For decades, the web ran on a simple bargain: Publishers and businesses made information freely accessible, search engines and other crawlers indexed it, and those services sent human traffic back. Sites could then monetize that traffic through ads, subscriptions or commerce.

But that’s all changing fast, Cloudflare Chief Strategy Officer Stephanie Cohen said Tuesday at CoinDesk’s Consensus conference in Miami.

With the rise of AI agents, software can scrape a webpage, summarize content and keep the source user inside a chatbot or automated workflow instead of sending a person back to the original site. Cohen said that shift is breaking the internet’s old business model, with non-human traffic now exceeding human engagement.

Cloudflare’s proposed answer is to give websites more control over automated traffic: identify the bots, verify who they are, understand what they intend to do and decide whether to allow, block or charge them. Cohen pointed to x402, an open payments protocol built around the HTTP 402 “Payment Required” status code, as one piece of that stack.

“We have a billion 402 responses every single day on the Cloudflare network,” Cohen said. The status code has become part of the technical foundation for x402, an open agent-payments framework Cloudflare is developing with Coinbase.

“Think about it as a billion voices saying, I want to keep producing whatever I’m producing, but I need to be paid for it in order to keep doing that,” Cohen said.

CoinDesk reported in March that on-chain activity tied to the protocol remained small and experimental, with x402 processing roughly $28,000 in daily volume at the time. Cohen’s comments suggest Cloudflare sees a much larger pool of latent demand at the network layer.

She framed the shift as a structural change in how the internet works. “More than half of the traffic on the overall Internet today is non-human,” she said, “and that non-human traffic is growing much faster than the human traffic.” A decade ago, she said, crawlers visited a site twice and sent back one human visitor. Today, the ratio is “tens of thousands to one for AI companies that are scraping your site,” undermining the ad-and-subscription model that has long funded online content.

She positioned Cloudflare as network-layer infrastructure for that rebuild, not as a payment rail itself. The company processes more than 100 million requests per second at peak, Cohen said, citing Swift’s roughly 68 million messages per day as a comparison.

Cohen also pointed to Cloudflare’s Web Bot Auth cryptographic-verification stack and recent work involving Visa and Experian as part of the next layer of agentic commerce. The goal, she said, is to help merchants accept purchases initiated by AI agents while verifying that a real human is behind each transaction.

“We believe that, if we do this right, there will be a golden age of content,” Cohen said, “where high-quality original content is valued.”

Cape Town, South Africa, May 5, 2026 — Prophet, an AI-native prediction market platform, has launched its first live trading tranche, introducing a system where an AI model acts as the counterparty to user trades using real capital.

The initial deployment allocates $10,000 in USDC to an AI-powered trading system and opens participation to users on the platform. Instead of matching buyers and sellers, the system allows users to trade directly against the AI, which generates probability-based pricing for each market.

What has launched

Prophet’s “Tranche 1” is a limited-access deployment designed to test the system under live market conditions. Users who deposit gain the ability to create markets, with the AI pricing each market upon creation. Once live, markets can be traded by other participants.

The AI system takes the opposing side of every trade, absorbing directional risk based on its probability estimates. Markets can resolve within relatively short timeframes, with some contracts settling in as little as 24 hours.

According to the team, the initial tranche is intended as a controlled test of system performance using real capital and user interaction.

One model, one probability

A key feature of the platform is its pricing mechanism. The system aggregates outputs from multiple large language models, including those developed by OpenAI, Anthropic, Google, xAI, DeepSeek, and Meta. These models independently evaluate each market question, with Prophet combining their outputs into a single probability estimate.

The same architecture is used for market resolution. When a market reaches its deadline, the system evaluates real-world outcomes and settles the contract without a formal dispute process.

The team notes that this approach is experimental and may be subject to limitations in interpretation or accuracy.

Why the prediction market industry is watching

Prediction markets have seen significant growth in recent years, though most platforms continue to rely on human counterparties and manual or committee-based resolution.

Prophet’s model introduces a different structure, where liquidity and settlement are managed programmatically. This may allow for faster market creation and resolution, though its effectiveness at scale remains to be assessed.

Trading as system feedback

The platform is designed to incorporate trading activity into its development cycle. Each trade generates data on pricing accuracy, while each market expands the range of scenarios the system must evaluate.

According to the team, this feedback loop is expected to inform improvements to the model in future tranches.

Risks and limitations

The current version operates without a formal dispute mechanism. Market outcomes are determined by AI-based interpretation, which may be subject to error.

The initial $10,000 allocation is limited relative to broader market standards, and the tranche is positioned as a testing phase rather than a full-scale deployment.

Regulatory considerations may also apply, as AI-driven prediction markets represent an emerging category with evolving oversight frameworks.

Next steps

Tranche 1 is scheduled to run through May 8, 2026. The team plans to use data from this phase to refine pricing, resolution, and system design ahead of future deployments.

Subsequent tranches are expected to expand capital allocation and user access.

About Prophet

Prophet is a machine that predicts the future. An AI with a bankroll trades directly against users, allowing for any market to be opened instantly. Prophet is solving liquidity and resolution for the long tail of prediction markets.

Platform: app.prophetmarket.ai
X: @prophetmarketai
Website: prophetmarket.ai

Media contact
Eneo Hollenbach
Chief Marketing Officer
team@prophetmarket.ai

Disclaimer

This press release is for informational purposes only and does not constitute financial advice. Participation in prediction markets involves risk, including potential loss of capital. AI-based systems may introduce additional uncertainties in pricing and resolution.

This publication is provided by the client. The text below is a paid press release that is not part of Cointelegraph.com independent editorial content. The text has undergone editorial review to ensure quality and relevance, it may not reflect the views and opinions of Cointelegraph.com. Readers are encouraged to conduct their own research before taking any actions related to the company. Disclosure.

A Solana-based reinsurance venture, OnRe, has closed a $5 million Series A led by Forward Industries and RockawayX to accelerate the deployment of on-chain risk transfer infrastructure. The round is designed to scale OnRe’s platform and bring more institutional participants into blockchain-driven reinsurance, a niche but increasingly visible segment of decentralized finance. In addition to the fresh capital, Forward intends to deploy up to $25 million into OnRe’s yield-bearing token on Solana, signaling a deeper strategic commitment to tokenized risk transfer on the chain.

Forward Industries, which maintains what is described as the largest corporate Solana (SOL) treasury—holding more than 7.01 million SOL—has seen notable moves in traditional markets as well. In Tuesday’s regular trading session, Forward’s Nasdaq-listed shares rose about 5.8% according to Yahoo Finance, though much of that gain faded in after-hours trading. Solana itself traded near $86.61, up roughly 2.7% on the day. CoinGecko tracks Forward’s SOL holdings as a major component of its treasury strategy, underscoring how traditional balance-sheet assets intersect with blockchain ambitions.

Key takeaways

• OnRe raises a $5 million Series A led by Forward Industries and RockawayX, with an option for Forward to invest up to $25 million more into OnRe’s Solana-based yield-bearing token.
• The investment signals growing institutional interest in on-chain reinsurance and tokenized risk transfer, blending traditional risk markets with DeFi rails.
• Global reinsurance is large—well over $600 billion in market value—with total reinsurance premiums around $2 trillion; pilots aim to streamline underwriting, collateral management and claims through blockchain.
• OnRe faces competition and collaboration in a nascent space that includes projects like Re and broader efforts to apply blockchain to insurance value chains, including experiments with tokenized assets and stablecoin payments for premiums.
• Forward’s prominence in SOL and its funding of OnRe highlight a broader theme: established corporate treasuries may increasingly align with blockchain infrastructure and real-world asset tokenization.

OnRe’s funding, strategy and what it aims to change

The Series A funding puts OnRe at the forefront of a small but growing cluster of ventures trying to move reinsurance processes onto blockchain networks. By leveraging tokenization and smart contracts, OnRe aims to automate elements of underwriting and capital flows that have traditionally been managed through manual, paper-driven processes. In practice, the concept envisions insurers transferring portions of risk to tokenized contracts and capital pools that can be tracked in real time across a distributed ledger, potentially reducing conflict between counterparties and accelerating settlement timelines.

Industry observers say the move is less about replacing conventional reinsurers and more about shaving frictions from a market where efficiency gains can unlock new capacity. Reinsurance, often described as the market for insurance of insurance, maintains a sprawling global footprint. But as the sector explores new data, risk modeling, and collateral mechanisms, blockchain pilots are being pitched as a way to improve transparency, reduce operational latency, and align incentives across multiple players—ranging from primary insurers to capital providers and workshops managing collateral requirements.

Solana rails, yield-bearing tokens and the institutional lens

Central to OnRe’s narrative is its plan to back its platform with a yield-bearing token on Solana. While the project has not publicly disclosed the token’s exact mechanics in detail, the arrangement signals a broader trend: the use of blockchain-native tokens to represent risk exposure and to channel yield from insured premia and risk-transfer transactions back to capital providers. For Forward Industries, committing to fund up to $25 million into this token reflects a concrete bet that institutional users can access regulated, on-chain risk alongside real-world risk transfer structures.

The arrangement also positions a dialogue between traditional treasuries and blockchain-native ecosystems at a time when large holders of blockchain assets—especially those tied to major networks like Solana—are increasingly exploring how to deploy their holdings in ways that complement their core business and investment theses. Forward’s substantial SOL position, combined with active participation in a reinsurance project, illustrates how corporate balance sheets could align with tokenized risk markets if the regulatory and operational frameworks prove workable at scale.

Context: where on-chain reinsurance stands in the broader market

Even as pilots proliferate, the on-chain reinsurance space remains in early stages. Industry data points to a market that is undeniably large but complex, with substantial activity still anchored in traditional processes. Fortune Business Insights has estimated the global reinsurance market at more than $600 billion in value, with total reinsurance premiums approaching the $2 trillion level. In this environment, blockchain-based platforms aim to streamline real-time tracking, underwriting and settlement through shared ledgers and automated governance mechanisms. OnRe is among several projects testing these ideas, including Re, a decentralized reinsurance protocol that seeks to connect institutional capital with collateralized risk and offer tokenized yield products to participants.

Beyond pure reinsurance, other efforts illustrate how tokenized assets and blockchain primitives intersect with insurance at large. For instance, industry coverage has noted Aon’s exploration of stablecoins for premium payments, signaling a broader willingness among traditional insurers to experiment with digital assets within the insurance value chain. Tim Fletcher, who runs Aon’s financial services division, has suggested that tokenized assets are likely to become more integrated with conventional financial systems over time. While these experiments hint at a broad shift, participants acknowledge that regulatory clarity and demonstrated scalability remain critical hurdles before widespread adoption can unfold.

As with any frontier technology, the path ahead is not linear. The current momentum around OnRe’s Series A reflects investor appetite for tangible progress—namely, real-world teams drawing on blockchain to address long-standing inefficiencies in risk transfer. Yet observers emphasize that the sector’s evolution will hinge on disciplined product development, clear governance frameworks and the ability to attract durable capital from diverse institutional backers. The interplay between traditional insurers, crypto-native players and regulators will shape how quickly and how broadly real-world risk can migrate onto blockchain rails.

Related developments in the insurance-crypto space, including Dubai’s experiments with crypto wallet integration for premium payments and claims, illustrate a wider industry interest in crypto-enabled insurance mechanics. These efforts, while still emerging, underscore a shared goal: to deliver faster, more transparent and more cost-efficient risk transfer using digital assets and programmable contracts. As the ecosystem matures, investors will be watching whether such pilots translate into scalable products that can withstand the cycle dynamics of both insurance markets and crypto markets.

Cointelegraph is committed to independent reporting, and this article reflects information disclosed by the involved parties and public market data. Readers are encouraged to verify details through official statements and primary sources as the OnRe investment round unfolds.

Forward Industries’ ongoing SOL treasury accumulation and its exposure to blockchain ventures remain a notable signal in a space where traditional corporate treasuries are increasingly exploring strategic bets on decentralized finance and tokenized risk frameworks. As OnRe advances, market participants will be watching not only the platform’s technical development but also how institutional capital, governance policies and regulatory developments intersect to determine whether on-chain reinsurance can move from pilot to scalable market practice.

TLDR:

• Hyperliquid DATs now hold nearly 9% of HYPE’s circulating supply, surpassing BTC, ETH, SOL, and BNB float-adjusted.
  
• HYPE is the only asset in the DAT dataset currently trading at a positive mNAV, easing fresh capital raises.
  
• Legacy sellers distributed holdings before ETF products arrive, lowering the risk of new demand meeting heavy sell pressure.
  
• If approved, HYPE ETF inflows would enter a tight float with early institutional ownership and an active treasury bid.

---

Hyperliquid-linked digital asset treasury companies now hold close to 9% of HYPE’s circulating supply. This figure places HYPE above Bitcoin, Ethereum, Solana, and BNB on a float-adjusted basis.

The concentration of institutional holdings, combined with recent ETF filing activity, has drawn attention from market analysts.

If an ETF approval materializes, new passive inflows could enter an already tight float, potentially creating upward price pressure on the asset.

Treasury Demand Sets HYPE Apart From Other Major Assets

Digital asset treasury vehicles, commonly called DATs, have become a growing force in crypto markets. They represent a new category of institutional balance sheet demand that was largely absent in prior market cycles. Their presence adds a structural bid that functions differently from retail or short-term speculative buying.

Moreover, HYPE stands out within this DAT cohort for one key reason. It is currently the only asset in the dataset trading at a positive modified net asset value, or mNAV.

That status gives treasury vehicles a cleaner path to raise fresh capital and continue purchasing supply from the open market.

As analyst @0xaletheia369 noted, “DATs now hold close to 9 percent of circulating HYPE, materially above BTC, ETH, SOL, and BNB on a float-adjusted basis.”

The concentration of this institutional demand within a relatively small circulating supply makes the dynamic more pronounced compared to larger-cap assets.

However, one caveat remains worth noting. HYPE’s circulating supply still represents a low share relative to its fully diluted valuation. This means that while treasury demand is strong, a broader supply unlock in the future could shift the balance.

ETF Filing Progress Adds a New Layer to the HYPE Supply Picture

Recent amendments to ETF filings for HYPE have made an approval path appear more realistic to market observers. The filings suggest that issuers are actively working through regulatory requirements.

That progress has brought renewed attention to how an ETF approval could interact with the current supply setup.

According to the analyst’s note, legacy sellers already had a visible route to distribute holdings before passive products arrive.

That prior distribution reduces the risk that new ETF demand simply meets old concentrated sell pressure. The timing of this supply absorption matters in how any future ETF flows would land.

Furthermore, if approvals do come through, incoming flows would hit a float that is already tightened by treasury activity.

The institutional ownership base remains early-stage, meaning there is still room for further accumulation. Together, these factors create a setup where passive inflows could translate more directly into price support than in more saturated markets.

The combination of treasury demand, a positive mNAV environment, and a clearer ETF pathway makes HYPE one of the more structurally distinct assets in the current market cycle.

Brad Garlinghouse, CEO of Ripple Labs, warned Tuesday that recent progress on the digital asset market structure bill in the US Senate did not guarantee success for the legislation, speculating that the next two weeks would be crucial.

Speaking at the Consensus crypto conference in Miami, Garlinghouse said that the likelihood of the market structure bill, the CLARITY Act, passing would “drop precipitously” if not addressed in the next two weeks. According to the Ripple CEO, the bill would be “too much of a loaded issue” amid campaigns for the 2026 US midterms, with primaries ongoing until the November elections.

“Do I think it’s perfect? Hell no,“ said Garlinghouse, referring to CLARITY. “I challenge you to show me any piece of legislation that we would call perfect. There’s tradeoffs and compromises, but I do think clarity is better than chaos.”

Source: Cointelegraph

The CEO’s remarks came after US Senators Thom Tillis and Angela Alsobrooks announced a compromise on stablecoin yield last week that could lead to the advancement of the CLARITY Act. Addressing stablecoins, as well as tokenized equities and ethics, has been one of the factors holding up the bill in the Senate since it was passed by the US House of Representatives in July 2025.

Related: Crypto PAC spends $500K in support of Indiana candidate ahead of primary

The CLARITY Act, already advanced by the Senate Agriculture Committee in a January markup, also requires approval by the Senate Banking Committee before a vote in the full chamber. Garlinghouse and Ripple executives have been part of negotiations on the CLARITY Act between White House officials and representatives of the crypto and banking industries.

“The Clarity Act is not a future priority; it is the priority,” said Senator Cynthia Lummis, a member of the banking committee, in a Tuesday X post. “Every corner of the industry is operating under legal uncertainty that Congress has the power to fix. The Senate needs to act.”

US financial agencies already moving forward without Congress

The US Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) signed a memorandum of understanding in March to coordinate their approach to oversight of the digital asset market structure. SEC Chair Paul Atkins said that the agency‘s approach to crypto laws provided a “beginning, not an end,” with the commission awaiting passage of the CLARITY Act.

Magazine: How to fix suspected insider trading on Polymarket and Kalshi

Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.

A Fairshake poll finds 45% of Americans call crypto too risky as industry PACs deploy over $100 million into midterms.

A Politico poll conducted by Public First in April 2026 found that 45% of Americans say investing in cryptocurrency is not worth the risk, even if potential returns are high. The survey of 2,035 adults also found 44% believe AI is developing too fast, and nearly two-thirds want Congress to impose strict regulations or broad oversight on artificial intelligence.

The findings arrive as industry-backed super PACs pour unprecedented sums into the 2026 midterm cycle. Fairshake, the pro-crypto PAC backed by Coinbase, Andreessen Horowitz, and Ripple, has spent roughly $28 million across competitive primaries.

The pro-AI group Leading the Future, launched in August 2025, has raised more than $75 million and deployed funds in races across North Carolina, Texas, Illinois, and New York. Their combined spending exceeds $100 million.

A political liability in the making

The poll found that in hypothetical matchups, respondents were far less likely to support candidates backed by groups pushing looser AI regulation. Political observers told Politico that once voters connect campaign money to the industries behind it, backlash could be swift. “I do think if they see somebody is backed by crypto, that’s always going to be a problem,” former Ohio Representative Jim Renacci reportedly said.

The disconnect between spending and public trust is sharpest in name recognition. Only 9% of respondents have heard of Leading the Future, and just 3% recognise Fairshake. The industry has financial power that has not yet translated into public legitimacy.

That gap matters because both Fairshake and the crypto industry’s primary legislative goal, the Clarity Act, depend on the same Senate that faces midterm exposure.

As crypto.news documented, if Democrats take control of either chamber in November, Clarity Act passage odds are described as close to zero. Voter distrust of crypto at 45% makes the midterm environment a risk that PAC spending alone cannot resolve.