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Buying Bitcoin vs gold: Which is easier for investors to purchase?

As gold prices break new highs, many Bitcoiners are seeking ways to obtain exposure to the precious metal, but have been met with hurdles along the way.

Although physical gold is accessible in the form of jewelry, gold bars and coins, many industry executives are concerned about aspects like its quality, liquidity when selling, and buying at a premium above spot prices.

Still, gold advocates are confident that the precious metal is much easier to buy than Bitcoin (BTC), given the complexities of storing private keys and a steep learning curve for new crypto investors.

Both Bitcoin and gold are available in the form of tokenized assets, exchange-traded funds (ETFs) and other equity instruments, but the question of owning these assets in their original form reveals some differences.

Community: Buying Bitcoin is easier and faster

“Buying Bitcoin is significantly easier and faster than buying physical gold,” Ross Shemeliak, co-founder of the tokenization platform Stobox, told Cointelegraph.

He referred to Bitcoin’s instant and 24/7 availability and no need for vaults, while gold is associated with additional costs like transportation, storage, verification and resale.

Adam Lowe, chief of product at the self-custodial wallet Arculus, agreed that buying physical gold is subject to many challenges and additional costs.

Gold, Investments, Finance, Inflation, Self Custody

“The first is maintaining quality, assuring the purity is accurate,” Lowe said, adding that investors have to rely on the reputation of dealers and the supply chain when buying physical gold.

Related: Bitcoin may rival gold as inflation hedge over next decade — Adam Back

“Selling liquidity is also an issue as you have to find a buyer and will most likely pay a discount relative to the market price per ounce,” he continued, adding that self-custodied Bitcoin has none of these issues.

As well as limited liquidity, retail investors in physical gold face widened spreads, Shemeliak said, as they often have to buy at a premium above the market price of gold.

Gold advocate: Bitcoin self-custody is not easy

Unlike crypto investors, traditional finance (TradFi) investors and analysts are not so excited about self-custody opportunities offered by Bitcoin.

“Bitcoin could be very easy to buy if you have everything set up already, but if you don’t, it’s very difficult,” Rafi Farber, publisher of the gold-focused marketplace service End Game Investor, told Cointelegraph.

Farber, who has emerged as one of the biggest Bitcoin critics, referred to investor challenges for Bitcoin self-custody, which requires holders to safely store their private key or risk losing access to the coins.

While dealing with a self-custodial wallet, users have to “remember a string of random words or copy it down and put it in a safe, then copy and paste a gibberish code,” Farber said. “And if you lose any of the codes or the power goes out for whatever reason you’re screwed.”

Gold, Investments, Finance, Inflation, Self CustodySelf-custody wallet providers offer onboarding sessions for $99 per hour. Source: Trezor

Farber’s concerns over the challenges of self-custody are not without merit. Trezor, one of the most prominent self-custody wallet providers, admits that usability remains one of the key issues faced by self-custodial wallets.

While some have tried to offer simplified self-custody options, others insist that holding a private key is the only way to actually own a cryptocurrency, which requires onboarding and a learning curve — but doesn’t come without its own costs.

Is Bitcoin a direct competitor to gold?

On the other hand, physical gold is “very easy to buy,” Farber said, suggesting options like coins or jewelry shops.

“Yes, buying a gold coin at a jewelry or coin shop is easy — but that doesn’t mean you’ve made a sound investment,” Stobox’s Shemeliak countered:

“Without verified origin, proper assay, secure storage, and a liquid resale market, you’ve likely bought a souvenir, not a serious store of value.”

“In contrast, digital assets like Bitcoin or tokenized gold offer transparency, liquidity and verifiability,” he added.

Shemeliak doesn’t see Bitcoin and gold as direct competitors.

“Gold will always have historical value, but Bitcoin is building financial infrastructure for the next 100 years,” he said.

At the time of publication, the price of spot gold stood at $3,327, up nearly 27% year-to-date (YTD) as it continues breaking new highs, according to TradingView.

The picture is less appealing for Bitcoin, which reached new highs around $110,000 in December 2024. Bitcoin is down 10% YTD, trading at $84,525 at publication, according to CoinGecko.

Magazine: Financial nihilism in crypto is over — It’s time to dream big again

Read more at cointelegraph.com

Astar reduces base staking rewards to curb inflation pressure

Blockchain firm Astar Network implemented changes to its tokenomics to reduce inflationary pressures in its ecosystem. 

On April 18, Astar Network announced that it reduced the blockchain’s base staking rewards to 10% from 25% to curb token inflation. 

The company said the change promotes a more stable annual percentage rate (APR) for users as staking inches closer to a more ideal ratio. The firm said this ensures that rewards “remain meaningful” without causing excessive inflation. 

“This change lowers automatic token issuance, reducing overall inflationary pressure while maintaining strong incentives for users to stake their ASTR,” Astar Network wrote. 

Astar reduces base staking rewards to curb inflation pressureAstar Network highlights key changes to its tokenomics. Source: Astar NetworkAstar Network implements inflation-control mechanisms

Unlike Bitcoin, which has a fixed total supply, the ASTR token operates under a dynamic inflation model without a cap on its maximum token supply. As the blockchain operates, it emits more tokens, increasing the supply. 

Having no fixed supply can often create downward pressure on the token’s value over time. This is especially true if the demand for the token does not keep up. To address this, Astar is introducing several new inflation-control mechanisms.

Apart from lowering staking rewards, Astar also started routing token emissions into a parameter that governs total value locked (TVL)-based rewards like decentralized application staking. This means that DApp staking APRs will become “more predictable” over time, offering stability to stakers. 

Astar also introduced a new minimum token emission threshold of 2.5% to ensure it doesn’t exceed a sustainable baseline. With continued transaction fee burning, Astar said it would also contribute to reward predictability. 

According to Astar, the changes have already lowered its annual inflation rate from 4.86% to 4.32%. It also lowered its total ASTR token emitted per block from 153.95 to 136.67 tokens. This reduces the token’s estimated annual emissions by 11%, going from 405 million to 360 million. 

Related: Sony’s Soneium taps EigenLayer to cut finality to under 10 seconds

Astar token hits all-time low on April 7

Astar Network’s efforts to curb token inflation come as its native token recently hit an all-time low. CoinGecko data shows that on April 7, the ASTR token declined to a new low of $0.02. The price is 93.8% lower than its peak three years ago, when it reached $0.42 on Jan. 17, 2022. 

In December 2024, the token rallied along with the rest of the market, hitting a high of $0.09. Since then, the crypto asset had continuously dropped in value before hitting the new all-time low. 

Astar reduces base staking rewards to curb inflation pressureAstar Network’s 1-year price chart. Source: CoinGecko

Magazine: Uni students crypto ‘grooming’ scandal, 67K scammed by fake women: Asia Express

Read more at cointelegraph.com

Bitcoin price volatility 'imminent' as speculators move 170K BTC — CryptoQuant

Bitcoin (BTC) speculators may spark “significant” BTC price volatility as a large tranche of coins moves onchain.

In one of its “Quicktake” blog posts on April 18, onchain analytics platform CryptoQuant warned that a Bitcoin market shake-up is due.

CryptoQuant: “Volatility is coming” for BTC price

Bitcoin short-term holders (STHs) are signaling that the current calm BTC price behavior may not last long.

CryptoQuant reveals that 170,000 BTC owned by entities with a purchase date between three and six months ago has begun to circulate.

“Around 170,000 BTC are moving from the 3–6 month holder cohort,” contributor Mignolet confirmed. 

“Large movements from this group often signal that significant volatility is imminent.”Bitcoin price volatility 'imminent' as speculators move 170K BTC — CryptoQuantBTC movements by 3-6 month hodler cohort (screenshot). Source: CryptoQuant

An accompanying chart shows the impact of previous STH events, with the latest being the largest by volume since late 2021. Price direction varies, with both upward and downward market responses visible.

“Volatility is coming,” Mignolet concluded.

Bitcoin speculators blamed for sell pressure

As Cointelegraph reported, STH entities are notoriously sensitive to snap market moves and transitive narratives.

Related: Bitcoin gold copycat move may top $150K as BTC stays ‘impressive

Recent BTC price downside has been met with episodes of panic selling by the cohort, which is defined as an entity buying up to six months previously.

Earlier this week, CryptoQuant listed STHs as one of the main sources of current Bitcoin selling pressure.

“Short-Term Holders (STH) have been the primary sellers, sending an average of ~930 BTC/day to exchanges,” fellow contributor Crazzyblockk wrote in a separate Quicktake post. 

“In contrast, Long-Term Holders (LTH) only moved about ~529 BTC/day — highlighting short-term fear or profit-taking, while long-term conviction remains intact.”Bitcoin price volatility 'imminent' as speculators move 170K BTC — CryptoQuantBitcoin investor flow comparison (screenshot). Source: CryptoQuant

Crazzyblockk described a “classic shakeout” occurring in Bitcoin, while allaying concerns over a uniform rush for the exit across the investor spectrum.

“With Bitcoin trading sideways and volatility compressing, this cohort-driven breakdown helps us understand that the current correction is not a mass exodus by smart money — it’s more likely a reaction from nervous short-term and mid-tier holders,” the post said.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Read more at cointelegraph.com

Spar supermarket in Switzerland starts accepting Bitcoin payments

Global grocery giant Spar has rolled out Bitcoin-based payments in a Swiss city, marking another step in the growing adoption of cryptocurrency for everyday transactions.

A Spar supermarket in Zug, Switzerland, has implemented Bitcoin (BTC) payments via the Lightning Network.

The store’s Bitcoin payments went live on BTC Map, a community-driven project highlighting stores that accept BTC payments, DFX Swiss, a crypto-to-fiat payment solution firm, announced in an April 17 LinkedIn post.

“This SPAR location is among the first supermarkets in Switzerland where you can pay directly at the checkout using Bitcoin (via LNURL), thanks to our new hashtag#OpenCryptoPay solution, an open P2P standard for in-person crypto payments,” DFX said.

Spar supermarket in Switzerland starts accepting Bitcoin paymentsSpar in Zug adopts Bitcoin payment, announcement. Source: DFX Swiss

Switzerland has long been regarded as one of the more crypto-friendly European jurisdictions with some of the earliest crypto-adoption initiatives.

In 2023, the Swiss city of Lugano adopted Bitcoin and Tether USDt (USDT) payments for all municipal fees, one of the world’s first city administrations to do so.

There are currently 1,013 stores and businesses accepting Bitcoin payments in Switzerland, according to BTCmap data.

Spar supermarket in Switzerland starts accepting Bitcoin paymentsBusinesses accepting Bitcoin payment in Switzerland, Europe. Source: BTCmap

Related: ‘Bitcoin Standard’ author to develop Austrian economics curriculum for UK school

Bitcoin adoption among retail giants with a global presence may increase mainstream trust in cryptocurrency payments.

Spar operates over 13,900 stores across 48 countries, with over 14.7 million daily shoppers and 450,000 employees worldwide.

Related: Crypto, stocks enter ‘new phase of trade war’ as US-China tensions rise

Spar in Zug enables seamless Bitcoin payment via QR code

Friction points and complicated user experience are often criticized as some of the biggest hurdles limiting mainstream blockchain adoption.

However, Spar’s Bitcoin implementation enables easy payments by scanning a simple quick-response (QR) code, according to Rahim Taghizadegan, a university lecturer and director of Bitcoin Association Switzerland.

In an April 16 LinkedIn post, he outlined how simple it is to pay using BTC in Spar:

“Just scan a static QR code, send sats, immediate and easy registration by the cashier. If enough people use it, it may be rolled out in the whole country. “

“I used Phoenix Wallet for [the Lightning Network], but pretty much anything works,” he added.

Spar supermarket in Switzerland starts accepting Bitcoin paymentsBitcoin payment in Spar, Zug, Switzerland. Source: Rahim Taghizadegan

Increasingly more companies are adopting cryptocurrency in the country. Switzerland-based blockchain ecosystem Crypto Valley surpassed $593 billion in valuation in 2024 after a 55% yearly increase, Cointelegraph reported on Jan. 21.

Spar supermarket in Switzerland starts accepting Bitcoin paymentsCrypto Valley Unicorns. Source: CvVc.com

Among the 50 regional entities, 17 have reached unicorn status, with a $1 billion or more valuation.

“A Swiss industry where the Top 50 entities share a valuation of $593 billion and whose funding medians exceed global medians reflects vision and resilience,” Mathias Ruch, founder and CEO of CV VC, told Cointelegraph.

Spar supermarket in Switzerland starts accepting Bitcoin paymentsTop 50 projects in Crypto Valley. Source: CvVc.com

Some of Crypto Valley’s well-known projects include the layer-1 (L1) blockchain network Ethereum, Cardano and the Casper blockchain.

Magazine: BTC’s ‘reasonable’ $180K target, NFTs plunge in 2024, and more: Hodler’s Digest Jan 12 – 18

Read more at cointelegraph.com

KiloEX exchange exploiter returns $5.5M days after $7.5M hack

The hacker behind the $7.5 million KiloEx exploit returned $5.5 million worth of cryptocurrency four days after the attack.

Decentralized exchange (DEX) KiloEx suspended platform operations after suffering a $7.5 million exploit, Cointelegraph reported on April 15.

In a surprising turn of events, the wallet address behind the exploit has returned $5.5 million worth of cryptocurrency to the DEX. 

KiloEX exchange exploiter returns $5.5M days after $7.5M hackKiloEX exploiter returns $5.5m. Source: PeckShieldAlert

“#KiloEx exploiter -labeled addresses have returned ~$5.5M worth of cryptos to #KiloEx,” according to an April 18 X post from blockchain security platform PeckShieldAlert.

Related: Mantra OM token crash exposes ‘critical’ liquidity issues in crypto

The unexpected repayment occurred after KiloEx offered the hacker a $750,000 “white hat” bounty — 10% of the stolen amount — if they returned 90% of the looted assets.

The platform said it was working with law enforcement and cybersecurity firms, including Seal-911, SlowMist and Sherlock, to uncover more about the hacker’s activity and identity.

The initial attack may have been caused due to a “price oracle issue,” where the information used by a smart contract to determine the price of an asset is manipulated or inaccurate, leading to the exploit, PeckShield said in an April 14 X post.

Related: Top 100 DeFi Hacks: Offchain attack vectors account for 57% of losses

This is a developing story, and further information will be added as it becomes available.

Read more at cointelegraph.com

KiloEx exchange exploiter returns all stolen funds after $7.5M hack

A hacker behind the $7.5 million KiloEx exploit returned all the stolen funds four days after the attack.

Decentralized exchange (DEX) KiloEx had suspended platform operations after suffering the $7.5 million exploit, Cointelegraph reported on April 15.

In a surprising turn of events, the wallet address behind the exploit has returned all of the stolen cryptocurrency loot to the DEX. 

“#KiloEx exploiter -labeled addresses have returned ~$5.5M worth of cryptos to #KiloEx,” according to an April 18 X post from blockchain security platform PeckShieldAlert.

Minutes after the transfer occurred, KiloEx announced the full recovery of all the stolen funds, the exchange wrote in an April 18 X post.

Cryptocurrencies, Smart Contracts, Hackers, Cryptocurrency Exchange, Cybercrime, Crimes, Cybersecurity, Scams, Hacks, Decentralized Exchange, Web3, Cryptocurrency InvestmentSource: KiloEx

The unexpected repayment occurred after KiloEx offered the hacker a $750,000 “white hat” bounty — 10% of the stolen amount — if they returned 90% of the looted assets.

Related: Mantra OM token crash exposes ‘critical’ liquidity issues in crypto

The platform said it was working with law enforcement and cybersecurity firms, including Seal-911, SlowMist and Sherlock, to uncover more about the hacker’s activity and identity.

The initial attack may have been caused due to a “price oracle issue,” where the information used by a smart contract to determine the price of an asset is manipulated or inaccurate, leading to the exploit, PeckShield said in an April 14 X post.

Related: Top 100 DeFi Hacks: Offchain attack vectors account for 57% of losses

KiloEx won’t pursue legal charges after asset recovery

Following the recovery of the funds, the platform will not be pursuing any legal charges against the attacker, KiloEx said:

“The legal process to formally close the case is now underway […]. With all affected funds fully restored (leaving no victims), we are fulfilling our pledge to resolve this matter fairly and transparently.”

“In adherence to our agreement, we will award 10% of the recovered amount as a bounty to the white hat involved, recognizing their contribution to improving our platform’s security,” KiloEx added.

White hat hackers, also known as ethical hackers, look for infrastructure vulnerabilities to avoid future exploits.

The necessity of improved crypto security measures was highlighted on Feb. 21, when Bybit exchange lost over $1.4 billion, marking the largest hack in crypto history.

Magazine: Uni students crypto ‘grooming’ scandal, 67K scammed by fake women: Asia Express

Read more at cointelegraph.com

Hashkey takes aim at XRP ETF in Asia with new fund backed by Ripple

Hong Kong-based crypto investment firm HashKey Capital announced the launch of an XRP fund, with plans to convert it into an exchange-traded fund (ETF) in the future.

According to an April 18 announcement, the fund, officially titled the HashKey XRP Tracker Fund, is reportedly “the first investment fund in Asia designed to track the performance of XRP.”

XRP developer Ripple will serve as the fund’s anchor investor. In a separate X post, HashKey Capital said the fund aims to bring “more institutional capital into regulated XRP products and the broader digital asset ecosystem.”

Close collaboration with Ripple

In another X post, HashKey Capital said the fund marks the beginning of a closer collaboration with Ripple. The two firms “are exploring new investment products, cross-border DeFi solutions, and tokenization —including the possibility of launching a money market fund (MMF) on the XRP ledger.”

Related: Ripple vs. XRP vs. XRP Ledger: What’s the difference?

In the announcement, HashKey Capital partner Vivien Wong said the firm will share its connections with financial institutions, regulators and investors in Asia with Ripple, adding:

“Ripple offers us the opportunity to collaborate on more investment products and solutions across cross-border payment solutions, decentralized finance (DeFi), and enterprise blockchain adoption.”A Hong Kong XRP ETF in the works?

The XRP (XRP) Tracker Fund is HashKey Capital’s third tracker fund and follows the firm’s Bitcoin (BTC) and Ether (ETH) ETF products. The company noted that this product may also become an ETF in the future.

Hashkey takes aim at XRP ETF in Asia with new fund backed by RippleSource: HashKey Capital

Related: XRP: Why it’s outperforming altcoins — and what comes next

A boon for XRP’s institutional adoption in Asia

Hank Huang, CEO of Kronos Research, a crypto investment firm based in Asia, told Cointelegraph that “the launch of the XRP Tracker Fund by HashKey Capital marks a pivotal moment for institutional adoption” in the region. He said regulated and transparent products like Hashkey’s fund are what institutional investors need to enter the market.

“XRP’s proven use case in cross-border payments, combined with HashKey’s robust infrastructure, sets the stage for meaningful capital inflows and wider acceptance of crypto assets in global finance,“ Huang said.

Magazine: XRP win leaves Ripple and industry with no crypto legal precedent set

Read more at cointelegraph.com

Altcoins may rally in Q2 2025 thanks to improved regulations: Sygnum

Altcoins may see a resurgence in the second quarter of 2025 as regulations for digital assets continue to improve, according to Swiss bank Sygnum.

In its Q2 2025 investment outlook, Sygnum said the space has seen “drastically improved” regulations for crypto use cases, creating the foundations for a strong alt-sector rally for the second quarter. However, it added that “none of the positive developments have been priced in.” 

In April, Bitcoin dominance reached a four-year high, signaling that crypto investors are rotating their funds into an asset perceived to be relatively safer. 

Still, Sygnum said regulatory developments in the US, such as President Donald Trump’s establishment of a Digital Asset Stockpile and advancing stablecoin regulations, may propel broader crypto adoption.

“We expect protocols successful in gaining user traction to outperform and Bitcoin’s dominance to decline,” Sygnum wrote. 

Increased focus on economic value ignites competition

Sygnum also said that competition would increase as the market focuses on economic value. Increased competition in a market often results in better products, ultimately benefiting consumers: 

“The market’s increased focus on economic value compels greater competition for user growth and revenues, with rising protocols such as Toncoin, Sui, Aptos, Sonic, or Berachain taking different approaches.”

Sygnum added that while high-performance blockchains address limitations of the Bitcoin, Ethereum and Solana blockchains, they find it challenging to achieve meaningful adoption and fee income. 

Altcoins may rally in Q2 2025 thanks to improved regulations: SygnumSector breakdown by market capitalization. Source: Sygnum

The report highlighted that some approaches have been more sustainable. These include Berachain’s approach of incentivizing validators to provide liquidity to decentralized finance (DeFi) applications, Sonic’s rewarding developers that attract and retain users, and Toncoin’s Telegram affiliation to access 1 billion users.

Aside from layer-1 chains, Sygnum highlighted that layer-2 networks like Base also have potential. The report pointed out that while the memecoin frenzy on the blockchain pushed its users and revenue to new highs, it made an equally sharp decline after memecoins started losing steam. 

Despite this, Sygnum noted that Base remains the layer-2 leader in metrics like daily transactions, throughput and total value locked. 

Related: Italy finance minister warns US stablecoins pose bigger threat than tariffs

Memecoins still a leading crypto narrative in Q1

Despite recent price declines, memecoins remained a dominant crypto narrative in Q1 2025. A CoinGecko report recently highlighted that memecoins remained dominant as a crypto narrative in the first quarter of 2025. The crypto data company said memecoins had 27.1% of global investor interest, second only to artificial intelligence tokens, which had 35.7%.

While retail investors are still busy with memecoins, institutions have a different approach. Asset manager Bitwise reported on April 14 that publicly traded firms are stacking Bitcoin. At least 12 public companies purchased Bitcoin for the first time in Q1 2025, pushing public firm holdings to $57 billion.

Magazine: Uni students crypto ‘grooming’ scandal, 67K scammed by fake women: Asia Express

Read more at cointelegraph.com

Crypto rug pulls have slowed, but are now more devastating: DappRadar

There has been a 66% year-on-year decrease in the number of crypto rug pulls this year compared to 2024, but recent data shows the size of each rug pull has been increasing.

Rug pulls have dropped in frequency year-over-year, with early 2024 recording 21 separate incidents, compared to only seven so far in 2025, according to an April 16 report from blockchain analytics platform DappRadar.

However, since the beginning of 2025, the Web3 ecosystem has lost nearly $6 billion to rug pulls, according to DappRadar’s report. However, the report attributes 92% of that to Mantra’s OM token collapse, which the founders have strongly denied was a rug pull.

In comparison, during the same period in early 2024, three months into the year, total losses from rug pulls hit $90 million.

“This shift suggests that rug pulls are becoming less frequent, but far more devastating when they do occur,” DappRadar analyst Sara Gherghelas said. 

“The scams are increasingly sophisticated, often orchestrated by teams with polished branding and well-planned narratives.”Memecoins main culprit for rug pulls 

Gherghelas says the nature of rug pulls is evolving. In the first quarter of 2024, most originated in DeFi protocols, NFT projects, and memecoins. In the same time frame for 2025, most rug pulls occurred in memecoins.

Libertad project’s native Solana token, Libra (LIBRA), is one of the more recent high-profile cases of a rug pull; it rallied to a market capitalization of $4.56 billion on Feb. 14 after Argentina’s president, Javier Milei, posted about it on X.

The token then fell by over 94% after he deleted the post, prompting accusations of a pump-and-dump scheme

“Rug pulls and exit scams remain a persistent threat, especially in ecosystems where projects can rapidly gain traction through hype, only to disappear with user funds overnight,” Gherghelas said.

“Despite increasing awareness and more tools to detect suspicious behavior, rug pulls remain a recurring issue, particularly in DeFi and newly launched token ecosystems.”

Gherghelas says red flags for rug pulls can include a sudden spike in unique active wallets without an apparent reason or unusually high volume paired with low user activity.

Cryptocurrencies, Scams, Memecoin, Rug PullsDappRadar analyst Sara Gherghelas says several red flags could signal a project is a rug pull. Source: DappRadar

At the same time, projects with unverified smart contracts, limited GitHub activity, or anonymous developer teams or DApps that spike overnight can also be a red flag.

Related: Savvy memecoin trader makes $988K in 3 hours despite rug pull

“As the industry matures, so do the tactics used by bad actors. But the tools available to users are also getting stronger,” Gherghelas said.

“While rug pulls may never be fully eradicated, their impact can be drastically reduced when users are equipped with the right information.”  

Magazine: Mystery celeb memecoin scam factory, HK firm dumps Bitcoin: Asia Express

Read more at cointelegraph.com

Crypto rug pulls have slowed, but are now more devastating: DappRadar

There has been a 66% year-on-year decrease in the number of crypto rug pulls this year compared to 2024, but recent data shows the size of each rug pull has been increasing.

Rug pulls have dropped in frequency year-over-year, with early 2024 recording 21 separate incidents, compared to only seven so far in 2025, according to an April 16 report from blockchain analytics platform DappRadar.

However, since the beginning of 2025, the Web3 ecosystem has lost nearly $6 billion to rug pulls, according to DappRadar’s report. However, the report attributes 92% of that to Mantra’s OM token collapse, which the founders have strongly denied was a rug pull.

In comparison, during the same period in early 2024, three months into the year, total losses from rug pulls hit $90 million.

“This shift suggests that rug pulls are becoming less frequent, but far more devastating when they do occur,” DappRadar analyst Sara Gherghelas said. 

“The scams are increasingly sophisticated, often orchestrated by teams with polished branding and well-planned narratives.”Memecoins main culprit for rug pulls 

Gherghelas says the nature of rug pulls is evolving. In the first quarter of 2024, most originated in DeFi protocols, NFT projects, and memecoins. In the same time frame for 2025, most rug pulls occurred in memecoins.

Libertad project’s native Solana token, Libra (LIBRA), is one of the more recent high-profile cases of a rug pull; it rallied to a market capitalization of $4.56 billion on Feb. 14 after Argentina’s president, Javier Milei, posted about it on X.

The token then fell by over 94% after he deleted the post, prompting accusations of a pump-and-dump scheme

“Rug pulls and exit scams remain a persistent threat, especially in ecosystems where projects can rapidly gain traction through hype, only to disappear with user funds overnight,” Gherghelas said.

“Despite increasing awareness and more tools to detect suspicious behavior, rug pulls remain a recurring issue, particularly in DeFi and newly launched token ecosystems.”

Gherghelas says red flags for rug pulls can include a sudden spike in unique active wallets without an apparent reason or unusually high volume paired with low user activity.

Cryptocurrencies, Scams, Memecoin, Rug PullsDappRadar analyst Sara Gherghelas says several red flags could signal a project is a rug pull. Source: DappRadar

At the same time, projects with unverified smart contracts, limited GitHub activity, or anonymous developer teams or DApps that spike overnight can also be a red flag.

Related: Savvy memecoin trader makes $988K in 3 hours despite rug pull

“As the industry matures, so do the tactics used by bad actors. But the tools available to users are also getting stronger,” Gherghelas said.

“While rug pulls may never be fully eradicated, their impact can be drastically reduced when users are equipped with the right information.”  

Magazine: Mystery celeb memecoin scam factory, HK firm dumps Bitcoin: Asia Express

Read more at cointelegraph.com