Toronto, Ontario–(Newsfile Corp. – August 18, 2025) – Prophecy DeFi Inc. PDFI (“Prophecy DeFi” or the “Company“) is issuing a correction to the previously disseminated press release dated August 18, 2025. The press release incorrectly described the Principal Amount of the Notes. The complete and correct press release follows.

Toronto, Ontario–(Newsfile Corp. – August 18, 2025) – Prophecy DeFi Inc. PDFI (“Prophecy DeFi” or the “Company“) announces that on August 15, 2025, it issued to certain creditors of the Company (collectively, the “Lenders“) interest bearing demand promissory notes (the “Notes“) in the aggregate principal amount of $100,000 (the “Principal Amount“).

Interest on the outstanding Principal Amount of the Note will accrue from time to time of the Principal Amount until the Principal Amount is repaid in full at the rate per annum equal to ten percent (10%), calculated monthly, as well after as before maturity and both before and after default. The Principal Amount and any accrued and unpaid interest owing shall become due and be paid in full on demand by the Lenders.

The issuance of the Notes to the Lenders constitutes a “related party transaction” as such term is defined by Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”) as $25,000 Principal Amount of the Notes was issued to a director of the Company. The Company was exempt from the MI 61-101 valuation and minority approval requirements for related party transactions in connection with the issuance of the Note under sections 5.5(a) and 5.7(1)(a) of MI 61-101 as neither the fair market value (as determined under MI 61-101) of the subject matter of, nor the fair market value of the consideration for, the transaction, insofar as it involves the director, exceeds 25% of the Company’s market capitalization (as determined under MI 61-101).

The Notes were approved by the members of the board of directors of the Company who are independent for the purposes of the Notes. No special committee was established in connection with the Notes, and no materially contrary view or abstention was expressed or made by any director of the Company in relation thereto.

About Prophecy DeFi

Prophecy DeFi Inc. (PDFI) is a publicly traded investment company whose primary objective is to invest its funds for the purpose of generating returns from capital appreciation and income. It plans to accomplish these goals by bringing together technology start-ups in the Blockchain and Decentralized Finance sectors to fund innovation, elevate industry research, and create new business opportunities in a coherent ecosystem.

www.prophecydefi.com

For further information, please contact:

John McMahon, CEO

Tel: (416) 764-0314

Email: jmcmahon@prophecydefi.com

Forward-Looking Information

This news release contains forward‐looking statements and forward‐looking information within the meaning of applicable securities laws. These statements relate to future events or future performance. All statements other than statements of historical fact may be forward‐looking statements or information. More particularly and without limitation, this news release contains forward‐looking statements and information relating to the approval of the Notes. The forward‐looking statements and information are based on certain key expectations and assumptions made by management of the Company. Although management of the Company believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward‐looking statements and information since no assurance can be given that they will prove to be correct.

Forward-looking statements and information are provided for the purpose of providing information about the current expectations and plans of management of the Company relating to the future. Readers are cautioned that reliance on such statements and information may not be appropriate for other purposes, such as making investment decisions. Since forward‐looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. Accordingly, readers should not place undue reliance on the forward‐looking statements and information contained in this news release. Readers are cautioned that the foregoing list of factors is not exhaustive. The forward‐looking statements and information contained in this news release are made as of the date hereof and no undertaking is given to update publicly or revise any forward‐looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws. The forward-looking statements or information contained in this news release are expressly qualified by this cautionary statement.

Neither the CSE nor its Regulation Services Provider (as such term is defined in the policies of the CSE) accept responsibility for the adequacy or accuracy of this release.

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FOR DISSEMINATION IN THE UNITED STATES

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/262987

In Q2 2025, daily Web3 activity remained stable at around 24 million, but the underlying sector composition is shifting [1]. DeFi continues to dominate transaction counts with over 240 million weekly, yet Ethereum gas usage is increasingly led by emerging categories such as real-world asset tokenization (RWA), decentralized physical infrastructure (DePIN), and AI-based decentralized applications (DApps). Meanwhile, DeFi’s share of Ethereum gas has dropped to just 11%, while the “Other” category—covering RWA, DePIN, and AI—now accounts for over 58% of gas consumption [1].

DappRadar’s data shows that while crypto gaming remains the largest DApp category by user activity, its market share has declined from over 26% to below 19%. Social and AI-related DApps are gaining ground, with Farcaster attracting approximately 40,000 daily unique active wallets (UAW), and Virtuals Protocol (VIRTUAL) drawing 1,900 weekly UAW [1]. This suggests that adoption is broadening beyond traditional categories.

DeFi’s growing institutional interest is reflected in its total value locked (TVL), which has increased by 150% since January 2024 to reach $137 billion, though it remains below its all-time high of $177 billion [1]. The rise in TVL, coupled with a decline in UAW, indicates a shift toward large-scale capital participation and regulatory testing, particularly through permissioned liquidity pools and tokenized treasuries.

Gas usage data from Glassnode further highlights the changing dynamics: NFTs, which once consumed a significant portion of Ethereum’s gas, now account for just 4%, while RWA and DePIN are gaining computational and economic traction [1]. The total RWA value has surged from $15.8 billion at the start of 2024 to $25.4 billion today, indicating growing interest in tokenizing traditional assets [1].

In terms of price performance, smart contract platform coins and yield-focused DeFi and RWA tokens have outperformed the broader altcoin market. The top 10 smart contract platform coins rose an unweighted average of 142%, led by HBAR (+360%) and XLM (+334%). DeFi tokens averaged 77% YoY gains, with Curve DAO (CRV) up 308% and Pendle (PENDLE) up 110%. The top 10 RWA tokens gained 65% on average, with XDC (+237%) and OUSG (+137%) leading the pack [1].

Conversely, AI tokens have underperformed, with the top 10 AI-focused projects averaging a 25% decline YoY, despite strong narrative support. DePIN and social tokens also lagged, with DePIN’s top performers, JasmyCoin (JASMY) and Aethir (ATH), posting gains of 72% and 39% respectively, while the sector’s average was around +10% [1].

The data underscores that while hype can drive short-term volatility, sustained price gains are more closely aligned with sectors demonstrating tangible utility and adoption. As Web3 evolves, the sectors that currently deliver the most value—smart contract platforms, DeFi, and RWA—continue to attract the most investment and institutional confidence [1].

Source: [1] Time for a Web3 reality check: Which altcoin sectors are really delivering? (https://cointelegraph.com/news/time-for-a-web3-reality-check-which-altcoin-sectors-are-really-delivering?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound)

Tower gaming crypto token soars 214% as smart money piles in

A gaming crypto token created by Animoca Brands has surged 214% over the past month and caught the eye of savvy investors after the company’s popular chairman, Yat Siu, gave it a social media boost.

Tower was the fifth-most popular cryptocurrency among smart investors on the Base network over the past seven days, according to onchain analytics platform Nansen.

Tower is a utility token used across a slew of Animoca titles, including play-to-earn mobile defense game Crazy Kings, Crazy Defense Heroes and real-time PvP fighting game Wreck League.

Siu said the hype for the token came down to excitement around the reboot of Wreck League, as well as momentum from the token trending on Base and Farcaster.

He also reiterated that Tower was one of Animoca’s first community Web3 gaming token launches with no investor sales.

The majority of Tower’s upside —which is also available on Ethereum, Solana, TON and Polygon — came in the past two weeks after Siu announced that Animoca would begin supporting the Tower ecosystem with open-market token buybacks on August 5.

These buybacks are typically a bullish signal for investors, as they reduce the circulating supply and can potentially drive up the token’s value.

TOWER is trading at $0.0019 at the time of publication, up 214% over the past 30 days, according to CoinMarketCap. It represents approximately 8x the 27% gains ETH has clocked over the same period, trading at $4,534.

However, like most gaming tokens, TOWER is still significantly below its 2021 all-time highs by approximately 99%.

But the Web3 gaming community anticipates only more upside ahead for Tower. Gaming commentator Boxmining said on Thursday, “$TOWER reversal is gonna melt faces,” and he is “positioning early for this huge gaming narrative.” 

Meanwhile, fellow gaming commentator Hoogie said, “It’s not just a gaming token.. It’s a builder-powered ecosystem that keeps showing up early.” 

Saanjana Nikita called Tower a “bear market gem.”

Web3 gaming funding surges 94% as Bitcoin and Ether rally

The Web3 gaming sector attracted $60 million in investment in July amid a Bitcoin and crypto market rally, according to Web3 analytics platform DappRadar.

“The industry is entering a more mature phase — one focused on quality gameplay, sustainable economies, and infrastructure designed to scale,” DappRadar said in its report, noting that the total investment amount represents a 94% increase compared to June’s total.

Despite prices going up, overall blockchain activity “cooled” in July. Blockchain gaming was the only segment to see growth, increasing 2% to 4.9 million daily unique active wallets, according to DappRadar.

In terms of activity, the Optimism-based layer-2 network opBNB topped the charts for gaming engagement, followed by the Sei network in second place and the Ronin Network in third place. Ronin’s spike came after launching Ronin Profiles for cross-game identity and teasing the upcoming Ronin 2.0 tokenomics.

Other notable gaming updates also helped drive activity to the sector. 

Gunzilla Games’ highly anticipated shooter game Off The Grid moved from early access to a full launch across PlayStation, Xbox, the Epic Games Store and Steam. Meanwhile, the Ronin-based MMORPG Lumiterra surpassed 300,000 daily wallets.

AI won’t be nerfing game developers anytime soon, says Immutable exec

Immutable’s head of gaming isn’t worried about artificial intelligence threatening developer jobs in the gaming industry.

“I fundamentally believe there are factors that just can’t be replaced, like human creativity and human hands in the process of building a great game,” Immutable game director Patrick Wagner tells Magazine.

“People are the ones that play them,” he emphasizes.

It may seem like wishful thinking for a game developer to claim AI won’t take game developer jobs, but Wagner says he’s yet “to see a game be completely built by AI that is successful and fun.” 

“I can see that if you’re a two-person band trying to build a game, it can be helpful to get you there faster and convey messages faster. But it’s not the be-all and end-all,” he adds.

Wagner explains that Immutable’s approach is to use AI as a production tool to improve efficiency.

A similar sentiment was echoed by YouTube’s former head of gaming, Ryan Wyatt, in October 2023.

More recently, AI has become increasingly popular in Telegram blockchain games. In February, gaming network GOAT Gaming launched AI agents, which play games to earn crypto for you and bet on prediction markets.

Mighty Bear Games CEO Simon Davis told Web3 Gamer in January that it was “almost like being in Rome and owning a stable of gladiators.”

Other News

— Ronin Network says it is “coming home to Ethereum.” The network explains that it was initially built four years ago to give Axie Infinity a more efficient platform, but it’s returning to mainnet now that Ethereum’s speeds and transaction capabilities are “better than ever.”

— Gaming giant Immutable opens the floodgates to Web2 games. In a recent X post, the firm said, “As of today, Immutable Play is now open to all games.” Immutable noted that gaming company Ubisoft is the first to join.

The recent movements in the cryptocurrency market have drawn attention to Ethena (ENA), Dogecoin (DOGE), and Solana (SOL), with investors and analysts closely watching how these tokens respond to broader crypto market trends. As Bitcoin (BTC) approaches historic highs, the market appears to be in a period of heightened volatility and shifting momentum, influencing smaller and mid-cap altcoins differently. Both SOL and DOGE have experienced notable surges in recent weeks, aligning with a broader bullish trend in the crypto space [1][2].

Ethena (ENA), a token with a growing presence in the DeFi ecosystem, has attracted speculative interest, particularly due to its projected performance. Analysts estimate that ENA could reach $0.7373 in June 2026, assuming a steady monthly growth rate of 0.42% from the current price [3]. This projection is based on technical and fundamental assumptions but does not reflect any immediate market movement. Investors are advised to remain cautious, as the token is still relatively new and subject to high volatility.

Dogecoin (DOGE) has seen a sharp decline, with its price dropping to $0.22 USD in recent trading sessions. Analyst Carl Moon noted a potential head and shoulders pattern on the DOGE 4-hour chart, suggesting a price target around $0.19 USD [1]. The broader market remains cautious, with DOGE currently facing critical resistance levels around $0.24. A breakout above this level could signal renewed buying interest, but failure to push past could lead to a further pullback. DOGE is currently in a consolidation phase, and traders are watching closely for any signs of a breakout or breakdown [4].

Solana (SOL) has been among the most active performers in recent market sessions. The token’s recent surge followed major macroeconomic reports, including the CPI data, which triggered widespread buying across the market. SOL’s ability to outperform larger tokens like Ethereum has led to speculation that it could continue to benefit from increased institutional adoption and growing DeFi activity on its platform [1][5]. Analysts remain in a long position for SOL, anticipating continued growth upon testing the $175 USD level.

Despite these positive developments, the broader market remains subject to regulatory uncertainty and macroeconomic factors. Recent news regarding the Binance CEO highlights the regulatory challenges facing the crypto industry, potentially adding volatility to the market [6]. However, the focus on ENA, DOGE, and SOL suggests that retail and institutional investors are beginning to shift their attention toward tokens with strong utility and network growth.

In conclusion, while the current trajectory for ENA, DOGE, and SOL appears optimistic, investors should remain mindful of the risks inherent in the crypto market. Each token has unique fundamentals and market dynamics, and decisions should be made based on thorough research and risk management strategies.

—

Sources:

[1] Source: KuCoin, Cryptocurrency Market News Today (https://www.kucoin.com/news)

[3] Source: Bitget, Ethena (ENA) Price Prediction (https://www.bitget.com/price/ethena/price-prediction)

[4] Source: Binance, Coinspeaker’s Profile (https://www.binance.com/en/square/profile/coinspeaker)

[5] Source: CryptoWeekly, Chainlink Price Prediction: LINK To Lead The Next Crypto … (https://cryptoweekly.co/news/chainlink-price-prediction-crypto-boom/)

[6] Source: Blockchair, Binance : l’ex CEO demande de rejeter la plainte intentée … (https://blockchair.com/news/binance-lex-ceo-demande-de-rejeter-la-plainte-intentee-par-ftx-de-18-milliard-de-dollars–2d63535778)

The LINE NEXT exhibition area, operated together with Kaia DLT Foundation, will be named “Mini Dapp Station” and will introduce the diverse range of Mini Dapps available on LINE Messenger and its vision for the future of stable coins. Mini Dapp partners, including Capybobo by Pluto Studio and Asahi TV’s subsidiary extra mile, will be there, too, showcasing their games. LINE NEXT will also be holding several lucky draws and hosting a series of small sessions in Japanese and English by Web3 industry leaders with a special guest appearance by a Japanese idol from the stage of its exhibition area.

In addition, a LINE NEXT official will give a presentation at the main session of WebX on August 26 to talk about LINE NEXT’s Mini Dapp strategy and the company’s vision of how to utilize stable coins to shape a new Web3 user experience.

Kicking off those Web3 activities, LINE NEXT will host a pre-conference “Mini Dapp Festa” together with Bitget on August 24. The Festa will present new opportunities for further expanding LINE NEXT’s Web3 ecosystem based on the Kaia mainnet, along with a performance by a Japanese singer and star Tomomi Itano.

LINE NEXT’s Mini Dapps have been steadily gaining popularity since their launch in January, recording 130 million accumulated users for over 90 Mini Dapps on the Dapp Portal. Along with Mini Dapps, LINE NEXT aims to introduce stable coin services to improve accessibility to Web3 services.

WebX2025 is Asia’s largest gathering of professionals related to crypto assets, blockchain, and other Web3 technologies, offering visitors a chance to interact directly with companies, experts, entrepreneurs, investors, government officials, and media from Japan and abroad. This year the event will be held August 25-26 in Tokyo.

Flare Network has introduced new yield-generating opportunities for XRP holders through its decentralized finance (DeFi) infrastructure, marking a significant development for the asset. Scott Melker, host of The Wolf of All Streets podcast, highlighted this advancement in a recent tweet, where he referenced an episode featuring Flare co-founder Hugo Philion and Sentora co-founder Jesus Rodriguez [1]. The discussion detailed how Flare is enabling DeFi functionalities—such as lending, stablecoin issuance, and decentralized exchanges—for XRP and other tokens previously excluded from these markets.

Philion explained that Flare functions as an independent layer-one blockchain with built-in data protocols designed to support decentralized applications. These protocols serve as the foundation for enabling XRP to participate in DeFi. Despite its presence in the digital asset market, XRP has been largely absent from yield-bearing opportunities, a gap Flare aims to close by offering an Ethereum Virtual Machine (EVM)-compatible environment for developers to build financial applications [1].

The integration allows XRP holders to use their assets as collateral for stablecoin issuance, which can then be deployed across DeFi platforms to generate returns. Rodriguez outlined how Sentora’s product, Firelight, is being developed on Flare to facilitate structured risk management and yield strategies for both institutional and retail participants. These strategies include lending XRP, borrowing stablecoins, and reinvesting in yield-generating platforms while mitigating risks such as liquidation and slippage [1].

Flare’s approach is not limited to institutional investors. Philion emphasized that the platform is designed to accommodate both institutions and retail users, with a focus on accessibility for XRP holders who may possess significant amounts of the asset. The integration of neutral, decentralized data sources and Oracle systems, according to Philion, provides an institutional-grade infrastructure that also benefits retail investors by ensuring robust security and efficient execution [1].

Rodriguez noted that initial yield estimates for XRP holders could range between 4% and 7%, depending on market conditions and the specific strategies employed. These opportunities are available via non-custodial protocols, ensuring that users retain control over their assets unless they opt for custodial services. Flare’s FXRP bridge further supports this by allowing XRP to move onto the Flare blockchain without centralized intermediaries [1].

The broader implications of this development extend beyond immediate yield generation. Philion outlined Flare’s vision for expanding the DeFi ecosystem around XRP and other non-yielding tokens, including the potential for lending, stablecoins, and decentralized exchanges. Rodriguez added that long-term goals include the introduction of innovative applications such as DeFi insurance, which could provide additional avenues for XRP to generate returns [1].

The collaboration between Flare and Sentora aims to create a sustainable framework for yield generation that caters to both institutional and retail participants. By bridging the gap between XRP and DeFi, Flare is positioning itself as a key player in unlocking the next phase of utility for the asset. This development represents a pivotal shift in the landscape for XRP, which has historically lacked integration with decentralized financial markets [1].

Source: [1] XRP Yield Is Here: How Flare Brings DeFi Applications for XRP Holders (https://timestabloid.com/xrp-yield-is-here-how-flare-brings-defi-applications-for-xrp-holders/)

The LINE NEXT exhibition area, operated together with Kaia DLT Foundation, will be named “Mini Dapp Station” and will introduce the diverse range of Mini Dapps available on LINE Messenger and its vision for the future of stable coins. Mini Dapp partners, including Capybobo by Pluto Studio and Asahi TV’s subsidiary extra mile, will be there, too, showcasing their games. LINE NEXT will also be holding several lucky draws and hosting a series of small sessions in Japanese and English by Web3 industry leaders with a special guest appearance by a Japanese idol from the stage of its exhibition area.

In addition, a LINE NEXT official will give a presentation at the main session of WebX on August 26 to talk about LINE NEXT’s Mini Dapp strategy and the company’s vision of how to utilize stable coins to shape a new Web3 user experience.

Kicking off those Web3 activities, LINE NEXT will host a pre-conference “Mini Dapp Festa” together with Bitget on August 24. The Festa will present new opportunities for further expanding LINE NEXT’s Web3 ecosystem based on the Kaia mainnet, along with a performance by a Japanese singer and star Tomomi Itano.

LINE NEXT’s Mini Dapps have been steadily gaining popularity since their launch in January, recording 130 million accumulated users for over 90 Mini Dapps on the Dapp Portal. Along with Mini Dapps, LINE NEXT aims to introduce stable coin services to improve accessibility to Web3 services.

WebX2025 is Asia’s largest gathering of professionals related to crypto assets, blockchain, and other Web3 technologies, offering visitors a chance to interact directly with companies, experts, entrepreneurs, investors, government officials, and media from Japan and abroad. This year the event will be held August 25-26 in Tokyo.

Bitcoin’s recent price movements have exposed the fragilities embedded in the cryptocurrency market, particularly amid a sharp correction that led to over $1 billion in derivative liquidations. The drop, which saw Bitcoin fall from $124,000 to $118,000, triggered widespread margin calls, exacerbating downward momentum and highlighting the dangers of excessive leverage. Analysts suggest this episode reflects profit-taking rather than a full market reversal, but it underscores how leveraged positions can amplify volatility and systemic risk [1].

The surge in DeFi lending, meanwhile, reflects a shift in investor strategy. Total crypto lending hit $531 billion in the second quarter, marking a 27% increase and the highest level since early 2022. This growth is largely driven by increased demand for yield-generating assets, particularly within decentralized platforms. DeFi protocols are now central to the broader crypto ecosystem, with investors using them for stablecoin issuance and passive income through collateralized borrowing [1]. Some platforms offer annual percentage yields (APY) as high as 15%, attracting users with the promise of superior returns compared to traditional finance [1].

However, these opportunities come with inherent risks. Smart contract vulnerabilities and the potential for rapid liquidation during volatile periods are major concerns. For instance, a borrower using Ethereum as collateral could face sudden liquidation if prices drop sharply, wiping out their margin. The recent Aave withdrawal in July has already pushed the ETH borrowing rate above the staking yield, disrupting traditional carry trade strategies and triggering a deleveraging wave. This led to a record 13-day wait on the Ethereum 2.0 exit queue, signaling growing pressure on liquidity and market stability [1].

The divergence between on-chain and off-chain markets has also widened. Off-chain borrowing costs for USDC have continued to rise, while on-chain rates remain stable. This growing spread, the widest since late 2024, indicates strong demand for off-chain liquidity, which could intensify market volatility if tightening conditions persist. Analysts warn that such imbalances may amplify the risk of further liquidation events and create feedback loops that destabilize the broader market [1].

The interplay between leveraged positions and DeFi protocols is reshaping how risk and reward are balanced in crypto. While macroeconomic tailwinds, including accommodative central bank policies, have supported Bitcoin’s recent recovery, the same factors could heighten volatility if expectations shift. Leveraged positions and DeFi mechanisms act as multipliers, intensifying both gains and losses during market swings. This dual dynamic underscores the market’s evolving nature, where traditional financial concepts are being reinterpreted in a decentralized context [1].

Despite the risks, the environment remains appealing to certain investors, particularly those with strong risk tolerance and technical understanding. Projects like Mutuum Finance, which recently raised over $14.5 million through a token presale, are capitalizing on the current bullish momentum to expand their lending and stablecoin offerings. The platform’s revenue-driven token buybacks and overcollateralized stablecoin model aim to build a self-sustaining ecosystem. However, its long-term success will hinge on robust risk management and secure infrastructure [1].

The recent $1 billion liquidation event, coupled with the growing reliance on DeFi lending, highlights a broader trend: the crypto market is undergoing a transition phase where traditional and decentralized finance are increasingly intertwined. As more participants adopt leveraged and yield-generating strategies, the system becomes more interconnected, with individual actions having wider market implications. This evolution brings both opportunity and vulnerability, reinforcing the need for cautious positioning and thorough risk assessment in a still-developing financial landscape [1].

Source: [1] Bitcoin’s Volatility Highlights Market Vulnerability Amid $1 Billion Liquidation and Growing DeFi Lending Demand (https://en.coinotag.com/breakingnews/bitcoins-volatility-highlights-market-vulnerability-amid-1-billion-liquidation-and-growing-defi-lending-demand/)