Ethereum Pectra Stays on Schedule Despite Testnet Failure

Ethereum Pectra Stays on Schedule Despite Testnet Failure

Ethereum developers confirmed that the Pectra upgrade will proceed as scheduled, despite the Holesky testnet failing to finalize earlier this week. The failed test, which aimed to simulate the upgrade before mainnet deployment, raised concerns about potential technical hurdles.

Ethereum Foundation’s Tim Beiko added: “If Holesky missed slot rate is <25%, start coordinating slashings. If not, determine next steps to get it there.” Developers agreed to move forward with the next testnet deployment on Sepolia, scheduled for March 5 to maintain the planned timeline.

Despite the team’s confidence, developer Jim McDonald stressed the need for transparency, warning, “People are watching.” He called for a manual cross-check of all code and public reporting to ensure the issue does not repeat on Sepolia.

If successful, the Pectra upgrade will bring major improvements, including smart contract wallets and flexible gas payments using stablecoins. The upgrade will also increase Ethereum’s staking capacity, raising the maximum stake limit from 32 ETH to 2,048 ETH.

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SEC Ends Consensys Lawsuit Over MetaMask Services

The SEC has dropped its lawsuit against Consensys, which alleged the company illegally offered staking and digital asset swaps through MetaMask. Ethereum co-founder Joseph Lubin confirmed the decision, stating, “Now we can get 100% back to building.” The lawsuit, filed in June 2024, accused Consensys of making over $250 million in fees from these services.

The case dismissal follows Consensys’ countersuit against the SEC, which challenged the agency’s stance on Ethereum’s classification. In 2024, the SEC abandoned its investigation into ETH, which Lubin attributed to Consensys’ legal pressure. With the lawsuit closed, MetaMask’s staking and swap services remain unaffected.

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Gemini and Justin Sun SEC Cases Take Unexpected Turns

The SEC has dropped its probe into Gemini, informing the exchange on Monday that no enforcement action will be taken. Cameron Winklevoss, co-founder of Gemini, responded with outrage, demanding that all SEC staff involved be publicly fired for what he described as "an unlawful war against a lawful industry," claiming the investigation cost the company hundreds of millions of dollars in damages.

In a separate legal battle, the SEC and Justin Sun have filed a joint motion to pause their case, suggesting a potential resolution may be in the works. Sun, who was charged in March 2023 for allegedly selling unregistered securities through TRX and BTT bounty programs, recently became an advisor to Trump-backed World Liberty Financial after investing $75 million in the project.

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Bitcoin Whale 'Spoofy' Buys $344M as BTC Crashes

A Bitcoin whale known as "Spoofy" has accumulated 4,000 BTC worth $344 million on Bitfinex, taking advantage of Bitcoin’s drop below $90,000. This trader, notorious for market manipulation accusations dating back to 2017, was named after the practice of “spoofing”, placing large fake orders to influence market sentiment before canceling them.

Crypto analyst Saint Pump linked Spoofy to prior major accumulations, including buying 70,000 BTC during the FTX collapse when prices ranged between $16,000 and $40,000. Spoofy’s trades have historically signaled both bottoms and impending sell-offs, with the whale unloading 24,000 BTC in early 2024 as Bitcoin surged past $100,000.

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Data of the Day

The Crypto Fear & Greed Index has plummeted to 10, its lowest level since June 2022 (6 points at the time), when the market was recovering from the Terra, 3AC, and Celsius collapses. This sharp drop follows Bitcoin sinking below $86,000, dragging major altcoins down as Ethereum (-17%) and Solana (-18%) suffered double-digit losses.

The index peaked at 84 last month, fueled by Trump’s election and Bitcoin’s record $109,000 high, but has since reversed as institutional outflows increase and short-term traders exit positions. Despite the extreme fear, historical data suggests that similar corrections of 20-30% have previously preceded strong price rebounds in crypto markets.

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More Breaking News

• A US congressman introduced the MEME Act to ban politicians and families from issuing or profiting from memecoins after the Melania and TRUMP token launches.
• The FBI urged the crypto industry to help track and block laundering of Bybit’s $1.5 billion hack, linking it to North Korea hackers.
• Bybit obtained in-principle approval for a UAE license days several days ago, signaling global expansion despite recent security challenges.
• Web3 firm QuickNode launched a $65 million accelerator, RollOut, backed by Google, Coinbase Ventures, and Dragonfly to support Layer 2 startups.
• Gotbit founder Aleksei Andriunin was extradited to the US for fraud and market manipulation after allegedly falling for an FBI “trap token.”
• Sky (formerly MakerDAO) integrated its USDS stablecoin into Berachain using Polaris to boost liquidity via Berachain’s Proof of Liquidity model.

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