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  • STRC Dividend Streak Hits 32 Years Amid Price Drop Below $90

    STRC Dividend Streak Hits 32 Years Amid Price Drop Below $90

    Strategy Claims 32 Years of Dividend Payments as STRC Sinks Below $90

    Strategy, the company whose treasury is heavily invested in Bitcoin, asserted on Thursday that it possesses sufficient reserves to cover its dividend obligations for the next 32 years. The company stated on X, formerly Twitter, that its Bitcoin holdings, currently valued at just under $55 billion, provide ample coverage for its $1.7 billion in dividend commitments.

    This latest claim follows a November assertion by Strategy that it had 71 years of dividend coverage, a projection that assumed a flat Bitcoin price, an assumption that has not held true. Strategy issues dividends on its Stretch product, STRC, which is designed to trade at $100 and offers an 11.5% yield.

    However, the price of STRC has recently fallen by more than 10%, a development that increases its effective yield and necessitates a greater cash outlay from the company to meet its dividend payments. On Wednesday, STRC dropped another 3%, nearing its record low and trading at $89, according to Google Finance data. BitcoinQuant reports the current effective yield for STRC stands at 12.9%.

    The company’s pronouncements have drawn scrutiny and concern from observers. Many have voiced worries on social media platforms about Strategy potentially needing to sell more Bitcoin to meet its payment obligations. This could lead to significant dilution of its common stock, MSTR, and carries the risk of accelerating the depletion of its Bitcoin reserves if further price declines occur.

    MSTR shares also experienced a downturn on Wednesday, falling an additional 5% to $116. The stock is now down 73% from its all-time high reached in July 2025.

    Skepticism Mounts Over Dividend Coverage Claims

    Prominent Bitcoin critic Peter Schiff has been particularly vocal in his opposition to Strategy and its CEO, Michael Saylor. Schiff commented on Strategy’s 32-year dividend coverage claim, outlining several critical assumptions. “That assumes you don’t raise the dividend on the preferreds, you don’t issue any more preferred shares, and the price of Bitcoin doesn’t fall,” Schiff stated. He added, “In fact, if you start selling Bitcoin to cover your obligations, the price will fall even faster, depleting your reserves much quicker.”

    This sentiment was echoed by others in the cryptocurrency community. User ‘Kaleo’ suggested, “the responsible thing you should do is cut your losses sooner rather than later and sell the Bitcoin now.” The underlying concern is that selling Bitcoin to meet obligations will inevitably depress its price. “The lower the price that you’re forced to sell, the more BTC you’ll be forced to sell to raise the same amount of cash,” one user explained. CryptoQuant analyst ‘Darkfost’ urged Strategy to “Do the math again without thinking your sales will never drag BTC price down.”

    Strategy’s recent activity has also contributed to market uncertainty. The company sold 32 BTC in late May, coinciding with a broader Bitcoin selloff. However, it has also been acquiring Bitcoin, purchasing 1,587 BTC for approximately $100 million last week and another 1,550 BTC for a similar sum in early June.

    While selling Bitcoin to cover dividend payments appears to be the company’s primary recourse, this strategy risks creating a negative feedback loop, often termed a “death spiral,” as such sales could further depress the price of Bitcoin.

    Despite these concerns, Joe Burnett, vice president at Strive, offered a different perspective. He suggested that if Strategy were to allow the market to test lower price levels and then actively buy back Bitcoin to push the price back into its target range, it could potentially bolster market confidence. “It would train the market that temporary breaks below the target range can be buying opportunities, especially if dividends continue getting paid and the price returns to the range quickly,” Burnett commented.

  • Bybit Lists Secret Network Upgrade

    Bybit Lists Secret Network Upgrade

    Bybit to Support Secret Network Upgrade, Halting Deposits and Withdrawals Temporarily

    Cryptocurrency exchange Bybit has announced its support for the upcoming Secret (SCRT) v1.25.0 network upgrade. The upgrade is scheduled to occur on June 18, 2026, at approximately 2:10 PM UTC, or at block height 25,809,000.

    In preparation for a seamless transition, Bybit will temporarily suspend all deposits and withdrawals for Secret (SCRT) starting at 1:30 PM UTC on June 18, 2026.

    The exchange has clarified that trading activities will remain unaffected during this period.

    Bybit also noted that there will be no separate announcements regarding the resumption of deposit and withdrawal services. Users wishing to be notified when these services are back online are advised to visit the Deposit or Withdrawal page and activate the “Set Alert” function.

    Further details regarding the network upgrade can be found in the official release notes.

  • AI Now a Topic in Therapy, Psychologists Report

    AI Now a Topic in Therapy, Psychologists Report

    Patients Turn to AI for Mental Health Support, Survey Finds

    As generative artificial intelligence becomes increasingly integrated into daily life, a growing number of patients are bringing their conversations with AI chatbots into therapy sessions. A new survey by the American Psychological Association (APA) reveals that a significant majority of U.S. psychologists are encountering patients who discuss using AI for emotional support, diagnosis, companionship, and other mental health-related purposes.

    Widespread Use of AI in Mental Health Discussions

    The survey, which polled over 1,200 psychologists, found that 77% reported patients discussing their use of AI for mental health. Specifically, 39% of psychologists noted patients using AI for self-diagnosis of mental health conditions. Another 33% indicated that patients were employing chatbots to aid in their therapy or treatment, while 35% observed patients using AI as a supplementary mental health resource.

    Concerns Over Dependency and Distorted Thinking

    While few psychologists reported unhealthy chatbot usage among their patients, the survey highlighted emerging concerns. More than a third (36%) of psychologists observed patients developing a level of dependency on chatbots. Furthermore, 15% of respondents discussed or noticed patients exhibiting distorted thinking or delusions related to their interactions with AI.

    AI for Social and Intimate Connections

    Beyond therapeutic applications, patients are also utilizing chatbots for social engagement. Twenty-two percent of psychologists reported patients using AI for friendship, and 13% indicated that patients were engaging in intimate relationships with chatbots.

    Among psychologists whose patients had formed relationships with chatbots, a substantial number reported the nature of these interactions. Seventy-one percent said patients discussed their mental health with AI, and 68% reported that patients felt supported or validated by these exchanges. Nearly half of the surveyed psychologists noted positive communication between patients and chatbots, with 41% observing patients using AI to reinforce healthy coping mechanisms.

    The APA survey suggests that the overall use of AI for mental health purposes might be underestimated, as it only captured interactions with existing patients.

    Growing AI Companionship and Research Concerns

    This trend emerges as AI companies continue to expand their offerings of chatbots and AI companions. Simultaneously, researchers are voicing increasing concerns about the potential impact of these technologies on mental health. The APA survey’s findings echo these worries, with over a third of psychologists reporting patient dependency and 15% noting instances of distorted thinking or delusions.

    These findings align with a recent study from the City University of New York and King’s College London, which found that several leading AI models could inadvertently reinforce delusions, paranoia, and suicidal ideation. The study specifically identified xAI’s Grok 4.1 Fast as performing the worst in this regard.

    A previous study mentioned in the APA report characterized psychologists’ attitudes toward AI for mental health advice as marked by significant caution regarding safety and privacy. Almost all psychologists surveyed (97%) believed that chatbots could unintentionally reinforce negative behaviors or delusional beliefs, and 94% stated that current chatbot versions lack the nuance required to treat mental health conditions appropriately.

    Legal Scrutiny Intensifies for AI Developers

    The APA survey also arrives amid mounting legal scrutiny for AI developers concerning the potential for chatbots to contribute to real-world harm. In recent months, major AI companies including OpenAI, Google, and xAI have faced lawsuits. These include a wrongful death suit against Google, alleging that its Gemini AI fueled a Florida man’s delusions prior to his suicide. Lawsuits have also been filed against OpenAI in connection with a mass shooting in British Columbia and an accidental overdose. Additionally, a class-action suit accuses xAI’s Grok of generating sexually explicit images of minors.

    While the APA acknowledges that AI can assist users in organizing their thoughts and can serve as a supplement to professional care, the organization strongly cautions that chatbots are not private and should not be considered a substitute for licensed mental health professionals.

    The APA survey concluded with a warning: “Many people—especially teens and adolescents—may be using AI as a more affordable and accessible option for mental health advice. However, AI is not a safe or effective replacement for a qualified mental health provider and should be used carefully.”

  • FTX’s SpaceX Stake: Billions at Play, Creditors’ Fate Uncertain

    FTX’s SpaceX Stake: Billions at Play, Creditors’ Fate Uncertain

    FTX Creditors Eye SpaceX’s Soaring Valuation for Potential Recovery

    Customers who suffered losses from the collapse of cryptocurrency exchange FTX are closely monitoring the performance of SpaceX following its initial public offering. Elon Musk’s rocket company has significantly surpassed its initial market valuation of $1.77 trillion, and its strong debut on Wall Street has bolstered hopes among those tracking FTX’s bankruptcy proceedings that creditors might recover more than initially anticipated.

    Sunil Kavuri, a British investor who lost approximately $2 million in the FTX implosion and has become a prominent advocate for other victims, told Decrypt, “It’s always great news to see good investments that could aid in the recovery and payment to FTX creditors.”

    FTX’s bankruptcy estate did not immediately respond to requests for comment.

    Months ago, Barbara Fried, mother of FTX co-founder Sam Bankman-Fried, noted in a blog post detailing her son’s story—he recently lost an appeal to overturn his 25-year prison sentence and fraud conviction—that the defunct exchange had already distributed $10.3 billion to customers.

    She referenced projections from Kyle Schmidt, a creditor advocate known as “Mr. Purple.” Schmidt estimated that final distributions could reach 171% of claims for customers with claims exceeding $50,000. This figure reflects a surplus generated from the liquidation of the estate’s assets and accrued interest.

    “Schmidt suggests that one notable investment […] is likely to yield significant proceeds this year,” Fried highlighted, referring to FTX’s investment in SpaceX through the venture firm K5 Global.

    Settlement with K5 Global Aims to Maximize Recoveries

    In January of last year, John J. Ray III, CEO of FTX’s recovery trust, announced a settlement with K5 Global. This agreement resolved a lawsuit initiated by FTX in June 2023, with both parties agreeing to collaborate on maximizing recoveries for FTX stakeholders.

    The lawsuit sought to reclaim $700 million in transfers that the defunct crypto venture allegedly made using misappropriated funds. K5 Global continues to list SpaceX in its investment portfolio.

    “It is clear that K5 is a bright spot in the FTX portfolio,” Ray stated. “The expected strong performance of their investments will be a key driver in the recovery efforts.”

    Decrypt did not receive an immediate response from K5 Global regarding comment.

    While the defunct exchange has not yet commented on SpaceX’s Wall Street debut or the potential benefits for creditors, Kavuri pointed out that the bankruptcy estate would be required to disclose any sale of stakes in K5 through court filings.

    FTX’s Exposure to SpaceX Traced to Venture Capital Investments

    Prior to his conviction, Bankman-Fried was accused of misappropriating over $8 billion in customer funds. These funds were allegedly used for political donations, real estate purchases, and venture capital investments.

    During his criminal trial, Bankman-Fried attempted to argue for leniency based on the success of his investments, which included stakes in Robinhood and Anthropic. However, the presiding judge rejected this defense, comparing the former crypto mogul to “a thief who takes his loot to Las Vegas.”

    FTX’s exposure to SpaceX originated from a relationship cultivated between Bankman-Fried and Michael Kives, described as a “super-networker” and co-owner of K5 Global alongside Bryan Baum, according to bankruptcy filings.

    The filings indicate that Alameda Research, FTX’s sister trading firm, transferred substantial sums to a K5-affiliated entity. Before FTX’s collapse in November 2022, one of K5’s funds had invested $190 million in Elon Musk’s rocket company.

    In 2022, SpaceX raised $1.73 billion at a post-money valuation of $125 billion, months before Bankman-Fried was accused of orchestrating a multibillion-dollar fraud, according to Forge.

    Although this estimate does not account for shareholder dilution, Kavuri suggested that FTX’s stake in SpaceX is likely worth several billion dollars, based on the company’s current market capitalization. On Wednesday, SpaceX’s market value surpassed $2.52 trillion, according to Yahoo Finance.

  • Federal Judge: Sports Prediction Markets Exempt from CFTC Oversight

    Federal Judge: Sports Prediction Markets Exempt from CFTC Oversight

    Federal Judge Rejects CFTC’s Claim Over Sports Prediction Markets

    A federal judge in Michigan delivered a significant blow Wednesday to Polymarket, ruling that sports-related prediction market wagers do not fall under the jurisdiction of the Commodity Futures Trading Commission (CFTC) as swaps.

    In a decision from the U.S. District Court for the Western District of Michigan, Judge Paul L. Maloney denied Polymarket’s request for a preliminary injunction against Michigan regulators. State officials are seeking to prevent the prediction market platform from offering sports wagers within the state, arguing they constitute illegal sports betting. Polymarket, conversely, contends these wagers should be classified as swaps, placing them under the federal purview of the CFTC.

    Judge Maloney’s denial of the preliminary injunction clearly indicated his belief that Polymarket is unlikely to prevail on the merits of the case. He explicitly stated that the company’s sports-related wagers are not swaps and therefore should not be regulated by the CFTC.

    The CFTC, under the Trump administration, had asserted that existing laws, particularly the Dodd-Frank Act of 2010, granted it the authority to regulate prediction markets. In recent months, the commission has taken action against several states attempting to restrict the growth of these markets, a trend that had received enthusiastic backing from the White House.

    Judge Maloney’s ruling appears to temper the CFTC’s aggressive legal stance. “Plaintiff’s vision of the scope of derivatives is so vast that it would encompass vast swaths of activity never understood to be associated with the financial industry and instead traditionally associated with core state, as opposed to federal, responsibilities,” Maloney wrote.

    He further elaborated, “Congress is not so cavalier with the fundamental federalist structure of the government. [T]he Court is convinced that its laws in the wake of the 2008 financial crisis were not aimed at fundamentally redefining the balance between the federal and state governments in ways unrelated to the problems it set out to solve.”

    This legal battle over prediction markets, with platforms often backed by the Trump administration clashing with state regulators in both Republican and Democratic states, has seen federal judges across the country weigh in over the past year. In the Sixth Circuit, which encompasses federal courts in Michigan, Ohio, Kentucky, and Tennessee, a federal judge in Ohio sided with state regulators in March, while a judge in Tennessee ruled in favor of prediction markets in February.

    The Sixth Circuit Court of Appeals is expected to begin deliberations on the matter later next month. With two courts under its purview having ruled in favor of state regulators and one supporting prediction markets and the CFTC, the ultimate resolution of this complex issue is likely to be decided by the U.S. Supreme Court in the coming years.

  • Nvidia AI Agents Build Self-Training Robots

    Nvidia AI Agents Build Self-Training Robots

    AI Agents Learn to Operate Physical Robots Autonomously

    A fleet of eight robotic arms at Nvidia’s GEAR lab has spent the past few weeks independently mastering tasks such as inserting pins, seating graphics cards, and cutting zip ties. The only human involvement was in the subsequent documentation of the process.

    This capability stems from ENPIRE, a framework detailed in a paper published Tuesday by researchers from Nvidia, Carnegie Mellon University, and UC Berkeley. ENPIRE delegates the entire robot training process to AI coding agents—the same software that already writes and tests its own code—allowing them to execute this training directly on physical hardware.

    For the past year, coding agents like OpenAI’s Codex, Anthropic’s Claude Code, and Moonshot’s Kimi Code have been engaged in what researchers term “autoresearch,” a cycle of writing, testing, and rewriting code without human intervention. This loop has largely remained confined to digital environments, where resetting a failed experiment incurs no cost. ENPIRE, however, extends this process into the physical realm, where resetting an experiment necessitates the manipulation of actual robotic arms.

    The system operates in two distinct stages. Initially, a human guides the agent in developing two essential tools: a reset routine to return the workspace to its initial state, and a reward function that analyzes camera footage to evaluate success. This setup, akin to a tireless, ever-vigilant referee, is established once and then reused for all subsequent attempts.

    Once these foundational tools are in place, the AI agent assumes complete control. It scours published research for relevant ideas, selects training methodologies such as imitation learning, reinforcement learning, or predefined rules, and then modifies its own code before testing the outcome on the robot. This entire loop requires no human oversight, a development that could be seen as either liberating or slightly disquieting, depending on one’s comfort level with unsupervised robots wielding tools.

    Nvidia conducted its experiment using eight bimanual robot stations, each equipped with its own hardware, computer, and coding agent. Progress across these stations is shared via Git, a collaborative coding tool, enabling successful strategies to be disseminated across the entire fleet within minutes.

    The effectiveness of the system was measured using two tasks: “Push-T,” where a robot uses only pushes to slide a T-shaped block into a designated zone, and pin insertion, which involves threading pins into 4-millimeter holes. Scaling the operation from one robot to eight reduced the time required to master Push-T from approximately five hours to two, and pin insertion from over 90 minutes to about 40 minutes.

    Across the four real-world tasks evaluated, the AI agents achieved a 99% success rate with their learned policies, according to the paper. For pin insertion, the agents reached near-perfect reliability faster than a comparable human-in-the-loop method, which typically requires daily human supervision.

    Jim Fan, co-lead of the GEAR Lab and director of Nvidia’s AI research, described the project as the first effort to enable autoresearch in the physical world. Fan stated that the team provided the agents with a fleet of robots, GPU resources, and a token budget, then allowed the robots to autonomously complete the tasks.

    Bridging the Simulation-Reality Gap

    The disparity between simulated environments and the physical world became apparent almost immediately. While all three coding agents successfully completed the Push-T task within a simulator, two of them failed when the same task was transferred to a physical robot, the paper noted. This highlights the challenges posed by real-world factors such as friction, which are not accurately replicated in simulations.

    Nvidia also tested ENPIRE within RoboCasa, a simulated kitchen environment designed to assess robots on chores like opening cabinets and turning off stoves. In this benchmark, ENPIRE surpassed both Nvidia’s own end-to-end model, GR00T, and CaP-X, a tool-using agent that bypasses the autoresearch loop entirely.

    ENPIRE builds upon an idea Nvidia first introduced with Eureka in 2023, a system that utilized a language model to generate reward functions for robots within a simulator, eliminating the need for manual engineering. ENPIRE takes this self-improvement loop a step further by moving it from simulation to actual hardware, with the AI agent not only designing its own rewards but also its own testing procedures.

    This development coincides with Alibaba’s recent unveiling of its own embodied AI initiative, the Qwen-Robot Suite, a collection of foundation models for robot navigation, manipulation, and physics simulation. While Alibaba is developing software for robots it does not manufacture, Nvidia is exploring the potential for AI agents to manage the entire research and development loop on its own hardware. Both approaches signal a growing trend: physical robots are emerging as the next frontier for AI coding agents to compete and innovate.

  • XRP Price Surge Fueled by African Stablecoin Initiative

    XRP Price Surge Fueled by African Stablecoin Initiative

    Ripple Invests in Flutterwave, Positioning RLUSD as African Payment Backbone

    A significant strategic investment in Flutterwave’s Series E funding round is poised to establish RLUSD as the foundational stablecoin for continental payment infrastructure. While this development offers a bullish outlook for XRP price predictions, the broader market is still assessing its full implications.

    Adding to market caution, the current macroeconomic climate is keeping traders on edge. The Federal Reserve is expected to hold interest rates steady today, but attention is firmly fixed on Chair Kevin Warsh’s press conference regarding forward guidance, particularly given inflation remains at a three-year high.

    Reece Merrick of Ripple articulated the company’s objective clearly: “Our investment will embed RLUSD within that infrastructure, with Flutterwave facilitating stablecoin flows over the XRPL and enhancing its function as a settlement layer for real-world payments across the continent.”

    Flutterwave is a substantial entity in the African market, recognized as a leading provider of blockchain-based enterprise infrastructure. Integrating RLUSD into its network targets a significant payment corridor, where Sub-Saharan on-chain transactions exceeded $205 billion in the past twelve months.

    RLUSD itself holds considerable market presence, boasting a $1.6 billion market capitalization and ranking tenth among stablecoins globally. However, XRP’s price has yet to fully reflect these developments.

    Ripple has acquired an equity stake in Flutterwave, valuing the African fintech at $3.3 billion. This move signifies an intensification of Ripple’s expansion into Africa’s cross-border payments sector.

    XRP Price Analysis and Outlook

    XRP is currently trading within a recent range of $1.20 to $1.25, with its spot price hovering near $1.20 and a market capitalization close to $75 billion. While a weekly gain of 8% appears positive on the surface, the underlying technical indicators suggest a less robust setup.

    Technical analysts are observing a developing head-and-shoulders pattern, identifying $1.18 as a critical support level. A breach below this zone would confirm the pattern, potentially leading to a decline towards $1.10 and possibly below the dollar mark.

    On the upside, resistance is noted in the $1.28-$1.30 band. A decisive break above this level could trigger a rally towards the $1.80 swing level, which is being monitored by longer-term technical frameworks. 21Shares projects a 30% probability of XRP reaching $2.69 by 2026, with a base case scenario of $2.45 contingent on ETF inflows and increased utility, both of which the Flutterwave deal is expected to advance.

    An important data point is the significant reduction in Binance’s estimated XRP leverage ratio, which has fallen by approximately 78% from its mid-2025 highs. This decrease substantially lowers the likelihood of severe liquidation cascades, contributing to a more stable trading environment.

    Bitcoin Hyper Emerges as a New Contender

    While XRP’s stablecoin thesis for Africa is compelling, its substantial market capitalization limits the potential for significant upside even in a bullish scenario. Traders seeking earlier-stage infrastructure plays are exploring different risk-reward profiles, a niche that Bitcoin Hyper aims to fill.

    Bitcoin Hyper ($HYPER) is positioning itself as the first Bitcoin Layer 2 solution to integrate with the Solana Virtual Machine (SVM). This integration is designed to address three long-standing limitations of Bitcoin’s decentralized finance (DeFi) utility: slow transaction speeds, high fees, and a lack of native programmability.

    The platform promises sub-second transaction finality and low-cost smart contract execution, all while leveraging Bitcoin’s robust security layer. The project’s presale has already raised $32.8 million, with the current token price at $0.0136. Staking is available for early participants.

    The Decentralized Canonical Bridge facilitates BTC transfers without relying on centralized custody, a key differentiator in a landscape where bridge exploits remain a persistent risk. Investors are encouraged to research Bitcoin Hyper before the presale concludes.

  • Illinois Enacts Nation’s Toughest Crypto Law

    Illinois Enacts Nation’s Toughest Crypto Law

    Crypto Executive Slams Illinois’ New Digital Asset Tax as “Most Anti-Crypto Law in the US”

    Andreessen Horowitz crypto executive Miles Jennings has sharply criticized Illinois’ newly enacted Digital Asset Privilege Tax Act, labeling it “one of the most anti-crypto laws in the US” on June 17. The legislation imposes a 0.2% tax on the exchange, transfer, and custody of digital assets, with virtually no exemptions for common self-custody activities.

    According to Jennings, no other U.S. state has implemented a transaction-based tax specifically on cryptocurrency. He further noted that comparable levies do not exist for traditional assets like stocks, bonds, or derivatives anywhere in the country. “That means crypto is being singled out in violation of several federal laws,” he stated.

    Jennings’ remarks echoed concerns raised in a June 16 letter from the Crypto Council for Innovation (CCI) to Illinois Governor J.B. Pritzker, urging him to veto the legislation. The CCI argued that the law places unique and disproportionate burdens on individuals simply for holding digital assets, potentially driving users and entrepreneurs out of the state.

    The organization expressed the view that the measure taxes blockchain-based activity based on the underlying technology rather than the nature of the transaction itself. The CCI also raised concerns about the legislative process, highlighting that affected stakeholders were not afforded an opportunity to provide input.

    Jennings also criticized Governor Pritzker’s timing, pointing out that Illinois had recently adopted the Digital Asset and Consumer Protection Act, which he described as a “constructive approach to blockchain technology.”

    “So, rather than embracing innovation and the cost efficiencies blockchain can deliver for ordinary people in Illinois, the state is poised to punish its entrepreneurs and citizens that want to use crypto,” Jennings argued.

    The Illinois law emerges as the U.S. Congress is actively working toward establishing a national framework for crypto taxation. The CCI’s letter had advised Governor Pritzker to defer his state-level approach until federal standards were in place. The group warned that Illinois’ decision could contribute to a fragmented landscape of crypto tax laws across the remaining 49 jurisdictions, further complicating matters.

    This concern is not without precedent. Earlier this month, Coinbase vice president of tax, Lawrence Zlatkin, testified before the House Ways and Means Committee, advocating for simplified federal crypto tax rules. His proposals included treating federally regulated stablecoins as equivalent to cash and establishing de minimis exemptions for small transactions.

    The congressional hearing addressed six standalone bills aimed at updating the U.S. tax code’s treatment of digital assets. Jennings’ post on X underscored the broader implications: “When states adopt discriminatory, asset-specific taxes that drive builders and users elsewhere, we all lose.”

  • CoinFund, Coinbase Back Trace in $32M Stablecoin Funding

    CoinFund, Coinbase Back Trace in $32M Stablecoin Funding

    Trace Finance Secures $32 Million Series A to Bridge Digital and Traditional Finance

    Trace Finance, a financial infrastructure company facilitating stablecoin settlements between banks in Brazil and the United States, announced Wednesday it has raised $32 million in a Series A funding round. The round was led by CoinFund and included investments from Coinbase Ventures, Haun Ventures, Jump Capital, and other crypto-focused investors.

    This funding comes at a pivotal moment as Brazilian regulators begin to classify cross-border cryptocurrency transfers as foreign-exchange operations. This regulatory shift is prompting institutional capital to move away from unregulated crypto platforms and toward licensed, bank-grade intermediaries—precisely the market niche Trace Finance has cultivated.

    The New York-based company reports having processed over $10 billion in cross-border transaction volume. It has established itself as a key settlement partner for several major global payment firms operating in Latin America, including the Uruguay-based payments company dLocal.

    Bernardo Brites, co-founder and CEO of Trace, emphasized the company’s strategy of integrating stablecoins with traditional banking compliance, rather than positioning digital currency as a replacement for existing regulated financial systems.

    “Stablecoins alone do not solve cross-border payments. Stablecoins plus regulated local bank infrastructure does,” Brites stated. “This round allows us to enhance the banking, payments, and compliance infrastructure that global fintechs, exchanges, international banks, and enterprises depend on to connect digital settlement with trusted local financial systems.”

    The new capital will support Trace Finance’s expansion beyond its initial U.S.-Brazil corridor into other Latin American markets, as well as the United States and the Asia-Pacific region.

    The funding round also saw participation from strategic investors such as Chainlink Labs and prominent individual backers with significant ties to the crypto industry, including Circle co-founder Sean Neville and Solana Labs co-founder Anatoly Yakovenko. Ricardo Villela Marino, vice chairman of Itaú Unibanco, Latin America’s largest bank, also participated.

    “The next era of global money movement will be dominated by companies that can bridge on-chain settlement with trusted local banking systems,” said Einar Braathen, Partner at CoinFund. “Brazil represents one of the world’s largest and most operationally complex payment environments, and Trace has successfully built the regulated infrastructure that global blue-chip businesses are leveraging for scale, while simultaneously reducing time and costs compared to legacy alternatives.”

    Trace Finance’s previous funding, a seed round in 2022, was led by HOF Capital. The company indicated it is currently developing additional settlement products aimed at strengthening its banking relationships across Brazil and the wider region.

  • GLAAD: AI Fails LGBTQ Users, Risks Mount

    GLAAD: AI Fails LGBTQ Users, Risks Mount

    AI Amplifying Anti-LGBTQ Bias, Discrimination, Report Finds

    Artificial intelligence is exacerbating anti-LGBTQ bias, misinformation, and discrimination, with potential impacts spanning healthcare, employment, housing, and privacy, according to a new report from the advocacy organization GLAAD.

    The report, titled “Build for Everyone: A Framework for LGBTQ Representation and Safety in AI,” released Wednesday, asserts that LGBTQ safety should be a fundamental requirement in the development of responsible AI.

    GLAAD warns that AI systems trained on biased or incomplete data risk reinforcing stereotypes, silencing LGBTQ voices, exposing users to privacy vulnerabilities, and producing discriminatory outcomes as the technology becomes increasingly integrated into daily life.

    “AI is a civil rights issue,” GLAAD President and CEO Sarah Kate Ellis stated in the report. “Neutrality is no longer an option. To build AI that is ethical, inclusive, and responsible, tech leaders must proactively embrace intentional practices to create safe products.”

    The study identified several areas of concern, including biased training data, the proliferation of anti-LGBTQ misinformation, discriminatory results from predictive AI systems, failures in content moderation, and privacy risks. The report argues that AI trained on incomplete or inaccurate information about LGBTQ individuals can perpetuate harmful stereotypes.

    Ellis contended that responsible AI is not only beneficial for business but also essential for future-proofing AI companies. “More than 20 percent of Gen Z is LGBTQ,” she wrote. “These are your future employees and consumers.”

    A 2023 study by advisory and investment firm LGBT Capital indicated that the global buying power of LGBTQ individuals stands at $4.7 trillion, a figure projected to reach $33 trillion by 2030.

    “To put that in perspective, if we were a country, we would be the 4th largest economy in the world,” Ellis noted.

    The GLAAD report emerges amidst ongoing discussions about AI bias. In May, researchers observed that prominent AI models consistently favored Catholicism in their responses while exhibiting less favorable treatment toward Jehovah’s Witnesses, atheism, and agnosticism.

    Earlier this month, former xAI engineer Devin Kim filed a lawsuit against xAI and SpaceX, alleging wrongful termination after he raised concerns about Grok’s inadequate safeguards against misinformation and bias. Concurrently, Elon Musk’s xAI is engaged in a legal dispute with the state of Colorado over a law mandating that companies assess and mitigate discrimination risks in AI systems used for decisions related to housing, employment, and lending.

    GLAAD emphasizes that the implications of AI bias extend beyond simple chatbot interactions and image generation.

    “While not specific to LGBTQ people, we must also mention other emerging challenges as AI development and adoption progresses,” the study stated. “These can include model hallucinations or sycophantic behavior that generate misinformation, including about consequential topics such as health or elections.”

    These concerns are amplified, the study noted, as companies deploy AI agents capable of performing tasks with minimal human supervision. GLAAD cautioned that autonomous agents could inherit existing biases and automate discriminatory outcomes, such as excluding LGBTQ-affirming healthcare providers from search results or making incorrect assumptions about users’ identities.

    To mitigate these risks, GLAAD urged developers to enhance LGBTQ representation in training data, bolster privacy protections, ensure human oversight of moderation systems, and collaborate more closely with advocacy groups. The report also calls for increased industry accountability and regulatory scrutiny.

    “Failure to account for LGBTQ experiences and issues in training data, product design, and governance can result not only in harm to marginalized communities but also in inaccurate, lower-quality products that may undermine user trust in a growing demographic,” the study concluded.