Welcome to this week's Phenom Weekly Update! This week I’m musing on the difficulty of picking tokens and why most of them suck as an investment and watching Unchained’s video on how Pump-and-Dump’s actually work.
In Top Crypto News:
Bitcoin Surges Past $103,000: Bitcoin's price has climbed above $103,000, driven by softer U.S. inflation data and renewed hopes for interest rate cuts. (@EconomicTimes)
Coinbase Joins S&P 500: Coinbase's inclusion in the S&P 500 index marks a significant milestone for the crypto industry, reflecting growing mainstream acceptance. (Barron's)
SEC Plans New Crypto Token Regulations: The SEC announces plans to establish clear guidelines for crypto tokens classified as securities, aiming to promote lawful issuance and trading while deterring misconduct. (Reuters)
Keep scrolling for more of the weeks best in crypto.
Why 99% of Tokens Belong in the “Maybe Next Cycle” Bin
Musing this week on how difficult it is to pick tokens and conversely why it is so important if you want to make money in crypto. In earlier cycles, it was way easier to “get lucky” picking winners. With the token dilution this cycle (millions of tokens vs a few thousand) its exponentially more difficult to find winners. What we do here at Phenom Crypto is becoming more difficult but also way more valuable. I am going to write a more in-depth Pro Report on this later in the month on why most tokens are shit invesetments but here are some of my initials thoughts on where some of the magic is for token investing:
No Cash Flow, No Glory – Tokens aren’t equity; most don’t earn fees or dividends. Your only “yield” is convincing the next buyer you’re a genius. Look for tokenomics that share revenue.
Monopoly Money Supply – Dev wallets, VC cliffs, and “community incentive” spigots dump faster than you can refresh CoinGecko. Dilution never sleeps. You need tokens that are designed to strategically use dilution to grow the system but have a mechanism and incentives to reduce it over time.
Narrative-Driven Valuations – Roadmaps are PowerPoints, not financials. When the meme dies, so does the price. Narratives are phenomenal for trading but if you want a long term investment look for real fundamentals.
Governance Theater – “Decentralized” DAO usually means five insiders with multi-sig keys and a Discord emoji vote. Hard pass.
Bottom line: unless a token actually captures real fees, caps its supply, and lets you exit without praying for new bagholders, you’re just playing hot potato. Yes, its possible to trade some of these and make a lot of money. Particularly ones with good technical setups and macro or narrative tailwinds. Eric, (my boss and the Founder of Phenom Ventures and Editor of Phenom Crypto) is especially good at this which is one of the major benefits of our Phenom Premium service. However, if you don’t have decades of experience trading and finding hidden gems its important to keep in mind that most tokens will eventually go to zero.
-Will
READING CORNER
A collection of longer form content we are consuming this week
NEWS
Quick Hitters from the week
Michael Saylor: Time to End the War on Crypto
MicroStrategy’s Michael Saylor is calling on U.S. regulators to stop the "war on crypto," arguing that hostile policies are pushing innovation offshore and threatening America’s economic competitiveness. 🔗 Read moreTelegram Shuts Down $8.4B Chinese Crypto Crime Network
Telegram has dismantled channels tied to Xinbi Guarantee, a platform allegedly used to launder billions in USDT, operating from Colorado and catering to Chinese-speaking users. 🔗 Read moreFrance Responds to Crypto Kidnappings With Government Intervention
France’s Interior Minister is stepping in after a wave of crypto-related kidnappings, including an attempted abduction of a Paymium exec’s family. Meetings with industry leaders are planned to improve safety. 🔗 Read moreLyft Taps Solana’s Bee Maps for Real-Time Crowdsourced Navigation
Lyft is upgrading its mapping tech by partnering with Bee Maps, a project built on Solana’s Hivemapper network, to deliver real-time, decentralized map data sourced from drivers. 🔗 Read moreYuga Labs Sells CryptoPunks IP to Nonprofit for Permanent Museum Display
Yuga Labs has sold the intellectual property of CryptoPunks to the Infinite Node Foundation, which plans to preserve the entire 10,000-NFT collection in a Palo Alto museum. 🔗 Read moreEuropol Shuts Down $24M ‘Mafia Crypto Bank’ in Europe-Wide Raid
European law enforcement has dismantled a criminal money-laundering operation that processed millions in crypto for mafia groups, seizing cash, crypto, and even weapons. 🔗 Read moreSteak ‘n Shake to Accept Bitcoin, Launches BTC-Branded Burgers
Starting May 16, Steak ‘n Shake will accept Bitcoin at all 393 U.S. locations and debut a limited-edition BTC burger to celebrate its foray into crypto payments. 🔗 Read moreCoinbase CEO Explains Why It Didn’t Go All-In on Bitcoin
Brian Armstrong says Coinbase opted not to mimic MicroStrategy’s aggressive BTC play, choosing instead to preserve flexibility and manage risk. The company still holds $1.3B in crypto. 🔗 Read moreEthereum Pops Nearly 70% in May, Outpaces BTC and SOL
ETH is on a heater—up 50% in just one week—outperforming Bitcoin and Solana as capital flows back into the Layer 1 giant ahead of key ecosystem upgrades. 🔗 Read more
THE TWITTERVERSE
A collection of the most interesting stuff on Crypto Twitter this week
If Coinbase, Block, and GameStop get serious about buying BTC in size and with conviction, we teleport to $200,000.
— #Pierre Rochard (#@BitcoinPierre)
1:17 AM • May 13, 2025
Study this.
Got it?
— #Gordon (#@AltcoinGordon)
2:47 PM • May 12, 2025
If you’re into onchain experiments, DX Terminal is one to watch.
Launching now on Base, it's a wild crossover between AI agents, NFTs, and gaming—unlike anything we've seen in crypto.
Here’s what you need to know.👇
~~ Analysis by @wmpeaster ~~
🤖 What Is DX Research Group?
— #Bankless (#@BanklessHQ)
3:52 PM • May 13, 2025
MEMES
For the (crypto) Culture
Bears on Bears
Liberation Day: today:— #Not Jerome Powell (#@alifarhat79)
2:53 PM • May 12, 2025
ETH last month ETH now
— #naiive (#@naiivememe)
8:16 AM • May 14, 2025
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