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Is the “Fat Protocol Thesis” – the long-held belief that blockchain infrastructure is more valuable than applications – finally dead? Arthur Cheong, CEO of DeFiance Capital, thinks so. He argues the once-popular investment principle has led to overvalued infrastructure projects and relatively undervalued applications that has stifled crypto investment beyond Bitcoin . The Fat Protocol Thesis claimed the primary value of blockchain technology lies in the underlying protocols, not the applications built on top. Cheong points out that successful applications today are reasonably valued at 5x to 15x price-to-revenue ratios, while blockchain infrastructure projects – many of which have seen minimal growth in recent years – boast massively inflated valuations, anywhere from 150x to 1000x price-to-revenue. “The speculative premium that once fueled the crypto infrastructure boom, he suggests, has finally collapsed,” he wrote on X. In other words, the market is waking up, and valuations are starting to make sense. Related: BLUR Token Holders Cry Foul as Price Tanks Despite Ecosystem Growth In 2021, Cheong himself supported the Fat Protocol Thesis, believing it was the dominant investment strategy. However, as the market matures, he now emphasizes real-world adoption. He points to once-hyped Layer 1 tokens like ADA, SOL, DOT, and AVAX. While they once had valuations exceeding $10 billion, many have struggled to sustain long-term growth. Back then, most of these projects raised funds at valuations below $100 million, making them attractive early bets for investors. But those days are likely gone. The “Fat Protocol Thesis” may have served its purpose in the early crypto days, but the market is rapidly evolving. Real value, Cheong argues, comes from actual utility, not just infrastructure promises. Applications that actually get used will naturally command higher multiples – that’s just how markets should work. This shift signals a major turning point in how crypto investments are structured. Related: Ledger Exposes Potential Security Flaw in Trezor Wallets Arthur’s comments reflect a growing sentiment in the market: investors are increasingly focused on utility and adoption rather than infrastructure hype. And for investors, this means a potential shift in where the real value lies. Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.

The cryptocurrency land is advancing quickly, with projects introducing groundbreaking solutions to enhance nearness, security, and scalability. From Pi Network mobile mining revolution to Hedera enterprise grade blockchain, Sui’s scalable base, and Toncoin’s decentralized advancements, these platforms are shaping the future of digital assets. Explore how each project is pushing the boundaries of blockchain technology and driving mainstream adoption. Current market: $1.71 Market cap:$12.2B Pi Network continues to expand its reach by offering a user friendly approach to cryptocurrency mining. Unlike traditional mining, which demands important statistical power, Pi allows users to mine tokens through a mobile application. This strategy increases accessibility and fosters mass adoption. The platform also supports a habitat of decentralized applications, enhancing real-world use cases. Current market: $0.2001 Market cap:$8.45B Hedera Hashgraph remains a major player in enterprise grade blockchain technology. The network addresses key control faced by traditional blockchain platforms, including slow performance and instability. By offering secure and efficient decentralized applications, Hedera provides solutions tailored for businesses and institutions. The network gained traction following its initial coin offering, which enabled early investors to acquire its native HBAR tokens. Current market: $2.29 Market cap:$7.28B Sui is building a blockchain infrastructure designed to support global adoption. The platform employs an object-centric data model and the Move programming language, enhancing efficiency and security. Sui focuses on improving the user experience by removing barriers commonly associated with blockchain interactions. Features like zkLogin and programmable transaction blocks streamline blockchain accessibility, allowing developers to create seamless Web3 applications. Current price: $2.77 Market cap:$6.88B Toncoin continues to advance as the native cryptocurrency of The Open Network. Originally developed by Telegram, the project underwent significant changes after Telegram ceased its involvement following a regulatory decision. Despite this, the network remains open source and is supported by multiple contributors. The TON Foundation, based in Switzerland, plays a key role in inspecting its development. The project aims to enhance scalability and separate while maintaining strong community support. DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Pi Network, a mobile-based cryptocurrency mining platform, is facing mounting criticism over its centralization. Fresh data from PiScan reveals that the core team holds an overwhelming 82.8 billion Pi Coins, making up 82% of the total 100 billion supply. With so much of the network’s wealth in the hands of a few, concerns about true decentralization are growing. At the heart of the issue is the concentration of these holdings. The Pi Network core team directly controls 62.8 billion Pi Coins across six wallets. An additional 20 billion PI is spread across 10,000 unlisted wallets also linked to the team. That puts nearly the entire supply under internal control, leaving users wondering whether this system is as decentralized as promised. The problem doesn’t stop at coin distribution. Pi Network currently operates with only 43 nodes and three validators globally. Compared to giants like Bitcoin, which boasts over 21,000 nodes, or Ethereum, which runs on more than 6,600 nodes, Pi Network’s infrastructure looks worryingly centralized. Solana is another example, with approximately 4,800 nodes, yet Pi Network falls far behind. Beyond the concentration of holdings and network control, transparency is another key concern. Analysts have found it difficult to examine Pi Network’s source code and on-chain data because the project remains largely closed. A post by PiScan on X made that clear, stating : Analyzing Pi Network’s source code and on-chain data is currently challenging due to its incomplete openness. Transparency is a cornerstone of any decentralized project, and without it, trust in the network remains shaky. The lack of openness around its operations has only fueled further debate. Adding to the unease, Pi Network has quietly introduced ChatGPT into its Know Your Customer (KYC) verification process. This change was slipped into the 2025 privacy policy update without prior mention in earlier versions. The updated document states : We use ChatGPT, as a trusted AI partner, to automate identity verification and enhance security measures. By using our KYC services, users consent to the use of ChatGPT, and other AI providers that may be later implemented, as part of our KYC process. The involvement of artificial intelligence in identity verification raises questions about user privacy and third-party involvement. With increasing concerns over how AI handles sensitive personal data, many users are left wondering whether their information is truly secure. Dissatisfaction within the Pi Network community has been growing. Many users have voiced their frustration over the long lockup periods and technical difficulties experienced during the mainnet migration. Unable to access their tokens freely, some have even resorted to selling their accounts. That frustration is reflected in the sharp decline in search interest for “Pi Network.” According to Google Trends, interest in the platform peaked at 100 on February 20, the day of the mainnet launch . Since then, it has plunged to just 12, marking a steep drop in public enthusiasm. While early adopters once believed in the vision of a decentralized, mobile-friendly cryptocurrency, recent revelations have cast doubt on the Pi Network’s direction. Most of the supply is controlled by the core team, a small number of validators running the network, and a lack of transparency in governance.

Pi Coin has made a dramatic entry into the list of top 12 largest cryptos by market cap after recording a significant surge of 23% in the last 24 hours. According to our market data, the asset is making a surprising attempt to overturn the 11% loss recorded on the weekly price chart. Meanwhile, the asset has moved from its daily low of $1.3, recorded in our recent analysis , to turn the $1.7 resistance level into support. Amidst the backdrop of this bullish run, Pi Network is reported to be making a groundbreaking decision to implement a price-pegging mechanism. Technically, this is achieved by fixing the price of a token to another token or a basket of tokens at a specific rate to reduce volatility and provide stability. According to the available information, the Pi community has discovered a smart contract code linked to Chainlink. This implies that the team may be planning to stabilize the asset’s value through an automated minting and burning system. Interestingly, this approach is similar to the mechanisms used by stablecoins like USDC and USDT. While the PiCoreTeam has not yet confirmed the pegging mechanism, market analysts have speculated that this implementation could cause the asset to be widely integrated and adopted into various financial systems. Meanwhile, this algorithmic pegging system would demand that additional tokens be minted whenever the price falls below the target. On the other hand, additional tokens would be burnt whenever the price exceeds the target. Based on the report, the Pi Coin is expected to have a target price of 314,159 USD. This is a representation of 314,159 × 10¹⁸ Wei, which is the smallest unit of Ethereum. Meanwhile, the Pi Network has been facing growing concerns over centralization. According to reports, the core team of the network retains control of 82.8 billion Pi coins, representing 82% of the total supply. Apart from this, the Pi Network’s infrastructure has also come under security scrutiny as it only operates with 43 nodes and three validators. Comparatively, Bitcoin is reported to have more than 21,000 nodes while Ethereum has 6,600 nodes. This has brought the Network’s capacity for decentralized verification under scrutiny. Per reports, the limited nodes and validators increase its vulnerability to manipulation and centralization. In a recent update , we discussed the rising concerns about the Pi Network’s Know-Your-Customer (KYC) verification deadline which coincided with the 6th anniversary of the project. According to that report, thousands of users complained of difficulties in completing this verification as 80% of the affected users were not able to verify their coin balances. Also, there have been several reports of user dissatisfaction attributed to prolonged lockup periods, technical migration issues, and a declining coin value. As highlighted in our previous article, 63% of Pi Network users have their coins locked up till 2027, forcing most of them to consider alternatives.

The past few days have seen Bitcoin (BTC) struggling to reclaim key support levels. The dwindling Bitcoin prices have raised concerns among investors, and several analysts are speculating about market manipulation by billionaires. In an X post , David Wolfe, a crypto trader, detailed how billionaires are manipulating the market for their gains. He posted a video about billionaire Jamie Dimon, CEO of JPMorgan Chase, who promised to fire any of his traders buying Bitcoin. Jamie called Bitcoin a “fraud” and a “bubble” on September 12, 2017, during his appearance at the Delivering Alpha conference. The billionaire’s speech greatly impacted the market, leading to a 24% decline in BTC’s price at the time. This initial comment marked the beginning of his highly publicized skepticism toward Bitcoin. Shockingly, Jamie reportedly turned out to be the largest buyer of Bitcoin that weekend. This purchase implied Jamie manipulated the market to accumulate Bitcoin at lower prices. The idea is that as prices climb higher, he would sell his BTC stash to accumulate huge profits. Wolfe pointed out that billionaires are currently manipulating the price of Bitcoin in almost similar ways. “How billionaires manipulate crypto (and almost every other market). This is happening in crypto now,” says Wolfe. He added that some billionaires plan to drive BTC towards the $60,000 range to buy it all up. According to Wolfe, the main aim is to seize control of Michael Saylor’s MicroStrategy stock. Meanwhile, Saylor remains a strong BTC proponent. As highlighted in our previous article, Saylor announced plans to raise $2 billion through convertible notes to purchase more BTC. Saylor has also encouraged tech giants like Amazon and Microsoft to use Bitcoin to preserve cash reserves. Wolfe’s statement has sparked mixed reactions from the crypto community. While some agree with him, others disagree that market manipulation is a myth. The price of BTC dropped drastically in February, trading as low as $79,000 on February 28. The price soon increased in the first week of March after President Donald Trump released a crypto reserve executive order. This rally only lasted a while, and the price of BTC soon dropped below $80,000 again. As noted in our earlier post, the price drop comes as Japan’s yen strengthens alongside rising government bond yields. At the moment, BTC has jumped above this mark, trading at $82,433 following a 0.86% increase in the last 24 hours. Bitcoin traded as high as $83,479 the day before dropping to current levels. However, the trading volume has decreased by 20.9% to $47.1 billion, suggesting investors’ dwindling interest. Now that the yen rally has faded, the market anticipates a renewed risk-on sentiment that would benefit Bitcoin.