Crypto World
Critical Zcash Vulnerability Revealed by Founder: Key Details and ZEC Outlook (Expert Take)
Zcash’s native cryptocurrency, ZEC, crashed by roughly 45% today, as the market reacted to a notable disclosure from the protocol’s founder, Zooko Wilcox, and other key ecosystem figures.
The post explained that researchers had recently found and patched a critical vulnerability associated with Zcash’s Orchard shielded pool – one that could have allowed an attacker to create unlimited counterfeit ZEC without being detected.
This brought to light one of the most serious kinds of bugs a cryptocurrency could face: one that threatens the integrity of the coin’s supply.
It’s worth noting that the authors said they believe previous exploitation was unlikely; however, they also acknowledged that because of the protocol’s privacy features, there is no cryptographic way to prove today whether or not the bug itself was exploited before it was patched.
What Happened to ZEC on June 5th, 2026?
As seen in the chart below, ZEC experienced a massive crash on June 5th, 2026, losing more than 45% of its value and plummeting from above $600 to around $300 in a matter of hours. The sudden move followed a disclosure from the protocol’s founder, bringing to light a massive vulnerability that may have allowed attackers to mint counterfeit tokens.
Let’s dive a bit deeper.

According to Zooko’s post on Twitter, security researcher Taylor Hornby discovered the vulnerability on May 29th, 2026, while reviewing the protocol’s Orchard circuit. To those unaware, Orchard is one of Zcash’s shielded pools – the part of the protocol that makes private transactions possible.
Hornby had been hired by Shielded Labs back in April 2026 to conduct ongoing security research on the protocol. His job was to look for hidden flaws before malicious hackers could find it.
The discovery came relatively short after Antrophic released its Opus 4.8 AI model on May 28th. In fact, Hornby used this same model as part of a targeted audit of the Orchard circuit. He combined AI-assisted review with traditional security research, and one day later he found the bug and disclosed it to the Zcash Open Development Lab, or ZODL for short.
ZODL then coordinated an emergency response throughout the entire Zcash ecosystem, completing the fix by June 2nd, and thereby closing the window of risk. But that’s not the end of the story, because the bug could have caused damage before it was fixed. Allow me to explain.
Why This Bug Was So Serious
Put in simple terms, the vulnerability could have allowed for someone to create fake ZEC inside Orchard.
Cryptocurrencies usually rely on very strict rules to prevent counterfeiting. A blockchain must absolutely know, at all times, that coins being spent really exist and that no one is secretly creating more than allowed. Zcash has a maximum supply of 21 million ZEC, similar to Bitcoin’s fixed-supply model. If someone is able to create unlimited fake ZEC, that would undermine one of the most basic and fundamental promises of the system itself.
— zooko
ⓩ (@zooko) June 4, 2026
The vulnerability was caused by what the authors described as an “under-constrained” element in the Orchard circuit. Now, a circuit is a mathematical system used to verify that a private Zcash transaction follows the rules without revealing sensitive details. These are the details about the sender, the receiver, and the amount.
“Under-constrained” here means that the circuit did not fully check something it was supposed to be checking. In this case, the flaw enabled the insertion of false inputs into a core cryptographic operation, elliptic curve multiplication, while still making the proof appear valid.
The researcher reportedly built a complete exploit and tested it in a local environment. During that test, the exploit generated virtually unlimited undetectable counterfeit ZEC. The authors admitted that if the same tool had been used on mainnet before the fix, it would have generated counterfeit ZEC directly in the real Zcash wallet.
The Tradeoff for Privacy
The crucial part of this disclosure is not only that the bug existed, but that Zcash’s privacy design makes it impossible to prove whether it was ever exploited before the fix. And it has been here for a while. To be precise – since Orchard was activated in May 2022. So that’s over 4 full years it could have been exploited.
Zcash’s protocol is designed so that shielded transactions do not reveal public details about who sent the funds, who received them, or how much was transferred. That privacy is the whole point of the system. At the same time, though, it makes forensic analysis that much harder.
On a traditional public and transparent blockchain, investigators are able to trace abnormal coin creation or suspicious transaction patterns. In Orchard, the relevant information, which could essentially point to any potential damages, is hidden by design. As a result, the authors concluded that there is no definitive cryptographic way of determining whether counterfeited coins were created before the vulnerability was patched.
It’s important to note that this doesn’t mean that counterfeiting happened – it just means there’s no way to prove it doesn’t.
Authors Think Exploitation Was Unlikely: Here’s Why
Despite the serious nature of the vulnerability, the authors argue that prior exploitation was probably unlikely.
The first reason they outline is that the vulnerability had gone unnoticed for years, despite Zcash’s protocol being reviewed by experienced security engineers and cryptographers. Orchard was activated back in May 2022, as we mentioned above, which means that the bug was there for four years without it being discoverd (or at least not that we know of such discovery).
The second reason is that Hornby was onboarded to specifically search for deep protocol vulnerabilities, and this discovery was not accidental. It was the result of focused security effort using advanced tools and expert judgment.
They also argued that the vulnerability was patched within just a few days after discovery. That said, the authors were very careful in asking the users not to simply trust their judgment, proposing a more formal way of restoring trust.
What’s Next?
First things first, Shielded Labs is working with other Zcash devs on a possible network upgrade that would allow users to reliably verify the integrity of the ZEC supply.
This idea involves creating a new shielded pool and using “turnstile accounting” for coins leaving Orchard. Put simply, this would create a migration path that’s more controlled. Coins could move from the old pool to the new one under rules that are designed to make sure that more ZEC cannot come out than it legitimately went in.
Naturally, this kind of network upgrade wouldn’t take place automatically – it would need community support through the normal government process.
In regards to ZEC’s price action, which is probably one of the things that many users are mostly concerned with, CryptoPotato reached out to leading analytics firm Nansen for an opinion. Commenting on the matter was Nicolai Sondergaard, Research Analyst, who said:
“What markets are reacting to is the part that cannot be fully resolved by the patch. Due to the privacy design of Orchard, there is no cryptographic way to audit whether someone exploited this before the fix. The Zcash team has said exploitation is unlikely, for reasonable reasons, but they have been explicit that they cannot prove it. That is a genuine supply integrity problem. A network upgrade is being proposed that would migrate coins to a new shielded pool with turnstile accounting, allowing independent verification. Until that is live and audited, the honest answer is that current ZEC supply cannot be certified clean.
The price reaction reflects that uncertainty more than the bug itself. A patched vulnerability in a minor privacy coin would ordinarily be a footnote. The -30% move is the market assigning non-trivial probability to the scenario where some counterfeiting did occur and is permanently undetectable without the proposed upgrade.”
Opus 4.8 and Its Role in Discovering this Zcash Vulnerability
One of the most impressive parts of this story is the role of AI-assisted security research.
Taylor Hornby used Anthropic’s Opus 4.8 model as part of the review that led to the discovery.
This doesn’t mean that AI “found the bug on its own.” The disclosure makes it clear that the process involved a very experienced professional, a targeted review, custom tooling, and expert analysis. However, it also shows that AI systems may increasingly become part of high-stakes security work, especially in complex cryptographic systems, where even the smallest mistakes can have disproportionately large consequences.
Shielded Labs said it’s now accelerating this kind of proactive research.
The post Critical Zcash Vulnerability Revealed by Founder: Key Details and ZEC Outlook (Expert Take) appeared first on CryptoPotato.
Crypto World
Inside MEXC’s move to build an all-in-one trading station for digital and traditional assets
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
MEXC expands beyond futures with RealStocks, offering access to U.S. stocks and ETFs via USDT.
Summary
- MEXC reports growing demand for TradFi-linked products, with INTC futures volume rising 1,684% month-over-month and other equity-linked contracts posting strong growth.
- The exchange has launched RealStocks, allowing eligible users to access U.S.-listed stocks and ETFs through broker-backed infrastructure using USDT.
- RealStocks expands MEXC’s multi-asset offering as crypto traders increasingly seek exposure to equities, ETFs, commodities, and broader market themes.
Crypto trading is becoming less isolated from the rest of the market. Users who once came to exchanges mainly for tokens, spot pairs, and futures are now tracking equity themes, macro moves, and alternative assets in the same daily workflow.
MEXC’s April data gives one recent example. INTC futures volume rose 1,684 percent month over month, while AMD, TSM, and NVIDIA-linked futures also posted triple-digit growth. Activity also increased across QQQ, GOOGL, and SP500 futures, showing how traditional market themes are moving deeper into crypto exchange behavior.
For MEXC users, this interest has already been visible through TradFi-linked futures. The exchange says the category now covers more than 130 traditional financial assets, including U.S. equities, stock indices, ETFs, precious metals, commodities, and foreign exchange products. RealStocks extends that path from futures exposure into U.S. stock and ETF access. Eligible users can reach U.S.-listed stocks and ETFs through licensed broker and clearing infrastructure, transact in USDT and use MEXC’s existing interface.
A different route into U.S. stocks
U.S. stock access is now one of the areas where crypto exchanges and RWA platforms are testing different models. Bitget Reality, Ondo Stocks and xStocks have helped shape the tokenized equity narrative. Gate Stocks and Binance’s stock-access plans, including bStocks, point to another route where exchanges bring stock and ETF access closer to existing users.
For users comparing these options, the distinction is practical. Tokenized products may appeal to those who want on-chain portability or DeFi connectivity. Broker-based stock access may appeal to users looking for a route closer to traditional equity ownership, including dividend or distribution eligibility where applicable. RealStocks sits in that second group while keeping the trading flow close to crypto user habits.
How RealStocks fits the MEXC user journey
MEXC says RealStocks was validated by more than 20,000 users during its beta phase before the official launch. The product is connected through Atomic Vaults. MEXC describes the company as a U.S. FINRA-licensed broker-dealer and brokerage infrastructure provider backed by Founders Fund and ARK Invest.
Through that structure, eligible users can access thousands of U.S.-listed stocks and ETFs. Trading hours follow Nasdaq market sessions, and settlement follows a T+1 structure. Where applicable, users may also receive dividends or distributions on their holdings.
| RealStocks at a Glance | |
| Real Stock Access | Crypto Exchange Flow |
| 7,000+ U.S.-listed stocks and ETFs | Trade with USDT |
| Broker-connected access | Existing MEXC interface |
| Nasdaq market sessions | Zero platform fees |
| T+1 settlement | Familiar exchange flow |
| Dividends | Lower entry friction |
For someone who already holds stablecoins, RealStocks keeps U.S. equity access closer to the exchange workflow they already know. Users can test stock and ETF access through USDT-based trading without moving into a separate brokerage environment.
RealStocks makes MEXC’s “Gateway to Infinite Opportunities” initiative easier to understand in product terms. Users already encounter crypto assets, tokenized products, TradFi-linked futures, commodities, precious metals and other market-linked instruments inside the MEXC ecosystem. RealStocks adds U.S. stock and ETF access to that mix.
A trader may begin with spot crypto, then move into futures during periods of higher volatility. When U.S. technology stocks are active, the same user can follow AI semiconductor futures and use RealStocks to access listed U.S. equities or ETFs. For users, the value is straightforward: fewer separate systems when they are following several market themes at once.
Zero Fees and launch incentives lower the first step
Fees matter most when users test a new product for the first time. MEXC says RealStocks carries zero platform trading fees during the launch period where available. For users entering a new asset category, this can reduce concerns around onboarding, funding, currency conversion, and trading costs.
The launch also includes limited-time incentives for eligible users, including activity-based rewards and support for real-time market data access.
MEXC has also used zero-fee positioning across other parts of its ecosystem. In April, the company highlighted user fee savings during its 0-Fee Fest, including activity from TradFi-linked futures products. For active users, the relevance is clear. A new asset category becomes easier to test when they are already moving between different market themes.
From crypto account to wider market access
For exchanges, competition is expanding beyond token availability and trading fees. Users are also looking at how easily a platform lets them move between crypto assets, equity themes and other market-linked products.
RealStocks strengthens MEXC’s position in this market by adding U.S. stock and ETF access to a platform where users already encounter crypto assets, tokenized products and TradFi-linked futures. It connects the company’s “Gateway to Infinite Opportunities” message to a practical trading experience built around USDT funding and the existing MEXC interface.
Disclosure: This content is provided by a third party. Neither crypto.news nor the author of this article endorses any product mentioned on this page. Users should conduct their own research before taking any action related to the company.
Crypto World
Ripple-backed SBI takes control of WIZE’s Solana treasury
Ripple-backed SBI Holdings has expanded its role in Solana’s institutional ecosystem after its crypto subsidiary secured responsibility for managing the SOL treasury operations of Tokyo-listed WIZE.
Summary
- SBI VC Trade will manage the trading, custody, and treasury operations of WIZE’s Solana holdings.
- WIZE selected the Ripple-backed firm after evaluating compliance, security, and institutional support capabilities.
- The deal comes as institutional interest in Solana grows, with Morgan Stanley recently refiling for a spot SOL ETF.
According to an announcement from SBI VC Trade, the company will oversee the trading, custody, storage, and management of Solana (SOL) assets held under WIZE’s corporate treasury strategy. The arrangement places SBI VC Trade at the center of WIZE’s efforts to build and maintain a SOL-based treasury as part of its long-term business plans.
Operating through its institutional platform SBIVC for Prime, SBI VC Trade said it will provide services covering cryptocurrency trading, asset management, treasury management, and Web3-related support for large-scale clients. Under the agreement, WIZE will use the platform for transaction execution and custody of its Solana holdings.
WIZE launched its Solana Treasury Business in 2025, positioning SOL as a key component of its balance-sheet strategy.
The company has previously stated that digital assets could eventually complement its existing social entertainment and media operations. Through the new partnership, SBI VC Trade will handle the operational side of acquiring, storing, and managing those holdings.
WIZE selects SBI for institutional Solana support
Details released by SBI VC Trade show that WIZE selected the firm after evaluating multiple service providers. According to the announcement, factors considered during the review included regulatory compliance, operational security, and the ability to support institutional digital asset activities.
Registered to provide crypto-related services in Japan, SBI VC Trade operates under the country’s regulatory framework for digital asset businesses. The company is part of SBI Holdings, which has maintained a long-standing relationship with Ripple through investments and business partnerships.
For SBI VC Trade, the deal adds another institutional client to its growing digital asset business. The company said services offered through SBIVC for Prime are designed for corporate and institutional customers seeking trading, custody, and asset management solutions.
Institutional interest in Solana continues to grow
Elsewhere in the market, several recent developments have pointed to rising institutional engagement with Solana.
Only weeks before the WIZE announcement, Wall Street banking giant Morgan Stanley resubmitted an application for a spot Solana exchange-traded fund in the U.S.
The proposed fund, which would trade under the ticker MSOL if approved, is designed to hold SOL directly while staking a portion of the assets to generate yield for investors. According to the filing, the ETF would be listed on NYSE Arca pending approval from the U.S. Securities and Exchange Commission.
The SBI-WIZE partnership arrives as asset managers, treasury-focused firms, and financial institutions continue to explore Solana-related products and investment strategies.
Separate from its Solana activities, SBI Holdings recently entered the artificial intelligence sector through a partnership with Anthropic. According to SBI, the collaboration will bring Anthropic’s Claude AI technology into company operations. The announcement followed Anthropic’s confidential filing for an initial public offering, which was submitted earlier this year.
Crypto World
House GOP Moves to Curb Lawmakers’ Prediction Market Bets
Republicans in the U.S. House are moving to fold prediction-market restrictions into a stalled congressional stock-trading ban, as lawmakers assess whether members should be permitted to wager on elections or public policy outcomes. House Administration Committee Chair Bryan Steil plans to attach prediction-market provisions to H.R. 7008, the stock trading ban bill, before it advances to the floor, according to Bloomberg Government. The measure would be paired with new limits on how lawmakers may engage with prediction markets, signaling a more comprehensive approach to financial conduct in Congress.
The effort comes amid heightened regulatory scrutiny of prediction markets and renewed interest in tightening rules governing legislators’ financial activities. As part of the discussion, Steil indicated that the House leadership will be asked to consider the measure, which would blend stock-trading restrictions with enhanced restrictions on prediction-market participation by lawmakers.
No full ban on lawmakers’ prediction market use in Steil proposal
Under Steil’s draft framework, prediction markets would not be banned outright for members of Congress. Instead, certain contracts would be restricted. Bets tied to elections or public policy would face limitations, while wagers linked to sports or entertainment outcomes, such as the Super Bowl, would remain permissible. Steil noted that the House lacks clear rules for how members should engage with prediction markets, suggesting the legislation aims to fill a regulatory gap rather than condemn the product itself. “I don’t think this is a critique of the underlying product one way or the other,” he said.
Regulatory scrutiny and historical context for prediction markets
Prediction markets have increasingly drawn regulatory attention due to concerns about market integrity, transparency, and potential conflicts of interest in political forecasting. Regulators in several jurisdictions have challenged or restricted election-related contracts, gambling considerations, and potential insider-like trading within these platforms. The evolving policy landscape has prompted discussions about how such markets should be treated under existing securities or gambling laws, as well as how they align with broader AML/KYC requirements and consumer protections. Regulatory developments in this area have been analyzed by industry outlets and research teams as part of ongoing debates about market structure and financial supervision. Cointelegraph has highlighted that pushback has occurred in multiple jurisdictions, illustrating the cross-border complexities of integrating prediction markets into mainstream financial regulation.
Polymarket promotions, disclosures, and compliance considerations
Separately, Politico reported that several influencers publicly promoted Polymarket after payments connected to the company’s chief marketing officer. PayPal transaction records reviewed by Politico show at least $350,000 in payments routed through a personal account linked to Polymarket’s CMO, Matthew Modabber, alongside more than $2.5 million directed to hundreds of recipients over a 14-month span. At least 20 creators subsequently posted about Polymarket on X, often without disclosing financial ties, including individuals such as Brian Krassenstein and Riley Gaines. Polymarket did not provide a response when contacted by Cointelegraph prior to publication.
Polymarket rose to prominence in 2024 after users placed high-profile bets on Donald Trump’s election outcome, underscoring the potential real-time signaling value of prediction markets while also highlighting regulatory and governance questions surrounding how such platforms monetize and disclose promotions. The episode feeds into broader concerns about influencer marketing, sponsorship transparency, and the adequacy of disclosure in the rapidly evolving prediction-market ecosystem. Regulators have already expressed interest in the governance and disclosure frameworks of these platforms as part of a wider effort to ensure market integrity and consumer protection.
Context for policy, enforcement, and institutional impact
As lawmakers weigh a more nuanced approach to prediction-market trading by members, the discussion intersects with a broad regulatory agenda involving the U.S. Securities and Exchange Commission, Commodity Futures Trading Commission, and Department of Justice, as well as international frameworks such as the European Union’s MiCA regulation. For crypto firms, exchanges, banks, and institutional investors, the evolving stance toward prediction markets translates into several practical considerations:
- Licensing and oversight: Platforms offering prediction-market products may face enhanced licensing requirements or stricter registration standards, particularly if markets touch on political outcomes or public policy signals.
- AML/KYC compliance: Expanded rules could demand stronger customer due diligence, transaction monitoring, and heightened disclosure obligations for marketing campaigns and promotions tied to political or policy bets.
- Cross-border considerations: Different regulatory regimes could create a patchwork of compliance requirements, influencing where operators can offer services and how they market them internationally.
- Risk management and governance: Institutions must assess the potential reputational and legal risks associated with endorsements, influencer campaigns, and the disclosure of compensation tied to platform promotions.
These developments matter not only for lawmakers’ personal trading but also for the broader ecosystem of prediction-market operators, crypto exchanges, and traditional financial institutions interacting with these markets. The debate illustrates how policy designers are balancing the perceived transparency and real-time information signals from prediction markets against concerns about market manipulation, insider risk, and the appropriate boundaries for political-economic forecasting tools.
Closing perspective
As the House contemplates a more integrated framework for regulating prediction markets alongside a stock-trading ban, observers should monitor how these provisions evolve and how they interact with existing enforcement priorities and international policy harmonization efforts. The coming weeks will clarify whether the proposal gains floor support and how regulators will reconcile technical market design with legal governance, disclosure standards, and cross-border compliance requirements.
Crypto World
Alsobrooks says Clarity Act needs ethics deal before Senate vote
Latest developments: Sen. Angela Alsobrooks said she will not support the Clarity Act on the Senate floor unless negotiators reach agreement on ethics provisions and other outstanding issues.
- Alsobrooks said ethics concerns remain a major sticking point, alongside illicit finance provisions and work still needed in the Agriculture Committee.
- She characterized her committee vote advancing the bill as support for continued bipartisan negotiations, not unconditional support for final passage.
- “We’re almost there, but not quite there yet,” Alsobrooks said of the negotiations.
- Alsobrooks joined Rebecca Rettig and Renato Mariotti on CoinDesk’s The Policy Protocol.
The compromise: Alsobrooks defended the stablecoin yield language that drew criticism from JPMorgan Chase CEO Jamie Dimon and parts of the banking industry.
- She said she was among the first senators to raise concerns that allowing interest-bearing stablecoins could trigger deposit flight from community banks.
- According to Alsobrooks, negotiators spent roughly nine months crafting language that bars crypto firms from paying yield solely on stablecoin balances and prevents firms from offering products that mimic bank accounts without bank-like protections.
- She argued the final compromise balances industry innovation with consumer and banking-sector protections, even if neither side is fully satisfied.
Why it matters: Alsobrooks framed crypto regulation as a response to growing consumer adoption rather than a speculative future policy debate.
- She noted that tens of millions of Americans already own cryptocurrency and said lawmakers have a responsibility to establish consumer protections.
- The senator argued that digital assets represent an economic opportunity many younger Americans believe they need as traditional paths to wealth become less attainable.
- She said the goal is to ensure the U.S. remains a leader in digital asset innovation while protecting consumers from harm.
Reading between the lines: Alsobrooks suggested Democratic skepticism toward crypto legislation is driven less by the technology itself than by concerns about corruption, ethics and fraud.
- She pointed to concerns involving President Trump’s business interests and broader questions about ethics in the digital asset space.
- She said many lawmakers remain focused on preventing scams and strengthening protections for consumers who have already suffered losses.
- Alsobrooks argued that remaining engaged in negotiations is the best way to ensure constituents have a voice in shaping the final rules.
What comes next: The senator outlined a short list of priorities needed to move the legislation across the finish line.
- Negotiators must finalize ethics provisions acceptable to both parties.
- Lawmakers are still working through illicit finance language championed by Sen. Catherine Cortez Masto.
- The Agriculture Committee must also reach a bipartisan agreement before final Senate consideration can proceed.
Crypto World
Grayscale pursues Canton Coin ETF after Hyperliquid debut
Grayscale Investments has filed with the U.S. Securities and Exchange Commission to launch a spot Canton Coin exchange-traded fund, extending its recent push into crypto investment products just days after its Hyperliquid staking ETF began trading.
Summary
- Grayscale has filed with the SEC to launch a spot Canton Coin ETF holding CC directly.
- Canton Coin fell 2.8% as Bitcoin’s slide toward $60,000 triggered a broader crypto market selloff.
- The filing follows Grayscale’s Hyperliquid ETF debut and ongoing efforts to expand its crypto ETF lineup.
According to a registration statement submitted to the SEC, the proposed Grayscale Canton ETF would hold Canton Coin (CC) directly and issue publicly traded shares designed to track the token’s market performance. The filing adds Canton Coin to a growing list of digital assets Grayscale has sought to package into regulated investment vehicles.
Under the proposed structure, investors would gain exposure to CC through brokerage accounts without having to purchase, store, or manage the token themselves. The filing states that the trust’s assets would consist primarily of Canton Coin held on behalf of shareholders.
Market reaction remained muted despite the ETF application. Per data from crypto.news, Canton Coin fell 2.8% over the past 24 hours as investors pulled back from risk assets following Bitcoin’s sharp decline toward the $60,000 support level. The broader cryptocurrency market also came under pressure, with total market capitalization dropping 4.8% to roughly $2.18 trillion during the same period.

Grayscale expands crypto ETF lineup
The Canton filing arrives shortly after Grayscale’s Hyperliquid staking ETF entered the market. The fund received SEC approval and began trading on June 3. The investment product has attracted nearly $5 million in net inflows during its first two trading sessions.
Grayscale priced the fund with a 0.29% management fee, a level that reportedly helped it compete against rival issuers seeking exposure to Hyperliquid’s HYPE token.
Canton Network, whose native asset is Canton Coin, operates as a blockchain platform focused on financial institutions and enterprise users.
According to project materials referenced in the filing, the network is designed to connect traditional financial infrastructure with blockchain-based systems while offering privacy controls for participants.
Recent months have seen Grayscale pursue multiple crypto-focused ETF products beyond Bitcoin and Ethereum. Alongside the Canton proposal, the company has introduced products linked to XRP and Solana while continuing to add new filings tied to alternative digital assets.
BNB filing advances through review process
Elsewhere in its ETF pipeline, Grayscale recently updated its registration paperwork for a proposed spot BNB ETF.
On June 3, the asset manager disclosed the fund’s ticker symbol through an amended S-1 filing submitted to the SEC. While the update signaled progress in the review process, several details remain undisclosed.
The amended filing does not specify a management fee, indicate whether the trust plans to stake its BNB holdings, or describe any fee waiver arrangements. The revision followed the launch of a competing BNB ETF from investment manager VanEck.
Crypto World
$4M XRP Liquidity Rollover Marks Major Achievement for Flare
Flare Network’s XRP-based decentralized finance ecosystem reached a new milestone with an automated liquidity rollover. The process moved over $4 million in capital between fixed-term yield markets without disrupting trading activity.
The rollover took place on June 4, 2026, when the largest stXRP fixed-term pool on Spectra Finance reached maturity. Managed through GamiLabs’ FXRP MetaVault, the process automatically transferred liquidity into successor pools expiring on August 27 and November 26, 2026.
How MetaVaults Managed the stXRP Liquidity Transition
MetaVaults were introduced in February 2026 to address operational challenges associated with fixed-term yield tokenization. The system uses a single smart contract to monitor expiries, select new markets, and route liquidity according to predefined on-chain rules.
Under the model, liquidity providers deposit assets once and receive a vault token representing their position. The vault then manages future rollovers automatically, removing the need for users to manually withdraw and redeploy funds whenever a market expires.
The transition addresses a long-standing issue in fixed-term DeFi markets known as the expiry cliff. In many cases, maturing pools lead to fragmented liquidity and reduced market activity as participants move capital into new pools.
During the June rollover, liquidity was already available in the replacement markets before the original pool matured. This helped maintain continuous market depth and avoided the disruption often associated with fixed-term expiries.
The significance of the rollover was amplified by the scale of the maturing market. The stXRP pool recorded more than $25 million in lifetime trading volume during its four-month duration. By May, it was delivering double-digit fixed rates, reflecting sustained activity ahead of expiry.
Spectra Finance Yield Infrastructure
Spectra Finance remains one of the most active yield trading platforms on Flare, supporting structured yield products through FXRP. FXRP serves as a trustless and overcollateralized representation of XRP within Flare’s FAssets framework.
GamiLabs oversees the FXRP MetaVault, while Firelight issues stXRP used within the ecosystem. Together with Spectra’s protocol infrastructure, these components support a growing market for XRP-denominated yield strategies.
The operational impact of this structure is highlighted by comments from Spectra Finance co-founder Gaspard Peduzzi. According to him, the MetaVault framework turns expiry events into continuous market transitions. He added that this approach could support deeper and more efficient XRP yield markets by reducing operational friction linked to fixed-term maturities.
The post $4M XRP Liquidity Rollover Marks Major Achievement for Flare appeared first on CryptoPotato.
Crypto World
Jeff Bezos Confirms Blue Origin Recovery Timeline After New Glenn Rocket Disaster
Key Takeaways
- New Glenn, Blue Origin’s flagship rocket, suffered a catastrophic explosion at its Cape Canaveral launch facility in late May 2026, causing significant infrastructure damage.
- Within a week of the disaster, Jeff Bezos announced via X that the company has identified a “solid path forward” to resume launches before year-end 2026.
- Shares of AST SpaceMobile plummeted 15% immediately following the explosion and continue trading approximately $26 below pre-incident prices.
- Karman, which manufactures components for New Glenn, experienced a 13% stock decline to $57.50 and has yet to recover meaningfully.
- Despite market turbulence, both affected companies maintain their original business projections, with AST SpaceMobile targeting early 2027 for commercial operations.
A catastrophic failure struck Blue Origin in late May 2026 when its New Glenn rocket exploded at Cape Canaveral’s launch complex in Florida. The incident caused substantial damage to critical launch facilities and triggered significant volatility across space industry equities.
Just seven days after the disaster, Amazon founder and Blue Origin owner Jeff Bezos took to X to reassure stakeholders, stating the company is running a “24/7 operation with a solid path forward to launch this year.” Blue Origin’s CEO David Limp had expressed similar confidence days earlier.
Market Reaction: Space Stocks Take a Hit
The explosion’s impact on related companies was immediate and severe. AST SpaceMobile shares plunged 15% in the trading session following the incident. The stock remains depressed, currently hovering around $107—roughly $26 below its pre-explosion valuation.
Karman, a key supplier providing specialized components for the New Glenn launch vehicle, saw its stock crater 13% to $57.50. Trading has remained stagnant near that level in subsequent sessions.
Even Amazon experienced modest losses, with shares dipping approximately 1% after the explosion became public.
Adrian Helfort, chief investment officer at Westwood, characterized the explosion as “a pretty big setback, an under-appreciated setback.” He emphasized the risks of relying on a single dependable launch provider. “SpaceX is great, but you can’t have just one supplier,” Helfort stated.
Business Outlook Remains Resilient
Despite the stock market turbulence, both AST SpaceMobile and Karman assert that the explosion hasn’t altered their fundamental business trajectories.
At the William Blair 46th Annual Growth Stock Conference held this week, AST SpaceMobile executives confirmed their beta direct-to-device service launch remains scheduled for later in 2026. The company continues to target the first half of 2027 for full commercial service deployment. Additionally, AST announced it secured authorization for 10×10 spectrum utilization in Brazil.
Karman CEO Jon Rambeau emphasized that the company’s space division growth projections should remain intact despite the setback. Rambeau disclosed that Karman has already secured over 90% visibility needed to achieve the midpoint of its annual revenue forecast, which projects 25% organic expansion.
William Blair analyst Louie DiPalma characterized Bezos’ confident messaging as encouraging for the broader space sector. DiPalma noted that Blue Origin serves as AST’s primary launch partner and that Karman provides New Glenn with exclusive components, including specialized aerodynamic interstage assemblies and advanced panel protection systems. William Blair’s analysis suggests New Glenn accounts for approximately 5% of Karman’s total revenue.
New Glenn represents a significant advancement in heavy-lift capabilities, designed to transport 45 metric tons to low Earth orbit. For perspective, SpaceX’s workhorse Falcon 9 rocket delivers roughly 23 metric tons.
The space sector has demonstrated remarkable strength recently despite the setback. AST SpaceMobile shares have surged 68% over the trailing month. Rocket Lab has climbed 52% during the same timeframe, while Firefly has gained 31%.
Market enthusiasm has been building in anticipation of SpaceX’s highly anticipated public offering, scheduled to price next week at an estimated $1.8 trillion valuation.
Crypto World
Bitcoin Crumbles Toward $60K, Strategy Sold BTC, Zcash Faces Critical Vulnerability: Weekly Crypto Recap
It was quite the week for the cryptocurrency markets, dominated to a very large extent by the bears. Here’s the breakdown.
The previous weekend was quite sluggish, although BTC had already declined to $74,000 from the May top of almost $83,000. However, the worst was yet to take place. As the new business week and month began on Monday, bitcoin experienced a quick and painful decline. It first dumped toward $70,000, and even though that psychological level held the first breakdown attempt, it eventually gave in, and the landscape quickly worsened.
The cryptocurrency kept losing key support levels one after the other, and each bounce-off attempt was halted in its tracks. The bears appear to be in full control, even today on Friday. Earlier today, BTC dipped below $62,000 again and slipped to $61,000. It rebounded to $63,000 within minutes, which only increased the liquidations across the board, only to be rejected again.
The latest leg down transpired minutes ago when the asset slumped below $61,000 to chart a fresh four-month low. Thus, the cryptocurrency has lost well over $20,000 since its mid-May top as it now struggles to remain above the coveted $60,000 support.
The weekly decline is quite obvious and striking. BTC has plummeted by 15% since this time last Friday, and by a whopping 26% monthly. Its market cap has shed over $400 billion in weeks and is down to $1.2 trillion on CG. Even its dominance over the alts took a hit, even though many have charted similar or even worse declines.
Some of the notable examples include ADA, which is down by over 30% following Charles Hoskinson’s decision to take a break, and Zcash’s 41% drop after some technical vulnerabilities were uncovered earlier.
Market Data
Market Cap: $2.18T | 24H Vol: $138B | BTC Dominance: 55.7%
BTC: $60,650 (-15.5%) | ETH: $1,600 (-17%) | XRP: $1.11 (-14%)

This Week’s Crypto Headlines You Can’t Miss
Strategy Sold Bitcoin, But It’s Not What You May Think. Bitcoin’s big troubles began shortly after Strategy announced its first sale in years. Although it disposed of a very tiny portion of its BTC holdings, it still triggered a community reaction and perhaps led to a significant worsening in the overall market sentiment.
Peter Schiff Warns Bitcoin Could Plunge Below $20K as Complacency Sets In. In an entirely expected comment on X, Peter Schiff took advantage of BTC’s price crash and predicted an even bigger calamity to $20,000 if the $50,000 support is lost.
Strive Doubles Down on Bitcoin With $185M Buy, Holdings Near 19,000 BTC. Unlike Strategy, Strive made its first purchase in a long time, expanding its holdings to almost 19,000 BTC after a substantial $185 million accumulation of the asset.
Arthur Hayes Dumps Entire Zcash (ZEC) Position After Major Flaw Emerges. Shortly after the news of Zcash’s issues went viral on X, Arthur Hayes, who had been supporting the project for a while, said he had disposed of his entire ZEC position, citing a lot of uncertainty.
Cardano (ADA) Faces Make-or-Break Moment as Social Buzz and Network Activity Explode. Hoskinson’s break, combined with ADA’s massive price calamity, led to a significant increase for Cardano, with the social media activity going wild.
Ethereum Crashing to 14-Month Low Is a ‘Screaming Buy-The-Dip Opportunity’ – Analyst. ETH was not spared by the overall market crash, dumping to consecutive 14-month lows at under $1,800 and then to $1,600. Some analysts, though, believe this could be a proper buy-the-dip opportunity.
Charts
This week, we have a chart analysis of Ethereum, Ripple, Cardano, Binance Coin, and Hyperliquid – click here for the complete price analysis.
The post Bitcoin Crumbles Toward $60K, Strategy Sold BTC, Zcash Faces Critical Vulnerability: Weekly Crypto Recap appeared first on CryptoPotato.
Crypto World
Visa tests private stablecoin settlement on Canton Network with Brale SBC
Visa has tested stablecoin settlement using Brale’s SBC token on the Canton Network, as global stablecoin issuance has surpassed $300 billion, according to S&P Global Ratings.
Summary
- Visa, Brale, and Canton Network are testing private stablecoin settlement using SBC, a U.S.- dollar-backed stablecoin, on a permissioned blockchain network.
- The pilot examines whether financial institutions can settle transactions on-chain while keeping sensitive payment and settlement data hidden from public view.
According to a joint announcement from Visa, Brale, and Canton Network participants, the companies have launched a proof of concept that examines whether privacy-enabled blockchain infrastructure can support institutional stablecoin payments without exposing sensitive transaction details.
The test uses SBC, a U.S. dollar-backed stablecoin issued by Brale, to simulate settlement activity on Canton while Visa evaluates whether the token could become part of its stablecoin settlement program.
Rather than focusing on public blockchain networks, the initiative centers on a permissioned environment built for financial institutions that require tighter control over transaction visibility.
Over the past several years, Visa has steadily expanded its work with blockchain-based payments.
Earlier programs allowed settlement in Circle’s USDC on public networks such as Ethereum, while more recent projects have explored stablecoin-funded payments, tokenized asset spending, and crypto reward cards across multiple markets.
Canton network tested for private institutional payments
Developed by Digital Asset, Canton connects permissioned blockchain applications used by institutions including JPMorgan, Goldman Sachs, BNP Paribas, and the Depository Trust & Clearing Corporation.
Unlike public blockchains, Canton is structured so transaction data is visible only to involved parties and authorized regulators. The network is also designed to support atomic settlement across tokenized assets, digital cash instruments, and other financial contracts.
In the latest proof of concept, Visa and Brale said they are assessing whether Canton can provide faster and more programmable settlement while allowing banks, payment firms, and market infrastructure providers to maintain strict controls over confidential transaction and settlement information.
The project arrives as stablecoins continue to attract attention beyond cryptocurrency trading. S&P Global Ratings said in a report published Thursday that stablecoin issuance has exceeded $300 billion globally across multiple currencies, although most activity remains tied to crypto markets.
S&P Global Ratings stated that payment stablecoins complying with the Guiding and Establishing National Innovation in U.S. Stablecoins, or GENIUS Act, could expand into merchant payments, remittances, and commercial transactions once regulatory frameworks are finalized.
The ratings agency identified cross-border payments as one of the most promising early applications, while noting that current stablecoin payment volumes still account for only a small portion of international payment activity.
Recent Visa initiatives show how the company has been testing digital asset payments across different segments of the market.
In May, Visa partnered with WeFi to explore stablecoin-funded card payments in parts of Europe, Asia, and Latin America.
Another project announced this month enabled users of a Tether and Fasset-issued Visa card to spend tokenized gold while earning rewards denominated in Tether Gold.
Separately, SBI Group launched a Visa-linked card in Japan that provides Bitcoin, Ethereum, and XRP rewards through SBI VC Trade.
Banks weigh opportunities and risks
Beyond settlement efficiency, S&P Global Ratings said stablecoins could affect traditional banking economics over time by reducing a portion of payment-related revenue and moving some funding away from insured retail deposits toward larger wholesale balances.
At the same time, the ratings agency said banks that issue their own stablecoins or tokenized deposits could benefit from new fee income and funding opportunities.
According to S&P Global Ratings, these incentives are encouraging large financial institutions to evaluate infrastructure capable of supporting regulated payment stablecoins and tokenized deposit products while preserving privacy requirements expected in institutional markets.
Crypto World
Arthur Hayes dumps zcash holdings after Orchard Pool vulnerability revealed
Arthur Hayes, chief investment officer of Maelstromfund, said he liquidated his entire zcash (ZEC) position after a developer disclosed a potential critical vulnerability in the network’s Orchard Pool.
Hayes, who previously championed the privacy token, said on X that while he believed it was extremely unlikely that any minting would take place, it could not be cryptographically proven impossible.
The now-plugged vulnerability was disclosed by Shielded Labs, which said a major issue went undetected for four years and could have allowed a hacker to print unlimited counterfeit tokens, damaging trust in the crypto’s supply and its value. The token slumped following the announcement and was recently down 42% over 24 hours.
“I read about the exploit yesterday, and didn’t appreciate how it violated my narrative mental map,” said Hayes. “The 30% dump made me rethink, and I had to take profit on the entire position.”
The vulnerability, present since 2022, was discovered on May 29 and fixed June 1, Shielded Labs said.
Hayes, who also co-founded the BitMex exchange, said he would reevaluate his stance moving forward and that, if his assumptions were proven incorrect, he would buy ZEC again “hopefully at lower prices.”
Blockchain analytics and intelligence firm Arkham wrote on X that one large investor lost over half the value of his $174 million ZEC stash.
“He hasn’t sold ZEC for 6 months. Ouch,” said Arkham.
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