
Good morning and welcome to the Hodl Report
Welcome to the hangover party nobody wanted β but everyone got invited. This weekβs The Hodl Report opens with βπ€ The Hopium Hangover,β a brutal readβout on just how far the crypto crowd overshot on wishful thinking β and how the market is now forcing them to swallow reality. Then in βBillionβDollar Scheme Turns Blame Game as Crypto Hype Collapses,β we peel back the scaffolding on a major crypto collapse, complete with blameβshifting, broken promises and the sobering cleanup nobody signed up for. Grab a seat β the showβs about to get messy, and weβre watching it all play out in real time.
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Editors Corner
π€ The Hopium Hangover
You know that feeling the morning after a night out, when your head is pounding, your stomach is questionable, and youβre pretty sure you made at least three bad decisions youβll deny forever?
Welcome to the crypto market today.
Weβre all dealing with a hopium hangover.
For months, the narrative was immaculate.
ETFs will send us to Valhalla.
Institutions will buy every dip.
AI tokens will usher in a new golden age.
This cycle is going to be different β definitely different β trust me bro.
And then reality kicked down the door.
Prices rolled over.
Sentiment imploded.
The βinstitutions are hereβ crowd suddenly got real quiet.
And now half the market is lying on the floor, staring at their portfolio like, βWow. I really believed all that, didnβt I?β
Hopium feels amazing on the way up.
Itβs warm, energetic, full of promise.
It makes you believe youβre early, chosen, blessed by Satoshi himself.
But when the market turnsβ¦
Hopium disappears faster than liquidity in a weekend dump.
And whatβs left behind is the hangover:
confusion, denial, regret, and a vague sense of betrayal that the charts did not honor your manifesting.
Hereβs the brutal truth:
Thereβs nothing wrong with optimism β the market literally requires it.
But unchecked hopium?
Thatβs how people turn into forced sellers at the worst possible moment.
The hangover hurts, but itβs necessary.
It sobers you up.
It strips away the fantasies and forces you to see the market for what it is, not what you wanted it to be.
And ironically, that clarity usually appears right when the best opportunities start forming.
The hopium high is where you lose discipline.
The hopium hangover is where you rebuild it.
So yeah β this week feels rough.
But the good news is simple:
Once the hopium wears off, youβre no longer trading on feelings.
You're trading on reality.
And reality, as ugly as it feels right now, is always where bull markets are born.
Drink some water.
Take some painkillers.
Let the hopium flush out.
Because once the hangover clears, the market looks very different β and usually, much more interesting.
Crypto Trivia: The Ronin Bridge Raid
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Todayβs Report
Billion-Dollar Scheme Turns Blame Game as Crypto Hype Collapses

π¨ Our Report
In a courtroom twist worthy of a cryptoβsoap opera, one of the main promoters of HyperVerseβthe flamboyant βRodney Burtonβ (a.k.a. βBitcoin Rodneyβ)βis now arguing he was the real victim. In newly filed court documents, Burton claims he was duped by Sam Lee and others, saying the whole thing was an βelaborate deception.β Thatβs a bold pivot: Burton, once flogging the scheme to thousands, now says he believed it was legit. Meanwhile, Lee β facing criminal and civil charges β insists the claims are βbaseless,β saying his involvement was limited to technology services and painting Burton as a casualty of aggressive regulation.
π Key Points
Burton, arrested in early 2024 for promoting HyperVerse, now insists he was misled by a sophisticated ruse orchestrated by Leeβs side.
He argues he did extensive due diligence, even touring offices in Dubai and Hong Kong β offices he now claims were part of a deception.
The motion for his release argues he acted in βgood faithβ and suggests political context may tilt in favor of crypto-friendly regulation under the current US administration.
Leeβs defense: he claims only to have provided tech, denies wrongdoing, and says Burtonβs allegations are a stretch.
The broader backdrop: HyperVerse (also known as HyperFund, HyperCapital, HyperNation) is accused of being a global Ponzi/Pyramid scheme that allegedly defrauded investors out of roughly $1.9β―billion.
π Relevance
This isnβt just a dramatic turn for a fallen promoter β it's a test case for how courts and regulators treat crypto-era fraud. Burtonβs claims, if they gain traction, could muddy the line between promoter culpability and victimhood, potentially influencing how promoters are prosecuted or defended in future crypto scandals. Traders and would-be promoters should take note: your due diligence tour images and fancy offices might not shield you from accusing fingers if the house of cards collapses. For investors, it underscores the deeply social β and theatrical β nature of many βtoo good to be trueβ crypto schemes. Even now, as regulators spin up fraud prosecutions, the narrative remains: in crypto, reality often looks like marketing.
Todayβs Top News
HEADLINES
HyperVerse Ponzi Fallout: βBitcoin Rodneyβ vs. Sam Lee β A U.S.βcourt case revealed that βBitcoin Rodney,β a promoter of HyperVerse (part of the wider HyperTech network), claims he was duped by alleged mastermind Sam Lee into backing a $3β―billion Ponziβstyle scheme. The trial documents describe elaborate deception β including staged offices and fake leadership β designed to lure investors. The case has revived scrutiny of aggressive cryptoβmarketing and legal responsibility of promoters
CFTC Greenlights Bitcoin & Ether as Derivatives Collateral β The CFTC has launched a pilot program allowing BTC, ETH and USDC to be used as collateral in U.S. derivatives markets. This opens the door for regulated institutional participation. The move could significantly increase capital entering crypto through compliant infrastructures.
Bitcoin Could Fall to $50K if Rate-Cut Expectations Disappoint, Analyst Warns β A negative central-bank outcome could trigger a major risk-asset unwind. BTC might see heavy downside pressure. Such a drop would destabilize leveraged positions and broader market confidence.
Market Trendline
PRICE ACTION
Cryptoβs back in rally mode β but donβt call it a comeback just yet. After a jittery start to the month, the majors caught a bid, helped along by a dovish macro backdrop and signs of institutional nibbling.
Market Overview
Markets are trading higher across the board. Bitcoin and Ethereum both posted strong 24-hour gains as traders front-run an expected Fed rate cut later this week. Liquidity is ticking up, funding rates are creeping positive again, and the bid is broadening beyond just the top two.
Notable Movers
Bitcoin (BTC) bounced off weekend lows near $88K and reclaimed the $91Kβ92K zone. No frenzy here β the move looks calculated, with accumulation on derivatives and spot markets pointing to smart money legging in.
Ethereum (ETH) pushed back above $3,100, continuing to show relative strength. Whale wallets are stacking again, and ETH/BTC is ticking upward β always a decent gauge of altcoin season readiness.
Solana (SOL) outperformed most large caps, climbing ~3% on the day. Activity on Solana DeFi protocols is ticking up, and sentiment is quietly turning. The chainβs meme-coin crowd may be fading, but serious capital seems to be rotating back in.
Macro View
Fed futures are now pricing in a rate cut with near certainty. Thatβs flipped the switch for risk-on trades, and cryptoβs grabbing its slice. The broader equity rally is helping too, with the S&P hitting fresh highs. Still, one hot CPI print or a hawkish press conference could kneecap this bounce just as fast.
Bottom Line
Crypto markets have found a pulse again, led by BTC and ETH, with altcoins like SOL tagging along. Itβs a clean bounce off the lows β but it smells more like pre-Fed positioning than the start of a full bull cycle. Eyes on Wednesday.
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DISCLAIMER:Β None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.


