
Good morning and welcome to the Hodl Report
Welcome to the hangover party nobody wanted — but everyone got invited. This week’s The Hodl Report opens with “🤕 The Hopium Hangover,” a brutal read‑out on just how far the crypto crowd overshot on wishful thinking — and how the market is now forcing them to swallow reality. Then in “Billion‑Dollar Scheme Turns Blame Game as Crypto Hype Collapses,” we peel back the scaffolding on a major crypto collapse, complete with blame‑shifting, broken promises and the sobering cleanup nobody signed up for. Grab a seat — the show’s about to get messy, and we’re watching it all play out in real time.
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Editors Corner
🤕 The Hopium Hangover
You know that feeling the morning after a night out, when your head is pounding, your stomach is questionable, and you’re pretty sure you made at least three bad decisions you’ll deny forever?
Welcome to the crypto market today.
We’re 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 — definitely different — trust me bro.
And then reality kicked down the door.
Prices rolled over.
Sentiment imploded.
The “institutions are here” crowd suddenly got real quiet.
And now half the market is lying on the floor, staring at their portfolio like, “Wow. I really believed all that, didn’t I?”
Hopium feels amazing on the way up.
It’s warm, energetic, full of promise.
It makes you believe you’re early, chosen, blessed by Satoshi himself.
But when the market turns…
Hopium disappears faster than liquidity in a weekend dump.
And what’s left behind is the hangover:
confusion, denial, regret, and a vague sense of betrayal that the charts did not honor your manifesting.
Here’s the brutal truth:
There’s nothing wrong with optimism — the market literally requires it.
But unchecked hopium?
That’s how people turn into forced sellers at the worst possible moment.
The hangover hurts, but it’s 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 — this week feels rough.
But the good news is simple:
Once the hopium wears off, you’re 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 — and usually, much more interesting.
Crypto Trivia: The Ronin Bridge Raid
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Today’s Report
Billion-Dollar Scheme Turns Blame Game as Crypto Hype Collapses

🚨 Our Report
In a courtroom twist worthy of a crypto‑soap opera, one of the main promoters of HyperVerse—the flamboyant “Rodney Burton” (a.k.a. “Bitcoin Rodney”)—is 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 “elaborate deception.” That’s a bold pivot: Burton, once flogging the scheme to thousands, now says he believed it was legit. Meanwhile, Lee — facing criminal and civil charges — insists the claims are “baseless,” saying his involvement was limited to technology services and painting Burton as a casualty of aggressive regulation.
🔓 Key Points
Burton, arrested in early 2024 for promoting HyperVerse, now insists he was misled by a sophisticated ruse orchestrated by Lee’s side.
He argues he did extensive due diligence, even touring offices in Dubai and Hong Kong — offices he now claims were part of a deception.
The motion for his release argues he acted in “good faith” and suggests political context may tilt in favor of crypto-friendly regulation under the current US administration.
Lee’s defense: he claims only to have provided tech, denies wrongdoing, and says Burton’s 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 $1.9 billion.
🔐 Relevance
This isn’t just a dramatic turn for a fallen promoter — it's a test case for how courts and regulators treat crypto-era fraud. Burton’s 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 — and theatrical — nature of many “too good to be true” crypto schemes. Even now, as regulators spin up fraud prosecutions, the narrative remains: in crypto, reality often looks like marketing.
Today’s Top News
HEADLINES
HyperVerse Ponzi Fallout: “Bitcoin Rodney” vs. Sam Lee — A U.S.‑court case revealed that “Bitcoin Rodney,” a promoter of HyperVerse (part of the wider HyperTech network), claims he was duped by alleged mastermind Sam Lee into backing a $3 billion Ponzi‑style scheme. The trial documents describe elaborate deception — including staged offices and fake leadership — designed to lure investors. The case has revived scrutiny of aggressive crypto‑marketing and legal responsibility of promoters
CFTC Greenlights Bitcoin & Ether as Derivatives Collateral — 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 — 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
Crypto’s back in rally mode — but don’t 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 $91K–92K zone. No frenzy here — 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 — 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 chain’s 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. That’s flipped the switch for risk-on trades, and crypto’s 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. It’s a clean bounce off the lows — but it smells more like pre-Fed positioning than the start of a full bull cycle. Eyes on Wednesday.
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DISCLAIMER: 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.


