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BTC $96,420 +2.34% ETH $3,280 +1.82% SOL $185.40 -0.92% BNB $642.50 +0.45% XRP $2.18 +3.12% DOGE $0.082 -1.50% ADA $1.05 +0.80% AVAX $42.10 +1.15%
BTC $96,420 +2.34% ETH $3,280 +1.82% SOL $185.40 -0.92% BNB $642.50 +0.45% XRP $2.18 +3.12% DOGE $0.082 -1.50% ADA $1.05 +0.80% AVAX $42.10 +1.15%
04/05/2025

Web3 This Week: Major Shakeups From FDUSD, North Korean Hackers, and the NFT Decline

This past week, the Web3 world saw a wave of back-to-back events — from the FDUSD stablecoin crisis and the Southeast Asian earthquake to the growing threat of state-sponsored hackers. Here are the highlights you can't afford to miss: 1. FDUSD Loses Its Peg: A Crisis of Confidence and Binance's Role On April 2, Justin Sun — founder of Tron — posted on social media claiming that First Digital Trust (the issuer of FDUSD) had liquidity problems and could potentially become insolvent. The crypto community immediately

Web3 This Week: Major Shakeups From FDUSD, North Korean Hackers, and the NFT Decline

This past week, the Web3 world saw a wave of back-to-back events — from the FDUSD stablecoin crisis and the Southeast Asian earthquake to the growing threat of state-sponsored hackers. Here are the highlights you can't afford to miss:

1. FDUSD Loses Its Peg: A Crisis of Confidence and Binance's Role

On April 2, Justin Sun — founder of Tron — posted on social media claiming that First Digital Trust (the issuer of FDUSD) had liquidity problems and could potentially become insolvent. The crypto community immediately panicked, triggering a sell-off that pushed FDUSD below its $1 peg.

The incident brought back painful memories of past stablecoin collapses like UST. Binance, FDUSD's biggest backer after it walked away from BUSD, also came under scrutiny as the exchange's dependence on the stablecoin became impossible to ignore.

2. The 7.9 Magnitude Earthquake and Web3 Nomads in Chiang Mai

On the afternoon of March 28, a 7.9 magnitude earthquake in Myanmar sent shockwaves into Thailand, hitting Chiang Mai especially hard — home to a large community of digital nomads and Web3 builders.

Some eyewitnesses described scenes of panic in classrooms and offices, where people had no clear emergency protocols in place. Binance donated 500 BNB to Thailand and Myanmar, and coordinated with charitable organizations to support those affected.

3. Lazarus Group: Crypto's Most Dangerous Cyber Threat

A new report from Paradigm pulls back the curtain on the sophisticated operations of the Lazarus Group — a hacking organization with deep ties to the North Korean military. Their tactics include LinkedIn phishing attacks, cold wallet infiltration through fake software, and tricking engineers into signing fraudulent transactions.

Recent attacks targeting Axie Infinity, WazirX, and Bybit show that Lazarus is increasingly setting its sights on major crypto organizations, and its techniques are only getting more advanced.

4. The Crypto Cycle: From Euphoria to Sacrifice

Through the lens of "scapegoat theory," crypto markets tend to move through two phases: a period of irrational exuberance followed by a period of sacrifice. The 2021–2025 cycle illustrates this clearly — first came the meme coin frenzy, then the market-rattling shock of Donald Trump's own meme coin, which helped trigger a broader collapse.

Investors have yet to identify the next "scapegoat" — the catalyst needed to kick off a new cycle.

5. Privacy Pools: Privacy Protection That Plays by the Rules

Privacy Pools, launched in early April 2025 by a research team that includes Vitalik Buterin, offers a new approach to private transactions on Ethereum.

Unlike Tornado Cash, Privacy Pools lets users prove that their funds come from legitimate sources via zero-knowledge proofs — striking a balance between financial privacy and regulatory compliance, a meaningful step forward after years of legal controversy in this space.

6. Ethereum's Future: Yield-Bearing Stablecoins Rise, NFTs Sink

Coinbase is urging the U.S. government to allow Americans to earn yield on stablecoins. Meanwhile, NFT platform X2Y2 announced it will shut down at the end of April after trading volumes plummeted 90% from their peak. This reflects a growing imbalance within the Ethereum ecosystem — a large share of value is migrating toward DeFi and stablecoins, while NFTs and creator applications are steadily losing ground.

Wrapping Up

This past week served as a sharp reminder that the Web3 world is still maturing in an environment defined by risk and rapid change. From financial volatility and natural disasters to cybersecurity threats — any one of these forces can shake the entire market. But they also reveal a clear opportunity: to build more resilient, more secure foundations for the future.