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Is Tether MiCA compliant?
The EU’s new Markets in Crypto-Assets regulation, better known as MiCA, is the first major attempt by a global economic power to create clear, region-wide rules for the crypto space, and stablecoins are a big focus.
MiCA mandates best practices. If a stablecoin is going to be traded in the EU, its issuer has to follow some stringent rules:
1. You need a license
To issue a stablecoin in Europe, you must become a fully authorized electronic money institution (EMI). That’s the same kind of license traditional fintechs need to offer e-wallets or prepaid cards. It’s not cheap and it’s not quick.
2. Most of your reserves have to sit in European banks
This is one of the most controversial parts of MiCA. If you issue a “significant” stablecoin — and Tether’s USDT certainly qualifies — at least 60% of your reserves must be held in EU-based banks. The logic is to keep the financial system safe.
3. Full transparency is non-negotiable
MiCA requires detailed, regular disclosures. Issuers have to publish a white paper and provide updates on their reserves, audits and operational changes. This level of reporting is new territory for some stablecoins, especially those that have historically avoided public scrutiny.
4. Non-compliant coins are getting delisted
If a token doesn’t comply, it won’t be tradable on regulated EU platforms. Binance, for example, has delisted USDT trading pairs for users in the European Economic Area (EEA). Other exchanges are following suit.
The European Securities and Markets Authority (ESMA) clarified that people in Europe can still hold or transfer USDT, but it can’t be offered to the public or listed on official venues.
In other words, you might still have USDT in your wallet, but good luck trying to swap it on a regulated platform.
Key reasons why Tether rejects MiCA regulations
Tether is unique in that it has explained why it wants nothing to do with MiCA regulations. The company’s leadership, especially CEO Paolo Ardoino, has been pretty vocal about what they see as serious flaws in the regulation, from financial risks to privacy concerns to the bigger picture of who stablecoins are really for.
1. The banking rule could backfire
One of MiCA’s most talked-about rules says that “significant” stablecoins — like Tether’s USDt (USDT) — must keep at least 60% of their reserves in European banks. The idea is to make stablecoins safer and more transparent. But Ardoino sees it differently.
He’s warned that this could create new problems, forcing stablecoin issuers to rely so heavily on traditional banks could make the whole system more fragile.
After all, if there’s a wave of redemptions and those banks don’t have enough liquidity to keep up, we’d witness a struggling bank and a stablecoin crisis simultaneously.
Instead, Tether prefers to keep most of its reserves in US Treasurys, assets it says are liquid, low-risk and much easier to redeem quickly if needed.
2. They don’t trust the digital euro
Tether also has a broader issue with the direction Europe is heading, especially regarding a digital euro. Ardoino has openly criticized it, raising alarms about privacy.
He has argued that a centrally controlled digital currency could be used to track how people spend their money, and even control or restrict transactions if someone falls out of favor with the system.
Privacy advocates have echoed similar concerns. While the European Central Bank insists that privacy is a top priority (with features like offline payments), Tether isn’t convinced. In their eyes, putting that much financial power in the hands of one institution is asking for trouble.
3. Tether’s users aren’t in Brussels. They’re in Brazil, Turkey and Nigeria
At the heart of it, Tether sees itself as a lifeline for people in countries dealing with inflation, unstable banking systems and limited access to dollars.
These are places like Turkey, Argentina and Nigeria, where USDT is often more useful than the local currency.
MiCA, with all its licensing hoops and reserve mandates, would require Tether to shift focus and invest heavily in meeting EU-specific standards. That’s something the company says it’s not willing to do, not at the expense of the markets it sees as most in need of financial tools like USDT.
Did you know? Turkey ranks among the top countries for cryptocurrency adoption, with 16% of its population engaged in crypto activities. This high adoption rate is largely driven by the devaluation of the Turkish lira and economic instability, prompting citizens to seek alternatives like stablecoins to preserve their purchasing power.
What happens when Tether doesn’t comply with MiCA
Tether’s decision to skip MiCA didn’t exactly fly under the radar. It’s already having real consequences, especially for exchanges and users in Europe.
Exchanges are dropping USDT
Big names like Binance and Kraken didn’t wait around. To stay on the right side of EU regulators, they’ve already delisted USDT trading pairs for users in the European Economic Area. Binance had removed them by the end of March 2025. Kraken followed close behind, removing not just USDT but also other non-compliant stablecoins like EURT and PayPal’s PYUSD.
Users are left with fewer options
If you’re in Europe and holding USDT, you’re not totally out of luck; you can still withdraw or swap it on certain platforms. But you won’t be trading it on major exchanges anymore. That’s already pushing users toward alternatives like USDC and EURC, which are fully MiCA-compliant and widely supported.
Even major crypto payment processors are pulling support, leaving users with fewer options for spending their crypto directly.
A hit to liquidity? Probably.
Pulling USDT from European exchanges could make the markets a bit shakier. Less liquidity, wider spreads and more volatility during big price moves are all on the table. Some traders will adjust quickly. Others? Not so much.
Did you know? Tether (USDT) is the most traded cryptocurrency globally, surpassing even Bitcoin in daily volume. In 2024, it facilitated over $20.6 trillion in transactions and boasts a user base exceeding 400 million worldwide.
Tether vs MiCA regulation
Tether may be out of sync with the EU, but it’s far from retreating. If anything, the company is doubling down elsewhere, looking for friendlier ground and broader horizons.
Firstly, Tether’s picked El Salvador as its new base, a country that has fully embraced crypto. After getting a digital asset service provider license, the company is setting up a real headquarters there. Ardoino and other top execs are making the move too.
Moreover, after banking over $5 billion in profits in early 2024, Tether is putting its capital to work:
- AI: Through its venture arm, Tether Evo, the company has picked up stakes in firms like Northern Data Group and Blackrock Neurotech. Tether has also launched Tether AI, an open-source, decentralized AI platform designed to operate on any device without centralized servers or API keys. The goal is to use AI to boost operations and maybe build some new tools along the way.
- Infrastructure and AgTech: Tether invested in Adecoagro, a company focused on sustainable farming and renewable energy. It’s a surprising move, but it fits Tether’s bigger strategy of backing real-world, resilient systems.
- Media and beyond: There are also signs Tether wants a footprint in content and communications, signaling it’s thinking far beyond crypto alone.
Tether’s MiCA exit highlights crypto’s global regulatory chaos
Tether walking away from MiCA is a snapshot of a much bigger issue in crypto: How hard it is to build a business in a world where every jurisdiction plays by its own rulebook.
The classic game of regulatory arbitrage
This isn’t Tether’s first rodeo when it comes to navigating regulations. Like many crypto companies, they’ve mastered the art of regulatory arbitrage, finding the friendliest jurisdiction and setting up shop there.
Europe brings in strict rules? Fine, Tether sets up in El Salvador, where crypto is welcomed with open arms.
However, it does raise questions. If big players can simply move jurisdictions to dodge regulations, how effective are those rules in the first place? And does that leave retail users protected or just further confused?
A crypto world that’s all over the map
The bigger issue is that the global regulatory landscape is incredibly fragmented. Europe wants full compliance, transparency and reserve mandates. The US is still sending mixed signals. Asia is split; Hong Kong is pro-crypto, while China stays cold.
Hong Kong has also passed the Stablecoin Bill to license fiat-backed issuers and boost its Web3 ambitions. Meanwhile, Latin America is embracing crypto as a tool for financial access.
For companies, it’s a mess. You can’t build for one global market; you must constantly adapt, restructure or pull out entirely. For users, it creates massive gaps in access. A coin available in one country might be inaccessible in another just because of local policy.
As a final thought: Tether’s resistance to MiCA seems to be more than just a protest against red tape.
It’s making a bet that crypto’s future will be shaped outside Brussels, not inside it.
Some of the biggest banking companies in the US are reportedly exploring a team-up to launch a crypto stablecoin.
Companies owned by JPMorgan, Bank of America, Citigroup and Wells Fargo have discussed the possibility of jointly issuing a stablecoin, The Wall Street Journal reported on May 22, citing people familiar with the matter.
Other financial institutions linked to the potential stablecoin include Early Warning Services, the parent company of digital payments network Zelle, and the payment network Clearing House.
The discussions are still in the early stages, and a final decision on the project could change depending on the regulatory environment and the demand for stablecoins.
A JPMorgan spokesperson told Cointelegraph the company had no comment. Bank of America, CitiGroup, and Wells Fargo did not immediately respond to requests for comment.
On May 20, the US Senate voted 66-32 in favor of advancing discussion on the stablecoin-regulating Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act.
The bill outlines a regulatory framework for stablecoin collateralization and mandates compliance with Anti-Money Laundering laws. The bill is now headed to debate on the Senate floor.
Earlier this week, White House crypto czar David Sacks said he expects the bill will be passed and that it will receive bipartisan support.
However, high-ranking Democrats plan to amend the bill to include a clause prohibiting President Donald Trump and other US officials from profiting from stablecoins.
Trump and his family launched the crypto platform World Liberty Financial, which created the USD1 stablecoin in March. Critics argue that President Trump stands to personally benefit from passing favorable stablecoin regulation.
Related: World Liberty Financial brushes off oversight concerns from Congress
Stablecoin demand surges
The demand for stablecoins has been on the rise, with nation states adopting and institutions wanting to incorporate stablecoins.
The total market capitalization of stablecoins has shot up to $245 billion from $205 billion at the start of the year, representing a 20% increase.
Earlier this week, it was reported that yield-bearing stablecoins now account for nearly 4.5% of the entire stablecoin market, with a circulating supply of $11 billion.
Austin Campbell, a New York University professor and founder of Zero Knowledge Consulting, said the American banking lobby is “panicking,” as stablecoins can disrupt the traditional banking business model.
Earlier this month, it was reported that tech giant Meta is exploring ways to incorporate stablecoin payments into its platforms.
Magazine: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight
Artificial intelligence firm Anthropic has launched the latest generations of its chatbots amid criticism of a testing environment behaviour that could report some users to authorities.
Anthropic unveiled Claude Opus 4 and Claude Sonnet 4 on May 22, claiming that Claude Opus 4 is its most powerful model yet, “and the world’s best coding model,” while Claude Sonnet 4 is a significant upgrade from its predecessor, “delivering superior coding and reasoning.”
The firm added that both upgrades are hybrid models offering two modes — “near-instant responses and extended thinking for deeper reasoning.”
Both AI models can also alternate between reasoning, research and tool use, like web search, to improve responses, it said.
Anthropic added that Claude Opus 4 outperforms competitors in agentic coding benchmarks. It is also capable of working continuously for hours on complex, long-running tasks, “significantly expanding what AI agents can do.”
Anthropic claims the chatbot has achieved a 72.5% score on a rigorous software engineering benchmark, outperforming OpenAI’s GPT-4.1, which scored 54.6% after its April launch.
Related: OpenAI ignored experts when it released overly agreeable ChatGPT
The AI industry’s major players have pivoted toward “reasoning models” in 2025, which will work through problems methodically before responding.
OpenAI initiated the shift in December with its “o” series, followed by Google’s Gemini 2.5 Pro with its experimental “Deep Think” capability.
Claude rats on misuse in testing
Anthropic’s first developer conference on May 22 was overshadowed by controversy and backlash over a feature of Claude 4 Opus.
Developers and users reacted strongly to revelations that the model may autonomously report users to authorities if it detects “egregiously immoral” behavior, according to VentureBeat.
The report cited Anthropic AI alignment researcher Sam Bowman, who wrote on X that the chatbot will “use command-line tools to contact the press, contact regulators, try to lock you out of the relevant systems, or all of the above.”
However, Bowman later stated that he “deleted the earlier tweet on whistleblowing as it was being pulled out of context.”
He clarified that the feature only happened in “testing environments where we give it unusually free access to tools and very unusual instructions.”
The CEO of Stability AI, Emad Mostaque, said to the Anthropic team, “This is completely wrong behaviour and you need to turn this off — it is a massive betrayal of trust and a slippery slope.”
Magazine: AI cures blindness, ‘good’ propaganda bots, OpenAI doomsday bunker: AI Eye
Cybercriminals are using fake Ledger Live apps to drain macOS users’ crypto through malware that steals seed phrases, a cybersecurity firm warns.
The malware replaces the legitimate Ledger Live app on victims’ devices and then prompts the user to input their seed phrase through a phony pop-up message, a team from Moonlock said in a May 22 report.
“Initially, attackers could use the clone to steal passwords, notes, and wallet details to get a glimpse of the wallet’s assets, but they had no way to extract the funds,” the Moonlock team said.
“Now, within a year, they have learned to steal seed phrases and empty the wallets of their victims,” it added.
One way the scammers replace the real Ledger Live app with a clone is through the Atomic macOS Stealer, designed to steal sensitive data, which Moonlock said it has found lurking on at least 2,800 hacked websites.
After infecting a device, Atomic macOS steals personal data, passwords, notes and wallet details and replaces the real Ledger Live app with a phony.
“The fake app then displays a convincing alert about suspicious activity, prompting the user to enter their seed phrase,” the Moonlock team said.
“Once entered, the seed phrase is sent to an attacker-controlled server, exposing the user’s assets in seconds.”
Malware campaign active since August
Moonlock has been tracking malware that's distributing a malicious clone of Ledger Live since August, with at least four active campaigns, and they think hackers are “only getting smarter.”
Threat actors on the dark web are offering malware with “anti-Ledger” features. However, one of the examples examined by Moonlock did not feature the full anti-Ledger phishing functionality advertised. The firm speculates those features could “still be in development or is forthcoming in future updates.”
“This isn’t just a theft. It’s a high-stakes effort to outsmart one of the most trusted tools in the crypto world. And the thieves are not backing down,” Moonlock said.
“On dark web forums, chatter around anti-Ledger schemes is growing. The next wave is already taking shape. Hackers will continue to exploit the trust crypto owners place in Ledger Live.”
Related: Ledger secures Discord after hacker bot tried to steal seed phrases
To avoid falling prey to similar malware scams, the cybersecurity firm recommends being wary of any page that warns of a critical error and asks for a 24-word recovery phrase.
At the same time, never share a seed phrase with anyone or input it on any website, no matter how legitimate it looks, and only download Ledger Live from its official source.
Ledger didn’t immediately respond to Cointelegraph’s request for comment.
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Photos from within US President Donald Trump’s secretive dinner for his top memecoin buyers show attendees were treated to a three-course meal and gift bags as protesters gathered outside the event to accuse Trump of profiting from the presidency.
Pictures posted online by some of the 220 largest holders of the Official Trump (TRUMP) token — one of several crypto ventures critics have said conflicts with Trump’s ethics as president — show attendees were greeted by large posters bearing “Fight Fight Fight,” which also sat atop each table, referencing the company that launched the memecoin.
The White House said it would not publish a guest list of those who attended the dinner, but Tron CEO Justin Sun, Magic Eden CEO Jack Lu and BitMart CEO Sheldon Xia were among those sharing snaps of the dinner held at the Trump National Golf Club in Virginia.
Trump Crypto Dinner！ #TrumpCoin @GetTrumpMemes pic.twitter.com/9ZredNjOEu
— Sheldon (@sheldonbitmart) May 23, 2025
On the menu was a “Trump organic field green salad” to start, which was followed by a filet mignon and pan-seared halibut with mashed potatoes and vegetable medley, with a lava cake for dessert, according to two photos taken by apparent attendees seen by Cointelegraph.
A video of the event shows that attendees were also given a gift bag containing a black hat.
Sun, who the Securities and Exchange Commission charged with securities laws violations before it dropped the case under the Trump administration, was the single largest buyer of Trump’s memecoin leading up to the dinner.
A video shows the Chinese-born crypto entrepreneur, who is also the biggest backer of Trump’s crypto platform World Liberty Financial, was brought up on stage and ceremoniously gifted a golden Trump-branded watch, which a Trump-linked company sells for $100,000.
As the top holder of $TRUMP and proud supporter of President Trump, it was an honor to attend the Trump Gala Dinner by @GetTrumpMemes.
— H.E. Justin Sun 🍌 (@justinsuntron) May 23, 2025
Thank you @POTUS for your unwavering support of our industry!#MakeCryptoGreatAgain🇺🇸 pic.twitter.com/Yy2TuWEgzT
Sun’s attendance at the event was highlighted by The Wall Street Journal and other media outlets, with many noting that the dinner may have deepened his ties to Trump and his family.
Attendees confronted by fierce protestors on arrival
Bloomberg reported that around 100 protestors gathered outside the event booed and jeered attendees as they arrived at the premises.
BREAKING: In a stunning moment, protesters have swarmed Trump National Golf Club, where Trump is hosting his “Memecoin” dinner tonight.
— Brian Allen (@allenanalysis) May 23, 2025
Outside: fury.
Inside: crypto bros and campaign bundlers toasting corruption like it’s vintage wine.
Americans are done watching billionaires… pic.twitter.com/WrkwtMYiSF
The protesters were holding signs with messages such as: “Stop Trump’s Crypto Corruptio,” and “Democracy Is Not For Sale,” while another said “Cripto Grift Dinner Bribery On Menu.”
Related: Donald Trump gives conflicting answers over memecoin profits
Some protesters called for Trump’s impeachment and removal, while others demanded financial reform in the US.
Trump-linked entities reportedly cashed in around $100 million in trading fees from the TRUMP token that launched two days before Trump was inaugurated as president on Jan. 20.
On March 24, Trump Media also signed a non-binding agreement with Crypto.com to launch a series of “Made in America” exchange-traded products in the US.
Magazine: Trump’s crypto ventures raise conflict of interest, insider trading questions
Bitcoin futures open interest (OI) has hit record levels on crypto derivatives exchanges as traders anticipate the cryptocurrency will continue and reach new all-time highs.
Bitcoin (BTC) futures open interest reached a peak of just over $80 billion on May 23, according to CoinGlass. It’s an increase of 30% since the start of May as derivatives speculators load up on leverage in anticipation of higher Bitcoin prices.
Open interest is the total number of outstanding futures contracts that allow traders to bet on the future price of Bitcoin, which have not been settled or closed, showing the total amount of current market speculation.
When OI surges, it indicates massive leveraged positions are built up in the market, with lots of traders holding large positions with borrowed money.
If Bitcoin’s price moves against these over-leveraged positions, traders get forcibly liquidated, and the flushout can create selling pressure on Bitcoin, which can cause a rapid drop in prices and high volatility.
However, analysts suggest the surge in spot Bitcoin exchange-traded fund (ETF) inflows, which have seen more than $2.5 billion this week, can counter some of that extended leverage.
Related: Crypto perp futures coming ‘very soon,’ says CFTC’s Mersinger
Bitcoin options markets show a similar pattern with open interest over $1.5 billion at the $110,000 and $120,000 strike prices on the Deribit exchange. There is also more than $1 billion in OI at strike prices of $115,000, $125,000, and $130,000.
Around $2.76 billion worth of notional value contracts are due to expire on May 23 with a put/call ratio of 1.2%, meaning there are more short (put) sellers than longs (call), and a max pain point of $103,000, where most losses will be made on expiry, according to Deribit.
Bitcoin slips below $111,000
Meanwhile, Bitcoin has slightly lost its recent gains and briefly slipped below $111,000 on Coinbase, according to TradingView.
The asset has now gained almost 20% since the beginning of the year and almost 50% since its crash to $75,000 on April 7 following US President Donald Trump’s announcement of global tariffs.
Bitcoin hit an all-time high of $112,000 on May 22 and had mostly traded just above $111,000 over the last 24 hours, but had again slipped below the level at 4:15 am UTC on May 23.
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TL;DR
Spotting the next big crypto project before it explodes demands data, discipline and a sharp eye for real signals. This guide explores how to identify early winners by analyzing onchain metrics, tokenomics, dev activity and community traction while avoiding the common traps of hype-driven pumps and red-flag projects.
Despite the crypto space being crowded, fast-moving and full of noise, some investors manage to consistently find promising projects while they’re still under the radar.
So, how do they do it?
Crypto trendspotters know how to read onchain data. They understand tokenomics. They read GitHub commits and follow the money. It takes more than jumping on the hype bandwagon ahead of the crowd.
This guide breaks down how to find crypto projects with real potential using lessons from past winners like Solana, Arbitrum, Chainlink and even memecoins like Pepe. Along the way, it will highlight the tools that matter, red flags to avoid and the difference between organic growth and manufactured buzz.
How the real winners took off
Solana
When Solana launched in 2020, few outside of developer circles had heard of it. But it had one big edge: speed. Solana’s proof-of-history tech made it one of the fastest chains around, and it quickly became a magnet for builders, especially in DeFi and NFTs. By 2021, its ecosystem exploded with apps like Serum and Magic Eden.
Early adopters who paid attention to onchain growth — like wallet activity and DEX volume — could see something brewing. Solana (SOL) went from under $1 to $50+ in less than a year.
Arbitrum
Arbitrum launched in 2021 as an Ethereum layer 2, but its big moment came with the Arbitrum (ARB) token airdrop in March 2023. At launch, Arbitrum was already processing more transactions than many layer 1s and had billions in total value locked (TVL) in decentralized applications (DApps).
Smart investors were watching. Even before the token, the signs were there: user activity, rising liquidity and growing app adoption. When ARB dropped, the pump stuck because the foundation was real.
Chainlink
Chainlink is a classic example of a project with long-term utility. It doesn’t have flashy branding or meme power, but it does one thing incredibly well: feed real-world data into smart contracts.
By 2024, it had become the backbone of much of DeFi, gaming and even tokenized real-world assets. If you were watching closely in 2019-2020, you saw LINK (LINK) getting integrated everywhere. That kind of early utility often flies under the radar — until price action catches up.
PEPE Coin (PEPE)
Let’s not pretend memes don’t matter. Pepe (PEPE) launched in 2023 with no roadmap, no utility and no VC backing. But it hit a nerve, and the internet ran with it. The coin hit a billion-dollar market cap within weeks.
That kind of run is rare — and risky. But for traders tracking social sentiment, wallet distribution and community activity, the early signals were all there. PEPE didn’t promise anything, but it delivered returns by becoming a viral moment.
How to find crypto gems early
So, how do you separate the next Solana from the next rug pull? Here’s how serious trendspotters approach it.
1. Start with onchain metrics
Public blockchains are transparent. Use that to look at:
Daily active wallets
Transaction volume
Tokenholder growth
Liquidity on decentralized exchanges (DEXs)
TVL (for DeFi projects).
If users and capital are moving in — before the token moons — that’s a great sign. Tools like Dune Analytics, Nansen and DefiLlama are your best friends here.
2. Understand the tokenomics
Ask questions like:
What’s the total supply? How much is circulating?
Are there upcoming unlocks or vesting cliffs?
Who holds the tokens, and how concentrated are the top wallets?
Is there utility? Does the token do anything?
Tokens with capped supply, smart incentives (like staking or burn mechanisms) and fair distribution models tend to do better long-term.
3. Check developer activity
Is the team actually building?
GitHub is a goldmine. Look at how often code is pushed, how many contributors are active, and whether the repo looks alive. No updates for months? Big red flag.
You don’t need to read code — just track commits and releases. Projects with real traction are always shipping.
4. Look for ecosystem signals
Are other developers building on top of it? Are DApps launching? Is liquidity growing? Are users coming back week after week?
Ecosystem growth is hard to fake, and it’s often the strongest early indicator that a project has legs.
5. Follow the community
X, Discord, Telegram, Reddit — yes, it’s noisy. But it’s also where trends start. Look beyond the price talk:
Are people actually using the product?
Are devs answering questions?
Is the tone constructive or just hype?
Use LunarCrush or Santiment to track social momentum, but always double-check it with onchain data.
Key tools to spot crypto trends
Here’s a quick rundown of the top platforms used by smart crypto trendspotters:
Top tip: Don’t just use one tool. Great traders cross-reference everything.
Crypto trend analysis 2025
A coin might be flying, but is it because people are actually using it or just talking about it? Learning to tell the difference can save you from making a bad investment.
Signs of real traction
Steady user growth and TVL over time: If users are showing up before a token pumps — and the numbers keep climbing week over week — that’s usually a sign of substance. You’ll often see this in DeFi protocols or layer 2s gaining trust slowly, not overnight.
Code commits and product updates: A live GitHub with regular commits, active devs and visible progress means the team is building. This shows momentum and long-term focus — not just a marketing push.
More tokenholders, less whale control: When new holders join steadily — and supply isn’t all locked up by the top five wallets — it’s a healthier setup. Distributed ownership reduces the risk of rug pulls or coordinated dumps.
New integrations and ecosystem activity: If other apps are integrating the token or building on the protocol, it usually means the tech is solid and useful. This kind of network effect compounds fast and often precedes a breakout.
Liquidity that builds slowly: Gradual increases in liquidity and trading volume tend to reflect real interest. If liquidity sticks around (rather than vanishing after a pump), it’s usually organic.
Signs of manufactured hype
Sudden spikes in social mentions or trading volume with no news: If the project is everywhere on X overnight, but there’s no product update, launch or roadmap shift, be skeptical. It’s likely a coordinated shill.
Influencer spam and recycled talking points: When you see multiple anonymous influencers posting the same meme or catchphrase, that’s a signal someone’s trying to manufacture buzz.
No dev activity or roadmap: If there’s no GitHub, no changelog and the team isn’t shipping anything, it’s probably just a hype machine.
Anonymous team, outrageous promises: Combine a mystery team with claims like “100x guaranteed,” and you’re likely looking at a cash grab. Real builders let the work speak for itself.
Rule of thumb: If the price is moving and everything else — users, devs, integrations — is standing still, you’re looking at hype. But when those fundamentals are quietly ticking up in the background? That’s when it’s worth a closer look.
More red flags
Some projects look great on the surface — slick websites, trending hashtags, a fast-moving chart — but fall apart under the hood. Here are some more red flags to watch out for:
High holder concentration: If most of the token is sitting in a handful of wallets, it doesn’t take much for a price crash. Whales often buy early and dump on retail.
Unverified token contracts: A token that hasn’t been verified on Etherscan or BscScan might hide functions that allow minting, blocking wallets or draining liquidity. Always check the contract or look for an audit.
No liquidity lock or audit: If the devs control all the liquidity provider tokens and there’s no lock or time-locked contract, they can pull the rug at any moment. Similarly, no third-party audit? That’s a gamble.
Big token unlocks coming up: Large unlocks for insiders or early investors can trigger huge sell-offs. If you’re holding during a major vesting event, you could be exit liquidity. Know the schedule.
Top tip: Before you click buy, ask, Who stands to gain the most if this pumps? Who gets hurt if it dumps? If the answer points to a few insiders with heavy bags and zero accountability, walk away.
How to spot crypto trends before the crowd
The best early investors are the mechanics looking under the hood. They study token structures and unlock schedules, join communities early to catch signals firsthand, and follow the builders to see who’s actually shipping.
Most importantly, they cross-check everything: on-chain data, social sentiment, developer activity, and liquidity. Tools like Dune, DefiLlama, Nansen and GitHub help them separate noise from substance — and spot winners before the crowd does.
Crypto rewards those who are curious, critical and a little bit contrarian. The crowd usually shows up late. If you want to find gems before they moon, you’ll need to think independently, dig deeper, and act before the narrative forms.
It’s not easy. But it’s doable. And the more you practice spotting early signals — the real ones, not the noise — the more second nature it becomes.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Shares in Swedish health tech company H100 Group AB rose 37% after it said it purchased Bitcoin for the first time as part of a new strategy, while China’s Jiuzi Holdings revealed its plan to stack 1,000 Bitcoin over the next year.
H100 said on May 22 that it spent 5 million Norwegian krone ($490,830) buying 4.39 Bitcoin (BTC) at an average purchasing price of around $111,785.
The company’s shares closed May 22 trading up 37% to 1.22 Swedish krona ($0.13) on the Nordic Growth Market following its disclosure of its Bitcoin purchase, Bloomberg data shows.
The strong trading day recovered some losses from the past two months, during which the firm’s shares have fallen by over 46%.
The firm’s CEO, Sander Andersen, said he believes “the values of individual sovereignty highly present in the Bitcoin community aligns well with, and will appeal to, the customers and communities we are building the H100 platform for.”
H100 sells health tools for individuals who don’t want to rely on the “reactive health system,” Andersen said in a separate X post.
Andersen marked the first Bitcoin announcement and purchase as “Phase 1,” hinting at further buys.
China’s Jiuzi Holdings to stack 1,000 Bitcoin
Meanwhile, on May 22, the Nasdaq-listed Chinese electric vehicle retailer Jiuzi Holdings said its board approved a plan to buy 1,000 Bitcoin over the next year through additional stock issuance and cash purchases.
Related: Bitcoin continues rally to surpass $110K for the first time
The company’s CEO, Tao Li, acknowledged the volatility that comes with investing in Bitcoin but is hopeful the move will strengthen the firm's asset structure, risk resistance and profitability.
Jiuzi (JZXN) rose 7.3% to $3.09 on May 22, Google Finance data shows — a comparatively minor rise compared to other public companies that have recently announced Bitcoin buys.
Adopting Bitcoin as a treasury asset has become an increasingly popular trend of late, with 109 public firms now holding the cryptocurrency on their balance sheets, according to BitcoinTreasuries.NET data.
Magazine: Crypto fans are obsessed with longevity and biohacking: Here’s why
Crypto perpetual futures contracts could receive regulatory approval in the US “very soon,” says outgoing Commodities and Futures Trading Commission Commissioner Summer Mersinger.
Perpetual crypto futures “can come to market now,” Mersinger told Bloomberg TV on May 22.
“We’re seeing some applications, and I believe we’ll see some of those products trading live very soon,” she said, adding it would be “great to get that trading back onshore in the United States.”
Mersinger, who will leave the CFTC at the end of May, said having crypto derivatives trading and regulated in the US would be a “really good thing for these markets and would be really beneficial to the industry broadly.”
Crypto perpetual futures are derivative contracts that allow traders to speculate on the price of cryptocurrencies without actually owning them. Unlike traditional futures contracts that have expiration dates, perpetual futures can be held indefinitely. They can also be traded with high leverage.
Crypto perpetuals are not currently permitted in the US and are traded on large offshore centralized exchanges, such as Binance, OKX, and Bybit.
Binance is the largest with almost $95 billion in perpetual trading volume per day, according to CoinGecko. It offers over 500 crypto perpetual pairs with up to 125x leverage.
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Mersinger said that the recent procedural vote to move forward the GENIUS stablecoin bill signifies “this asset class is clearly here to stay.”
“We really are going to make the United States the forefront of economic power that we can see from these tokens and this asset class.”
Mersinger leaving the CFTC
At the end of May, Mersinger will leave the CFTC to work at the Blockchain Association, a trade group with over 100 members that represents the crypto industry and economy.
On May 14, the Blockchain Association announced that its current CEO, Kristin Smith, would step down and Mersinger would assume the role on June 2.
“We have a very strong incoming [CFTC] chairman who has a great voice for the crypto industry and will be a real advocate for the industry and the agency at large,” she said, adding that she hopes to contribute more to the crypto industry through her new position.
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A US man operating what prosecutors called a “no questions asked” cash-to-Bitcoin conversion service has been sentenced to six years behind bars and was ordered to hand over millions of dollars.
Boston federal court Judge Richard Stearns sentenced Trung Nguyen, from Danvers, Massachusetts, to six years in prison followed by three years of supervised release, and ordered him to forfeit $1.5 million, the Boston US Attorney’s Office said on May 22.
Prosecutors said Nguyen ran an unlicensed money-transmitting business called National Vending between September 2017 and October 2020, which used various techniques he learned in an online course to evade authorities.
As part of the course, Nguyen was taught how to conceal his actual business from banks, crypto exchanges and state authorities by masquerading as a vending machine company that accepted cash deposits, had a list of fictional suppliers, and generally avoided using the phrase “Bitcoin” where possible.
According to prosecutors, among Nguyen’s customer base were several scam victims who were tricked into converting cash into Bitcoin (BTC) by con artists overseas, as well as a drug dealer who sent $250,000 in cash across 10 transactions in 2018.
The Justice Department said Nguyen converted more than $1 million to Bitcoin and “purposely failed” to register with the Treasury’s Financial Crimes Enforcement Network (FinCEN) despite being required to do so under federal Anti-Money Laundering regulations.
Nguyen also “failed to file Suspicious Activity Reports or Currency Transaction Reports on any of these transactions, including cash transactions of more than $10,000,” according to prosecutors.
Undercover cops sting Nguyen
Nguyen would often meet his clients in person to accept large sums of cash, which is how he was caught, prosecutors said.
A May 2023 indictment said that during several meetings with undercover law enforcement officers, he accepted cash and sent Bitcoin in return, taking just over 5% in commission.
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The indictment said Nguyen used encrypted messaging apps and “technologies that made it more difficult” to trace his Bitcoin transactions and broke up the cash deposits into smaller sums over consecutive days and at different branches of the same bank to evade notice by authorities.
Nguyen was charged with operating an unlicensed money transmitting business and two counts of money laundering. He pleaded not guilty to all charges in June 2023.
A jury convicted him in November on the unlicensed money-transmitting business charge and on just one of the money laundering charges, finding him not guilty of a separate money laundering charge.
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