Crypto Sector Sees Over $1 Billion in May Investments + More

Bitcoin Price Stability Linked to Achieving New Highs

by Faruk Imamovic
Crypto Sector Sees Over $1 Billion in May Investments + More
© Getty Images/Dan Kitwood

In a dramatic turn of events, Elon Musk has threatened to ban Apple devices within his companies if Apple integrates OpenAI’s ChatGPT into its operating systems at a deep level. Musk, known for his outspoken views on artificial intelligence, views such an integration as a significant security concern. This issue arose as Apple disclosed during the Worldwide Developers Conference that its upcoming software update will include new AI features, notably allowing Siri to utilize ChatGPT to answer user queries. Musk criticized Apple for potentially compromising user privacy and not developing their own AI solutions.

Musk’s Concerns on AI and Privacy

Elon Musk's apprehension stems from his long-standing concerns about AI safety and user privacy. Integrating an AI as sophisticated as ChatGPT into a widely-used operating system could, in Musk's view, open the floodgates to unprecedented privacy risks. "The depth of access to user data that AI like ChatGPT can obtain is alarming," Musk stated. His contention is that Apple should invest in creating its own AI, ensuring that the technology aligns with stringent privacy standards and user control mechanisms.

Apple, on the other hand, has emphasized the benefits of its new AI features. By incorporating ChatGPT, Siri could handle more complex queries and provide users with more nuanced and human-like interactions. This move, Apple argues, is aimed at enhancing user experience and maintaining a competitive edge in the rapidly evolving tech landscape.

Elon Musk
Elon Musk© Getty Images/Nathan Howard

Environmental Campaigns Targeting Cryptocurrency

In another significant development, Greenpeace has intensified its efforts to change Bitcoin’s proof-of-work consensus model to a more environmentally friendly proof-of-stake model. The campaign, “Change the Code, Not the Climate,” argues that Bitcoin’s current energy consumption, largely fueled by non-renewable sources, significantly contributes to environmental degradation.

The Push for a Greener Bitcoin

Bitcoin's energy-intensive proof-of-work mechanism has long been a subject of controversy. Greenpeace's campaign seeks to address this by advocating for a shift to proof-of-stake, a model that consumes significantly less energy. "Our goal is to ensure that the financial innovations brought by cryptocurrencies do not come at the expense of the environment," a Greenpeace spokesperson said.

The campaign has drawn attention by urging prominent figures in the cryptocurrency space to support this transition. By leveraging the influence of key stakeholders, Greenpeace hopes to catalyze a broader movement towards more sustainable blockchain operations. This initiative reflects a growing recognition of the need for environmental responsibility within the tech and finance sectors.

Financial Turmoil and Legal Battles in the Crypto World

Meanwhile, Terraform Labs has agreed to pay the United States Securities and Exchange Commission roughly $4.47 billion as part of its settlement with the securities regulator. However, the agency has to queue up behind secured creditors to receive any payment. In January, when the firm filed for bankruptcy, Terraform had assets worth $430.1 million against liabilities worth $450.9 million. The settlement received court approval on June 13.

Bitcoin© Getty Images/Dan Kitwood

Terraform Labs’ Settlement and Financial Woes

The financial settlement is a significant development in the ongoing saga of Terraform Labs. The company's bankruptcy and subsequent legal battles have been closely watched by the cryptocurrency community and financial regulators alike. The approved settlement reflects the complexities of navigating financial obligations and regulatory compliance in the volatile crypto market.

Implications for the Crypto Industry

This settlement underscores the regulatory scrutiny that the cryptocurrency industry faces. As digital assets become more mainstream, regulatory bodies are increasingly vigilant about ensuring compliance with financial laws and protecting investors. Terraform Labs' case may serve as a cautionary tale for other crypto firms, highlighting the importance of robust financial practices and adherence to regulatory standards.

Investment Trends in the Crypto Sector

KuCoin Research reported that the crypto sector received over $1 billion in investments in May, marking a slight reduction from April but a 10.61% increase from May of the previous year. The total investment disclosed for May was $1.02 billion across 156 transactions. Despite general popularity among institutional investors for Ethereum, EVM-compatible chains, and layer-2 network projects, non-EVM chains like Bitcoin, Solana, Fantom, and TON also ranked among the top 15 networks favored by investors during the month.

Diverse Investment Interests

The diverse range of investments highlights the growing interest in various blockchain technologies. While Ethereum and EVM-compatible projects remain popular, the significant investment in non-EVM chains suggests that investors are looking for innovation and potential across a broader spectrum of the crypto ecosystem. This trend reflects a maturing market where different blockchain solutions are recognized for their unique advantages and potential applications.

Market Performance and Future Outlook

At the end of the week, Bitcoin (BTC) stood at $66,483, Ether (ETH) at $3,464, and XRP at $0.47, with the total market cap at $2.42 trillion, according to CoinMarketCap. Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week were Monero (XMR) at 6.46%, Toncoin (TON) at 4.90%, and Oasis (ROSE) at 3.78%. Conversely, the top three altcoin losers of the week were Wormhole (W) at -35.63%, FLOKI (FLOKI) at -32.97%, and Arweave (AR) at -29.82%.

The Challenges of Bitcoin Price Stability

Bitcoin (BTC) bears have been selling on every rally over the last few months, and analysts believe that a liquidity boost fueled by BTC’s “fresh all-time highs” will help break the cycle. “Market is in need of a big liquidity boost,” pseudonymous crypto trader Daan Crypto Trades wrote in a June 13 post on the X social media network.

Liquidity and Market Dynamics

The trader’s sentiments appear to have been informed by Bitcoin’s “whipsaw” price action as it consolidates within a wide range, stretching from $66,500 to $72,000. Full-swing bleeding and “selling into every pump has been the theme for the past couple of months,” explained the trader, adding that one of the best ways to end this cycle “has always been a fresh all-time high for #Bitcoin.”