This Week in Crypto: BlackRock’s Quantum Threat, Pi Network’s $100M Fund, Coinbase Data Leak, and More

This week in the cryptocurrency field marked days of judgment and revelation. BlackRock drew attention with a cautious view on the potential of quantum computers to break Bitcoin.

Meanwhile, Pi Network announced a massive 100 million USD fund to support Web3 startups amid tight scrutiny. Below is a compilation of cryptocurrency headlines for the week, including Coinbase being criticized for mishandling a large internal data leak.

BlackRock Warns Quantum Computing as an Existing Risk to Bitcoin

A highlight this week in the cryptocurrency field was BlackRock's latest ETF profile update. This profile sparked a new debate after the asset management company warned that advances in quantum computing could ultimately undermine Bitcoin's encryption foundation.

"To be clear. These are just basic risk disclosures. They will highlight anything that could go wrong with any product they list or underlying asset being invested. This is completely standard. And actually makes sense," ETF analyst James Seyffart commented.

This disclosure, embedded in BlackRock's Bitcoin ETF risk statement, indicates that quantum breakthroughs could render current security standards obsolete. This observation marks a clear acknowledgment from a financial giant betting on BTC's long-term viability.

Although this scenario remains hypothetical, BlackRock's feeling of needing to include it shows increasing institutional awareness of risks beyond volatility or regulation.

The perspective is that, theoretically, Bitcoin's dependence on elliptic curve encryption could be vulnerable to future quantum decryption. However, some dismiss this threat as far-fetched but agree it's not too early to prepare post-quantum protective measures.

With potentially trillions of dollars flowing into crypto markets in the coming decade, BlackRock's perspective adds urgency to ongoing efforts to protect blockchain security in the future.

Pi Network Announces 100 Million USD Fund but Faces Criticism

Another highlight this week in the cryptocurrency field was Pi Network's 100 million USD fund. BeInCrypto reported the network's bold plan to allocate 10% of its native token supply to support developers building applications in its closed mainnet ecosystem.

The fund aims to nurture practical applications and stimulate long-term utility for its users.

"Pi Network Ventures has officially launched—a 100 million USD initiative, held in Pi and USD, to invest in startups and enterprises driving Pi's utility and real-world adoption," the announcement stated.

However, this announcement sparked controversy, with some critics arguing the project lacks transparency. They point out suspicious ecosystem progress, missed promises, and failures in referral rewards, among other shortcomings.

Nevertheless, this funding marks a serious commitment to supporting Web3 startups from within, aligning with Pi Network's long-standing promise of cryptocurrency adoption from the ground up.

Analysts Say Ethereum Could Overtake Bitcoin

Analysts also indicated this week in the cryptocurrency field that Ethereum might be on the verge of challenging Bitcoin's market dominance. They suggest it could challenge BTC in price and fundamental utility.

Analysts point out Ethereum's significant lead in daily active users, network revenue, and ecosystem development as signs that a "Flippening" might still occur.

"ETH is really overtaking Bitcoin right now. Ethereum could become the #1 digital asset soon at this rate. Bitcoin maximalists can't believe it," investor Gordon said.

While Bitcoin remains the ultimate value storage, Ethereum is driving innovation in DeFi, Non-Fungible Tokens, and layer-2 scaling solutions.

Internet Capital Markets Tokens: An Emerging Crypto Trend?

As traditional finance (TradFi) gradually penetrates blockchain, internet capital market tokens are becoming a hot new frontier. BeInCrypto reported highlights this week, citing Launch Coin (LAUNCHCOIN), Dupe (DUPE), and CreatorBuddy (BUDDY).

These tokens go beyond speculation, actively supporting on-chain versions of traditional financial products. However, Launch Coin stands out, bringing the Believe app's token and standing at the center of the Internet Capital Markets trend.

Launch Coin on Believe transforms meme coin creation on Solana. Users can launch directly from X with code and name, with community hype driving funding. However, with Believe controlling the backend, exposure risks remain large.

Data on the Dune dashboard shows the platform has over 17,000 tokens launched and 267,386 active traders.

Although total trading volume has reached 2.2 billion USD, showing increasing interest and participation, momentum might be waning.

Data on DexScreener confirms this perspective, showing easy price momentum. However, the price remains much higher than the floor, increasing 1,947% in the 4-hour timeframe.

Coinbase Refuses Ransom Demand, Faces Severe Backlash Amid Data Leak Scandal

One of the biggest stories this week in the cryptocurrency field is the Coinbase data leak. The exchange has confirmed that dishonest support staff leaked sensitive customer data, affecting some users.

The perpetrators are demanding 20 million USD in ransom, which Coinbase has refused. The platform is currently offering a 20 million USD reward to identify the culprits.

However, with leaked files ranging from government IDs to sensitive data like home addresses, users are concerned about safety. Some customers have been targeted by fraud and identity theft.

Meanwhile, the real outrage stems from the timeline, with allegations that the leak occurred in January but was only recently disclosed.

"Coinbase knew their user data was stolen since January but said nothing until now? We have received numerous reports of Coinbase users being drained by impersonators. Now we know why," wrote Duo Nine, a prominent analyst.

Critics argue that the delay has left users exposed for months. This incident highlights the risks of centralized data systems and may drive calls for decentralized identity solutions and self-managed assets.