Trump Family-Backed World Liberty Financial Token Lags Broader Crypto Rally After Billion-Dollar Crypto I

The article says bitcoin security incidents are ongoing after a reported $100 million Coldcard hardware wallet exploit. It also reports volunteer “Bitcoin Red Team” audits using AI found about 5,000 vulnerabilities across nearly 400 projects, including 85 critical and 635 high-severity bugs. It adds BTCPay Server users were urged to update after a critical flaw was reportedly exploited, with funds stolen.

Trump Media and Technology Group ended its deal with Crypto.com to form a digital treasury company to buy billions of dollars of Crypto.com’s CRO token. They also dropped plans to bring prediction market contracts to Truth Social and to have Crypto.com service certain ETF offerings. Crypto.com CEO Kris Marszalek said current market conditions made the proposed ETFs and DAT not viable.

Michael Saylor, Strategy (Nasdaq: MSTR) executive chairman, said he used OpenAI’s ChatGPT to help design a Bitcoin-backed convertible preferred stock, STRK, with a variable monthly dividend to keep price near $100. Strategy raised about $15 billion via preferred-stock products. The company also sold 1,638 BTC for ~$104.7M and held 842,138 BTC as of Aug. 6.

According to DeFiLlama, Aave’s TVL fell about $8B from roughly $26.4B to $18.6B after a $293M Kelp DAO hack. Lookonchain said attackers used drained 116,500 Kelp DAO rsETH tokens as collateral on Aave v3, creating about $195M bad debt and triggering withdrawals. AAVE fell nearly 20% to about $89.5. Aave froze rsETH markets on v3 and v4.

Ethereum’s proposed EIP-8363 “Tapered Issuance Burn” would gradually cut staking rewards, aiming to reduce new issuance to zero once 50% of ETH is staked, according to the proposal authors. Critics including Bitwise, Bitwise’s Steve Berryman, Lido Labs and Aave founders say it could harm DeFi, decentralization and institutional adoption. Ethereum has about 41.5M ETH staked, ~34% of supply, earning ~2.67%, per Ethereum Validator Queue.

Grayscale, via an SEC filing dated Aug. 6, amended its $1.6 billion Ethereum Staking Mini ETF (ticker ETH) to make staking the default for nearly all held ETH. The change follows an IRS deadline and requires quarterly cash payouts from staking rewards. The fund had 839,556 ETH, with 80.8% staked and about 161,000 ETH idle; it reported $27.3 million net rewards since staking began.