This week's crypto landscape was marked by significant regulatory developments and shifting market dynamics. Major highlights include Gemini's IPO filing with the SEC, Do Kwon's guilty plea in the Terra collapse case, and OKX's massive $26 billion token burn. Regulatory tightening continued globally with Hong Kong strengthening custody rules and Google implementing stricter wallet licensing requirements. Meanwhile, traditional Bitcoin treasury strategies are losing their appeal as MicroStrategy faces trading pressure and investors pivot toward Ethereum opportunities and upcoming crypto IPOs.

Gemini Files for IPO

• The cryptocurrency exchange filed its S-1 registration statement with the SEC on Friday, officially beginning the process for its initial public offering.

Terraform Labs Founder Pleads Guilty to Fraud

• Do Kwon admitted to conspiracy charges involving fraud and wire fraud related to the TerraUSD stablecoin collapse.

• Kwon acknowledged that he "knowingly engaged in a scheme to defraud" investors who purchased the failed stablecoin.

OKX Burns $26 Billion in Tokens

• The exchange destroyed nearly 279 million OKB tokens worth over $26 billion at current market prices.

• The massive burn eliminated tokens acquired through buyback programs and company reserves, totaling approximately 65.26 million tokens.

Hong Kong Tightens Crypto Custody Rules

• Financial regulators issued new guidance requiring licensed virtual asset platforms to strengthen how they protect client funds.

• The updated requirements address security vulnerabilities exposed by recent incidents at overseas exchanges.

Turkish Exchange BtcTurk Reports Suspicious Activity

• Around $48 million in cryptocurrency was transferred from wallets linked to the Turkish exchange in what appears to be unauthorized activity.

• The transfers involved multiple tokens including ETH, AVAX, ARB, BASE, OP, MANTLE, and MATIC.

Google Implements Stricter Crypto Wallet Requirements

• Starting this fall, crypto wallet apps on Google Play Store must obtain proper licensing before distribution.

• Apps will need MiCA authorization in the EU, FCA registration in the UK, and FinCEN registration in the US.

• This will not impact self-custodial wallets.

Presidential Crypto Advisor Bo Hines Steps Down

• The former college football player and crypto investor is leaving his role leading the Presidential Council of Advisers for Digital Assets to return to private sector work.

MicroStrategy Adds More Bitcoin to Treasury

• The company purchased 155 Bitcoin for approximately $18 million between August 4-10, paying an average of $116,401 per coin.

• This brings MicroStrategy's total Bitcoin holdings to 628,946 BTC.

DeFi Development Corp Increases Solana Position

• The company bought an additional 110,000 Solana tokens valued at approximately $22 million, expanding its treasury holdings.

MicroStrategy's Bitcoin Proxy Status Under Pressure

• Hedge funds are increasingly dominating trading in MicroStrategy shares, while the company's largest shareholder Vanguard reduced its stake by 10% last quarter.

• The stock has been trading in one of its tightest ranges in years, with $360 serving as crucial support that has been tested multiple times recently.

Bitcoin Treasury Companies Lose Market Appeal

• MicroStrategy shares have fallen 13% since mid-July, while Tokyo-listed Metaplanet dropped 37% over the same period.

• The decline reflects a broader collapse in volatility across both Bitcoin and treasury stocks, reducing the premium investors once paid for leveraged crypto exposure.

Investment Flows Shift to New Opportunities

• Capital is moving toward Ethereum treasury companies and crypto IPOs as investors seek fresher opportunities beyond traditional Bitcoin proxies.

• The reduced volatility has weakened these companies' ability to amplify Bitcoin's upside moves, limiting their effectiveness as high-beta plays and their capital-raising power.