FTX 2.0 Upcoming, Multichain FUD, Worldcoin Raises Six Figures

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Top Stories This Week Binance Suspends Deposits for Bridged Tokens and Seeks Clarification from the Multichain Team

Crypto exchange Binance suspended deposits for 10 bridged tokens after days of uncertainty surrounding the Multichain protocol. Transactions on the cross-chain protocol have been delayed across multiple bridges over the past few days, with little information from the Multichain team on the ongoing issues. In a May 24 tweet, Multichain said some inter-chain routes were unavailable due to force majeure, noting that when service would be restored was unclear. Binance wasn’t the only company to take action amid the unexplained downtime, the Fantom Foundation withdrew 449,740 MULTI ($2.4 million) of liquidity on SushiSwap. The MULTI token plunged during the week. On Twitter, rumors circulated that the Multichains team had been arrested by Chinese police, with $1.5 billion in smart contract funds under the control of authorities.

FTX 2.0 launching soon? Court filing shows restart plan underway

Stimulus plans for bankrupt crypto exchanges FTX may soon become a reality. According to court filings, FTX’s new management has had a series of meetings with creditors and debtors over the past month, reviewing plans to restart the exchange and finalizing the materials needed to restart it as a FTX 2.0. The documents also suggest that FTX may soon enter a bidding process. Previous reports have pointed out that a restart could take place as early as 2024, as the exchange has already recovered over $7 billion in assets.

Sam Altmans Worldcoin Gets $115M for Decentralized ID

The bear market didn’t stop Worldcoin from raising $115 million this week in a Series C round led by Blockchain Capital. The funds will be used to support its decentralized World ID and recently released gasless crypto wallet, World App. The project was co-founded by OpenAI CEO Sam Altman and built by the developers of Tools for Humanity to solve problems emerging from the exponential complexity of artificial intelligence, such as proving personality. Worldcoin’s token, WLD, is not available in the United States and some other countries.

Fahrenheit wins bid to acquire assets from crypto lender Celsius

Crypto consortium Fahrenheit has won the bidding war for insolvent crypto lender Celsius Network. The offering includes Celsius assets previously valued at nearly $2 billion, including an institutional loan portfolio, staked cryptocurrencies, a mining unit, alternative assets and over $450 million in liquid cryptocurrency . Behind the consortium are venture capital firm Arrington Capital and crypto-miner US Bitcoin Corp. Although Celsius and its creditors have accepted the offer, regulatory approval is still required to complete the acquisition. Celsius filed for bankruptcy protection in July 2022, contributing to a prolonged crypto winter in the industry.

Earlier this week, the crypto community celebrated the 13th anniversary of the first Bitcoin transaction when developer Laszlo Hanyecz made the first documented purchase of property with BTC. The exchange involved 10,000 BTC worth $41 at the time and two pizzas from a local restaurant in Florida. The milestone has turned into an annual celebration for the crypto space, with members of the community remembering how far the industry has come since the transaction. More than a decade later, the pioneering cryptocurrency network is facing a new wave of disruption thanks to the advent of ordinals, highlighting the need for developers and capital to build Layer 2 solutions.

Winners and losers

At the end of the week, Bitcoin (BTC) is at $26,737, Ether (ETH) at $1,831, and XRP at $0.46. The total market capitalization is $1.12 trillion, according to CoinMarketCap.

Among the 100 largest cryptocurrencies, the top three altcoin gainers of the week are Render Token (RNDR) at 16.86%, Kava (KAVA) at 10.71% and Huobi Token (HT) at 9.44 %.

The top three altcoin losers for the week are GMX (GMX) at -13.35%, Sui (SUI) at -12.38%, and Fantom (FTM) -11.00%.

For more information on crypto prices, be sure to read Cointelegraphs market analysis.

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Most Memorable Quotes

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Gary Vaynerchuck, crypto entrepreneur

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Vitalik Buterin, co-founder of Ethereum

You have every right to make Bitcoin. The only reason these people in Washington don’t like it is because they don’t control it.

Ron DeSantis, Governor of Florida

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Sabin Dima, CEO of Humans.ai

Prediction of the week

Bitcoin Holds a Realized Price of $20,000 as Analyst Eyes Big Moves Ahead

Bitcoin is at a 10-week low, but a longtime analyst tells investors to ignore the panic.

In a May 25 Twitter update, Philip Swift, creator of data resource LookIntoBitcoin and co-founder of trading suite DecenTrader, observed a BTC price breakout still in progress. Lots of panic in the market today, Swift summed up.

BTC/USD is currently testing the mettle of key moving averages amid bearish trader targets extending to $25,000 and below, Cointelegraph reported. Even Swift thinks Bitcoin could still rally back to $20,000 in the coming months, though he remains bullish on longer timeframes.

Zooming out, bitcoin is performing well and as expected for this stage of the cycle. A clear break of BTC above the realized price, he added, referring to the overall price at which BTC supply last moved. It currently sits at just over $20,000, according to LookIntoBitcoin.

FUD of the Week DeFi WDZD Swap Protocol Exploited for $1.1M: CertiK

DeFi protocol WDZD Swap was recently mined for $1.1 million in Binance-Pegged Ether. According to a report by blockchain security firm CertiK, a known exploit tagged Fake_Phishing750 by BSCScan created the contract which then drained the protocol tokens. Once the malicious contract was created, the attacker used it to perform nine transactions that drained funds from the Swap LP contract where the ETH had been deposited. Fake_Phishing750 was responsible for an attack against another protocol called Swap X, CertiK said.

ETH can be both a security and a commodity, says former CFTC commissioner

Ethereum’s native token, Ether, can be both a commodity and a security, former U.S. Commodities Futures Trading Commission commissioner Dan Berkovitz has argued. The CFTC regulates commodity futures and swaps, while the SEC only regulates securities. However, if something is a commodity in the eyes of the CFTC as well as a security by the SEC’s definition, it’s entirely possible that both regulators have jurisdiction over it.

Binance denies fund mismanagement claims, calls it a conspiracy theory

Binance has denied allegations of mishandling customer funds, in response to a Reuters report claiming the crypto exchange mixed customer funds with company revenue. According to Reuters sources, Binance may have mixed billions of dollars in corporate revenue and customer funds between 2020 and 2021, with the majority of the mixing taking place in accounts held at the now bankrupt Silvergate Bank. On Twitter, Binance communications chief Patrick Hillmann called the 1,000-word report conspiracy theories.

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DeFi Dad has dabbled in everything from selling cameras to delivering food, but it’s his crypto insights that have earned him 152,100 Twitter followers.

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Decentralized ledger technology is arguably everything that AI is not: transparent, traceable, reliable, and tamper-proof. Could this compensate for the opacity of AI black box solutions?

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Cointelegraph Magazine writers and reporters contributed to this article.

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