HashKey Global February Report: U.S. Strategic Reserves Boost Web3 Liquidity, Compliance Framework Becomes Core Industry Topic

1. Market Downturn, HashKey Global Grows Against the Trend

• Macroeconomic Pressure: High inflation in the U.S. (CPI exceeding 5% for five consecutive months) and unmet expectations for Federal Reserve rate cuts have led to a monthly decline of over 15% in BTC, with ETH and major altcoins generally retreating over 30%.
• Black Swan Event: In February, the cryptocurrency industry suffered losses of $300 million due to hacker attacks, with Bybit experiencing the largest single attack in history ($1.46 billion), triggering market panic and a 43% shrinkage in on-chain liquidity.
• Policy Risk: The Argentine president launched the state-backed meme coin LIBRA, intensifying market concerns over regulatory arbitrage and legitimacy, causing a short-term drop of 18% in the SOL ecosystem.

Price Source: CoinGecko, March 4th, 2025

2. Deteriorating Market Environment, Policies and Hacker Attacks Intensify the Winter

As of February 2025, the U.S. economy faces inflationary pressures, a tightening labor market, and indecisive Federal Reserve rate cuts, directly impacting the performance of risk assets like Bitcoin (BTC). In February, Bitcoin plummeted over 15%, while Ethereum (ETH) and major altcoins were also severely affected, leading to heightened market risk aversion.

Argentine President Javier Milei launched the LIBRA meme coin, raising concerns about the legitimacy and regulatory issues of state-level meme coins, resulting in a significant price correction for Solana. Bybit faced a $1.46 billion hacker attack, marking the largest theft in financial history, which triggered market panic and continued shrinkage of on-chain liquidity.

The Bybit incident serves as a deep warning that hackers can exploit multi-signature wallets to execute gap tampering of smart contract code, leading to cold wallet theft. The incident exposed potential vulnerabilities in traditional multi-signature technology (MPC), necessitating dual safeguards of physical isolation and regulatory audits. In response to industry turmoil, HashKey Global promptly voiced support for Bybit and condemned the hacker actions, while enhancing security systems and deepening compliance layouts to boost industry trust.

3. In-Depth Analysis of Exchange Security, Compliance Becomes the New Standard in the Industry

HashKey Security System

• System-level physical isolation: Hot and cold wallets are set up in independent secure facilities, with dedicated computers equipped with intrusion prevention systems. Hot wallet servers only handle user order demands, while cold wallet devices are completely physically disconnected from the internet.
• Dynamic quota management: Different jurisdictions set differentiated hot wallet ratios, for example, 2% for Hong Kong regulation and 10% for Dubai and Bermuda regulation.
• Intelligent risk control triggers: Fund transfers must be triggered by intelligent aggregation based on order demands, eliminating the possibility of human intervention.
• Bank-grade risk control for hot and cold wallet conversion:
• The operational process implements a "three-person four-eye" mechanism, covering wallet management, security audits, financial monitoring, and other departmental collaboration.
• Hardware-level separation of hot and cold wallets in independent secure facilities, with hot wallet servers handling order demands and cold wallet devices permanently physically disconnected from the internet.

Licensed Institution Innovative Practices

Hardware Security Partner: Thales

• Provides the highest level of security for wallet hardware security modules, ensuring keys are always stored in an intrusion-proof, tamper-proof, FIPS-validated secure environment.

eKYC Partner: Sumsub

• Offers world-leading identity verification technology with strict KYC data requirements, effectively preventing identity theft and fraud.

KYT Partners: Elliptic and Beosin

• Provide real-time transaction monitoring to identify abnormal fund flows and suspicious transaction behaviors, quickly blocking potential risks.

Market Surveillance Partner: Solidus Labs

• Deploys market behavior monitoring systems to detect and address market manipulation in real-time, ensuring fair trading.

Travel Rule Partners: GTR, VerifyVASP, CODE

• Ensures compliance for cross-border fund flows, meeting international anti-money laundering standards.

4. Strategic Reserves Activate Market Sentiment, Diverging Views on Bull and Bear Markets

The Trump administration announced the establishment of a U.S. strategic cryptocurrency reserve, with Bitcoin (BTC) and Ethereum (ETH) expected to be key assets. Among the five potential U.S. strategic reserve tokens—BTC, ETH, SOL, XRP, and ADA—HashKey Capital holds about 90%. In February, HashKey Capital launched a Top 20 index fund, focusing on investments in the top 20 tokens by market capitalization. However, market views on bull and bear trends remain divided. As the White House cryptocurrency summit approaches on March 7, investors should pay attention to policy details and market volatility opportunities.

HSK New Pool Yield Upgrade, Experience Fund Launch Benefits Doubled

HashKey Global continues to expand its support for quality assets, launching the $AR, #G7, and $KCS third phase Launchpool, providing users with more liquidity mining opportunities. Through Launchpool, users can stake idle $HSK to earn generous rewards and achieve asset appreciation. Meanwhile, upgrading HashKey Global VIP can increase locked yield rates by an additional 30%. Details: https://global.hashkey.com/en-US/launch/extra

Spot Listings: $BNB, $BTT, $AR, $XRP, #G7, $KCS, $BERA, $NFT, $BGSC

Futures Assets: $KAITO, $OM, $LAYER, $IP bera

5. HashKey Financing Attracts Attention, Licensed Layout Accelerates Global Expansion

On February 14, HashKey received a $30 million investment from the well-known Chinese venture capital firm Gaorong Capital, with a pre-financing valuation close to $1.5 billion. Investors in Gaorong Capital include major Chinese tech companies such as Tencent, Alibaba, and Xiaomi. Previously, HashKey raised nearly $100 million in Series A financing and became a unicorn on January 16.

Navigating Bulls and Bears, HashKey Global Leads the Future

HashKey Global MENA is about to obtain a license and will hold a press conference in Dubai, inviting industry security partners to witness.

HashKey Global has specially launched contract experience fund benefits to lower trading thresholds, allowing more users to try contract trading.