Welcome to the Beluga Brief, where we deliver data-driven insights to your inbox every week, spending our time in the crypto trenches and combing through thousands of crypto news feeds so you don’t have to.

As the Beluga Brief grows we’ll try out new content sections and schedules to find what is best for our readers — if you have other suggestions for things you’d like us to cover, feel free to leave a reply on our Twitter!

What happened today?

It would be an understatement to say the last few days have been rough for crypto: exchange giant Bybit was hacked by North Korea for $1.4B, OKX plead guilty and will pay a $500M fine to the DOJ, and of course the hundreds of millions in liquidations over the last few hours. And yes, you read that right, North Korea pulled off one of the biggest heists of all time on Friday, compromising at least 5 senior employees at Bybit to steal $1.4B in crypto from the exchange’s cold wallet. While efforts are under way to recover the funds, for hacks done by NK’s Lazarus group it’s uncommon to recover more than 15-25% of what was taken.

All of this has resulted in Bitcoin sliding to $91,500 at time of writing, which honestly isn’t that bad in the grand scheme of things. Alt-coins have taken a far larger hit, however, with over $30B in market cap wiped out today alone leaving Solana down 15% in the last 24 hours to $140. Golden bull run, right?

Trading Talk

As the zoomers say, the trenches are pretty cooked right now. What we’re experiencing now is a panicked sell off on even the major tokens, so of course the assets further down the risk curve aren’t finding buyers. Interestingly, it seems to have become consensus among traders that Bitcoin is in its own cycle now, and will stay resilient while the rest of the market crumbles whenever the cycle ends. To me this feels like people grasping at straws to try to figure out a reason for why things are trading as they are, since it’s very different from what we saw in 2021.

Even after FTX I don’t really remember the sentiment being as bad as it is right now among traders, and I think it’s candidly because most of the market’s attention has been on memecoins. This spirit of financial nihilism where people truly began to believe nothing had value has fully permeated most of the everyday traders in the market, leading to many becoming disinterested in the industry. For those who have been around in crypto for a few years, the vast majority joined for reasons other than memecoins. It may have been because they believed in the possibility for a better financial system, a more transparent world, to be in true control of their own finances and cut out the middleman, or any number of things uniquely enabled by blockchain technology.

I think until we get back to that culture, things will probably continue to feel bad — the good news is crypto is one of the fastest moving markets in the world, and I think the transition is already happening. Between the massive institutions (including Citadel as of today) gearing up to operate in crypto, a kinder regulatory regime and a mass of capital desperately looking for something real, the ingredients are all there for sectors like RWA’s to rise.

Tweet of the Day

Adin Ross nailed the top and we called him dumb.

Biggest Headlines

The Beluga intern has been hard at work gathering all the most important crypto news stories so you have them in one place!

The Majors

• Bybit hack drives Ethereum derivatives traders to hedge against further downside, analyst says

Alt Coins and Stocks

• Solana plunges to lowest price since October as meme momentum cools

• Crypto exchange Bybit says it fully replenished reserves after record $1.5 billion hack

Regulatory

• Strategy CEO Michael Saylor pitches regulations reform to SEC Crypto Task Force

• OKX to pay $500 Million after guilty plea for crypto crime

Memecoins

• Memes Lab raises $2.3 million in seed round led by Lemniscap

Do your Crypto taxes for FREE with Awaken

Awaken is a crypto tax software built for degens. They help do taxes on 300k+ wallets, so whether you are in the trenches or yield farming, they got you covered.

And if you sign up by March 1st 100% of your Solana transactions are FREE (+ free Bitcoin, Hyperliquid, and Sui transactions too). 

Here’s how it works:

1. Connect all your wallets & exchanges (they’ve got Bitcoin, Ethereum, Solana, Base, Coinbase, Kraken, Gemini—you name it).

2. Auto-import & label every transaction (DeFi, NFTs, LPing, lending—no sweat).

3. Download the exact tax report you need (with coverage for dozens of countries).

The best part? You can start using Awaken right now for free—and breeze through tax season like a pro.

I want my tax report

Recent Beluga Content

The content on this site is for informational purposes only and should not be construed as investment advice. While Beluga strives to ensure the accuracy and timeliness of information, there may be discrepancies when comparing our data to that of financial institutions, service providers, or specific product websites. Always consult with a professional before making any financial decisions.

Will McKinnon is the Head of Content for Beluga and has spent every day for many years trading coins. For that reason there are too many to name, however his largest holdings by a significant margin are Ethereum and Bitcoin. NFA DYOR