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Staking is making a comeback (on Kraken), the big boys of crypto reported huge profits, and Linea is trying to right its wrongs
Matthew Ruley
February 05, 2025
Everyone loves making money. That’s what attracted so many of us to crypto, right? But Kraken and Tether are showing the world just who the biggest bags belong to. And it’s them.
The markets have been a little red. But we ain’t scared. Let’s get after it.
From the Dypto Crypto Newsroom
Linea Prepares For Launch, Cracks Down on Sybil Addresses
TLDR
Linea is a Layer 2 blockchain founded by the company Consensys, which also developed MetaMask.
They are releasing an airdrop to improve decentralization efforts for the ecosystem.
Developers filtered half a million sybil addresses so real users of the chain achieve the most value.
We know you guys love airdrops. We do, too. After posting about Jupiter a couple of weeks ago, we realized that while that was great and relevant news to Dypto Crypto readers, it doesn’t do much for those looking to get in on airdrops for themselves.
So here’s the latest news on an upcoming airdrop for the Linea network.
Why this is important.
Sybil attacks happen when a single bad actor creates multiple addresses (or user identities) to exploit systems. Think of it as bots gaming the system to snatch up tokens they’re not supposed to have.
In the case of airdrops, here’s how it works…for the most part. Fake users flood the field with fake wallets to grab a bigger slice of the pie. It’s like showing up to a buffet with a dozen disguises to eat more than your fair share.
Crypto projects are more actively filtering Sybil attacks as a way to enhance trust and ensure that genuine users are the main beneficiaries of their efforts.
These initiatives are about sustainability, building communities, and maintaining the integrity of decentralized systems.
Staking Is Back on Kraken
TLDR
Staking is back on Kraken!
It’s currently available to users in 37 states.
Kraken was one of the first major exchanges to offer staking but ceased services to US users as part of a settlement with the SEC in 2023.
After nearly a two-year hiatus, Kraken is reintroducing staking services for U.S. clients. If you’re new to crypto or just getting familiar with the term “staking,” don’t worry — we’ll break it down for you. Here’s what you need to know about Kraken’s latest move, why it’s important, and how it affects your crypto experience.
What’s the big deal?
Staking tokens helps secure the network and, in return, users earn rewards. PoS blockchains are run by validators. More validators means more decentralization, provided enough people are staking on the validators to make it worth the trouble.
Staking plays a massive role in the security and efficiency of PoS blockchains. It’s also become a popular way for crypto holders to earn passive rewards while supporting their favorite projects.
However. There is a catch. You can’t just put your tokens in and pull out of validators as you see fit. There is a lockup period that you have to commit to when you stake. A couple of years ago, this problem was solved by LSTs and LRTs.
Binance Labs Rebrands to YZi Labs — But Why?
TLDR
Binance Labs is rebranding as YZi Labs.
CZ will be involved in a mentor/coaching capacity.
Ella Zhang will be the CEO. She’s a co-founder of Binance Labs.
Binance Labs is officially rebranding to YZi Labs. For those new to crypto, Binance Labs was the venture capital powerhouse tied to Binance, a name you probably recognize as one of the biggest platforms in the game.
Why this matters to everyone.
If you’re new to crypto and wondering why this news matters, here’s the takeaway: By diversifying its focus, YZi Labs isn’t just betting big on Web3 or crypto alone — it’s hedging across technologies that could shape how we live, work, and interact with the world.
For startups, this means access to a broader range of resources, mentorship from some of the tech’s sharpest minds, and funding beyond the blockchain bubble.
For investors, it’s a signal that innovation is no longer isolated to crypto — it’s expanding, and fast.
For everyone, this means an expanded ecosystem of projects you might want to monitor, as they could impact everything from how you use the Internet to breakthroughs in healthcare.
Question of the Week
Coming from a YouTube subscriber - Blockchain is just a record-keeping or transactions. Where is the value of money part of it? I could never understand this.
Meme of the Week
Deep Dive - Crypto Firms and Huge Profits
2024 was a banner year for major crypto players like Kraken and Tether, showcasing record-breaking financial performances.
Kraken reported staggering growth, with $665 billion in total trade volume and 2.5 million funded accounts. These achievements highlight Kraken's ability to thrive despite global market volatility and regulatory scrutiny. Its profitability and stability present a strong option for those seeking reliable crypto exchanges.
Tether also demonstrated remarkable success by surpassing $13 billion in total profits for 2024, including $6 billion in Q4 alone. A year-end report verified by BDO revealed Tether's all-time high exposure to U.S. Treasurys at $113 billion and a reserve buffer exceeding $7 billion, a 36% increase from the previous year.
Additionally, the company issued $45 billion in USDT, further asserting its dominance in the stablecoin market and its ability to provide stability amidst crypto market volatility.
These developments underscore several key trends:
Global Adoption – The increasing number of users and growing demand for crypto trading signals expanding mainstream acceptance.
Institutional Confidence – Companies use crypto as a legitimate asset, reflected in Tether’s U.S. Treasury holdings and consistent demand for stablecoins.
Market Maturity – Leading players like Kraken and Tether are establishing sturdy infrastructures and emphasizing transparency, a positive sign for the market.
For beginners, this progress signals a more stable and maturing crypto ecosystem. The volatility of the market necessitates informed decision-making, even with promising profits from major firms. Overall, 2024 was pivotal for the legitimacy and growth of the crypto industry.
Question of the Week Answer
Okay, so here’s the deal about blockchain — it’s not really about money at its core. Think of it as this giant, unchangeable notebook that lives on the internet.
Everyone who wants a copy can get one, and if someone writes something in it (like “Bob gave Alice 5 apples”), everyone else goes, “Yup, we all agree Bob gave Alice 5 apples,” and it gets locked in.
That’s it. No erasing, no “oops, I didn’t mean to write that,” and certainly no sneakiness allowed.
Now, where does money fit in? It doesn’t have to! Blockchain is just a way of keeping records, plain and simple.
The whole cryptocurrency thing? That’s just one application of blockchain — kind of like how email uses the internet but isn’t the internet itself.
You could use blockchain to track anything, really — real estate deeds, supply chains, your roommate’s IOUs for pizza. Money is just one example, not the end-all-be-all of what blockchain is about. We hope this helps.
Closing Shenanigans
Thanks for reading. Dypto Crypto is a safe place where crypto newbies can learn and ask questions to help them make informed decisions in this exciting and volatile world. We’re having a lot of fun with YouTube shorts and TikTok.
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