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📖 Binance Academy Knowledge
Central Bank Digital Currencies (CBDC) ExplainedWhat is BASE, Coinbase Layer 2 Network?What Is the GENIUS Act and Why Does It Matter for Stablecoin Users?Who Is Michael Saylor?How Do Crypto Address Poisoning Attacks Work?What Is Fully Homomorphic Encryption (FHE)?


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Binance Research on Key Trends in Crypto — November 2025Binance at the Historic UN Convention Against Cybercrime in HanoiThe 2025 CoinDesk Benchmark: The Exchange Industry’s Health Check And Binance’s LeadershipLearn to Trade Crypto With Zero Risk Using Binance Demo TradingFranklin Templeton's Global Crypto Strategy – Christopher Jensen on Stablecoins, Tokenization, TradFiCelebrating Recognition: Binance Named Digital Assets Exchange of the Year by Regulation AsiaBinance Recognized as Key Partner in Thailand’s National Anti-Cybercrime Agenda as Royal Thai Police Announces Successful OperationThe Human Firewall: Meet the Teams Powering Binance's User Safety Commitment
The 2025 Binance User Pulse: What Newcomers Buy, How They Use Crypto, and Why It Matters

Key Takeaways

Meteora (MET) is a decentralized liquidity platform built on the Solana blockchain. It aims to make trading, earning yields, and launching tokens more efficient across Solana's DeFi ecosystem.

The project started in 2021 as Mercurial Finance but was renamed Meteora in 2023. Its main innovations include the Dynamic Liquidity Market Maker (DLMM) and Dynamic Automated Market Maker (DAMM), which adjust liquidity and fees in real time depending on market conditions.

The MET token is used in governance, rewards for staking, fee sharing, and for encouraging liquidity within the platform.

Meteora focuses on improving how capital is used, lowering trading costs (i.e., reducing slippage), and supporting fair token launches.

Introduction

Meteora (MET) is a decentralized finance (DeFi) platform that works to improve how liquidity is handled on the Solana blockchain. By using adaptive tools like dynamic market makers and vaults that optimize yields, Meteora gives users and projects more effective and flexible options for trading and funding.

What Is Meteora?

Meteora is a liquidity system that acts as both a decentralized exchange (DEX) and infrastructure to support Solana’s DeFi projects. It first launched as Mercurial Finance in 2021, focusing mainly on stablecoin trading. 

After rebranding in 2023, Meteora expanded its reach to include more kinds of assets and brought in new technologies. The platform is designed to solve common problems in DeFi, such as wasted capital, divided liquidity pools, high price impact during trades, and unfair advantages in token sales.

How Does Meteora Work?

Dynamic Liquidity Market Maker (DLMM)

One of Meteora’s key features is the DLMM, which splits liquidity into small "price sections" or “bins.” This means that liquidity providers (LPs) can place their tokens within price ranges where they expect trading activity. 

Unlike older market makers that keep fees fixed, DLMM changes fees automatically. During volatile times, fees go up to help protect LPs from losses, and they go down when markets are stable to attract more trading.

Dynamic Automated Market Maker (DAMM)

DAMM takes the idea of AMMs further by allowing simpler liquidity provision options and adjustable fee levels. The newer DAMM version also includes protections against bots buying tokens unfairly during launches, making token sales fairer for regular users.

Dynamic vaults

Meteora’s vaults don’t let tokens sit idle. They automatically lend out unused assets to Solana lending protocols. A monitoring program watches the market and moves funds around to maximize earnings from both trading fees and lending interest.

Token launch tools

To ensure new tokens launch fairly, Meteora uses Alpha Vaults and Dynamic Bonding Curves. These features prevent bots from taking early control, lock liquidity for stability during launch, and adjust token prices depending on demand, helping create balanced and trustworthy token launches.

The MET Token

MET is Meteora’s native token and has multiple use cases:

Governance: MET holders can vote on changes, upgrades, and how fees or rewards are distributed.

Staking and rewards: Users who stake MET earn rewards from trading fees and can get discounts on platform fees.

Liquidity Incentives: MET tokens are used to encourage liquidity providers and support ecosystem growth.

The token was released through the “Phoenix Rising Plan,” which made 48% of all tokens available from the start, with the rest released gradually over time to support steady growth.

In November 2025, Meteora (MET) was listed for trading on Binance with the Seed Tag applied.

Ecosystem Integration

Meteora works closely with Solana projects like Jupiter for trade routing and Kamino or Solend for additional yield options. Its technical design is modular and built in Rust, making it easy for developers to integrate with or expand upon.

Things to Keep in Mind

Although Meteora brings new technology, there are some risks to consider:

Market fluctuations: Large amounts of tokens unlocked early might cause significant price swings.

Smart contract risks: Higher complexity products and features are more likely to have bugs or vulnerabilities despite security audits.

Dependence on Solana: Network slowdowns or outages on Solana could impact the platform’s performance.

Governance participation: Effective decentralization depends on wide and active user involvement.

Closing Thoughts

Meteora offers a protocol with technical innovations aimed at improving liquidity provision and trading efficiency on Solana. Its dynamic approach to fees and liquidity concentration, along with mechanisms designed for fair token launches, distinguish it from more traditional AMMs.

Further Reading

What Are Liquidity Pools in DeFi?

What Is Crypto Staking and How Does It Work?

What Is Solana (SOL)?

Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.

Key Takeaways

Blockchain address poisoning is a scam in the crypto world where attackers take advantage of the similarity between wallet addresses to trick users into sending money to the wrong wallets.

Scammers create wallet addresses resembling those a user often interacts with and “pollute” their transaction history by sending small transactions from these fraudulent addresses.

The irreversible nature of blockchain transactions increases the risk and impact of these address poisoning scams.

Mitigation requires improvements at the protocol, wallet, and user education levels, along with blockchain analysis and real-time monitoring.

Introduction

With the rise of blockchain technology and cryptocurrencies, cybercriminals have also developed more clever ways to exploit users. One increasingly common and troubling tactic is called blockchain address poisoning. This scam tricks users into sending funds to wallet addresses that look very similar to ones they usually use. Unfortunately, because blockchain transactions are final and can’t be undone, users who make this mistake can suffer huge losses.

In this article, we explore how blockchain address poisoning attacks work, the techniques scammers use, real-world examples illustrating their impact, and strategies for prevention.

What Are Address Poisoning Attacks in Crypto?

This scam happens when fraudsters create wallet addresses that closely mimic the legitimate ones a user frequently transacts with. They then send small, seemingly harmless transactions from these “lookalike” addresses to the victim’s wallet. This action fills the victim’s recent transaction list or address book with “fake” addresses, increasing the chance they will accidentally pick a malicious address for their next transaction.

Blockchain wallet addresses are long strings of hexadecimal characters, which are hard to remember. Because of this, users often copy and paste addresses or select from recent addresses shown in their wallets, creating an opening for scammers to slip in malicious addresses that may appear familiar.

How do attackers generate similar addresses?

Scammers use computer programs to generate many wallet addresses repeatedly until they find ones that match the beginning and end characters of their target’s regular address. Wallet apps usually only display a few characters at the start and finish of addresses, so these similarities fool users into thinking the lookalike address is genuine.

Steps of a typical address poisoning attack

Study the victim: The scammer reviews the victim’s transaction patterns to learn which wallet addresses they frequently use.

Generate fake addresses: Using automated tools, the attacker creates similar addresses that look like the ones used by the victims.

Poison transaction history: They send tiny payments from these fake addresses to the victim’s wallet, embedding them in their address history.

Catch the victim: Later, when the victim sends crypto and picks an address from their recent activity, they may pick the wrong one by accident, sending funds to the scammer.

Real-World Example: The 2024 Crypto Whale Attack

One high-profile case from May 2024 involved a crypto whale who mistakenly sent nearly $68 million in wrapped bitcoin (WBTC) to a scammer’s Ethereum address. The attacker spoofed the first six characters of the victim’s legitimate address to create a convincing fake. After receiving the funds, the scammer moved the assets through multiple crypto wallets.

Following negotiations, the scammer returned the original $68 million several days later but kept approximately $3 million profit due to price appreciation. The campaign behind this attack involved tens of thousands of fake addresses and targeted mostly experienced users with large wallet balances, highlighting the sophistication and scale these scams can reach.

Who Are the Victims?

The victims are usually active crypto users who hold larger amounts of cryptocurrency than typical users.

Although most fake addresses don’t successfully deceive users, the overall amount stolen can reach hundreds of millions.

Many victims reduce risk by performing small “test” transfers before sending large sums.

How to Prevent Address Poisoning Attacks

Improvements at the protocol level

Human-friendly addresses: Systems like Blockchain Domain Name System (BNS) and Ethereum Name Service (ENS) allow easier-to-remember names instead of long hexadecimal strings, which can help reduce errors.

Higher costs for address creation: Introducing measures that slow down address creation or use larger character sets can potentially make generating fake addresses more difficult and costly.

Wallet and interface upgrades

Better address visibility: Wallets could show longer parts of addresses or alert users when sending to addresses similar to known fake ones.

Blocking suspicious transfers: Wallets and blockchain explorers might hide or flag suspicious zero-value and counterfeit token transfers used in these scams.

User awareness and best practices

Test before sending: Always make small test transfers before sending large amounts.

Keep trusted address lists: Use personal allowlists to avoid accidentally selecting fraudulent addresses.

Use security tools: Consider using extensions or apps that detect phishing and address poisoning attempts.

Real-time blockchain monitoring

Real-time tools can spot unusual patterns linked to address poisoning and alert users, exchanges, or security teams to stop scams before they cause significant damage.

Closing Thoughts

Blockchain address poisoning is a growing and costly scam that takes advantage of complex wallet addresses and user convenience. Because crypto transactions cannot be undone, even small mistakes can mean serious losses.

Preventing these scams requires a team effort involving better blockchain protocols, smarter wallet designs, educated users, and advanced monitoring systems. By understanding how these attacks happen and following safety practices, the crypto community can reduce risk and stay more secure.

Further Reading

What Are Multisig Scams and How to Avoid Them? 

5 Tips to Secure Your Cryptocurrency Holdings

What Is Wrapped Bitcoin (WBTC)? 

Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.

Key Takeaways

Fully Homomorphic Encryption (FHE) allows computations on encrypted data without needing to decrypt it.

It improves security by allowing data to stay private even when used on untrusted systems.

FHE is important for protecting privacy in fields like data analysis, artificial intelligence, and blockchain technology.

The FHE technology is built to be quantum-resistant, composable, and publicly verifiable.

Use cases span finance, healthcare, retail, and government sectors, with potential to transform how data privacy is managed online.

Introduction

With data privacy becoming more important, people and companies want better ways to keep their data safe. Not only when it’s stored or sent but also when it’s being used. Fully Homomorphic Encryption, or FHE, is a new type of encryption that makes this possible. Unlike traditional encryption, which requires decrypting data to work with it, FHE allows you to perform calculations and analysis on data while it remains encrypted the whole time.

What Is Fully Homomorphic Encryption?

Fully Homomorphic Encryption is a special kind of encryption technology. It allows computers to process encrypted information without ever “seeing” the actual data. In other words, you can send your secret data to a cloud server or another company, and they can perform useful work on it (like finding patterns or running programs) without knowing what your data actually says.

Traditional encryption methods protect data in storage and transit but require decrypting data before processing, which can expose it to risks from hackers to accidental leaks. FHE changes this by letting data stay encrypted during all operations, offering a much higher level of security.

How Does FHE Work?

FHE works by transforming data into a secret code (ciphertext) that can still be mathematically manipulated. When the encrypted result is returned and decrypted, it matches the answer you would get if you worked on the original data.

This enables practical workflows where users or organizations can:

Store and share encrypted data across hybrid and multicloud infrastructures.

Perform complex operations like predictive analytics or AI on encrypted datasets.

Ensure that neither cloud providers, governments, nor hackers can access sensitive information in plaintext.

Key Features of FHE

Composability and interoperability

FHE provides composable privacy, meaning encrypted computations can be combined across different systems without sacrificing interoperability. This makes it ideal for applications such as blockchain, where programmable on-chain privacy can be integrated seamlessly across multiple protocols and services.

Quantum resistance

Built on lattice-based cryptographic assumptions, FHE schemes are post-quantum secure. This ensures that encrypted data remains protected even in the face of future quantum computing threats, providing a future-proof security foundation.

Public verifiability

FHE allows anyone to verify that computations on encrypted data were performed correctly without revealing the underlying data. This property builds trust in decentralized and permissionless systems, including blockchain networks.

Benefits of Fully Homomorphic Encryption

Enhanced data privacy: Keeps sensitive data encrypted at all times, reducing exposure risks during processing.

Zero trust security: You don’t have to fully trust the cloud service provider or other third parties because your information stays unreadable.

Regulatory compliance: Helps companies follow strict rules about protecting personal and sensitive data.

Enabling advanced applications: Facilitates secure AI, machine learning, and big data analytics on encrypted datasets that were previously inaccessible due to privacy concerns.

Practical Use Cases

Financial services

FHE enables encrypted predictive analysis such as fraud detection, credit risk modeling, and investment forecasting. It allows financial institutions to comply with privacy regulations while sharing and analyzing sensitive data.

Healthcare and life sciences

Hospitals and research institutions can securely process clinical trial data and health records on cloud platforms without exposing patient information. This accelerates research and encourages data sharing under strict privacy controls.

Retail and consumer services

Retailers can perform encrypted consumer behavior analytics and encrypted search queries, balancing data monetization and user privacy by protecting sensitive customer information.

Government and public services

Governments can safely move citizen data and inter-agency collaborations on-chain, ensuring privacy in healthcare, tax, and identity verification systems, while maintaining auditability and regulatory oversight.

Closing Thoughts

Fully Homomorphic Encryption is a game changer in cryptography and data security. It offers a way to use sensitive information safely, even when it’s processed in places you don’t fully control.

As our world becomes more digital and privacy regulations grow stricter, technologies like FHE will be more and more important for data protection. Looking ahead, FHE may lead to a future where privacy is built into every step of the internet, making data safe by default.

Further Reading

Quantum Computers and Cryptocurrencies

Symmetric vs. Asymmetric Encryption 

What is End-to-End Encryption (E2EE)? 

Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.

Key Takeaways

Allora is an open-source, decentralized network that coordinates AI and machine learning models to produce collective and adaptive predictions.

The network operates through topics, where participants, including workers, reputers, and validators, collaborate to generate, evaluate, and secure AI outputs.

Allora uses an objective-centric approach, allowing users to set learning goals while the network automatically selects and coordinates the most suitable models.

ALLO is the protocol’s native token. It's used to pay for inferences, reward contributors, and secure the network through staking.

What Is Allora?

Allora is an open-source, decentralized network designed to serve as a marketplace for artificial intelligence (AI). Today, AI systems are typically developed and managed by centralized companies that control the data, models, and outcomes. Allora takes a different approach by allowing anyone to participate in building and improving AI models collectively on-chain.

With Allora, you can access a collaborative network that supports AI development:

Workers: Machine learning experts or specialists in specific domains who contribute their models and insights to generate predictions, known as inferences.

Reputers: Participants who supply verified data and evaluate the accuracy of predictions made by workers.

Validators: Network operators who maintain the blockchain, secure transactions, and distribute rewards to participants.

Consumers: Developers, applications, or users who request inferences and pay for them using the network’s native token, ALLO.

Each role contributes to a different stage of the process, creating a system where predictions are generated, reviewed, and gradually refined. This setup enables Allora to coordinate multiple independent models and participants, providing a decentralized alternative to traditional AI systems.

How Allora Works

Topics

In Allora, topics are used to organize prediction tasks and guide collaboration. Each topic represents a specific focus area, such as price forecasting or risk analysis, and defines how participants contribute their predictions. To keep the process fair and transparent, every topic includes a rule set that outlines how accuracy is scored and rewards are distributed.  

This rule set defines a loss function that measures the closeness of predictions to the correct answer and the source of ground truth, such as a verified data feed or a blockchain oracle. Anyone can create a topic, set its rules, and invite others to join, allowing the network to grow and improve through open collaboration.

Layered architecture

The Allora Network is built on three main layers:

Inference consumption: Connects users who request predictions with the models that generate them. Consumers can access AI-driven insights, such as market forecasts or risk assessments, directly on-chain or through integrated applications.

Forecasting and synthesis: Coordinates how different models contribute and combine their predictions. It evaluates the accuracy of each model, aggregates its outputs, and produces a single, more reliable result.

Consensus: Allora operates as a hub chain within the Cosmos ecosystem. It utilizes Comet Byzantine Fault Tolerant (CometBFT), a consensus engine that enables nodes to agree on the network state even if some nodes fail. The network also employs a Delegated Proof of Stake (DPoS) system, allowing token holders to delegate their stake to validators.

Key Features

Objective-centric design

Allora employs an objective-centric design, complemented by a flexible pricing model. Instead of having to choose specific models, you can define your learning goals, and the network automatically selects and combines multiple models to deliver the most suitable results. With a Pay What You Want (PWYW) model, you can also decide how much ALLO to pay for the inferences you receive, giving you greater control over both performance and cost.

Reward distribution

Allora rewards participants based on the quality and accuracy of their contributions. Workers and forecasters earn tokens for producing reliable predictions, while reputers are rewarded for accurate evaluations. Validators receive rewards for maintaining the network’s security and consensus. 

Context awareness

Allora’s context awareness helps the network recognize how different models perform under varying conditions. By learning from past results and peer performance, it can identify when certain models are more accurate and adjust its approach accordingly. This enables Allora to combine insights and produce reliable predictions.

The ALLO Token

ALLO is the native token of the Allora protocol and is available on the BNB Smart Chain (BSC), Ethereum, and Base networks. It’s used within Allora’s ecosystem for a variety of purposes, including:

Purchasing inferences: ALLO can be used to buy inferences generated by the network. The system follows a PWYW model, where you choose the amount of ALLO to pay for each inference. 

Topic participation: ALLO is used to create new topics or join existing ones. ALLO can also be used to pay registration fees for workers and reputers who join specific topics within the network.

Staking and delegation: Reputers and validators can stake ALLO to help secure the network. Token holders can also delegate their tokens to a reputer or validator and receive a portion of the staking rewards.

Reward distribution: The network uses ALLO to reward participants, including workers, reputers, validators, and delegators, for their contributions.

Allora (ALLO) on Binance HODLer Airdrops

On November 11, 2025, Binance announced ALLO as the 58th project on the Binance HODLer Airdrops. Users who subscribed their BNB to Simple Earn and/or On-Chain Yields products from October 23 to 25 were eligible to receive ALLO airdrops. A total of 15 million ALLO tokens were allocated to the program, accounting for 1.5% of the total token supply at genesis.

ALLO was listed with the Seed Tag applied, allowing for trading against the USDT, USDC, BNB and TRY pairs.

Closing Thoughts

Allora introduces a decentralized framework for collaborative intelligence where multiple AI models work together to generate and evaluate predictions. While primarily focused on AI-driven predictions, the Allora network can also support other use cases such as decentralized finance, data analytics, and automation. By combining blockchain consensus, token-based incentives, and context-aware learning, the platform establishes an open and verifiable marketplace for AI applications.

Further Reading

Top 6 Artificial Intelligence (AI) Cryptocurrencies

What Are AI Agents?

The Relationship Between Blockchain and AI

Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.

Key Takeaways

Tokenized stocks are blockchain-based representations of traditional company shares, allowing investors to gain exposure to the stock market using digital assets.

They are typically backed 1:1 by real shares held in regulated custody, allowing investors to track stock price movements without directly owning the underlying asset.

While tokenized stocks offer benefits such as fractional ownership and global access, they typically lack voting rights and operate within developing legal frameworks.

Tokenized stocks show how blockchain can bring traditional finance on-chain, though its future will depend on clear regulations and wider market adoption.

What Are Tokenized Stocks?

Tokenized stocks are digital versions of traditional company shares issued on a blockchain. They enable investors to gain exposure to real-world equities through blockchain-based tokens, rather than relying on a traditional stock exchange or brokerage account.

Each tokenized stock is intended to reflect the price of an underlying share and is often backed 1:1 by real stocks held in custody with a regulated institution. In some cases, tokenized stocks may track prices synthetically using financial instruments or price feeds instead. 

Because they operate on blockchain networks, tokenized stocks can be traded 24/7, bought in fractional amounts, and accessed globally, reducing reliance on intermediaries. However, they typically have lower liquidity and do not include voting rights. Tokenized stocks also exist within a developing regulatory environment, where rules and treatment can differ across jurisdictions.

Types of tokenized stocks

Tokenized stocks are generally structured in two main ways:

Asset-backed tokens: Issued by regulated entities that purchase and hold real company shares in regulated custody. The tokens track the market value of those shares, and their backing is verified through regular audits.

Synthetic tokens: Replicate stock price movements using derivatives, blockchain oracles, or smart contracts without holding the underlying shares. They provide similar price exposure but carry higher price stability and counterparty risks.

How Tokenized Stocks Work

Custody

The process begins with licensed financial institutions purchasing and securely holding real shares of publicly traded companies. These shares are placed under regulated custody and serve as the backing for the corresponding tokens issued on the blockchain.

Custodians would be required to comply with securities regulations in their jurisdictions and maintain secure storage for the assets. They typically conduct regular audits and publish proof of reserves to verify that the number of tokens in circulation matches the number of shares held.

Tokenization and issuance

After the shares are secured, the issuer mints digital tokens that represent the underlying assets on a blockchain. These tokens are designed to track the market price of the underlying stocks, with their values updated in real time through data feeds and blockchain oracles to maintain accurate price exposure.

Providers such as Chainlink are typically used to deliver verified price data, proof of reserves, and cross-chain communication through the Cross-Chain Interoperability Protocol (CCIP). These mechanisms help maintain accurate pricing and consistency for tokenized stocks across multiple blockchain networks, such as Solana and Ethereum.

Trading

Once issued, tokenized stocks can be traded on both centralized exchanges (CEXs) and decentralized platforms (DEXs). Because they exist on blockchain networks, these tokens can be transferred and exchanged in a similar way to other digital assets. Trading and settlement are handled by smart contracts, which automatically execute transactions and record them on the blockchain.  

Redemption

Holders of tokenized stocks can redeem their tokens for stablecoins or fiat currency based on the current value of the underlying shares. When a redemption occurs, the corresponding tokens are burned, keeping the total token supply aligned with the number of real shares held in custody.

Benefits of Tokenized Stocks

24/7 trading: Tokenized stocks can be traded at any time, allowing investors to respond to market events immediately rather than waiting for traditional exchanges to open.

Fractional ownership: Tokenization enables investors to purchase smaller portions of shares, rather than full units, lowering the entry barrier for participation. 

Global accessibility: Investors can access tokenized stocks through blockchain-based platforms, eliminating the need for local brokers or extensive paperwork. However, availability may still depend on regional regulations and platform licensing.

Fast settlement: Transactions are processed on-chain and can settle within seconds, offering faster completion than typical market settlement cycles.

DeFi integration: Tokenized stocks can interact with decentralized finance protocols, allowing holders to use them as collateral, participate in liquidity pools, or engage in yield generating strategies.

Risks and Challenges

Tokenized stocks can make it easier for you to access and trade traditional company shares through the blockchain, but they also come with certain risks you should understand. The regulatory landscape for tokenized assets is still evolving and varies across countries, which can impact how these tokens are issued, traded, and accessed by investors.

Holding a tokenized stock can provide price exposure to the underlying asset, but it typically does not grant the same rights as traditional shareholders, such as voting or attending company meetings. Tokenized stocks also rely on custodians, issuers, and smart contracts to operate smoothly. Issues such as technical faults, poor management, or limited trading activity can impact their stability and overall reliability. 

Because the tokenized stock market is still relatively small, liquidity can be limited, making it harder to buy or sell large amounts quickly. Before investing, it’s important to do your own research, use reliable platforms and understand the regulations that apply in your region.

Closing Thoughts

Tokenized stocks combine traditional equities with blockchain technology to create a more accessible and flexible way to gain exposure to global markets. With features like 24/7 trading, fractional ownership, and faster settlement, they offer new opportunities for investors who want to bridge the gap between traditional finance and digital assets.

However, tokenized stocks are still an emerging product, and factors such as regulatory uncertainty, market size, and custodial risks should be considered carefully. You should take the time to understand how they work, stay updated on evolving regulations, and invest only amounts you are comfortable risking.

Further Reading

What Is Data Tokenization and Why Is It Important?

What Are Real World Assets (RWA) in DeFi and Crypto? 

What Are DeFi Aggregators and How Do They Work?

Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.

Key Takeaways

Stacks is a Layer 2 blockchain designed to extend Bitcoin’s functionality by adding support for smart contracts and decentralized applications (DApps).

Stacks uses a Proof of Transfer (PoX) consensus mechanism to anchor its blocks to Bitcoin, enabling the network to leverage Bitcoin’s security.

sBTC is a 1:1 Bitcoin-backed token on Stacks that enables BTC to be used in smart contracts and DeFi applications.

STX is the protocol’s native token. It’s used to pay transaction fees, support stacking, reward miners, and incentivize peg-out signers.

What Is Stacks?

Stacks is a Layer 2 blockchain designed to extend Bitcoin’s functionality by adding support for smart contracts and decentralized applications (DApps). The protocol works in conjunction with Bitcoin, using its security and settlement layer as the foundation for programmable features.

Through a consensus mechanism called Proof of Transfer (PoX), Stacks anchors its blocks to the Bitcoin blockchain, allowing network activity to be verified through Bitcoin. The network uses Clarity, a native smart contract language that can access Bitcoin’s state, and sBTC, a Bitcoin-backed asset that enables BTC to move between Bitcoin and Stacks in a decentralized way. 

These features enable Stacks to support applications such as financial protocols, digital assets, and identity systems that can connect to Bitcoin while preserving the security and stability of the Bitcoin network.

How Stacks Works

Proof of Transfer 

Proof of Transfer (PoX) is the consensus mechanism that connects Stacks to Bitcoin. PoX extends Bitcoin’s Proof of Work (PoW) model by using BTC to secure and operate the Stacks network, eliminating the need for new mining hardware or energy expenditure.

In PoX, miners transfer BTC to Stackers, who lock their STX, the protocol’s native token, to support network consensus. The more BTC a miner commits, the higher their chance of being selected to produce the next block. The selected miner receives newly minted STX tokens and transaction fees, while Stackers earn BTC rewards for maintaining network stability.

Once Stackers meet the staking requirements, they can also act as signers, validating new blocks and authorizing sBTC deposits and withdrawals. Every Stacks block is recorded on the Bitcoin blockchain, meaning that reversing a Stacks transaction would require reversing a Bitcoin transaction. This design allows Stacks to inherit Bitcoin’s security while adding programmability and smart contract functionality on top of it.

Key Features

sBTC

sBTC is a 1:1 Bitcoin-backed asset on the Stacks network that represents BTC, allowing you to use your Bitcoin in decentralized finance (DeFi), and other on-chain applications. sBTC operates through an open two-way peg, where signers and smart contracts collectively manage deposits and withdrawals.

To mint sBTC, you deposit BTC into the sBTC peg wallet on the Bitcoin blockchain. A decentralized group of signers verifies the deposit and mints an equal amount of sBTC on Stacks. You can then use sBTC for activities such as trading, lending, or interacting with smart contracts while your BTC remains secured and verifiable on the Bitcoin network.

When you want to convert back, you can send your sBTC to the Stacks protocol, which burns the tokens and releases the corresponding BTC from the peg wallet to your Bitcoin address. Each transaction is verified by multiple signers to maintain security. This setup helps reduce counterparty risk, avoids single points of failure, and ensures that all BTC remains verifiable on the Bitcoin base layer.

Clarity

Clarity is the programming language used for smart contracts on the Stacks network. It was designed to make contracts easier to read, understand, and verify, reducing the risk of unexpected behavior after deployment. Clarity runs directly on the blockchain rather than being compiled, allowing anyone to examine and verify a contract’s logic before it executes.

Because each Stacks block is linked to a Bitcoin block, Clarity contracts can also access Bitcoin data. For example, a contract can check whether a specific Bitcoin transaction has occurred before executing a function on Stacks. This approach allows developers to build applications and financial tools that can interact with Bitcoin’s state while running on the Stacks network.

Dual stacking

Dual stacking is a feature of the Stacks network that allows you to earn rewards in Bitcoin. To participate, you can lock BTC to mint sBTC, then enroll in Dual stacking to start earning rewards distributed in sBTC. If you also lock your STX tokens, you can increase your share of the reward. While your assets are enrolled, you can still use them within decentralized applications on Stacks, and rewards are distributed at the end of each cycle based on your level of participation.

Use Cases

Bitcoin DeFi: Developers can create lending, trading, and yield protocols that use Bitcoin as collateral, expanding its role in decentralized finance.

Non-fungible token (NFTs): NFTs can be created and managed through Clarity smart contracts on the Stacks blockchain, with all transactions anchored and settled on the Bitcoin blockchain.

Identity: The Blockchain Naming System (BNS) enables users to register decentralized usernames and namespaces, connecting on-chain identities to off-chain data without central control.

The STX Token

The STX token is the native token of the Stacks ecosystem, and it’s used within the protocol for multiple purposes, including:

Network fees: When you interact with applications or send transactions on Stacks, you pay fees in STX. These fees are given to miners who process transactions and help keep the network secure and stable.

Stacking rewards: By locking your STX, you can participate in the PoX consensus mechanism. This system connects Stacks to Bitcoin and rewards you in BTC for contributing to the network’s security and operations.

Incentives: Newly minted STX tokens are distributed to miners as rewards for producing new blocks on the Layer 2 network. Signers who help move assets from Stacks back to Bitcoin, known as peg-out operations, also receive STX rewards for maintaining reliable cross-chain transactions.

Closing Thoughts

Stacks is a Layer 2 network that introduces smart contracts and decentralized applications to Bitcoin while preserving its security and simplicity. Through the PoX consensus, Stacks connects directly to Bitcoin, enabling new use cases such as DeFi, NFTs, and programmable Bitcoin assets. With features such as Clarity, sBTC, and Dual Stacking, Stacks enables you to interact with Bitcoin in more flexible ways while remaining fully verifiable on its base layer.

Further Reading

Who Owns the Most Bitcoin?

BlackRock and Bitcoin: Understanding the Bitcoin ETF

The Bitcoin Whitepaper Explained

Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.

🗞️ In The News
Bitcoin fell below $100,000, marking its steepest decline in recent months.The United Nations has announced plans to establish a blockchain academy and advisory group to assist governments in exploring and adopting blockchain technology.Japan’s Financial Services Agency (FSA) launched the Payment Innovation Project, supporting a joint initiative by major banks and corporations to issue yen-backed stablecoins.Canada outlined upcoming rules for fiat-backed stablecoins, focusing on full reserves and enhanced compliance standards.Franklin Templeton launched a tokenized U.S. dollar money market fund for professional investors in Hong Kong, expanding its digital asset footprint in Asia.A new Blockchain Payments Consortium (BPC) has been formed by Fireblocks, the Solana Foundation, Polygon Labs, and several other cryptocurrency organizations to standardize blockchain payment systems.


📖 Binance Academy Knowledge
What Is a Stablecoin?What Is Solana (SOL)?What Is the GENIUS Act and Why Does It Matter for Stablecoin Users?What Is Sapien (SAPIEN)?What Is Momentum (MMT)?What Is Kite (KITE)?


🔥 Binance Blog Highlights
Rug Pulls 101 – The Tricks, the Signs, the Survival PlaybookBinance P2P Appeals Explained – How to Handle Disputes and Protect Your FundsBinance Partners with the City of Buenos Aires to Promote Responsible Crypto AdoptionIntroducing Futures DCA Bot: Automate Your DCA Strategy on Binance FuturesLost or Stolen Device? Here’s How to Protect and Secure Your Binance Account Fast

Key Takeaways

Sapien is a decentralized data labeling and verification protocol designed for machine learning and AI applications.

Instead of relying on centralized review teams, Sapien maintains quality through staking, peer validation, transparent reputation scores, and structured incentives.

Participants progress through a reputation-based system that unlocks access to advanced tasks, validator roles, and higher reward opportunities over time.

Sapien is the network’s native token. It’s used for staking and rewarding contributors, and will play a role in on-chain governance as the network matures.

What Is Sapien?

Sapien is a decentralized protocol for data labeling and verification, designed to support the development of machine learning and AI systems. The platform allows you to contribute to the creation of verified training data and receive rewards that reflect the accuracy and consistency of your work.

Training AI models requires large amounts of accurate and diverse data; however, gathering and verifying this data can be slow, costly, and challenging to manage. Labeling platforms typically rely on centralized review teams, which can lead to delays or inconsistent results.

Sapien takes a different approach by maintaining data quality through staking, peer validation, reputation, and automated review processes. By labeling data, reviewing results, or sharing your knowledge, you can help to build trustworthy datasets that train AI models. In return, you can earn rewards for high-quality contributions, while developers and organizations benefit from access to verified data.

How Sapien Works

Tasks on Sapien are submitted through client dashboards, managed integrations, or APIs. You can choose tasks that match your interests or be automatically assigned based on your skills and on-chain reputation. Sapien maintains accurate and reliable data through four main systems: staking, peer validation, reputation, and incentives.

Staking

Before starting a task, you have to stake tokens as collateral. Meeting quality standards allows you to maintain your stake and earn rewards, while poor results reduce your stake. The more you stake or the longer you stay active, the more opportunities and rewards you will have access to.

Peer validation

Instead of using a single review team, Sapien relies on contributors to check each other’s work. Experienced users review submissions from others, and accurate reviewers earn extra rewards. This shared system helps maintain consistent quality as more people join the network. 

Reputation

Sapien tracks each contributor’s performance through a public, level-based reputation system that rewards accuracy and consistency. You begin as a Trainee, completing simple tasks to build experience, and advance to Contributor, Expert, and Master as your skills improve. As your reputation grows, you gain access to more complex tasks, better rewards, and validation roles.

Incentives

Rewards are based on how challenging the task is, how accurate your work is, and how consistent your contributions have been. Good performance leads to higher payouts and opportunities, while low-quality work may limit future access.

Participating in Sapien

The participation process in Sapien usually consists of the following steps:

Sign up: Create an account and complete a short onboarding process. This helps you understand how tasks work and what quality standards to follow.

Select a task: Choose from available labeling or validation tasks, or be automatically matched based on your experience and reputation. Each task includes clear instructions, examples, and expected accuracy levels.

Complete your work: Label data, review outputs, or share your expertise according to the task requirements. Your work will be recorded on-chain and sent for validation by other contributors. 

Peer validation: Once your submission passes validation, you receive rewards based on the task's complexity, accuracy, and your performance history. Consistent, high-quality work helps you build a strong reputation and unlock higher-value tasks. 

Use Cases

Sapien can be integrated in many areas of machine learning and AI that need well-organized and reliable data, including:

Autonomous systems: Sapien can help label 3D objects, segment LIDAR data, and link objects between frames to improve how models detect and track movement.

Language models: Sapien can review conversations, assess reasoning steps, verify information sources, and rank responses to enhance the accuracy and trustworthiness of language models.

Robotics and vision: Sapien can repair 3D meshes, label textures, and tag hidden objects to improve how robots and vision systems perceive their surroundings.

Safety and governance: Sapien can detect misinformation, score toxicity, and check for compliance to help make AI systems safer and more responsible.

The SAPIEN Token

SAPIEN is the native token of the Sapien protocol and is issued on the Base Layer 2 blockchain. It has a maximum supply of 1 billion tokens and is used across the ecosystem for many purposes, including:

Staking: Before performing complex tasks, contributors must lock SAPIEN tokens as collateral. Approved tasks earn rewards, while failed ones may lead to partial or full loss of the staked amount. 

Rewards: Contributors can earn SAPIEN based on task complexity, performance, and the duration of their staking period. Consistent, high-quality work leads to increased rewards and progression, while poor performance may result in reduced rewards or limited participation opportunities.

Governance: Over time, governance of the Sapien protocol will transition to token holders through a decentralized autonomous organization (DAO). Voting will occur on-chain, with rights determined by SAPIEN holdings, participation, and delegation rules.

Sapien (SAPIEN) on Binance HODLer Airdrops

On November 6, 2025, Binance announced SAPIEN as the 57th project on the Binance HODLer Airdrops. Users who subscribed their BNB to Simple Earn and/or On-Chain Yields products from October 20 to 22 were eligible to receive SAPIEN airdrops. A total of 250 million SAPIEN tokens were allocated to the program, accounting for 25% of the total token supply.

SAPIEN was listed with the Seed Tag applied, allowing for trading against the USDT, USDC, BNB and TRY pairs.

Closing Thoughts

Sapien provides a structured framework for generating and verifying data used in AI development. Instead of relying on centralized review teams, the platform distributes quality assurance across contributors who are evaluated and rewarded based on performance. Through transparent validation and incentive mechanisms, Sapien aims to enhance data reliability and address some of the challenges associated with maintaining quality at scale in AI training.

Further Reading

What Are AI Agents?

Top 6 Artificial Intelligence (AI) Cryptocurrencies

What Is Liquid Staking?

Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.

Key Takeaways

Momentum is a decentralized finance (DeFi) hub built on the Sui blockchain, offering trading, staking, and asset management within a single unified ecosystem.

The platform features Momentum DEX for concentrated liquidity trading, xSUI for liquid staking, and MSafe for secure multi-signature treasury management.

Momentum expands beyond Sui through Wormhole’s cross-chain technology, enabling users to access and trade assets from multiple blockchains.

MMT is the protocol’s native token. It’s used for bonding through a vote-escrow model, governance, community rewards, and privileged access within the ecosystem.

What Is Momentum?

Momentum is an all-in-one decentralized finance (DeFi) hub built on the Sui blockchain. The platform acts as a liquidity foundation for the Sui ecosystem, offering tools for trading, staking, and asset management within a single environment. 

On Momentum, you can:

Trade Sui-native and cross-chain assets on Momentum DEX, a decentralized exchange that offers tighter spreads and lower slippage.

Stake SUI and receive xSUI, a liquid token that earns staking rewards while remaining usable across DeFi applications.

Manage funds securely with MSafe, a multi-signature wallet for treasury operations and token vesting.

Access Momentum Vaults, which offer curated strategies that automatically generate yield based on on-chain activity.

Key Features 

Momentum DEX

Momentum DEX is a decentralized exchange built on the Sui blockchain using a concentrated liquidity model similar to Uniswap V3. This design enables liquidity providers to allocate capital within specific price ranges, increasing efficiency and reducing slippage for traders.

The exchange uses Sui’s Programmable Transaction Blocks (PTB) to bundle actions, such as swapping, adding liquidity, and staking, into a single transaction, improving execution and reducing costs. Through cross-chain integration with Wormhole, an interoperability protocol, Momentum DEX supports trading across multiple networks while offering low transaction fees and advanced liquidity management tools for both retail and institutional users.

xSUI

xSUI is a liquid staking token that represents staked SUI within the Momentum ecosystem. When you stake SUI through Momentum, you receive xSUI in return, which continues to earn staking rewards while remaining fully liquid.

xSUI can be used across DeFi applications such as lending markets, liquidity pools, or as collateral, allowing you to earn additional yield without locking SUI. This approach lowers the entry barrier to staking, allowing anyone to earn rewards and contribute to the security of the Sui Network.

MSafe

MSafe is a multi-signature wallet designed for secure treasury management and token vesting on Move-based blockchains, including Sui, Aptos, and Movement. The wallet allows you to set custom approval rules for transactions, adding an extra layer of security to fund movements and governance actions.

Organizations can use MSafe to lock, schedule, and release tokens through transparent on-chain smart contracts, reducing the risks associated with manual operations or centralized control. The wallet also connects to a curated decentralized applications (DApp) store, allowing teams to interact with DeFi protocols safely under multi-signature authorization.

Scheduled Product Launches

Momentum is preparing several new product releases in 2026. In Q1 2026, the platform plans to introduce a Perpetual DEX, adding support for derivatives and perpetual futures trading on the Sui blockchain. Momentum’s Token Generation Lab (TGL) is also scheduled for launch in the same quarter as a dedicated platform for established projects, offering strategic partnerships, liquidity support, and transparent token distribution.

In Q2 2026, Momentum X is expected to launch as an institutional-grade platform that integrates trading and compliance within a single system. Built on the Sui technology stack, it will feature a universal Know Your Customer (KYC) and Anti-Money Laundering (AML) framework that enables verified users to access tokenized assets and markets through a secure and unified platform.

The MMT Token

MMT is the native token of the Momentum protocol, available on the Sui network. It’s used within Momentum’s ecosystem for a variety of purposes, including:

Bonding mechanism: MMT uses a vote escrow model. When you bond MMT, you receive veMMT, which grants governance power based on the amount bonded and the lock duration. 

Governance: veMMT holders can vote on proposals, parameter updates, emission schedules, and other governance decisions that shape the ecosystem's direction.

Community rewards: MMT is distributed to encourage network participation, rewarding users who trade, provide liquidity, vote, or contribute to the ecosystem’s growth.

Privileged access: Holding veMMT grants you access to certain benefits within the ecosystem, including early participation in new yield vaults, priority allocations in the Token Generation Lab, and early access to upcoming products and features.

Momentum (MMT) on Binance HODLer Airdrops

On November 3, 2025, Binance announced MMT as the 56th project on the Binance HODLer Airdrops. Users who subscribed their BNB to Simple Earn and/or On-Chain Yields products from November 17 to 19 were eligible to receive MMT airdrops. A total of 7.5 million MMT tokens were allocated to the program, accounting for 0.75% of the genesis total token supply.

MMT was listed with the Seed Tag applied, allowing for trading against the USDT, USDC, BNB and TRY pairs.

Closing Thoughts

Momentum is a DeFi hub on the Sui blockchain that combines trading, staking, and asset management under a single framework. Through products such as Momentum DEX, xSUI, and MSafe, the platform provides the infrastructure for liquidity, governance, and yield generation across Move-based networks. With several new releases planned for 2026, Momentum is positioned to continue supporting the development and growth of the Sui ecosystem.

Further Reading

What Are DeFi Aggregators and How Do They Work?

How to Analyze DeFi Projects

What Is Uniswap V4?

Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.

Key Takeaways

Kite is developing a blockchain platform for agentic payments, enabling autonomous AI agents to transact with verifiable identity and programmable governance.

The Kite blockchain is an EVM-compatible Layer 1 network designed for real-time transactions and coordination among AI agents.

The platform features a three-layer identity system that separates users, agents, and sessions to enhance security and control.

KITE is the network’s native token. The token’s utility launches in two phases, beginning with ecosystem participation and incentives, and later adding staking, governance, and fee-related functions.

What Is Kite?

Kite is an EVM-compatible Layer 1 blockchain designed for agentic payments, enabling you to create and manage autonomous artificial intelligence (AI) agents. The platform provides a secure and verifiable environment where agents can hold unique identities, process payments, and operate according to programmable rules defined by their users.

AI Agents

AI agents are autonomous programs that can perform tasks, make decisions, and manage digital interactions on your behalf. While most existing agents can generate content or analyze data, they typically rely on centralized platforms and may lack the means to handle financial transactions independently.

Kite is developing the infrastructure that provides AI agents with verifiable identities, permission controls, and programmable rules that define how they operate. With state channel payment rails, Kite aims to enable AI agents to send and receive real-time, low-cost micropayments securely across the network.

The Kite blockchain

The Kite blockchain uses a Proof of Stake (PoS) consensus mechanism to support real-time and low-cost transactions. The network acts as the coordination layer for autonomous AI agents, enabling fast payments, secure data attribution, and on-chain reputation tracking.

Kite features a modular ecosystem called Modules, where users can access or host AI services, including datasets, models, and computational tools. Each module connects to the main blockchain for settlement and governance, forming an open marketplace where developers can publish, deploy, and monetize their work. 

Modules operate as semi-independent communities, focusing on specific use cases such as large-scale data processing, privacy-preserving computation, or AI model training. Module owners oversee membership, invite contributors, and manage the distribution of rewards.

Participants can earn KITE, the network’s native token, based on their involvement in the ecosystem. Contributors who build or provide AI services are rewarded for the usage of their assets. Module owners receive income tied to on-chain activity within their modules, and validators earn staking rewards for maintaining network security.

Architecture

Kite uses a three-layer identity architecture that defines how users, agents, and sessions interact within the network.

User: The user is the main owner and source of trust. They manage the master wallet, set overall policies, and decide what their AI agents can do. All permissions and spending limits originate from the user’s authority. 

Agent: Each agent receives its own wallet address, derived from the user’s master key, using the BIP-32 standard, a protocol that allows for the secure creation of multiple linked wallets from a single root key. This allows users to delegate control safely without sharing private keys.

Session: A session is a temporary identity for short-lived actions, such as a single payment or API call. Session keys are randomly generated and expire after each use, reducing exposure in the event of a compromise.

If a session key is compromised, it only impacts a single interaction. If an agent’s key is exposed, its actions are still restricted by the user’s predefined rules. This layered design provides multi-level protection, while each interaction also contributes to a shared reputation system that reinforces trust across the network.

Payment Rails

Kite introduces payment rails designed for AI agents, using state channels to enable fast and efficient transactions. Instead of going through multiple intermediaries, agents can transact directly through secure, off-chain channels. 

Only the opening and closing of each channel are recorded on-chain, while all other transactions occur instantly between participants. This design supports microtransactions, making it easier for autonomous agents to exchange value, pay for services, or access data in a verifiable and scalable manner.

Use Cases

Kite can support a variety of applications by enabling automated payments and authenticated AI transactions, including:

Retail transactions: AI agents can handle online shopping for consumers, with Kite enabling secure delegation and verified payments through the Kite Passport and the Kite Payment API.

Manufacturing: Manufacturers can automate sourcing and supplier orders using AI agents, while Kite provides delegation proof and stablecoin payments to reduce foreign exchange costs. 

Portfolio management: AI agents can manage portfolios automatically, with Kite adding programmable risk controls and guardrails for safer and more transparent trading.

Digital services: AI agents can pay for APIs, data, and tools directly, using the Kite Passport and the Layer 1 blockchain for stablecoin transactions.

The KITE Token

KITE is the native token of the Kite protocol, with a maximum supply of 10 billion tokens. The token’s features will be introduced in two phases to support early participation and long-term ecosystem growth, with the second phase launching alongside the mainnet.

Phase 1

Liquidity: Module owners must lock KITE in liquidity pools paired with their module tokens to activate and maintain their modules.

Ecosystem access: Builders and AI service providers need to hold KITE to participate in the ecosystem.

Incentives: A portion of KITE is distributed to users and businesses that contribute value to the network

Phase 2

AI service commissions: The protocol converts a small fee from AI service transactions into KITE and then redistributes it to modules and the Kite Layer 1 blockchain.

Staking: Users can stake KITE to secure the network and earn rewards. Module owners, validators, and delegators align their incentives by staking on specific modules they support.

Governance: KITE holders can participate in governance by voting on proposals related to protocol upgrades, incentive programs, and performance standards.

Kite (KITE) on Binance Launchpool

On October 31, 2025, Binance announced KITE as the 71st project on the Binance Launchpool. Users who locked their BNB, FDUSD, and USDC during the farming period were eligible to receive KITE rewards. A total of 150 million KITE tokens were allocated to the program, accounting for 1.5% of the total token supply.

After the farming period, KITE will be listed for trading on Binance with the Seed Tag applied, allowing for trading against the USDT, USDC, BNB, and TRY pairs.

Closing Thoughts

Kite is a Layer 1 blockchain to support the integration of AI agents into digital economies. With features such as verifiable identity, programmable governance, and real-time payments, the platform allows these agents to operate securely and transparently. Kite’s modular design connects users, developers, and validators, creating an open framework where AI agents can transact and collaborate within on-chain environments. 

Further Reading

Blockchain Layer 1 vs. Layer 2 Scaling Solutions

Top 6 Artificial Intelligence (AI) Cryptocurrencies

What Are Appchains (Application-Specific Blockchains)?

Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.

Key Takeaways

Fartcoin is a meme coin launched on the Solana blockchain through Pump.fun, a memecoin launchpad that facilitates the creation and trading of tokens.

The idea for Fartcoin came from Truth Terminal, an AI agent created by Andy Ayrey, making it one of the first meme coins inspired by artificial intelligence.

Fartcoin’s price and popularity largely depend on social media attention and speculation, rather than its practical utility.

Like most meme coins, Fartcoin is highly volatile and should be approached with caution as a lighthearted cultural experiment rather than a traditional investment.

What Is Fartcoin?

Fartcoin is a meme coin launched on 18 October 2024 through Pump.fun, a meme coin launchpad on the Solana network. Unlike traditional cryptocurrencies that focus on finance, governance, or DeFi applications, Fartcoin draws its appeal from internet culture. The coin’s simple and relatable concept, “everyone farts,” helped it connect with a broad online audience. 

The project initially invited users to submit fart jokes or memes to earn tokens, using humor as a creative way to distribute its supply and engage the community during its launch phase. With the tagline “the token that breaks wind, not banks,” Fartcoin highlights the lighter side of crypto through humor and community-driven cultural expression.

Origins 

Fartcoin began as a concept generated by artificial intelligence (AI) rather than a traditional cryptocurrency project. The concept was created by an AI agent called Truth Terminal, developed by Andy Ayrey in collaboration with another AI model, Claude Opus.

During an online exchange, Truth Terminal proposed creating a meme-based cryptocurrency that captured the humorous and experimental side of the crypto community. This idea later evolved into Fartcoin, which was launched through Pump.fun on the Solana blockchain, using the SPL token standard.

From the beginning, Fartcoin was designed as a lighthearted project built around the idea that “everyone farts,” blending humor, community engagement, and internet culture. There have also been claims that Fartcoin transactions include a digital fart sound as part of a “gas fee” feature; however, there is no verified evidence to support this.

Supply and Distribution

Fartcoin launched with a total supply of 1 billion tokens on the Solana blockchain. At launch, around 20.1 million tokens were reportedly allocated to Truth Terminal. This portion was mainly symbolic, recognizing the AI’s role in shaping the idea while also serving as a marketing gesture that connected the token to its AI-driven origins.

The remaining tokens were made available to the public through open trading and community participation. Instead of a presale or private allocation, early users were encouraged to submit fart-related jokes or memes to receive tokens. This approach emphasized participation and community involvement over traditional fundraising mechanisms.

Risks and Considerations

High volatility

Like most meme coins, Fartcoin is highly volatile. The coin’s price can be influenced by social media trends, influencer activity, and speculation rather than underlying fundamentals. 

Limited utility

Fartcoin has no clear financial or technological use case. The meme coin primarily serves as a form of online entertainment and cultural expression, meaning its long-term value depends heavily on ongoing community interest.

Copycat risks

Fartcoin’s popularity has led to the creation of similar or imitation tokens. These copycat coins can dilute the project’s originality and create confusion among investors. As with some viral crypto projects, oversaturation in the market can quickly reduce long-term interest and appeal.

What’s Next for Fartcoin?

In January 2025, Andy Ayrey, the creator of Truth Terminal, carried out an over-the-counter (OTC) sale of Fartcoin to help fund a foundation dedicated to supporting the AI project’s development and long-term independence. The sale was conducted privately to minimize market impact, with proceeds directed toward legal, technical, and operational efforts for the foundation.

The future of Fartcoin remains uncertain and will depend on factors such as community engagement, overall market conditions, and continued interest in the Truth Terminal project. Like most meme coins, it’s highly speculative and can experience significant price fluctuations depending on market sentiment.

Closing Thoughts

Fartcoin is a meme coin that blends humor, community participation, and AI-inspired storytelling through its connection to Truth Terminal. Fartcoin’s lighthearted concept and viral origins have made it stand out in the crowded meme coin space, attracting both curiosity and discussion within the crypto community.

However, like most meme coins, Fartcoin is highly speculative and unpredictable. If you’re thinking about getting involved, make sure to do your own research and never invest more than you can afford to lose.

Further Reading

What Is a Solana ETF?

Top 6 Artificial Intelligence (AI) Cryptocurrencies

What Is the Official Trump Meme Coin (TRUMP)?

Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.

🗞️ In The News
Bitcoin retreated below $110,000, extending its recent pullback.The Federal Reserve approved a second consecutive interest-rate cut.The US market saw the launch of two new Solana ETFs this week, with Grayscale’s GSOL and Bitwise’s BSOL beginning trading. JPYC, Japan’s first yen-backed stablecoin, launched alongside its issuing platform as part of the country’s push to expand its digital asset ecosystem.South Korean custodian BDACS announced plans to issue a won-backed stablecoin called “KRW1” on Circle’s Arc blockchain. Binance has partnered with Bubblemaps to integrate on-chain analysis tools into its Web3 Wallet, providing users with greater visibility into potential insider trading and token manipulation.Ondo Global Markets expanded to BNB Chain, enabling users to access tokenized versions of traditional assets, including stocks and ETFs.


📖 Binance Academy Knowledge
What Is a Solana ETF?What Is a Stablecoin?What Is Bubblemaps (BMT)?Hot vs. Cold Wallet: Which Crypto Wallet Should You Use?What Is Ondo (ONDO)?What Is BNB Chain?


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Key Takeaways

Story (IP) is a blockchain platform specifically designed to build a peer-to-peer intellectual property (IP) network.

It provides a universal ledger for registering, exchanging, and monetizing knowledge and creative assets without relying on centralized intermediaries.

Story features a multi-core architecture, including specialized execution cores that handle intellectual property as a native asset class.

The platform enables programmable IP markets and supports the integration of artificial intelligence (AI) by acting as a settlement layer for AI transactions involving intellectual property.

Its native token, IP, facilitates transactions, staking, and incentivizes honest participation within the network.

Introduction

In today's digital world, intellectual property plays an important role in creativity, innovation, and knowledge sharing. But traditional IP systems often depend on centralized institutions, which can create inefficiencies and limit the fair monetization and exchange of intellectual assets.

Story (IP) aims to address these challenges by offering a blockchain protocol that enables individuals and entities to register, trade, and monetize intellectual property assets directly, transparently, and programmatically.

What Is Story (IP)?

Story is a blockchain network designed to create a programmable marketplace for knowledge and creativity. It allows intellectual property assets (e.g., creative works, scientific data, machine learning models, etc.) to be represented and exchanged as native digital assets on an open ledger.

Story offers a universal repository for IP assets combined with a programmable market where these assets can be traded, licensed, or monetized under customizable terms set by their owners. This peer-to-peer system removes the need for intermediaries and reduces transaction costs, increasing the accessibility and liquidity of intellectual property.

How Does Story Work?

Multi-core architecture

Story uses a multi-core execution environment, with a main core compatible with Ethereum Virtual Machine (EVM) and multiple other specialized cores. One key specialized core is the Intellectual Property (IP) core, which manages IP registration, licensing, and economic relationships on-chain. This core supports complex IP graphs that track ownership, licenses, and derivations of assets.

Proof of Creativity Protocol

Built on the IP core, the Proof of Creativity (PoC) protocol serves as an open IP repository. It records the genealogy of intellectual property assets as they evolve, are expanded, and monetized across applications. PoC introduces programmable licenses and royalty modules, allowing IP holders to automate licensing terms and revenue sharing. This structure ensures transparent and fair compensation throughout the value chain of any IP asset.

The IP Token

The native IP token is used as the medium of exchange within the Story network. It enables payment of fees, incentivizes validators who maintain the network’s security through staking, and facilitates economic flows related to intellectual property usage, such as royalties and licensing fees. The IP token also supports AI-related transactions and communications between autonomous agents operating within the network.

Cross-chain and off-chain integrations

Story supports cross-chain communication, allowing IP assets to be used across blockchains and decentralized finance (DeFi) platforms without losing ownership or control. It also integrates oracles and off-chain services that attest to IP authenticity, validate ownership, and assist with legal disputes.

Use Cases and Applications

Story’s framework enables a variety of novel use cases in the intellectual property and AI domains:

Universal market for intellectual property: Allows direct, programmable peer-to-peer IP transactions, which can include licensing, revenue sharing, and fractionalization of IP assets.

AI model and dataset markets: Registers and monetizes AI training datasets, foundation models, and fine-tuning packages.

Agent-based commerce: Enables autonomous AI agents to negotiate, license, and transact IP assets on behalf of users in a trustless way.

Legal and compliance: Through programmable licenses and off-chain attestations, Story can create enforceable agreements and dispute resolution mechanisms.

Closing Thoughts

Story offers a new model for intellectual property management using blockchain technology. By creating a decentralized network, Story can help reduce dependence on central authorities and improve transparency, fairness, and efficiency in IP management.

Further Reading

Top 6 Artificial Intelligence (AI) Cryptocurrencies

What Is NEAR Protocol (NEAR)?

What Is Bittensor (TAO)? 

Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.

Key Takeaways

Bittensor is a decentralized platform that enables the creation of incentive-driven commodity markets, focused primarily on artificial intelligence (AI).

Its native token is called TAO, and is used to reward participants for contributing with computational resources, validation, and market creation.

The platform is made up of different subnets, which are smaller communities that work on specific AI tasks with miners (who provide resources) and validators (who check the work).

Bittensor uses a consensus method called Yuma Consensus to agree on the quality of AI tasks without putting all the data directly on the blockchain.

The architecture promotes open ownership and democratizes control of AI technologies through transparent, decentralized participation.

Introduction

The field of artificial intelligence (AI) has often been dominated by large technology companies, raising concerns about the concentration of power and control. Bittensor is a decentralized AI platform designed to enable open participation, ownership, and development of AI resources by distributed communities worldwide. 

By combining blockchain technology with incentive-based digital commodity markets, Bittensor aims to build a scalable AI ecosystem that empowers developers, businesses, and users.

What Is Bittensor?

Bittensor is a decentralized computing platform focused on building interconnected marketplaces for AI-related digital commodities. Bittensor has multiple subnets that work as independent digital marketplaces and operate under a unified token system powered by TAO.

Unlike traditional blockchains that embed validation logic on-chain, Bittensor architecturally separates transaction recording from validation computations. This design leverages off-chain validation processes to support computationally intensive AI workloads such as machine learning model evaluation.

Core Components of the Bittensor Platform

Subnets: Incentive-based AI marketplaces

Each subnet operates as a specialized community producing a distinct type of AI-related commodity. For example, a text prompting subnet rewarding quality prompt completions. Subnets consist of miners (contributors producing the commodities) and validators (entities ensuring quality according to subnet-specific criteria). These independent sub-communities collaborate but maintain unique goals and standards within the overarching Bittensor ecosystem.

Bittensor blockchain and TAO token

The Bittensor blockchain functions as the system of record, tracking token balances, transactions, and staking activities. The native token, TAO, incentivizes participants by rewarding miners and validators based on their performance within subnets and the network’s overall health. Token holders can also stake TAO to validators, supporting their contributions and gaining influence in subnet governance.

Bittensor SDK

To facilitate participation, Bittensor provides an open-source Software Development Kit (SDK) complete with tools, documentation, and tutorials. The SDK enables miners, validators, and developers to interact seamlessly with subnets and the blockchain, supporting broad ecosystem growth and innovation.

Yuma Consensus

The Yuma Consensus mechanism governs agreement between validators on the quality and validity of subnet outputs. This mechanism is agnostic to the type of data being validated, which is essential for handling probabilistic AI outputs, such as machine learning predictions or intelligence assessments. By performing validation off-chain and agreeing on consensus results on-chain, Bittensor is able to maintain flexibility and efficiency, which allows for more scalable and complex AI markets.

Benefits of Bittensor for Stakeholders

For developers

Bittensor offers a platform to build, deploy, and monetize AI-related incentive mechanisms without the complexity of creating new blockchains. Developers can design bespoke digital commodity markets for compute, storage, data, or AI intelligence, fostering innovation within a unified token economy.

For businesses and enterprises

Bittensor provides decentralized access to AI and computing resources at a lower cost and without intermediaries. By consolidating multiple AI infrastructure functions (compute, storage, data acquisition) under one ecosystem, it competes with centralized industry leaders through open participation and tokenized incentives.

For token holders and the public

TAO holders gain governance rights and the opportunity to stake tokens to validators, aligning economic incentives with network growth. The open ownership model ensures that control over emerging AI technologies remains distributed, promoting ethical development and accessibility.

Closing Thoughts

Bittensor is combining blockchain and AI technology, aiming to decentralize resource ownership and democratize AI development. It targets the creation of diverse AI commodity markets under a single blockchain and token. We can think of Bittensor as both a decentralized computer and a language for building scalable AI applications. It combines the power of decentralized markets with machine intelligence.

Further Reading

Top 6 Artificial Intelligence (AI) Cryptocurrencies

What Is NEAR Protocol (NEAR)?

What Is Internet Computer (ICP)?

Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.

Key Takeaways

Satoshi Nakamoto, Bitcoin’s mysterious creator, remains the single largest holder with an estimated 1.1 million BTC, mined during the cryptocurrency’s earliest days.

Bitcoin ETFs, led by BlackRock’s iShares Bitcoin Trust (IBIT), collectively hold over 1.1 million BTC, representing a major shift in institutional participation since their U.S. approval in 2024.

Public companies like Strategy and Mara are among the top corporate holders, using bitcoin as a strategic treasury reserve.

Governments around the world are estimated to hold hundreds of thousands of BTC, often acquired through law enforcement seizures, strategic accumulation, or state-backed mining initiatives.

Introduction

Bitcoin has a fixed total supply of 21 million units. As crypto adoption continues to grow worldwide, understanding who owns the most BTC can reveal how it’s distributed and how ownership patterns may affect its long-term stability.

Over time, multiple participants, including early miners, institutional investors, corporations, exchange-traded funds (ETFs), and governments, have become among the largest holders of bitcoin.

The Challenge of Tracking Bitcoin Ownership

While every Bitcoin transaction is publicly recorded on the blockchain, identifying who controls each wallet remains relatively difficult. Bitcoin’s pseudonymous structure means that wallet addresses do not reveal real identities, making it challenging to distinguish between individual investors, institutions, and custodial accounts.

Some BTC are believed to be permanently lost due to forgotten passwords or lost private keys, reducing the amount in active circulation. Ownership patterns can also shift over time as wallets move funds, ETFs rebalance their holdings, governments sell seized assets, and companies adjust their treasury allocations.

Because of these factors, any list of major bitcoin holders should be viewed as a temporary snapshot rather than a confirmed record. This article provides an overview of bitcoin ownership as of October 2025, based on available information.

The Largest Individual Holder: Satoshi Nakamoto

Satoshi Nakamoto, the pseudonymous author of the 2008 Bitcoin whitepaper, is believed to hold about 1.1 million BTC, worth more than $120 billion. These coins are roughly 5% of the total supply, and were mined between 2009 and 2010, when Bitcoin was first launched. While there are many claims about who Satoshi truly is, their real identity remains unknown and could represent either a single person or a group of individuals.

Blockchain researchers estimate that Satoshi mined more than 22,000 blocks, earning 50 BTC for each before the first halving. The bitcoins, spread across thousands of wallet addresses, have never been moved or spent, adding to the mystery around Bitcoin’s founder.

The 1.1 million BTC estimate is based on analyses of early mining patterns, most notably the “Patoshi pattern” (mining signature) identified by researcher Sergio Demian Lerner. While this figure is widely accepted, it remains an educated estimate rather than a confirmed fact.

Satoshi’s most famous Bitcoin address is “1A1zP1eP5QGefi2DMPTfTL5SLmv7DivfNa”, also known as the Bitcoin Genesis Address. This is the address that mined the very first Bitcoin block in 2009 (the Genesis Block). The address holds more than 104 bitcoins.

Source: blockchain.com

Individual bitcoin whales

A bitcoin whale is an individual or entity that holds at least 1,000 BTC. Most whales remain anonymous, but some are known to the public. They include early adopters and miners, crypto investors such as Tim Draper and the Winklevoss twins, and institutional funds or custodians that manage large client holdings.

Because Bitcoin wallets are pseudonymous and funds move frequently, the list of whales is always changing. Even so, many large holders play a role in the market by providing stability during downturns and shaping liquidity across exchanges.

Bitcoin ETFs

In the US, Bitcoin ETFs have become some of the largest holders of bitcoin since their approval in early 2024. These funds allow investors to gain exposure to bitcoin’s price movements through traditional financial markets without directly owning or managing BTC. As of late October 2025, the three major ETF holders include:

BlackRock iShares Bitcoin Trust (IBIT): Managed by BlackRock, IBIT holds about 804,944 BTC, making it the single largest ETF by inflows since its launch.

Fidelity Wise Origin Bitcoin Fund: Managed by Fidelity, FBTC holds approximately 207,151 BTC and offers investors straightforward access to bitcoin through a regulated fund.

Grayscale Bitcoin Trust (GBTC): One of the first bitcoin investment products, GBTC now operates as a spot bitcoin exchange-traded product (ETP) and holds about 177,952 BTC.

Publicly Traded Bitcoin Treasury Companies

A growing number of publicly listed companies now hold bitcoin as part of their treasury reserves, viewing it as a store of value or an inflation hedge. Below are some examples of publicly traded companies that hold bitcoin as part of their treasury strategy.

As of October 2025, there are at least 100 public companies with more than 100 BTC. Some of the biggest holders include:

Strategy: Formerly known as MicroStrategy, Strategy, led by executive chairman Michael Saylor, holds approximately 640,808 BTC, making it the largest public company holder of Bitcoin. The firm continues to expand its holdings through a mix of direct market purchases and financing initiatives.

MARA: A bitcoin mining and infrastructure company with holdings of around 53,250 BTC, accumulated through both mining output and acquisitions.

XXI: The company holds about 43,514 BTC, representing one of the largest bitcoin reserves among publicly traded firms.

Metaplanet: A Tokyo-listed firm that holds approximately 30,823 BTC, reflecting growing corporate interest in bitcoin among Asian companies.

Private Companies

In addition to public corporations, several private companies also hold substantial amounts of bitcoin as part of their business operations or investment strategies. Unlike public firms, they are not required to disclose their holdings, so available figures are based on voluntary reports and industry estimates.

Block.one, the firm known for developing the EOSIO open source software, reportedly holds about 164,000 BTC, making it one of the largest known private holders. Tether, issuer of the USDT stablecoin, is said to own around 87,475 BTC, having added bitcoin to its reserves as part of a broader diversification effort.

Stone Ridge Holdings Group, a US-based financial firm, reportedly holds about 10,000 BTC, purchased in 2020 as part of its long-term investment plan. The actual number of private companies with significant bitcoin holdings could be higher, as many do not disclose such information publicly.

Government Entities 

Several governments around the world hold Bitcoin through law enforcement seizures, state-backed mining, or direct purchases. The United States is estimated to control around 326,588 BTC, much of it recovered from the Silk Road case (an online marketplace closed for illegal activity) in 2013 and the Bitfinex hack in 2016.

In March 2025, US President Donald Trump signed an executive order establishing a strategic bitcoin reserve and a digital asset stockpile. Funded by bitcoin seized in legal cases, the initiative aims to manage these assets as a long-term store of value and to review the government’s existing holdings.

China reportedly holds around 190,000 BTC from the PlusToken scam, while the United Kingdom is said to possess roughly 61,245 BTC linked to financial crime investigations. The United Arab Emirates (UAE) reportedly holds about 6,420 BTC from state-backed mining initiatives.

El Salvador is the only country known to have purchased bitcoin directly, with reported holdings of about 6,363 BTC. The nation adopted bitcoin as legal tender in 2021 to support financial inclusion and attract investment, later making its use voluntary in 2025.

Crypto Exchanges and Custodial Wallets

Many cryptocurrency exchanges hold significant amounts of bitcoin in custodial wallets, which store assets on behalf of their users. These wallets are often among the largest visible on the blockchain, but they do not represent ownership by the exchanges themselves.

Custodial wallets combine funds from many users to facilitate trading, withdrawals, and other platform activities. As a result, their balances fluctuate frequently as the coins are collectively owned by millions of individual account holders.

Closing Thoughts

Understanding who owns the most Bitcoin offers insight into how the world’s first cryptocurrency has matured over time. While Satoshi Nakamoto is believed to hold the largest individual amount, ownership today is spread across a diverse range of holders, including institutions, ETFs, corporations, governments, and private investors.

Further Reading

What Happens After All Bitcoins Are Mined?

How to Use Bitcoin as a Payment Method

What Are Bitcoin Layer 2 Networks?

Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.

Key Takeaways

BlackRock’s iShares Bitcoin Trust (IBIT) is a spot bitcoin ETF that gives investors exposure to bitcoin’s price without owning BTC directly.

The fund holds bitcoin in cold storage through Coinbase Prime and is listed for trading on the NASDAQ exchange.

IBIT offers liquidity, regulatory oversight, and simplicity for investors, though its performance can be influenced by bitcoin’s price fluctuations and ongoing management costs.

What Is a Spot Bitcoin ETF?

An exchange-traded fund (ETF) is an investment vehicle that pools funds from investors to buy and hold a portfolio of assets, such as stocks, bonds, commodities, or digital assets. ETFs trade on public stock exchanges throughout the day, offering liquidity, transparency, and accessibility. They allow investors to gain exposure to different markets without having to manage the underlying assets themselves.

A bitcoin spot ETF applies this same concept to bitcoin. Instead of holding traditional assets, it tracks the price of bitcoin and allows investors to participate in its market through regulated financial platforms.

There are two main types of bitcoin ETFs:

Spot ETFs: Hold actual bitcoin in custody to reflect its market price.

Futures ETFs: Track the price of bitcoin futures contracts traded on regulated exchanges, rather than holding bitcoin directly.

Each share of a spot bitcoin ETF represents a portion of bitcoin held by the fund, which is stored by a regulated custodian. The share price moves in line with bitcoin’s market value, offering investors a familiar and regulated way to gain exposure to bitcoin.

Spot bitcoin ETFs received regulatory approval in the United States in January 2024, marking a major milestone for the integration of digital assets into traditional finance. Their direct exposure to bitcoin’s price, combined with regulatory oversight, has attracted growing interest from both retail and institutional investors seeking a simple, compliant way to invest in bitcoin.

Who Is BlackRock?

BlackRock is a global asset management firm headquartered in New York. Founded in 1988, the company provides a broad range of investment products and financial services, including ETFs, mutual funds, and portfolio management solutions. The firm works with both institutional and individual clients across different markets and is regarded as one of the major participants in the global investment industry.

BlackRock’s iShares Bitcoin Trust 

The iShares Bitcoin Trust (IBIT) is a spot bitcoin ETF launched by BlackRock, one of the world’s leading asset management firms. Approved by the U.S. Securities and Exchange Commission (SEC) on January 11, 2024, IBIT began trading shortly after on the NASDAQ, a major U.S. stock exchange. This enabled investors to gain exposure to bitcoin’s price movements by buying and selling shares through standard brokerage accounts. 

BlackRock had originally filed its application with the SEC on June 15, 2023, and received approval seven months later. The SEC’s decision marked a major milestone for both the crypto and traditional finance sectors, approving 11 spot bitcoin ETFs on the same day.

Since its launch, IBIT has seen rapid growth and strong investor demand. The fund surpassed $1 billion in assets within its first week of trading and has since become the largest bitcoin ETF globally. As of October 2025, IBIT holds more than 800,000 BTC, representing approximately 3.8% of bitcoin’s total supply.

How IBIT Works

Structure and management

IBIT uses a creation and redemption system to keep its share price closely aligned with bitcoin's actual price. When more investors buy IBIT shares, new shares are issued, and the proceeds are used to purchase additional bitcoin.  

When investors sell, the fund may sell part of its bitcoin holdings to provide liquidity. This process helps ensure that the ETF’s market price accurately reflects the value of its underlying bitcoin. The fund charges a management fee of 0.25% per year, which covers operational and administrative costs.

Custody and security

BlackRock partners with Coinbase Custody Trust Company, also known as Coinbase Prime, to store the fund's bitcoin. The assets are kept in cold storage, meaning they are held completely offline to minimize the risk of hacking or unauthorized access. 

IBIT’s bitcoin is stored in segregated wallets, separate from Coinbase’s own holdings, ensuring clear ownership and transparency. Each wallet is secured with multi-signature authorization, requiring multiple approvals for any transfer. Regular cybersecurity audits are also conducted to help maintain the integrity and safety of the fund’s assets.

Investors who hold IBIT shares do not need to manage any bitcoin private keys or storage directly, as the ETF’s custodian oversees all security and recovery processes.

Benchmark pricing

To track bitcoin’s price accurately, IBIT uses the CME CF Bitcoin Reference Rate (BRR). This benchmark calculates a daily average of bitcoin prices from several major cryptocurrency exchanges. It helps prevent temporary price swings or irregularities on a single exchange from affecting the ETF’s overall value.

Key Features 

Accessibility: IBIT gives investors exposure to bitcoin through traditional brokerage accounts, removing the need for wallets or direct crypto custody.

Liquidity: As one of the most actively traded bitcoin ETFs, IBIT offers deep liquidity and efficient price execution.

Regulated infrastructure: Managed by BlackRock under SEC oversight, IBIT operates within a transparent, compliant framework with Coinbase as its regulated custodian.

Custody and security: All bitcoin backing IBIT is stored offline in Coinbase Custody's cold storage. The assets are safeguarded through segregated wallets, multi-signature authorization, and regular security audits.  

Risks and Considerations

While IBIT provides an alternative and regulated way to gain bitcoin exposure, it’s important to understand the inherent risks:

Market volatility: Bitcoin remains highly volatile, so ETF investors are exposed to its price movements.

Regulatory changes: Future updates to cryptocurrency laws or financial regulations could affect how bitcoin ETFs operate or are taxed.

Custody and counterparty risk: The bitcoin held by IBIT is stored by Coinbase Custody. Although it’s regulated and has strong security measures, no system is completely free of risk.

Tax implications: Profits from selling IBIT shares may be subject to capital gains tax, similar to direct bitcoin ownership. The exact tax treatment would depend on each country’s regulations and may vary by jurisdiction.

Expanding Global Access With IB1T

Following its success in the United States, BlackRock expanded its bitcoin offerings to international markets to meet rising global demand for regulated crypto exposure. In March 2025, it introduced the iShares Bitcoin ETP (IB1T) across Europe, followed by a London Stock Exchange (LSE) listing in October 2025.

The ETP is physically backed by bitcoin and denominated in U.S. dollars, allowing investors in Europe and the UK to gain regulated exposure to bitcoin through traditional brokerage platforms. This expansion extends bitcoin accessibility to both retail and institutional investors, further bridging the gap between traditional finance and the digital asset ecosystem.

Closing Thoughts

BlackRock’s iShares Bitcoin Trust (IBIT) is connecting traditional finance with the world of digital assets. The ETF allows investors to gain exposure to bitcoin’s price movements through familiar brokerage accounts, without the need to manage private keys or digital wallets.

While products like IBIT make bitcoin investing more accessible and regulated, they still carry the same risks tied to bitcoin’s price volatility and market uncertainty. Before investing, it’s important to understand how spot bitcoin ETFs work, review associated fees, and consider how they fit within your investment strategy and goals.

Further Reading

Bitcoin Spot ETF vs. Bitcoin Futures ETF: What's the Difference?

The Bitcoin Whitepaper Explained 

What Is a Strategic Bitcoin Reserve?

Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.

Key Takeaways

Turtle is a distribution protocol designed to monetize Web3 user activity.

It uses APIs to track wallet interactions, such as liquidity provision, swaps, staking, and referrals.

The protocol offers liquidity providers (LPs) access to exclusive deals, boosted rewards, and risk-mitigated vaults while maintaining self-custody of funds.

Introduction

Decentralized finance (DeFi) is expanding rapidly, bringing new opportunities and challenges for managing digital assets. Turtle is a blockchain protocol that analyzes wallet activity to optimize liquidity allocation and reward distribution in the Web3 space. This article provides an overview of Turtle’s structure, functionality, and key components, helping readers understand its approach within the broader DeFi landscape.

What Is Turtle?

Turtle is a distribution protocol that follows different Web3 wallet activities, including how much liquidity users provide, yields they earn, token swaps handled through partner protocols, staking to validators, and referral code usage. It uses APIs to monitor these actions, allowing partners to create extra income streams without requiring users to take extra steps or unnecessary risk.

The main goal is to build a clear, safe, and cooperative space where liquidity providers, developers, investors, and auditors can work together and benefit fairly.

How Turtle Works

Turtle's system is designed for three primary groups: liquidity providers, DeFi protocols, and distribution partners.

For liquidity providers (LPs)

Liquidity providers (LPs) can join Turtle by linking their wallets via a digital signature. Once registered, they can continue using partner protocols normally while receiving extra rewards via:

Boosted Deals: Special liquidity offers that can provide 5% to 50% more token rewards, managed via Turtle’s treasury.

Turtle Vaults: Pooled liquidity options that let LPs receive stable, less risky rewards automatically, making it easier to take part in bigger ecosystem initiatives.

For protocols

Turtle helps DeFi projects attract liquidity by offering insights from a large network of over 300,000 liquidity providers, focusing especially on bigger investors. The protocol helps advise and implement effective liquidity deployment strategies, optimizing capital attraction without over-reliance on token emissions. Protocols can track how their liquidity performs and view earnings through Turtle’s Client Portal.

For distribution partners

Distribution partners can monetize their communities by leveraging Turtle’s distribution infrastructure. Through the Client Portal, they can integrate Turtle Earn into their websites or apps using a hosted link or an SDK.

Key Products

Boosted Deals

These special deals give LPs extra token rewards that support Turtle’s growth and stability. The amount of tokens distributed is tracked, and LPs receive future benefits related to how much they contribute.

Turtle Vaults

Vaults make managing liquidity easier by pooling funds together, so LPs can receive rewards with less risk and manual work. Vaults can also help protocols grow by connecting them to one shared liquidity source.

Turtle Campaigns

This product offers “Ecosystem-as-a-Service” to help protocols jumpstart DeFi activity on a larger scale. By combining vaults, rewards, and partnerships, Turtle aims to attract the right kind of liquidity based on each protocol’s goals. For example, the TAC Summoning Campaign raised over $650 million during its first month through this coordinated method.

Earn Widget and Liquidity Leaderboard

The Earn Widget is a simple tool that allows LPs to easily find Turtle opportunities. The Liquidity Leaderboard rewards users who bring in liquidity and take part in social actions, encouraging community growth and engagement.

Turtle (TURTLE) on Binance HODLer Airdrops

On October 21, 2025, Binance announced TURTLE as the 55th project on the Binance HODLer Airdrops. Users who subscribed their BNB to Simple Earn and/or On-Chain Yields products from October 14 to 16 were eligible to receive TURTLE airdrops. A total of 10 million TURTLE tokens were allocated to the program, accounting for 1% of the max total token supply.

TURTLE was listed with the Seed Tag applied, allowing for trading against the USDT, USDC, BNB, FDUSD, and TRY pairs.

Closing Thoughts

Turtle is a distribution protocol that monitors wallet activities to coordinate liquidity and incentives among various participants in the Web3 space. By offering tools for liquidity providers, protocols, and distribution partners, it provides a framework for managing liquidity deployment without taking custody of users’ funds.

Further Reading

What Are Liquidity Pools in DeFi?

What Is Decentralized Finance (DeFi)?

Impermanent Loss Explained

Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.