# Coinbase's Amazing, Terrible Week *Author: Jack Inabinet* *Published: May 17, 2025* *Source: https://www.bankless.com/read/coinbases-amazing-terrible-week* --- ## 1️⃣ Coinbase’s Chaotic Week Coinbase yet again dominated crypto news headlines this week. After the U.S. stock market close on Monday, S&P Global [announced](https://www.spglobal.com/spdji/en/documents/indexnews/announcements/20250512-1478052/1478052_dfs5.pdf) that Coinbase (COIN) would replace Discover Financial Services (DFS) in its S&P 500 index, effective May 19. COIN’s inclusion in the capitalization-weighted index should [trigger](https://www.theblock.co/post/354079/first-they-fight-you-then-add-you-to-the-sp-500-coinbase-could-see-9-billion-in-passive-inflows-bernstein) $9B of passive inflows, sending the stock soaring with 25% gains during Tuesday’s trading session. On Thursday, the company’s fortunes deteriorated, with its stock selling off as much as 8.4% amid a concerning [leak](https://x.com/coinbase/status/1922967576209998133) of the personal info of a large swath of customers including ID cards, contact info, and transaction histories. While the company said the total leak amounted to less than 1% of total customers, that's still a hell of a leak. Amid all of that ruckus, news also emerged of a long-standing SEC [inquiry](https://www.nytimes.com/2025/05/15/technology/coinbase-sec-investigation.html#:~:text=Before%20it%20went%20public%20in,to%20103%20million%20verified%20users.) into alleged misstated user metrics in its 2021 IPO filing. Despite the chaotic developments, Coinbase did end up recuperating the entirety of its Thursday losses and moving to new highs on Friday, the final trading day before COIN’s S&P 500 inclusion. > As the saying goes…“First they ignore you.Then they laugh at you.Then they fight you.Then they add you to the S&P 500.”…or something like that.— Coinbase 🛡️ (@coinbase) [May 12, 2025](https://twitter.com/coinbase/status/1922046840528113880?ref_src=twsrc%5Etfw) ## 2️⃣ DOJ Won't Drop Tornado Cash Case According to a memo penned by the U.S. Attorney for the Southern District of New York, former SEC Chair Jay Clayton, the Department of Justice will proceed with its case against Tornado Cash developer Roman Storm. This development comes despite an April [release](https://x.com/amandatums/status/1909603412125049118) from the agency that it would pull back on regulatory charges involving digital assets, unless there is evidence that the defendant “willfully” violated licensing or registration requirements. While charges against Storm for failure to comply with money transmitting business registration requirements have been abandoned, the original November [indictment](https://storage.courtlistener.com/recap/gov.uscourts.nysd.604937/gov.uscourts.nysd.604937.109.0.pdf) remains largely intact. Prosecutors are intent on trying the embattled crypto developer for conspiracy to commit money laundering, transmission of funds derived from criminal activity, and criminal sanctions violations. The criminal case against Roman Storm will eventually yield a final decision, and the precedent it sets is bound to have profound implications for the crypto industry, open source developers, and internet freedom. > DOJ will not drop the charges against Roman Storm. [pic.twitter.com/fPQlF1XmNK](https://t.co/fPQlF1XmNK)— L0la L33tz (@L0laL33tz) [May 15, 2025](https://twitter.com/L0laL33tz/status/1923068974331215997?ref_src=twsrc%5Etfw) ## 3️⃣ Yuga Offloads CryptoPunks IP Bored Ape Yacht Club creator Yuga Labs has sold the CryptoPunks intellectual property (IP) and five associated JPEGs to the Infinite Node Foundation (NODE). While exact terms of the deal were not disclosed, it was [reported](https://nftnow.com/newsletter/cryptopunks-ip-20-million-yuga-labs-node-foundation/) that NODE paid approximately $20M. Yuga Labs, which [acquired](https://techcrunch.com/2025/05/13/nft-phenom-cryptopunks-was-just-sold-to-a-nonprofit/) the CryptoPunks IP rights and 423 individual Punks from creator Larva Labs in 2022 for an undisclosed amount, will retain 414 Punks in its treasury, worth over $50M at current floor prices. Punk floor prices rallied 10% on the news and while most holders responded positively to the development, others would-be buyers felt short-changed by alleged terms – Pudgy Penguins CEO Luca Netz [claimed](https://x.com/nowmedia/status/1922367960015855762) he would have offered $75M for the rights. Instead of transferring CryptoPunks to a profit-motivated corporation seeking to monetize the IP, the NODE deal transfers the collection’s valuable IP rights to a non-profit with intentions to establish a permanent exhibition in Palo Alto and [maintain](https://nodefoundation.com/blog/punks-join-node) the brand as “the landmark collection of this century's defining art movement.” > We are excited to announce CryptoPunks have found a permanent home at The Infinite Node Foundation. [@nodefnd](https://twitter.com/nodefnd?ref_src=twsrc%5Etfw) is a non-profit committed to the preservation and expansion of contemporary digital art.[@larvalabs](https://twitter.com/larvalabs?ref_src=twsrc%5Etfw) founders & artists Matt Hall & John Watkinson are returning to join… [pic.twitter.com/0E2gk0RuyD](https://t.co/0E2gk0RuyD)— CryptoPunks (@cryptopunksnfts) [May 13, 2025](https://twitter.com/cryptopunksnfts/status/1922291088431448396?ref_src=twsrc%5Etfw) ## 4️⃣ Hyperliquid’s Mainstreet Debut During a segment about portfolio diversification released Tuesday by the Bloomberg Surveillance podcast, David Ballin (CEO of private equity firm CIO Capital) [promoted](https://x.com/HyperliquidX/status/1922910069869408264) Hyperliquid as a non-correlated bet with transparent revenues and the potential to become a game-changing financial product. In an interview on CNBC Friday, Galaxy Digital founder Mike Novogratz – who previously ran [afoul](https://ag.ny.gov/sites/default/files/settlements-agreements/galaxy-digital-holding-ltd-et-al-assurance-of-discontinuance-2025.pdf) of the NYAG for publicly promoting Terra/Luna in 2022 while dumping hundreds of millions of dollars worth of tokens on unwitting buyers – also lauded Hyperliquid for being a decentralized version of Nasdaq with strong growth potential and a token buyback program that could make sense for equity investors as a “next-generation token.” Crypto natives were no doubt enthused to see one of their favorite tokens promoted to the investing public via multiple media outlets this week, but such high-profile publicity can mark local tops should whales be ensnaring liquidity to exit their positions. > CNBC did an interview with [@novogratz](https://twitter.com/novogratz?ref_src=twsrc%5Etfw) and he was asked about altcoins:+ New ecosystems need strong narratives+ He used Hyperliquid as an example: a decentralized Binance that transparently uses exchange profits for token buybacks+ Note: Galaxy Digital owns HYPEHyperliquid [pic.twitter.com/aVnPKqOy7H](https://t.co/aVnPKqOy7H)— steven.hl (@stevenyuntcap) [May 16, 2025](https://twitter.com/stevenyuntcap/status/1923368561671606595?ref_src=twsrc%5Etfw) ## 5️⃣ MetaMask Token, Maybe? OG Ethereum wallet MetaMask has been a leading “airdrop contender” since the term was first coined, and this week, the faithful who have continued to hunt this opportunity received confirmation that their efforts *might *one day be rewarded with an airdrop. In an [interview](https://x.com/TheBlock__/status/1922684574196256808) with The Block’s “Crypto Beat” podcast, MetaMask co-founder Dan Finlay confirmed that the popular crypto wallet is still considering a token launch, indicating one would be directly advertised through MetaMask and noting that an increasingly permissive regulatory environment under the Trump Administration provides “safety for far more kinds of token launches.” Click [here](https://www.bankless.com/profile/metamask?tab=quests) to view top MetaMask airdrop hunt strategies. > MetaMask co-founder Dan Finlay says token is still a 'maybe' [https://t.co/GTQHI3IwQi](https://t.co/GTQHI3IwQi)— The Block (@TheBlock__) [May 14, 2025](https://twitter.com/TheBlock__/status/1922775634012499992?ref_src=twsrc%5Etfw)