Quantum Risks, Pi Network’s Fund, and More

This week in crypto marked days of reckoning and revelation. BlackRock raised eyebrows with its cautionary stance on quantum computing’s potential to crack Bitcoin.

Meanwhile, Pi Network unveiled a massive $100 million fund to power Web3 startups amid fresh scrutiny. The following is a roundup of all weekly crypto headlines, including Coinbase coming under fire for mishandling a massive insider data leak.

BlackRock Flags Quantum Computing as Existential Risk to Bitcoin

A key highlight this week in crypto was BlackRock’s latest ETF filing update. The submission ignited fresh debate after the asset manager warned that advances in quantum computing could eventually undermine Bitcoin’s cryptographic foundations.

“To be clear. These are just basic risk disclosures. They are going to highlight any potential thing that can go wrong with any product they list or underlying asset that is being invested in. It is completely standard. And honestly makes complete sense,” ETF analyst James Seyffart noted.

The disclosure, embedded in BlackRock Bitcoin ETF’s risk statement, said quantum breakthroughs could render current security standards obsolete. This observation marked a stark admission from a financial giant betting on BTC’s long-term viability.

While the scenario remains hypothetical, BlackRock’s feeling compelled to include it signals growing institutional awareness of risks beyond volatility or regulation.

The sentiment is that, in theory, Bitcoin’s reliance on elliptic curve cryptography could be vulnerable to future quantum decryption. However, some dismiss the threat as distant but agree it is not too early to prepare post-quantum protections.

With trillions of dollars potentially flowing into tokenized markets in the coming decade, BlackRock’s stance adds urgency to ongoing efforts to future-proof blockchain security.

Pi Network Unveils $100 Million Fund But Faces Criticism

Another highlight this week in crypto was Pi Network’s $100 million fund. BeInCrypto reported the network’s bold plan to allocate 10% of its native token supply to support developers building apps within its enclosed mainnet ecosystem.

The fund aims to nurture real-world applications and stimulate long-term utility for its users.

“Pi Network Ventures has officially launched—a $100 million initiative, held in Pi and USD, to invest in startups and businesses that advance the utility and real-world adoption of Pi,” read the announcement.

However, the announcement was controversial, with some critics saying the project lacks transparency.  They cite questionable ecosystem progress, missed promises, and referral reward failures, among other shortfalls.

Still, the funding marks a serious commitment to bootstrapping Web3 startups from within, aligning with Pi Network’s long-standing promise of grassroots crypto adoption.

Analysts Say Ethereum Has a Shot at Flipping Bitcoin

Analysts also said this week in crypto that Ethereum may be on the brink of challenging Bitcoin’s market dominance. They say it could challenge BTC in price and fundamental utility.

The analysts pointed to Ethereum’s massive lead in daily active users, network revenue, and ecosystem development as signs that a “flippening” could still happen.

“ETH is absolutely killing Bitcoin right now. Ethereum could become the number 1 digital asset soon at this rate. Bitcoin Maxi’s in disbelief,” Investor Gordon said.

While Bitcoin remains the ultimate store of value, Ethereum is driving innovation in DeFi, NFTs, and layer-2 scaling.

Internet Capital Markets Tokens: Crypto’s Emerging Trend?

As traditional finance (TradFi) creeps onto the blockchain, internet capital markets tokens are becoming a hot new frontier. BeInCrypto reported this week’s standouts, citing Launch Coin (LAUNCHCOIN), Dupe (DUPE), and CreatorBuddy (BUDDY).

These tokens go beyond speculation, actively facilitating the on-chain version of legacy financial products. However, Launch Coin is the highlight, bringing forth the Believe app’s token and standing at the center of the Internet Capital Markets trend.

Launch Coin on Believe transforms meme coin creation on Solana. Users can launch directly from X with a ticker and name, as community hype drives funding. Nevertheless, as Believe controls the backend, risks of exposure loom large.

Data on the Dune dashboard shows the platform boasts over 17,000 tokens launched and 267,386 active traders.

While the total trading volume has reached a substantial $2.2 billion, highlighting the growing interest and participation, momentum may be easing.

Data on DexScreener corroborates this outlook, showing easy momentum in price action. Nevertheless, the price remains well above its floor, up 1,947% on the 4-hour timeframe.

Coinbase Refused Ransom Demand, Faces Backlash Amid Data Leak Scandal

One of the biggest stories this week in crypto was the Coinbase data breach incident. The exchange confirmed that rogue support agents leaked sensitive customer data, affecting some users.

The perpetrators are demanding $20 million in ransom, which Coinbase has rejected. The platform now offers a $20 million bounty to identify the culprits.

However, with leaked records ranging from government IDs to data as sensitive as home addresses, users have safety concerns. Some customers have reportedly suffered targeted phishing attempts and impersonation scams.

Meanwhile, the real outrage stems from the timeline, with allegations that the breach reportedly occurred in January but was only disclosed recently.

“Coinbase knew they had their user data stolen since January, but said nothing until now? We’ve had endless reports of Coinbase users being drained by impersonators. Now we know why,” wrote Duo Nine, a renowned analyst.

Critics argue the delay left users exposed for months. This incident highlights the risks of centralized data systems and may accelerate calls for decentralized identity and self-custody solutions.