HashKey Global February Monthly Report: US strategic reserves boost Web3 liquidity, and compliance structure constitutes the core issue of the industry

1. The market is sluggish, HashKey Global **grows against

the** trend

• Macro pressure : US inflation is high (CPI exceeds 5% for five consecutive months), and the Fed's expectation of interest rate cuts failed, resulting in BTC falling by more than 15% in a single month, and ETH and mainstream altcoins generally retreat by more than 30%.
• Black Swan Event : The cryptocurrency industry lost $ 300 million due to hacking attacks in February, of which Bybit was the largest single attack in history ($1.46 billion) and caused market panic, and on-chain liquidity shrank by 43%.
• Policy risks : Argentine President launches the national endorsement of Meme currency LIBRA, aggravates market doubts about regulatory arbitrage and legality, and SOL ecology plummets by 18% in a short period of time

Price Source: CoinGecko, March 4th, 2025

2. **The market environment deteriorates, policies and hacker attacks

intensify the cold** winter ****

As of February 2025, the US economy was facing inflationary pressure, labor market tightening, and the fluctuation in the Fed's interest rate cuts, which directly affected the performance of risky assets such as Bitcoin (BTC). Bitcoin plummeted by more than 15% in February, and Ethereum (ETH) and mainstream Altcoin were also hit hard, and the market risk aversion sentiment heated up.

Argentine President Javier Milei's launch of LIBRA Meme coin has triggered market concerns about the legality and regulatory issues of the national Meme coin, resulting in a sharp pullback in Solana's price. Bybit encountered a $1.46 billion hacking attack, creating the largest theft case in financial history, triggering market panic and on-chain liquidity continued to shrink.

The Bybit incident deeply warns hackers to use the gap between multiple wallet execution to tamper with smart contract code, resulting in cold wallet stolen. The incident exposed potential loopholes in traditional multi-signature technology (MPC), which requires dual guarantees of physical isolation and regulatory audit. In the face of industry turmoil, HashKey Global spoke out immediately, supporting Bybit and condemning hacking. At the same time, it enhances industry trust by strengthening the security system and deepening compliance layout.

3. In - **depth analysis of exchange safety and compliance escort

has become the new standard for the industry**

HashKey security system

• System-level physical isolation: The hot and cold wallets are set up with independent security houses, and the dedicated computers are equipped with anti-intrusion systems. The hot wallet server only handles user order needs, while the cold wallet device is completely physically disconnected from the Internet.
• Dynamic quota management: Different jurisdictions set differentiated hot wallet ratios, such as 2% for Hong Kong regulatory hot wallets, and 10% for Dubai and Bermuda regulatory hot wallets
• Intelligent risk control trigger: Fund transfer needs to be triggered through intelligent collection of order demand to eliminate the possibility of manual intervention.
• Bank-level risk control for hot and cold conversion system:
• The operation process implements the "three people and four eyes" mechanism, covering the collaboration of multiple departments such as wallet management, security audit, and financial monitoring.
• At the hardware level, hot and cold wallets are separated into separate secure houses, hot wallet servers handle orders, cold wallet equipment is permanently physically disconnected from the Internet

Innovative practices of licensed institutions

Hardware Security Partner: Thales

• Provides the highest level of security for the security module of the wallet hardware, ensuring that the key is always stored in a secure environment that is anti-intrusion, anti-tampering, and FIPS verification.

eKYC Partner: Sumsub

• Provides world-leading identity verification technology, strictly enforces KYC data requirements, and effectively prevents identity impersonation and fraud.

KYT Partners: Elliptic and Beosin

• Provide real-time transaction monitoring to identify abnormal capital flows and suspicious transaction behaviors, and quickly block potential risks.

Market Supervision Partner: Solidus Labs

• Deploy market behavior monitoring systems to discover and handle market manipulation behaviors in real time to ensure fair transactions.

Travel Rule partners: GTR, VerifyVASP, CODE

• Ensure cross-border capital flows compliant and meet international anti-money laundering regulations.

4. **Strategic reserves activate market sentiment, and differentiate

views on bull and bear** game

The Trump administration announced the establishment of a strategic U.S. cryptocurrency reserve, with Bitcoin (BTC) and Ethereum (ETH) expected to be key assets. Among them, the five potential US strategic reserve tokens for BTC/ETH/SOL/XRP/ADA account for about 90% of HashKey Capital’s holdings. HashKey Capital launched the Top 20 Index Fund in February, focusing on investing in the top 20 tokens in market capitalization. However, the market's views on bull and bear are still differentiated. As the White House cryptocurrency summit approaches on March 7, investors should pay attention to policy details and market volatility opportunities.

HSK 's new pool revenue is upgraded, and the benefits of experience funds are doubled

HashKey Global continues to expand the support scope of high-quality assets and launches three phases of Launchpool, $AR, #G7, and $KCS, providing users with more liquidity mining opportunities. Through Launchpool, users can pledge idle $HSK, earn generous rewards, and realize asset appreciation. At the same time, upgrade HashKey Global VIP, and the locked yield can also increase by 30%. Details: https://global.hashkey.com/en-US/launch/extra

Spot assets: Spot Listings: $BNB, $BTT, $AR, $XRP, #G7, $KCS, $BERA, $NFT, $BGSC

Futures Assets: $KAITO, $OM, $LAYER, $IP bera

5. HashKey **financing attracts attention, and licensed layout

accelerates global expansion**

On February 14, HashKey received US$30 million in investment from China's well-known venture capital Gaorong Capital, with a pre-financing valuation of nearly US$1.5 billion. Gaorong Capital's investors include major Chinese technology companies such as Tencent, Alibaba and Xiaomi. Previously, HashKey raised nearly $100 million in a Series A funding round and was promoted to a unicorn on January 16.

Through Bull and Bear, HashKey Global leads the future

HashKey Global MENA is about to win the cards and will open a press conference in Dubai to invite industry security partners to witness

HashKey Global has specially launched contract experience benefits to lower the transaction threshold and allow more users to try contract transactions.