Polymarket Eyes Launching Its Own Stablecoin

Plus, 💸 PUMP tanks as insiders dump, ⏸️ SEC pauses Bitwise ETF, 🧵 $2B ETH leaves staking, 🎧 Udi sees $400K BTC.

Author

Juan Aranovich
July 23, 2025

Hi! In today’s edition:

  • 🧪 Polymarket plots a stablecoin power move

  • 💥 PUMP top funds dumped big?

  • 🚫 SEC greenlights Bitwise ETF… then hits pause

  • 🏃‍♂️ Record $2B ETH exits staking queue

On the podcast:

  • 🎙️ Udi: BTC to $400K? Here’s why

  • 🎧 Bits + Bips breaks down stablecoin law and ETH rally

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Polymarket Considers Launching Its Own Stablecoin

Crypto-based prediction market Polymarket is reportedly considering launching its own stablecoin as a strategy to gain direct control over the yield from interest-bearing reserves that currently back users’ USDC deposits on its platform.

CoinDesk first reported the initiative on Tuesday, citing a source that said no final decision had been made on the matter, but Polymarket was evaluating two potential pathways. 

The first option was launching a platform-native stablecoin, which users could easily convert their USDC or USDT into, keeping the liquidity and yield within Polymarket’s closed trading system.

The second option would be entering a revenue-sharing agreement with USDC issuer Circle, potentially allowing Polymarket to share in the interest generated from reserve assets without launching a new token.

The move comes as the broader regulatory environment in the U.S. becomes more accommodating: recent federal legislation like the GENIUS Act has provided clearer legal frameworks for stablecoin issuers.

PUMP Drops Below ICO Price as Private Sale Investors Send $160 Million to Exchanges 

Private sale investors of the Pump.fun’s native PUMP token have transferred over $160 million worth of it to centralized exchanges, according to data from Lookonchain.

Two major wallets, identified as “PUMP Top Fund 1” and “PUMP Top Fund 2,” were involved in these large token movements. 

PUMP Top Fund 1, which bought 25 billion tokens for $100 million USDC during the private sale, sent 17 billion tokens valued at nearly $90 million to exchanges.

PUMP Top Fund 2, which acquired 12.5 billion tokens for $50 million, has fully offloaded the entire position, sending $71.3 million to exchanges. 

The massive token dump coincides with the PUMP token dropping below its ICO price of $0.004, currently trading around $0.00375, representing a 32% decline since launch and a 70% drop from its all-time high just seven days ago.

Pump.fun has also lost market share to competitor LetsBonk, which has seen its share of the Solana meme token launchpad grow from 51% in early to July to 64% at the time of writing. 

SEC Hits Pause After Approving Bitwise Crypto ETF Conversion

The U.S. Securities and Exchange Commission (SEC) initially approved the conversion of Bitwise Asset Management’s 10 Crypto Index Fund (BITW) into a spot exchange-traded fund (ETF) on Tuesday, but quickly issued a stay order, pausing the process for a full commission review.

The Bitwise 10 Crypto Index Fund currently offers exposure to a basket of major digital assets weighted by market cap. The fund holds roughly 90% of its assets in BTC and ETH, with XRP representing about 6.7% of assets and other altcoins like SOL, ADA and AVAX sharing the remainder.

The conversion would have made BITW the first multi-asset crypto index ETF in the U.S. if it had proceeded, easing institutional and retail access to diversified crypto exposure through traditional brokerage accounts.

It marks the second reversal of a multi-asset crypto ETF approval in July, following the SEC’s sudden pause on Grayscale’s Digital Large Cap Fund (GDLC) conversion just weeks earlier.

“IMO, both of these should be allowed to convert/uplist asap. Bizarre situation,” said ETF analyst and NovaDius Wealth Management president Nate Geraci on X.

$2 Billion in ETH Hits Ethereum Validator Exit Queue 

Around 548,132 ETH, valued at over $2.02 billion, is currently queued to exit the Ethereum network, marking the largest validator exit queue since January 2024. 

The surge in validator exits has also extended withdrawal delays to over nine days, the longest wait time in more than a year.  

The exit volume is likely driven by ETH’s recent price action, gaining 160% since April and 67% in the last month alone. Stakers who entered the network at lower prices could now be looking to cash out and lock in gains.

Still, the demand for staking ETH remains almost equally strong, reflected by the entry queue swelling to over 355,000 ETH worth $1.3 billion.

Udi Wertheimer on Why Bitcoin Could Reach $400,000 by Year's End

Udi Wertheimer says OG bitcoiners are gone, and that’s why the next Bitcoin rally could melt your face off.

Bitcoin is up over 25% year-to-date, but what if this is still the beginning?

Udi Wertheimer joins the show to share a thesis that’s grabbing attention across crypto: that we’re entering a generational Bitcoin rotation, where old holders are out, new institutional buyers are in, and price targets like $400K may arrive faster than anyone expects.

He explains why the emergence of “forced buyers” like Michael Saylor’s Strategy changes everything, why he thinks the altcoin cycle is already lost, and how the biggest mistake Crypto Twitter is making today is thinking this is the top.

Listen to the episode on Apple Podcasts, Spotify, Pods, Fountain, Podcast Addict, Pocket Casts, Amazon Music, or on your favorite podcast platform.

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Bits + Bips: Stablecoins Just Went Legit, but That’s Only the First Step

Crypto won big in DC, but the industry has plenty of other fights to win. Plus, why ETH is finally rallying and whether Trump is posing a real threat to the Fed. 

Last week, the U.S. passed its first major piece of crypto legislation. Stablecoins now have a legal home, and that could open the floodgates for adoption, disruption, and regulation.

But is this just the beginning?

In this episode of Bits + Bips, Ram Ahluwalia, Noelle Acheson, Steve Ehrlich, and guest Cosmo Jiang of Pantera dive into what the stablecoin law actually means, who it helps, who it threatens, and why Wall Street and crypto startups alike are positioning fast.

They also cover Ethereum’s rally, what’s fueling it, and whether the boom in digital asset treasury companies is sustainable. Plus, they unpack Trump’s latest threats against the Fed and what it means for markets, inflation, and interest rates.

Listen to the episode on Apple Podcasts, Spotify,Pods, Fountain, Podcast Addict, Pocket Casts, Amazon Music, or on your favorite podcast platform.

  • 📑 Multiple issuers of spot Bitcoin and Ethereum ETFs, such as Fidelity, VanEck, and Franklin Templeton, filed amendments with the SEC to allow in-kind redemptions, a move seen as progress toward treating crypto ETFs like traditional ones.

  • 🕵️ The FBI has officially dropped its hacking investigation into Kraken founder Jesse Powell and returned dozens of seized devices, ending a probe tied to a dispute with an arts nonprofit rather than his crypto business.

  • 🏛️ Senate Republicans unveiled a draft bill aimed at establishing clearer crypto regulations, building on a bipartisan House effort and proposing tailored oversight from both the SEC and CFTC.

  • 👥 Consensys is cutting 7% of its staff, 49 roles in total, in a restructuring effort aimed at boosting profitability, just over a year after laying off 20% of its workforce.

  • ⚠️ Citadel Securities warned that fast-tracking tokenized securities without firm regulation could hurt traditional markets, urging the SEC to slow down and avoid favoring crypto platforms at the expense of legacy finance.

  • 🔗 PNC Bank and Coinbase partnered up to let PNC clients access crypto services through Coinbase’s platform, joining a growing list of U.S. banks integrating digital assets into their offerings.

  • 💬 Telegram’s built-in crypto wallet, TON Wallet, is now available to U.S. users, letting them buy, sell, and send tokens within the app after hitting over 100 million activations globally last year.

  • 🧠 A16z backed startup Poseidon with $15 million to build a decentralized system for legally sourced AI training data, developed on the Story Protocol to reward creators and ensure IP compliance.

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