THE PHENOM CRYPTO LETTER

GM,

Welcome to a historic edition of the Phenom Weekly Update—the day we’ve all been waiting for has finally arrived. 🎉 Bitcoin has officially hit $100,000! That’s right, the OG crypto has shattered the six-figure barrier. Somewhere Peter Schiff is banging is head against a wall. It’s a monumental moment not just for Bitcoin, but for the entire crypto ecosystem. So, pop the champagne (or at least refresh your portfolio app one more time). Things are going to get crazy. The talking news heads will be mentioning it constantly and all those friends who said you were stupid for investing in crypto will be asking you what coins to buy. Welcome to teh Banana Zone!

Here’s what we’ve got this week:

• South Korea declares Martial Law and sends BTC dumping

• Celcius Founder pleads guilty to fraud

• Are memes a super cycle?

Jump to :

• CONTENT WE ARE READING

• NEWS

• CRYPTO TWITTER

• MEMES

South Korean Goes Full Banana Republic

This week in Banana Republic news, South Korea's political turbulence sent shockwaves through the cryptocurrency market, causing significant price fluctuations for Bitcoin (BTC) and XRP.

The Political Catalyst

On Wednesday South Korean President Yoon Suk Yeol declared martial law, citing threats from North Korean sympathizers. This sudden move led to widespread protests and a swift parliamentary vote to rescind the order. Although martial law was lifted within hours, the political instability had immediate repercussions on financial markets.

Impact on Crypto

The declaration caused panic among investors, leading to a sharp sell-off in cryptocurrencies on South Korean exchanges.

• Bitcoin (BTC): On Upbit, South Korea's largest crypto exchange, Bitcoin's price plummeted by 33%, dropping from approximately $93,000 to $62,000 within 30 minutes. It later rebounded to around $89,000, creating a significant arbitrage opportunity compared to global markets.

• XRP: The price of XRP experienced an even steeper decline, with trading volumes surging on both Upbit and Bithumb exchanges.

Arbitrage Opportunities

The rapid price drops led to the re-emergence of the "Kimchi Premium," a phenomenon where cryptocurrencies trade at higher prices on South Korean exchanges compared to global markets. Traders capitalized on this disparity, engaging in arbitrage to profit from the price differences. These arbs quickly closed but if you were quick it was a great trade.

Market Recovery and Outlook

Following the lifting of martial law, cryptocurrency prices began to stabilize. However, the incident highlighted the vulnerability of digital asset markets to geopolitical events. We always hear about Bitcoin being a hedge but time and time again we’ve seen that Bitcoin is still highly correlated to risk assets.

Celsius Founder Alex Mashinsky Pleads Guilty: “Unbank Yourself” Was a Fraud

Alex Mashinsky, the founder of Celsius—the hyped crypto lender from last cycle—just pleaded guilty to fraud charges. Turns out, his promises of high returns and “unbanking yourself” were more fiction than reality. If you were around crypto last cycle I’m sure you remember Celsius and maybe even lost money because of it. This week we got a bit of closure to that saga. Here’s what happened:

• Mashinsky, along with his co-founder Daniel Leon, built Celsius on the premise of keeping crypto “as safe as money in a bank” while offering returns up to 18%. Spoiler: it wasn’t.

• At its peak, Celsius claimed $25 billion in assets and boasted a token, CEL, with a market cap of $3.2 billion. But as prosecutors revealed, Celsius was never profitable.

• When the Terra blockchain collapsed in 2022, it dragged Celsius down with it. Mashinsky paused withdrawals in June and filed for bankruptcy shortly after, leaving customers empty-handed.

• Mashinsky was hit with seven charges, including fraud and market manipulation. Prosecutors said he lied to customers and inflated CEL’s price to keep the façade going.

• Mashinsky has agreed to return $48 million in ill-gotten gains and now faces up to 30 years in prison. His sentencing is set for April. Not exactly the freedom-loving, anti-bank ending he envisioned.

• Meanwhile, Celsius’ former chief revenue officer, Roni Cohen-Pavon, also pleaded guilty and will face sentencing soon.

Takeaway:

Mashinsky sold a dream of financial empowerment but delivered a financial nightmare. The irony? His “Unbank Yourself” slogan became painfully literal for Celsius customers. A lot of money can be made in crypto however the saying rings true, “if it sounds too good to be true, it probably is”. Whenever you join a protocol know where the yield is coming from. If you don’t know then you are probably the yield.

The Case for Memecoins

Memecoin advocate Murad Mahmudov argues the supercycle isn’t over—it’s just beginning. He says memecoins’ lack of fundamentals is their strength, making them uniquely unpredictable and primed for speculative gains. Unlike traditional crypto projects, which can be evaluated with finance models, memecoins are all about vibes, memes, and mania.

“If global liquidity and risk-on behavior continue,” says Mahmudov, “memecoins could outperform again.” In other words, if the broader market is bullish, expect memecoins to ride the wave.

Risky Bet?

Other analysts are more cautious. Pav Hundal of Swyftx warns of meme fatigue, stating, “You’ve just had 150+% rallies—some cooling off is inevitable.” Regulatory uncertainty and the sheer volatility of these assets could also spell trouble.

Mahmudov sees memecoins as more than financial assets—they’re “tokenized communities.” Like cults, they thrive on loyalty, identity, and shared purpose. Whether you see this as inspiring or terrifying, one thing’s clear: memecoins aren’t going away—they’re evolving.

For now, though, the market’s looking like Monte Carlo. Will memecoins deliver another jackpot? Certainly some will but it is a risky game to play

READING CORNER

A collection of longer form content we are consuming this week 

NEWS

Quick Hitters from the week

• Ripple Eyes $200B Stablecoin Market Dominance: A strategic move positions Ripple to grab a share of the booming stablecoin industry.

• Silk Road Bitcoin Sparks Market Jitters: $2B worth of BTC moves to Coinbase Prime, hinting at potential U.S. government sell-off.

• MicroStrategy Hits 402K BTC After $1.5B Buy: The Bitcoin whale expands its stash with another massive acquisition.

• Memecoins Go to Washington: Congressman Mike Collins swaps altcoins for memecoins in a bold political pivot.

• Ethereum’s 2025 Comeback Plan: After a rough 2024, ETH gears up to close the gap with Bitcoin and Solana.

• Crypto Influencers Break Records: YouTube views for crypto content hit a 12-month high, showcasing growing interest.

• HYPE Token Debuts with $4.2B Valuation: HyperLiquid’s native token sees $157M trading volume within its first hour.

• BlackRock Bitcoin ETF Poised for Top 30 Spot: With $50B AUM, it’s about to surpass the largest financial sector fund.

THE TWITTERVERSE

A collection of the most interesting stuff on Crypto Twitter this week

MEMES

For the (crypto) Culture

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