cryptonewsflash

Musk’s actual involvement in crypto is much smaller and more cautious than many people think.
This guide explains what crypto Elon Musk personally owns, what his companies hold, which coins are truly connected to him, and how to avoid scams using his name.
What Are Elon Musk Cryptos?
The phrase “Elon Musk cryptos” refers to two things.
First, the coins Musk has confirmed he owns: Bitcoin (BTC), Ethereum (ETH), and Dogecoin (DOGE). These are major, well-established cryptocurrencies with billions traded daily.
His companies, Tesla and SpaceX, also hold large amounts of Bitcoin, making them among the largest corporate holders in the world.
The second category includes hundreds of coins that use Musk’s name or image, like “ElonCoin,” “MuskToken,” and “X Coin.” These have no real connection to him, are created by third parties, and are almost always very risky. Musk has clearly stated he is not involved with any of them.
Elon Musk’s Confirmed Crypto Holdings in 2026
In July 2021, Musk confirmed that he personally owns Bitcoin, Ethereum, and Dogecoin. At The B Word conference and on social media, he joked that these are just “ASCII hash strings,” highlighting that cryptocurrencies are really just digital data. As of 2026, he has not announced owning any other coins.
Bitcoin (BTC)
Musk received 0.25 BTC from a friend in 2018, the earliest known record of his Bitcoin holdings. He has not disclosed how much he currently owns. While he does hold Bitcoin, Musk has criticized it for using too much energy.
Tesla even paused BTC payments in 2021 because of this and its slow speed, which he said stems from how it was originally designed in 2008.
Ethereum (ETH)
Confirmed at The B Word conference in 2021, Musk described Ethereum as a practical smart contract network rather than a meme asset. However, he has not revealed specific quantities and has made fewer public comments about ETH than about the other two coins.
Dogecoin (DOGE)
This is where Musk’s enthusiasm is most visible and documented. He has championed Dogecoin since at least 2019, citing its lower transaction fees, faster block times, and the community-driven, humorous spirit of the project.
He has referred to it as a “people’s crypto” on multiple occasions. Despite acknowledging its origins as a joke, Musk argues that its blockchain infrastructure makes it more practical for everyday payments than Bitcoin.
What Musk Does Not Hold
In October 2021, when asked directly by a social media user how much Shiba Inu (SHIB) he owned, Musk replied, “None.”
He has issued similar denials for other tokens bearing his name or image. To date, Musk has publicly stated that his only personal cryptocurrency holdings are Bitcoin, Ethereum, and Dogecoin.
Corporate Holdings: Tesla and SpaceX
Musk’s influence on crypto is not limited to his personal wallet. Two of his companies hold substantial Bitcoin positions, and their actions have at times moved global markets.
Tesla
In February 2021, Tesla bought $1.5 billion worth of Bitcoin, helping drive a major market rally. The company later sold some to raise cash. As of today, Tesla holds 11,509 BTC, bought for about $386 million, making it one of the largest corporate Bitcoin holders.
Tesla also holds Dogecoin and has accepted DOGE for online merchandise since January 2022. Notably, Tesla has not fully separated its BTC and DOGE values in its most recent digital-asset disclosures.
SpaceX
SpaceX has maintained Bitcoin holdings since 2021, though the company has historically been less transparent than Tesla about its exact position. In July 2025, blockchain analytics identified a SpaceX-controlled wallet transferring approximately $153.7 million in BTC. Even after that transfer, SpaceX reportedly retained over $850 million in Bitcoin reserves.
Top Elon Musk Cryptos by Market Relevance in 2026
Bitcoin
Bitcoin remains the largest and most important crypto in Musk’s confirmed holdings and Tesla’s treasury. In 2025, Musk’s new political group, the America Party, took a pro-Bitcoin stance, adding a political angle to his crypto involvement. Experts speculate he may buy more BTC in 2026, but nothing is certain.
Dogecoin
Dogecoin is the crypto most closely tied to Musk. Once a joke coin, DOGE has survived while many other projects failed, thanks to Elon Musk’s backing.
In early 2026, DOGE ETFs launched, bringing in millions of dollars in inflows. It’s accepted at AMC Theatres, tested at GameStop, and usable for Tesla merchandise. While its price no longer spikes dramatically after Musk’s comments, DOGE still has a market value above $15 billion.
Ethereum
While Musk owns Ethereum, he has also praised its smart-contract capabilities. He talks less about ETH than Dogecoin, but his confirmed holdings keep it relevant. Ethereum’s widespread use in DeFi, NFTs, and stablecoins gives it a strong market presence that even Musk cannot drastically move.
How Elon Musk Influences the Crypto Market
Musk’s influence on digital assets operates through several distinct channels:
Social media posts.
One post on X, a meme, a short reply, or an endorsement, can move prices, especially for Dogecoin and other meme coins. Studies tracking engagement between 2024 and 2026 show that Musk’s posts remain among the most reacted-to financial messages online.
However, the magnitude of these moves has diminished as the market has grown and diversified. Price swings after his comments now tend to be smaller and shorter-lived than in 2020–2021.
Corporate treasury decisions
Tesla’s $1.5 billion Bitcoin purchase in 2021 showed that major companies could hold crypto as a treasury asset. That decision triggered a market rally worth tens of billions in capitalization. Subsequent moves, such as partial BTC sales and DOGE integration for merchandise, continue to set precedents that other companies closely watch.
Payment integration signals
Musk has promoted Dogecoin payments on X and in real-world projects like the Las Vegas Loop. X Money, a payment system under development, fuels speculation about broader crypto use.
Political and regulatory signals
Musk’s advisory role in the U.S. government’s DOGE Department (2024–2025) and public comments on blockchain and regulation shape how lawmakers and regulators approach crypto.
The SpaceX–xAI merger.
In February 2026, SpaceX acquired Musk’s AI company xAI in a $1.25 trillion all-stock deal. This sparked speculation about potential crypto use in space-based AI and satellite networks.
Overall, the “Musk effect” is mostly a sentiment amplifier: in strong markets, it can accelerate rallies; in weak markets, attention-driven assets may fall faster.
Top Elon Musk Meme Coins to Watch in 2026
Dogecoin (DOGE)
The only meme coin with a real, documented connection to Musk. DOGE is still the main celebrity-driven crypto and has more support than most meme coins thanks to its spot ETF pipeline and growing merchant adoption.
One caution: unlike Bitcoin, DOGE has no supply cap; around 5 billion new DOGE are created each year, which matters for long-term holders.
Floki (FLOKI)
Named after Musk’s Shiba Inu puppy, Floki launched in 2021 and quickly became a well-known meme coin. Unlike purely speculative tokens, Floki has a real ecosystem: a play-to-earn game (Valhalla), DeFi products (FlokiFi), and an educational platform (Floki University).
It runs on Ethereum and BNB Chain and has marketing partnerships with sports teams worldwide. Floki combines meme culture with real development, making it unique in the space.
Shiba Inu (SHIB) Launched as a “Dogecoin killer,” SHIB is the largest Ethereum-based meme coin by market cap. It now has its own ecosystem, including a decentralized exchange (ShibaSwap), a Layer-2 blockchain (Shibarium), and governance tokens (LEASH and BONE).
Musk has confirmed he does not hold SHIB, but its size and liquidity make it a major player in the meme-coin world. Notably, half of SHIB’s supply was originally sent to Ethereum co-founder Vitalik Buterin, who donated part of it to COVID-19 relief in India.
Pepe (PEPE) Inspired by the Pepe the Frog meme, PEPE launched in April 2023 and hit a $1 billion market cap in just three weeks. It has stayed popular longer than many competitors.
While Musk isn’t directly connected, his activity often fuels the meme-coin market, which benefits PEPE. Its strong liquidity and listing on major exchanges make it easy to trade.
Bonk (BONK) A Solana-based meme coin, BONK was airdropped to community members during a challenging period for the Solana network. It has grown into one of Solana’s main community tokens, with fast transactions and increasing exchange support. Musk isn’t directly involved, but his influence on risk-on sentiment benefits it.
The Legal Landscape: The Dogecoin Lawsuit In June 2022, a Dogecoin investor sued Elon Musk, Tesla, and SpaceX, alleging they ran a pyramid scheme by promoting Dogecoin and seeking $258 billion in damages. Musk’s lawyers argued that his posts and memes were protected speech, not market manipulation.
The case was dismissed by a federal judge in August 2024. The plaintiffs dropped their appeal in November 2024, ending the lawsuit.
Analysts view this as a key test of how the law treats celebrity influence in crypto markets.
How to Verify Any “Official” Musk Crypto Claim Given the volume of scams exploiting Musk’s name, a basic verification checklist is essential before engaging with any token claiming his association:
Check the primary source. Musk’s confirmed statements come from his verified X account (@elonmusk) and SEC filings related to Tesla’s treasury. Any claim of a new holding, endorsement, or official partnership not originating from these sources should be treated as unverified.
Look for SEC disclosures.
Corporate crypto holdings are reported in quarterly and annual filings. If a claim about Tesla or SpaceX holding a new token cannot be verified in SEC or equivalent regulatory filings, it is almost certainly false.
Search Musk’s X history.

His feed is public and searchable. Genuine endorsements will have traceable posts. Be cautious of screenshots without verifiable links; they can easily be fabricated.
Ignore influencer amplification.
Musk does not run personal tokens. Any coin claiming to be the “official Elon Musk token” is a third-party creation.
Beware of hype.
Numerous accounts on X, YouTube, and Telegram claim exclusive knowledge of Musk’s “next crypto pick”. None of them has verified information. This content is designed to manufacture urgency and drive purchases that benefit early holders at the expense of later buyers.
How to Evaluate Elon Musk Crypto Before Investing
Whether it’s a confirmed holding like Bitcoin, Ethereum, or Dogecoin, or a meme coin linked to Musk, following a clear evaluation process helps reduce risk:
Assess fundamentals independently of Musk Ask: Would this coin have value without Musk’s attention? Bitcoin and Ethereum clearly would. Dogecoin has some real-world use and recognition. Many meme coins fail this test.
Check liquidity and market cap
Low liquidity can cause wild price swings. A high market cap with low trading volume may be misleading. Favor coins that trade on major exchanges with real activity.
Understand tokenomics
Look at supply rules, inflation, and founder vesting schedules. For example, DOGE has no supply cap, with 5 billion new coins minted yearly. This does not automatically disqualify it, but should guide expectations.
Size your position wisely
Musk-linked meme coins can rise or fall dramatically. Treat them as small, speculative parts of your portfolio, not core holdings.
Watch for market manipulation
Rapid price jumps without news are often engineered by early holders or coordinated groups. These “pump-and-dump” moves can trap inexperienced investors.
The Bottom Line In 2026, Elon Musk’s confirmed crypto holdings are straightforward: Bitcoin, Ethereum, and Dogecoin, along with significant Bitcoin exposure through Tesla and SpaceX. Beyond these, many coins claim a connection to him without proof.
The “Musk effect” is real, but changing. Price moves from his comments are smaller and shorter than in earlier years. The market now rewards real utility, strong communities, and solid fundamentals alongside hype. Musk remains a major influence, but the crypto ecosystem is more complex and competitive than ever.
For investors, the rule is simple: verify the connection, focus on fundamentals, and do not rely on celebrity endorsements instead of research.
#CryptoNewsFlash

#Cardano founder Charles Hoskinson recently revealed how the project plans to address the long-term risks posed by quantum computing.
Speaking in an interview on Gokhshtein News Network, Hoskinson indicated that Cardano is proactively addressing concerns surrounding quantum computing before they become an immediate threat.
Although experts believe practical quantum threats remain years away, several blockchain projects, including Cardano, have already started researching quantum-resistant alternatives.
Key Points
Charles Hoskinson revealed that Cardano is proactively preparing for the potential long-term risks posed by quantum computing.Hoskinson said the network is currently voting on a dedicated quantum strategy, with a research proposal centered on quantum resistance expected next week.He noted that the initiative involves several partners alongside multiple advanced technical components designed to strengthen Cardano’s future security.Hoskinson also sought to ease concerns about implementing quantum-related upgrades, noting that Cardano already conducts regular hard forks each year.
Cardano Preparing for Quantum Computing Risks
During the interview, Hoskinson explained how Cardano intends to prepare for future quantum computing risks, emphasizing that the network’s governance system makes large-scale upgrades easier to coordinate.
According to him, the Cardano ecosystem is currently voting on a quantum strategy while also preparing a research proposal scheduled for release next week.
He stressed that the initiative involves multiple partners, additional technical features, and a long-term migration path designed to help users transition toward quantum-resistant infrastructure when necessary.
Cardano Can Replicate Bitcoin’s BIP-361 Solution to Address Quantum Threats: Hoskinson
Hoskinson suggested that Cardano could replicate Bitcoin’s proposed BIP-361 solution to protect the network against quantum threats.
For context, BIP-361 is a proposed Bitcoin upgrade that aims to defend the network against quantum computing risks by enforcing a phased five-year migration from legacy addresses to quantum-resistant addresses.
According to Hoskinson, Cardano could adopt a similar approach without major difficulty. He downplayed the complexity of implementing large-scale upgrades, noting that Cardano already conducts hard forks regularly.
“It is very easy to facilitate that migration path. It’s just a hard fork that we implement every year,” Hoskinson stated.
Hoskinson Stresses Importance of Governance in Tackling Quantum Threats
Meanwhile, Hoskinson emphasized the broader importance of decentralized governance within blockchain ecosystems. He explained that governance systems become especially valuable when communities must coordinate responses to major threats or structural changes.
According to Hoskinson, this importance motivated Cardano to invest heavily in governance infrastructure. He argued that governance enables decentralized communities to make collective decisions during critical moments.
To illustrate the concept, Hoskinson compared future quantum threats to an asteroid approaching Earth. He argued that even countries facing geopolitical tensions would still need to cooperate to solve a shared existential problem.
Using China, Russia, and the United States as examples of nations engaged in a “soft war,” Hoskinson explained that blockchain governance creates a framework for collective decision-making during crises.
He also noted that governance is not necessarily ideal for everyday operational decisions because it can slow processes down. However, he maintained that governance becomes essential when ecosystems face major changes such as tokenomic adjustments, strategic partnerships, or security threats like quantum computing.
Blockchain Projects Intensifying Efforts Against Quantum Risks
His remarks come as blockchain projects seek early solutions to the risks posed by future advances in quantum computing. Recently, several projects have moved beyond theoretical discussions and started proposing or implementing post-quantum cryptography solutions designed to defend against rapidly advancing quantum capabilities.
Last month, Ripple unveiled a four-phase roadmap aimed at making the XRP Ledger resistant to quantum threats by 2028. Meanwhile, Bitcoin developers proposed BIP-360 and BIP-361 to help migrate vulnerable BTC holdings into safer addresses.
In addition, developers at Blockstream proposed adopting hash-based post-quantum signature systems such as SHRIMPS and SHRINCS to strengthen Bitcoin’s resistance against quantum attacks.
#CryptoNewsFlash

The cryptocurrency market has repeatedly shown that small-cap and emerging blockchain projects can deliver explosive returns during strong bull cycles. Shiba Inu demonstrated this clearly in its early days, as the token surged by millions of percent within a year.
However, finding the next “1000x coin” remains extremely challenging. Despite this, investors continue searching for high-potential crypto assets ahead of the 2026 bull market. In this guide, The Crypto Basic explores the top 10 crypto coins with 1000x potential in 2026. It also explains how investors identify these projects, the best accumulation strategies, and the risks involved.
Explore the top 10 crypto coins to invest with the potential for 1000x gains in 2026, including elizaOS, Monad, Midnight, and Zora.
What Does “1000x Potential” Mean in Crypto?
A crypto coin with 1000x potential is an asset capable of increasing 1,000 times its current value. To put this into perspective, a $100 investment could theoretically grow to $100,000 if it achieves a 1000x increase. Likewise, a token priced at $0.001 could rise to $1. A project with a $10 million market cap could also expand to $10 billion.
However, 1000x gains are extremely rare. They usually occur in early-stage projects with very low market caps, strong communities, unique technology, and rapid adoption during bull markets. Viral investor attention also plays a major role.
Historically, coins like Bitcoin, Ethereum, Solana, and Shiba Inu delivered massive gains to early investors. However, many speculative projects with similar characteristics eventually failed. Therefore, risk management remains essential.
How To Identify Crypto Coins With 1000x Potential in 2026
The crypto market is heavily saturated. CoinMarketCap currently tracks more than 8,400 cryptocurrencies. As a result, identifying the next 1000x project has become increasingly difficult.
Nonetheless, investors can improve their chances by focusing on several key factors instead of chasing hype alone.
Low Market Caps
Projects with smaller market caps often have greater growth potential. In contrast, coins already valued at hundreds of billions of dollars are unlikely to generate 1000x returns. Assets valued at less than $1 billion generally offer greater upside potential.
Tokenomics Strong tokenomics also matters. Projects with staking incentives, burn mechanisms, low circulating supply, and healthy vesting schedules tend to attract stronger investor interest. These factors can support long-term price growth.
Strong Community Communities play a major role in crypto adoption. Viral attention on platforms like X, Discord, Telegram, and Reddit can rapidly increase momentum and visibility.
Active Development Strong developer activity often reflects long-term commitment from project teams. In addition, frequent GitHub updates, strategic partnerships, and major network upgrades usually improve investor confidence.
Market Narrative Alignment The biggest crypto winners often align with dominant market narratives. In 2026, major narratives may include AI, real-world assets (RWA), privacy-focused protocols, and scalable Layer-2 ecosystems.
Kyuzo’s Friends (KO) Launched in 2025, Kyuzo’s Friends (KO) is a community-driven crypto project focused on gaming, NFTs, and digital social engagement. The platform aims to create an interactive ecosystem where users participate in gamified experiences and community rewards.
Interest in SocialFi and blockchain gaming continues to grow rapidly. Therefore, KO could attract strong attention as Web3 entertainment adoption expands. Its low market cap of under $3 million also increases its potential upside.
elizaOS (ELIZAOS) Formerly known as ai16z, elizaOS (ELIZAOS) combines artificial intelligence and decentralized finance to create AI-driven investment and governance systems for Web3 ecosystems. The platform uses autonomous AI agents to analyze market trends, optimize strategies, and improve decentralized decision-making.
Analysts believe the project could experience massive growth in 2026 due to rising interest in AI. As AI-focused crypto narratives continue dominating investor attention, elizaOS may emerge as a major player in the AI blockchain sector.
Nosana (NOS) Nosana (NOS) is a decentralized GPU computing platform built to support artificial intelligence workloads and cloud computing services. The platform allows users to share idle computing resources while helping developers access affordable distributed infrastructure.
AI and decentralized computing remain one of the strongest narratives in crypto. Consequently, demand for decentralized computing power could increase significantly in 2026, potentially positioning Nosana for major growth.
aPriori (APR) aPriori is a native liquid staking and MEV optimization protocol built on the EVM-compatible Monad blockchain. The platform allows users to stake MON tokens in exchange for aprMON, a liquid staking asset that can be deployed across the Monad DeFi ecosystem to generate additional yield.
Beyond staking, aPriori integrates MEV-powered infrastructure and AI-driven order flow tools like Swapr to maximize rewards and trading efficiency. Given its early position in the Monad ecosystem, some analysts believe aPriori could deliver substantial gains in 2026.
ZEROBASE (ZBT) ZEROBASE (ZBT) develops privacy-enhanced blockchain infrastructure using zero-knowledge technology to improve scalability and secure data verification. The project aims to support efficient decentralized applications while protecting user and enterprise data.
Although the beta platform launched in December 2024, the ZBT token debuted on exchanges earlier in October 2025 across Binance, Bybit, and Upbit. Since zero-knowledge technology remains one of crypto’s strongest narratives, Zerobase could become a major contender in Web3 infrastructure in 2026.
Zora (ZORA) Zora (ZORA) is a decentralized creator ecosystem that allows artists, developers, and communities to mint, share, and monetize digital content on-chain. The ZORA token launched in April 2025, four years after its NFT platform debuted on Ethereum.
The project focuses heavily on empowering creators through open NFT infrastructure and decentralized media tools. Supporters believe ZORA could experience substantial growth as the creator economy and Web3 social platforms continue evolving.
Peanut the Squirrel (PNUT) Peanut the Squirrel (PNUT) is a Solana-based meme coin project that combines viral internet culture with community-driven tokenomics. Although meme coins remain highly speculative, strong social engagement and online momentum can trigger explosive rallies during bullish market cycles.
PNUT’s branding and active community position it as a potential standout meme token in the next altcoin season. After reaching a peak valuation of $2 billion shortly after launch, the token later crashed by 97%. However, this sharp correction flushed out speculative leverage and pushed the project into a deeper accumulation phase. Therefore, renewed buying pressure could trigger another strong rally.
Monad (MONAD) Monad is a high-performance Layer-1 blockchain designed to provide Ethereum compatibility alongside significantly faster throughput and lower latency. The network focuses on improving transaction execution while maintaining decentralization and scalability.
Meanwhile, demand for faster smart contract platforms continues to rise. As a result, Monad has positioned itself as a promising infrastructure project capable of attracting developers, DeFi applications, and institutional interest. Although its valuation already exceeds $300 million, MONAD could still deliver strong gains if momentum around scalable blockchains accelerates.
Midnight (NIGHT) Midnight is a next-generation blockchain that uses zero-knowledge proof technology to deliver programmable privacy while maintaining compliance and data ownership. The network enables applications to protect sensitive transaction, user, and business data while still supporting selective regulatory disclosure.
The project operates on a dual-token structure, featuring NIGHT and DUST. Since launching in December 2025, NIGHT has gained strong traction and now trades across multiple exchanges, including Binance. Analysts believe demand for privacy-preserving infrastructure could drive significant growth for the project in 2026.
Aster (ASTER) ASTER powers Aster DEX, a next-generation decentralized exchange designed to improve on-chain trading. The platform combines spot and perpetual trading markets into a unified ecosystem for global users.
The project runs on Aster Chain, a high-performance privacy-focused Layer-1 network built by YZi Labs. In addition, the ecosystem eliminates front-running through native MEV-free execution. ASTER has attracted attention due to backing from Binance founder Changpeng Zhao. As adoption continues to grow, ASTER could become one of the major gainers in 2026.
Investment Strategies to Maximize Gains on 1000x Coins Investing in high-risk altcoins requires patience, discipline, and a clear strategy. Even promising projects can experience severe volatility.
Dollar-Cost Averaging Into High-Potential Altcoins
Dollar-cost averaging (DCA) involves investing fixed amounts at regular intervals rather than making a single large purchase. This strategy allows investors to buy more tokens during dips and gradually lower their average entry price.
DCA offers several advantages:
Reduces emotional tradingLimits volatility impactHelps avoid poor market timingBuilds positions gradually
When to Enter and Exit a Potential 1000x Crypto Trade
Timing remains one of the most important factors in crypto investing, especially when targeting high-growth assets.
Entry Strategies
Investors often monitor:
Rapid ecosystem growthRising developer activityPrice breakouts after consolidationMajor exchange listingsIncreasing on-chain activityStrong bull market momentum
Exit Strategies
Experienced investors usually take profits gradually rather than holding through extreme volatility. Common strategies include:
Selling portions after major ralliesRecovering initial capital earlyUsing trailing stop-loss strategiesRebalancing portfolios periodically
Maintaining discipline and avoiding emotional decisions often proves critical in highly volatile markets.
Risks of Investing in Potential 1000x Crypto Coins
Although early-stage cryptocurrencies can generate massive returns, they also carry significant risks. They include:
Extreme Volatility
Small-cap cryptocurrencies are highly volatile. Prices can rise or fall dramatically within short periods.
Liquidity Risks
Many early-stage projects have low trading volume and weak liquidity. Consequently, investors may struggle to exit positions during sharp market declines.
Regulatory Uncertainty
Governments worldwide continue developing cryptocurrency regulations. These policies could negatively impact specific sectors, projects, or exchanges.
Project Failure
There is also the risk that the project might fail abruptly due to weak adoption, poor tokenomics, security vulnerabilities, and limited funding.
Market Manipulation
Low-cap cryptocurrencies remain highly vulnerable to pump-and-dump schemes, whale activity, and speculative manipulation. Due to these risks, investors should diversify across multiple assets and avoid investing more than they can afford to lose in speculative crypto projects.
#CryptoNewsFlash

Former Ripple CTO David Schwartz claims blockchain systems may work better without incentives, arguing against reward-based models.
Schwartz believes incentives like mining and staking introduce unnecessary costs and misaligned interests. According to him, users already have a natural motivation to keep systems working, and removing artificial rewards can lead to cheaper and fairer blockchain networks.
Key Points
David Schwartz recently revisited a March 2020 talk based on ideas he first developed in 2012.He said blockchains need agreement on transaction order, not costly incentives, to solve the double-spend problem.According to him, mining and staking make participants seek higher rewards when users want lower fees.Incentive systems drive centralization, as participants with lower costs or higher capital gain dominance.The XRP Ledger removes incentives, relying on simple rules and user interest to maintain fairness and low costs.
Solving the Double-Spend Problem
Notably, Schwartz discussed these ideas during a March 2020 presentation, which he recently revisited, imploring the crypto community to watch. In that talk, he explained that blockchain systems may work better when they remove artificial incentives entirely.
His argument centered around the need to solve the double-spend problem. Notably, for any network like Bitcoin to function, users must reach a point where everyone agrees that a transaction has happened. Without this shared agreement, people cannot safely exchange goods or services for digital assets.
Schwartz pointed out that blockchains already have three important features: a public record of all data, clear rules for what makes a transaction valid, and a shared understanding of what each transaction does.
However, he said these are not enough on their own, especially when there are multiple valid ways to move forward, such as sending the same asset to different people.
Natural and Artificial Stakeholders
Speaking further, the former Ripple CTO suggested that blockchain ecosystems have two types of stakeholders: the natural and forced ones.
According to him, natural stakeholders are users who depend on the system for real needs, such as making payments or storing value. Forced stakeholders, like miners, exist only because the system design requires them.
He argued that forced stakeholders take value from natural users, creating extra cost in the system. For example, Bitcoin miners earn rewards and fees, but the money comes from users who want their transactions processed. This creates a conflict: users want low fees, while miners benefit from higher ones.
He compared this to platforms like eBay, where the company charges fees to buyers and sellers. To him, blockchain systems were meant to reduce this kind of friction, not repeat it in a different form.
The Cost of Proof of Work
Building on this premise, Schwartz raised concerns about proof-of-work systems, especially their high cost. He explained that Bitcoin needs to generate millions of dollars every day just to keep mining running, which ties the network’s security to its market value.
According to him, honest participants must spend more to protect the system than attackers might need to break it. He sees this as a weakness. Schwartz also noted that much of this money leaves the ecosystem and goes to electricity providers and hardware makers.
He added that mining creates a “race to the bottom,” where miners must cut costs to survive. This pushes them to focus on short-term profit instead of improving the network. Over time, mining also becomes concentrated in areas with cheap power, which weakens decentralization.
Staking and Similar Incentive Models
Schwartz also questioned staking and slashing systems, which networks like Ethereum have explored. He said locking up a volatile asset comes with risk, so participants expect high rewards in return. This limits how much cheaper these systems can be compared to proof of work.
He pointed out that staking depends on native tokens, and this creates challenges for networks that handle large amounts of other assets, such as ERC20 tokens. Just like mining, staking can lead to competition that pushes the system toward centralization.
He also mentioned tax issues, since some countries treat staking rewards as income. Notably, this adds another cost for users and supports his view that incentive-based systems place extra burdens on participants.
The XRP Ledger Approach
Pointing out the decisions made in 2012, Schwartz explained how the XRP Ledger takes a different path. Specifically, it reduces the power of any single participant and removes features like transaction reordering that could be abused.
Instead, the system uses rules to decide which transactions to include and focuses on simply agreeing on their order. Schwartz said this process does not need expensive incentives because users already want the system to work properly.
He also explained that the XRP network limits the influence of bad actors and allows users to ignore them without losing anything. Since no one can profit from controlling the system, there is less reason to try to attack it.
Why “No Incentive” May Work Better
Schwartz concluded that artificial incentives bring more problems than benefits. Specifically, they can lead to centralization, create conflicts of interest, and increase costs for users.
On the other hand, systems based on natural incentives rely on users who already want the network to succeed. He called attention to Bitcoin full nodes as an example, where people support the network without direct payment.
He believes networks can offer lower fees, faster transactions, and better fairness by just removing incentives. In the end, he argued that users want systems that are reliable and affordable, not ones plagued by competition for rewards.
#CryptoNewsFlash

Bitcoin ($BTC) is showing clear signs of breaking out, climbing steadily over the past week and confirming bullish sentiment across the board. After weeks of consolidation, BTC$has moved from $57,200 to $62,430, gaining nearly +9.1% in just 7 days.
📈 7-Day Price Chart
Date Price ($)
Aug 1 57,200
Aug 2 58,350
Aug 3 57,800
Aug 4 59,020
Aug 5 60,200
Aug 6 61,250
Aug 7 62,430
🔥 Key Points
BTC has broken above key resistance at $60K
Institutional inflows are rising post-ETF accumulation
On-chain signals show increasing whale activity
RSI remains bullish but not overbought — room to run
Analysts are calling this the start of the "unbound phase", with targets set toward $65K and $70K if momentum holds. Volatility is expected, but the upside potential remains strong.
🎯 Support: $59,000
🎯 Resistance: $64,000
📊 Download Chart: BTC Price Chart
#BTCUnboundLegacy #Bitcoin #CryptoTrading #BitcoinTreasuryWatch #BTC #BullRun #CryptoMarket #Binance
#CryptoNewsFlash #OnChainData #BTCChart

The U.S. SEC recently issued its most comprehensive guidance to date on crypto exchange-traded products (ETPs).
Read more on: https://thecryptobasic.com/2025/07/07/sec-nears-streamlined-approval-for-xrp-solana-and-meme-coin-etfs-insiders-confirm/
#CryptoNewsFlash

#Bitcoin accumulation addresses have seen massive inflows in the past week, leveraging retail sell-offs to stack the pioneering cryptocurrency extensively.
Read more on: https://thecryptobasic.com/2025/02/06/something-big-coming-whales-accumulate-bitcoin-like-never-before/
#CryptoNewsFlash