speculative and riskier purchases,” he said.

Dogecoin discussions spike on ETF news

In particular, Dogecoin (DOGE) has seen a notable spike in positive crowd sentiment after a major decline in crowd interest during April, as various applications for DOGE exchange-traded funds were filed in the US.

Despite the Securities and Exchange Commission delaying its decision on these filings until mid-June, Quinlivan says traders are in a state of cautious anticipation.

“Until late April, DOGE had been on a major decline in terms of crowd interest. But its social dominance has spiked to its highest level in nearly three months, as the conversations and filings surrounding Nasdaq’s ETF listings have risen,” he said.

DefiLlama data shows PumpSwap, the decentralized exchange of the memecoin launch platform Pump.Fun saw a spike to $11 billion in monthly trading volume during April after recording only $1.7 billion in March.

Related: Crypto token failures soar, with 1 in 4 launched since 2021 dying in Q1: CoinGecko

Meanwhile, Pump.Fun’s monthly trading volume rose to $3.3 billion in April, up from $2.5 billion in March.

Memecoin activity exploded after the launch of US President Donald Trump’s memecoin on Jan. 18, with Pump.fun usage recording a high of $3.3 billion in weekly trading volume.

However, traders soon cooled on memecoins. CoinGecko founder Bobby Ong said in a March 6 report that memecoin investor interest dropped after a series of bad launches, noting the fallout from the Libra (LIBRA) token launch in February as a significant catalyst. 

Magazine: Mystery celeb memecoin scam factory, HK firm dumps Bitcoin: Asia Express

]]> https://earlybirdsinvest.com/crypto-in-gamble-mindset-as-memecoin-mentions-hit-ytd-high-santiment/feed/ 0 33932 https://earlybirdsinvest.com/huge-shift-in-crypto-firms-compliance-mindset-says-elliptic-co-founder/ https://earlybirdsinvest.com/huge-shift-in-crypto-firms-compliance-mindset-says-elliptic-co-founder/#respond Wed, 30 Apr 2025 23:04:58 +0000 https://earlybirdsinvest.com/huge-shift-in-crypto-firms-compliance-mindset-says-elliptic-co-founder/

The crypto industry has seen a significant shift toward regulatory compliance since its early days, according to James Smith, co-founder of Elliptic, a crypto compliance firm established in 2013.

“In the early days, only a few companies approached compliance in a serious way,” Smith told Cointelegraph at the Token2049 event. “Coinbase was our first customer — they knew from the start that they wanted to build their business that way. But for most others, it just wasn’t a major priority.”

That began to shift as regulators, including those in New York State, took a more active interest in the crypto industry. The involvement of traditional financial institutions like Fidelity and DBS Bank also contributed, as they entered the space with established compliance expectations from traditional finance services.

Fidelity, for instance, offered its first crypto service for customers in 2019, while the Asian giant DBS created a digital exchange for accredited and institutional investors in 2020.

“We’ve seen a big change in the last couple of years. Exchanges on the global map all care about compliance now, because they want to be part of a global ecosystem,” Smith said.

Related: DeFi security and compliance must be improved to attract institutions

Compliance questions after Bybit hack

Crypto exchanges and peer-to-peer protocols remain the industry’s key compliance targets. For authorities, these firms are seen as critical choke points where Anti-Money Laundering and broader financial surveillance controls take effect. At the same time, they’re frequent candidates for sophisticated hacks and laundering operations, as seen in the Lazarus Group’s tactics.

The latest example comes from the Bybit hack, where the Lazarus Group engaged in a sophisticated money laundering scheme to funnel funds. The hackers quickly swapped low-liquidity tokens for Ether (ETH), then swapped them for Bitcoin (BTC) using no-KYC (Know Your Customer) decentralized exchanges.

“They went through some no KYC exchanges, which probably shouldn’t exist, but also through a decentralized protocol where there was lots of liquidity provision that enabled them to get it into Bitcoin,” Smith said, adding that “we’re making it too easy for them as an industry.”

Smith also noted that even after firms flagged the funds as stolen, users continued to trade them through decentralized platforms. “Why was there so much liquidity available to help launder this money?” he said, arguing that those providing liquidity to such protocols should be subject to basic checks on the source and destination of funds. “Go and look at who’s making money. And that’s the first place to start putting some controls.”

Magazine: Lazarus Group’s favorite exploit revealed — Crypto hacks analysis

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