In partnership with
Good morning and welcome to the Hodl Report
Most people fat-finger a zero or two. Paxos minted $300 trillion in PYUSD—roughly three times the global economy—because someone sneezed on a keyboard. Elsewhere in the absurd-but-somehow-real corner of crypto, Pump.fun is pulling me back in. Blame it on nostalgia or the dopamine loop, but memecoins are memecoining again.
Consensus is coming up—yes, that Consensus. If you’re serious about this space (or just want to lurk near the serious people), this is the one you don’t miss. Check them out below
Crypto’s Most Influential Event
This May 5-7 in 2026, Consensus will bring the largest crypto conference in the Americas to Miami’s electric epicenter of finance, technology, and culture.
Celebrated as ‘The Super Bowl of Blockchain’, Consensus Miami will gather 20,000 industry leaders, investors, and executives from across finance, Web3, and AI for three days of market-moving intel, meaningful connections, and accelerated business growth.
Ready to invest in what’s next? Consensus is your best bet to unlock the future, get deals done, and party with purpose. You can’t afford to miss it.
Editors Corner
Why I’m Getting Back Into Pump.fun
Back in August, I recommended Pump.fun — the degenerate little mint-and-list platform that accidentally turned into one of the most profitable businesses in crypto - to our Alpha List subscribers (TLDR: we made 200% and took profit.)
At the time, its market cap was basically equal to what it had raised — a classic asymmetry play. Nobody was paying attention but the numbers were quietly insane. Pump.fun was pulling in more daily revenue than most DeFi protocols that call themselves “blue chips.”
So yeah, I called it early. We took the trade, rode the spike, and took profits when things got frothy. Then, like everything else in this market, it crashed. Hard.
And now? It’s right back where it started — roughly the same valuation I liked it at in August. The difference is that now it’s proven.
Pump.fun is a Cash Cow
The brilliance of Pump.fun is that it monetizes the one thing crypto never runs out of: degeneracy. Every time someone launches a new token, Pump.fun takes a cut. It’s a perpetual machine for monetizing hype like if Uniswap charged a minting fee and printed money off people’s bad ideas.
The platform’s user base is sticky, the transaction flow is relentless and it has a massive war chest. It’s not a “maybe it works” product — it’s already working.
The Crash Reset the Playing Field
Markets are short-term emotional and long-term logical. After Pump.fun’s spike, valuations got overheated, traders took profits, and the hype cycle did what it always does: it ate itself.
But here’s the thing — the fundamentals didn’t change. Revenue is still pouring in, traffic is still growing, and the brand is basically a meme index for the entire crypto casino. The market just needed to cool off.
Now it has.
Why I’m Re-Allocating
For me, this isn’t about chasing another moonshot — it’s about accumulating a proven revenue engine while everyone else is licking their wounds.
When the next wave of retail chaos inevitably hits (and it will), Pump.fun will be right back in the center of the storm, collecting fees and minting memes.
So yeah, I’m reloading. Not with blind faith but with conviction built on data, revenue, and timing. The market gave me a second entry at the same price I liked months ago. That doesn’t always happen.
As always NFA and DYOR, but I am re-allocating a position.
Trivia: The Billion-Dollar “Code Is Law” Exploit
Sponsored by CowSwap - I use CS to execute a lot of trades and couldn’t be more stoked on their product
UN-Limited Limit Orders
Why pay gas for limit orders that never execute? With CoW Swap, you can set an unlimited number of limit orders – more than your wallet balance – then cancel them all at no cost to you. Try Limit Orders.
Today’s Report
A $300 trillion fat-finger, as Paxos accidentally mints PYUSD worth more than the global economy
Key Points
On Wednesday, Paxos minted 300 trillion PYUSD at 7:12 UTC, then 22 minutes later sent the entire minted volume to a burn (inaccessible) address.
The excess minting was explained by Paxos as an “internal technical error,” not a hack. They insist customer funds remain safe and they’ve fixed the root cause.
Despite the jaw‑dropping amount, PYUSD’s price dipped only slightly — roughly 0.5% — and largely maintained its $1 peg.
Aave immediately froze PYUSD’s markets (i.e., halted trades involving it) to prevent cascading problems amid the chaos.
For scale: 300 trillion PYUSD is more than twice the GDP of every country on Earth. (Yes, you read that right.)
Relevance & Takeaways
This incident feels like crypto’s version of accidentally printing extra zeroes on a paycheck — but with trillions of dollars involved. The peg held, which is commendable, but the panic reaction from infrastructure players (e.g. Aave freezing markets) underscores how fragile confidence is in the plumbing of stablecoins.
To me, a few red flags emerge:
Counterparty risk was revealed in real time. Even if it was a “mistake,” custodians like Paxos now face heightened scrutiny for internal controls. One slip could erode confidence deeply.
Protocol operators will act defensively. Aave’s freeze isn’t surprising — better safe than letting a mint‑burn play destabilize liquidity. But such stops are blunt tools and may cause new problems (liquidity crunches, capital misallocation).
The peg’s reputation may be safer than its backend. The market showed some resilience. That said, longer term, repeated “oopses” will chip away at the narrative that stablecoins are bulletproof.
A cautionary tale for composability. PYUSD is expected to be a building block in DeFi — this event shows that errors at the core layer can cascade upward. Projects relying on it must have fallback or hedging strategies.
Bottom line: the crypto space is watching. If you're holding or building around PYUSD, this is a wake-up call to demand transparency, audits, safeguards — or have a contingency plan.
Today’s Top News
HEADLINES
Palmer Luckey’s crypto bank gets tentative green light from regulators — The OCC has issued preliminary approval for “Erebor Bank,” designed to integrate crypto and traditional banking services, though it still needs FDIC OK.
U.S. charges Cambodian exec, seizes $14B in bitcoin from global crypto scam — Authorities allege Chen Zhi ran a massive “pig butchering” scam using forced labor and laundered billions through crypto.
Kraken acquires US‑licensed Small Exchange for $100 million — Kraken is purchasing the CFTC‑licensed Small Exchange to launch a fully U.S.–based derivatives & options platform, allowing it to offer regulated clearing and matching services in the U.S.
G20 watchdog warns “significant gaps” in global crypto regulation — The FSB flagged that many countries still lack coherent rules for stablecoins, leverage, and cross-border crypto flows, calling for stronger international coordination.
Market Trendline
PRICE ACTION
After a brutal liquidations event that wiped out over $19 billion, crypto markets have clawed back some ground. Bitcoin’s bounce above ~$114K put a floor under sentiment, while Ethereum’s resumed recovery has been more pronounced. The broader market is still fragile — volatility remains the theme.
Total market cap is flat to slightly down in the last 24 hours, suggesting this is more of a relief bounce than a sustained turn.
Notable Movers
Ethereum (ETH)
ETH is outperforming. It’s recaptured ~$4,000 and is showing stronger momentum than Bitcoin. The narrative is shifting toward ETH as the infrastructure play to watch right now — it’s flashing early signs of leadership. Options expiries are adding volatility to ETH’s swings.
Bitcoin (BTC)
BTC retraced hard on the shock macro news but is clinging to support just above $108–$110K. It’s acting like bruised heavyweight — slow to move, but still dangerous. The battle lines are drawn: bulls want $116–$120K retest, bears aim to drag it back toward $100–$105K.
Altcoins / Others
Smaller names took heavier hits during the liquidation cascade — auto-deleveraging soil in the spotlight. Some are getting crushed on overshoot, especially leverage-heavy plays. Any bounce in alts will depend on whether ETH remains firm.
Macro View
The trigger for the selloff was sudden trade war escalation, which forced a squeeze in leveraged positions.
We’ve seen a violent de-risking, not a slow fade. The rebound is technical, not fundamental.
Fed policy is still looming. Any dovish tilt may reignite risk appetite, but hawkish surprises will quickly test market backs.
Options expiries this week could catalyze sharp directional moves — positioning is likely to adjust hard.
Bottom Line
We’re in bounce-land, not bull-run land. ETH is flashing leadership, BTC is limping through zone-based structure, and altcoins are walking on a tightrope. If macro noise stays muted and ETH continues to hold, we might see a slow grind higher. But a sudden shock would rip that complacency apart. Stay nimble, respect ranges, and let price prove the path.
Today’s Top Tweet
TWITTER NEVER SLEEPS
I keep seeing investment strategists talking about the disconnect between equity prices and the economic fundamentals…
Don’t forget what I’ve said before:
Wall Street has done well because liquidity has been rising. That is exactly why we stayed bullish after calling the cycle
— #Julien Bittel, CFA (#@BittelJulien)
2:48 PM • Oct 16, 2025
How'd I do this week?
Are you a crypto trader?
I have two products designed to help traders. Check them out if you are looking for an edge or just to learn to become a more successful trader!
You made it to the bottom, congrats! I really appreciate you reading. If you enjoyed today’s content please share it with a friend and if you aren’t already subscribed please do!
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.