The Daily: Binance pays $283 million in compensation following Friday’s depegs, bitcoin recovers above $114,000 as crypto market stabilizes after historic wipeout, and more

The following article is adapted from The Block’s newsletter, The Daily, which comes out on weekday afternoons.

Happy Monday! What a wild end to last week. Cascading liquidations saw at least $20 billion of leveraged positions wiped out as some cryptocurrencies briefly fell literally to zero during the largest-ever crypto liquidation event in U.S. dollar terms.

In today’s newsletter, Binance pays $283 million in compensation following Friday’s depegs, bitcoin recovers above $114,000 as the crypto market stabilizes following the historic wipeout, Hyperliquid’s upgrade enables permissionless perp market creation, and more.

Meanwhile, Ripple and Immunefi launch an “Attackathon” aimed at securing the proposed XRPL Lending Protocol.

Let’s get started!

P.S. CryptoIQ is now available to everyone. Take the test for a chance to win $20,000!

Binance pays $283 million in compensation following Friday’s depegs, covering user losses

Binance said it paid $283 million in compensation to users affected by the depegging of USDe, BNSOL, and WBETH on its platform during Friday’s historic crypto crash.

• The crypto exchange said the compensation covered futures, margin, and loan users who held the affected assets as collateral, plus verified losses from internal transfers and Binance Earn redemptions.
• “I do not think it is accurate to describe this as a USDe depeg when a single venue was out of line with the deepest pools of liquidity that experienced no abnormal price deviations whatsoever,” Ethena Labs CEO and co-founder Guy Young wrote in response to the incident.
• However, Binance disputed claims that the issue had caused the broader market contagion, arguing instead that the extreme downturn happened first.
• Binance blamed outdated limit orders from as far back as 2019 for the severe price drops in tokens like ATOM and IOTX.
• The exchange plans to add redemption prices to index weights and introduce a soft price floor for USDe, while continuing to review and adjudicate pending user compensation claims.

Bitcoin recovers above $114,000 as crypto market stabilizes following historic wipeout

Bitcoin rebounded above $114,000 and Ethereum back over $4,000 as the crypto market stabilized following Friday’s largest crypto liquidation event in history.

• Presto Research’s Rick Maeda said the crash was triggered by macro shocks — including new Chinese export curbs and U.S. tariff threats — rather than crypto-specific issues.
• The analyst added that the subsequent rebound was largely mechanical as leverage resets after thin liquidity amplified Friday’s wipeout.
• While the “Uptober” sentiment might have been dented by the turmoil, it is “perhaps not derailed,” he said, as attention shifts toward upcoming U.S. CPI data and Federal Reserve policy signals.

Hyperliquid activates HIP-3 upgrade enabling permissionless perp market creation

Hyperliquid activated its HIP-3 upgrade on mainnet, unlocking permissionless creation of perpetual futures markets on the network.

• The upgrade allows deployers who stake 500,000 HYPE to launch a perp DEX directly on HyperCore once onchain requirements are met.
• HIP-3 marks a key step toward decentralizing Hyperliquid’s perp listing process, integrating with HyperEVM for smart contracts and governance.
• HYPE surged 11% to around $42 ahead of the upgrade, lifting the cryptocurrency to a market cap of around $11.4 billion.

Dogecoin Foundation’s corporate arm to go public via merger with esports company

House of Doge, the corporate arm of the Dogecoin Foundation, is set to go public via a reverse merger with Nasdaq-listed esports firm Brag House Holdings under the ticker TBH.

• The combined entity will integrate Dogecoin-denominated payments, merchant services, licensing, and treasury operations to generate recurring revenue, according to a press release.
• House of Doge will control the majority of the merged company, with its CEO, Marco Margiotta, heading up the outfit, while Brag House CEO Lavell Juan Malloy II will continue to serve on the board and lead the Brag House vertical.
• The merger follows a string of House of Doge-linked deals, including a 21Shares ETP launch, a CleanCore treasury partnership, and a custody tie-up with Robinhood.

‘Don’t stop ₿elievin’: Strategy buys $27 million in bitcoin as total holdings reach 640,250 BTC

Strategy announced it bought another 220 bitcoin for $27.2 million at an average price of $123,561 last week, lifting its total holdings to 640,250 BTC worth about $73 billion.

• The latest acquisitions were made using proceeds from at-the-market sales of its perpetual preferred stocks, resuming weekly buys after a brief pause.
• Co-founder Michael Saylor hinted at the purchase announcement ahead of time, sharing an update on Strategy’s bitcoin acquisition tracker on Sunday, stating, “Don’t Stop ₿elievin’,” following a chaotic end to a week that saw billions of value wiped from the crypto sector.

In the next 24 hours

• U.S. FOMC member Michelle Bowman is scheduled to speak at 8:45 a.m. ET on Tuesday. U.S. Federal Reserve Chair Jerome Powell is due to follow at 12:20 p.m. Bank of England Governor Andrew Bailey will speak at 1 p.m.
• The Digital Asset Summit continues in London.

Never miss a beat with The Block’s daily digest of the most influential events happening across the digital asset ecosystem.

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