Strategy sinks after revealing it has sold bitcoin for the first time since starting stockpile

Initial coin offerings (ICOs) have been a way for people in the crypto space to fundraise capital that involved users sending ethereum to a smart contract with the expectation of receiving a project’s tokens.

Despite the popularity of ICOs, a number of projects failed, were unable to meet fundraising goals, and then, for one reason or another, were unable to return investors’ capital. One such example was HongCoin, which aimed to be a decentralized venture fund across borders.

On Sunday morning, blockchain sleuth 0xFlorent announced unlocking 1,003.62 ethereum tokens, worth $2 million, in HongCoin’s 2016 smart contract, enabling the 48 initial investors to claim funds that have been trapped for nine years. Of the investors, two have so far claimed a combined 96.5 ethereum.

The contract held all of the investors’ ethereum and was meant to auto-refund the cryptocurrencies, but “a bug in the refund function quietly broke that, and the funds got stuck,” 0xFlorent said in an X thread.

The HongCoin recovery was the second one the ethereum developer has disclosed in the past eight days. Last Sunday, 0xFlorent said they unlocked over 19.3 ETH, worth $40,590, that were stuck in two old contracts.

As to whether 0xFlorent will unlock more tokens stuck in ICO contracts, the security researcher doesn’t know. “It’s not my main activity and I did it because I found a way to help people. That’s it," 0xFlorent told Sherwood News.

The sui blockchain is stalled again on early Friday, with the last transaction occurring more than two hours ago, data from blockchain explorer Suiscan shows.

“The Sui Core team is actively investigating. Updates and incident review will be shared as soon as they are available,” the team wrote on X.

The ongoing pause comes immediately after experiencing a halt the day before “due to a crash bug in the gas charging logic introduced by the 1.72 release,” the team said on Thursday.

SUI, the network’s native cryptocurrency, has dropped around 20% in the past seven days, according to CoinGecko.

SoFi Technologies announced Wednesday that its 15 million members can now use its stablecoin, SoFiUSD, marking the first time a US national bank-issued stablecoin is available on a banking app, but the markets seem to have really taken notice Friday, sending shares up over 7% in early trading.

Options data as of 9:42 a.m. ET also shows a bullish tilt from traders, with a put/call ratio around 0.16 vs a 20-day average of 0.39.

SoFi’s move is the first step to integrate SoFiUSD into the firm’s broader ecosystem, with plans to allow members to convert the stablecoin into tokenized deposits and roll out SoFiUSD on centralized exchange Bullish.

The stablecoin is currently on ethereum and solana, but the firm aims to add more blockchains to the list.

“We believe we can combine the speed and versatility of the blockchain with the trust of a bank to improve how money moves around the world,” SoFi CEO Anthony Noto said in a statement. “People no longer have to choose between blockchain technology and regulated banking products.”

Since President Trump signed stablecoin legislation GENIUS Act in July last year, the market capitalization of stablecoins has increased nearly 24% to $320.8 billion, data from DefiLlama shows.

Ethereum has dropped 4% in the last 24 hours to trade as low as $1,967 on Thursday morning, a mark not seen since March.

Selling pressure is weighing on the token as “traders are actively opening short positions,” CryptoQuant Head of Research Julio Moreno told Sherwood News. “US spot demand for ETH has weakened, as seen by an extremely negative Coinbase price premium approaching levels not seen since February.”

The price action has spurred $237.2 million in liquidations, with the majority of them, $225.1 million, coming from long positions, data from CoinGlass shows. Elsewhere, ethereum ETFs have notched their longest outflow streak this year at 12 days, with Wednesday recording almost $67.2 million in outflows, per SoSoValue.

“ETH’s break below the psychologically important $2,000 level reflects a deterioration in near-term crypto risk sentiment rather than a collapse in Ethereum fundamentals,” according to Coinbridge cofounder and CIO Kelly Ye.

Ye said the drop under $2,000 was amplified by rising volatility and geopolitical tensions amid renewed US-Iran escalation and broader de-risking across high-beta assets.

Sentiment surrounding the cryptocurrency has also softened after David Hoffman, a known ethereum advocate, publicly disclosed offloading his entire ETH position and questioned whether the network’s growth translates to meaningful value accrual to ethereum as an asset, Ye pointed out.

“Still, ETH has continued to hold a broader pattern of higher lows since the April 2025 tariff-driven selloff near $1,500, with the February 2026 low around $1,800 now emerging as the next key level to watch,” Ye told Sherwood News.

“Importantly, on-chain activity has not shown significant deterioration, and Ethereum TVL [total value locked] measured in ETH terms has started trending higher again since May, suggesting underlying network usage remains relatively resilient despite weaker price action,” Ye added.

Some ethereum treasury firms have not stopped their strategy, such as Bit Digital, which announced on Thursday purchasing 8,568 ethereum tokens for $20 million, bringing its total holdings to 158,461.75 tokens.

Meanwhile, other altcoins are also in the red, with solana and dogecoin dropping over 3% in the last 24 hours.