XRP ETF could draw $8B

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Ethereum under fire: Two Prime dumps ETH, calls it ‘statistically broken’

Key points:

• SEC-registered trading firm Two Prime has dropped all ETH exposure, citing unpredictable performance and comparing its behavior to a memecoin.

• ETH has plunged 45–51% YTD, while BTC nears all-time highs and dominates ETF inflows with over $115B in assets.

News - Two Prime, a U.S. SEC-registered algorithmic trading and advisory firm, has publicly abandoned Ethereum, calling the asset “statistically broken” and shifting to a Bitcoin-only strategy. The firm, which has facilitated over $1.5 billion in BTC and ETH loans over the past 15 months, announced the change on May 1, citing deep concerns over Ethereum’s risk profile, leadership, and ecosystem fragmentation.

"ETH now trades like a memecoin rather than a predictable asset," Two Prime stated. It pointed to erratic price behavior, declining ETF interest, and cannibalization by Layer-2 solutions. The firm argued that Ethereum lacks a coherent monetization model and no longer offers the risk-reward structure investors require.

At the time of writing, ETH is down over 50% YTD, trading below $1,850, while Bitcoin hovers near $97,000 and remains just 11% off its all-time high.

Community reacts—bottom signal or fair critique? - Two Prime’s exit sparked reactions across crypto circles. Some dismissed the firm as irrelevant; others took the critique as a contrarian “bottom signal” for ETH. Observers also noted the irony that Ethereum, despite ETF struggles, still leads all altcoins with $9.2 billion in AUM, far above Solana or XRP.

Solana on the rise? - Two Prime praised Solana as a faster, more developer-friendly chain with clearer value capture. Meanwhile, critics accused Ethereum’s leadership of mission creep and slow innovation.

As the Ethereum Foundation restructures under new co-directors, many are watching whether the protocol can regain clarity—or whether the institutional exodus has only just begun.

XRP ETF hype builds: $8 price target, $8.3B inflows projected by 2026

Key points:

• Standard Chartered predicts XRP could hit $8 by 2026 if ETF inflows reach up to $8.3B, based on BTC/ETH NAV ratios.

• Bitfinex urges caution, citing potential demand dilution across altcoin ETFs and XRP’s legal history.

News - As the XRP ETF race heats up, Standard Chartered has set a bold forecast: $8.3 billion in inflows and an XRP price target of $8 by 2026. The bank modeled its projection on net asset value (NAV) benchmarks seen in Bitcoin and Ethereum ETFs, where NAV as a share of market cap ranges from 3% to 6%. Applying this to XRP’s current market cap yields inflow estimates between $4.4B and $8.3B.

Geoff Kendrick, head of digital assets research at Standard Chartered, also predicts XRP will rise to $5.50 by end-2025, $8.00 in 2026, and $12.25 by 2029, provided U.S. spot ETF approval is secured. Kendrick believes XRP will track BTC growth, though at a lower pace due to inflation differences (6% for XRP vs. 0.8% for BTC).

Mixed outlook: Bitfinex warns of altcoin ETF saturation - Bitfinex analysts struck a more cautious tone, warning that investor attention may be spread thin as more altcoin ETFs come online. While XRP is backed by real demand—evidenced by whale accumulation and sustained spot premium—Bitfinex argues it may struggle to replicate the massive inflows seen in Bitcoin ETFs.

Technical setup favors rally - On-chain data from Glassnode shows a steady rise in wallets holding ≥10,000 XRP, and analysts are watching a falling wedge pattern that could trigger a breakout toward $3.78 by June, implying a 70% upside if confirmed.

Approval odds rising - Polymarket odds peg XRP ETF approval at 79% by December 31. Bitwise, Grayscale, WisdomTree, Canary, and 21Shares have all filed applications, with October 12 marked as the final decision date for Bitwise’s filing.

U.S. moves to cut off $98B crypto giant Huione over North Korea ties

Key points:

• U.S. Treasury’s FinCEN has proposed barring Cambodia’s Huione Group from the U.S. financial system due to its role in laundering crypto for scams and North Korean hackers.

• Blockchain firm Elliptic estimates Huione received $98B in crypto since 2014; it also launched a stablecoin (USDH) in January to bypass asset freezes.

News - The U.S. Treasury is cracking down on Cambodia-based Huione Group, proposing to cut it off from the American banking system for allegedly facilitating billions in crypto-linked cybercrime and fraud. The Financial Crimes Enforcement Network (FinCEN) has formally invoked Section 311 of the Patriot Act, labeling Huione a “primary money laundering concern.”

According to Elliptic, Huione has received $98 billion in crypto since 2014—via schemes ranging from pig butchering scams to cross-border money laundering. It allegedly served as a key hub for North Korea’s Lazarus Group, which has stolen more than $3 billion in crypto since 2018. Elliptic also traced $150K in crypto to Huione from Lazarus in just the past year.

“Marketplace of choice for cybercriminals” - Huione operates a sprawling ecosystem that includes the Telegram-based marketplace Haowang Guarantee, crypto exchange Huione Crypto, and payment platform Huione Pay. Through these, users could access personal data, buy money laundering services, and even acquire electric shackles, according to U.S. officials.

To evade restrictions, the group launched its own dollar-pegged stablecoin (USDH) in January. Unlike USDT or USDC, USDH cannot be frozen by third-party issuers—making it a preferred rail for illicit activity, FinCEN warned.

Cambodia reacts, but risks persist - The National Bank of Cambodia revoked Huione’s payment license in March, noting digital asset firms aren’t permitted to operate in the country. But FinCEN’s proposed rule aims to block Huione’s access through foreign banks with U.S. correspondent accounts.

Public commentary is open for 30 days before the proposal can take effect.

MOVE meltdown: Co-founder suspended amid $38M dump scandal, Coinbase delisting

Key points:

• Movement Labs has suspended co-founder Rushi Manche after a market maker deal triggered a $38M token dump and ongoing third-party audit.

• Coinbase will suspend MOVE trading on May 15; Binance already banned Web3Port, the firm behind the dump.

News - Movement Labs has suspended co-founder Rushi Manche following explosive revelations around a market maker scandal that sparked a $38 million dump of the MOVE token and led to Coinbase delisting the asset. The token fell over 20% following the news, hitting a new all-time low.

The issue centers on a deal Manche reportedly orchestrated between the Movement Foundation and a shell entity named Rentech, allegedly posing as a subsidiary of Web3Port. Internal documents show Rentech appeared on both sides of the agreement—once as Web3Port’s agent and again as a representative of the Foundation. Legal counsel flagged the deal as "possibly the worst agreement" they’d ever reviewed.

Within 24 hours of MOVE’s launch in December 2024, 66 million tokens (5% of supply) were dumped into the open market, collapsing prices and eroding community trust. Binance later banned Web3Port for misconduct and froze the alleged $38M in profits.

Governance failures under scrutiny - Groom Lake, a private intelligence firm, is leading an independent audit to investigate Manche’s role in pushing the deal through. Despite earlier legal red flags, Manche reportedly remained active in both Movement Labs and the nonprofit Foundation.

MOVE faces major exchange fallout - Binance offboarded the implicated market maker in March. Now, Coinbase will suspend MOVE trading on May 15, citing failure to meet listing standards. Movement Labs stated the dump occurred "against our wishes, without our consent."

As the Movement community reels, Telegram moderators confirmed the suspension and asked members to await the audit’s outcome.

More stories from the crypto ecosystem

• THREE reasons why Bitcoin is set to hit $107K next!

• Coinbase exec – U.S. could secretly unlock $100B for Bitcoin using gold revaluation loophole

• MOVE traders keep buying, DESPITE concerns over Foundation’s insider trading – Why?

• Ethereum’s Vitalik Buterin unveils 2025 goals – Impact on $1.9K price target? 

• How and why PENGU could soon face a 40% price drop

Crypto scams uncovered

• Deepfake scams surge with AI technology: Scammers are increasingly using AI-generated deepfake videos to impersonate public figures like financial experts Martin Lewis and Martin Wolf, promoting fake crypto investment schemes. These realistic videos have led to significant financial losses, including a $25 million scam involving UK firm Arup. 

• Celsius Network founder faces 20-year sentence: Alexander Mashinsky, founder of the failed crypto lending platform Celsius Network, is facing a potential 20-year prison sentence. He misled investors about the safety of their funds, engaging in risky, uncollateralized loans and market bets, leading to the platform's bankruptcy in 2022 and over $20 billion in customer losses.

• Bitcoin ATM fraud hits Arizona residents: Arizona officials report a rise in Bitcoin ATM scams, where fraudsters trick individuals into depositing cash into Bitcoin ATMs under false pretenses, such as fake investment opportunities or urgent bill payments. These scams have resulted in millions of dollars in losses for residents.

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Top 3 coins of the day

Quant (QNT)

Key points:

• QNT climbed 1.70% to $83.90, extending its breakout run with Parabolic SAR firmly below the candles.

• MACD histogram strengthened further, with wide separation between the MACD and signal lines confirming strong bullish momentum.

What you should know:

Quant closed at $83.90 after gaining 1.70%, adding to its impressive rally that started in mid-April. The price remained comfortably above key levels as Parabolic SAR continued to print dots well below the candlesticks, confirming an intact uptrend with minimal signs of exhaustion. Additionally, the MACD indicator further supported bullish conviction, with histogram bars growing consistently over the last few sessions. The blue MACD line extended its lead over the signal line, suggesting upward momentum remained strong. Volume, although not explosive, stayed steady throughout the rally—indicating sustained buying interest without signs of panic or froth. With the $85 level now within reach, QNT could target $88–$90 as the next resistance zone if the current trajectory holds. In case of a pullback, $78 may serve as initial support to watch.

Litecoin (LTC)

Key points:

• LTC traded at $88.82 after a flat session, hovering near the upper Bollinger Band as it consolidates recent gains.

• MACD remained bullish, but histogram bars began to flatten, hinting at a potential pause in upward momentum.

What you should know:

Litecoin ended May 2 nearly unchanged at $88.82, reflecting indecision after a steady multi-week rally. Price action stayed close to the upper Bollinger Band, a typical zone where assets may face resistance or slow down. The narrowing gap between candles and the band suggested that bullish momentum could be fading without a strong breakout catalyst. The MACD line continued to trend above the signal line, maintaining a bullish crossover, but the histogram showed signs of flattening—possibly indicating weakening upward pressure. Volume remained consistent but did not reflect a surge in buyer activity, reinforcing the likelihood of consolidation in the near term. Market sentiment has stayed cautiously optimistic after LTC’s improving technical posture and bullish predictions that suggest potential upside if key levels are cleared. If bulls push above $91, the next resistance to watch would be $95. Meanwhile, support rests at the midline around $81.50.

Movement (MOVE)

Key points:

• MOVE surged 7.30% to $0.20 after rebounding from an intraday low, though selling pressure remained visible.

• The DMI showed a rare crossover, with +DI reclaiming a narrow lead over -DI, hinting at a shift in directional strength.

What you should know:

MOVE posted a sharp 7.30% intraday recovery, closing at $0.20 after plummeting to fresh lows earlier in the day. This price action came amid high volatility and increased trading volume following news that Coinbase had officially delisted the token, triggering mass panic and sparking accusations of a market-making scandal involving its co-founder. Despite the chaos, MOVE managed to rebound from heavy selling, aided by short-term bargain hunters or speculative entries. The 9-day SMA, however, remained well above the current price, reflecting a bearish macro trend that hasn’t been invalidated yet. Interestingly, the Directional Movement Index (DMI) flashed a potential inflection, with the +DI (green) line slightly overtaking the -DI (red) line. This shift, alongside a recovering ADX above 30, pointed to a possible trend reversal—but the broader outlook remains fragile. If the rebound holds, MOVE could attempt to retest resistance near $0.23. However, if another wave of dumping resumes, the $0.15–$0.13 range may come under pressure again.