The U.S. Treasury has sanctioned two networks linked to the Sinaloa Cartel over allegations that they used cryptocurrency transactions to move fentanyl trafficking proceeds.

According to the U.S. Department of the Treasury, the sanctions announced Wednesday were carried out through a coordinated operation led by the Homeland Security Task Force with support from the Drug Enforcement Administration.

Treasury Secretary Scott Bessent said the administration would continue targeting cartel-linked financial operations tied to fentanyl trafficking. In a statement released by the Treasury, Bessent said the government would not allow “narco-terrorists” to use financial networks to move drug-related proceeds into the United States.

Among those added to the sanctions list was Armando de Jesus Ojeda Aviles, whom the Treasury accused of helping convert cash into cryptocurrency on behalf of the Sinaloa Cartel. The department also identified Jesus Alonso Aispuro Felix as an associate allegedly involved in transferring drug trafficking proceeds through blockchain-based transactions.

At the same time, the Treasury attached six Ethereum wallet addresses to the sanctions designation. Five of those addresses were linked to Ojeda Aviles, according to the department’s release.

Blockchain activity tied to the listed wallets showed limited recent movement. Data referenced in the Treasury announcement indicated that five of the six Ethereum addresses had remained inactive for years. One address ending in “e27cb,” however, reportedly sent $894 worth of Tether’s USDT stablecoin on April 27 after more than a year without recorded activity.

Treasury expands cartel-linked crypto enforcement

Treasury officials said the sanctions were issued under two executive orders focused on combating illicit drug production and organizations designated as terrorists or supporters of terrorism.

In its statement, the Treasury described the Sinaloa Cartel as a Foreign Terrorist Organization responsible for trafficking significant quantities of fentanyl into the United States. The department said the drug continues to contribute to tens of thousands of deaths annually across the country.

Federal agencies have previously linked cryptocurrency networks to cartel financing operations across Latin America. A July 2025 report from the U.S. Department of Justice said the DEA had seized more than $10 million in crypto assets connected to the Sinaloa Cartel.

Elsewhere in the region, Brazilian authorities have also investigated organized crime groups accused of using digital assets to launder illicit funds. In August 2024, civil police in São Paulo dismantled a money laundering operation allegedly tied to the Primeiro Comando da Capital, or PCC, one of Brazil’s largest criminal gangs.

According to CNN Brasil, investigators said the group operated a cryptocurrency exchange that handled nearly 500 million Brazilian reais, or about $88.6 million at the time. Authorities reportedly seized 55 million reais in checks during raids linked to the investigation, while police arrested 13 individuals connected to the scheme.

Earlier investigations in Brazil pointed to similar patterns. In June 2023, the country’s Special Department of Federal Revenue raided six cryptocurrency exchanges accused of laundering roughly $380 million in illicit funds. A separate federal police operation in 2024 dismantled another crypto-linked laundering network that authorities valued at about $2.6 billion.

A 2023 report cited by regional investigators had already identified the growing use of cryptocurrency among organized crime groups in Latin America, including the Sinaloa Cartel and MS-13. Despite those cases, crypto adoption in Brazil continued to rise, with local trading volumes climbing 30% in 2024 while regulators advanced digital asset oversight measures.

For the past two decades, the internet has increasingly shifted toward a subscription-driven economy. From software and entertainment to cloud storage and productivity tools, users are now conditioned to pay recurring monthly fees simply to access digital services. The Software-as-a-Service (SaaS) model became one of the dominant business frameworks of the modern web, creating predictable revenue streams for companies but also locking users into ecosystems they rarely control.

Decentralized Finance (DeFi) introduces a radically different possibility: a financial system where infrastructure is open, services are composable, and participation is based on ownership and usage rather than perpetual subscription payments.

As blockchain networks mature, DeFi may become the foundation of a broader subscription-free digital economy.

The Rise of Subscription Fatigue

The modern internet is increasingly expensive to maintain as a consumer.

Users pay subscriptions for:

• cloud software
• streaming platforms
• productivity tools
• payment processors
• trading platforms
• banking services
• premium APIs

While subscriptions create stable cash flow for companies, they also create friction for users. Over time, the internet has evolved into a fragmented collection of recurring payments where access is temporary and conditional.

In traditional systems, users rarely own the platforms they depend on. They rent access.

This model creates several long-term problems:

• centralized control over infrastructure
• limited user ownership
• increasing platform lock-in
• rising costs for digital participation
• monetization through advertising and data extraction

DeFi challenges these assumptions by rethinking how financial infrastructure itself can operate.

Open Financial Rails Instead of Closed Platforms

At its core, DeFi is not simply an alternative banking system. It is an open financial coordination layer built on programmable blockchains.

Traditional financial services rely on closed networks:

• banks control accounts
• payment processors control transfers
• brokerages control market access
• Software providers control the infrastructure

DeFi replaces these siloed systems with open financial rails that anyone can access.

Protocols operating on networks such as Ethereum, Solana, and Avalanche allow developers to build financial applications without needing permission from centralized intermediaries.

This changes the economics of digital finance.

Instead of companies charging recurring subscription fees for access to financial services, protocols can monetize through:

• transaction fees
• liquidity incentives
• network participation
• protocol-owned assets
• optional premium tooling

The infrastructure itself becomes publicly accessible while monetization occurs at the usage layer.

The Emergence of Pay-Per-Use Economics

One of DeFi’s most important innovations is the shift from subscription models toward pay-per-use economics.

In traditional SaaS:

• Users pay whether they actively use the service or not
• Access disappears when payments stop
• Pricing is determined centrally

In DeFi:

• users interact directly with protocols
• Fees are often proportional to actual activity
• Access remains open to anyone with a wallet

This model resembles internet-native utility infrastructure more than corporate software licensing.

For example:

• Decentralized exchanges charge trading fees only when trades occur
• Lending protocols generate yield through borrowing demand
• cross-chain protocols monetize through routing activity
• stablecoin systems earn from settlement flows

Users pay for economic activity rather than platform membership.

This distinction matters because it lowers barriers to participation while creating more efficient capital allocation across networks.

Protocol-Owned Infrastructure Changes Incentives

A major weakness of traditional digital finance is that infrastructure ownership remains concentrated among corporations.

DeFi introduces the concept of protocol-owned infrastructure:

• liquidity pools owned by protocols
• decentralized validator networks
• community-governed treasuries
• shared execution environments
• open-source financial primitives

Instead of maximizing shareholder extraction, many DeFi systems attempt to align incentives between:

• users
• liquidity providers
• developers
• token holders
• network participants

This does not eliminate profit motives, but it redistributes how value flows through the ecosystem.

In many cases, users are not simply customers. They are stakeholders.

That distinction could reshape the future relationship between individuals and digital platforms.

Ownership Versus Subscription

The philosophical divide between traditional finance and DeFi may ultimately center around a simple question:

Should users rent digital access, or should they own part of the systems they use?

In Web2 platforms:

• Users generate value
• Corporations capture most of the upside
• Participation rarely translates into ownership

DeFi experiments with a different structure:

• governance tokens
• community treasuries
• revenue-sharing mechanisms
• decentralized voting systems
• permissionless participation

While governance systems remain imperfect, the broader shift is significant.

Ownership transforms users from passive consumers into active economic participants.

This is one reason why many DeFi communities resemble digital economies rather than traditional customer bases.

Internet-Native Finance

The internet was originally designed as an open communication network. DeFi extends that philosophy into financial infrastructure.

Internet-native finance operates differently from legacy banking systems because it is:

• global by default
• interoperable
• programmable
• continuously accessible
• composable across applications

A developer in the Philippines can integrate decentralized liquidity, lending, payments, and settlement into an application without negotiating with banks or payment processors.

This dramatically reduces coordination costs.

As these systems improve in scalability and user experience, financial services may increasingly resemble open internet protocols rather than private corporate products.

The implications extend far beyond crypto trading.

Potential applications include:

• global creator economies
• machine-to-machine payments
• decentralized AI marketplaces
• tokenized real-world assets
• borderless business infrastructure
• autonomous digital organizations

DeFi may eventually function as the invisible financial layer powering internet-native economic activity.

Challenges Still Facing DeFi

Despite its potential, DeFi remains early and highly experimental.

Several major obstacles still limit adoption:

User Experience Complexity

Wallet management, gas fees, private keys, and cross-chain interactions remain difficult for mainstream users.

Security Risks

Smart contract exploits and protocol failures continue to undermine trust across the industry.

Regulatory Uncertainty

Governments are still determining how decentralized systems fit into existing legal frameworks.

Scalability Constraints

Many blockchain ecosystems still struggle with throughput, fragmentation, and interoperability.

Sustainable Monetization

Not all DeFi protocols have viable long-term economic models.

The transition toward subscription-free finance will require infrastructure that is not only decentralized but also reliable, intuitive, and economically sustainable.

The Bigger Economic Shift

The deeper significance of DeFi may not be speculative assets or token prices.

Its real importance could lie in redefining how digital economies are structured.

The current internet economy is dominated by:

• rented access
• platform dependency
• centralized monetization
• recurring subscriptions

DeFi proposes an alternative:

• open infrastructure
• composable services
• user ownership
• usage-based economics
• permissionless participation

If these systems mature successfully, they could reduce reliance on centralized financial gatekeepers and create a more open framework for global economic coordination.

Conclusion

DeFi is often described as an alternative financial system, but its broader impact may be far larger.

It challenges the idea that digital infrastructure must always operate through subscription-based access controlled by centralized companies.

By combining open financial rails, protocol-owned infrastructure, and internet-native economics, DeFi introduces a model where users interact directly with transparent systems rather than renting access from intermediaries.

The long-term outcome remains uncertain. Many protocols will fail, regulations will evolve, and infrastructure must continue improving.

Yet the underlying concept is powerful:

Finance may become less about permissioned platforms and more about open networks.

If that transition succeeds, DeFi could become one of the foundational layers of a more open digital economy — one where access, ownership, and economic participation are no longer restricted to centralized institutions.

Key Highlights

• Alphabet’s Google is committing $15 billion to Missouri infrastructure development, featuring a major data center facility in New Florence within Montgomery County.
• The development will generate thousands of construction positions during the building phase and hundreds of long-term employment opportunities.
• Google has secured more than 1 gigawatt of fresh power generation in Missouri, with an additional 500 megawatts being developed alongside utility provider Ameren.
• According to 2025 Missouri law, Google must fund 100% of electricity and infrastructure expenses associated with the data center operations.
• A new $20 million Energy Impact Fund will be established by Google to assist in lowering residential energy expenses across nearby counties.

Google, a subsidiary of Alphabet (GOOGL), has announced a $15 billion investment in Missouri infrastructure, marking one of the most substantial technology investments the state has ever witnessed.

Alphabet Inc., GOOGL

The investment focuses on constructing a cutting-edge data center in New Florence, located in Montgomery County. At the time of the public announcement, GOOGL stock experienced a 0.32% increase.

The development will create thousands of employment opportunities for construction workers throughout the building period. After completion, the facility is expected to maintain hundreds of full-time staff positions.

Missouri Governor Mike Kehoe praised the announcement, noting it reinforces the state’s emerging position as a major destination for technology and innovation investments. In recent years, Missouri has been steadily attracting substantial infrastructure projects.

Google President and Chief Investment Officer Ruth Porat indicated the company intends to combine the infrastructure expansion with workforce training initiatives and energy cost reduction programs.

Regarding power arrangements, Google has already secured contracts for over 1 gigawatt of additional generation capacity throughout Missouri. The company is collaborating with Ameren to develop another 500 megawatts of capacity.

Martin Lyons, Ameren’s Chairman and CEO, characterized the project as the most significant economic development undertaking in the utility’s Missouri operations — a notable declaration considering Ameren’s extensive presence throughout the region.

According to Missouri legislation enacted in 2025, Google must assume 100% of the electricity costs and infrastructure investments directly tied to the data center’s functions. This requirement protects local utility customers from shouldering these expenses.

$20 Million Fund for Community Energy Relief

In conjunction with the infrastructure investment, Google is establishing a $20 million Energy Impact Fund focused on communities within Montgomery, Clay, and Platte counties.

A portion of these funds will support residential weatherization and energy efficiency improvements administered through the North East Community Action Corporation. The remaining resources will finance construction apprenticeship programs and skilled trades education initiatives throughout Missouri.

The data center design prioritizes water conservation. Google states the Montgomery County installation will incorporate sophisticated air-cooling technologies, limiting water usage primarily to standard non-industrial applications such as kitchen facilities.

Artificial Intelligence Fueling Infrastructure Expansion

The magnitude of this investment demonstrates the escalating power and computing requirements driven by artificial intelligence technologies. Major cloud providers — Google, Microsoft, Amazon, and Meta — have been allocating billions toward data center infrastructure throughout the United States.

Utility companies across the Midwest and Southeast regions have reported increased electricity demand projections directly attributed to this infrastructure expansion.

Google’s Missouri investment represents part of the broader competition to establish computing capacity before market demand exceeds available supply.

Ameren’s Lyons reaffirmed that this project stands as the largest economic development initiative in the utility’s Missouri operational history, emphasizing the facility’s substantial scale once it reaches full operational capacity.

Key Highlights

• SpaceX submitted its S-1 registration statement to the SEC, pursuing a valuation reaching $1.8 trillion
• The Starlink division delivered $11.4 billion in sales during 2025, representing roughly 50% growth compared to the prior year
• SpaceXAI and xAI operations recorded a $6.36 billion operating deficit in 2025, offsetting gains elsewhere
• Investment in Starship development has exceeded $15 billion, surpassing initial projections
• Elon Musk controls approximately 42% of SpaceX equity; a successful offering could elevate his wealth beyond $1 trillion

SpaceX has submitted its S-1 registration document to the Securities and Exchange Commission, formally launching its journey toward becoming a publicly traded entity on the Nasdaq exchange with the ticker symbol SPCX. The investor roadshow is scheduled to commence on June 5.

The aerospace manufacturer recorded $18.67 billion in total sales during 2025, while simultaneously reporting a net deficit of $4.9 billion. The opening quarter of 2026 showed $4.69 billion in revenue alongside a $4.3 billion net loss.

SpaceX maintains $102 billion in total assets against $60.5 billion in outstanding liabilities.

The organization is pursuing a market capitalization of up to $1.8 trillion, positioning it as potentially the most significant initial public offering in American financial history.

Elon Musk maintains ownership of approximately 42% of the company. Should SpaceX achieve a $1.6 trillion market value, his holdings alone would propel his personal wealth beyond the $1 trillion threshold, establishing him as humanity’s first trillionaire.

Starlink Powers Financial Performance

The Connectivity division, predominantly composed of Starlink operations, represents the primary revenue driver. This segment delivered $11.39 billion in sales throughout 2025, marking nearly 50% annual expansion, while generating $4.42 billion in operating profit.

During the first quarter of 2026, Starlink alone produced $3.26 billion in revenue with $1.19 billion in operating earnings.

As of March 2026, SpaceX maintained more than 9,600 satellites in orbital deployment serving 10.3 million paying customers.

The launch services operation, designated as the Space segment, contributed $4.09 billion in revenue throughout 2025 but operated at a $657 million deficit.

SpaceX has committed over $15 billion toward Starship development, its advanced heavy-lift launch vehicle, beyond original cost estimates. The Starship program is preparing for its twelfth test flight this week.

Artificial Intelligence Operations Drain Resources

The artificial intelligence division, designated as SpaceXAI and incorporating xAI technology, continues burning through capital rapidly. This unit recorded a $6.36 billion operating loss during 2025 and accumulated an additional $2.47 billion deficit in Q1 2026 alone.

Musk has indicated intentions to eliminate xAI as a separate entity and integrate AI capabilities directly under SpaceX corporate structure.

The registration document revealed that Anthropic, creator of the Claude AI assistant, has committed to $15 billion in annual payments for utilizing data center infrastructure connected to xAI facilities.

SpaceX and Tesla unveiled Terafab, a collaborative initiative focused on establishing internal semiconductor manufacturing capabilities to supply SpaceX satellite systems, Tesla automotive platforms, and xAI computing requirements.

The IPO documentation highlights numerous legal exposures, including litigation claiming Grok, xAI’s conversational AI system, enabled deepfake creation, along with intellectual property disputes, European Union content regulation proceedings, and cybersecurity breach allegations.

The forthcoming roadshow will provide SpaceX and its investment banking partners opportunity to present the offering to major institutional capital allocators before final pricing determination and commencement of public trading.

Fundamental Background

On 14–15 May, a high-level US–China summit took place in Beijing, where both sides discussed the potential easing of trade tensions and certain mutual concessions. Against a backdrop of positive expectations, the S&P 500 closed above 7,500 points for the first time, while the Dow Jones returned to the psychologically significant 50,000 mark.

At the same time, markets continue to feel pressure from US debt-related risks: the country’s credit rating remains below the highest tier, while the growing federal budget deficit and accumulated debt burden are increasing investors’ sensitivity to fiscal risks. The combination of trade optimism and budgetary vulnerabilities is creating a mixed and more volatile fundamental backdrop for the S&P 500.

Technical Picture

Since March 2026, the S&P 500 has remained in a medium-term uptrend, and between 29 April and 14 May it formed a new trending leg within the broader trend, reaching a peak around 7,520. The trend was subsequently broken, while trading volume increased noticeably, signalling heightened market participation. As a result of the standoff between equally matched buyers and sellers, the index has shifted into sideways movement and is currently determining its future direction.

The POC zone within the profile is concentrated around 7,385–7,390 — this is where the main area of confrontation is forming.

At present, the price remains above this zone (POC), but below the upper profile boundary at 7,425. Should the price resume its trend movement, the red resistance level at 7,455 may act as a limiting factor. The green support level at 7,345 remains a potential reference point should quotations move below the profile. RSI + MAs currently show readings of 51, 46 and 51 — the oscillator indicators remain in neutral territory, with no clearly defined directional momentum.

Key Takeaways

The index has completed its short-term bullish impulse and moved into sideways consolidation. RSI readings near neutral levels, without a pronounced directional impulse, reflect the current balance in the market — investors are weighing uncertainty surrounding trade negotiations against the backdrop of continued sensitivity to fiscal risks.

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This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

MAPO, the native token of Map Protocol, has collapsed by 96% after attackers exploited the Butter Network cross-chain bridge to mint an enormous amount of unauthorized tokens.

According to blockchain security firm Blockaid, the attacker created a quadrillion MAPO tokens through a flaw in the bridge’s Solidity contract layer before dumping roughly 1 billion tokens into Uniswap liquidity pools. 

The sales drained around 52 ETH, valued at nearly $180,000, while the attacker continued holding close to a trillion MAPO tokens that could still threaten other liquidity pools and exchange markets.

CoinGecko data showed MAPO falling from about $0.003 to nearly $0.0001 within hours as the exploit overwhelmed the token’s legitimate circulating supply.

Map Protocol later confirmed that the issue originated from the Solidity contract implementation rather than compromised keys or failures in its light client infrastructure. The project said it had paused the mainnet and started a migration process while the investigation remains ongoing.

In a follow-up statement, the team said a new contract address and asset snapshot timeline would be announced separately. Tokens controlled by attacker-linked wallets would be excluded from future conversion events and invalidated during the migration process, according to the project.

Forged retry message triggered unauthorized mint

Additional analysis from Blockaid showed the attacker first submitted a legitimate oracle multisig-signed message before deploying a malicious contract at a targeted address. Afterward, the attacker resent what appeared to be an identical “retry” message, although the payload had been modified.

Because the bridge validated the manipulated retry request as authentic, the protocol executed the unauthorized mint and released the newly created MAPO tokens into circulation, according to Blockaid.

The firm said the exploit was not tied to stolen private keys or broken cryptographic verification. Instead, Blockaid described the incident as a “classic Solidity vulnerability involving multiple dynamic fields.”

Cross-chain bridge exploits tied to forged or improperly validated messages have surfaced repeatedly across the DeFi sector this year. Earlier this week, the Verus Protocol Ethereum bridge lost more than $11.5 million after attackers allegedly used forged cross-chain transfer instructions to siphon reserve assets from the protocol.

At the time, Blockaid compared the Verus incident to the 2022 Nomad Bridge and Wormhole exploits, where fake transfer payloads reportedly tricked protocols into releasing funds. ExVul later said the Verus exploit appeared to involve a forged cross-chain import payload that bypassed verification checks inside the bridge mechanism.

GoPlus Security separately stated that the Verus exploit was likely linked to a cross-chain message validation failure, withdrawal bypass issue, or access control weakness.

TON-TAC bridge recovers 80% of stolen assets

Elsewhere in the cross-chain bridge sector, TON-TAC, a bridge built as an extension for The Open Network, published a post-mortem Thursday covering its $2.68 million exploit from May 11.

According to the project, the incident originated from missing validation checks inside the sequencer software. A counterfeit TON wallet lacking proper code-hash and minter verification was reportedly accepted by the system, leading to another unauthorized token mint.

TON-TAC said recovery operations have secured nearly 80% of the affected assets. Even so, the bridge remains paused while an independent audit reviews the patched sequencer infrastructure and liquidity restoration process.

Map Protocol operates as an omnichain network that connects Bitcoin with ecosystems including Ethereum, BNB Chain, Tron, and Solana for cross-chain asset transfers involving Bitcoin, stablecoins, and tokenized assets.

Meanwhile, attacks targeting interoperability infrastructure have continued mounting across decentralized finance. Alongside the MAPO exploit, protocols such as THORChain, Transit Finance, TrustedVolumes, Echo Protocol, Ekubo, and RetoSwap have also reported security incidents in recent weeks.

Singapore’s central bank has pulled the crypto payment license of Bsquared Technology Pte. Ltd., stripping the firm of its right to provide digital payment token services after uncovering a series of breaches.

In a Wednesday announcement, the Monetary Authority of Singapore (MAS) said it revoked Bsquared’s Major Payment Institution Licence after an on-site inspection found weaknesses in the company’s risk management practices and conflict-of-interest policies, as well as failures to comply with the regulator’s outsourcing guidelines.

MAS said Bsquared provided false or misleading information on multiple occasions, from its initial license application through the inspection itself.

Bsquared, also known as BSQ, obtained its license 16 months ago after receiving approval to offer digital payment token services under Singapore’s Payment Services Act 2019.

Related: Singapore’s OCBC launches tokenized gold fund on Ethereum and Solana

MAS orders Bsquared to submit a closure certificate

The company is required to submit a closure certificate from its auditors confirming that all customer funds have been returned to their recipients. Bsquared told MAS it held no outstanding customer assets.

“MAS takes a serious view of the breaches committed by BSQ, and is reviewing the responsibilities of key officers of BSQ,” the central bank added.

MAS revokes Bsquared’s license. Source: MAS

MAS has granted 37 digital payment token services licenses so far, and revocations remain uncommon. Last year, MAS rejected an application from AmazingTech, the operator of Tokenize Xchange, and the Commercial Affairs Department subsequently launched a probe into the company.

Related: Crypto dispute over Resupply exploit lands in Singapore harassment court

Singapore pushes deeper into digital asset infrastructure

Singapore has built a reputation as one of Asia’s leading crypto hubs, home to regional offices of Coinbase and Ripple, as well as the global headquarters of Crypto.com.

The city-state is also cementing its position as a leading hub for integrating traditional finance with digital assets.

Last month, Singapore Gulf Bank launched a service allowing institutional clients to mint and redeem stablecoins directly from their bank accounts via the Solana blockchain, enabling 24/7 settlement between fiat and digital assets.

Magazine: Guide to the top and emerging global crypto hubs — Mid-2026

Binance has launched perpetual futures that allow users to trade the anticipated valuations of private companies before they go public. The first contract to go live is tied to SpaceX, a company expected to debut at a valuation of $2 trillion or more.

The “Pre-IPO Perpetual Contracts” are designed to provide retail traders with early exposure to high-profile initial public offerings (IPOs), a market segment historically reserved for institutional investors and venture capital firms. The first listing, SPCXUSDT, will be margined and settled in the dollar-pegged stablecoin tether USDT$0.9992 and is based on the expected market valuation of Elon Musk’s Space Exploration Technologies Corp. (SpaceX).

The move marks the expansion of Binance’s derivatives product suite into traditional finance territory.

“Pre-IPO perpetual futures is another example of how Binance is democratizing access to market opportunities by combining crypto-native infrastructure with major financial events. As interest in public listings continues to grow, we’re giving users a more flexible way to engage with anticipated IPOs earlier,” Shunyet Jan, head of spot and derivatives business at Binance, said in the press release shared with CoinDesk.

“This launch reflects our vision for Binance as a financial super app — one that offers access to an expanding range of financial opportunities that have traditionally been more difficult to reach,” Jan added.

These pre-IPO contracts are built on the same perpetual futures rails used for crypto trading. Before a company’s public debut, the contract price will reflect publicly available signals, such as private funding rounds and announced IPO price ranges. Once the stock begins trading on a secondary exchange, the contract will transition to reflect the shares’ live market performance.

SpaceX filed its S-1 registration statement with the Securities and Exchange Commission (SEC) on Wednesday, disclosing holdings of 18,712 BTC at a cost basis of roughly $35,000 per bitcoin. The filing also revealed $4.69 billion in first-quarter revenue and a $4.28 billion net loss and suggests at a possible Nasdaq debut next month.

Traders on the decentralized betting platform Polymarket are pricing in more than a 70% chance that the IPO will ultimately close above $2 trillion. Reuters reported that SpaceX is targeting a valuation of around $1.75 trillion for its planned listing.

Binance’s recent listing of SpaceX pre-IPO futures follows comparable offerings from OKX, Crypto.com, and Hyperliquid’s Trade.xyz. Trade.xyz’s SpaceX perpetual futures launched on May 18 with a reference price of $150 per share, implying a $1.78 trillion valuation, and generated an impressive $33 million in trading volume on the first day alone.

The growing number of SpaceX pre-IPO markets may be taking capital and, more importantly, attention away from major cryptocurrencies.

It could be more than a coincidence that bitcoin’s price rally ran out of steam at around $80,000 a week ago and prices have since pulled back to under $78,000.

Traditional market analysts are concerned that SpaceX’s upcoming IPO, expected to be the largest stock debut in history, could divert significant capital away from other segments of the U.S. market, including European IPOs.

Deepwater Asset Management’s Gene Munster captured the sentiment on X, noting that SpaceX’s blockbuster IPO filing on Wednesday “sucked the air out of the NVDA quarter,” even as the AI chipmaker delivered blowout quarterly earnings. Nvidia shares still ended the day flat at $220.60.

“Yes, NVDA crushed earnings,” Munster said. “But SpaceX’s positioning as a sovereign AI company offers a more compelling long-term (10-year) growth story.” He added that Nvidia and SpaceX together could reach a combined market capitalization of $7 trillion.