Coinpedia Digest: Highlights of this week's crypto news | May 3, 2025
The Coinpedia Digest entry: Highlights of this week's crypto news | May 3, 2025 first appeared on Coinpedia Fintech News
It has been a week of astonishing headlines in crypto – it's true when they say the market never sleeps.
We talk about how investors are excited about news of Bitcoin approaching $100K, the return of institutional crypto strategies, and some gripping legal drama in the NFT space. Believe me, there's more than just numbers here – these movements could be game-changing.
So, have you poured your coffee yet? Buckle up, and let's break down the wildest stories you need to know this week. Let's dive in!
#1 Morgan Stanley enters the crypto arena
It's official – Morgan Stanley is stepping into the world of crypto trading. The investment giant is preparing to offer cryptocurrency trading on its E*Trade platform by 2026. This move signals a significant shift for traditional finance as it steps towards direct crypto markets, competing with platforms like Coinbase and Binance.
So far, Morgan Stanley's crypto exposure has been through ETFs and derivatives for high-net-worth clients, but this new strategy? It's a race to capture the growing retail market.
Will they be able to bypass crypto-native exchanges? Hmm... only time will tell.
#2 Nike faces lawsuit due to RTFKT shutdown – 'Rug Pull', could it happen?
Nike has landed in serious trouble after a class-action lawsuit was filed against them for abruptly shutting down RTFKT, the NFT division they acquired in 2021. Plaintiffs allege that Nike misled NFT buyers by selling unregistered securities and then suspending the project, leading to a sharp decline in NFT value.
This is the latest in a series of legal puzzles for major brands involved in Web3. As NFTs continue to gain popularity, expect more lawsuits of this kind – raising questions about liability, transparency, and whether digital assets should be regulated more similarly to traditional securities.
#3 Vitalik Buterin and the evolution of Ethereum: Big changes ahead!
Vitalik Buterin seems tired of the criticism against Ethereum.
The co-founder of Ethereum proposed massive changes to the network, including increasing gas limits by an astonishing 100 times through EIP-9698. This ambitious plan, aimed at raising the block gas limit from 30 million to 3 billion, will significantly increase transaction throughput without a hard fork.
The goal is to scale Ethereum without breaking it. Buterin also proposed the idea of replacing the Ethereum virtual machine with RISC-V, a modern open instruction set that could bring greater efficiency and scalability to the blockchain.
If implemented, these changes could help Ethereum meet the growing demand for scalability in a multi-chain world.
Also read: Vitalik Buterin's vision for Ethereum 2025: What's next for scalability, privacy, and decentralization?
#4 Ripple's $5 billion offer for Circle rejected
Ripple's ambitious $5 billion offer for Circle was rejected – oh!
Circle, the issuer of USDC, has decided to remain independent, leaving Ripple's stablecoin project (RLUSD) to compete with USDC in the ongoing battle for dominance in the stablecoin market.
However, the story is not over – Ripple's goal of providing global liquidity through blockchain technology remains a huge part of its long-term strategy.
It will be interesting to see if Circle's decision pays off or if Ripple's actions leave them behind.
#5 World brings scanning iris 'orbs' to U.S. cities: Biometric crypto wallets are here!
Sam Altman's blockchain project, World, is launching scanning eye 'orbs' in U.S. cities for mass adoption of biometrically secure crypto wallets. These biometric orbs are designed to enhance the security of cryptocurrency transactions and convenience for users, eliminating the need for complex passwords or hardware wallets.
If successful, this could be a turning point for cryptocurrency adoption, providing a more convenient and secure way for users to access their digital assets. With partnerships with Visa and Tinder, it becomes clear that World has big plans for integrating cryptocurrency into everyday life.
#6 Tether's profit of $1 billion
Tether's latest quarterly report shows an impressive profit of $1 billion, largely driven by its massive holdings of short-term U.S. government bonds. Tether now holds a record $120 billion of these bonds, occupying a key position in the dollar-backed liquidity market.
#7 WLFI partners with the Pakistan Crypto Council
World Liberty Financial (WLFI), backed by the Trump family, has partnered with the Pakistan Crypto Council to support the country's growing crypto ecosystem. This partnership focuses on launching regulated sandboxes, promoting the use of stablecoins in remittances, and exploring decentralized finance.
Pakistan's growing interest in cryptocurrency and blockchain technology is clearly attracting the attention of major players. However, the timing against a backdrop of global tensions certainly raises questions.
Also read: India may use cryptocurrency to weaken Pakistan, avoiding the mistakes of 9/11: Balaji Srinivasan
#8 KiloEX promises compensation after $7M oracle hack
KiloEX, a decentralized trading platform, has committed to compensating users for losses incurred due to a $7 million oracle hack on April 14. The hack disrupted trading activity and caused significant losses for traders.
KiloEX announced that it will fully reimburse users for losses incurred during downtime. They are also offering a special yield-boosting campaign to incentivize deposits until the platform is fully restored.
While compensation is a positive step, it underscores the need for stricter security measures.
#9 Whales loaded up on altcoins in May
At the beginning of May, whale activity surged across several altcoins, signaling a shift in market sentiment.
Avalanche (AVAX) saw a 380% increase in net flows from large holders, which could potentially drive its price to $30 if accumulation continues. Ethereum (ETH) also showed steady growth, with whales acquiring 280,000 ETH. If momentum continues, this could push ETH above the $2,000 mark.
Clearly, whales are gearing up for the next big altcoin rally – are you ready for it?
#10 USD1 Stablecoin to finance Binance's $2B deal
Eric Trump confirmed that USD1 – a new dollar-backed stablecoin from World Liberty Financial – will be used to complete MGX's $2 billion investment in Binance. The deal ties the Trump brand directly to the world's largest cryptocurrency exchange.
Trump also announced that USD1 will be integrated with the TRON blockchain with the support of Justin Sun. What a beautiful way to combine political influence, cryptocurrency infrastructure, and big money – I suppose?
In the spotlight
Here are some quick news items you shouldn't miss!
21Shares applies for the first SUI ETF in the U.S.: The asset manager has just made a bold move to introduce SUI into Wall Street portfolios, resulting in a 9% token increase.
FIFA moves NFTs to EVM-compatible chain: FIFA's digital collectibles become cheaper and faster due to this switch to smart chain – just in time for the next major football drop.
Nasdaq applies for a DOGE ETF from 21Shares: Yes, Dogecoin may soon find itself next to Bitcoin on the ETF menu. Exposure to meme coins is becoming institutional.
Texas judge blocks sanctions against Tornado Cash: A legal victory for open-source advocates. This ruling could change how code and sanctions legislation interact in the U.S.
Robinhood exceeded revenue forecasts despite falling cryptocurrency volumes: The first quarter turned out strong with $927 million, but volatile cryptocurrency volumes are pushing Robinhood to diversify beyond tokens.
Supported by Telegram, Libre tokenizes $500M of debt on TON: Libre has just issued half a billion in tokenized corporate debt, adding serious utility to the TON DeFi story.
Kraken's revenue grew by 29% in the first quarter: Kraken reported solid revenue growth, thanks to increased institutional flows and proving that it remains a major player in the cryptocurrency recovery season.
What's next for cryptocurrencies?
Big trends and even bigger questions ahead!
With Morgan Stanley and BlackRock taking the lead, we will likely see more traditional institutions making significant moves into the crypto space. Expect to see more ETFs, innovations in stablecoins, and tokenization of real assets.
There is growing attention to digital assets, especially NFTs and stablecoins. As regulators tighten control, we are likely to see a clearer legal framework – although no one knows how this will unfold.
Ethereum anticipates updates and may see a strong quarter ahead
Whale activity in altcoins like AVAX and Ethereum suggests that the next big altcoin rally may be on the horizon.
As always, this is an interesting time for cryptocurrency fans and investors. That's all for now. See you next week with the most important events.
