Top Stories

CZ: Hyperliquid’s innovation is impressive, but I won’t follow their approach

Galaxy Research Head: Shares CZ’s comments on Hyperliquid on X. CZ stated: “I think this innovation by Hyperliquid is truly remarkable. They’ve captured a niche market where Binance cannot compete. They operate without KYC and claim to be decentralized.”

CZ also noted, based on his professional experience, he would not adopt Hyperliquid’s current operational model, jokingly adding: “I guess they must have some really strong lawyers.”

SpaceX (SPCX.O) to Acquire Anysphere via Merger, Creator of Cursor

Filings with the U.S. Securities and Exchange Commission reveal SpaceX (SPCX.O) will acquire Anysphere through a merger.

Anysphere, Inc. (commonly referred to as Anysphere Company in Chinese) is a U.S.-based AI software startup, with Cursor as its primary brand and product. The equity valuation of Anysphere stands at $60 billion.

The Korea Times: South Koreans Losing Interest in Cryptocurrency Trading

Retail cryptocurrency trading volume in South Korea reached $69 billion in Q1 2024, ranking second globally after the U.S. at $212 billion. Data shows a 28% year-on-year decline in South Korea’s cryptocurrency trading volume for the quarter—the largest drop among major global markets. In comparison, U.S. volume was $21.2 billion, Russia $4.8 billion, India $4.6 billion, and Turkey $4.0 billion.

Analysts point to the surge in South Korea’s semiconductor sector drawing substantial retail capital. Additionally, the Korean Virtual Asset User Protection Act has raised compliance requirements, restricting domestic exchanges to spot trading only, while overseas platforms offer broader products including derivatives and leveraged instruments.

Industry News

CLARITY Act Proposes $150 Million Allocation to Combat Digital Asset Crime

U.S. Senator Cynthia Lummis announced on X that the CLARITY Act will allocate $150 million to support law enforcement agencies in tracking fraudsters and other illicit actors in the digital asset space, strengthening efforts against crypto-related criminal activities.

ADP Employment Change for Week Ending May 30: +25.5K

The U.S. ADP employment change for the week ending May 30 was +25.5K, compared to a prior figure of +29K.

Illinois to Become First U.S. State to Impose Digital Asset Transaction Tax, Effective 2027

Illinois has become the first state in the U.S. to implement a tax on digital asset transactions. Governor J.B. Pritzker signed SB 3019, which includes the Digital Asset Tax Act, imposing a 0.2% transaction tax on brokers facilitating digital asset trades, transfers, or custody for clients within the state. The tax is expected to take effect on January 1, 2027, and could generate approximately $60 million in annual revenue for the state.

Project Updates

Binance Responds to EU Licensing Controversy: Still Committed to MiCA Compliance

Binance issued a statement on X addressing the EU licensing issue, affirming the company’s continued commitment to serving European users and operating under applicable laws.

Binance stated that as the MiCA transition period nears its end, it is adopting a user-centric, cautious strategy to minimize business disruptions. Further updates and potential alternatives will be disclosed to users once more information becomes available, with plans to release additional details before June 30, 2026.

Additionally, Binance emphasized that over the past 18 months, it has maintained constructive dialogue with regulators and actively participated in the MiCA approval process. Based on its understanding, Greek regulators have completed their review of the application and determined it meets MiCA requirements, and the application has been reviewed at the European Securities and Markets Authority (ESMA) level.

Binance also warned that any delays or deviations in the MiCA authorization process could undermine market liquidity, competition, and user choice, potentially shifting certain activities outside the EU. The company remains committed to achieving compliance under the MiCA framework and will continue to update users on progress.

Ondo: Partners with South Korea’s Largest Asset Manager Mirae Asset to Tokenize Global X ETF Product Line

Ondo Finance announced on X that it has partnered with Mirae Asset, South Korea’s largest asset management firm, to advance the tokenization of its Global X ETF product line via the Ondo Global Markets platform.

Ondo stated that Mirae Asset will become the first asset manager in Asia to bring its existing ETF product line onto the blockchain. The initial rollout will include 10 Global X ETFs spanning artificial intelligence and technology, blockchain and digital assets, robotics and space innovation, lithium and silver, defense technology, and covered call income strategies.

Ondo believes the asset management industry is becoming a key frontier in the financial tokenization revolution, with next-generation capital market infrastructure being built on-chain, and traditional institutions defining the previous financial era now embracing this shift.

Polymarket and Kalshi to Enhance Anti-Fraud Measures During World Cup

Prediction market platforms Polymarket and Kalshi announced they will accelerate deployment of anti-fraud measures during the World Cup to combat potential fraud syndicates, while continuing to expand the range of tradable events.

Reports indicate both companies are integrating more real-world events into prediction markets to boost user engagement and market liquidity. As trading volumes grow, so do associated fraudulent activities. Notably, Kalshi’s annualized revenue reached approximately $1.5 billion in May 2024.

Funding & Investment

DeepSeek’s First Fundraising May Close Soon, with Liang Wenfeng Personally Investing ~¥20 Billion

Multiple investment sources confirm DeepSeek’s first funding round may have already been finalized. Founder Liang Wenfeng personally invested approximately ¥20 billion, making him the largest single investor in this round; Tencent contributed around ¥10 billion; the CATL ecosystem invested roughly ¥5 billion, including contributions from CATL and Puquan Capital; NetEase, JD.com, Monolith (Lisi Capital), and IDG Capital each invested approximately ¥3 billion; Zhengxinggu Investment and Shixiang Technology each contributed about ¥1.5 billion.