⚰️ $XRP Back From the Dead

Is everyone’s holding $HYPE?! A $15 billion token unlock is about to hit the market. And yet… the price is pumping. No dump. No whale dominance. No collapse. But can it survive the $15B unlock?

Here’s what we got for you today:

• ⭐ 5 Things You Shouldn’t Miss

• 🎯 Fed Cuts Incoming. But Will Crypto Really Pump?

• 🤔 $HYPE is Pumping… But $15B to Unlock. Should Yo …

• 🤡 Meme Of The Day

⭐ 5 Things You Shouldn’t Miss

📢 World Liberty Financial ($WLFI.X ( 0.0% ) ) will unlock 20% of its tokens for early investors on Sept 1st. Remaining 80% will require community vote to unlock. Also, Binance opened $WLFI.X ( 0.0% )  futures trading on Aug 23. Just then, price briefly spiked to $0.55, before cooling to $0.27. Still dozens of times higher than seed round prices.

🐳 A Bitcoin whale dormant for 7 years just woke up… and dumped a massive $2.7B in $BTC.X ( ▼ 3.17% ) to go all-in on $ETH.X ( ▼ 0.76% ) . All this happened while BTC dipped to ~$112K, and ETH approached its ATH. Whale has now fully rotated into ETH spot + ETH futures. Just then, BTC crashed to $110,680 in 15 minutes. $560M in positions liquidated, mostly long BTC trades.

🚫 On-chain detective ZachXBT just released a list of 81 KOL/CT accounts known for constantly shilling presale meme coins, and then dumping on their followers. Basically: a who's-who of serial rug promoters. Take a moment to scroll through, you might spot a few familiar names you've followed or seen pop up in your feed.

🔥 CEO Star Xu officially announced a $100M X Layer Ecosystem Fund. OKX retired OKT and promoted OKB as the only gas + native token on X Layer. Right after the fund announcement, OKB jumped 10% overnight, from ~$195 to ~$214. But the rally didn’t last… Within 24 hours, OKB pulled back ~4% under pressure.

📰 Several issuers all just updated their S-1 filings for $XRP.X ( ▼ 4.79% ) ETFs. While VanEck filed for a new ETF for JitoSOL, the liquid staking token on Solana. So far, the SEC has only approved ETFs for BTC and ETH. Bloomberg now puts approval odds at: 95% for: XRP, $SOL.X ( ▼ 4.67% ) , $LTC.X ( ▼ 1.7% ) , and 90% for: $DOGE.X ( ▼ 2.38% ) , $ADA.X ( ▼ 3.51% ) , $DOT.X ( ▲ 0.45% ) , $HBAR.X ( ▼ 0.51% ) , $AVAX.X ( ▼ 2.52% )

🎯 Fed Cuts Incoming. But Will Crypto Really Pump?

Every time we hear "Fed", we can’t help but think of Trump yelling at Powell 7749 times: “Cut rates, just cut the damn rates!”

But if the Fed really cuts interest rates in September 2025… what happens next?

1️⃣ Will Prices Pump Right After the Rate Cut?

Everyone’s hyped. The chance of a Fed rate cut in September is now 87% on CME.

Many are assuming that once Powell hits the “cut” button, markets, especially crypto, will moon. But history tells a more complex story...

Rate cuts don’t always mean price goes up. Let’s rewind:

• 2001–2003 (Dotcom crash): Fed cut rates from 6.5% → 1% 👉 S&P 500 still dropped 33%

• 2007–2009 (Housing crisis): Fed cut rates from 5.25% → 0.25% 👉 S&P 500 still dropped 40%

So what's the takeaway? When the Fed cuts to fight a crisis, markets often still go down. Only preemptive or “soft landing” cuts - like in 1990, 1995, and 2019 - led to actual market rallies.

What about now? The coming rate cut is preventive, not reactive, and that’s a good sign. U.S. economy is still growing +3% last quarter.

• Unemployment is up slightly, but not at recession levels

• Inflation is cooling, now around 2.7%

So this cut could be more like 2019, a move to ease pressure before things break.

Yes, a rate cut might boost liquidity and support risk assets like crypto, similar to the 2019–2020 cycle. But don’t get too greedy too fast.

Crypto has already rallied hard since July, so a lot of the excitement might already be priced in ahead of the September decision.

2️⃣ Will We Get a Real Altcoin Season… or Just BTC & ETH Pumping?

Lots of people are asking: is this the start of a real altcoin season, or is it just BTC and ETH taking the spotlight?

Well... the signs are starting to line up. The data says altseason is warming up:

• Bitcoin Dominance (BTC.D) dropped from 65% → 58%

• Altcoin market cap is up 50% in just 2 months

• The Altcoin Season Index (CoinGlass) is at 57, once it crosses 75, we officially enter full-blown altseason

We’re moving through the 4 classic money-flow phases:

1. BTC pumps first ✅

2. ETH outpaces BTC ✅

3. Large-cap alts start surging ✅ (e.g. $LINK.X ( ▲ 1.67% ) just jumped 50%)

4. Small caps and meme coins go wild 🚫 (not yet)

ETH is leading the way. ETH just retested $4,788, right near its all-time high. Solana, ADA, XRP have all seen double-digit gains → Clear signal: capital is rotating from majors → alts

Why this altseason could be real (and strong):

• Institutional liquidity is growing fast → ETH ETF assets now top $30.58B, and climbing

• New narratives are driving attention
  → AI tokens, Real World Asset (RWA) tokenization
  → RWA especially could unlock massive new capital inflows

• DeFi is more optimized than in previous cycles:
  → Better UX
  → More compliant
  → More sustainable models

• Traditional finance is sitting on dry powder:
  → U.S. money market funds = $7.2 trillion, up 16% YoY
  → That’s capital stuck in low-yield assets, just waiting for a reason to rotate into risk-on plays like crypto

But we don’t think this will be a wild free-for-all like 2017 or 2021. Shitcoins are getting sidelined. Money will likely flow to projects that:

• Have real revenue

• Are legally sound

• Have strong narratives

Quality > Quantity this time. Don’t expect everything to pump. Focus on high-quality projects with traction, narrative, and compliance. That’s where the smart money’s going.

3️⃣ Important Warning After the Fed Rate Cut News

Everyone’s talking about the upside of a rate cut. But almost no one is asking the real question: What could crash the market right after a rate cut?

Here are 3 major risks we need to watch out for:

⚠️ Risk 1: Inflation pressure coming back

• PPI (Producer Price Index) for July 2025 jumped 0.9%, the biggest monthly increase since June 2022, way above the 0.2% forecast.

• This means input costs are rising again, and consumer prices may follow in the next few months.

• Also, core CPI (excluding food and energy) has stayed stubborn at 3% for over a year.
  → If inflation doesn’t cool, the Fed might pause rate cuts after September.

⚠️ Risk 2: USD strengthens again

• DXY (Dollar Index) has been dropping for 8 months, but it might rebound soon.

• Why? Global tensions: Trade wars + US–China–Russia conflicts
  → These can trigger a flight to safety, with capital flowing back to the USD.

• A strong dollar = bad news for crypto. Historically, crypto dumps when USD rallies.

⚠️ Risk 3: Economic slowdown — both US & China

In the U.S.:

• Fed rates have been above 4% for nearly 3 years → That’s enough to start hurting businesses.

• Unemployment is ticking up
  → Consumers are cutting back spending, especially on big-ticket items like housing.

In China:

• China is like a black swan, quiet, but when it moves, markets tremble.

• Right now, their macro situation is shaky:

  • Export struggles due to rising tariffs

  • Overproduction crisis: Local provinces race to produce more for political points, but domestic demand is weak

  • Result? Inventory builds up, layoffs increase, and consumer spending drops → a downward spiral

• The youth are "lying flat", refusing to overwork just to buy overpriced housing
  → With no homebuying demand, China’s real estate pillar is collapsing

China is a ticking time bomb, we need to watch this closely.

🤔 $HYPE is Pumping… But $15B to Unlock. Should You Hold or Not?

$HYPE.X ( ▼ 2.49% ) price is flying, but here's what we need to really watch:

• Over 388 million HYPE tokens - worth nearly $15 billion - are about to unlock.

• The project has pledged to allocate 97% of its revenue to buy back HYPE.

That sounds bullish, right? A huge buyback plan = price goes up? Maybe.

👉 Is this actually a trap, a setup to distribute HYPE to the public after price pumps?

1️⃣ Is the HYPE Airdrop Big Enough to Trigger a Real “Wealth Effect”?

Let’s talk numbers.

Most airdrops these days allocate around 5–15% of total supply to users. That’s become the norm. But Hyperliquid did something different:

• They dropped 31% of $HYPE.X ( ▼ 2.49% ) supply (310M tokens)

• Worth ~$14.6 billion in total

• With some users receiving up to $157K ATH, way higher than:

  • Arbitrum: 12.75%, ~$20K/user

  • Uniswap: 60%, ~$25K/user

According to a study by Delphi Digital, when users feel wealthier, they tend to reinvest 40–60% of their airdrop back into the project’s ecosystem - instead of just dumping and walking away.

That’s exactly what we’ve seen with $HYPE.X ( ▼ 2.49% ) :

• No massive -50% dump like ZK post-airdrop (-70%)

• Or Friendtech, which dropped 90% in 3 months (despite a 10% airdrop)

• Instead, $HYPE has been gaining steadily, thanks to users reinvesting into perps trading on the platform

Projects kickstart a “wealth loop” by:

• Giving users a large share of supply

• Encouraging holding + usage, not just claiming and dumping

• Leading to sustainable growth instead of short-term hype

But some projects may look generous on paper, but a big chunk of their airdrop often goes to VCs or insiders, not actual users. That’s why many of them still dump hard.

So always look closely at who’s receiving the airdrop, not just how big it is.

2️⃣ Is Hyperliquid’s Product Real or Just “Hype”?

🤡 Meme Of The Day

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The Crypto Fire

This newsletter is for informational purposes only and should not be considered investment advice. Traders should conduct thorough research, understand the risks, and carefully evaluate their decisions before investing in cryptocurrency.