Crypto Morning Report: Backpack plans to offer equity to stakers, WLFI reports USD1 was attacked

Ethereum Foundation Establishes DeFi Team to Support New Protocol Development, Reaffirms Belief in “DeFipunk” Philosophy

Author: Shen Chao TechFlow

Yesterday’s Market Dynamics

US Media: Trump Administration Considers Imposing New National Security Tariffs on Six Major Industries, Including Batteries, Pig Iron, and Iron Accessories

According to The Wall Street Journal, the Trump administration is considering imposing new “national security tariffs” on six industries. Sources familiar with the matter indicate that the scope of these tariffs may include large batteries, pig iron and iron fittings, plastic pipes, industrial chemicals, and power grid and telecommunications equipment. These tariffs would be levied under Section 232 of the Trade Expansion Act of 1962. The new tariffs on the six industries will be implemented separately from the new global 15% tariff. It is currently unclear when the Department of Commerce’s investigation into these tariffs will be announced or when they will be enacted. Section 232 requires a lengthy investigation before tariffs are imposed, but once implemented, the president can unilaterally modify them.

US Trade Representative: After Supreme Court Ruling on Tariffs, US Bilateral Trade Agreements Remain Valid

According to Jin10, U.S. Trade Representative Katherine Tai stated on CBS’s “Face the Nation” on Sunday that agreements with the EU, South Korea, and other countries remain in effect. She attempted to distinguish these agreements from the 15% global tariff plan announced by Trump on Saturday. Tai said, “We want them to understand that these deals will be successful. We fully support these deals. We also expect our partners to support them.” She also mentioned that other US trade measures, including investigations into trade practices of other countries, will give the US an advantage. She has spoken with EU officials this weekend and will also communicate with officials from other major US trade partners to reassure them.

WLFI Response: Attackers Compromised WLFI Co-Founder Accounts to Spread FUD and Short En Masse, Attack Failed

World Liberty Financial announced on social media:

"Earlier this morning, a coordinated attack targeted USD1. Attackers compromised multiple WLFI co-founders’ accounts, hired KOLs to spread panic, and opened large short positions on WLFI, attempting to profit from this artificially created chaos.

However, the attack was unsuccessful.

Thanks to USD1’s robust minting and redemption mechanism and full 1:1 asset backing, USD1’s trading price has remained stable at par. No fraudster can shake the long-term commitment of the entire WLFI team and co-founders to USD1.

Reminder: Please only obtain accurate information through verified official channels."

Meme Coin TRUMP Team Plans to Allocate Up to 5% of Tokens for Ecosystem Growth

According to official sources, the Meme coin TRUMP team announced the next phase of development, focusing on increasing market liquidity depth, expanding application scenarios, and driving long-term value growth through disciplined capital operations. Based on community feedback, the project will simultaneously advance profit-sharing and liquidity plans, institutional-grade market structure optimization, and strategic inventory management to improve trading quality and strengthen the ecosystem.

In terms of liquidity, holders will soon be able to participate in yield programs via Kamino Vaults, earning TRUMP and stablecoin rewards, with incentives exceeding $10 million to support on-chain liquidity and DEX capital efficiency. Additionally, new professional market makers will enhance liquidity support in centralized and decentralized markets, improving price discovery and trade execution stability.

Furthermore, TRUMP will strategically unlock up to 5% of the total supply over the coming months according to the token unlock schedule, for ecosystem investment, partnerships, and growth initiatives. This includes up to $3.5 million in ecosystem funds, potential acquisitions and collaborations, and entertainment and gaming projects led by The TRUMP Game Studio, starting with the Web3 game TRUMP Billionaires Club.

Bitdeer Responds to Bitcoin Sale Decision: Preparing Liquidity for Land Acquisition, Hashrate Growth Plan Unchanged

Wu Jihan’s Bitcoin mining company Bitdeer (BTDR) stated, “The decision to sell Bitcoin should not cause market concern. It aims to prepare liquidity in advance for several non-binding land acquisition opportunities currently under evaluation. The company emphasizes that hashrate will continue to grow and will persist in mining for shareholders’ benefit.”

Ethereum Foundation Establishes DeFi Team to Support New Protocol Development, Reaffirms Belief in “DeFipunk” Philosophy

According to The Block, the Ethereum Foundation is establishing a dedicated DeFi department within its application relations team to support new protocol development. The foundation appointed Charles St. Louis, former CEO of DELV and MakerDAO governance architect, as DeFi protocol expert, and Ivan (ivangbi), co-founder of Gearbox Protocol, as DeFi coordinator.

The Ethereum Foundation stated: “We want to see DeFi thrive, but we hold a clear view of what it should look like: permissionless, censorship-resistant, privacy-first, self-custodied, and open source.” St. Louis added on X: “The Ethereum Foundation believes in DeFipunk: not just better-than-traditional finance, but finance that cannot exist without Ethereum.”

The team will support existing DeFi projects and focus on ‘Tomorrow’s DeFi,’ including user-controlled AI and high-throughput on-chain futures markets and other innovations.

Backpack Plans to Offer Company Equity to Token Stakers, With 20% of Equity Reserved

According to Decrypt, cryptocurrency exchange Backpack plans to allow its upcoming token holders to earn company equity through staking. CEO Armani Ferrante announced on social media that users staking the token for at least one year can exchange it for company equity at a fixed ratio. The company has already reserved 20% of its equity for this plan.

Ferrante explained that this move aims to improve the current model, as many projects have failed to fulfill promises supporting utility-only tokens. The token issuance date has not yet been announced, but users are required to verify their identity to qualify.

Tether Announces Suspension of Support for Offshore RMB Stablecoin CNH₮

On February 21, Tether announced that it will gradually cease support for its CNH₮ stablecoin starting February 20, 2026. From now on, Tether has stopped issuing new CNH₮ tokens and will fully terminate redemptions after one year.

This decision is based on market condition changes, low product interest, and limited community demand relative to other assets. Holders of CNH₮ are advised to redeem their assets promptly before the redemption deadline.

Shanghai Financial and Development Laboratory Director: RWA Tokens and Virtual Currencies Are First Differentiated by Regulators and Not Mandated to Be Fully Decentralized

Caixin published an article titled “Strict Regulation of Offshore RWA,” where Director and Chief Expert Zeng Gang of the Shanghai Financial and Development Laboratory stated that the joint issuance of No. 42 document by eight departments adopts a “prohibition within China, strict regulation abroad” regulatory framework, marking the first time RWA tokens are distinguished from virtual currencies. The China Securities Regulatory Commission (CSRC) regards “asset-backed securities tokens” as the first operational RWA type, opening a specific path for compliant offshore issuance by domestic enterprises. The regulators do not deny the potential value of RWA tokens as a new financing tool but emphasize risk prevention. The No. 42 document highlights the use of “cryptographic technology and distributed ledger or similar technology” and does not require full decentralization. The core principle is: offshore issuance must ensure that domestic entities do not engage in token trading, and cross-border fund inflows must go through compliant channels. An issuance event reporting mechanism must be established to report major issues to the China Securities Regulatory Commission in a timely manner.

US Private Credit Giant Blue Owl Capital Announces Sale of Approximately $1.4 Billion in Loan Assets

According to CoinDesk, US private credit giant Blue Owl Capital announced the sale of about $1.4 billion in loan assets to meet redemption demands from investors in its retail-oriented private credit fund. The fund (Blue Owl Capital Corp II) will return approximately 30% of its net asset value (NAV) to qualified investors, with the sale price at 99.7% of face value. As a result, Blue Owl’s stock (OWL) fell nearly 15% this week, with a year-to-date decline exceeding 50%. Shares of other private equity firms like Blackstone, Apollo Global, and Ares Management also declined significantly.

Experts compare this to the “canary in the coal mine” signals before the 2007 financial crisis (such as the collapse of Bear Stearns hedge funds), warning that excessive expansion in private credit markets—especially AI-related investments—could trigger systemic risks, credit crunches, and contagion among banks. If pressures force central banks to cut interest rates and inject liquidity, it could recreate the post-2020 pandemic scenario, fueling Bitcoin and crypto markets and driving the next bull run.

SBI Holdings Launches 10 Billion Yen On-Chain Bonds Rewarded with XRP

According to CoinDesk, Japanese financial giant SBI Holdings announced the issuance of “SBI START Bonds,” a 10 billion yen (about $64.5 million) on-chain bond targeted at retail investors, issued, managed, and settled entirely on the blockchain platform “ibet for Fin.” Qualified investors (holding SBI VC Trade accounts and investing over 100,000 yen) can receive XRP rewards equivalent to their investment at issuance and during subsequent interest payment dates (until 2029), with 200 yen worth of XRP per 100,000 yen invested. The three-year bond offers a fixed rate, with secondary trading starting on March 25, 2026, at Osaka Digital Exchange.

Market Dynamics

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