Could this be the end of Bitcoin?

PLUS: Ethereum wallets under attack • $549M in token unlocks could shake altcoin markets • Musk teases X money rollout

Author

Cryptopolitan News
May 27, 2025 • Estimated Reading Time: 10 minutes

📬 Today’s Byte

• Google just shrunk Bitcoin’s security timeline: Is this the end?

• $549M in Token unlocks incoming.

• Ethereum’s EIP-7702 exploit drains $146K in memecoins.

• Thread of the day

🚨 Quantum shock

Google's latest breakthrough in quantum computing could flip the script on crypto security.

Last December, the tech giant introduced “Willow”,  a quantum chip it claimed could solve problems in minutes that would take today’s supercomputers 10 septillion years. Critics said it could eventually break Bitcoin’s encryption or even rewrite the blockchain.

Now, Google’s quantum lead Craig Gidney says breaking 2048-bit RSA encryption may need 20x fewer qubits than previously estimated, putting Bitcoin’s elliptic curve cryptography squarely in the crosshairs.

What’s new:

  • Google estimates a quantum computer with under 1 million noisy qubits could break RSA-2048 in under a week.

  • Bitcoin runs on elliptic curve cryptography, which is equally vulnerable to Shor’s algorithm, a quantum attack method.

  • While we’re not there yet, Google says the trajectory is clear: quantum threats are moving faster than expected.

Why it matters:

Crypto wallets, exchanges, and even Layer-1 chains like Bitcoin rely on cryptographic assumptions that quantum computers are nowhere near cracking. That’s no longer a safe bet.

Google’s research suggests timelines for post-quantum migration may need to accelerate, well before the 2030 deadline set by NIST.

The bigger picture:

  • Project 11, a quantum research group, has launched a bounty to break Bitcoin’s encryption using quantum tools even in simplified forms.

  • IBM, Quantinuum, and others are racing toward large-scale quantum machines with 100,000+ qubits by the end of the decade.

  • Meanwhile, governments and firms may already be harvesting encrypted data to decrypt later.

The takeaway: Bitcoin isn’t broken yet. But if you’re holding, building, or securing crypto, it’s time to start thinking post-quantum.

Elon Musk has confirmed that X will launch X money soon. This is setting up the social media platform to be an everything app, as Musk wanted. The money service is expected to give users a digital wallet on X to store money and make peer-to-peer transfers.

📊 Market Watch

Between May 25 and June 1, more than $549 million in crypto tokens will hit the market, potentially shifting supply-demand dynamics across several ecosystems.

Before diving in, let’s break down the two types of unlocks:

🔓 Cliff unlocks
Large token releases that hit the market all at once. These often coincide with vesting schedules for early investors or team allocations and can create sudden sell pressure.

📤 Linear unlocks
Gradual releases over time, typically designed to smooth out supply increases. These are less likely to disrupt markets unless paired with low liquidity or weak demand.

Major cliff unlocks this week:

  • Sui: $157.9M (44M tokens, 1.32% of total supply) — largest dollar-value unlock

  • Bio Protocol: $29.4M (339M tokens, 19.84%) — highest % of supply unlocked

  • Optimism (OP): $23.2M (31.3M tokens, 2.02%)

  • KMNO & ZETA add another ~$26M
    → Total cliff unlock value: ~$260M

Major linear unlocks this week:

  • Solana (SOL): $81.3M (465K tokens, 0.09%) — biggest linear unlock

  • Worldcoin (WLD): $52.5M (2.69% of supply)

  • DOGE: $21.3M (96.5M tokens, 0.06%)

  • TAO, TIA, AVAX, ETHFI round out the list with steady inflows
    → Total linear unlock value: ~$288M

Smaller projects, Same pressure

Projects like NFPrompt, Metahorse Unity, and TOPGOAL are at various stages of their unlock schedules. While smaller in dollar value, these still matter for microcap token holders.

Why it matters: Cliff unlocks can trigger short-term volatility, while linear unlocks are less disruptive but still contribute to supply inflation. If you’re holding any of these tokens, now’s the time to watch the charts.

Long-term Bitcoin holders are showing potential bullish momentum following an addition of 300,000 BTC by long-term holders in 20 days. On-chain data also revealed that long-term holder spending dropped to its lowest since September 2024.

🛡️ Security Watch

A user upgrading their Ethereum wallet to EIP-7702 smart account support has fallen victim to a sophisticated phishing attack, losing $146,551 in memecoins.

The twist?

The scam didn’t involve sending funds to a phishing address. Instead, attackers used MetaMask’s new EIP-7702 delegator to sneak in malicious approvals.

According to Scam Sniffer, the victim unknowingly signed batched transactions — allowing the scammers to drain their tokens using two wallets linked to the notorious Inferno Drainer group.

❝

This time, the user’s EOA wasn’t switched to a phishing address. The delegate itself was legit — MetaMask’s own EIP-7702 Delegator.
— Yu Xian, founder, SlowMist

What is EIP-7702 and why does it matter?

  • EIP-7702 is a new feature rolled out in the Pectra upgrade, allowing users to temporarily enable smart account functionality on their existing wallets.

  • It offers perks like transaction batching, gas sponsorship, and alternate authentication, no need for a full smart contract wallet.

  • But these new abilities can also be abused by malicious contracts if users delegate to the wrong address.

Data from Dune Analytics shows that of the 175 delegate contracts created so far, over 36% are flagged as malicious.

Lessons for crypto users:

  • Always verify what you’re signing. Don’t batch-approve anything unless you’re 100% sure what it does.

  • Don’t click MetaMask upgrade links from websites or emails. Any upgrade prompt will appear inside the wallet interface.

  • Use block explorers or tools like GoPlus Security to audit your authorization records and cancel anything suspicious.

The takeaway: EIP-7702 was built to enhance UX but it’s also introducing new attack surfaces. Phishing is evolving. So should your wallet hygiene

Tether, the USDT stablecoin issuer, has invested around $5 billion of its profits in US-based companies in the last two years, according to company CEO, Paolo Ardoino. The executive disclosed this on X to highlight how the firm is invested in the American economy.

🧵 Thread of the day by @CPOfficialtx

Market-moving headlines 🔥

Christine Lagarde, head of the European Central Bank, said Monday in Berlin that the ongoing chaos in Washington under President Donald Trump is handing Europe a “prime opportunity” to push the Euro into the spotlight and start taking power from the US dollar.

Authorities in Paris, France, have been on a roll, picking up suspects in recent kidnappings and attempted abductions in the country linked to crypto executives, high net-worth individuals and their relatives. 

Swiss exports to the US dropped sharply in April, highlighting the effects of President Donald Trump’s tariff policy.

Foreign sales, adjusted for seasonal changes, fell by 36% compared to March. Imports from the US also decreased by 15%, according to a statement from the customs office in Bern.

The $TRUMP token dropped by 7% on Saturday morning, hours after President Donald Trump hosted a black-tie gala at his Virginia golf club. The event was held for holders of his meme coin, who collectively spent $148 million just to attend.

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