MOVE Token Plunges 50% Amid Governance Crisis and Market Making Scandal
Background Ethereum Layer 2 project Movement Labs is under fire following the suspension of its cofounder, Rushi Manche, as part of a wider investigation into a controversial market-making agreement. The crisis has severely damaged investor confidence, triggering a sharp drop in MOVE token value and raising concerns about the project’s internal governance.
Key Points
On May 2, Movement Labs officially suspended Manche following an investigation led by audit firm Groom Lake into a market-making deal involving Rentech.
The Movement Foundation claims it was misled, initially believing Rentech was affiliated with Web3Port. The agreement included unusual profit-sharing terms based on MOVE’s valuation.
One clause reportedly allowed Rentech to keep 50% of profits if MOVE reached a $5 billion valuation, a setup that may have incentivized manipulation.
MOVE has fallen over 50% in the past month and is now 85% below its all-time high of $1.20. It also trades 70% below the $0.64 buy price paid by Trump-affiliated WLFI.
On May 1, Coinbase delisted the token, and Movement Labs postponed its major incentive campaign, MoveDrop, pending the outcome of the investigation.
Key Takeaway The MOVE controversy underscores the reputational risk tied to opaque token deals and poor governance, particularly when incentive structures may encourage manipulation. The investigation’s results will be critical in determining the project's viability going forward.
U.S. App Store to Permit Crypto and NFT Apps to Bypass Apple’s 30% Fee
Background In a major shift for Web3 developers, Apple has been forced to revise its App Store rules in the U.S. following a legal defeat in its long-standing dispute with Epic Games. The decision opens the door for crypto and NFT apps to bypass Apple’s 30% in-app purchase fee—potentially reshaping the mobile crypto ecosystem.
Key Points
A U.S. district court ruled that Apple must allow app developers to include links to external purchasing options, which are not subject to its in-app commission fees.
Apple has updated its U.S. App Store guidelines, now permitting these links, although the company has said it plans to appeal the ruling.
NFT apps like OpenSea, previously restricted to browsing-only functionality, and crypto wallets such as MetaMask, which used workaround browsers, may now offer direct purchase capabilities.
Globally, Apple still enforces restrictions on external payment links, and prohibits mining and reward-based crypto apps.
This case stems from Epic Games’ 2020 lawsuit after Apple removed Fortnite from the App Store when Epic tried to bypass Apple’s fee—a saga that may now have broader Web3 implications.
Key Takeaway The ruling is a landmark moment for the crypto industry, enabling more open, fee-free access to decentralized commerce through mobile apps. It could catalyze a new wave of NFT and token-powered platforms on iOS—at least in the U.S.
Google Wallet integrates zero-knowledge proofs for private digital ID
Background Google is rolling out zero-knowledge proof (ZK-proof) technology into Google Wallet, starting in the UK and expanding to the US and other regions. The move aims to offer a privacy-preserving method for verifying user identity, especially for age checks, without revealing personal details — a capability rooted in cryptographic innovations popularized in the crypto space.
Key Points
Google Wallet will use custom ZK systems designed with technology from Ligero, a startup backed by Galaxy Ventures, 1kx, and others.
The new feature will allow users to prove eligibility (e.g., age) without revealing specific identity information.
While Google didn’t confirm blockchain use, the tech will be open-sourced for other wallets and service providers.
The system builds on privacy principles developed in crypto-native protocols, like zk-SNARKs and zk-Rollups.
Google aims to integrate this feature with services like Amazon, CVS, Uber, and domestic airport TSA checks, making it a core tool for online and offline verification.
Key Takeaway Google’s adoption of ZK-proofs marks a major step in bringing crypto-borne privacy tech to the mainstream, transforming digital identity from a data liability into a self-sovereign asset.
Trump-linked USD1 stablecoin to be used in Binance’s $2B MGX deal
Background World Liberty Financial’s USD1 stablecoin is set to play a pivotal role in closing MGX’s $2 billion investment in Binance. The move gives USD1 its first major institutional use case and marks a significant milestone for the Trump-affiliated crypto project, which is positioning itself against dominant players like USDT and USDC.
Key Points
Abu Dhabi-based investment firm MGX will use USD1 to finalize its $2 billion stake acquisition in Binance, announced in March.
The confirmation came during Token2049 Dubai, where WLFI co-founder Zach Witkoff revealed USD1 would be the “official” stablecoin for the transaction.
Initial MGX announcements did not specify which stablecoin would be used in the deal, making this a significant branding win for USD1.
World Liberty Financial — a DeFi project tied to Donald Trump and his sons — launched the WLFI token in October and unveiled USD1 in March.
USD1 is reportedly fully backed by USD deposits, Treasurys, and cash equivalents, and an airdrop to WLFI holders is under consideration.
The announcement follows WLFI’s MOU with the Pakistan Crypto Council, and comes after former Binance CEO CZ joined the PCC as an advisor.
Binance, the largest crypto exchange by volume, processed $483 billion in April, 37.7% of global spot trading activity.
Key Takeaway By anchoring a $2 billion institutional deal, USD1 is making a high-profile entrance into the stablecoin race — but it will face fierce competition from market giants Tether and Circle, which currently control over 90% of the market.
Tether Posts $1B in Q1 Profit, Holds $5.6B in Excess Reserves
Background Tether, issuer of the USDT stablecoin, has reported $1 billion in profit for Q1 2025, bringing its excess reserves to $5.6 billion. Though down from the previous quarter’s $7.1 billion, the results show sustained profitability amid massive growth in stablecoin circulation and continued diversification into AI, renewable energy, and infrastructure.
Key Points
Tether holds $98.5 billion in direct US Treasurys and $23 billion in repo and cash-equivalent exposure.
The company reported $1 billion in operating profit and now has $5.6 billion in excess reserves backing USDT.
USDT’s market cap rose by $7 billion in Q1, reaching $149 billion, alongside a 46 million user wallet increase.
Tether has invested over $2 billion in strategic sectors, including AI, renewable energy, and peer-to-peer infrastructure.
European regulators have raised concerns about global financial risk tied to overreliance on dollar-backed stablecoins like USDT and USDC.
Key Takeaway Tether continues to dominate the stablecoin market with aggressive expansion and deep US Treasury exposure, but growing scrutiny from regulators suggests its systemic footprint is becoming too large to ignore.
Sonic Rallies Ahead of Sonic Summit
Background Layer-1 blockchain Sonic is seeing renewed momentum as its S token jumps sharply ahead of next week’s Sonic Summit. The rally is driven by a combination of market-wide altcoin strength, speculative anticipation around the event, and a new Binance Wallet integration that could expand access to the Sonic ecosystem.
Key Points
Sonic’s S token is up 17% in the last 24 hours, rising from $0.49 to $0.58 and bringing its market cap to approximately $1.8 billion.
The token is second among large-cap gainers, only behind VIRTUAL, reflecting strong short-term momentum.
The surge comes just days ahead of the Sonic Summit, a three-day flagship event starting May 6 featuring keynotes, hackathons, and panels from Sonic Labs and ecosystem developers.
Binance Wallet has integrated with Sonic, potentially broadening the chain’s user access — although adoption data is still unavailable.
Sonic previously rebranded from Fantom (FTM) and launched its mainnet in December 2024, with FTM holders given the option to migrate to S.
The project raised $10 million in strategic funding in May 2024, and has since positioned itself as a scalable alternative Layer-1.
Key Takeaway With momentum building around the Sonic Summit and new infrastructure integrations coming online, market participants are betting on further upside for Sonic — both in terms of adoption and price.
AI Agent Token VIRTUAL Surges 32% on Genesis Launch Updates
Background VIRTUAL, the native token of AI agent platform Virtuals Protocol, is experiencing renewed momentum after key updates to its Genesis launch system were revealed. These updates focus on enhancing transparency around token allocations and reward structures—key concerns in the AI token space.
Key Points
VIRTUAL is up 32% in the last 24 hours and 130% over the past 7 days, pushing its market cap above $1 billion for the first time since February.
The surge follows an April 30 update to Genesis, Virtuals Protocol’s Ethereum L2-based launchpad, which now lets developers publicly display vesting and locking schedules for token allocations.
Genesis enables developers to lock up to 50% of unallocated supply and tag distributions by category, such as “core team” or “marketing,” giving users full visibility on token flows.
Virtuals told its users (known as “Virgens”) the change adds “more transparency, less risk” and encourages thorough due diligence before supporting projects.
A May 1 follow-up update introduced point staking for “Recognized Staked Agents,” incentivizing builders of AI agents who engage with the Genesis platform.
The token’s price also benefited from a recent Binance.US listing, adding significant retail accessibility and credibility.
Key Takeaway Virtuals Protocol is leveraging transparency and developer tooling to position itself as a trusted platform in the fast-growing AI token space. With fresh updates and exchange listings, investor interest in VIRTUAL appears to be accelerating rapidly.
Sam Altman’s World Off by 14 Million in Eyeball Count
Background World (formerly Worldcoin), Sam Altman’s biometric crypto identity project, appears to have significantly overstated the number of users who have actually scanned their irises in exchange for a World ID. This misstatement comes amid broader scrutiny of the project’s expansion strategy and previous inflated projections.
Key Points
World Chain’s X account claimed 26.1 million World IDs issued, but World’s own site lists just 12.35 million “unique humans” verified via eyeball scans—a discrepancy of nearly 14 million.
The higher number appears to count World App signups, not actual biometric verifications, misleadingly conflating total app users with verified identity holders.
This is not the first time World has exaggerated its metrics—the project missed its original goal of onboarding 1 billion users by 2023 by nearly 988 million.
Despite the misreport, World announced several high-profile partnerships this week, including:
Integration with dating apps like Hinge and Tinder through a partnership with their parent company.
A new World Card allowing users to spend WLD tokens anywhere Visa is accepted.
The expansion of World ID availability to U.S. users, who are now eligible to receive WLD.
However, World’s claim of 824,100 U.S. users raises eyebrows, given that it would require each of the 347 U.S.-based orbs to scan 2,375 people overnight.
Key Takeaway World continues to blur the lines between verified users and app downloads, fueling skepticism around its metrics. While the project expands its reach, questions about its transparency and execution are mounting.
CZ aims to teach 1 billion kids through Giggle Academy
Background Former Binance CEO Changpeng “CZ” Zhao unveiled ambitious plans at Token2049 Dubai to educate up to one billion children globally through his new free learning platform, Giggle Academy. Using gamification and AI, CZ hopes to build an engaging global education tool accessible to everyone, regardless of location or income.
Key Points
CZ aims to educate 100 million to 1 billion children for free using Giggle Academy.
The platform focuses on gamified elementary education, designed to keep kids engaged through interactive content.
Generative AI plays a key role in producing scalable, high-quality educational materials.
Giggle’s roadmap includes non-traditional subjects like negotiation, finance, blockchain, and AI.
CZ stepped away from Binance in 2024 to focus on this project after completing a 4-month U.S. prison sentence for AML violations.
Key Takeaway Giggle Academy represents CZ’s pivot from crypto leadership to educational impact, leveraging AI and gamification to build what he hopes will become the world’s most accessible free learning platform.
Tornado Cash prevails in court as judge bars new sanctions
Background Tornado Cash users have won a major legal victory in a long-running U.S. sanctions case. A federal judge ruled that the U.S. Treasury cannot re-sanction the crypto privacy protocol, marking a significant moment for open-source software and digital privacy rights in the crypto space.
Key Points
A Texas federal judge barred the U.S. government from re-sanctioning Tornado Cash after it was removed from the SDN list in March.
The initial 2022 sanctions were based on the protocol’s alleged use by North Korea’s Lazarus Group to launder $455M in stolen crypto.
Plaintiffs argued that Tornado Cash is immutable software, not a person or entity, and cannot be sanctioned under current national security law.
The appeals court agreed, stating that the Treasury overstepped its authority by applying sanctions to open-source code.
The ruling followed the Treasury's claim that it could re-sanction Tornado Cash at its discretion—a claim now blocked by the court’s decision.
Despite the win, co-founder Roman Storm still faces criminal charges in the U.S., while Roman Semenov remains at large and Alexey Pertsev was convicted in the Netherlands.
Key Takeaway This court decision sets a powerful legal precedent, affirming that immutable software like Tornado Cash cannot be arbitrarily sanctioned by the government—a meaningful step forward for crypto privacy and developer rights.
Ubisoft, LayerZero Launch Network for Cross-Chain Gaming Assets
Background Ubisoft has unveiled a major infrastructure initiative with LayerZero: the Decentralized Verification Network (DVN), a system designed to securely transfer gaming assets across over 130 blockchains. As the gaming giant continues to build on multiple networks, DVN aims to solve long-standing challenges in asset ownership and interoperability.
Key Points
Ubisoft’s new Decentralized Verification Network (DVN) is designed to enhance security and allow seamless cross-chain transfers of gaming assets.
Built in collaboration with LayerZero, the DVN integrates with Ethereum, Solana, Polygon, and more than 130 blockchain ecosystems.
DVN introduces a "decentralized verification layer" to preserve digital ownership and integrity across chains, addressing one of the industry’s core vulnerabilities.
Ubisoft has previously supported multiple chains, including launching NFTs on Tezos and games on Oasys and Arbitrum.
The company’s latest titles, including Champions Tactics: Grimoria Chronicles and Might & Magic: Fates, show a growing commitment to Web3 gaming models and asset interoperability.
Key Takeaway Ubisoft’s launch of DVN positions it as a leader in the push toward a unified, secure, and decentralized infrastructure for Web3 gaming—marking a significant step toward making cross-chain gaming assets viable at scale.
Mantra links OM token crash to risky crypto exchange policies
Background Decentralized finance platform Mantra has addressed the sudden collapse of its OM token, highlighting systemic risks across the crypto industry and calling for coordinated efforts to review centralized exchange policies—particularly around leveraged trading. Mantra insists the issue reflects broader market fragility rather than a project-specific flaw.
Key Points
Mantra said the OM crash was “bigger than Mantra,” citing liquidation cascades caused by aggressive leverage on centralized exchanges.
CEO John Mullin emphasized that these risks could affect any token, and urged industry-wide dialogue on reforming exchange leverage policies.
Mantra is now working with major exchanges to improve market stability and is encouraging community input on ways to protect investors.
In response to the crash, Mantra announced governance upgrades, including plans to halve internal validators and onboard 50 external partners by Q2 2025.
The platform has also burned 150 million staked OM tokens, reducing circulating supply, and launched a real-time dashboard for tokenomics transparency.
Mantra has begun alpha testing Omstead, a new EVM-compatible testnet aimed at boosting technical resilience.
Despite the volatility, the Mantra chain remained operational at full capacity during the crash with record-high transaction volumes.
Mullin did not name specific exchanges but noted the danger of allowing users to take leveraged positions using their own project tokens.
Though social media speculated OKX played a role in the crash, the exchange declined to comment or engage in proposed industry collaboration.
Key Takeaway Mantra’s OM crash has reignited scrutiny of centralized exchange leverage policies, with the project pushing for industry-wide change to mitigate similar risks in the future. While internal reforms are underway, the broader market's response remains muted.
Solayer Token Rallies 15% Amid Surging Volume
Background Solayer’s native token LAYER surged 15% on Tuesday as traders responded to bullish sentiment and mounting interest in the protocol’s approach to Solana scalability. Built on a mix of hardware acceleration and Layer 2 architecture, Solayer has positioned itself as a notable contender in the restaking and infrastructure race.
Key Points
LAYER reached $3.20, pushing its market cap to $673 million, up 63% over the past week and 104% over the last month, per CoinGecko.
24-hour trading volume hit $288 million, a 62% increase from the previous day, reflecting heightened market participation.
Analysts attribute the rally to a combination of speculative buying, bullish sentiment, and excitement around Solayer’s tech stack, which includes hardware acceleration and optimized consensus.
Robert Cannon of Experity Wealth cited forecasts of 200%+ near-term gains as an additional driver of demand.
LAYER launched earlier this year as the governance token for the protocol and is supported by the Solayer Foundation, a non-profit promoting R&D.
Solayer Restaking, introduced in May 2024, now ranks among the top 10 restaking protocols with $109 million TVL, according to DeFiLlama.
Douglas Colkitt emphasized that Solayer’s architecture directly tackles performance limits that have historically challenged blockchain scalability.
Key Takeaway Solayer’s strong price action reflects growing investor confidence in its scalability-focused infrastructure. As attention shifts toward performance-driven Layer 2 solutions, LAYER’s rally suggests the project is earning market validation for its restaking and hardware-powered approach.
OKX Launches Self-Custody OKX Pay with Zero Fees, Partners with Mastercard
Background OKX has introduced OKX Pay, a self-custody crypto payment app designed to offer everyday utility for digital assets. With no transaction fees, instant transfers, and support for major stablecoins like USDT, OKX aims to combine Web3 principles with the usability of traditional finance platforms.
Key Points
OKX Pay offers zero-fee crypto payments with instant stablecoin transfers and daily automatic rewards, bringing crypto closer to mainstream payments.
The platform includes features like direct payments to contacts, red packet sharing, and group chat functions, mimicking familiar Web2 payment apps.
OKX will integrate with Mastercard and Stripe, enabling direct crypto purchases through traditional payment rails.
Users earn a 5% annual yield on their balances, incentivizing active use of the wallet.
The self-custody model uses split-key architecture between the user and OKX, with zero-knowledge proof email recovery for enhanced safety and usability.
OKX Pay supports transfers to X Layer, contributing to Web3 ecosystem growth by simplifying blockchain interactions.
A new OKX Mastercard is also in development, allowing global retail purchases tied directly to crypto holdings.
Key Takeaway OKX Pay represents a bold step in merging self-custody and everyday crypto payments. With fee-free transfers, reward incentives, and Mastercard integration, it positions OKX at the forefront of user-friendly Web3 financial infrastructure.