Kate Irwin

This is a segment from The Drop newsletter. To read full editions,&nbsp;<a href="https://blockworks.co/newsletter/thedrop" target="_blank" rel="noreferrer noopener">subscribe</a>.&nbsp;



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Have you ever felt ashamed selling off a large sum of tokens for fiat currency? Or does it just feel good to take profits? Shaming others for their exits has become a thing on Crypto Twitter this week. So much so, in fact, that some traders have started calling the movement “ShameFi.”



ShameFi as a trend originated from the Kaito token claiming event, which happened this week and left some X users with piles of tokens worth hundreds of dollars for just a handful of tweets (like me). Others got six-figure sums—and promptly traded those Kaito tokens for cash.&nbsp;



Nansen AI CEO Alex Svanevik is one of a few crypto executives outing Kaito sellers on Twitter. He’s been posting <a href="https://x.com/ASvanevik/status/1892725012634673432">links</a> to Nansen charts, showing that Ethereum activist Anthony Sassano is among Kaito’s biggest sellers, among others. “NO MORE YAPS FOR YOU—NOT ALIGNED,” he <a href="https://x.com/ASvanevik/status/1892550491868897664">wrote</a> in one post in all-caps.



Crypto exchange <a href="https://x.com/arkham/status/1892626578015768863">Arkam</a> and Head of Base and Coinbase Wallet Jesse Pollack have also been outing or “shaming” Kaito sellers (Kaito’s token is on Base).



“I think it’s lame to celebrate immediately divesting of long term builders who are rewarding us for our contributions and using tokens to bring us in as cobuilders,” Pollack <a href="https://x.com/ChartFuMonkey/status/1892588286624837759">said</a> in response to a tweet from NFT influencer and Dastan President Farokh Sarmad, who sold his tokens and thanked the team for the “stimmy.”



“I think it&#8217;s net-negative for our culture to celebrate short-term, mindset-driven selling,” Pollack <a href="https://x.com/jessepollak/status/1892709649033609443">wrote</a> in a separate post on Thursday.



Later, he <a href="https://x.com/jessepollak/status/1892648601593250254">clarified</a> his stance: “It&#8217;s fine to sell your airdrop. Taxes, rent, bills, making your life better. All good and all within your rights. Economic freedom. What I think is less positive is celebrating selling immediately. Particularly over the last 12 months, CT and this space has increasingly focused on who can make money fastest.”



Others, like Web3 builder Jordan Feinstein, don’t believe in ShameFi as it’s not an effective tactic to actually get would-be sellers to believe in what you’re building.



“Shamefi is the dumbest fucking thing I&#8217;ve ever heard of in this space. For real. If you don&#8217;t want people to sell your token, they need to believe there&#8217;s more upside to holding it than selling it. If they don&#8217;t believe that, IT&#8217;S ON YOU, not them,” he <a href="https://x.com/JordanEureka_/status/1892617172008202268">wrote</a>.



My two cents? Crypto is such a high-risk, volatile space, that you have to do what’s right for your financial situation. There’s no one-size-fits-all answer as to whether you should sell something immediately or risk waiting something out.&nbsp;



I’m not trying to play the long game with Kaito—and I’m not that much of a yapper—so I swapped the tokens I got for Bitcoin. Kaito’s been pumping since. Oh well.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Start your day with top crypto insights from David Canellis and Katherine Ross. <a href="https://blockworks.co/newsletter/empire">Subscribe to the Empire newsletter</a>.



Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. <a href="https://blockworks.co/newsletter/onthemargin">Subscribe to the Forward Guidance newsletter</a>.



Get alpha directly in your inbox with the <a href="https://blockworks.co/newsletter/research">0xResearch newsletter</a> — market highlights, charts, degen trade ideas, governance updates, and more.



The Lightspeed newsletter is all things Solana, in your inbox, every day. <a href="https://blockworks.co/newsletter/lightspeed">Subscribe to daily Solana news</a> from Jack Kubinec and Jeff Albus.

‘ShameFi’ takes over Crypto Twitter

This is a segment from The Drop newsletter. To read full editions, <a href="https://blockworks.co/newsletter/thedrop">subscribe</a>. 



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Community Gaming, a crypto-powered gaming platform, launched a prediction market (PM) called Forkast on Ronin this week. Forkast will use the CGX token and let users bet on different real-world outcomes in gaming and influencer culture.



But some traders on Crypto Twitter accused the Community Gaming team and affiliated insiders of selling off the token — before regular users had the chance to claim it early Wednesday morning.&nbsp;



Massive interest in the token took their website down, making new distributions to retail impossible until the site was restored.&nbsp;



Over half a dozen posts from different accounts asked the team who was selling the token because its price had already <a href="https://x.com/Earning_Town/status/1892213093926613317">slipped</a> from $0.3 to $0.03 the morning the token launched. On Wednesday, it was <a href="https://cryptorank.io/price/forkast">down 70%</a> from its all-time high. Now, it’s already at $0.009 — a 90% decline from its ATH.



Community Gaming founder and CEO Chris Gonsalves tells me that neither the team nor its investors have sold their allocations of the token.&nbsp;



“The only entities that have tokens [besides the team, investors, and influencers] are the exchanges themselves who distributed through their listing promotions,” he said Wednesday morning while the website was down.



The token is available on Gate, MEXC and Katana.



“So those traders and the site going down is causing bad price action but any FUD about insiders selling is 100% false. Team tokens are locked for 18 months and all investors for 12 months,” Gonsalves said, adding:



“We sent out 8 creators payments (total of ~25k in CGX tokens) simultaneously when the claim process started and the site crashed right after that so people are sharing a screenshot of that but none of them did anything with those tokens so it&#8217;s just poor optics.”



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXc-w1WXrsZqD2qrNi-qw5MWMC3m0HJRK__vKLV4E_yOGdhyoyQwOxBxekMNUsblYXDb7A9ln1-drxSsQJVm5E0nDbcUQHt_PJevRYHKKKLb2Geh66YrSlWoznJrn8G0e-3VawaOJQ?key=STpUeLVJS9V_sBKNDC79oh8T" alt=""/></figure>



Ronin’s <a href="https://app.roninchain.com/token/0x656fe582b4c6dc95c598ea54dc820eb36152e2f7?t=owners&amp;p=1&amp;ps=25">blockchain scanner</a> shows me that creators Kyroh, Inspectormnbl, and Raiden are still holding their allocations as of Thursday morning.



A big selloff could mean that those who get allocations of the token don’t see value in holding it long-term. Or, they could just be farmers looking for a quick buck. A tale as old as time in crypto.



If you do end up getting some CGX and don’t want to toss it into the prediction market or sell it just yet, Forkast is promising those who stake CGX various rewards including monthly loot boxes with platform credits, Community Gaming tournament access, and governance participation in Community Gaming’s upcoming player-versus-player (PVP) blockchain.



Yep, that’s right — Ronin is getting an L2 blockchain, PVP. It’s intended for competitive gaming apps, according to the team. The chain will be governed by CGX DAO as well as the PVP Council, as well as anyone who stakes their CGX tokens.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Start your day with top crypto insights from David Canellis and Katherine Ross. <a href="https://blockworks.co/newsletter/empire">Subscribe to the Empire newsletter</a>.



Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. <a href="https://blockworks.co/newsletter/onthemargin">Subscribe to the Forward Guidance newsletter</a>.



Get alpha directly in your inbox with the <a href="https://blockworks.co/newsletter/research">0xResearch newsletter</a> — market highlights, charts, degen trade ideas, governance updates, and more.



The Lightspeed newsletter is all things Solana, in your inbox, every day. <a href="https://blockworks.co/newsletter/lightspeed">Subscribe to daily Solana news</a> from Jack Kubinec and Jeff Albus.

Community Gaming launches CGX token, Forkast prediction market

This is a segment from The Drop newsletter. To read full editions, <a href="https://blockworks.co/newsletter/thedrop">subscribe</a>.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



As most of you probably know by now, Doodles — the rainbow-barfing Ethereum NFT collection of 10,000 PFPs of the 2021 NFT boom — is launching a token on Solana.&nbsp;



Response so far has been pretty mixed. A lot of Crypto Twitter loves a token, especially one from an established brand, but there’s also been some criticism. First, there’s the token allocation. As one poster has pointed out, the Doodles team may receive up to 57% of the DOOD tokens, once you combine the parts of the pie that goes to the team plus the other pieces that could go to the team. That doesn’t look too cute, considering how tokens are often marketed as a way to “give back to the community.”



And then there’s the issue of timing. Is launching a token now, on a different chain than the NFT collection, too little, too late? Will DOOD serve any functional purpose, besides offering exit liquidity, a memecoin, and a way to get a bit more attention?&nbsp;



The market has been rough out there for art- and gaming-related tokens lately. PENGU, the Pudgy Penguins’ token, is still down 67% in the past month. PIXELS, the token behind the Ronin-based game of the same name, is also still down 50% in the past month. Apecoin, the once-hyped token behind the Yuga Labs world, remains down 50% in the past year.



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXcG4up-Vn0LJexf2fkJAjSvocp-TBM5cpYvfpNrp0lX9jEIBNEm9UwHZaz8hw5mq2Jhvon0Cw6V8V4D4yqFt0cUE9XcasMGE2NRJ2hO-zHl9LdI5HJugatjUKLSUuEzMHy7M-X4wA?key=xnUEi2Lbmszt8LaPf2XfzfBf" alt=""/></figure>



The Doodles team has tried other brand plays to generate interest in its IP, from striking a deal with rapper-producer Pharrell to join as their chief brand officer in 2023 to partnering with McDonald&#8217;s to release cups in November. Despite those high-profile deals, however, Doodles NFTs haven’t soared above the rest.



The DOOD announcement hasn’t really rejuvenated excitement around the NFT collection either, when we look at sales and volume traded. In the past week, Doodles sales volume is down 32%, according to CryptoSlam data.



Launching a token seems to be the latest way for crypto projects to monetize their IP. While I do think the Doodles’ art and aesthetic is cool in a minimalist way, I’m not sure their token will have a different fate than so many of the others currently out there. Time and time again, we’ve seen an initial pump and then a selloff, followed by flatlining or slowly declining price action.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Start your day with top crypto insights from David Canellis and Katherine Ross. <a href="https://blockworks.co/newsletter/empire">Subscribe to the Empire newsletter</a>.



Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. <a href="https://blockworks.co/newsletter/onthemargin">Subscribe to the Forward Guidance newsletter</a>.



Get alpha directly in your inbox with the <a href="https://blockworks.co/newsletter/research">0xResearch newsletter</a> — market highlights, charts, degen trade ideas, governance updates, and more.



The Lightspeed newsletter is all things Solana, in your inbox, every day. <a href="https://blockworks.co/newsletter/lightspeed">Subscribe to daily Solana news</a> from Jack Kubinec and Jeff Albus.

Doodles’ Solana token fails to impress

This is a segment from The Drop newsletter. To read full editions, <a href="https://thedrop.beehiiv.com/subscribe">subscribe</a>.&nbsp;



<hr class="wp-block-separator has-alpha-channel-opacity"/>



The Open Network, aka TON, made a splash with Telegram games and crypto integrations built on top, like with NOTcoin, which has seen over $1 billion in total volume traded since its launch.



A TON app page lists over 570 different gaming-related TON apps, which is a staggering number for any chain. But are the games on TON any good — and where does the TON ecosystem go from here?



“It’s been a hell of a ride,” Ivan Gusev, head of fun at TON NFT marketplace Getgems, tells me.



The games that launched on TON in 2024 are very early-stage right now. Jack Booth, co-founder of TON Society, an organization that contributes to TON, tells me he believes the games that release in 2025 and beyond will be evolved — hopefully better — versions of what we’re seeing now.



The tokens launched via TON and Telegram also don’t have much staying power. The games are typically very simple, using “tap-to-earn,” spinning a roulette, or other play-to-earn methods.



“The sustainable token model is something that I think these games will start to implement,” Booth said, noting that in his view, crypto in general has been too much about price speculation thus far.



In addition to playing games to earn altcoins, Telegram users can also buy Telegram usernames, profile decals, stickers, and more via TON as NFTs using the TON cryptocurrency.



Telegram has begun using TON for its own products and ads without notifying TON builders, Booth said. Telegram doesn’t tell TON builders what it’s going to do or when, creating a symbiotic but disjointed relationship.



Booth and Gusev both separately told me that TON builders like themselves have “zero relationship” with Telegram.



“We don’t know Telegram’s plans. I’m pretty sure Pavel doesn’t know Telegram’s plans,” Gusev tells me with a smile, referring to Telegram’s CEO Pavel Durov. “They operate in chaos.”



Despite the mystery around Telegram’s operations, however, TON builders like Booth and Gusev are confident that keeping TON tied to Telegram is the best move — they’re happy on Telegram. 



This is primarily because Telegram already has so many users — billions, in fact, many of whom like crypto. And user acquisition and growth is arguably one of crypto’s biggest hurdles.



Booth sees 2025 as a year where more favorable US regulation could mean the Telegram Wallet may become available in the US “very soon.”



Updated Feb. 20, 2025 at 1:31 pm ET: Clarified relationship between TON builders and Telegram.



Updated Feb. 19, 2025 at 3:06 pm ET: Clarified language.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Start your day with top crypto insights from David Canellis and Katherine Ross. <a href="https://blockworks.co/newsletter/empire">Subscribe to the Empire newsletter</a>.



Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. <a href="https://blockworks.co/newsletter/onthemargin">Subscribe to the Forward Guidance newsletter</a>.



Get alpha directly in your inbox with the <a href="https://blockworks.co/newsletter/research">0xResearch newsletter</a> — market highlights, charts, degen trade ideas, governance updates, and more.



The Lightspeed newsletter is all things Solana, in your inbox, every day. <a href="https://blockworks.co/newsletter/lightspeed">Subscribe to daily Solana news</a> from Jack Kubinec and Jeff Albus.

TON builders reveal there’s ‘zero relationship’ with Telegram

This is a segment from The Drop newsletter. To read full editions, <a href="https://thedrop.beehiiv.com/subscribe">subscribe</a>. 



<hr class="wp-block-separator has-alpha-channel-opacity"/>



The AI platform Kaito has crypto devs and traders yapping more than ever on Twitter/X recently thanks to Yaps, its tweet-to-earn leaderboard where posting about crypto gets you points. 



After connecting your X account and crypto wallet, Kaito’s AI tool analyzes your posts to decide whether they deserve any points. Your account’s standing will also be partly determined by how many “smart followers” or influential accounts you have following you.



Last week, Ethereum founder Vitalik Buterin held the top spot as the #1 Yapper, but has since lost first place to Binance CEO Changpeng “CZ” Zhao.&nbsp;



Other crypto influencers can be found among the highest-ranking yappers, including some with CryptoPunks, Pudgy Penguins, and Milady PFPs.



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXfASsS_MOYGQfxrWVjJL5DWj89aTfWad1FpBBSpi7jXLqQBdVFCwAMCjDMblVKwhOwehrLzuToql98PVK1EcX7Q5xXqJO35F9WMEBx2mdtHm7X53L4pI1SgusiAbcoj_dfP55k3HQ?key=4q7KpDkOtKMJKfUwkD0NZU94" alt=""/><figcaption class="wp-element-caption">Kaito’s Yap leaderboard</figcaption></figure>



Unsurprisingly, yappers are already trying to game the system to get as much YAP as possible.&nbsp;



One pseudonymous crypto trader known as “hodl” <a href="https://x.com/hodl_says/status/1887583743549878466">claims</a> that getting your “smart followers” to engage with your crypto posts will get you more points. Echo chambers supposedly won’t help, and posts need to be made at “optimal times” for maximum visibility. Kaito’s <a href="https://faq.yaps.kaito.ai/">FAQ</a> suggests that quality wins over quantity when it comes to <a href="https://knowyourmeme.com/memes/poasting">poasting</a>.&nbsp;



Others have pointed out other possible loopholes that users may have been exploiting to get points. Last week, a few accounts <a href="https://x.com/liam_xbt/status/1887823314405466181">claimed</a> that posting or commenting the word “reply” repeatedly in a post got them hundreds of Yaps. We’ve reached out to Kaito on this, and whether this issue has been fixed.



Kaito calls its Yaps leaderboard “InfoFi” because its top posters are providing what it believes to be insightful information. But if you ask me, it’s SocialFi re-packaged for 2025 (remember friend.tech? And Stars Arena?).&nbsp;



Kaito’s Yaps are SocialFi because its ranking system is using a popularity metric to help determine whether accounts should rise to the top. That’s less of a meritocracy and more of a popularity contest. Nothing necessarily wrong with that, but let’s call a spade a spade.



In crypto, some of the popular kids also happen to be nerds — or <a href="https://blockworks.co/news/changpeng-zhao-sentencing-verdict">convicted felons</a>.



And if you’re asking “wen token,” we don’t actually know yet. So far, this yap-to-earn race is based on the assumption that eventually, a pile of Yap points could help yappers get free money in an upcoming token airdrop.&nbsp;



But because posting is free, the only thing you might lose is the time you spent typing.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Start your day with top crypto insights from David Canellis and Katherine Ross. <a href="https://blockworks.co/newsletter/empire">Subscribe to the Empire newsletter</a>.



Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. <a href="https://blockworks.co/newsletter/onthemargin">Subscribe to the Forward Guidance newsletter</a>.



Get alpha directly in your inbox with the <a href="https://blockworks.co/newsletter/research">0xResearch newsletter</a> — market highlights, charts, degen trade ideas, governance updates, and more.



The Lightspeed newsletter is all things Solana, in your inbox, every day. <a href="https://blockworks.co/newsletter/lightspeed">Subscribe to daily Solana news</a> from Jack Kubinec and Jeff Albus.

Yap-to-earn takes over Twitter

This is a preview of upcoming newsletter The Drop. To read full editions after launch,&nbsp;<a href="https://thedrop.beehiiv.com/subscribe" target="_blank" rel="noreferrer noopener">subscribe</a>.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



There’s been a lot of buzz around Berachain, which <a href="https://x.com/berachain/status/1887485522492203155">launched</a> on Thursday and has already seen over <a href="https://berascan.com/">2 million</a> transactions.&nbsp;



It’s the latest launch by the makers of the Bong Bears NFTs, a collection of 100 smoking bears on the Ethereum blockchain launched back in the 2021 crypto boom.&nbsp;



Berachain, by contrast, is an ambitious Web3 blockchain using “Proof of Liquidity,” with the idea that pooled-up funds will lead to a sustainable ecosystem long-term.&nbsp;



Some, however, are not so sure. An exec with ties to a gaming-focused chain tells me: “[Berachain] bothers me deeply.” They don’t like how the project accumulated a pile of NFT money first and then built a whole chain somewhat randomly years later.



Yet as the pseudonymous Berachain founder Smokey <a href="https://youtu.be/u_eDYZYN9B4?feature=shared&amp;t=80">puts it</a>, Berachain was a series of “happy accidents.”&nbsp;



But there’s another new chain in town. Abstract — which launched last month from the Pudgy Penguins team — continues to hold attention on Crypto Twitter right now, leading some to compare it with Berachain.&nbsp;



One <a href="https://x.com/cnig69/status/1886957776171364813">post</a> that got over 600 likes in less than 24 hours praised Berachain for incentivizing whales and attacked Abstract Chain for catering to “normies and streamers” because Abstract’s platform centers games and livestreaming.&nbsp;



Right now, only about 750 approved accounts can livestream on Abstract (in the past few days, I’ve seen anyone from 57 to 75 streamers live at any given time). Maybe it’ll get more traction than Theta and DLive crypto streaming — or maybe not.



There are already over 35 gaming-related projects on Berachain’s website, suggesting it’s a gaming-friendly chain, too. It got<a href="https://blockworks.co/news/berachain-pre-launch-liquidity"> over $1.6 billion</a> in pre-launch liquidity, while Abstract has just <a href="https://defillama.com/chain/Abstract">$8.49 million</a> in total value locked (TVL) as of Thursday morning.&nbsp;



The bear-themed blockchain has <a href="https://x.com/berachain/status/1887178672995537236">unveiled</a> its token airdrop, too. Berachain is <a href="https://x.com/berachain/status/1887178677810553117">allocating</a> half its token supply to investors (34.3%) and “initial core contributors” (16.8%).&nbsp;



Some early testnet users are <a href="https://x.com/mark_krov/status/1887193558815285305">pissed</a>, as they’re only being allocated a tiny fraction (<a href="https://blog.berachain.com/blog/berachain-airdrop-overview">1.65%</a>) of the airdropped tokens in total.&nbsp;



Another big catch, of course, is that they’re blocking US residents from a number of online sites, including those for the project’s BeraHub, its HONEY stablecoin, and its token and NFT bridges. Will you be able to get around this? I’m currently working from South Africa, so the hub’s site loads for me until I turn on my VPN and choose a US-based IP address. Then, access denied.



Blockchains will inevitably get compared — but it doesn’t make much sense to compare Berachain and Abstract, Abstract Marketing Lead Phineas Totten tells me. “Our product is so distinctly different.”



“We just want to have fun on-chain again,” he adds.



Sony’s Soneium blockchain has also arrived. It launched three weeks ago as a rollup on Optimism. It’s being managed by Sony Block Solutions Labs, separate from Sony Interactive Entertainment and PlayStation.&nbsp;



But that doesn’t mean games on Soneium are 100% out of the picture.&nbsp;



Sam Barberie — head of strategy and partnerships at blockchain gaming infra firm Horizon — tells me he’s been working with Sony on some of their blockchain solutions. Sony’s move into crypto is exciting because they’re, as he puts it, “willing to experiment.” If this experiment works out, he posits, even more big fish could jump into the crypto pond.



“When companies get to see that [success], and the sky doesn’t fall, then it starts to open up more conversations,” Barberie says.



Soneium is a big deal for Web3 — if it can make a splash with US companies or consumers.



<h2 class="wp-block-heading">PENGU fire fizzles&nbsp;</h2>



PENGU, the Pudgy Penguins’ NFT token, burned big this week.&nbsp;



The team set over <a href="https://x.com/pudgypenguins/status/1887164609133429246">12.1 billion</a> Pengu tokens on figurative fire in a token burn amounting to roughly $150 million, or about 14% of the total supply. That’s keeping their <a href="https://x.com/pudgypenguins/status/1885027033794621514">promise</a> that after the Pengu claim ended, remaining tokens would be burnt. That’s good news.



That burn hasn’t sent the token climbing, though. Pengu is down 5.5% in the past day, and down roughly 73% in the past month. 



<h2 class="wp-block-heading">Raised by wolves</h2>



Yet another gaming-adjacent token may be on the horizon.&nbsp;



WolvesDAO, an invite-only group of Web3 gaming enthusiasts, may be releasing a token. The WolvesDAO hosts Twitter Spaces, but they also have a robust, exclusive Discord server that frequently purges inactive members.&nbsp;



WolvesDAO cofounder Sam Steffanina tells me via DM: “Something along those lines” of a token is in the works following a <a href="https://x.com/WolvesDAO/status/1887181047718203505">few</a> mysterious <a href="https://x.com/WolvesDAO/status/1886842509948580040">posts</a> to the group’s X page.&nbsp;



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Start your day with top crypto insights from David Canellis and Katherine Ross. <a href="https://blockworks.co/newsletter/empire">Subscribe to the Empire newsletter</a>.



Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. <a href="https://blockworks.co/newsletter/onthemargin">Subscribe to the Forward Guidance newsletter</a>.



Get alpha directly in your inbox with the <a href="https://blockworks.co/newsletter/research">0xResearch newsletter</a> — market highlights, charts, degen trade ideas, governance updates, and more.



The Lightspeed newsletter is all things Solana, in your inbox, every day. <a href="https://blockworks.co/newsletter/lightspeed">Subscribe to daily Solana news</a> from Jack Kubinec and Jeff Albus.

Berachain and Abstract are buzzing, but face criticism

This is a preview of upcoming newsletter The Drop. To read full editions after launch, <a href="https://thedrop.beehiiv.com/subscribe" target="_blank" rel="noreferrer noopener">subscribe</a>.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Bitcoin and the rest of the crypto market took a turn for the worse over the weekend in price drops that have largely been blamed on <a href="https://blockworks.co/news/trump-tariffs-trade-war">Trump’s promised tariffs</a>. I overheard a handful of X Spaces hosts sound the alarms about it on Monday, acting as though the bull market was over. 



But now that it’s Tuesday, things are already recovering. Tariffs on Mexico and Canada have been delayed, allowing bitcoin and some other cryptos to partially recover.



As often happens, gaming tokens were harder hit.



Immutable’s IMX token fell 14% from Sunday to Monday. Since then, it’s recouped a bit of that loss, but still remains down roughly 26% in the past week.&nbsp;



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXee-772v40wcWM_U_lKuws5XG3hC0BMJqWVVfXX7cdD4fQB6mzq4n6MCyH6SvzwlsaZYrUaYIHgfhkf-IcbmmkF-uZDvB42AuWiNU-qV-JPAr9DoH8ye8X90HchLkcwmYQEkhNLqQ?key=1Aue4niH7Xg5RL1f7t8gn2Ac" alt=""/></figure>



Some other market notables:



<ul class="wp-block-list">
<li>SAND, GALA, Ronin, AXS, MANA, BEAM, APE and PRIME all saw similar losses in the same period, with prices dropping anywhere from 21% to 30%.&nbsp;</li>



<li>Notcoin, the Telegram tap-to-earn game’s token, is down about 35% in the past week.</li>



<li>PIXEL fell roughly 32%.&nbsp;</li>
</ul>



Still, it’s not all bad news across the gaming token sector.&nbsp;&nbsp;



Sui is only down less than 2% in the past week. Sweat Economy continues to churn ahead, seeing its price rising about 8% in the past week. GoMining is also up modestly, as is Xterio and other smaller market-cap tokens.&nbsp;



That’s just a handful of winners though — price <a href="https://coinmarketcap.com/view/gaming/">data</a> shows that most other gaming tokens have had a rough week.



<h2 class="wp-block-heading">XP Alert&nbsp;</h2>



<a href="https://blockworks.co/news/pudgy-penguins-parent-layer-2-blockchain">Abstract</a>, the blockchain from the Pudgy Penguins team, doesn’t have a native token (yet). But it is issuing <a href="https://docs.abs.xyz/portal/overview">XP</a> — gamerspeak for experience points — and distributing it for the first time <a href="https://x.com/Phin_totten/status/1886780598531834197">today</a>. How did you do?



<h2 class="wp-block-heading">Deadrop is dead — we all know why</h2>



You’ve probably heard by now that Midnight Society, the studio behind the “vertical extraction shooter” Deadrop, has shut down.&nbsp;



It had promise — think Call of Duty for crypto fans with a heavy Bladerunner vibe. And, I guess, cars you could drive into battle. Kind of cool?



Deadrop’s premature death isn’t surprising, though.&nbsp;



Last year, one of its other co-founders and primary marketer — Guy “Dr. Disrespect” Beahm — admitted in a (since-deleted) <a href="https://x.com/JakeSucky/status/1823741433825698082">X post</a> that he had inappropriate conversations with a minor. That incident was revealed as the reason for Beahm’s permanent ban from Twitch, which had previously been kept under wraps for years.



Shortly after that news broke late last year, the studio laid off some staff in September. Then, last week, the studio <a href="https://x.com/12am/status/1885061680398213160">posted</a> a brief note announcing that it’s shutting down. The studio didn’t say exactly why, and instead asked the broader gaming community to help its 55+ developers find new gigs.&nbsp;



One of its other co-founders, Robert Bowling, purged his social media accounts before the shutdown.



One former Midnight Society employee told me: “It is what it is. We just couldn’t get the Dr. D stink off us.”&nbsp;



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Start your day with top crypto insights from David Canellis and Katherine Ross. <a href="https://blockworks.co/newsletter/empire">Subscribe to the Empire newsletter</a>.



Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. <a href="https://blockworks.co/newsletter/onthemargin">Subscribe to the Forward Guidance newsletter</a>.



Get alpha directly in your inbox with the <a href="https://blockworks.co/newsletter/research">0xResearch newsletter</a> — market highlights, charts, degen trade ideas, governance updates, and more.



The Lightspeed newsletter is all things Solana, in your inbox, every day. <a href="https://blockworks.co/newsletter/lightspeed">Subscribe to daily Solana news</a> from Jack Kubinec and Jeff Albus.

The Drop Newsletter