Today in crypto, a surge in token supply is diluting returns and breaking the link between fundamentals and price, Telegram co-founder says Iran ban backfired. Meanwhile, Polymarket removed a market tied to the fate of a missing US service member after backlash.
Crypto faces ‘existential’ token problem as supply outpaces value creation
The rapid growth in the number of crypto tokens is outpacing the value they generate, creating an “existential” problem for the industry, according to Michael Ippolito, co-founder of Blockworks.
In a series of posts on X, Ippolito noted that while total crypto market capitalization remains relatively strong, the average value per token tells a different story. “The average coin is only slightly higher than where it was in 2020 (!) and down ~50% since 2021,” he wrote.
Median token returns have also deteriorated sharply. Most tokens are down roughly 80% from their highs, suggesting that gains have been concentrated in a narrow set of large-cap assets, while the broader market underperforms, Ippolito claimed.
He argued that the imbalance appears to be driven by a rapid expansion in token supply. “We created a TON of new assets and STILL total market cap is flat,” he wrote, adding that this dynamic effectively dilutes value across a growing pool of tokens.
Telegram co-founder says Iran ban backfired
Pavel Durov, the co-founder of the Telegram messaging application, said the Iranian government’s Telegram ban has backfired due to technical workarounds like virtual private networks (VPNs) and similar tools.
VPNs mask online users’ IP addresses, allowing them to bypass national firewalls and access blocked content.
Despite the Iranian government’s ban, the Telegram application has been downloaded by over half of its population, Durov claimed. He said:
“The government hoped for mass adoption of its surveillance messaging apps, but got mass adoption of VPNs instead. Now over 50 million members of the digital resistance in Iran are joined by more than 50 million more in Russia.”
Decentralized and encrypted messaging platforms, alongside blockchain technology can act as a lifeline for individuals amid increased government surveillance and restrictions, proponents say.
Polymarket takes down market on missing US pilot after backlash
Polymarket removed a market tied to the fate of a missing US service member after mounting backlash, saying the listing violated its “integrity standards.”
The controversy erupted after a prediction market appeared asking whether US authorities would confirm the rescue of a pilot reportedly shot down over Iran, with most users (over 60%) betting that they wouldn’t be rescued until Saturday.
US Representative Seth Moulton condemned the market, calling it “disgusting” and expressing concerns over people speculating on the fate of a potentially injured service member. “They could be your neighbor, a friend, a family member. And people are betting on whether or not they'll be saved,” Moulton wrote.
In response, Polymarket said it had taken the market down immediately, adding that it should not have been listed and that the company is reviewing how it passed internal safeguards. The platform did not provide further detail on what specific rule had been breached.