Hey crypto addicts,

The crypto market is starting the day with another major DeFi security incident, this time involving Cronos and the Tectonic lending protocol.

An exploit targeting Tectonic's low-liquidity TONIC token reportedly allowed an attacker to manipulate its price by roughly 100x before using the inflated tokens as collateral to borrow other assets. The estimated value involved reached around $75 million, sending another reminder of just how quickly vulnerabilities in DeFi can escalate.

Cronos responded by halting its blockchain, helping prevent most of the affected funds from being moved further. Around $6 million reportedly made its way onto Ethereum before the halt, while Crypto.com's centralized exchange and app were not affected.

The incident puts renewed attention on liquidity, oracle mechanisms and collateral systems across DeFi. As the industry continues pushing toward greater adoption, security remains one of the biggest hurdles standing between crypto infrastructure and mainstream finance.☕

What we’ve covered for you today:

Russia is preparing to bring a significant portion of its crypto market into the regulated financial system, with estimates suggesting regulated crypto trading could reach as much as $46.4 billion during its first year. The forecast represents roughly 20% of the country’s current annual crypto transaction activity, with volumes potentially climbing toward $87 billion by 2029.

The new framework is expected to take effect on September 1, allowing approved intermediaries to facilitate crypto trading while introducing restrictions for retail investors. Non-qualified investors will face annual purchase limits of 300,000 rubles per intermediary, while Bitcoin, Ethereum and USDT are among the assets proposed for regulated trading.

The move could mark a major shift in Russia’s relationship with crypto, bringing billions of dollars of activity into a more formal market while still leaving a substantial portion of trading outside the regulated system. ☕

Crypto is moving into a new phase where the biggest challenges are no longer just about price action. Bitcoin is now preparing for a potential threat from quantum computing, while the broader industry continues making major changes to strengthen network security and token economics.

Bitcoin developers are exploring new defenses against quantum attacks that could eventually threaten older cryptographic systems. At the same time, Solana validators have agreed to cancel 18.9 million SOL, reducing the amount of supply that could otherwise enter circulation and potentially helping address long-term inflation concerns.

Meanwhile, institutional confidence in Bitcoin remains strong, with Bernstein maintaining a bullish outlook and projecting that Bitcoin could eventually reach $500,000 during this cycle.

Taken together, these developments highlight how quickly the crypto landscape is evolving. From quantum-resistant infrastructure to changing token supply dynamics and increasingly bullish institutional forecasts, the next phase of the market could be shaped by much more than price alone.☕

Ripple is strengthening its push into institutional tokenization by hiring Joseph Thompson, the London Metal Exchange’s head of treasury, to join its trading and markets team. Thompson brings nearly a decade of experience at the LME, along with previous roles at Deutsche Bank, ICAP and LCH, giving Ripple additional expertise in liquidity, collateral, risk management, and traditional financial markets.

The appointment comes as Ripple continues expanding its tokenization infrastructure across funds, bonds, securities, and other real-world assets. The company has also been investing in firms focused on areas such as asset issuance, transfer agency services, and collateral management, suggesting a broader strategy to build the infrastructure needed for institutional assets to move onchain.

While the hire does not confirm any new commodity tokenization product or direct connection between Ripple and LME metals, it highlights the company's efforts to bring traditional financial expertise into its digital asset strategy. As tokenized assets become a larger part of institutional finance, Ripple is positioning itself to compete for a bigger role in the emerging onchain capital markets .☕

The latest Hodler’s Digest highlights several major developments across crypto, including Bitcoin’s growing focus on defending against potential quantum-computing threats, which could eventually challenge the security of older cryptographic systems. The report also covers $189 million worth of Solana that was reportedly canceled or removed from circulation.

Polygon has disclosed several security vulnerabilities in its proof-of-stake network that were proactively fixed through the recent Austin and Kyoto hard forks. The issues affected its Bor and Heimdall clients and included denial-of-service risks, validator resource exhaustion, and flaws that could have disrupted network processing.

The latest Hodler’s Digest highlights several major developments across the crypto market, with Bitcoin moving toward stronger defenses against potential quantum-computing threats. The update also covers Solana validators agreeing to cancel 18.9 million SOL to reduce inflation, while investment firm Bernstein maintains a bullish outlook

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