Token Chronicle - Week 1 May 2025

Top cryptos

Meme of the week

Market Sentiment:

Market update: Strong market performance (especially over the past two days), with BTC climbing back above $100K (now at $102K), and especially ETH, which surged 20% in a single day, rising back above $2K.

This is explained on the macro level by a softening of the rate environment (a deal was reached between the US and UK on Thursday, and discussions are ongoing between the US and China this weekend), and on the micro level by a series of bullish news from the ecosystem: the successful Ethereum Pectra upgrade, which significantly improves network performance; Coinbase's acquisition of Deribit; and a wave of major announcements from TradFi players (Goldman, BlackRock, etc.) and the tech sector.

Main points this week:

International

1. Bitcoin at the Heart of the CIA's Strategy Against China
   Bitcoin, long seen as a mere anarchist tool, is becoming a strategic lever in the power struggle between the United States and China. Michael Ellis, deputy director of the CIA, emphasizes its role in the ideological opposition between the two superpowers. According to Ellis, BTC is not just a currency—it’s a systemic tool of opposition against China. In this ideological battle, Bitcoin embodies liberal and democratic values through its transparency and resistance to censorship. It stands as a symbol of individual sovereignty in contrast to a programmable, centralized digital yuan promoted by Beijing. However, it’s worth noting that the CIA does not support free, uncontrolled usage. Washington openly seeks to influence the development of these disruptive technologies. The U.S. might support or tolerate Bitcoin adoption in fragile states or those under Chinese diplomatic pressure to counter China’s debt-trap diplomacy. This strategy allows the White House to promote a neutral technological option—soft power without the U.S. flag stamped on it.

2. Donald Trump Denies Profiting from His Memecoin… Before Admitting He "Didn’t Check"
   While Donald Trump’s official memecoin has already generated hundreds of millions of dollars, peaking the day before his inauguration, the President tried to downplay his involvement in an NBC News interview. But his responses quickly turned contradictory. According to the Financial Times, the project has already yielded at least $350 million: $314 million from sales and $36 million in miscellaneous fees. Two Trump-controlled companies own 80% of the total 1 billion token supply, with part of it gradually unlocking through 2028. On April 18, 40 million tokens—worth $454 million—were transferred to CIC Digital during the first unlocking event.

3. US-China Trade War: Negotiations Open This Weekend
   A step toward easing tensions? U.S. and Chinese representatives will meet this weekend to discuss their ongoing trade war. Tariffs on each other’s goods remain exceptionally high. While it will take extensive dialogue to truly de-escalate the conflict, this marks an initial step that could lead to reduced tariffs. At the height of tensions, U.S. tariffs reached 145%, and China responded with 125% surcharges.

4. Bhutan Becomes the First Country to Adopt Crypto Payments for All Tourism
   The Himalayan kingdom of Bhutan takes an unprecedented step: it’s now possible to organize an entire trip using crypto—from flights to handmade souvenirs. A partnership between Binance Pay and DK Bank allows over 100 local merchants to accept cryptocurrencies. Payments are made via dynamic or static QR codes using the Binance app. More than 100 cryptocurrencies are accepted, including BNB, Bitcoin, and USD Coin (USDC). Each transaction is instantly converted into local currency by DK Bank, Bhutan’s first fully digital bank, authorized by the Royal Monetary Authority. The system offers real-time confirmations and near-zero fees.

5. The UK Says No to Bitcoin as a Strategic Asset
   The UK rejects the idea of holding Bitcoin as a reserve asset but aims to become a global crypto hub. While the EU pushes MiCA and the U.S. hesitates, London opts to integrate crypto-assets into its existing financial framework. The strategic reserve idea is denied, but the government is exploring blockchain’s potential for issuing sovereign debt. Emma Reynolds stated that the procurement process is underway and the government hopes to appoint a provider before summer’s end.

6. Indonesia's Ministry of Communication and Digital Affairs has suspended Worldcoin's operations due to reports of suspicious activities involving its World ID system. Authorities found that one operator lacked proper registration and used another entity’s permit, which the ministry labeled a serious legal breach. Local partners PT. Terang Bulan Abadi and PT. Sandina Abadi Nusantara have been summoned for clarification on alleged regulatory violations. This suspension follows Worldcoin’s recent U.S. expansion announcement and ongoing global concerns over its data privacy practices.

7. Binance co-founder Changpeng Zhao has advised Kyrgyzstan to build its national crypto treasury starting with Bitcoin and BNB. This recommendation comes as CZ takes on an official advisory role with the country's National Investment Agency.

8. New Hampshire has become the first U.S. state to pass a "Strategic Bitcoin Reserve" bill, allowing up to 10% of its general fund to be invested in precious metals and digital assets with market caps over $500 billion — currently only met by bitcoin. Governor Kelly Ayotte signed HB 302 into law, enabling the state to invest directly in bitcoin or through ETFs, with options for self-custody or using a qualified custodian. Ayotte celebrated the move as a step toward financial innovation. The law was praised by the Satoshi Action Fund as a landmark in adopting "sound money." Several other states, including Texas and Illinois, are considering similar legislation, while Florida has paused related efforts.

9. Arizona has become the second U.S. state to pass a bitcoin reserve law, with Governor Katie Hobbs signing HB 2749 to establish a crypto reserve fund for unclaimed digital assets. The law allows the state to stake these assets for rewards or airdrops, integrating crypto into Arizona’s unclaimed property framework. However, it’s a more limited measure compared to a broader pension investment bill that Hobbs recently vetoed due to retirement risk concerns. A separate bill, SB 1373 — proposing a reserve of seized crypto assets — now awaits her decision. The move follows New Hampshire’s own bitcoin reserve legislation passed just a day earlier.

Compliance / Regulation / Justice

1. Tether CEO Refuses to Comply with MiCA, Calls It "Very Dangerous for Stablecoins"
   Paolo Ardoino, who has previously criticized the MiCA regulation, has reaffirmed his opposition. In his latest interview, he described the regulation as dangerous for both stablecoins and banks.
   “I decided not to apply for a MiCA license because I have to protect our more than 400 million users worldwide. They are not as lucky as Europeans. I love Europe, but unfortunately, I think the European Central Bank prefers to promote the digital euro as a way to control people and their spending.”

2. Movement Labs Suspends Then Fires Co-founder Rushi Manche Amid Market Manipulation Scandal
   As the MOVE token loses more than 20% in 24 hours, Web3 startup Movement Labs faces an unprecedented crisis. Co-founder Rushi Manche has been suspended after revelations of a suspicious market-making scheme.

3. "Corruption": Senator (Elizabeth Warren) Accuses Trump-Linked Stablecoin of Dubious UAE Ties
   Donald Trump faces a new corruption accusation—this time involving the USD1 stablecoin from World Liberty Financial. Between the TRUMP memecoin, USD1, and a planned utility token, the Trump family is launching several crypto projects. The U.S. president is accused of exploiting his position to promote ventures aimed at personal gain, including NFTs and merchandise sites.

4. Data Deletion and Service Suspension — Sam Altman’s World Project Faces Regulatory Pushback
   Although World (formerly Worldcoin) is intended to be the foundation of ChatGPT’s future social network, it faces global scrutiny. Kenya has ordered deletion of biometric data collected locally, citing privacy violations. The High Court of Kenya gave the World Foundation 7 days to comply. Meanwhile, Indonesia’s Ministry of Digital Affairs has suspended World’s operations over “suspicious” activities, noting that one data collector allegedly operated without registration.

5. Coinbase Customers Lost $45 Million Last Week, Warns ZachXBT
   On-chain investigator ZachXBT warned Coinbase users after $45 million in crypto thefts occurred last week via social engineering scams.
   “Over $45 million was stolen from Coinbase users last week alone in social engineering scams. In recent months, I’ve reported 9-figure total losses from similar scams affecting Coinbase users. Interestingly, no other major exchange has this issue.”
   He explains that scammers typically pose as Coinbase customer support and convince users to transfer funds to a fraudulent address.

6. The U.S. Treasury Department's Financial Crimes Enforcement Network (FinCEN) proposed cutting off the Cambodia-based Huione Group from the U.S. financial system over $4 billion in alleged money laundering, including $37 million linked to North Korean hackers. FinCEN said Huione's crypto platforms, payment services and stablecoin became key tools for laundering cybercrime proceeds across Southeast Asia. "[The] proposed action will sever Huione Group's access to correspondent banking, degrading these groups' ability to launder their ill-gotten gains," Treasury Secretary Scott Bessent stated. The proposed rulemaking, made under the Patriot Act, would authorize FinCEN to require domestic financial institutions to bar Huione and its affiliated entities from opening or maintaining accounts.

7. House Republicans have released a new draft bill aimed at regulating digital assets, building on previous legislative efforts to provide clearer rules for the industry. The draft, introduced by key GOP members from the Financial Services and Agriculture Committees, seeks to protect consumers and ensure long-term market stability. It outlines regulatory roles for the SEC and CFTC, similar to last year's FIT21 Act, and would expand the CFTC’s authority over crypto spot markets like bitcoin. The bill also proposes clearer pathways for fundraising under SEC rules, a registration process for digital commodity trading, and new disclosure requirements for exchanges.

8. South Korea’s Financial Services Commission and Korea Financial Intelligence Unit have finalized Phase 1 guidelines for institutional crypto trading, set to begin in June 2025. Initially, only non-profits with over five years of audited operations can liquidate crypto, restricted to top-20 tokens listed on at least three local exchanges, with immediate sell-off and strict KYC rules. Exchanges may only sell crypto to cover operational costs, under capped limits and without using their own platforms. Phase 2, launching in the second half of 2025, will extend trading access to about 3,500 risk-qualified companies, excluding financial institutions. Revised token listing practices—mandating minimum token circulation, curbs on market orders post-listing, and tighter controls on meme coins—will take effect on June 1 and feed into fast-tracked legislation.

9. Kraken recently revealed it thwarted a North Korean hacking attempt disguised as a job applicant for an engineering role. The individual, using the alias “Steven Smith,” submitted a fake resume and altered ID, but inconsistencies—like name switching on calls and voice changes—triggered suspicion. Instead of cutting off contact, Kraken advanced the application to gather intelligence, uncovering links to a broader network of fake identities and VPN-masked access. A final interview with Kraken's CSO exposed the fraud through subtle tests on identity and location. The case highlights the crypto sector’s rising exposure to sophisticated, state-sponsored infiltration tactics.

Traditional Finance

1. Goldman Sachs Bets on Treasury Tokenization for 24/7 Trading
   U.S. banking giant Goldman Sachs is accelerating its blockchain push, aiming to allow 24/7 trading of Treasuries and money market funds via tokenization. Announced in Dubai by Mathew McDermott, the bank’s head of digital assets, Goldman is planning three tokenization projects for 2025, including a USD-denominated tokenized fund and a euro-denominated digital bond. Other major players like BlackRock and Franklin Templeton are also entering the tokenization race. Currently, tokenized money market funds exceed $1 billion in AUM, and tokenized Treasuries top $5 billion, led by BlackRock’s BUIDL fund.

2. BNB ETF: VanEck Files Application with SEC
   Continuing its altcoin ETF push, VanEck has filed for a BNB ETF with the Securities and Exchange Commission. The goal is to mirror the performance of the BNB token, net of trust operating expenses, by holding BNB and valuing shares based on a benchmark index.

3. BlackRock: Not Holding Bitcoin May Soon Be Riskier Than Holding It
   As Bitcoin decouples from tech stocks, BlackRock sees it becoming more appealing. Robbie Mitchnick, head of digital assets at BlackRock, suggested during the Token2049 conference in Dubai that Bitcoin’s market behavior could position it as a new safe-haven asset for institutional investors.

4. BlackRock’s Bitcoin ETF Sets 2025 Record with 16 Consecutive Days of Inflows
   BlackRock’s IBIT Bitcoin ETF has set its 2025 record so far with 16 straight days of positive inflows.

5. Brown University quietly placed a $5 million bet on Bitcoin through BlackRock's spot ETF. The prestigious Ivy League school now holds 105,000 IBIT shares according to Friday's SEC filings, joining Emory and University of Austin as the third academic institution to embrace crypto this way.

6. Crypto and equities trading platform eToro is targeting a $4 billion valuation and up to a $500 million raise through its upcoming Nasdaq IPO, under the ticker ETOR. The offering consists of 10 million shares priced between $46 and $50, with half provided by eToro and the remainder by existing stockholders. The listing marks eToro's second attempt to go public after a failed SPAC deal in 2022 and comes as other crypto firms cautiously weigh U.S. IPOs amid shifting policy under the Trump administration.

7. Standard Chartered Bank just set a $2,775 price target for Binance's BNB token by 2028 – representing a 360% potential gain from current levels. The bank's research team found BNB has tracked "almost exactly in line with an unweighted basket of Bitcoin and Ethereum since May 2021" in both returns and volatility.

8. At Token2049 in Dubai, Goldman Sachs’ digital assets chief Matthew McDermott confirmed the bank is expanding its crypto trading and lending operations, while accelerating efforts to tokenize traditional assets like Treasuries and money market funds. Goldman aims to enable 24/7 trading and improve market efficiency via blockchain infrastructure, reflecting growing institutional demand. Its GS DAP platform may be spun out to boost interoperability and reach. While plans depend on regulatory approval, McDermott’s remarks signal confidence in evolving U.S. oversight. Like peers BlackRock and Morgan Stanley, Goldman is betting not on crypto speculation but on blockchain as the foundation of future finance.

Tech News:

1. Tether to Launch Its Own AI — USDT and Bitcoin Features Included:
   This Monday, Paolo Ardoino, CEO of Tether, announced that his company would soon launch its own artificial intelligence (AI). “A fully open-source operational AI environment, capable of adapting and evolving on any hardware or device — without API keys, no central point of failure, fully modular and composable, with a WDK [wallet development kit, ed.] to enable payments in USDT and Bitcoin. Tether AI technology will allow the creation of an unstoppable peer-to-peer network of billions of AI agents.”
   Though not explicitly stated in the announcement, it is highly likely that the company Northern Data Group is involved in the process. Tether began investing in the company in the fall of 2023, eventually becoming its majority shareholder.

2. Google Wallet Bets on Blockchain to Centralize Digital Identity:
   Google is expanding its ID Pass service, allowing users to store digital IDs in Google Wallet using blockchain technology and Zero Knowledge Proof for secure age verification. This advancement raises questions about data centralization and the management of our digital identity.
   Thanks to this expansion in Europe, UK residents can now create a digital “pass” from their physical passport and store it in their Google Wallet — all using Zero Knowledge Proof (ZKP) technology. Ahead of the May 7, 2025, deadline for REAL ID (a U.S. federal program to enhance identity document security standards), these IDs can also be used at TSA checkpoints with a U.S. passport, even without a REAL ID-compliant driver's license. The system will allow applications to verify a user’s age without the user revealing their identity. Google stated the system was developed in response to the growing number of services requiring age checks, notably dating platforms and social media.

3. Why Apple Was Forced to Relinquish Control Over Crypto Apps:
   Apple has long controlled payments on its App Store, particularly for cryptocurrencies. A recent court ruling requires it to relax its rules, freeing developers from Apple’s high commission fees.
   Crypto app developers can now redirect their users to external payment solutions outside Apple’s ecosystem. This attempt by Apple to maintain control over its “walled garden” had faced criticism from both users and institutions.
   The European Commission had accused Apple of “abusing its dominant position in payments,” especially concerning Apple Pay practices.
   By enabling a more balanced business model, this victory could foster new use cases like micropayments, asset tokenization within mobile apps, or integrating DAO (decentralized autonomous organization) models into app-based economies.

4. Vitalik Buterin Shares Ideas to Make Ethereum as Simple as Bitcoin:
   As Ethereum (ETH) becomes increasingly complex, Vitalik Buterin calls for simplifying the network by taking inspiration from Bitcoin’s (BTC) minimalism.
   Among his proposed improvements, Buterin first suggests changes to the consensus layer. He proposes optimizing network finality — the stage where data is permanently written to the blockchain. The current method could be replaced by a more optimized system in 200 lines of code with “near-optimal security properties.” Moreover, the number of active validators at a given time could be reduced. Regarding the execution layer, Buterin even suggests replacing the Ethereum Virtual Machine (EVM) with a new virtual machine such as RISK-V — a topic we've recently explored in more detail.
   Additionally, the goal is to integrate ZK-provers, which could boost performance by a factor of 100.

5. Bitcoin Payment App Strike to Offer Lending Services:
   Strike, the Bitcoin payment app built on the Lightning Network, is adding another feature to its platform. Jack Mallers’ company will now offer lending services.
   However, the entry threshold is quite high: users will need to borrow at least $75,000 to access the service. Jack Mallers confirmed that this threshold will be lowered in the future. The interest rate is set at a minimum of 12% per year.

6. Instant Payments via the Internet: Coinbase Unveils a Revolutionary Innovation:
   This week, Coinbase made waves by unveiling x402, a new native payment standard for the Internet, directly leveraging the Hypertext Transfer Protocol (HTTP) — the same protocol we use daily on the web, often without realizing it.
   Coinbase launches x402, a payment protocol enabling instant stablecoin payments directly via HTTP. It allows APIs, applications, and AI agents to carry out seamless transactions, paving the way for a faster and more automated Internet economy. In short, app developers can now create instant crypto payment systems directly using existing web technologies.
   The possibilities are vast, and to that end, Coinbase has formed several partnerships with companies like Amazon Web Services (AWS), Chainlink (LINK), Circle, and the NEAR blockchain.
   Coinbase also considers its innovation superior to credit cards or bank transfers, which are not suited to today’s Internet.

7. Highly Anticipated Pectra Upgrade Deployed on Ethereum:
   The Pectra upgrade is now fully integrated into the Ethereum blockchain.
   From account abstraction to Layer 2 scalability and validator changes, Pectra brings a range of updates to the Ethereum ecosystem.
   EIP-7702 focuses on account abstraction by introducing a new transaction type (0x04), which allows an Externally Owned Account (EOA — that is, an account controlled by a private key, like those used with MetaMask or Rabby) to behave like a smart contract for the duration of a transaction. Bundled transactions, preset transaction amount limits, paying gas fees with tokens other than Ether… the possibilities offered by this EIP are numerous.
   At first glance, EIP-7251 seems to target large wallets, as it raises the threshold for becoming a validator from 32 ETH to 2048 ETH. The goal is to reduce the number of validators on the network, thereby easing the load and reducing the number of signatures (fewer validators = fewer distinct signatures), and thus the volume of data exchanged.
   Finally, EIP-7691 aims to increase the maximum number of blobs per block from 6 to 9. In doing so, Ethereum developers aim for an average of 6 blobs per block.

8. Bitcoin: Revolut Embraces the Lightning Network With Help from Lightspark:
   After recently launching its dedicated crypto trading platform in Europe, Revolut today announces it will offer Lightning Network access to its clients.
   This new feature is enabled through a partnership with Lightspark, the company founded by David Marcus, former president of PayPal.
   It was Lightspark, for instance, that helped Coinbase adopt the Lightning Network a year ago. Today, about 15% of Bitcoin transactions on Coinbase use this network. Practically speaking, Lightspark will provide Revolut with a turnkey infrastructure to leverage the Lightning Network, allowing the company to offer near-instant, low-cost BTC transfers to its users.
   The partnership includes access to MoneyGrid, a payment routing system developed by Lightspark, which aims to connect over 300 million users — institutions and individuals — in more than 140 countries.

9. Aztec, a layer-2 rollup focused on privacy, shared that its testnet has finally gone live. The announcement comes as a wave of new privacy-focused solutions begins to capture the interests of large institutions that need confidentiality with large transaction batches. The team behind Aztec said that they have been working on the product for over 8 years, bringing the cutting-edge technology one step closer to the mainnet.

Adoption:

1. Strategy Seeks $84 Billion to Buy Even More Bitcoin:
   After successfully using its popularity in financial markets to purchase more Bitcoin, Strategy is doubling down. Indeed, it is now raising its financing target to $84 billion to meet its ambitions. To do so, Strategy will increase its capital markets issuance program, planning $42 billion in new shares and another $42 billion in bonds. As for the amounts involved, it's important to note that half of the new shares still remain to be issued, along with $14.6 billion in bonds to meet these new objectives.

2. Binance founder Changpeng “CZ” Zhao predicted that bitcoin could reach $500,000 to $1 million during this cycle, with the total crypto market cap hitting $5 trillion in 2025. In an interview with Farokh Radio, Zhao also warned that 99.99% of memecoins will fail, calling them a distraction from meaningful innovation like AI and decentralized science. He envisions deep integration between blockchain and AI and believes decentralized exchanges will eventually surpass centralized ones. Zhao praised the Trump administration's pro-crypto stance, noting a dramatic policy shift. Separately, Standard Chartered began coverage on Binance’s BNB token, projecting a price of $2,775 by 2028.

3. Metaplanet disclosed on Wednesday that it has bought another 555 BTC, worth around $54 million, bringing its total stash to 5,555 BTC ($539 million). The Tokyo-listed investment firm's cumulative bitcoin holdings were purchased at an average price of $86,672 for $481.5 million in total — implying approximately $57.5 million of paper gains. "In Japanese, the number 5 is pronounced 'Go,' so today we're shouting: Go go go go — to the moon and beyond!" Metaplanet CEO Simon Gerovich posted on X. The firm also issued its 13th series of ordinary bonds on Wednesday, raising another $25 million to keep stacking bitcoin, as its stock closed the day up 11.5%.

Partnerships & Funding:

1. League of Legends and VALORANT: Crypto Platform Coinbase Partners With Riot Games:
   In anticipation of global competitions for League of Legends and VALORANT, Coinbase has partnered with Riot Games. The crypto platform will thus be featured during global events like the Masters and Champions of the VALORANT Champions Tour (VCT), as well as First Stand, the Mid-Season Invitational (MSI), and Worlds for League of Legends. As part of this collaboration, the crypto platform will present exclusive analyses to viewers, offering insights into teams’ in-game economic strategies. This includes the “Econ Report” for VALORANT and the “Gold Grind” for League of Legends.

2. Coinbase has agreed to acquire crypto derivatives platform Deribit for approximately $2.9 billion, marking the largest M&A deal in crypto history. The purchase includes $700 million in cash and 11 million shares of Coinbase’s Class A stock. Coinbase VP Greg Tusar said the move cements Coinbase as a global leader in crypto derivatives, with Deribit boasting $30 billion in open interest and $1 trillion in annual trading volume. The deal aims to unify spot, futures, and options trading on a single platform. Deribit's founders will step down, while Coinbase looks to scale Deribit's global reach using its regulatory infrastructure.

Disclaimer: The information disclosed here does not constitute an investment advice ; it is for informational purposes only and does not constitute investment advice. You should do your own research while investing in crypto and only invest money you are ready to lose.