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<v Speaker 1>Hey, it's Alex with the Token Metrics daily pulls from

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<v Speaker 1>May nineteenth, twenty twenty six. We've got a lot to

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<v Speaker 1>unpack today, from a massive exploit on monad to some

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<v Speaker 1>heavy selling in the bitcoin funds. It's a bit of

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<v Speaker 1>a rough one, so let's get into it. But first

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<v Speaker 1>a quick word from our sponsor. Okay, So here's what's happening.

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<v Speaker 1>The big headline today is seventy six million dollars vanishing

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<v Speaker 1>from Echo protocol. Someone found a way to trick the

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<v Speaker 1>system into printing fake bitcoin out of thin air and

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<v Speaker 1>then swapped it for the real thing. This matters because

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<v Speaker 1>it brings the total loss to hacks this year to

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<v Speaker 1>over three hundred million dollars. At the same time, the

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<v Speaker 1>big bitcoin funds saw over six hundred million dollars walk

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<v Speaker 1>out the door in a single day. People are feeling

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<v Speaker 1>very nervous. The Fear and Greed Index is down to

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<v Speaker 1>twenty five, which is deep into extreme fear territory. To

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<v Speaker 1>top it off, a new law called the Clarity Act

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<v Speaker 1>just got a last minute update that can make life

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<v Speaker 1>very difficult for decentralized finance apps in the US. Looking

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<v Speaker 1>at the numbers, bitcoin is holding steady around seventy seven thousand.

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<v Speaker 1>It's not really moving much, but Ethereum and Salona are

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<v Speaker 1>feeling more of the heat. Total market cap is sitting

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<v Speaker 1>at two and a half trillion dollars. Bitcoin dominance is

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<v Speaker 1>up at fifty eight percent, which means people are hiding

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<v Speaker 1>in the big coin rather than taking risks on smaller ones.

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<v Speaker 1>Total value locked in DeFi is around eighty three billion.

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<v Speaker 1>One interesting thing is that stable coins supply has it changed.

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<v Speaker 1>This tells us that even though people are scared, they

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<v Speaker 1>aren't necessarily cashing out to the bank. They're just sitting

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<v Speaker 1>on the sidelines waiting for a sign over. On the

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<v Speaker 1>prediction markets, most people are betting that Ethereum stays above

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<v Speaker 1>twenty one hundred for the day, but nobody is exactly

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<v Speaker 1>betting on a big rally. Even with all this fear,

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<v Speaker 1>some corners of the market are still moving. Analytics tokens

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<v Speaker 1>jumped over one hundred percent this week, led by a

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<v Speaker 1>project called super Fortune. Politify tokens are also up significantly.

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<v Speaker 1>These are small categories, so a little bit of money

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<v Speaker 1>makes a big splash. More importantly, the d pen sector,

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<v Speaker 1>which is basically using crypto to build real world infrastructure

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<v Speaker 1>is up twenty percent. AI tokens are also holding on

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<v Speaker 1>to a sixteen percent gain. The takeaway here is that

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<v Speaker 1>investors are getting much more picky. They're moving away from

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<v Speaker 1>general hype and looking for specific themes that have a

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<v Speaker 1>clear purpose. For today's Alpha spotlight, we're looking at gold.

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<v Speaker 1>It's down about four percent this week. Usually when crypto

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<v Speaker 1>investors get scared, they look at gold as a safe harbor,

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<v Speaker 1>but right even gold is being sold off. This suggests

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<v Speaker 1>we're in a risk off environment across the board, which

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<v Speaker 1>means big investors are pulling back from everything, not just crypto.

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<v Speaker 1>The full macro regime walk through and what it means

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<v Speaker 1>for your crypto allocation is in the monthly playbook Alpha

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<v Speaker 1>Trial at tokenmetrics dot com. Let's dive deeper into that

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<v Speaker 1>Echo protocol hack. The attacker broke the mechanism that creates

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<v Speaker 1>EBTC on the monod network. In plain English, they found

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<v Speaker 1>a loophole to print money without putting up any collateral.

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<v Speaker 1>This is a huge blow because it happened just as

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<v Speaker 1>Congress is debating the Clarity Act. There's a new clause

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<v Speaker 1>in that bill that could treat these protocols like traditional stockbrokers.

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<v Speaker 1>If that sticks, many decentralized projects might have to block

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<v Speaker 1>US users or shut down entirely because they aren't built

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<v Speaker 1>to handle that kind of red tape. On the flip side,

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<v Speaker 1>the SEC is actually softening its stance on tokenized stocks.

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<v Speaker 1>This could eventually let you trade Apple or Tesla shares

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<v Speaker 1>on a blockchain. Twenty four to seven bitgit wallet is

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<v Speaker 1>already jumping on this for their ninety million users. Even

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<v Speaker 1>Wall Street analysts are starting to change how they value

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<v Speaker 1>crypto companies. TD Cowen recently raised their outlook for micro Strategy,

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<v Speaker 1>not just because of bitcoin, but because they see the

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<v Speaker 1>company as a new kind of financial platform. Finally, keep

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<v Speaker 1>an eye on the Ethereum Foundation. Two more senior people

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<v Speaker 1>just left, which is part of a larger wave of resignations.

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<v Speaker 1>It's making people wonder if there's a shift happening in

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<v Speaker 1>how Ethereum is managed behind the scenes. All right, before

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<v Speaker 1>we get into the risks, quick word from our sponsor. Okay,

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<v Speaker 1>we're back. Let's talk about what to watch for. We've

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<v Speaker 1>got three main risks to watch. First. That fear and

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<v Speaker 1>greed score of twenty five. When it stays this low

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<v Speaker 1>for a while, it usually means buyers are too scared

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<v Speaker 1>to step in, which can lead to a slow bleeding prices. Second,

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<v Speaker 1>the Echo hack is the perfect excuse for regulators to

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<v Speaker 1>get tough on DeFi. If we see more hacks, the

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<v Speaker 1>chance of getting crypto friendly laws past this year drops fast. Third,

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<v Speaker 1>there's a race happening with token ied stocks. If the

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<v Speaker 1>US takes too long to set the rules, all that

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<v Speaker 1>innovation and money will just move to offshore platforms. The

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<v Speaker 1>big picture, we're waiting to see if the big bitcoin

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<v Speaker 1>funds start buying again. If they do, and if that

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<v Speaker 1>DeFi log gets fixed, the mood could flip very quickly.

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<v Speaker 1>Looking ahead to the next week, keep your eyes peel

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<v Speaker 1>for more details from the SEC on those token I

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<v Speaker 1>stock rules. The specific fine print will decide which companies

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<v Speaker 1>get to lead this new market. Also, watch for a

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<v Speaker 1>post mortem report from the Echo protocol team. If they

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<v Speaker 1>stay silent after losing seventy six million, it's a major

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<v Speaker 1>red flag for the whole monad ecosystem. One quick update

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<v Speaker 1>from our side, the hidden gems feature is now live

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<v Speaker 1>on token Metrics. It's designed to help you find those

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<v Speaker 1>low capped tokens that have strong data signals before they

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<v Speaker 1>hit the mainstream. You can find that at tokenmetrics dot com.

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<v Speaker 1>If you're not subscribed to the podcast yet, hit that

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<v Speaker 1>subscribe button. It takes two seconds. This is educational content,

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<v Speaker 1>not investment advice. Always do your own research. I'm Alex,

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<v Speaker 1>See you next time.