Over the weekend, a series of hacks affected several X accounts owned by crypto influencers and celebrities, leading to the promotion of various coins and resulting in temporary price increases.

One of the main targets was GCR, whose account was breached on May 26th. Following the breach, the hacker posted promotional content for ORDI and Luna2.0, causing brief price surges of 6% and 274% for the tokens. Observers remarked that instead of promoting a lesser-known microcap coin for potentially higher gains, the hacker opted for ORDI, which already boasts a market cap of $856 million.

 

Not Isolated

Udi Wertheimer, a Bitcoin developer and supporter of Ordinals, cautioned that the GCR incident might not be an isolated occurrence. It seems to be part of a wider campaign targeting celebrity X accounts, including mumble rapper Rich the Kid and media personality Caitlyn Jenner.

For Rich the Kid, a new token named $RICH appeared on the Solana meme coin creation platform pump.fun. Despite no official confirmation by Rich the Kid or their management team, the post has been removed. The current market cap for this coin remains stagnant at $144K, according to data by dexscreener.

 

Conspiracy Looms

Concerning the Jenner account, a meme coin dubbed $JENNER was also advertised, raising the market capitalization of the coin to $25 million, based on aggregated data by Raydium and GeckoTerminal.

Despite several videos by Jenner reassuring followers of the authentic posts, many industry experts suspect the account has been compromised. Intriguingly, the crypto wallet address shared by Jenner matches the one used by adult content creator Kazumi, whose account was hacked on May 20th to promote the ZUMI coin.

As of this writing, no information about the identity of the threat actor has been disclosed, and no particular entity has claimed responsibility for the hacks. Whether these incidents are connected or the work of a single hacker or group remains undetermined.

 

LayerEdge: Embarking on its journey with a promising Pre-Seed stage, LayerEdge secured support from the esteemed Blockchain Founders Fund, setting the stage for future growth and innovation.

 

 

MetaLeX: Stepping into the Seed stage with a remarkable $2.75M raise, MetaLeX, led by Adam Cochran and endorsed by Jake Brukhman, is poised for success with backing from cyber Fund.

 

 

Cysic: With an impressive $12.00M raise in the Pre-Series A phase, Cysic, endorsed by Mario Laul and CJ the "Doughnut", is charting a path towards pioneering cybersecurity solutions, supported by HashKey Capital.

 

 

Ather Digital: Recent activity saw Ather Digital making strategic moves, indicating exciting developments in the digital finance realm.

 

 

Unlockit: Making waves in the Pre-Seed stage with a $1.52M raise, Unlockit, endorsed by Sandeep Agg, gained support from Eaglestone Group, signaling bright prospects in unlocking digital potentials.

 

 

Alphaledger: Securing a substantial $9.50M in Series A funding, Alphaledger, endorsed by Maya Zehavi and HTX, is poised to drive innovation forward with backing from EJF Capital.

 

 

Plume Network: Positioned for growth in the Seed stage with a $10.00M raise, Plume Network, supported by Haun Ventures and endorsed by The Crypto Dog and Michael Arrington, is set to revolutionize the digital space.

 

It has been a whirlwind week in the crypto realm, with PEPE stealing the spotlight by smashing its previous records multiple times. Meanwhile, Bitcoin (BTC) took us on a rollercoaster ride, dipping below $66,500 only to bounce back and soar past $69,000 in a thrilling overnight surge. The highest recorded price for BTC during the last seven days was just below $71,500.

 

Altcoin Season

In the midst of all this, the cryptocurrency world was abuzz with the news by the U.S. Securities and Exchange Commission, particularly affecting Ethereum. The recent green light for eight Ethereum ETFs sent ETH on a rocket ride to over $3,900 mid-week, settling at a tantalizing $3,750.

PEPE was also not the only one experiencing a surge, as various other altcoins saw substantial gains. UNI, in particular, stole the spotlight with its impressive 20% leap, edging closer to $11. Other players like XRP, DOGE, TON, SHIB, DOT, IMX, and NEAR all made waves in the green sea. Currently, Bitcoin commands a market cap of $1.350 trillion and maintains its dominance over altcoins at 50.2%.

In the world of stocks, the NASDAQ Composite Index stands at 16,920.80, with a gain of 184.77 points or 1.10% as of 10:00 AM. The NASDAQ-100 is at 18,808.35, up by 184.96 points or 0.99% at the same time. The Dow Industrials are at 39,069.59, showing a minimal increase of 4.33 points or 0.01%. The S&P 500 is at 5,304.72, marking a rise of 36.88 points or 0.7%. The Russell 2000 is at 2,069.66, up by 21.25 points or 1.04%, while the Russell 1000 stands at 2,899.86, showing a gain of 20.16 points or 0.7%. In commodities, the Gold June 2024 futures are at 2,334.50, indicating a slight decrease of 2.70 points or 0.12%.

 

Other Markets

As the Indian election unfolds, the local markets brace for a potential selloff amidst uncertainty surrounding electoral objectives. Meanwhile, the Fed observes a cooling trend in its favored underlying inflation gauge. In the financial realm, bets on risky Collateralized Loan Obligations (CLOs) are yielding significant gains, as noted in the latest Credit Weekly report. Economist Paul Krugman warns that investors harboring confidence in interest rates may be deceiving themselves.

Elsewhere, Chinese companies push for a dumping probe into EU pork imports, while the Philippines prepares for its first storm of the year, inching closer to the capital. Corporate shifts are also underway, with BP Southern Africa and Shell Downstream poised to divest refinery assets, and Millennium allegedly urging Weiss to trim staff and shed clients during negotiations.

Additionally, Trafigura finds itself in a standoff with aluminum bulls over a substantial metal stash, while concerns arise in Shanghai as the pork price surge poses inflation risks. While China investigates a state tobacco official, Turkish state lenders intervene to support the lira following a significant drop. Amidst these market fluctuations, the U.S. imposes restrictions on some Australian poultry imports due to concerns over avian flu.

A woman has been sentenced by the Southwark Crown Court in London, UK, to nearly seven years in jail for her involvement in a money laundering scheme involving Bitcoin. She allegedly knowingly took part in a billion-dollar investment scam.

 

More Than Meets The Eye

Jian Wen, formerly employed in fast food, received a sentence of six years and eight months for her role in laundering substantial amounts of Bitcoin (BTC) associated with a $6.4 billion fraud in China. The trial found her guilty of laundering funds tied to approximately 150 Bitcoin for a Chinese individual between 2017 and 2022. Authorities seized over 61,000 BTC worth more than $4 billion.

During the sentencing, Judge Sally-Ann Hales emphasized the sophistication of the offense, stating that Wen knew the nature of her actions. Despite holding British and Chinese citizenship, Wen denied the allegations and is appealing her conviction, portraying herself as a victim manipulated by another individual.

However, prosecutors argued that Wen acted out of greed, playing a significant role in managing the crypto wallet linked to the laundering operation. They described her as a front person facilitating the conversion of stolen funds into Bitcoin and back into cash.

 

A Crime Of Ignorance

Wen maintained her innocence, claiming she was striving for a better life for her son and denying knowledge of the criminal origins of the Bitcoin in question. Yet, she was found guilty of one count of money laundering in March, while two other counts resulted in a hung jury.

Judge Hales stressed that while there was no evidence linking Wen to the initial fraud, she was aware of handling criminal proceeds. Wen was sentenced to six years and eight months in prison for a single count of money laundering.

Regarding broader regulations, the EU recently passed an anti-money laundering regulation targeting crypto-asset service providers (CASPs). The regulation aims to empower Financial Intelligence Units (FIUs) to detect and combat money laundering and terrorist financing, introducing enhanced due diligence measures and oversight through a new supervisory body, AMLA.

 

The playful and entertaining essence of meme coins often finds inspiration in various sources, including the pets of influential individuals. A notable instance is Floki Inu (FLOKI), which drew inspiration via Shiba Inu (SHIB) which shares the same name.

 

Right To Personal Enjoyment

The meme coin market has seen a resurgence, particularly on the Polygon (MATIC) network, where this trend has gained traction. However, it has stirred controversy amid allegations of insider manipulation, with accusations of pumping and dumping tokens within the community.

Recent events have intensified tensions within the community, notably when Polygon (MATIC) Labs CEO Marc Boiron openly supported a new meme coin inspired by his own dog. The response by Boiron to critics has been defiant, asserting his right to enjoy himself without external judgment. Despite his stance, criticism persists within the community, with some members expressing skepticism about the timing and motives behind his involvement with the NIGHT meme coin community.

 

Divided We Stand

The controversy surrounding the Polygon Labs team is a result of their association with ELE meme coin, allegedly inspired by a pet elephant owned by Polygon co-founder Sandeep Nailwal. Accusations have emerged, implicating several Polygon Labs insiders in promoting the project while exploiting developers and engaging in dubious practices.

While the actions of Boiron with NIGHT mirror those of Nailwal with ELE, Polygon Labs has yet to address the allegations or respond to inquiries regarding these accusations. In any case, the fallout due to the controversy has raised doubts about the integrity of the Polygon Labs team, especially given the drastic decline in the value of ELE since its inception. The community remains divided, with uncertainty lingering over the validity of the allegations against Polygon Labs.

 

The BlackRock Ethereum ETF, known as $ETHA, has reportedly been listed on the Depository Trust and Clearing Corporation (DTCC), following approval by the United States Securities and Exchange Commission (SEC). The move comes shortly after the SEC approved several spot Ether ETFs.

 

Key Details

The SEC has also greenlit eight other spot Ethereum exchange-traded funds (ETFs). These ETFs, proposed by various entities including VanEck, Fidelity, Franklin, Grayscale, Bitwise, ARK Invest & 21Shares, Invesco & Galaxy, and the BlackRock iShares Ethereum Trust, are slated for listing on Nasdaq, NYSE Arca, and the Cboe BZX Exchange.

However, it is important to note that trading will not begin immediately, as this largelyt depends on the S-1 filing approval for each of the ETFs. This approval process could take weeks to several months, depending on numerous factors and changing circumstances.

 

Time For Ether

Bloomberg ETF analyst James Seyffart noted that while the 19b-4 approval is certainly a significant step in the right direction, trading will not start until the SEC approves the S-1 documents as previously mentioned, a process that is notorious for being plagued with multiple delays.

Thus far, the SEC has initiated discussions with ETF issuers regarding the S-1 forms, with Seyffart estimating a potential five-month approval timeline. Following initial approval by the SEC, VanEck swiftly submitted an amended S-1 form. Additionally, the firm released a brief advertisement celebrating the approval, encouraging viewers to Enter the Ether.

 

Legislation known as the Financial Innovation and Technology for the 21st Century Act (FIT21) was approved by the U.S. House of Representatives on Monday, offering much-needed legal clarity on the classification, registration, and custody of crypto assets.

FIT21 received overwhelming support by Republicans and garnered 71 additional votes via Democrats, resulting in a final count of 279 yes to 136 no. The proponents of the bill aim to put an end to the approach by the SEC in terms of regulating the crypto industry through enforcement actions.

 

A Step In The Right Direction

Regarded as a significant step in crypto regulation, industry leaders hailed the bill as a crucial move towards establishing clear rules for digital asset trading and registration. Coinbase CEO Brian Armstrong lauded the legislation on X, emphasizing the importance of protecting consumer rights in using crypto and ensuring regulatory clarity to prevent misuse.

According to Representative French Hill (R-AR), the bill introduces an interim oversight mechanism for digital asset firms to file a notice of intent to register with federal regulators while regulatory responsibilities are being sorted out. Hill stressed that the main focus of the bill will be on stringent consumer protections to prevent incidents like the collapse of FTX. Moreover, the legislation aims to delineate which digital assets fall under the jurisdiction of the SEC and the Commodities and Futures Trading Commission (CFTC), resolving long-standing disputes over regulatory authority.

 

A Mixed Bag For Democrats

Democrats on the House Financial Services Committee expressed concerns that the bill would favor wealthy crypto firms avoiding SEC registration at the expense of ordinary investors. SEC Chairman Gary Gensler criticized the bill, arguing that existing laws are sufficient for crypto regulation and that the industry needs to comply with them rather than seeking further regulatory clarity.

Despite some opposition, a considerable number of Democrats supported the bill, emphasizing its importance in keeping the nation competitive in crypto regulation. The Biden administration initially opposed FIT21 but expressed willingness to collaborate with Congress on a comprehensive regulatory framework for digital assets.

It is also worth mentioning that, unlike recent crypto banking legislation, the administration did not indicate plans to veto FIT21, which passed the House with bipartisan support.

 

Metaplanet, a Japan-based investment firm, has witnessed a surge in its stock price by 158% in the past week, making it the top performer among all Japanese stocks. Currently priced at 93 Japanese yen, Metaplanet shares have soared by 127% in just two days. Such rapid growth prompted the Tokyo Stock Exchange to trigger circuit breaker trading halts multiple times within the week.

 

Making History

With a market cap nearing $1 billion, Metaplanet finds itself on the verge of breaching the threshold.

Per Tokyo Stock Exchange regulations, listed stocks priced under 100 Japanese yen are subject to a maximum daily increase of 30 Japanese yen, a limit Metaplanet surpassed for two consecutive days.

Dylan LeClair, the Director of Bitcoin Strategy for the company, highlighted this recent exceptional performance while noting its back-to-back status as the best-performing stock in Japan over two days. This is largely because, after unveiling its Bitcoin investment strategy on April 8th, 2024, Metaplanet has amassed a whopping 117.7 BTC, valued at $7.2 million presently. This move has propelled its stock price by 389%.

 

The Key Reasons

The company expressed intentions to leverage a full range of capital market tools to strategically enhance its Bitcoin reserves in a statement on May 13th. Metaplanet attributes its Bitcoin investment strategy to hedging against local escalating debt burden and the depreciating Japanese yen. The firm cited the staggering domestic debt-to-GDP ratio of 261%, the highest among developed nations, alongside the 34% decline of the yen against the US dollar since the start of 2021.

While the yen has depreciated, Bitcoin has appreciated by nearly 190% against the Japanese national currency in the last year. Metaplanet shares are currently exclusive to the Tokyo Stock Exchange, limiting access for US investors. Nevertheless, Arnab Naskar, one of the founders of the security token platform STOKR, has expressed interest in tokenizing Metaplanet shares on Liquid, a Layer-2 Bitcoin network, similar to what MicroStrategy has done in the past.

On May 21st, 2024, the campaign of former US President Donald Trump launched a fundraising page that permits federally permissible donors to contribute using cryptocurrency via Coinbase Commerce. Trump being open to adopting crypto presents a stark contrast with the current administration and their position on digital assets.

The campaign announced that supporters can visit the specified website to donate to the Trump campaign using cryptocurrency. All donation limits and disclosure requirements for crypto donations will comply with Federal Election Commission regulations.

 

Liberating Americans

In the announcement, Trump stressed his aim to lessen government control over financial choices for all Americans. Accepting crypto donations reflects his dedication to an agenda prioritizing individual freedom over increased government control, according to the campaign.

Biden surrogate Elizabeth Warren stated in opposition to cryptocurrency that she was assembling an anti-crypto army to limit autonomy in financial decision-making. MAGA supporters, now with a new cryptocurrency option, will assemble a crypto army, propelling the campaign to victory on November 5th, the announcement states. The mention of MAGA is intriguing, given that MAGA is a Trump-themed meme coin. It appears that Trump intends to signify openly embracing crypto through this asset.

 

Key Details

The campaign accepts various cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Solana (SOL), USDC, XRP, Dogecoin (DOGE), 0x (ZRX), and Shiba Inu (SHIBA). Supporters can donate in custom amounts or choose various predefined options such as $20.24, $2,024, $45, $47, and $4,547. The numbers 45 and 47 represent the fact that Donald Trump was the 45th President of the United States and aims to be the 47th.

However, it is worth noting that while the announcement claimed Trump as the first major party nominee to accept crypto donations, he is not the official nominee until July. Additionally, in 2015, Republican Senator Rand Paul accepted Bitcoin donations for his own presidential campaign.

 

An Intriguing Opportunity

The focus on crypto in politics comes as President Joe Biden and his administration demonstrates a tougher stance toward the digital assets industry. This shift is notable, considering Trump was skeptical of crypto during his first presidency between 2017 to 2021.

Nevertheless, many believe that Trump being re-elected could offer a positive outlook for the crypto industry. Standard Chartered Researcher Geoffrey Kendrick previously noted that the Trump administration might adopt less stringent regulatory measures for crypto compared to the current Biden administration. This potential shift in policy could also prompt foreign official buyers of US treasuries to consider alternative financial assets like Bitcoin, potentially driving its price higher.

 

NFT-based gaming ventures frequently boast ambitious promises of groundbreaking gameplay and intricate digital economies. Yet, many of these initiatives meet untimely demise due to inadequate development efforts or, in some cases, deliberate abandonment by unscrupulous creators.

Amidst the turbulent landscape of promising but often underperforming projects, it is crucial for gamers and investors to prioritize sustainable development and genuine utility when assessing blockchain gaming endeavors. In response to this scenario, CryptoWeekly has compiled a brief guide outlining what to seek (and be cautious of) when evaluating new projects.

 

Identifying A Committed Community

A vibrant community serves as the backbone of any successful GameFi project. Prospective gamers should seek active participation on platforms like Discord, Telegram, and Twitter, where lively discussions and frequent updates indicate a strong connection between developers and their audience. Authentic dialogues and substantive updates are preferable to mere promotional content. Additionally, community teams should maintain well-organized and regularly updated servers.

Also, while project size does not always correlate with health, an engaged community sustains interest and facilitates organic marketing through word-of-mouth and social sharing. Active involvement by development teams, even in periods without significant updates, fosters familiarity and support within the community.

 

Assessing NFT Performance

Examining the historical performance of NFTs provides valuable insights. While notable collections like CryptoPunks and Bored Ape Yacht Club are widely recognized, other successful NFT gaming collections offer lessons on the attributes contributing to their longevity and value. Instead of fixating solely on token price, longevity and consistency should take precedence over short-term speculation.

Professional presentation across platforms

Initial impressions matter, especially in GameFi projects, where online expression across various platforms reflects legitimacy and professionalism. Conversely, a lack of transparency or poor presentation can raise doubts about overall commitment and competence. Moreover, observing price movements in response to announcements or broader market shifts also provides insights into stability and growth potential.

 

Sorbet, a platform focusing on innovative financial solutions, secured a strategic raise supported by Adaverse on May 19th.

 

 

Bitlayer, a tech company specializing in blockchain infrastructure, secured a strategic raise backed by OKX Ventures on May 19th, gaining notable traction with 396.48K Twitter followers.

 

 

Focus Tree, a startup developing advanced AI-driven tools for businesses, raised $2M in Seed funding via Sfermion on May 17th, with influencers like Eva Beylin and Andrew Steinwold showing support.

 

 

FantaGoal (FGC), a sports and entertainment platform, secured $3M in undisclosed funding with KuCoin Exchange Ventures on May 17th.

 

 

Chainstack 🛠️💙, a blockchain infrastructure provider, raised $6M in undisclosed funding through SBI Investment on May 16th.

 

 

Param Labs Inc, a pioneer in decentralized finance (DeFi) solutions, raised $7M in undisclosed funding through Animoca Brands on May 16th, engaging a vast audience of 896.74K on Twitter.

 

 

Multipool (MUL), a DeFi protocol, secured $650K in undisclosed funding by NXGEN on May 15th.

 

 

STON.fi DEX (STON), a decentralized automated market maker (AMM) built on the TON blockchain, completed an undisclosed funding round led by CoinFund on May 15th.

 

 

RavenDAO, a proprietary high-frequency algorithmic trading firm and market maker active on both centralized and decentralized exchanges, raised $2.7M in Seed funding by Hack VC on May 15th.

 

 

Pencils Protocol (PenPad), an auction platform and yield aggregator, secured a strategic raise supported by OKX Ventures on May 15th.

 

 

Humanity Protocol, a platform aiming to revolutionize human resource management using blockchain technology, secured a substantial $30M in Seed funding by Kingsway Capital Partners on May 15th.

 

 

Shogun (GUN), an intent-centric protocol that aims to maximize trader extractable value (TEV) via optimized orderflow and complete chain abstraction, raised $6.9M in Seed funding by Polychain Capital on May 15th, with 24 notable backers.

 

 

Cross The Ages (CTA), an NFT and digital arts project trading card game, secured $3.5M in undisclosed funding via Animoca Brands on May 15th.

 

 

GamicHQ (GNG), a social app & chat for gamers, creators, and blockchain enthusiasts, raised $1.8M in undisclosed funding by LD Capital on May 14th.

 

 

Anomaly, an AI-powered zero-gas layer 3 gaming platform and studio, raised $1.45M in Pre-Seed funding by Shima Capital on May 14th.

 

 

Re, a decentralized global insurance transaction layer, raised $7M in undisclosed funding by Electric Capital on May 14th.

 

 

Polymarket, a decentralized prediction market, raised an impressive $45M in Series B funding through Founders Fund on May 14th.

 

 

Chainalysis, a blockchain data platform that caters to various companies in over 70 countries, completed an undisclosed funding round led by Haun Ventures on May 14th.

 

Gala Games, a project in Web3 gaming, encountered a significant security breach on May 20th. An individual exploited the smart contract of the platform, creating 5 billion GALA tokens, valued at around $214 million. This event has caused considerable concern within the community and led to widespread speculation.

 

Gala Games Security Breach

Following the exploitation of the smart contract, the individual promptly sold 592 million GALA for 5,952 ETH, approximately $21.8 million. The Gala Games team swiftly took action to minimize the impact, by blacklisting the address of the individual in question, thereby preventing further token offloading.

In an official statement, the team underscored their dedication to security and openness. They reassured users of their ongoing cooperation with law enforcement to locate the culprits. This incident was isolated, and its root cause has been resolved, according to the team, who will update the community as the investigation progresses and implement all necessary measures to avert future occurrences.

 

Taking Responsibility

Eric Schiermeyer, CEO of Gala Games, expressed regret over the incident. He acknowledged that the breach was detected and contained within 45 minutes. He also highlighted the security of their ETH contract for GALA, safeguarded by a multi-signature wallet.

Eric claims that there were certainly gaps in internal controls, and that while this should not have happened, the team is currently implementing measures to prevent its recurrence. He went on to say that the team has successfully identified the responsible party and are cooperating with the FBI, DOJ, and international authorities. It is worth mentioning that the matter of daily distribution remains unresolved, and that there will still be a node vote on its resolution as the community will decide the next course of action, Schiermeyer stated.

Following the admission of internal control deficiencies by Eric, a Solidity developer known as Quit corroborated the findings. According to Quit, the address behind the exploit possessed admin-level permissions, enabling it to execute arbitrary actions involving the smart contract. Quit advocates for banning contracts with admin privileges allowing arbitrary token minting.