Hey there, PoI readers! 💫

It's your favorite crypto connoisseur, Mochi, back with another serving of tantalizing tech and web3 news. Today's menu features Nvidia's AI chip bonanza, the SEC's surprising crypto retreat, House Democrats' memecoin crackdown, and a juicy security breach at Pump.fun. The digital landscape is shifting faster than you can say "blockchain," so let's dive right into these byte-sized stories!

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INTEL BRIEF

🟧 Nvidia reported a 78% year-on-year revenue jump due to strong demand for its AI-focused microchips, beating Wall Street expectations.

🟧 The SEC has agreed to drop its lawsuit against Consensys, developer of MetaMask, with no fines or conditions, amid a broader regulatory pivot under new leadership.

🟧 House Democrats are introducing the MEME Act to ban public officials from issuing memecoins like President Trump's TRUMP token.

🟧 Pump.fun's X account was hacked to promote a fake governance token, highlighting security concerns amid increased regulatory scrutiny of memecoins.

Nvidia achieves massive revenue jump from AI chip demand

Nvidia has once again proven that AI isn't just eating the world—it's gobbling it up and asking for seconds. The chip-making giant reported a whopping 78% year-on-year revenue increase.

$39.3 billion in quarterly revenue, up 12% from the previous quarter and far exceeding Wall Street's predicted $37.72 billion. Earnings per share hit 89%, casually stepping over the expected 84%.

According to CEO Jensen Huang, it's the "amazing" demand for Nvidia's Blackwell microchips.

"AI is advancing at light speed," declared Huang, probably while resisting the urge to don a cape and strike a superhero pose. He's particularly excited about "agentic AI and physical AI" setting the stage for what he calls the "next wave" that will "revolutionize the largest industries."

The data center segment is Nvidia's golden goose, laying eggs made of pure profit. This division accounted for over 90% of total revenues, hitting $35.6 billion—up 93% from a year ago.

Nvidia's stock ($131.28) still hasn't reclaimed its November high of over $147. The company also experienced the largest one-day value drop in US stock market history back in January, when investor jitters over Chinese AI firm DeepSeek's ChatGPT rival sent shares plummeting by nearly 17%.

Meanwhile, the AI gold rush continues across the tech landscape, with Microsoft establishing AI centers in Abu Dhabi and Bitcoin mining companies cleverly pivoting some operations toward AI computation—a move that could potentially generate billions in additional profits.

Nvidia reported $39.3 billion in quarterly revenue, up 78% year-on-year, beating Wall Street expectations

Data center revenue dominated with $35.6 billion (over 90% of total), showing explosive demand for AI chips

CEO Jensen Huang highlighted "agentic AI and physical AI" as drivers of the next revolutionary wave in major industries

SEC drops Consensys lawsuit with no conditions attached

The Securities and Exchange Commission (SEC) has agreed to drop its lawsuit against Consensys, the company behind your favorite digital wallet mascot, MetaMask.

Joseph Lubin, Ethereum's co-founder and Consensys founder, couldn't contain his excitement, declaring: "Now we can get 100% back to building. 2025 is going to be the best year yet for Ethereum and Consensys. The paradigm shift to a much more decentralized world is accelerating.

According to Consensys attorney Bill Hughes, the SEC's sudden change of heart wasn't exactly a complex negotiation. He attributed this regulatory U-turn to the new leadership at the SEC and the Trump administration's pro-crypto policies. Hughes noted there was "definitely a tenor change in the conversations post-election" – which is lawyer-speak for "they completely changed their tune after Trump won."

This regulatory white flag is just the latest in what appears to be a full-scale retreat by the SEC, which has also dropped cases against Uniswap, Robinhood Crypto, and Gemini.

The plot thickens when you remember that Consensys didn't just play defense – they went on the offensive, filing their own lawsuit against the SEC in April 2024. Their legal team boldly argued that the SEC was attempting "to seize control over the future of cryptocurrency" and that classifying Ether as a security would essentially criminalize anyone sending ETH.

The SEC and crypto entrepreneur Justin Sun have jointly asked a federal court to pause their legal battle to "explore a potential resolution." This request for a 60-day timeout comes as the SEC has been hitting the brakes on various crypto enforcement actions under the Trump administration, which promised during the campaign to make the US the "world capital" for crypto.

The regulatory whiplash is particularly interesting considering that Sun is the biggest investor in Trump's crypto platform, World Liberty Financial, having poured in a cool $75 million through two major investments.

SEC agreed to drop its lawsuit against Consensys with no fines or conditions, marking a significant shift in crypto regulation

Change attributed to new SEC leadership and Trump administration's pro-crypto policies with a "tenor change" in discussions after the election

Similar SEC retreats from cases against Uniswap, Robinhood Crypto, Gemini, and potentially Justin Sun suggest a broader regulatory pivot in crypto enforcement

House democrats propose bill to ban presidential memecoins

House Democrats are preparing to introduce the Modern Emoluments and Malfeasance Enforcement (MEME) Act.

California Representative Sam Liccardo, who's spearheading this legislative effort, told ABC News on February 27 that the bill would prohibit public officials from profiting from digital assets. With the battle cry "Let's make corruption criminal again" (a slogan that deserves its own memecoin, honestly), Liccardo is taking aim at those who would dare to leverage their political clout for crypto cash.

The legislation, which is expected to be introduced on February 27, would apply to a veritable Who's Who of Washington: the president, vice president, members of Congress, senior executive branch officials, and even their spouses and dependent children.

According to Liccardo, the bill already has a dozen Democratic sponsors who are working to build bipartisan support. He didn't mince words about his target, stating that "The Trumps' issuance of memecoins financially exploits the public for personal gain and raises the specter of insider trading and foreign influence over the executive branch.

This legislative push comes amid what can only be described as memecoin carnage. President Trump launched his TRUMP token just days before taking office, with First Lady Melania Trump quickly following suit with her own digital asset. Since their launches, both tokens have performed about as well as a snowball in a microwave, with TRUMP sinking 82% from its all-time highs and MELANIA sliding a jaw-dropping 93%. That's not just a dip—that's a nosedive into the Mariana Trench of crypto valuation.

While investors watch their memecoin portfolios evaporate. Hester Peirce, director of the SEC's crypto task force, suggested most memecoins don't even fall under the SEC's jurisdiction, pointing instead to Congress or the CFTC.

This isn't the only memecoin legislation making waves in Congress. Senator Cortez Masto recently proposed an amendment to prohibit federal employees from benefiting from memecoins "in which the Chinese communist party invests." Because apparently, the only thing more concerning than American officials profiting from memecoins is Chinese officials doing the same.

According to Bitwise chief investment officer Matt Hougan, what we're witnessing might be "the end of the memecoin boom"—which, given the performance of presidential tokens, might be the understatement of the year.

House Democrats are introducing the MEME Act to ban public officials from issuing or profiting from memecoins

Both TRUMP and MELANIA tokens have crashed dramatically since launch (82% and 93% drops respectively)

Regulators have been passing responsibility for memecoin oversight while investors lose billions in the downturn

Pump.fun account hack exposes memecoin security issues

Pump.fun had its X account compromised by hackers on February 26th. The digital ne'er-do-wells wasted no time in promoting a fake governance token with the tagline "democracy has never been this degen”.

Blockchain detective extraordinaire ZachXBT quickly flagged the breach, warning users to steer clear of the compromised account and avoid clicking on any links that promised riches but would likely deliver digital ruin. According to his investigation, these hackers weren't new to the game – they're believed to be the same group responsible for similar attacks on Jupiter DAO and DogWifCoin.

After regaining control of their account, Pump.fun said users that they had followed "industry best-practices" and had implemented numerous security measures. The platform claimed it had physical 2FA backups, regularly changed its unique and complex passwords, and kept 2FA disconnected from email addresses.

This incident is just the latest entry in the ever-expanding encyclopedia of crypto security fails. Remember when cryptocurrency exchange Bybit lost over $1.4 billion in Ether to North Korean hacker group Lazarus? That attack involved a sophisticated phishing campaign targeting cold wallet signers – proving once again that in crypto, your security is only as strong as your most gullible team member.

Memecoins have become particularly attractive targets for hackers and scammers, given their rapid rise, frenzied trading, and often questionable fundamentals. Even political figures aren't immune to memecoin mayhem – the Central African Republic President appeared to endorse a national memecoin that directed users to phishing sites, while Argentine President Javier Milei promoted a token called LIBRA before hastily deleting his post when the price crashed.

Regulators worldwide are finally catching up to the memecoin madness. The SEC recently announced a new group to combat crypto fraud, while Dubai's Virtual Assets and Regulatory Authority warned that "many such assets lack intrinsic value and derive their pricing from social media trends, hype, or misleading promotional strategies."

Even Pump.fun's anonymous founder admitted the industry needs "guardrails," including better user education and more serious approaches to protection. Waves DeFi protocol founder Sasha Ivanov offered a more pessimistic view, suggesting the "extractive economy cannot be very stable" and might only last "maybe for half a year more."

Hackers compromised Pump.fun's X account to promote a fake governance token, likely the same group behind Jupiter DAO and DogWifCoin attacks

Memecoins have become prime targets for security breaches, scams, and scandals, with even political figures getting entangled

Regulators worldwide are increasing scrutiny of memecoins, with the SEC forming a special group to combat crypto fraud as the industry calls for better protections

That's a wrap, my lovely PoI readers! I hope this edition left you feeling informed, entertained, and maybe even a little bit richer (in knowledge, of course). From Nvidia's AI dominance to the regulatory whiplash in Washington, we're witnessing tech history in the making. Remember to stay curious, stay informed, and keep spreading the love. Until next time, this is Mochi, signing off with a virtual high-five!

P.S. Don't forget to share your thoughts, questions, and favorite crypto puns with us. very voice matters in the PoI community! 📣❤️ Share the newsletter

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