Weekly Recap: Hong Kong Introduces Stablecoin, Trump's Memecoin Dinner Sparks Political Backlash

Welcome to the latest edition of ChainPlay's Newsletter, where we dive into the week's most exciting and innovative crypto news.

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Last Week’s VC Biggest Deals

XRP Futures Debuts With Over $1.5 Million in Trading Volume

XRP Futures Debut on CME with $1.5M Volume, Fueling ETF Speculation

CHICAGO – XRP futures commenced trading on the CME Group platform Monday, May 19, recording $1.5 million in volume on their first day. The launch, approved by the Securities and Exchange Commission (SEC) in April, has intensified speculation around the potential approval of a spot XRP exchange-traded fund (ETF).

The move follows the Commodity Futures Trading Commission's (CFTC) classification of XRP as a commodity and aims to meet growing institutional demand for regulated XRP exposure. Notably, the futures are cash-settled, a feature attractive to institutions as it negates the need for direct crypto custody.

Ripple CEO Brad Garlinghouse hailed the launch as a "key institutional milestone," with Hidden Road executing the first block trade. Market observers widely believe that a regulated futures market is a critical precursor for SEC approval of spot crypto ETFs, a sentiment echoed by industry figures like ETF Store President Nate Geraci.

Despite the development, XRP's price remained largely unchanged, trading around $2.33.

Hong Kong Introduces Stablecoin Licensing to Bolster Digital Asset Hub Aspirations

HONG KONG – The Legislative Council of Hong Kong has passed a new law creating a formal licensing system for fiat-referenced stablecoins (FRS). Under the new regulations, all FRS issuers must secure a license from the Hong Kong Monetary Authority (HKMA). This move is a significant step in Hong Kong's ambition to become a global digital asset hub, while also prioritizing investor protection and financial stability .

To obtain a license, issuers will face strict requirements, including robust reserve management, ensuring redemption at par value, segregation of client funds, transparency, and adherence to anti-money laundering (AML) protocols. These measures aim to align Hong Kong with international financial standards .

Christopher Hui, Secretary for Financial Services and the Treasury, stated the law operates on the principle of "same activity, same risks, same regulation." He emphasized that this risk-based approach provides a solid foundation for the growth of Hong Kong's digital asset market and signals the city's evolving perspective on cryptocurrencies .

This regulatory development marks a shift from Hong Kong's previously cautious stance, influenced by past scandals such as the 2023 collapse of the JPEX exchange. The new framework seeks to foster crypto innovation while safeguarding investors. Consequently, only licensed entities will be permitted to issue and market FRS to the public in Hong Kong, with a ban on advertisements from unauthorized issuers even during an initial six-month grace period .

While Hong Kong's stablecoin market is currently modest compared to global giants, the new law offers much-needed clarity and structure. Justin d'Anethan of Liquifi noted that the framework provides clear guidelines on reserves, redemption, and licensing, making it more welcoming for established financial institutions. However, the global stablecoin landscape, particularly for U.S. dollar-backed assets, remains largely dominated by the United States, where lawmakers are also advancing stablecoin legislation like the GENIUS Act.

Hong Kong's stablecoin regulation is anticipated to come into effect later this year, with transitional arrangements to help issuers adapt. This initiative is part of a broader strategic shift by the city towards greater openness and well-defined regulations in its approach to digital assets .

Fartcoin Rally Falters as Smart Money Exits, Bearish Signals Emerge

Fartcoin, a Solana-based memecoin, is showing signs of a downturn after a significant rally that saw its price surge from $0.20 in March to a peak of $1.46 this month. The token has since fallen over 14%, currently trading around $1.21, as several indicators point to waning momentum.

Data from analytics firm Nansen reveals a notable exit of "smart money" investors. The number of such wallets holding Fartcoin has decreased by 16% in recent days, from 44 to 37, with their collective token holdings also declining. This movement by experienced investors often signals profit-taking or anticipation of a trend reversal.

Technically, Fartcoin has formed a bearish rising wedge pattern. Analysts suggest that failure to break above the $1.4677 resistance level could lead to a price breakdown, particularly if it drops below the $1.00 support.

Further caution is warranted by a 9.48% increase in Fartcoin balances held on exchanges. Such a rise typically indicates that holders are preparing to sell, potentially adding to downward price pressure.

While a price recovery is possible, current data suggests a heightened risk of further decline for Fartcoin. The developments serve as a reminder of the volatile nature of memecoins, where rapid gains can often be followed by sharp corrections.

Trump's Memecoin Dinner Sparks Political Backlash and Ethical Concerns

Former President Donald Trump hosted a private dinner at his Virginia golf club for 220 top holders of the $TRUMP memecoin, an exclusive event that drew immediate backlash from lawmakers and public watchdog groups over potential political influence and lack of transparency.

Senators Elizabeth Warren and Adam Schiff voiced concerns about anonymous crypto wallets facilitating foreign influence, while Representative Maxine Waters introduced legislation to bar politicians and their families from crypto asset involvement. Protesters, organized by groups including Public Citizen, gathered outside the venue, decrying "crypto corruption."

The event, marketed as an "exclusive experience" with no press allowed, required guests to submit personal details and wallet addresses. While some attendees like Tron founder Justin Sun and former NBA star Lamar Odom were identified, many remained anonymous, fueling suspicions.

The dinner has intensified scrutiny on the intersection of cryptocurrency, politics, and power, raising ethical questions even within the crypto community. Critics argue such events could hinder serious regulatory reform, while supporters see it as engagement. The gathering underscored the growing, and increasingly controversial, influence of crypto in the political sphere.

Vitalik Buterin Proposes "Local-First" Model to Simplify Ethereum Node Operation

Ethereum co-founder Vitalik Buterin has proposed a "local-first" model aimed at making it easier for average users to run Ethereum nodes on standard consumer hardware. The current requirement of over 1.3TB of storage for a full node presents a significant barrier to participation.

Under Buterin's proposal, nodes would primarily store data relevant to the user, while historical data older than 36 days would be distributed across multiple nodes, similar to a library system. This initiative, aligning with Ethereum's broader strategy including the Pectra upgrade, seeks to enhance decentralization and censorship resistance by reducing reliance on a few powerful providers.

Industry figures like Vanilla Finance co-founder Michael Cameron have lauded the plan as a "breath of fresh air," while acknowledging potential implementation complexities. Analysts like Ryan Yoon of Tiger Research note that increasing node numbers geographically could combat centralization, but careful execution is needed. Despite challenges, the "local-first" concept is seen by the community as a worthwhile step towards a more accessible and decentralized Ethereum network.

Coinbase Faces $400M in Costs After Cybersecurity Breach

Coinbase Faces DOJ Investigation After Cyberattack and $20 Million Ransom Demand

Coinbase is under investigation by the US Department of Justice following a cyberattack where criminals attempted to extort $20 million. The company disclosed that less than 1% of users were affected, and crucially, no customer funds, private keys, or login systems were compromised. Coinbase refused to pay the ransom and is actively cooperating with US and international law enforcement agencies.

The breach may have exposed customer data such as names and email addresses. In response, Coinbase has allocated an estimated $180 million to $400 million for remediation efforts and voluntary reimbursements to affected users. Despite the seriousness of the incident, some Wall Street analysts remain confident in Coinbase's underlying security, with some viewing the consequent dip in its stock price as a potential buying opportunity.

This event underscores the persistent security challenges within the cryptocurrency industry, emphasizing the continuous need for robust defenses by platforms and heightened vigilance from users. The DOJ investigation is ongoing, with Coinbase currently focused on addressing the damage, supporting its customers, and collaborating with authorities.

Xterio (XTER) Launches on Binance Alpha with Airdrop & Trading Contest; Price Dips Post-Debut

Binance officially launched Xterio (XTER), a Web3 gaming ecosystem token, on its Binance Alpha platform on May 19, 2025. The launch featured an exclusive airdrop for eligible users and a significant trading competition.

Binance Alpha users holding at least 194 Alpha Points were able to claim 294 XTER tokens by utilizing 15 Alpha Points within a strict 24-hour window, commencing May 19. Xterio, an entity backed by Binance Labs, concentrates on developing high-quality games and integrating NFTs.

Concurrently, Binance initiated an Xterio Trading Competition, running until June 2, 2025, with 3.85 million XTER tokens available as rewards. The top 14,000 users ranked by XTER purchase volume are set to each receive 275 XTER.

Despite these promotional activities and the listing, the XTER token price reportedly experienced a notable decline of approximately 15-19% following its launch. This price drop is commonly attributed to early airdrop recipients capitalizing on profits, a frequent phenomenon observed with newly listed tokens after airdrop events. These initiatives by Binance are designed to incentivize platform engagement and offer users early access to emerging projects.

New Altcoin SXT Gains Attention with Microsoft Integration

SXT Coin Gains on Microsoft Partnership for Blockchain Data Integration

SXT Coin, a relatively new altcoin, has gained attention following a significant price increase despite a recent Bitcoin downturn. The surge is attributed to a newly announced partnership between Microsoft and Space and Time (SXT), the project behind the coin, revealed at Microsoft's Build conference.

The collaboration will integrate real-time blockchain data into Microsoft's Fabric platform. Space and Time operates a decentralized data warehouse utilizing zero-knowledge proofs to ensure data accuracy and security, a feature valuable for enterprise applications. Microsoft's venture capital arm, M12, was an early investor in Space and Time.

Nate Holiday, co-founder of Space and Time, stated the partnership will empower developers using Microsoft Fabric to build tools across Web3, finance, and AI by providing verified blockchain data. The integration will initially support data from Ethereum, Bitcoin, and Sui. Microsoft Fabric's Chief Product Officer, Sruly Taber, emphasized the goal of providing reliable data and breaking down barriers for developers in Web3 and AI.

This strategic alliance provides SXT Coin with a tangible use case and backing from a major technology corporation, driving investor interest and distinguishing it from purely speculative altcoins.

Portal to Bitcoin Integrates with Babylon Genesis for Custody-less Cross-Chain DeFi on Bitcoin

Portal to Bitcoin, a DeFi technology firm, has announced a strategic integration with Babylon Genesis, a pioneer in trustless Bitcoin staking, to launch a modular, fully custody-less cross-chain infrastructure. This solution aims to scale DeFi using Bitcoin's security as its foundation.

The integration enables Bitcoin holders to secure Proof-of-Stake (PoS) validators with native BTC, execute instant bridgeless atomic swaps between BTC and other assets like ETH and SOL, and immutably record transactions on the Bitcoin network. This approach bypasses traditional custodial bridges and wrapped tokens, allowing direct use of native BTC in cross-chain DeFi applications.

Chandra Duggirala, CEO of Portal to Bitcoin, stated the collaboration aims to transform Bitcoin blockspace into a settlement engine for diverse markets. Clayton Menzel, Head of Business Development at Babylon Labs, added that the integration demonstrates Bitcoin's potential as both capital and a consensus layer for new cross-chain applications, offering builders composability without sacrificing self-custody.

Both companies prioritize user sovereignty, employing cryptographic enforcement to extend Bitcoin’s security measures to connected chains without intermediaries. Portal to Bitcoin utilizes a Layer 3 notary chain anchored to Bitcoin, while Babylon Genesis employs protocols to ensure staked BTC cannot be misappropriated.

Claynosaurz Launches Popkins NFT Collection on Sui, Expanding into Web3 Gaming

Claynosaurz, known for its clay-animated dinosaur NFTs on Solana, is launching a new NFT collection called "Popkins" on the Sui blockchain, signaling a significant move into web3 gaming. The collection will feature 25,000 NFTs distributed through a unique, gamified pack-based minting system.

The Popkins mint will offer three types of packs: "Legendary" (guaranteeing a Popkin), "Escape" (offering a full refund plus digital rewards if no Popkin is obtained), and an exclusive "Rat Pack" for holders of specific prior NFTs. Existing Claynosaurz holders will receive free packs, while the public mint price is set at $200 per pack, with the refund mechanism designed to ensure participants receive value even without securing a Popkin.

This expansion onto Sui allows Claynosaurz to leverage the new blockchain's capabilities for gaming and storytelling while maintaining its original Solana-based community and assets. The project also plans to launch a mobile game in 2025, further integrating its NFT ecosystem with real-time creature battles and collectible-based progression, designed to be accessible to both crypto-native and mainstream gamers.

The Popkins initiative aims to make NFT minting a more engaging and entertaining experience, reflecting Claynosaurz's broader ambition to build an expansive entertainment brand that blends digital collecting with interactive gameplay.

Pixels Ecosystem Update Highlights Strong Staking Engagement and Future Growth Plans

The Ronin-powered social farming MMO, Pixels, has released an update on its $PIXEL Ecosystem, showcasing impressive early results for its token staking feature and outlining future developments. Since launching on May 1st, over 73 million $PIXEL tokens have been staked across Pixels, Pixel Dungeons, and Forgotten Runiverse, indicating strong community engagement.

This staking model rewards players for supporting games that perform well and provides developers with increased visibility. The collected staking data is also utilized to enhance the platform's play-to-earn infrastructure and inform game publishing decisions, with a key metric being "Return on Reward Spend" (RORS).

Forgotten Runiverse, a fantasy MMORPG, saw over 3.6 million $PIXEL staked within ten days of integration, while Pixel Dungeons, a dungeon crawler, had over 300,000 $PIXEL staked in its first two weeks. Both games have implemented updates to improve user experience and engagement, including new features like guilds and referral systems.

Future plans for the Pixels ecosystem include the integration of $vPIXEL, a fee-free utility token, by the end of May, the launch of a new "Pets Game" with social and casual mechanics, and ongoing discussions to bring more third-party games into the $PIXEL staking ecosystem. The team emphasized its commitment to long-term, sustainable growth and a player-driven ecosystem. A "Rizz-to-Earn" event in collaboration with AiVeronica is also currently active, offering $PIXEL and $AIV token rewards.

Cross The Ages Unveils "Arise" RPG with Closed Alpha Launch

Cross The Ages (CTA) is launching Closed Alpha Phase 1 for its new co-op action RPG, "Arise," starting May 28. This initial playtest will offer select CTA Mint Pass holders a limited experience, featuring one dungeon, one playable hero, and a single weapon, to gather feedback on core gameplay mechanics.

The gameplay loop involves completing dungeon runs, solo or with up to four players, to earn crystals and keys for weapon upgrades, with the ultimate goal of obtaining a Tier 7 Mythical Fire Weapon. Reaching level 10 during the alpha will reward players with a "Founder’s Coin." Subsequent alpha phases will introduce more content, including additional dungeons, characters, weapons, and features like crafting and fishing.

Access to the Closed Alpha, running until June 2, requires a CTA Mint Pass, with an eligibility snapshot on May 26. The test is exclusive to Windows via the Epic Games Store, running on Central European servers and has specific hardware recommendations. The full version of Arise is planned to be free-to-play and support multiple platforms.

Ragnarok Landverse Launches "Road to ROLC2025" Guild Tournament

Ragnarok Landverse: Genesis has introduced the "Road to Ragnarok Landverse Championship 2025" (ROLC2025), a competitive league designed for web3 gaming guilds. The multi-phase tournament will see guilds battle for ranking points and a chance to qualify for the main ROL Championship 2025 event.

The competition features two initial seasons of War of Emperium (WoE) battles, termed Minor Events, where guilds fight to capture and control castles, each with assigned point values. Season 1, "Dawn of War," runs from May 31 to June 21, with Season 2, "Clash of Dusk," from July 5 to July 26. Points from both seasons contribute to a main leaderboard, with the top 8 guilds advancing to the Major Event, "Day of Domination."

The Major Event will utilize a Round Robin format followed by an upper and lower bracket system, ultimately qualifying the top 3 guilds for the ROL Championship 2025. Season 1 offers a $30,000 prize pool, with the winning guild receiving $15,000. A separate prize pool will be available for Season 2.

Players can participate by signing up on the official Ragnarok Landverse website and joining or forming a guild. The tournament emphasizes strategy, teamwork, and commitment, offering guilds a structured path to high-level competitive play and rewards.

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