Here is the outline for the newsletter today!🔥

• 🪙 Team Behind CNHC and HKDC Stablecoins Detained

• 💸 People are sending ETH for nothing!?

• 🏦 Traditional Financial Firms Venture into Crypto Space

Team Behind CNHC and HKDC Stablecoins Detained

In a recent development, the team responsible for the CNHC and HKDC stablecoins, which are pegged to the offshore yuan and the Hong Kong dollar respectively, has been detained by Shanghai police.

The Trust Reserve team was taken into custody on May 29, raising concerns and uncertainties about the future of these stablecoin projects.

Earlier this year, KuCoin, a prominent cryptocurrency exchange, closed a $10 million funding round into CNHC, indicating investor confidence in the project. However, with the team behind the stablecoins now detained, the stability and continuity of these initiatives are in question.

It's important to note that this incident occurs within the broader context of China's strict stance on cryptocurrencies.

The country has implemented bans on crypto trading, mining, and bank transactions as part of its regulatory efforts. Additionally, China is actively developing its own central bank digital currency (CBDC), reflecting its focus on centralisation and control over digital assets.t.

The detention of the CNHC and HKDC stablecoin team underscores the challenges and risks associated with operating cryptocurrency projects, particularly in jurisdictions with stringent regulations.

It highlights the importance of regulatory compliance and transparency within the crypto industry.

People are sending ETH for nothing?!

A peculiar trend has emerged on Twitter, with social media influencers asking for Ethereum (ETH) donations without offering anything in return. This new wave of requests has garnered significant attention and raised several concerns within the cryptocurrency community.

One influencer Pauly0x created a wallet address named "yougetnothing.eth" and astonishingly received over $1 million worth of ETH within a 24-hour period.

Talk about easy money🤣

Interestingly, some individuals have employed satire as a way to mock those sending funds to random addresses.

They have promoted an Ethereum-burning wallet, which sarcastically encourages people to send their ETH to an address that effectively destroys the cryptocurrency instead of benefiting the sender.

However, not everyone has taken the trend lightly. A Redditor highlighted the suspicious nature of the requests, suggesting that it could potentially be a money laundering scheme disguised as a social media trend.

This perspective serves as a reminder to exercise skepticism and scrutinise the motives behind such requests.

But hey, if you can post your address and get money for free why wouldn’t you?

Another user scammed people through an emotional rollercoaster by claiming that she had cancer and got people to sympathise on her situation.

As she raised $100k + she then deleted her Twitter and rugged everyone off her stolen NFT project called Pixel Penguins.

This was truly a tough day for Web3 in general.

Traditional Financial Firms Venture into Crypto Space

A notable shift is underway in the cryptocurrency industry as traditional financial firms, including Standard Chartered, Nomura, and Charles Schwab, enter the market by either building or funding new crypto exchange and custody platforms.

These established Wall Street entities are leveraging their reputation, industry expertise, and regulatory approval to compete with native cryptocurrency exchanges like Binance and Coinbase.

Recognising the potential of the crypto business, traditional financial firms are actively attracting clients by offering a combination of trusted brand names and the benefits of their regulatory compliance.

Clients, particularly asset managers, have shown openness to switching from crypto-native groups to traditional-backed companies if they provide similar services.

Furthermore, asset managers trust traditional financial groups to act as custodians for their valuable crypto assets.

To establish a competitive edge and mitigate risks, traditional firms are focused on building more transparent platforms and separating exchanges from asset custody.

This separation aims to avoid conflicts of interest and enhance risk management practices.

By adopting such measures, these firms aim to instill trust and confidence in their clients, assuring them that their assets are being handled in a secure and responsible manner.

The involvement of traditional financial firms in the crypto market is expected to bring greater transparency and convergence in pricing to the industry.

With their established track record in financial markets, these firms are well-positioned to introduce industry best practices and regulatory standards into the crypto space.

✨Bonus News✨

• Defaults by companies are still going to happen. From the US to the EU, maybe this could be the recession.

• Do you have to worry about AI replacing you? Economists think otherwise.

• Australia still looks to trade with the rest of the world instead of China. Could they be wanting to just get on US good side?

Disclaimer: This is not any kind of financial advise. This newsletter is solely informational; it does not constitute investment advice, a solicitation to buy or sell any securities, or a recommendation regarding how to manage your money. Be cautious and conduct your own study, please.