Token Chronicle - Week 3 May 2025

Top cryptos

Meme of the week

Market Sentiment:

Market update: Happy Bitcoin Pizza Day!
May 22 is celebrated in the crypto community as the anniversary of the first-ever Bitcoin transaction (back in 2010), when an early adopter bought 2 pizzas for 10,000 BTC (worth $41 at the time), marking a historic moment that demonstrated Bitcoin’s viability as a transactional currency.

Today, this May 22 marks new highs for Bitcoin, with an all-time high (ATH) surpassed at $111K (compared to $109K in January), and the market following the same upward momentum. We've seen step-by-step growth in recent weeks and an acceleration in the past few days that appears to be continuing (though it remains to be seen if June will follow the same trend).

Despite this, retail investors remain largely absent—judged by media coverage, Google search trends, and mobile app rankings—which could suggest that we’re still far from the core of the bull run.

Main points this week:

International:

1. Ukraine considers creating a strategic national Bitcoin reserve: While cryptocurrency regulation is still under debate globally, Ukraine may take a new step by establishing a strategic Bitcoin reserve. The project, supported by Binance, is still in its early stages but continues the close relationship between the Ukrainian state and the crypto ecosystem, which has strengthened since the beginning of the war.

2. When the dollar loses control of the oil tap because of crypto: The United Arab Emirates are integrating cryptocurrencies into their oil transactions, thus threatening the dominance of the dollar. Recently, Emarat, a leading oil company in Dubai and the UAE, announced a partnership with Crypto.com to introduce crypto payments at its gas stations. This openness to crypto-payments marks a significant step in the evolution of energy transactions. Initially deployed in 10 stations, the initiative plans to gradually expand to the entire Emarat network, which includes 155 stations across the UAE.

3. Brazil: This publicly traded company becomes the country's first to adopt a Bitcoin (BTC) treasury: In Brazil, Méliuz has become the first publicly traded company to establish a Bitcoin (BTC) treasury. The company purchased an additional 274.52 bitcoins at an average price of $103,604, totaling $28.4 million. In total, Méliuz now holds 320.2 BTC, worth over $33.15 million, acquired at an average price of just over $101,700 per unit.

4. France: Entreparticuliers becomes the first Ethereum Treasury Company: Entreparticuliers, a platform that connects property owners with people looking for housing online, has become France’s first Ethereum Treasury Company. The company says it will continue its activity but aims to make Ether purchases its new strategic focus — a move inspired, according to its president, by the "recent stock market successes" of companies that adopted a similar model, such as The Blockchain Group with its Bitcoin strategy.

5. Total surveillance in the UK: Crypto platforms forced to collect all user activity: The UK is taking a new step in digital surveillance. Under the guise of combating illicit activity, authorities are requiring crypto platforms to collect all data regarding their users' activities.

6. “The most important investment in 10 years” – Revolut makes a strong entry into France: Revolut is betting big on the French market. The neobank announced the creation of a French headquarters with a significant investment: over one billion euros. The company already has 40 million clients in Europe, and its expansion into the West will allow it to reach a broader customer base. As a reminder, the company initially established itself in Lithuania to expand into the European continent.

7. Pavel Durov accuses France of asking him to delete Telegram accounts linked to Romanian elections: “This spring, at the Hall of Battles in the Hôtel de Crillon, Nicolas Lerner, head of French intelligence, asked me to ban conservative voices in Romania before the elections. I refused. We did not block protesters in Russia, Belarus, or Iran. We are not going to start doing so in Europe.” For reference, the Romanian elections were highly tense this weekend: the first round was annulled due to accusations of Russian interference in the conservative camp. The second round took place this weekend, resulting in the election of the pro-European candidate Nicusor Dan.

8. Moody’s: The United States loses its “Triple A” – Debt alert: The credit rating agency Moody’s downgraded the United States’ credit rating this weekend, citing concerns related to debt. The agency believes current budget proposals are insufficient to correct the U.S.'s fiscal trajectory. U.S. debt currently stands at more than $36.5 trillion, about 123% of GDP — significantly higher than in past decades.

9. The EU revises its 2025 growth forecast downward to 0.9%, weighed down by Donald Trump's tariffs: Brussels has sharply revised its growth forecasts, anticipating a marked slowdown for the eurozone in 2025. The reason: Donald Trump's aggressive trade policy, which is reigniting transatlantic tensions and weakening European exports, already struggling against American and Chinese giants. For 2026, the forecast has also been revised downward to 1.4% (from 1.6% previously).

10. LIBRA scandal: Javier Milei shuts down the investigative unit — an attempt to bury the case? Less than three months after promising full transparency on the LIBRA token, Argentine President Javier Milei has taken a swift turn: he is dissolving the special unit tasked with shedding light on the scandal that has rocked the start of his presidency. The dramatic move comes just as a judge has lifted banking secrecy for both the President and his sister Karina.

11. Crypto exchange Kraken opens its derivatives products to Europe starting today: With its newly obtained MiFID II license, Kraken is now offering its suite of derivatives products within the European Economic Area. To recall, derivatives allow speculation on the price of an asset (like Bitcoin or Ether) without actually owning it. These instruments are widely used by professional traders to manage exposure or deploy complex strategies. Today, they represent over 70% of trading volumes in the crypto ecosystem.

12. Crypto.com obtains MiFID II license and aims to conquer the European crypto market: Cryptocurrency exchange platforms appear to be focusing increasingly on the crypto derivatives markets, multiplying efforts to obtain licenses.

13. Hong Kong's Legislative Council officially passed its stablecoin bill, requiring fiat-referenced issuers to obtain a license from the Hong Kong Monetary Authority. The new law enforces strict requirements on reserve management, redemption mechanisms, AML compliance, client asset segregation, and value stabilization to ensure issuer accountability. The bill will come into effect later this year to allow sufficient time for the industry to understand the requirements under the licensing regime. The HKMA said it plans to hold additional consultations on the detailed regulatory framework.

Compliance / Regulation / Justice:

1. Data leak at Coinbase: Crypto platform offers $20 million to catch perpetrators: Victim of a leak involving significant customer data, Coinbase has faced an extortion attempt. In response, the platform is offering $20 million in bounties to help track down those responsible. This Thursday, Coinbase announced it had suffered a data leak after a group of employees accepted bribes to extract information from customer support tools. In total, “less than 1% of monthly transacting Coinbase users” were affected, but the nature of the leaked information is still cause for concern: Name, address, phone number, and email; last four digits of Social Security number; masked bank account numbers and some banking identifiers; ID photo; account balances and transaction history; limited business data (including documents, training materials, and communications accessible to support agents).

2. FTX prepares to return $5 billion to creditors: After more than two years of legal turmoil, bankrupt exchange FTX will finally begin reimbursing creditors with $5 billion starting May 30. From that date, the first payments will be made to eligible creditors — that is, entities to which FTX owed money at the time of its collapse. The repayments will be processed via exchanges Kraken and BitGo, which have been designated as logistics partners.

3. Michael Saylor and Strategy face class action lawsuit for misleading statements: Did Strategy lie about its profitability? That’s what some investors believe, and they have filed a class action lawsuit targeting Michael Saylor in particular. According to the investors, Strategy overstated its profit forecasts tied to its Bitcoin investment strategy, while downplaying the risks linked to crypto volatility.

4. “Massive fraud” – Binance seeks to dismiss FTX lawsuit: The lawsuit filed by FTX against Binance allegedly has no merit, according to the latter. Binance is asking a Delaware judge to dismiss the case. In 2021, FTX bought about $1.8 billion worth of shares from Binance and its current CEO, Changpeng Zhao. After FTX’s collapse, its administrators attempted to recover the amount, arguing that FTX was already insolvent at the time and thus the transaction was fraudulent. Binance calls the claim absurd, asserting that FTX continued to operate for 16 months after the sale. It has therefore filed a motion to dismiss the suit in Delaware court.

5. The U.S. prepares to regulate stablecoins: The United States is preparing to regulate stablecoins via an unprecedented federal law. Passed in a procedural vote in the Senate, the proposal now moves to official debate. This regulatory shift could permanently reshape how stablecoins are used in decentralized finance. Initially blocked by the Democratic Party, the proposal cleared the procedural hurdle with a 66–32 vote. It now heads to Senate debate ahead of final adoption in the coming days or weeks. The GENIUS Act aims to establish a federal framework for issuing and managing stablecoins used as payment tools. Its goals are to prevent systemic risks, impose strict reserve requirements, and combat money laundering. If adopted, the law will prohibit issuers from offering yield or interest on their stablecoins and forbid any rehypothecation of reserve funds. Reserves must be backed 100% by liquid assets such as cash, bank deposits, or short-term U.S. Treasury bills. Issuers must also comply with the Bank Secrecy Act, anti-money laundering laws (AML), economic sanctions, and obligations around KYC, traceability, and asset freezing upon judicial order. Entities issuing less than $10 billion in stablecoins can be supervised at the state level. However, the most concerning point is this: if an issuer exceeds the $10 billion threshold, it must come under federal regulation. Although this may seem minor, the law would make stablecoin issuers like Tether or Circle even more dependent on federal institutions — thus bringing them closer to the Federal Reserve (Fed).

6. Crypto investment: Trade Republic obtains MiCAR license for the European market: This week, neobank Trade Republic secured its MiCAR license to expand its crypto offerings across Europe. With this license, Trade Republic becomes one of the first banks of its kind to obtain this coveted regulatory green light. It went through Germany’s financial watchdog BaFin for the process. Currently, the fintech offers crypto trading with over 50 assets and claims 8 million customers and €100 billion in assets under management.

7. Earlier this month, Thai authorities, with help from the U.S. Secret Service, dismantled a major illicit crypto network in Bangkok, Phuket, and Chon Buri during “Operation Crypto Phantom.” The crackdown targeted unlicensed OTC crypto exchanges linked to drug trafficking, scams, and online gambling. Investigators traced over THB 14 billion ($380 million) in suspicious transactions using blockchain intelligence, leading to raids at eight sites and the arrest of five individuals. These actors allegedly laundered funds for transnational criminal groups. TRM Labs supported the effort, highlighting the power of global cooperation and blockchain analytics in combating financial crime.

8. The U.S. Office of the Comptroller of the Currency (OCC) issued Interpretive Letter 1184 last week, confirming that national banks and federal savings associations may legally offer crypto custody and trade execution services. The guidance allows banks to hold and manage digital assets, either directly or via third parties, while ensuring oversight and compliance with traditional risk standards. It also permits sub-custody arrangements with crypto firms, as long as banks maintain control and follow fiduciary regulations. The letter marks a shift from the OCC’s stricter 2023 guidance, signaling a clearer, more supportive regulatory stance toward crypto integration in banking.

9. The Bank of Korea (BOK) is urging regulatory oversight of KRW-based stablecoins from the licensing stage, citing risks to monetary policy and financial stability. BOK official Koh Kyung-chul warned that widespread use of KRW-pegged stablecoins could reduce demand for fiat won and undermine central bank policy effectiveness. He emphasized that the BOK should have legal authority to assess stablecoin issuers’ potential impact early on — not to ban them, but to ensure a sustainable digital payments ecosystem that includes CBDCs and deposit tokens. This call for oversight comes amid Korea's Phase 2 digital asset legislation, which currently places regulatory power with the Financial Services Commission, prompting inter-agency tensions.

10. Dubai's Virtual Asset Regulatory Authority (VARA) has updated its rulebook for digital asset trading. This will help VARA's rules to align with global risk standards, the regulator said in an emailed announcement on Monday. VARA has also introduced sections of its rulebook to properly oversee areas of the crypto industry that were previously lightly regulated, such as broker-dealers and wallets.

11. Haliey Welch, known as "Hawk Tuah Girl," claims she was cleared by the FBI and SEC regarding the failed HAWK memecoin. Welch now distances herself from the project, stating she didn't understand cryptocurrency despite her initial enthusiasm. The HAWK token's market cap plummeted from $491 million to under $100 million, with current losses estimated at $180K.

Traditional Finance:

1. JPMorgan completes its first public transaction of tokenized Treasury bonds via Ondo and Chainlink:
   This week, JPMorgan, Ondo Finance, and Chainlink introduced a new experiment in tokenizing real-world assets. What sets this transaction apart is that it involved communication between a public network and a permissioned one. On a technical level, this interoperability was secured by Chainlink’s technology. Specifically, the financial operation carried out was a Delivery versus Payment (DvP) — a commercial transaction where payment for a security and its transfer occur simultaneously. In this case, the security used was OUSG, Ondo Finance’s tokenized dollar fund. “The first transaction on Ondo Chain's testnet with JPMorgan’s Kinexys and Chainlink is not just a major milestone, it’s a statement about the future of finance. We’re excited to work with two of the most influential players in crypto and traditional finance to demonstrate the power of a scalable, compliant blockchain infrastructure for real-world assets.”

2. BlackRock ventures into DeFi with its tokenized BUIDL fund:
   As BlackRock’s tokenized money market fund BUIDL continues to grow, it takes a new step by entering the DeFi ecosystem. This week, BlackRock and Securitize enabled the BUIDL fund to integrate with DeFi applications. A wrapped version called sBUIDL was created to be deployed on the lending and borrowing protocol Euler, via Avalanche’s C-Chain (AVAX). For example, holders of the fund can now use sBUIDL as collateral to borrow stablecoins, while continuing to receive returns from the tokenized fund. This move paves the way for greater institutional adoption of DeFi, and it is likely just the beginning of more significant changes, with additional use cases and new players anticipated.

3. Bitcoin boom? JPMorgan to allow clients to buy cryptocurrency:
   JPMorgan is now joining in: the banking institution will allow its clients to purchase Bitcoin. JPMorgan clients will also be able to invest in ETFs related to cryptocurrencies. The specific date when this change will take effect has not yet been announced.

4. SG Forge (Société Générale) reportedly preparing to launch a dollar stablecoin:
   SG Forge, Société Générale’s crypto-focused subsidiary, is reportedly planning to launch a dollar stablecoin on the Ethereum (ETH) blockchain — a global first for a banking group. This isn’t SG Forge’s first venture into stablecoins; two years ago, the firm launched EURCV, a euro stablecoin, which was also released on multiple networks including Solana and more recently, Stellar.

5. Ripple’s XRP enters the world’s largest futures market:
   This week, futures contracts for Ripple’s XRP debuted on the CME Group.

6. Bitcoin’s rise: BlackRock’s IBIT enters the top 5 best-performing ETFs of the year: BlackRock’s spot Bitcoin ETF continues to make headlines, having just entered the top 5 ETFs with the highest net inflows in all of finance. According to one analyst, it may soon rise to the #2 spot. Just a month ago, IBIT was ranked 47th — a respectable performance considering its recent launch. Today, BlackRock’s spot Bitcoin ETF has over $67.9 billion in assets under management, accounting for 3.20% of Bitcoin’s market capitalization.

7. JPMorgan analysts say the debasement trade hedge against weakening fiat currencies has become a zero-sum game this year, with bitcoin now rising at gold's expense. Gold has fallen nearly 8% since its April 22 peak, while bitcoin has climbed 18% over the same stretch. The analysts say this shift is also visible in investor flows, with money moving out of gold ETFs and into spot bitcoin and crypto funds over the past three weeks. Going forward, they see more upside for bitcoin than gold in the second half of 2025, boosted by corporate accumulation, a maturing derivatives market, and growing U.S. state-level support.

8. The SEC extended the deadline for Grayscale's spot Solana ETF application, keeping the crypto community waiting for regulatory approval. SOL price jumped 5% on the delay announcement while Polymarket odds briefly dropped from 89% to 80% before recovering to 82%. DeFi Development Corporation purchased over $100 million worth of SOL directly rather than waiting for ETF approval.

Tech News:

1. Trillion Dollar Security — how Ethereum aims to become the world’s most secure financial infrastructure:
   The Ethereum Foundation has just unveiled “Trillion Dollar Security (1TS),” a major initiative aiming to secure trillions of dollars on-chain with maximum safety. Here’s a breakdown of the roadmap, which may signal a revival of the Ethereum ecosystem, seriously weakened in recent months.
   The goal is twofold: enable billions of people to “safely store over $1,000” on Ethereum and ensure that contracts or decentralized applications can handle massive amounts of value — akin to that of a nation-state or central bank — with unmatched security. The first step will involve mapping out vulnerabilities at every layer of the network: user experience, wallet security, development tools, software dependencies, consensus layer, DNS infrastructure… The ecosystem will be called upon to report problematic use cases and help with a comprehensive diagnosis. Once priorities are set, the foundation will initiate concrete improvements: short-term fixes, long-term investment plans, and developer support on critical components.
   The aim is not just to plug security holes but to make the entire Ethereum stack more robust against current and future threats. Finally, Ethereum wants to make its security guarantees more transparent. The initiative includes a documentation and educational effort to help users and enterprises understand where Ethereum stands and how it compares to competing blockchains and traditional financial systems.

2. Elon Musk’s xAI partners with Kalshi: AI enters the prediction markets:
   Kalshi, a U.S.-based platform where users can wager on real-world event outcomes, has just announced a strategic partnership with xAI, Elon Musk’s artificial intelligence company. Prediction markets are taking a leap forward with the integration of AI. Kalshi is a major player in this domain, with Donald Trump Jr. serving as a strategic advisor.
   Kalshi provides what's known as a prediction market: users can bet real money on the outcome of future events — like next month’s inflation rate, an election result, or when the U.S. Federal Reserve might change interest rates. These are not gambling-style bets, but rather financial contracts known as “derivatives,” functioning more like small investments.

3. Crypto browser Brave launches Web3 domain names:
   As of Monday, users can create their own “.brave” domain names, thanks to a partnership between crypto browser Brave and Unstoppable Domains. Created on Polygon (POL), these custom domain names can be used with compatible wallets, like Brave’s own, and support more than 310 types of crypto addresses — including Bitcoin (BTC), Ethereum (ETH), and Solana (SOL).

4. Solana unveils its new phone: the Seeker, a crypto-first smartphone:
   Solana Mobile, a subsidiary of Solana Labs, unveiled the Seeker on May 21, its second Web3 smartphone, scheduled for release on August 4, 2025. The device is built on a new decentralized architecture called TEEPIN, includes a native token (SKR), and has already garnered over 150,000 preorders. It aims to change the way we interact with blockchains via mobile.
   The Seeker's core is a technology called TEEPIN — Trusted Execution Environment Platform Infrastructure Network. Behind the technical name lies an ambitious goal: to make smartphones capable of verifying the identity of users and applications independently, without relying on centralized app stores like Google Play or Apple’s App Store.

5. In an interview on The Block's Crypto Beat podcast, MetaMask co-founder Dan Finlay said a native token is "maybe" still on the table, but would be clearly announced inside the popular web3 wallet beforehand. Finlay pointed to a friendlier U.S. regulatory environment under President Trump as a potential enabler for "more kinds of token launches," without committing to any concrete plans. MetaMask has discussed launching a token, tentatively named MASK, since as far back as 2021. However, Finlay warned users to ignore speculation and scams, stressing that no legitimate token would ever be promoted via social media or unsolicited messages.

6. Vitalik Buterin has proposed a “partially stateless node” model for Ethereum to ease the hardware demands of running a node. Instead of requiring users to store the full blockchain (now over 1.3 TB), the model allows nodes to keep only the data relevant to the user, while accessing the rest on demand via cryptographic proofs. This "local-first" approach would enable everyday users to run nodes on personal devices, improving privacy and decentralization. The system complements Ethereum’s EIP-4444, which limits full node history to 36 days, distributing older data across the network. The idea remains in its early stages but could significantly shape Ethereum’s future decentralization.

7. Solana developers are planning what could be the blockchain’s most ambitious core upgrade to date — one that replaces its current technology stack with a redesigned consensus protocol built for near-instant finality and responsiveness. The new system, called Alpenglow, was unveiled on Monday by infrastructure firm Anza, a Solana Labs spinout. It proposes replacing Proof of History — Solana’s famously unique “pre-recorded clock” system — and Tower BFT, its existing voting mechanism for reaching consensus.

Adoption:

1. Bitcoin bidding war: Strive aims to acquire 75,000 BTC from Mt. Gox to build treasury:
   Strive is targeting claims from the defunct Japanese exchange Mt. Gox to bolster its Bitcoin treasury. The time-sensitive operation reflects growing corporate appetite for Bitcoin as the deadline for Mt. Gox victim reimbursements approaches. In a May 20 filing with the Securities and Exchange Commission, Strive Asset Management — co-founded by pro-crypto figure Vivek Ramaswamy — announced a partnership with 117 Castell Advisory Group LLC to purchase claims. These claims total nearly 75,000 BTC, still locked on Mt. Gox. Strive’s goal: to acquire these bitcoins at a significant discount before its reverse merger with Asset Entities planned for this summer.

2. Crypto traders are betting on Ethereum's ether to reach $6,000 by Dec. 26 through bull call spreads. Over 30,000 contracts were executed over-the-counter, costing $7 million. Ether's price has surged over 80% since April, with analysts optimistic about further gains.

3. Standard Chartered reports twelve government entities increased their Bitcoin exposure last quarter by buying MicroStrategy shares. These institutional buyers include South Korea's National Pension Service, the Swiss National Bank, and retirement funds from California, New York, and other states. The bank maintains its Bitcoin price target of $500,000 before Trump's term ends, with projected milestones of $200K in 2025, $300K in 2026, and $400K in 2027.

Partnerships and Funding:

1. Circle sale rumors persist — a tug-of-war between Ripple and Coinbase?
   As Circle prepares to go public, informal talks with Coinbase and Ripple are reigniting rumors of an acquisition. The stakes are high: control over USDC, the market’s second-largest stablecoin, lies at the heart of both crypto giants’ strategic ambitions. According to internal sources, Ripple — the issuer of XRP — made an offer between $4 billion and $5 billion, which Circle rejected as too low.
   Bloomberg, which broke the story, reports that Circle remains undecided on whether to entertain another bid. Citing a regulatory quiet period imposed by the SEC, Circle states that “its long-term goals remain unchanged.”

2. Nasdaq-listed BTCS plans to issue up to $57.8 million in convertible notes through a facility agreed with investment firm ATW Partners to accumulate ETH, calling it a "critical inflection point" for the asset. The firm has already issued its first tranche of notes, worth $7.8 million, and may raise the additional $50 million pending mutual agreement between the parties. BTCS Chairman and CEO Charles Allen personally backed the move with $95,000 of his own funds, with an additional $200,000 invested by a trust of which he is a beneficiary. "By increasing ETH holdings, BTCS aims to deploy additional validators, expand staking rewards, and further optimize block production economics," the firm said, describing ETH as a core part of its revenue generation strategy.

3. Cathie Wood's Ark Invest scooped up $9.4 million in eToro shares on its Nasdaq debut on Wednesday, continuing a strategy of backing crypto-related firms at IPO, as it did with Coinbase in 2021. eToro saw a 29% jump in its share price on its first day of trading as a public company under the ticker ETOR, closing at $67. That followed an upsized initial public offering that priced shares at $52 each, reflecting stronger-than-expected demand. Alongside the eToro buy, Ark sold off a total of $7.9 million worth of its own U.S. spot Bitcoin ETF (ARKB) from two of its funds, though it remains among their top holdings. Meanwhile, the investment firm also picked up $7.6 million worth of 3IQ's Toronto-listed Solana staking ETF and sold 14,390 shares in Jack Dorsey's Block as it rebalanced its fund weightings.

4. Mubadala Investment Company, one of Abu Dhabi's sovereign wealth funds, boosted its BlackRock Bitcoin ETF holdings to 8.7 million shares in Q1, adding 491,439 shares worth $28.8 million, according to a 13F filing with the SEC on Thursday. Despite the increase, the fund's IBIT position dropped in value to $408.5 million at the end of Q1 from $436.9 million at the end of Q4, reflecting a decline in the ETF's market price over the quarter, though it's now worth about $512 million.

5. Sam Altman’s blockchain project World Network has raised $135 million in a private token sale of its WLD token. The sale was to venture capital giants a16z and Bain Capital Crypto and will be used to fund network expansion. The funding comes as the group behind the blockchain announced the project's in-app functionalities as well as the WLD token have become available as of earlier this month to U.S. users.

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.