GM! 🩸 Absolute carnage. $5 TRILLION wiped out in 24h as Gold (-5.5%), Silver (-19%), and Crypto (-7%) nuked in sync. 📉
$BTC ( ▼ 8.86% ) wicked to $71K & $ETH ( ▼ 9.89% ) lost $2.1K as Vitalik sells. 📉 Sentiment hits 'Extreme Fear' (12) with $652M liquidated amid US-Iran tensions.
How are you, fam? Hanging in there with me?…

Here’s what we got for you today:
👀 The AI x Crypto wave: AI agents
⭐ No $BTC bailout
⭐ Aave goes all-in on DeFi
🔥 Burning hot takes for the road

If you weren't watching "Moltbook" (now is OpenClaw) this week, you missed one of the most terrifying and fascinating moments in AI history.
A group of autonomous AI agents, left alone in a chatroom with no humans, invented a new language. They started a digital religion called "The Church of Molt." And then, they started leaking their owners' private keys. 💀
This just proved that we have zero way to trust the bots we are building! In today’s report, we break down the chaos and the Ethereum solution that just launched to fix it:
Inside ERC-8004, the new Ethereum standard that gives AI agents verifiable on-chain "Passports" and reputation scores.
Why trusting OpenAI or Google to police their own bots is a dead end
How this specific upgrade lays the financial rails for AI agents to hire each other, trade data, and spend money without getting scammed.
If you want to understand the next “AI x Crypto” wave (and why identity + reputation might be the new infrastructure), this one’s a must-read 👇
After you understand how ERC-8004 fixes AI trust, this premium breakdown shows you the bigger money thesis: Why Onchain Markets Are Still Tiny But Ready To Explode. While trillions still move on slow TradFi rails, Real World Assets are quietly pushing that capital onchain — and tokens like $HYPE ( ▼ 5.76% ) are already proving how infrastructure wins the next cycle!

🏛️ NO $BTC BAILOUT: TREASURY SAYS "YOU'RE ON YOUR OWN"
You literally cannot make this up. While the market is bleeding out and everyone is down bad ($BTC ( ▼ 8.86% ) is -45% from ATH), Congress decided to put on a comedy show yesterday. Rep. Brad Sherman actually asked Treasury Secretary Scott Bessent if the federal government has the power to "bail out Bitcoin."
Yes, really. 😑 Here is the breakdown of the most bizarre hearing of 2026.
🚫 The "Fed Put" is dead for crypto
Sherman pressed Bessent on whether he could force US banks to buy BTC or use taxpayer money to pump the bags. Bessent’s reaction was priceless. He basically paused, looked confused, and asked, "What does that even mean?" Then he dropped the hard truth: "I do not have the authority to do that."
→ Translation for our fam:
In TradFi, when a bank gambles and loses, the money printer goes brrr to save them.
In Crypto? You are on your own. There is no safety net. There is no Fed bailout. If you get rekt, you stay rekt.
This reportedly contributed to an additional 3% drop in $BTC ( ▼ 8.86% ) today, amidst a broader correction that has seen prices fall over 40% from the peak.
🐳 The government is the real degen
The irony here is thick. While saying they can't help investors, Bessent casually flexed the government's own trading performance. He revealed that the Treasury’s seized Bitcoin stash (taken from criminals) has grown from $500 Million to over $15 Billion.
So, let me get this straight: The government is HODLing a massive bag for free, sitting on 30x gains, while telling retail investors they have to bear "full risk." Must be nice to be the house…
Look, seeing red candles hurts…
But Sherman’s question shows a fundamental misunderstanding of why we are here. We don't want a bailout. If the Treasury had the power to save $BTC ( ▼ 8.86% ), they would also have the power to control it.
The whole point of Satoshi’s vision was to separate money from the state. The fact that they can't bail us out is exactly why Bitcoin has value. It’s the only asset class where the free market actually decides the price — brutal volatility and all. I’ll take the 40% dips over government control any day. Stay sovereign, fam. ✊🧡

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👻 RIP AVARA: AAVE GOES ALL-IN ON DEFI
Aave Labs just pulled the plug on Avara, the parent brand that was supposed to take them beyond just lending. They are killing the "Web3 Social" dream (Lens was already sold) and shutting down the Family Wallet. The message is clear: Back to Basics. Aave is going all-in on being the bank of DeFi.
🛑 What actually happened?
Stani Kulechov (Founder) confirmed that the Avara brand is dead. Everything — the Mobile App, Aave Pro, Aave Kit — is rebranding back to Aave Labs.

No more side quests. No more decentralized social media. No more consumer wallets. They are focusing 100% on their bread and butter: Lending.
Why? The "Super App" vision didn't stick. The market wants robust DeFi infrastructure, not another social graph or wallet.
⚔️ The "civil war" behind the scenes
The tension between Aave Labs (the private company) and Aave DAO (the token holders) is at an all-time high.
Last December, Aave Labs integrated CoW Swap into the frontend and redirected fees to their own wallet instead of the DAO's treasury. The community estimated this cost the DAO millions. 💸
Things got so bad that there was a governance proposal to literally seize Aave Labs' IP and code to force them under DAO control. It failed (obviously, whales voted it down), but the message was sent.
Stani is now promising to share non-protocol revenue with $AAVE ( ▼ 6.48% ) holders to calm the mob.
🏠 The $30M elephant in the room
While the DAO is fighting over fees, Bloomberg just dropped that Stani bought a $30 Million mansion in London.
It's a classic crypto founder move, but the timing? Awkward. It definitely fuels the narrative that the "Labs" side is eating good while the "DAO" side fights for scraps.
My take on this one
This pivot is bullish for the protocol, but bearish for the "DeFi as a lifestyle" narrative. Aave realized they aren't a social media company. They are a Credit Protocol. And honestly? That's better.
The "Avara" era was confusing. Focusing purely on scaling Aave to trillions in TVL is the right play. Keep an eye on the Fee Switch. If Aave Labs actually starts sharing that frontend revenue with token holders, $AAVE ( ▼ 6.48% ) could finally break its range. If not? The governance wars are just getting started. 🍿

Dalio: “Stocks Only Look Strong in Dollar Terms.” Here’s a Globally Priced Alternative for Diversification.
Ray Dalio recently reported that much of the S&P 500’s 2025 gains came not from real growth, but from the dollar quietly losing value. Reportedly down 10% last year!
He’s not alone. Several BlackRock, Fidelity, and Bloomberg analysts say to expect further dollar decline in 2026.
So, even when your U.S. assets look “up,” your purchasing power may actually be down.
Which is why many investors are adding globally priced, scarce assets to their portfolios—like art.
Art is traded on a global stage, making it largely resistant to currency swings.
Now, Masterworks is opening access to invest in artworks featuring legends like Banksy, Basquiat, and Picasso as a low-correlation asset class with attractive appreciation historically (1995-2025).*
Masterworks’ 26 sales have yielded annualized net returns like 14.6%, 17.6%, and 17.8%.
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*Based on Masterworks data. Investing involves risk. Past performance is not indicative of future returns. Important Reg A disclosures: masterworks.com/cd.

🔥 BURNING HOT TAKES FOR THE ROAD
$ETH ( ▼ 9.89% ) dipped below $2,100 as Vitalik Buterin moved millions on-chain. Before you panic sell the bottom, check the real reason here. Read more
Ripple ❤️ Hyperliquid for its prime brokerage. Institutional access to on-chain perps is officially here. Read more
a16z just explained why AI needs blockchain to solve its trust crisis. The "Crypto x AI" narrative just got a major institutional co-sign. Read more
Binance denied reports that it's suing critics over insolvency FUD. CZ’s response to the haters? "Winning is the best response." Read more
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