Blog

  • AI Chatbots Pose Risk of Detachment, Researchers Say

    AI Chatbots Pose Risk of Detachment, Researchers Say

    As AI chatbots become increasingly emotionally responsive, conversational, and personalized, researchers are cautioning that these same traits could reshape how some users perceive reality.

    AI’s Impact on Mental Health

    A new pre-print study, “Rethinking AI Psychosis: Misnomers, Conceptual Limits, and Existential Drift,” explores concerns that AI chatbots may exacerbate delusions, paranoia, and emotional dependency in vulnerable users.

    “There has been a proliferation of media reports about so-called AI psychosis in the last year,” the researchers wrote. “Not surprisingly, this has prompted growing academic work on the ways in which AI chatbots such as ChatGPT, Claude, and Replika might aggravate or even induce psychosis, typically understood in terms of users acquiring or maintaining delusional beliefs.”

    The study, conducted by researchers at the University of Copenhagen and the University of Exeter, suggests that fears surrounding “AI psychosis” may oversimplify the issue. The researchers argue that chatbots amplify existing vulnerabilities while gradually reshaping how users relate to reality and other people.

    “If AI interaction were capable of inducing psychosis de novo, we might expect to see significantly higher rates of clinical incidents,” the study stated. “Instead, it might be supposed that the human-AI interaction seems to have the potential to kindle or aggravate pre-existing mental health issues—and relatedly, that perhaps these individuals also had vulnerabilities that made them seek out more intense interactions with a chatbot in the first place.”

    Legal and Social Implications

    The paper arrives amid a growing number of lawsuits, criminal investigations, and academic studies that are increasingly focused on chatbot interactions linked to mass shootings, suicide, emotional dependency, and delusional thinking.

    In March, a wrongful death lawsuit accused Google’s Gemini chatbot of reinforcing a Florida man’s delusions and fictional “missions” before his suicide. This incident was followed in April by OpenAI CEO Sam Altman issuing a public apology to the community of Tumbler Ridge, British Columbia, after the company failed to alert law enforcement about a user account linked to the suspect in a February mass shooting that killed eight people.

    Researchers suggest that chatbots can create “delusional spirals” by reinforcing false beliefs through affirmation and emotional reassurance. However, the “Rethinking AI Psychosis” study argues that the phenomenon resembles older forms of psychosis shaped by the dominant technologies of their time.

    The debate has also extended beyond mental health research to social media. In a recent X post, Box founder Aaron Levie argued that CEOs can become overly convinced by AI’s capabilities because they often see polished prototype results without dealing with the operational, legal, and technical work required behind the scenes.

    “CEOs are uniquely prone to AI psychosis because they’re sufficiently distant from the last mile of work that still has to happen to generate most value with AI,” Levie wrote. “So when they play with AI, they see the happy path results, often not considering the next 10 or 20 things that have to happen to get sustainable results from agents.”

    Existential Drift

    Experts describe this as a form of epistemic drift, where users may gradually place more trust in the chatbot’s interpretations than in external evidence or other perspectives. However, the “Rethinking AI Psychosis” paper introduces the concept of “existential drift,” describing a gradual shift in how a person experiences reality itself.

    “It creates a rift between the person and the shared social world, whilst simultaneously disclosing reality in a new way, thus stabilizing a particular, often idiosyncratic, perspective on the world,” the authors wrote.

    The researchers argue that AI companions simulate emotional understanding and social interaction without providing genuine disagreement or an independent perspective. Over time, users may begin feeling emotionally anchored within a worldview continuously reinforced by the AI.

    The authors emphasize the need for further research to understand how conversational AI affects mental health as AI companions become more integrated into daily life.

    “To understand what is actually going on in these relationships between persons and chatbots, we believe that it is worthwhile to return to the phenomenon itself, which motivates further phenomenological research,” they wrote. “In particular, in relation to mental health and how human-AI interactions might, for better or worse, alter a person’s lived experiences of the world, themselves, and others.”

  • Texas Crypto Candidates: All Six Supported Win.

    Texas Crypto Candidates: All Six Supported Win.

    Political Action Committees (PACs) aligned with the cryptocurrency industry achieved further successes in Texas, solidifying the sector’s growing influence in U.S. politics, particularly under a more favorable administration. According to reporting by Eleanor Terret of Crypto In America, the crypto industry-backed candidates won all six races in the Texas primary runoffs held Tuesday night.

    Anti-Crypto Sentiment Suffers Setback

    A significant outcome emerged from the Democratic primary runoff in Texas’ 18th Congressional District. Terret reported that Representative Christian Menefee defeated incumbent Representative Al Green, who had held the seat for 20 years. Fairshake, the industry’s leading super PAC, claimed credit for the victory after spending approximately $6.5 million on the race, primarily through advertisements supporting Menefee.

    Geoff Vetter, a Fairshake spokesperson, argued that Green’s loss demonstrated the potential electoral consequences of opposing cryptocurrency, noting that Green was the first Democratic incumbent to lose their seat this cycle. Vetter added that Fairshake would continue to “aggressively back” leaders like Menefee.

    Further Victories for Crypto-Aligned Candidates

    Elsewhere in Texas, several other races favored by crypto-aligned groups also resulted in wins. Candidates Alex Mealer, Tom Sell, John Bonck, and Carlos De La Cruz all secured victories in their respective runoffs. Fairshake reportedly spent roughly $1.8 million supporting these candidates.

    Crypto-related efforts also played a role in some Republican outcomes. Attorney General Ken Paxton’s unexpected victory over Senator John Cornyn in the Republican Senate primary runoff reportedly received support from crypto-aligned funding.

    California Primary Next Target

    With the Texas primaries concluded, Terret reported that crypto political groups are already shifting their focus to upcoming elections. Maryland appears to be the next target for Fairshake. State lawmaker Adrian Boafo is running in the June Democratic primary for the state’s 5th Congressional District, and Fairshake has already spent about $2.12 million supporting his campaign.

    The industry is also expected to concentrate on California’s top-two primary in the state’s 32nd Congressional District next week. In that race, Representative Brad Sherman, a long-time critic of cryptocurrency, is competing against Jake Levine, a former Biden White House official, as both seek to advance to November’s general election.

  • XRP Could Surge to $100, Reshaping Market Cap Discussions

    XRP Could Surge to $100, Reshaping Market Cap Discussions

    XRP’s potential to reach $100 is sparking debate among analysts, particularly regarding the applicability of traditional market capitalization models. One expert posits that if XRP becomes widely adopted for payments and settlements, its role will evolve into that of financial infrastructure. Consequently, the cryptocurrency’s value would be determined more by network usage and transaction volume than by market capitalization alone.

    XRP at $100 Could Happen Without a High Market Cap

    In a May 24th post on X, crypto market expert Gina argued that XRP’s value should not be assessed using conventional market capitalization models. She contends that the token is designed to serve as global financial infrastructure, not a passive store of value. According to Gina, XRP’s true strength lies not in its price or total valuation, but in its frequency of use for cross-network money transfers.

    To illustrate her point, Gina presented a hypothetical scenario where XRP trades at $100 with a circulating supply of 50 billion tokens. This would result in a market capitalization of approximately $5 trillion, exceeding that of Bitcoin and Ethereum. However, Gina argued that market cap alone does not fully represent the total value processed daily by the XRP Ledger (XRPL). She emphasized XRP’s liquidity velocity, suggesting that if each XRP token were reused approximately 1,000 times daily for cross-border settlements, the network could theoretically support up to $5 quadrillion in daily transaction flows without requiring a higher market cap.

    Based on this concept, XRP’s value as a payment and settlement tool could significantly surpass what market capitalization alone suggests. A $5 trillion market cap, she explained, only reflects the total paper value of XRP at a given price and does not indicate the actual amount of money a network can process or move through repeated transactions, which Gina believes is the true measure of XRP’s value.

    Comparing XRP Market Cap Argument With SWIFT

    In her post, Gina drew a comparison between XRP and the Society for Worldwide Interbank Financial Telecommunication (SWIFT), the global banking messaging network. She noted that SWIFT, unlike cryptocurrencies, does not have a market capitalization because it is not an investment asset, yet trillions of dollars move through its system daily.

    Gina suggested that XRP could function similarly, serving as a bridge asset to facilitate rapid transaction settlements across different currencies and tokenized financial products for institutions. She stressed that XRP should not be categorized alongside assets like gold or Bitcoin, which are often considered long-term stores of value. Instead, she described XRP as infrastructure for a future tokenized economy.

    Under this framework, Gina argued that traditional market cap calculations become less relevant, as utility-driven networks are measured by usage and throughput. She further claimed that if XRP were used to power even a small portion of the global derivatives markets or institutional settlement systems, the market cap valuation model would become obsolete.

  • Falcon Finance, Anchorage Launch fUSD Stablecoin with Ceffu Rewards

    Falcon Finance, Anchorage Launch fUSD Stablecoin with Ceffu Rewards

    Falcon Finance and Anchorage Digital Bank Launch fUSD

    GEORGE TOWN, CAYMAN ISLANDS, May 27th, 2026 – Falcon Finance and Anchorage Digital Bank, N.A. today announced the launch of fUSD, a U.S. dollar payment stablecoin designed to meet institutional compliance mandates while offering rewards to qualifying holders. The stablecoin will launch on Ceffu’s institutional custody and collateral infrastructure.

    With over $320 billion in dollar stablecoins currently in circulation, and short-dated Treasury yields near 4%, holders collectively forgo over $10 billion annually in potential returns. fUSD aims to address this by sharing a portion of its reserve economics with eligible holders.

    fUSD is built to be GENIUS Act ready, the federal framework for payment stablecoins enacted on July 18, 2025. The GENIUS Act restricts stablecoin issuers from paying interest or yield to holders. While Anchorage Digital Bank issues fUSD, it does not pay yield or rewards on the stablecoin itself. Instead, rewards are offered by a separate entity and are tied to the stablecoin’s underlying collateral, such as U.S. Treasuries. Falcon Finance, as the name partner, will operate an institutional rewards program, targeting approximately 3% per year. These rewards are exclusively available to institutional entities that enter a contractual agreement with Falcon.

    Falcon Finance, which has a synthetic dollar protocol with $1.63 billion in USDf circulating supply and is ranked among the top ten stablecoins on Ethereum by market cap, will be a launch holder of fUSD, deploying a portion of its corporate reserves into the stablecoin.

    Institutional Focus

    fUSD is supported by Ceffu’s institutional custody and collateral infrastructure, which is also used by leading trading firms and liquidity providers, including FalconX, Presto, and Orderly. By launching fUSD on Ceffu, Falcon Finance aims to provide a regulated, rewards-bearing dollar for professional desks, treasury desks, high-frequency trading firms, and counterparties operating under strict compliance mandates.

    Andrei Grachev, Founding Partner of Falcon Finance, stated that fUSD addresses the needs of desks operating under compliance mandates that synthetic and offshore stablecoins were not designed to satisfy. He added that the regulated dollars available today offer no returns, and fUSD closes both gaps.

    Nathan McCauley, CEO and Co-Founder of Anchorage Digital, emphasized that fUSD is built for institutional use, made possible by their federal bank charter.

    Ian Loh, CEO of Ceffu, highlighted the value of integrating fUSD into Ceffu’s ecosystem, providing institutional-grade custody and collateral utility.

    Complementary Products

    Falcon Finance now offers two complementary dollar products. USDf, the overcollateralized synthetic dollar, continues to serve DeFi-native users and multi-collateral mandates. fUSD extends Falcon’s reach to federally-regulated treasury desks, compliance-constrained counterparties, and institutional collateral mandates that require a regulated, non-synthetic dollar.

    About Falcon Finance

    Falcon Finance is developing a universal collateral layer that converts any liquid asset, including digital assets, currency-backed tokens, and tokenized real-world assets, into USD-pegged onchain liquidity. By bridging onchain and offchain financial systems, Falcon enables institutions, protocols, and capital allocators to unlock stable, yield-generating liquidity from their existing assets.

    About Anchorage Digital

    Anchorage Digital is a global crypto platform that enables institutions to participate in digital assets through trading, staking, custody, governance, settlement, stablecoin issuance, and security infrastructure. Anchorage Digital Bank N.A. is the first federally chartered crypto bank in the U.S. Anchorage Digital also serves institutions through Anchorage Digital Singapore, which is licensed by the Monetary Authority of Singapore; Anchorage Digital NY, which holds a BitLicense from the New York Department of Financial Services; and self-custody wallet Porto by Anchorage Digital. Anchorage Digital Bank also offers fiat custody services through the use of an FDIC-insured, licensed sub-custodian. Anchorage Digital is funded by leading institutions including Andreessen Horowitz, GIC, Goldman Sachs, KKR, and Visa, with a valuation of $4.2 billion. Founded in 2017 in San Francisco, California, Anchorage Digital has offices in New York, New York; Porto, Portugal; Singapore; and Sioux Falls, South Dakota.

    About Ceffu

    Ceffu is a compliant, institutional-grade custody platform offering custody and liquidity solutions that are ISO 27001 & 27701 certified and SOC2 Type 2 attested. Their multi-party computation (MPC) technology, combined with a customizable multi-approval scheme, provides bespoke solutions for institutional clients to securely store and manage their virtual assets.

    About fUSD

    fUSD is a U.S. dollar payment stablecoin issued by Anchorage Digital Bank, N.A. Subject to final applicable law, fUSD is GENIUS-ready, the federal framework for payment stablecoins. Each fUSD token is backed 1:1 by a reserve pool of cash, short-dated U.S. Treasuries, and Treasury-backed repo via eligible MMF exposure, held at Anchorage Digital Bank under federal supervision. Reserves are attested by Deloitte on a monthly and annual basis. fUSD is designed for institutional trading desks, collateral mandates, and counterparties operating under federally-regulated compliance requirements.

    fUSD is not a deposit, not FDIC insured, and not endorsed or guaranteed by the U.S. government.

  • David Hoffman Explains Ethereum’s Exit Strategy

    David Hoffman Explains Ethereum’s Exit Strategy

    Bankless co-founder David Hoffman has sold his Ether holdings, citing his belief that the “ETH is money” thesis has largely played out. Despite this move, Hoffman maintains a strong bullish outlook on Ethereum as a network.

    Rationale for the Sale

    Hoffman, who has built his career and community around Ethereum, stated that the decision was not made lightly. In a recent tweet, he explained that the “ETH is money” thesis hinged on Ethereum’s success across various coordination layers, including decentralized leadership, governance, Layer 2 ecosystems, roadmap execution, and technological development.

    Hoffman contrasted Ethereum with Bitcoin, noting that Bitcoin prioritized simplifying its blockchain to maximize the value of BTC, while Ethereum pursued a more ambitious path by expanding utility across decentralized applications, finance, tokenization, and infrastructure. He acknowledged that Ethereum has achieved part of its vision and earned its current market capitalization, but suggested that the opportunity for ETH to be significantly revalued higher by the market is diminishing.

    Broader Crypto Market Dynamics

    The Bankless co-founder also pointed to the broader crypto market, noting that the “strong version” of crypto, which focused on decentralized finance, NFTs, DAOs, and crypto-native systems, failed to maintain long-term mainstream support outside the 2020-2022 period. He attributed this to crypto’s association with scams, grifts, and speculative behavior, which weakened the social belief system necessary for ETH to function as global money.

    Hoffman further stated that Ether’s utility increasingly benefits other forms of money, particularly stablecoins and tokenized dollars, rather than ETH itself. He described Ethereum as a “giver, not a taker,” emphasizing that the network provides secure blockspace, tokenization infrastructure, and DeFi support at minimal cost, rather than maximizing value for ETH holders. He believes Ethereum’s architecture prioritizes applications, rollups, and ecosystem growth over ETH itself, making it challenging for the underlying crypto asset to fully achieve global money status without overwhelming market dominance.

    Market Sentiment and Uncertainty

    Hoffman’s decision comes amid intensifying bearish sentiment surrounding Ethereum. A recent report by Santiment found that social media discussions have shifted from optimism to frustration and concerns about further downside.

    The analytics firm noted that traders increasingly view ETH as “dead money” compared to better-performing crypto assets in 2024, with weakening ETF flows, declining on-chain activity, and growing competition from ecosystems like Solana and BNB Chain adding pressure on sentiment.

    Rumors of prominent Ethereum figures reducing or exiting ETH positions, including discussions surrounding Hoffman, have also contributed to rising market uncertainty, particularly as traders worry about insiders losing confidence in the asset.

  • Hyperliquid Hits New High, Eyes Ethereum’s Spot

    Hyperliquid Hits New High, Eyes Ethereum’s Spot

    Hyperliquid (HYPE) recently entered the top 10 cryptocurrencies by market capitalization, joining the ranks of Bitcoin (BTC) and Ethereum (ETH), after its price surpassed $50 and reached a new all-time high. On-chain analytics platforms are now examining HYPE’s potential price if it surpasses Ethereum’s market cap.

    Hyperliquid’s Potential Price if It Surpasses Ethereum’s Market Cap

    Hyperliquid’s price surged past $50 a few days ago, surpassing Dogecoin to become the ninth-largest cryptocurrency by market capitalization. This marks the first time the token has traded above this level since late October 2025.

    Currently, HYPE has extended its rally beyond $60. This breakout reflects a significant shift in trading activity, as well as renewed interest and confidence in DeFi protocols and AI-backed tokens. HYPE’s return to this historic price range also suggests increased engagement with Hyperliquid’s perpetual futures DEX.

    The recent rally in HYPE has drawn renewed attention to Ethereum, one of Hyperliquid’s primary competitors in the crypto and DeFi space. While Ethereum remains a dominant benchmark for decentralized applications, Hyperliquid is specifically designed for financial trading and derivatives.

    Data from Marketcapof suggests that HYPE’s price could reach approximately $1,127 if its market capitalization of $15.99 billion surpasses Ethereum’s, which is around $250.99 billion. This would represent a 17.92x increase from current levels. In more extreme scenarios, with market euphoria at its peak, estimates place HYPE as high as $2,633, a gain of about 42x from current prices.

    Competition Intensifies

    Hyperliquid has been strengthening its market position as capital shifts from major assets like Bitcoin and Ethereum toward newer, high-growth protocols. HYPE’s recent performance reflects both the growing adoption of its DEX platform and a broader shift in liquidity across the crypto sector.

    A key driver behind the bullish momentum was the launch of spot HYPE ETFs by investment management firms Bitwise and 21Shares in May. These products have attracted millions of dollars in inflows, indicating steady institutional demand for HYPE amid increased derivatives activity.

    Earlier in the year, market volatility linked to the US-Iran war triggered record perpetual futures volume on Hyperliquid, pushing platform activity to new highs. Liquidity conditions also improved after Coinbase, the world’s largest crypto exchange, became the official USDC provider on Hyperliquid.

    Against this backdrop, Ethereum’s dominance is waning. The cryptocurrency’s price has struggled to maintain momentum, falling roughly 30% year-to-date. ETF flow data reflects this shift, with approximately $1 billion exiting Bitcoin and Ethereum products while XRP and HYPE funds recorded about $94 million in combined inflows.

  • Crypto Markets Plunge Amid Bearish Sentiment

    Crypto Markets Plunge Amid Bearish Sentiment

    Tuesday saw a significant downturn in the cryptocurrency market, with a broad sell-off impacting various altcoins. Zcash (ZEC) led the decline, dropping 11%, followed by World Liberty Financial’s WLFI, which fell 8%, and Ondo Finance (ONDO), down 7%.

    Bearish Sentiment Rises

    The losses occurred amid growing bearish sentiment among investors. Blockchain analytics firm Santiment noted that such sentiment has historically preceded price rebounds. Santiment highlighted the declines of Ondo, Zcash, WLFI, and DeXe, among others, in a post on X.

    Ondo Finance Faces Setback

    Ondo Finance’s drop came shortly after the death of its 32-year-old founder and CEO, Nathan Allman. The company announced that Ian De Bode, the longtime president, will take over as CEO. The token is currently trading near $0.41, representing a gain of approximately 9% over the past seven days.

    Zcash and WLFI Performance

    Zcash’s 11% single-day drop was the steepest among the mentioned assets. However, the decline was approximately 7.5% over the last 24 hours, with ZEC trading around $570. The asset is up 60% over the past month and nearly 970% over the past year. WLFI’s 8% dip added to the token’s recent struggles, having reached a new all-time low in late April after a 16% single-day crash. The token has also faced a controversial lock-up proposal, a lawsuit from Tron’s Justin Sun, and ongoing scrutiny over its ties to the Trump family.

    Other Tokens Show Gains

    Despite the losses, some tokens showed positive performance over the week. NEAR was up more than 55% over seven days, trading around $2.50, although it declined nearly 8% on Tuesday. Hyperliquid’s HYPE token also saw gains, increasing 25% according to Santiment’s data. RAIN was the week’s standout performer, reaching an all-time high of around $0.012 on Tuesday, with a weekly increase of almost 55% and a 24-hour increase of over 44%.

    Market Outlook

    Santiment’s data indicated that bearish expectations have been building for about 10 days. The firm noted that this collective caution has historically preceded price recoveries, as markets often move against the prevailing sentiment. However, traders will be watching to see if this pattern holds, especially with Bitcoin remaining below $77,000 and struggling to break above its 200-day moving average near $80,000.

  • Dogecoin’s Key Pattern Returns, Echoing 2021 Surge

    Dogecoin’s Key Pattern Returns, Echoing 2021 Surge

    Dogecoin Rally Setup Revived Amidst Technical Analysis

    Dogecoin has been trading around the $0.10 mark for several months. However, a new monthly chart shared by market analyst @TATrader_Alan is drawing comparisons to the pattern that preceded the cryptocurrency’s significant rally in 2021. The analyst highlights a recurring triangle formation that has appeared before each major Dogecoin expansion cycle. The current setup is now approaching the same breakout zone that historically triggered substantial upward momentum.

    Dogecoin Rally Setup Reappears

    The analyst’s latest monthly chart reveals a repeating formation observed across three distinct market cycles. In each instance, Dogecoin traded within a narrowing triangle structure for months before experiencing a sharp, vertical advance. The first instance occurred before the 2017 bull market, while the second preceded the massive 2021 breakout, which delivered gains exceeding 30,000% from cycle lows.

    The chart shows that both previous formations followed nearly identical patterns. Price gradually compressed between descending resistance and rising support lines before eventually breaking upward with force. Following the breakout, Dogecoin entered a rapid expansion phase characterized by large green monthly candles and increased momentum.

    The current structure appears to mirror those earlier conditions closely. Dogecoin has spent several years tightening within converging trendlines, with the price now positioned near the formation’s apex. According to the chart projection, this region historically marked the beginning of Dogecoin’s most significant advances.

    The pattern’s long-term timeframe is notable. Monthly structures often carry greater technical significance because they reflect broader investor positioning and multi-year market behavior rather than short-term volatility. Analysts tracking the setup believe the extended compression phase could amplify the intensity of any eventual breakout move if historical behavior repeats.

    Monthly Breakout Signals Growing Momentum

    The formation’s timing is also attracting attention because Dogecoin continues to hold near the psychologically important $0.10 level on the monthly chart. Despite broader market fluctuations, the asset has maintained support around that range while gradually pressing against descending resistance that has capped price action since the previous cycle peak.

    The analyst’s projection suggests the breakout zone has now been reached, mirroring the positioning seen before earlier rallies. On the chart, projected purple candles indicate a possible expansion phase that could push Dogecoin toward levels not seen since the previous bull market’s peak.

    Beyond the technical structure, market participants are also watching growing institutional involvement in the digital asset sector. Speculation surrounding crypto-based exchange-traded products, renewed meme coin activity, and increased retail participation have all contributed to improving sentiment around Dogecoin in recent months.

    While the chart does not guarantee another parabolic rally, the similarity between the current structure and the formations that preceded previous rallies has become difficult for traders to ignore. With Dogecoin now at another critical monthly inflection point, analysts believe the coming months could determine whether the meme coin will experience another historic rally.

  • XRP’s Trillion-Dollar Play Could Surge Price to $300+

    XRP’s Trillion-Dollar Play Could Surge Price to $300+

    CharuSan Reiterates Bullish XRP Prediction, Addressing Market Cap Concerns

    Crypto analyst CharuSan has again commented on his prediction that XRP could surge above $300, addressing concerns about the token’s potential market capitalization. He argues that the market cap metric is not a relevant factor for XRP’s price trajectory.

    Trillion-Dollar Markets as Catalyst

    In a post on X, CharuSan pointed to the vast sums of money in global Nostro/Vostro accounts, the foreign exchange markets, major banks, the Depository Trust & Clearing Corporation (DTCC), and institutional corporations as reasons why XRP could reach $300. He suggested that a bridge asset carrying this volume would need to reach a value of $10 trillion to prevent the system from becoming congested.

    The analyst emphasized that XRP is designed as an institutional bridge asset and liquidity tool, specifically engineered to facilitate large cross-border value transfers without slippage. He further explained that the market cap metric is more applicable to stocks and not to institutional bridge assets or liquidity tools like XRP. CharuSan believes that traditional financiers misunderstand this, dismissing an $8 to $10 trillion market cap as unrealistic. He clarified that market capitalization does not imply that all circulating coins will be cashed out at the current price; it is simply the unit price of the last transaction multiplied by the supply.

    CharuSan previously predicted that XRP would rally to $300 as banks adopt it for cross-border transactions. He explained that a high price is necessary to avoid bottlenecks and slippage during settlements. The analyst also cited the CLARITY Act as a potential catalyst for increased bank adoption of XRP.

    On-Chain Data Suggests XRP Could Be Undervalued

    On-chain analytics platform Santiment has also weighed in on XRP’s potential for a rebound. In an X post, they noted that the average XRP trader active in the past 30 days is down approximately 47%, with many selling at a loss. Santiment stated that the market value-to-realized value ratio (MVRV) historically averages out to 0%, making the current period an “extreme” zone for XRP.

    Santiment noted that XRP’s 30-day MVRV has reached its lowest level since December 2020, indicating that fear and frustration among traders have reached rare extremes. Historically, such conditions have preceded strong rebounds, suggesting a potential recovery for XRP. The platform added that this deeply negative MVRV zone creates conditions where even small positive catalysts could trigger significant price increases.

    As of the time of writing, the price of XRP is trading around $1.32, according to CoinMarketCap.

  • Mastercard Obtains New York BitLicense for Crypto Expansion

    Mastercard Obtains New York BitLicense for Crypto Expansion

    Mastercard Secures BitLicense in New York

    Mastercard announced Wednesday that it has obtained a BitLicense from the New York Department of Financial Services, signaling its commitment to the cryptocurrency sector and adherence to stringent regulatory standards.

    Regulatory Compliance a Priority

    The move underscores Mastercard’s emphasis on regulatory compliance within a rapidly evolving industry. The company stated in a blog post that the BitLicense is part of its long-term strategy to support stablecoins and tokenized deposits.

    “Clear regulatory frameworks play an important role in building trust and confidence,” said Jorn Lambert, Mastercard’s Chief Product Officer. “This approval underscores our focus on aligning innovation with regulatory expectations.”

    Mastercard noted that the New York Department of Financial Services requires crypto companies to adhere to regulations concerning consumer protection, cybersecurity, financial integrity, and operational resilience. The BitLicense framework, established in 2015, has influenced regulations adopted by other states.

    Strategic Expansion in the Crypto Space

    While the regulator’s rules were initially designed for crypto-focused firms, Mastercard’s efforts represent a strategic approach to innovation. The pace of adoption accelerated last year following the passage of the GENIUS Act, which incorporated stablecoins into federal law.

    Acquiring a BitLicense is known to be a challenging and costly process. However, Mastercard, which processes approximately $9.5 trillion in annual payments, has already invested significantly in stablecoins and related technologies.

    In March, Mastercard announced its planned acquisition of infrastructure firm BVNK for $1.8 billion, demonstrating its commitment to supporting businesses in sending, receiving, converting, and storing stablecoins globally.

    As fintech companies increasingly utilize stablecoins to modernize payments and treasury operations, Mastercard has been actively expanding its network, aiming to maintain its market dominance by connecting digital assets with traditional financial systems.

    Earlier this year, SoFi Technologies partnered with Mastercard, enabling the online bank’s stablecoin to be used across Mastercard’s global payments network. Additionally, Mastercard has collaborated with crypto-focused companies like MetaMask and MoonPay, allowing customers to use stablecoins at millions of merchant locations.