GeckoPulse: Chaos Arising from Middle East Tensions

This GeckoPulse episode covers March 2-3’s top crypto news. Subscribe to our free daily newsletter to be the first to receive breaking updates!

Mayhem in the Markets

Bitcoin is once again suffering from another bout of weekend volatility as tensions in the Middle East flare up.

The world's biggest cryptocurrency fell to as low as $63K on Saturday after the first air strikes on Iran were announced.

While BTC rebounded to a peak of $68K after the death of Iran's supreme leader was confirmed, it currently trades around the $66K range.

Over $962M in leveraged positions were liquidated over the weekend, according to CoinGlass data.

Elsewhere, commodities such as oil and gold saw a sharp spike in volatility, with the latter breaking past the $5,400 mark earlier today.

While other major cryptocurrencies saw drawdowns in line with Bitcoin, Hyperliquid's native HYPE token was among the few that increased after the conflict.

The platform's increased volume and subsequent revenue over the weekend drove HYPE's 15.9% surge from $26.22 to $30.40 today.

The Bonds are Back in Town

Bitfinex Securities is resuming its issuance of tokenized bonds for the tokenization platform ALTERNATIVE, building on a history of four successful offerings that have raised over $6 million since 2023.

The bonds will be denominated in USDT and issued on a Bitcoin sidechain known as Liquid Network, which is expected to raise over $10M.

The initial fundraising, along with future coupon and principal repayments will be executed on-chain.

The bonds themselves cover various businesses, ranging from private credit from emerging markets to financing for SMEs.

Products will be deployed alongside ALTERNATIVE’s other traditional bond programs, with an expiration period of 11 months.

However, it’s worth noting that while all bond transactions will occur on-chain, settlement details will be shielded to maintain confidentiality.

Pump Expands the Pie

The Solana-based memecoin launchpad, Pump.fun, has updated its mobile app to support tokens created on rival platforms like Raydium and Meteora, moving beyond its own native ecosystem.

According to their latest announcement, the app now allows users to trade and hold "blue-chip" wrapped assets backed by Wormhole, as well as established tokens like GIGA and PENGU.

The move is intended to reduce user friction, allowing users to consolidate their assets directly on Pump and trade using a single interface.

Pump.fun’s native PUMP token is currently down by 4.5% since the announcement.

Making Bitcoin Bankable

Banking giant Citigroup plans to integrate Bitcoin into its existing institutional frameworks, allowing clients to manage crypto, securities, and cash within a single safekeeping account.

The service will apply the same reporting, tax, and custody standards to Bitcoin that the bank currently uses for traditional assets.

According to Nisha Surendran, the head of digital asset custody at Citi, clients will be able to instruct how transactions should be performed through APIs or SWIFT, while the bank handles the heavy lifting of clearing and settlement.

Additionally, clients will be able to cross-margin between digital and traditional assets, leveraging their total portfolio to more efficiently manage collateral.

In Other News

Nasdaq Wants Prediction Markets Too. Nasdaq, US’s second largest stock market exchange files with the SEC to offer binary "Outcome Related Options" contracts. If approved, users may be able to trade yes or no outcomes directly on their brokerage applications in the future.

Japan Tests Blockchain-based Reserve Settlement. Bank of Japan Governor Kazuo Ueda said it plans to test whether central bank money can operate in blockchain-based systems. This announcement aligns with Japan’s current efforts of exploring blockchain technology under “Project Agora”.

Uniswap Wins and Dismisses Class Action Lawsuit. A long-running lawsuit against Uniswap, a popular DEX, has been dismissed. The plaintiff alleged that Uniswap was responsible for the scam tokens and rugpulls listed on their platform even if it was listed by third parties. The case was first filed in 2022.

Opinion Airdrop Is Here. Opinion, the prediction market funded by YZi Labs, CZ’s family office has revealed their airdrop checker and eligibility criteria. The project is apparently heavily farmed and TVL has dropped massively since the announcement.

The Worst Polymarket Trader in History? Anonymous Polymarket whale “Anoin123”, was one of Polymarket’s most profitable traders with his strategy of placing large bets of “No” on unlikely political events. His strategy backfired when the US struck Iran, causing him to lose $6.5M in a single day.

Kalshi Intervenes with Iran’s Leader Khamenei Predictions. Tarek Mansour, the co-founder of prediction market Kalshi clarified the platform’s decision to void some positions and said “we design the rules to prevent people from profiting from death”. The decision was controversial as users on X felt cheated that the terms of the bet had been changed unilaterally.

Down to His Last $10K. The infamous crypto trader Machi Big Brother has apparently lost $74M in the last 6 months on his Hyperliquid trading account. According to on-chain analytics Arkham, he has been attempting to long ETH since September when the price of ETH was $4.7K.

Markets Never Close on Hyperliquid. Oil-linked, Gold and Silver futures saw increased volatility over the weekends after U.S. and Israeli strikes on Iran reignited fears of supply shocks. This event showcased the strength of DeFi platforms such as Hyperliquid which remained operational 24/7 while traditional markets remained closed.