Hey there, PoI readers! 💫

It's your favorite crypto connoisseur, Mochi, back with another serving of tantalizing tech and web3 news. From Vitalik's gas-tastic proposals and Argentina's crypto drama to Vegas-style schemes and state-level Bitcoin adoption, we've got a rollercoaster of stories today that'll make your head spin faster than a blockchain validator! So grab your favorite beverage and let's dive into today's digital digest!

INTEL BRIEF

🟧 Vitalik Buterin advocates for increasing Ethereum's gas limit beyond 36 million, citing improved censorship resistance, L2 interoperability, and disaster recovery capabilities as key benefits.

🟧 A cryptocurrency called Libra, initially endorsed by Argentina's President Javier Milei, experienced a catastrophic 94% crash after team members allegedly extracted $107 million in what appears to be a sophisticated rug pull.

🟧 Las Vegas resident Brent Kovar faces serious charges for allegedly orchestrating a $24 million AI-crypto mining Ponzi scheme that defrauded over 400 investors with false promises of guaranteed returns.

🟧 West Virginia joins several other US states in proposing legislation to allow state treasury investment in digital assets, with Bitcoin being the only cryptocurrency currently meeting the bill's market cap requirements.

Vitalik Wants Ethereum To Handle 9X More Traffic As Layer 2s Face Breaking Point

Vitalik blog post dropped on February 14th and, He made a compelling case for cranking up Ethereum's gas limit even further than its recent bump from 30 to 36 million.

While Ethereum's been playing matchmaker with Layer 2 solutions (L2s). Buterin argues that the base layer still needs some serious muscle.

Buterin's calculations suggest we might need to beef up Ethereum's capacity by up to 9x to handle potential L2 emergency situations. Imagine if a popular L2 with millions of users suddenly went "oopsie" – we'd need enough space for everyone to grab their digital assets and run.

Currently, moving low-volume assets and NFTs between L2s is about as expensive as buying a designer coffee in Silicon Valley. Buterin estimates we need about 5.5x more capacity to make these transfers as smooth.

And speaking of smooth, mark your calendars for April 8th, when the Pectra upgrade is believed to be hitting the mainnet. This bad boy is set to double the number of "blobs" (fancy data packets) from three to six per block, giving L2s more room to stretch their legs.

Vitalik advocates for higher gas limits to strengthen L1's role as a security backbone and emergency escape hatch for L2s

Current capacity might need up to 9x scaling to handle mass L2 exits in crisis scenarios

Pectra upgrade, expected April 8th, aims to double blob capacity for improved L2 scalability

Inside The 107M Crypto Scam That Fooled Argentinas President And Vanished Overnight

The Libra token (LIBRA) went from hero to zero. The token, which initially received a thumbs up from Argentine President Javier Milei himself, took a nosedive that would make even the most hardened crypto traders wince.

According to our friends at Lookonchain (who are probably still picking their jaws up off the floor), eight wallets believed to be connected to the Libra team pulled off what appears to be an expertly choreographed rug pull. These digital desperados managed to extract a whopping 57.6 million USDC and 249,671 SOL (worth $49.7 million), totaling an eye-watering $107 million.

The token's market cap did a spectacular swan dive from $4.56 billion to a mere $257 million in just 11 hours.

The drama peaked when President Milei, who had initially shared the project's details on X, pulled a digital moonwalk and deleted his endorsement post.

In true political fashion, Milei responded to the debacle with a spicy statement on X, essentially telling his political opponents they're "filthy rats". I guess that's one way to handle a crypto crisis!

Libra token, endorsed by Argentina's President, crashed 94% after team allegedly extracted $107M

Eight wallets linked to the team drained massive amounts of USDC and SOL from the project

President Milei deleted his endorsement and blamed political opponents for the fiasco

Vegas AI Crypto Mastermind Faces 330 Years After Stealing 24M From 400 Victims

Brent Kovar, our protagonist who apparently thought running a Ponzi scheme. From 2017 to 2021, this creative entrepreneur allegedly convinced over 400 investors to part with their hard-earned cash.

His company, Profit Connect (spoiler alert: the only one profiting was allegedly him), claimed to be an AI-powered crypto mining operation. And boy, did he know how to put on a show! With a combination of PowerPoint presentations (because nothing says "legitimate business" like slides), YouTube videos, and promises that would make a snake oil salesman blush, Kovar allegedly offered investors returns of 15% to 30% annually. Oh, and did I mention the 100% money-back guarantee? If that sounds too good to be true, well... gestures broadly at everything.

Instead of actually mining crypto, Kovar is believed to have been mining his investors' wallets to fund a lifestyle that would make a Vegas high-roller jealous. We're talking employee gifts, a new house, and the classic Ponzi move of paying early investors with new investors' money.

Now, our friend faces a potential 330-year vacation courtesy of the federal government and a fine of up to $4.5 million.

The silver lining? The FBI's "Operation Level Up" is apparently crushing it, saving potential victims around $285 million in just one year.

Las Vegas man allegedly scammed 400+ investors out of $24M with fake AI-crypto mining operation

Promised 15-30% annual returns and 100% money-back guarantee while allegedly funding personal expense

Faces up to 330 years in prison and $4.5M in fines if convicted

West Virginia Leads 23 Billion Dollar Race As US States Fight To Buy Bitcoin First

The Bitcoin adoption race between US states is heating up, and West Virginia just entered the chat with some spicy legislation!

State Senator Chris Rose is making waves with what might be the most interesting Valentine's Day gift of 2024 - The Inflation Protection Act of 2025. Think of it as a love letter to digital assets, but with more legal jargon and fewer heart emojis!

The bill's requirements are strict. Digital assets need a market cap of over $750 billion to make the cut. Currently, Bitcoin's sitting pretty as the only crypto cool enough to join this exclusive club.

But West Virginia isn't the only state trying to get their digital asset groove on. Utah, Kentucky, and Michigan all racing to secure their seats at the digital asset table. Even the federal government is getting FOMO, with President Trump commissioning a working group to study national digital asset reserves.

According to our friends at VanEck (who probably have more spreadsheets than I have bad crypto puns), these state initiatives could potentially drive $23 billion worth of Bitcoin demand. That's enough to make even the most hardened crypto skeptic raise an eyebrow!

The best part? States can choose to hold their assets either onchain or through ETFs.

West Virginia proposes bill allowing 10% of state treasury to be invested in digital assets and precious metals

Bitcoin is currently the only cryptocurrency meeting the bill's $750B market cap requirement

Multiple states including Utah, Kentucky, and Michigan have introduced similar legislation, potentially driving $23B in Bitcoin demand

And that's a wrap, my wonderful PoI readers! 🎭 What a wild day in crypto - we've seen everything from presidential tweet deletions to state treasuries getting crypto-curious. Remember, whether you're dealing with gas limits or government reserves, always DYOR (Do Your Own Research) and never invest more than you can afford to lose! This is your favorite Japanese ice cream-named writer signing off until tomorrow!

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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