Top Headlines
▌Trump Claims He Will Be the “Cryptocurrency President” at Fundraising Event
According to sources cited by Reuters, Trump raised $12 million at a fundraising event held at the home of tech entrepreneur and investor David Sacks in San Francisco on Thursday evening. Social Capital CEO Chamath Palihapitiya co-hosted the event. Notable cryptocurrency leaders like Gemini founders Cameron and Tyler Winklevoss also attended the fundraising event. Trevor Traina, Chief Business Officer of Tools for Humanity and former U.S. Ambassador to Austria, told Reuters that Trump expressed his intention to become the “Cryptocurrency President” at the event. Palantir Technologies advisor Jacob Helberg told Reuters that Trump made it clear that the criticism of cryptocurrencies by Biden and Gensler would stop within an hour of Trump’s second term in office.
▌Elliptic: Significant Increase in the Use of Artificial Intelligence in Cryptocurrency Crime
According to a new report by Elliptic, artificial intelligence (AI) is increasingly being used in criminal activities within the cryptocurrency ecosystem. The report highlights that criminals are using generative AI more frequently to create deepfakes and other deceptive materials for cryptocurrency scams. Additionally, scams involving AI-related tokens, investment platforms, Ponzi schemes, and fraudulent trading bots have seen a significant rise. Elliptic notes that fraudsters often use popular technologies and jargon to create tokens or investment schemes, leading to eventual exit scams. A notable incident involved a fraudulent AI trading bot scam named iEarn in 2023, resulting in approximately $6 million in losses. The surge in AI trading bots prompted a warning from the U.S. CFTC in January. The report also mentions that, in addition to creating tokens, fraudsters are using AI to hype up fraudulent investment platforms. Specifically, scammers are attempting to leverage the potential of AI to enhance trading or arbitrage capabilities. Furthermore, AI technology is being used to facilitate large-scale cryptocurrency scams and misinformation campaigns.
Market Updates
As of the time of writing, according to Coingecko data:
BTC recent price: $69,318.12, 24h change: -2.02%;
ETH recent price: $3,681.95, 24h change: -3.22%;
BNB recent price: $681.12, 24h change: -3.27%;
SOL recent price: $162.06, 24h change: -4.68%;
DOGE recent price: $0.148, 24h change: -7.64%;
XPR recent price: $0.4983, 24h change: -4.30%.
Policy
▌Bloomberg ETF Analyst: U.S. SEC Requests Information on Ethereum ETF Approval Under FOIA
In an interview with KITCO, Bloomberg ETF analyst James Seyffart called for the submission of Freedom of Information Act (FOIA) requests to the U.S. Securities and Exchange Commission (SEC) regarding the approval of a spot Ethereum ETF. Seyffart stated that public requests should search for emails, phone records, and anyone who has spoken to SEC Chairman Gary Gensler to determine what occurred during the SEC decision-making process. Given the rapid shifts in the agency’s position, there may be unused denial orders. Seyffart noted that the SEC approving a spot Ethereum ETF through authorization is a common approach but a rare choice for the current issue. Authorization also implies unclear voting records. This choice is politically motivated, and unless someone shows me concrete evidence… it’s all political. The main theory is that a member of the Biden administration called SEC Chairman Gary Gensler and influenced the agency’s decision.
▌Crypto Open Patent Alliance Demands Craig Wright to Compensate 85% of Legal Fees
Legal representatives of the Crypto Open Patent Alliance (COPA) requested Judge James Mellor to approve Craig Wright’s payment of 85% of the organization’s legal expenses incurred in the lawsuit. In February of this year, COPA took Wright to court to determine if he is the creator of Bitcoin, Satoshi Nakamoto. Judge James Mellor ruled in March that Wright is not Satoshi Nakamoto. One of COPA’s legal representatives, Jonathan Hough, requested a civil restraining order against Craig Wright to prevent him from filing any further lawsuits.
▌Mastermind of Ponzi Scheme GS Partners in Metaverse Arrested and Granted Bail
On June 8th, key figure Neil Leon De Waal of the GS Partners Ponzi scheme in the metaverse was arrested by South African law enforcement at the end of May. He was granted bail on June 3rd. Authorities began investigating De Waal after receiving a complaint from a victim. De Waal reportedly recruited a new GS Partners investor in May 2023. The exact timeline is unclear, but the arrest warrant for De Waal was issued in December last year. He was apprehended upon landing in South Africa and his legal team claims he will prove his innocence.
▌New York Attorney General Opposes DCG and Founder Silbert’s Motion to Dismiss Fraud Case
The New York Attorney General’s office filed a motion opposing the motion to dismiss a fraud case brought by Digital Currency Group (DCG), founder and CEO Barry Silbert, and former CEO of DCG’s wholly-owned cryptocurrency trading arm Genesis, Soichiro “Michael” Moro in March. The NYAG office accused Genesis, DCG, Silbert, and Moro, along with cryptocurrency exchange Gemini, of deceiving investors by conspiring to conceal a $1 billion hole in Genesis’ balance sheet resulting from the bankruptcy of Singaporean crypto hedge fund Three Arrows Capital (3AC). The opposition motion reaffirms the office’s claim that “every defendant of DCG” (DCG, Silbert, and Moro) is clearly implicated in fraudulent acts to make Genesis appear solvent, violating New York’s stringent anti-fraud Martin Act.
Blockchain Applications
▌Russia Plans to Use Digital Ruble for International Transactions Starting in the Second Half of 2025
Anatoly Aksakov, Chairman of the State Duma’s Financial Market Committee in Russia, stated at the St. Petersburg International Economic Forum (SPIEF) that Central Bank Digital Currency (CBDC) will become widespread and a norm for international payments within five years. He revealed that Russia may start using the digital ruble for international transactions in the second half of 2025, but first needs to undergo testing and broad implementation domestically, including usage by legal entities. The Central Bank of Russia has been actively developing the digital ruble to modernize the national financial system and reduce reliance on traditional banking infrastructure. Since 2020, Russia has been testing various aspects of CBDC in pilot projects. Introducing the digital ruble aims not only to facilitate more secure and efficient financial transactions but also to enhance Russia’s economic sovereignty and reduce the impact of foreign sanctions on its financial system. Aksakov also mentioned that preliminary testing for CBDC international transactions may involve China or Belarus due to their technological proximity and friendly relations.
▌Peru Adopts India’s UPI System to Promote Financial Inclusion
The Central Reserve Bank of Peru (BCRP) has reached an agreement with the National Payments Corporation of India (NIPL) to create a system similar to India’s Unified Payments Interface (UPI) to promote financial inclusion and assist a large population of the unbanked. The new system supports offline transactions and enhances interoperability of payment systems. BCRP Governor Julio Velarde stated that the system will introduce new participants and complement the existing payment industry. NIPL has promoted the UPI system in multiple countries and established partnerships with financial institutions like Google Pay.
Cryptocurrency
▌Base TVL Surpasses $8 Billion, Setting a New All-Time High
According to the latest data from L2BEAT, the total value locked (TVL) in the Layer2 network Base has surpassed $8 billion, reaching $8.01 billion, marking a new all-time high with a 7-day increase of 11.0291%.
▌USDC Circulating Supply Increases by $2 Billion in the Past Week, Total Circulating Supply at $32.5 Billion
Official data shows that as of June 6th, Circle issued $2.3 billion USDC and redeemed $2.1 billion USDC in the past 7 days, resulting in a $2 billion increase in circulating supply. The total circulating supply of USDC is $32.5 billion, with reserves of $32.6 billion, including approximately $3.6 billion in cash held by the Circle Reserve Fund.
▌Aave Community Proposal Suggests Increasing Supply and Borrow Limits for USDT on Aave V3 on Ethereum
According to the Aave official governance forum, community member Chaos Labs proposed an increase in the supply and borrow limits for USDT on Aave V3 on Ethereum.
▌Nascent Withdraws 447.67 Billion PEPE Tokens from Binance, Making It the Top Holding in Their Portfolio
According to Spot On Chain monitoring, Nascent withdrew 447.67 billion PEPE tokens ($5.48 million) from Binance six hours ago, currently with a floating profit of $26.2 thousand (+4.8%). Currently, PEPE ranks as the top holding in their venture’s portfolio, followed by MKR, with total profits of $2.45 million (+248%).
Key Economic Developments
▌U.S. Stock Market Indexes Slightly Decline, GameStop Plummets Over 39% with Biggest Drop in Three Years
The major U.S. stock indexes saw slight declines, with the Nasdaq dropping by 0.23%, accumulating a 2.38% gain for the week; the Dow fell by 0.22%, with a 0.29% weekly increase; the S&P 500 index declined by 0.11%, marking a 1.32% weekly gain. Most major tech stocks saw declines, with Google and Netflix dropping by over 1%, while Tesla, Nvidia, Microsoft, Amazon, and Meta experienced slight gains. Intel and Apple saw increases of over 1%. GameStop plummeted over 39%, marking its largest drop in three years. The company reported Q1 revenue of $882 million, lower than the $1.237 billion in the same period last year and below the estimated $995.5 million.
▌ECB Board Member: ECB Rate Cut Reflects Weakening Inflation Pressure
A European Central Bank (ECB) board member stated that the ECB rate cut reflects a weakening inflation pressure. The ECB did not find the inflation rebound surprising. The German economy is accelerating its recovery. To achieve economic growth, Germany needs to address structural challenges. Debt brakes are of significant importance, with the German central bank being a major supporter of this mechanism.
▌JPMorgan Pushes Back Expectation for Fed Rate Cut to November
Due to stronger-than-expected U.S. employment data for May, JPMorgan economists have pushed back their forecast for the first Fed rate cut from July to November. Previously, JPMorgan was one of the few institutions still predicting a rate cut by the Fed in July. The bank’s U.S. Chief Economist Michael Feroli currently predicts that the Fed will cut rates for the first time in November and continue with quarterly rate cuts next year. Following the release of the May nonfarm payroll data, Feroli stated, “The likelihood of a rate cut in July now seems slim. With the next three employment reports from now until September, the household survey indicators are expected to be softer, but given the recent momentum in employment growth, we believe it may take all five reports from now until November to show softness to pass the rate cut test.”
Golden Encyclopedia
▌What is Liquidity Staking?
Liquidity staking allows stakers to maintain the liquidity of staked tokens by using alternative tokens to earn additional returns through DeFi protocols. Liquidity staking enables cryptocurrency holders to participate in staking without giving up control over their held assets. This changes the way users engage in staking. Projects like Lido have introduced liquidity staking, tokenizing staked assets in the form of tokens and derivatives.
