Author: Faith Yakubu

The memecoin market has surged, with its market cap reaching $58 billion and posting a 10% gain in the last 24 hours, outpacing the broader cryptocurrency market, which saw a 5.5% increase over the same period.

The top five memecoins, comprising around 77% of the total market cap, have seen significant gains. Notably, Shiba Inu recorded a rally of over 7% in the past 24 hours and 12% over the past week. Other major memecoins, such as dogecoin, pepe, and floki, have also experienced notable increases.

Wintermute analysts attribute the surge to “fast money,” with a focus on memecoins like $PEPE, $BONK, $FLOKI, and others. However, popular trader DonAlt warned of potential losses for memecoins, cautioning against heavy investments in a dog or cat-themed coins.

While debate ensues regarding the future of memecoins, the wider cryptocurrency market rallied following a softer inflation print. Bitcoin prices increased by about 2.5% after April CPI data came in lower than expected. Investors view this as a bullish sign, marking a potential regime shift after the U.S. Federal Reserve announced its intention to taper its quantitative tightening.

Despite the positive sentiment, analysts emphasize that inflation remains above 3%, and recent Producer Price Index data showed a third consecutive monthly increase. The market awaits further guidance from the Fed regarding its response to the inflation data.

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Analysts suggest that Bitcoin derivatives traders are willing to pay a premium for short-term downside protection, despite a more optimistic outlook for longer-term options distributions.

CF Benchmarks’ analysis of Chicago Mercantile Exchange (CME) options on bitcoin futures reveals that investors continue to pay elevated premiums for out-of-the-money (OTM) puts, indicating a bearish sentiment in the short term. This trend persists even after a softer U.S. Consumer Price Index (CPI) inflation report.

The analysts highlight a “flatter” volatility curve for longer-dated options, with a slight skew towards calls. This suggests a more positive outlook for Bitcoin’s longer-term prospects. They note that increased institutional involvement may contribute to this trend, as institutional investors tend to exhibit less extreme swings in sentiment.

Options, which provide traders with the right but not the obligation to buy or sell an underlying asset at a predetermined price, are being closely monitored for indications of market sentiment. While call options imply a bullish stance, put options suggest a bearish sentiment.

In related news, the Financial Times reports that the CME Group is considering launching bitcoin spot trading alongside its existing futures products. This move would cater to traders seeking regulated platforms for cryptocurrency transactions and could enable profit opportunities through basis trades, leveraging the difference between futures prices and spot prices.

While the launch of bitcoin spot trading on CME has not been finalized, it underscores the growing interest in regulated cryptocurrency trading platforms. CME Group, already a major player in bitcoin futures trading, declined to comment on the potential expansion.

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Mastercard (NYSE:MA) has announced the selection of five startups to participate in its digital assets program, which aims to foster the development of blockchain use cases.

The chosen startups will join Mastercard’s Start Path blockchain and digital assets program, focusing on the creation of blockchain use cases and user experiences.

Through this initiative, Mastercard (MA) will collaborate with industry experts and fintech firms to explore various applications of digital assets and blockchain technology in addressing real-world challenges.

In a press release issued on Wednesday, Mastercard (MA) highlighted its extensive experience in building a global payments network based on cards, positioning itself to connect regulated money, bank deposits, stablecoins, and central bank digital currencies (CBDCs) with startups’ specific use cases. The program aims to innovate new solutions and improve efficiencies in digital commerce user experiences.

The Five Selected Startups 

1. Kulipa: A French-based company that facilitates crypto payment card issuance for digital wallets.
2. Parfin: A UK-based firm specializing in enterprise-grade software products to assist financial institutions in adopting blockchain rails.
3. Peaq: Headquartered in Singapore, peaq offers permissionless, borderless digital infrastructure for real-world applications.
4. Triangle: A U.S.-based startup focusing on sustainability through a data platform that integrates climate data with finance.
5. Venly: Based in Belgium, Venly simplifies blockchain integration for developers and businesses to support industry growth and digital transformation.

Mastercard’s Start Path program will offer selected blockchain, digital assets, and Web3 startups opportunities for collaboration, customized training, and access to Mastercard’s customer base and distribution channels throughout the virtual four-month program.

Since its inception in 2014, Mastercard (MA) has supported over 400 startups from 54 countries through the Start Path program.

Axel Cateland, the founder of Kulipa, expressed enthusiasm about the program, stating, “Through Mastercard Start Path, we’re looking to uncover new ways to unlock crypto mass adoption and wider financial inclusion with convenient, global stablecoin payments.”

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Circle (CIRC) recently submitted court documents to transfer its legal domicile to the United States from Ireland, as reported by a spokesperson for the company.

Circle (CIRC) initiated the relocation of its legal headquarters to the United States from Ireland. The company, which is the issuer of the second-largest stablecoin, announced its intention to go public in the United States back in January.

According to Bloomberg’s report on Wednesday, Circle (CIRC), the issuer of the USDC stablecoin, aims to establish the United States as its new legal base in anticipation of an upcoming initial public offering in the country. The spokesperson, mentioned in the report, refrained from providing detailed explanations for the move.

Circle (CIRC), which formally applied for a public listing with the U.S. Securities and Exchange Commission (SEC) earlier this year, is currently headquartered in the Republic of Ireland.

With a market capitalization of approximately $33 billion, Circle’s (CIRC) USDC holds the position of the second-largest stablecoin in the cryptocurrency market, as per CoinMarketCap’s data. Tether’s USDT, valued at $100 billion, occupies the top spot.

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Coinbase, a prominent cryptocurrency exchange, is currently grappling with a system-wide outage, prompting concerns among users. The exchange has swiftly responded to the situation, assuring customers that their funds remain secure while its team diligently works on resolving the issue.

In a recent announcement, Coinbase acknowledged the outage and disclosed that its team is actively investigating the underlying cause. Despite the disruption, the exchange emphasized that users’ funds are safe, aiming to alleviate any potential concerns regarding the security of their assets.

As of now, accessing Coinbase’s website results in a “503 Service Temporarily Unavailable” alert, indicating the extent of the technical difficulties being faced by the platform.

This isn’t the first instance of technical challenges for Coinbase. In March, the exchange encountered similar issues, including disruptions to its trading platform during periods of heightened activity. Some users even reported inaccuracies in their account balances, further underscoring the importance of swift and transparent communication from the exchange during such incidents.

While system-wide outages can be disruptive, Coinbase’s proactive response and assurance regarding the safety of users’ funds reflect its commitment to maintaining trust and transparency within the cryptocurrency community. As the exchange works to resolve the current issue, users can expect updates from Coinbase regarding the restoration of services and any further developments.

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