Crypto news roundup: Former Mt. Gox CEO Mark Karpeles assures there's no immediate plan to sell the company's Bitcoin stake, which could disrupt the market. Meanwhile, Hong Kong regulators are set to oust all unlicensed virtual asset trading platforms by June 1. Despite China's Bitcoin ban, Hong Kong is praised as a "sandbox" for the development of Web3 and China's digital economy. In other news, Sinohope, a crypto investment firm, recovers 108% of deposits from the bankrupt exchange FTX, and Binance reportedly sells Gopax creditor claims at a steep discount.

Ripple CEO Brad Garlinghouse predicts an XRP exchange-traded fund (ETF) is on the horizon, in a recent interview at Consensus 2024. He also anticipates other crypto assets will follow suit, pushing the crypto market towards a $5 trillion valuation. Meanwhile, Blackrock CEO Larry Fink sparked speculation of a potential XRP ETF from the world's largest asset management firm, despite not confirming the rumors. Crypto ETFs are crucial for investors, especially institutions, as they provide exposure to cryptocurrencies without the need for direct asset holding, overcoming technical and regulatory barriers.

Despite previous technical issues, the Solana blockchain is thriving, with a record 55 million new addresses created in just two months. PayPal has recently integrated its stablecoin, PYUSD, into Solana, and LayerZero has added Solana to its network of over 70 chains. Meanwhile, BlackRock is adding shares of its Bitcoin ETF to its income and bond funds, and Semler Scientific's stock price has soared by 30% after adopting Bitcoin as its primary treasury reserve asset. Riot Platforms has proposed a $950M buyout for Bitfarms, and ARK Invest has invested $60M into Elon Musk's AI startup, xAI.

Crypto-friendly Senator Cynthia Lummis has urged President Biden not to veto the Congressional repeal of the SEC's contentious Staff Accounting Bulletin-121 (SAB-121). Lummis criticized the SEC's issuance of the guidance, arguing it bypassed necessary procedures. Despite Biden's previous threat to veto the repeal, changing attitudes towards crypto in the White House may offer hope. Following Trump's pro-crypto comments, the Biden administration has sought input from blockchain firms for future crypto policy. The crypto community now eagerly awaits Biden's decision ahead of the June 3 deadline.

In the world of decentralized finance (DeFi), memecoins are the new trend, with celebrities like pop star Iggy Azalea launching their own. Azalea has a unique anti-scam strategy: she'll burn her own coins whenever a celebrity coin is identified as a scam. Meanwhile, a trader who lost $6.91 million worth of Ether (ETH) seems to have received a large portion back from scammers. On a brighter note, a report from Immunefi reveals that crypto losses linked to hacks and frauds dropped by 12% in May. The top 100 DeFi tokens had a mixed week, with most trading in green and the total value locked in DeFi contracts staying above $100 billion.

In a series of AI-related news, a hacker named Pliny the Prompter has jailbroken GPT-4o, leading to a violation of OpenAI's policies. Meanwhile, the rapid rise in value of AI stocks like Nvidia, Microsoft, Apple, and Alphabet has sparked concerns of an AI stock bubble. In India, politicians are using AI-generated versions of themselves for campaigning, with over 50 million voice-cloned political calls made in just two months. GPT-4 has also shown its prowess in predicting company earnings and picking stocks, outperforming human analysts. Elsewhere, startup Opyl's machine learning tool, trialkey.ai, can predict the outcomes of clinical trials with over 90% accuracy, and Caristo Diagnostics' CaRi-Heart AI tech can predict heart attacks up to a decade in advance. Finally, a poll found that 20% of U.S. adults believe some AIs are already sentient.

Bitcoin's price has dipped 6.7%, settling at $67,100. Despite this, Bitcoin is only 8.7% below its all-time high. The recent inflows into Bitcoin spot exchange-traded funds (ETFs) have not sparked more bullish sentiment, leaving investors puzzled. Data shows $1.96 billion in net inflows into U.S. spot Bitcoin ETFs since May 15. However, Bitcoin withdrawal from exchanges has dropped to its lowest level since March 2018. This could be due to the movement of 141,686 BTC by the bankrupt Japanese exchange Mt. Gox, indicating an imminent asset distribution to its creditors. Regulatory uncertainty in the U.S. and ongoing legal challenges are also factors affecting Bitcoin's price.

The SEC's process for approving spot Ethereum (ETH) exchange-traded funds (ETFs) is causing a stir, especially around the inclusion of staking in the filings. While some see this as a compromise between product providers and the securities watchdog, others view it as the regulator's way of keeping a back door open for further scrutiny. The debate revolves around whether staking should be considered an investment contract and thus regulated as a security. Despite the controversy, once the ETFs begin trading, it's expected to boost ETH prices and potentially kick off the much-anticipated "altseason". However, the future regulatory attitude towards crypto remains uncertain due to the upcoming presidential election.

In a surprising turn of events, Donald Trump, found guilty on all 34 counts of falsifying records, has positioned himself as the pro-crypto U.S. presidential candidate. This comes after a significant political shift in U.S. policy toward crypto regulation in May 2024. Trump's new stance includes promises to make the U.S. a leader in the crypto field, support self-custody rights, and block the creation of a central bank digital currency. However, Trump's conviction raises questions about his presidential candidacy and the future of U.S. crypto policy. Despite the conviction, Trump could technically continue as President, as the U.S. Constitution does not demand a clean criminal record.

Renowned trader Peter Brandt predicts a 230% surge for Bitcoin against gold. Brandt suggests the gold to BTC ratio will fluctuate for the next 12-18 months before reaching a new high of 100 oz. of gold per BTC. Bitcoin has been gaining ground against gold since its inception, overtaking the precious metal in price in 2017. Despite the bear market of 2018-2019 and the COVID-19 pandemic, Bitcoin has managed to stay above the price of gold. As of May 2024, it would take roughly 29 ounces of gold to purchase one Bitcoin.

Bitcoin (BTC) has been range-bound for several days, indicating a tug-of-war between bulls and bears. Trading firm Mosaic Asset suggests that "loosening financial conditions" could trigger a Bitcoin breakout. Meanwhile, CryptoQuant CEO Ki Young Ju noted a trend similar to 2020, with "$1B added daily to new whale wallets." Despite no breakout, Bitcoin has seen an 11% rally in May, its first positive close after three years of negative performance in May. This momentum could extend the bullish performance into June. Other cryptocurrencies like Ether (ETH), BNB, Solana (SOL), XRP, Dogecoin (DOGE), Toncoin (TON), Shiba Inu (SHIB), Cardano (ADA), and Avalanche (AVAX) are also seeing significant movements.

Ether (ETH) is outpacing Bitcoin (BTC) in the crypto market, with a 30% surge since mid-May compared to BTC's 9% gain. This performance is attributed to the anticipation of the approval of spot Ethereum ETFs in the US, increased network activity, and the launch of spot Ethereum ETFs. Over the last 10 days, ETH has risen 23%, while BTC has only climbed 2% in the last 30 days. The ETH/BTC ratio also began ascending on May 17, reaching a two-week high of $0.05854 on May 23. Ethereum's network activity and scaling solutions have also contributed to its performance, with a 7.75% increase in transaction volume among top Ethereum DApps over the past week.

Bitcoin (BTC) is taking a leaf out of Ethereum's (ETH) playbook as it gears up for potential exponential growth. With the introduction of layer-2s, native tokens, NFTs, and DeFi protocols, Bitcoin is poised for a surge in active users, total value locked (TVL), and active wallets. The key to this growth is interoperability, a feature that has been a major selling point for Ethereum. Bitcoin developers are urged to adopt universal standards that will allow value to flow freely between chains. If successful, Bitcoin could become the world's largest multi-token ecosystem. Bitcoin's current TVL of $1.15 billion is reminiscent of Ethereum's standing four years ago, suggesting a similar growth trajectory may be on the horizon.

Crypto experts from the Chicago Mercantile Exchange (CME), TradingView, and TJM Institutional Services believe a spot Bitcoin ETF could boost Bitcoin's price to new highs. TradingView's Pierce Crosby says ETFs offer a low-fee way for investors to quickly buy and sell Bitcoin. CME's Giovanni Vicisoso suggests the liquidity and volume growth of CME contracts could aid Bitcoin's price discovery. Meanwhile, TJM's Jim Iuorio warns that recent disappointing U.S. Treasury auctions could force the Federal Reserve to cut rates and ease monetary policy, potentially benefiting Bitcoin.

Crypto exchange DMM has confirmed a hack that resulted in the loss of over $305 million in Bitcoin (BTC). The attack, which took place on May 30, was first flagged by analytics platform Whale Alert. DMM has ensured that all user deposits will be fully guaranteed, with measures already in place to prevent further unauthorized leaks. In the meantime, the exchange has suspended withdrawals, new account openings, and new orders. This incident adds to a growing list of crypto exchange hacks, highlighting the persistent security challenges in the sector.

PayPal has introduced its own stablecoin, PayPal USD (PYUSD), aiming to simplify digital payments, especially within the blockchain ecosystem. Available to eligible US customers, PYUSD offers a seamless way to exchange between the stablecoin and US dollars directly within the PayPal platform. PYUSD is pegged to the US dollar and fully backed by USD deposits, short-term US Treasurys, and similar cash equivalents. Users can buy, sell, and transfer PYUSD through the PayPal app or website, and use it for online purchases at supporting merchants, send to compatible cryptocurrency wallets, or convert to other cryptocurrencies supported by PayPal. PYUSD is issued and managed by Paxos Trust Company, a regulated blockchain infrastructure firm.

The European Securities and Markets Authority (ESMA) has emphasized the need for banks and investment firms to act in their clients' best interests when using artificial intelligence (AI). In a recent public statement, ESMA outlined how financial services companies in the EU can responsibly use AI. The statement stressed that these institutions will be legally responsible for protecting consumers, regardless of whether decisions are made by humans or AI tools. This applies to AI tools developed or adopted by the financial institutions themselves, or third-party AI services.

The U.S. Securities and Exchange Commission's approval of eight spot Ethereum ETFs on May 23 surprisingly had little impact on Ether's price. Despite a wave of positive sentiment, a consistent bull run has yet to emerge. Concerns about Grayscale's Ethereum Trust (ETHE), which manages $11 billion in funds, have become a significant factor influencing the price action. Experts predict major outflows from ETHE to the new ETF due to the ETF’s higher liquidity, narrower spreads, and lower fees. However, they also believe that in the long term, the ETH ETF adoption could drive prices higher due to increased demand.

Crypto tokens worth nearly $875 million are set to hit the market in June as vesting periods for over 30 blockchain projects expire. The largest unlocks are from Aptos (APT), Arbitrum (ARB), Starknet (STRK), and Sui (SUI). Vesting is a common practice to prevent early investors or team members from dumping their tokens, which could cause a market decline. Arbitrum will unlock 92.65 million ARB tokens worth $105.6 million on June 16. Aptos will release 11.1 million APT tokens worth $102.6 million in June. Starknet and Sui will also unlock millions in tokens.

Crypto wallets, essential for storing and managing digital assets, don't physically hold cryptocurrencies but serve as entry points to the blockchain, storing cryptographic keys and confirming ownership. Wallets use public and private keys, with the public key acting like a bank account number and the private key functioning as a password. Wallets can be 'hot' (software) or 'cold' (hardware). Hot wallets, including web, mobile, and desktop wallets, offer quick access to funds but are vulnerable to cyber threats. Cold wallets, such as hardware and paper wallets, store assets offline, offering better protection. Users should consider security, accessibility, supported cryptocurrencies, and cost when choosing a wallet. Future wallet technologies may include quantum-resistant encryption, multisignature solutions, and decentralized identity.