This content is provided by a sponsor. As of April 2025, Solana’s decentralized application (dApp) ecosystem has seen significant swings in revenue and activity. Here’s a look at the latest trends—and the emerging opportunities they reveal: Recent Revenue Trends In March 2025, Solana’s dApp ecosystem generated $146 million in total revenue, capturing 46% of all
BitcoinWorld Generative AI Accelerates Chip Development: Cognichip Emerges with $33M to Revolutionize Semiconductor Industry In the rapidly evolving landscape of artificial intelligence and technology that underpins many aspects of the digital world, including cryptocurrencies and blockchain infrastructure, the speed of innovation is paramount. While new AI models and software products emerge at a breakneck pace, the fundamental hardware they run on – computer chips – often lags behind in development cycles. This bottleneck in the semiconductor industry is a significant challenge, and a new player, Cognichip, is stepping out of stealth mode with an ambitious plan to tackle it head-on using generative AI . Can Generative AI Speed Up Chip Development? San Francisco-based Cognichip aims to create a physics-informed foundational artificial intelligence model designed specifically to assist semiconductor companies. They call this approach “artificial chip intelligence.” The goal is to significantly speed up the complex and lengthy process of chip development . The company believes this AI-driven method could potentially cut production times by 50% and reduce associated costs, a major potential leap for the industry. The vision comes from Faraj Aalaei, a veteran of the semiconductor industry with experience at companies like Fujitsu Network Communications and Centillium Communications. Aalaei’s concern about the industry’s future dates back to 2015, when he observed a stark decline in venture capital investment into semiconductor companies. He felt the industry needed a fundamental change to maintain competitiveness and foster innovation. Why is Speeding Up AI Chip Development Crucial? Aalaei noted that the slow pace of bringing new chips to market likely contributed to the lack of investor interest. He held onto his concerns for nearly a decade, founding Candou Ventures in 2016. Through his venture work, he witnessed the explosive growth and advancements in AI. It was the progress in generative AI that convinced him the time was right to launch Cognichip in 2024, seeing the technology as a potential solution to the semiconductor industry’s long-standing challenges. Cognichip has quietly assembled a team of artificial intelligence experts from leading institutions like Stanford, Google, and MIT to build their foundational model. While Aalaei estimates it will take several years to achieve the model’s “ultimate performance,” he believes it can provide value to companies even before reaching that peak. The ultimate vision is for this “artificial chip intelligence” to function like an expert engineer, enabling companies to achieve the same results with fewer resources and in much less time. Cognichip’s Funding and Industry Impact Emerging from stealth, Cognichip announced a significant $33 million seed funding round. This round was co-led by prominent venture firms Lux Capital and Mayfield, with participation from FPV and Aalaei’s own Candou Ventures. Navin Chaddha, a managing partner at Mayfield, expressed confidence in Cognichip’s potential, calling their solution a “pain killer” for a critical bottleneck in the massive, trillion-dollar semiconductor industry . He highlighted the current reliance on human labor in chip design and the potential for AI to fill talent gaps and address major pain points. Beyond just speed and cost reduction, Aalaei hopes Cognichip’s technology can help democratize access to chip development . Easier access could enable more semiconductor startups to emerge and attract investment. It could also allow smaller companies to design specialized AI chips tailored for specific, niche applications or smaller AI models, fostering greater diversity and innovation in the hardware landscape. Aalaei emphasizes that Cognichip is not pursuing incremental improvements or building standard electronic design automation (EDA) tools. Instead, they aim to set a new standard for the industry, driving fundamental change through their novel generative AI approach to chip development . Cognichip’s emergence with substantial backing signals growing confidence in the potential of artificial intelligence , particularly generative AI , to transform even the most complex and hardware-intensive industries. Their success could significantly impact the speed at which new technologies, including advanced AI chips crucial for future innovations, come to market, potentially benefiting a wide range of fields dependent on cutting-edge hardware. To learn more about the latest generative AI trends, explore our article on key developments shaping AI features. This post Generative AI Accelerates Chip Development: Cognichip Emerges with $33M to Revolutionize Semiconductor Industry first appeared on BitcoinWorld and is written by Editorial Team
XRP dropped 4.74% to $2.47 after facing resistance at the $2.66 Fibonacci level. NVT spike and MVRV stagnation reveal valuation risks despite bullish crowd sentiment. Since early May, Ripple [XRP] has drawn increased investor optimism as both crowd and smart money sentiment indicators have turned bullish. This change aligns with a steady uptrend that pushed prices close to the $2.54–$2.66 resistance range. At press time, XRP traded at $2.47, down 4.74% in the last 24 hours. Still, both technical and on-chain data offer signals worth watching. However, whether this momentum sustains hinges on how XRP reacts to its current resistance levels. Supply shrinks as valuation risks emerge from… XRP’s Exchange Reserve dropped by 3.22%, totaling $7.28 billion. This decline implies a reduced supply of tokens available for immediate selling, which typically supports bullish market conditions. When fewer coins remain on exchanges, the likelihood of intense sell-offs diminishes. Therefore, this trend may reflect long-term holder confidence and accumulation. Source: CryptoQuant However, the NVT Ratio spiked to 2,806—an unusually high level. This indicates a sharp divergence between market cap and actual transaction activity, which often precedes local tops. Consequently, this could signal overvaluation and a possible short-term correction if on-chain activity fails to pick up. Short-term holders begin booking profits XRP’s Development Activity rose to 20.21, indicating renewed technical focus behind the project. This rebound could suggest upcoming feature rollouts or protocol improvements, often interpreted as a long-term bullish sign. Sustained development not only fosters ecosystem growth but also attracts investor confidence. However, the impact of this trend on near-term price movement depends on whether technical upgrades align with market demand and adoption narratives within the crypto space. Source: Santiment In contrast, Spent Output for 1- to 7-day-old coins dipped to 12.22 million, indicating reduced short-term selling pressure. This cooling off of activity suggests holders are holding through volatility rather than exiting, a possible sign of trust in further upside. However, traders should watch for any reversal in this trend, especially near resistance levels. Technical indicators show mixed signals Ripple’s (XRP) price tested and briefly rejected the 0.786 Fibonacci level at $2.66 before falling back below $2.5. The MACD still shows a bullish crossover, but momentum appears to be weakening as the signal line approaches convergence. Additionally, strong resistance looms at $3.00, a level previously tested and rejected earlier in the year. Therefore, despite recent upside momentum, technicals point to indecision as bulls face critical overhead resistance that could shape the next move. Source: TradingView XRP’s MVRV Ratio has recovered to 253.11% after dipping in early April. Although the figure suggests holders are in profit, it still remains well below peaks seen in previous months. This moderate rebound indicates reduced pressure from unrealized profits, potentially lowering the risk of immediate sell-offs. However, if the price continues to rise without meaningful changes in on-chain utility, the MVRV could quickly return to danger zones. Can XRP sustain bullish sentiment despite conflicting signals? Although XRP’s sentiment has turned bullish, its sustainability remains in question. Declining exchange reserves and rising development activity support the bullish case, but overvaluation signals from the NVT and MVRV ratios suggest caution. With short-term holders holding back and technical momentum slowing, XRP needs a strong breakout above $2.66 to confirm continuation. Until then, the current uptrend faces critical tests from both the charts and the chain.
Summary MSTR's fundamentals are weak, with negative growth and profitability metrics, making its sky-high valuation irrational compared to peers. The company's business model is less adaptable and riskier than other crypto-related firms, relying solely on Bitcoin's price appreciation. MSTR trades at a massive premium to its Bitcoin holdings, raising the question of why not just buy Bitcoin directly instead. Given these factors, I rate MSTR a strong sell, as it is fundamentally the weakest crypto stock and extremely overhyped. Introduction MicroStrategy Incorporated ( NASDAQ: MSTR ) is likely one of the most controversial stocks out there. While some love it and praise Michael Saylor's strategy, others hate it. In this article, I will show why MSTR is currently a bad investment and even a potential short candidate. Fundamentals MSTR's profitability is overall mixed. While the company does have a strong gross profit margin of 70%, far higher than the industry average, it also has a negative ROE of -30.86% and negative ROA of -12.14%, in contrast to positive values for the sector median. Furthermore, growth does look far worse. MSTR currently has negative revenue growth of -6.19% and negative forward revenue growth of -1.31%. Additionally, forward EBITDA growth is at -25.86%, which does imply no great future outlook for the company. This is especially a problem as the rest of the industry shows positive growth numbers. Considering the rather bad profitability and growth measures, MSTR's valuation looks completely irrational. At a forward EV/EBITDA ratio of 3562.79, the company is more than 240 times as expensive as the median. While the P/B ratio is only 3.44, it still seems elevated considering that other companies that do buy and hold, like Berkshire Hathaway Inc. ( BRK.B ), are only at a P/B ratio of 1.66. The P/S ratio is again extremely high at 193.9, 64 times higher than the median value. Furthermore, MSTR does not even have positive earnings yet, meaning that there is no P/E ratio at the moment. Peer Group Analysis While there are not many companies that have the exact same business model that MSTR has, it does make sense to compare MSTR to companies that are also heavily reliant on the performance of cryptos. When looking at profitability, MSTR has a solid gross profit margin, with only Coinbase Global, Inc. ( COIN ) and Robinhood Markets, Inc. ( HOOD ) being strong at 85.25% and 90.98%, respectively. Nevertheless, MSTR has by far the worst ROE and ROA, with MARA Holdings, Inc. ( MARA ) being the only other company that shows negative (but much less severe) returns at -10.61% ROE and -5.11% ROA. Considering growth, every company from the peer group, including all the above-mentioned and Block, Inc. ( XYZ ), has positive current and forward revenue growth as well as positive forward EBITDA growth. The last point is valuation, displayed in Figure 1, and also includes Tesla, Inc. ( TSLA ) as it is firstly a big holder of Bitcoin and secondly is known for having a high valuation, making it a good comparison to MSTR that shares those attributes. As can be seen, MSTR is by far the most expensive company in terms of EV/EBITDA and P/S ratios. It is almost 50 times as expensive as TSLA, one of the most hyped companies out there. That MSTR has a comparably low P/B ratio is likely due to its position as an asset holder. However, the comparison to MARA, which can be considered an asset holder, instantly shows that MSTR is even more expensive in this ratio. Figure 1 - Valuation Metrics of MSTR and Peers (Data: Seeking Alpha; Table Self-Created) All of this raises the question of how MSTR's high valuation can be justified if the company has the worst fundamentals at the highest price. This problem becomes even more severe when comparing the company to the business models of its peers. As a buy-and-hold Bitcoin holder, MSTR can only make money when Bitcoin rises. In contrast, COIN and HOOD make money as long as trading volume is high. Furthermore, MARA mines Bitcoin and is therefore also not completely reliant on Bitcoin rallying. Another factor that has to be considered is MSTR's strategy for buying Bitcoin. To do so, the company issues convertible debt. Because of this, debt holders usually use their option to convert debt to equity as long as MicroStrategy's stock price rises, which again is dependent on how Bitcoin performs. This has so far allowed the company to maintain a relatively low debt/equity ratio of around 24%. Nevertheless, should Bitcoin stop rising for a certain time, debt holders will not convert, burdening MSTR with interest payments that they somehow have to finance. Furthermore, as one of the biggest buyers of Bitcoin over the past years, the question remains of how much of the price increase in Bitcoin can be attributed to MSTR. Should MSTR stop buying because of potential interest payments, we could see much slower price appreciation in the Bitcoin market, again increasing the debt level of MSTR, which could lead to a self-reinforcing spiral where MSTR would have to sell some of its 568,840 Bitcoins to finance its debt. While the company currently pays between 0.625% and 2.25% interest on its convertible debt, rates could spike if the call aspect of the debt is considered as being less valuable. All of this adds additional tail risk and further increases the question of why investors should not simply buy Bitcoin directly instead of buying it through MSTR at a premium of roughly 94% to the NAV of its Bitcoins (dividing the market cap of 114B by the value of Bitcoins held, which is $102,600 times 568,840). Trade Execution Resulting from all of this is that investors should at best stay away from MSTR stock due to its high valuation. While I generally like shorting the stock, I would only do so on the way down, when it either falls below its 200-day simple moving average or turns to negative 6-month momentum. Currently, the company is far away from both of these suggestions. While it could also be interesting to short MSTR and go long on Bitcoin, the trade could show some losses as MSTR is generally even more volatile than Bitcoin. Nevertheless, it could be an attractive way to profit from a fall in P/B value despite rising crypto prices. Conclusion In total, MSTR seems like the fundamentally weakest stock in the whole crypto sector at an incredibly high valuation that simply suggests that the company is overhyped. Furthermore, MSTR is less adaptable than other companies from the crypto sector, while at the same time trading at a huge premium to the Bitcoin it holds, raising the question of why investors should not simply invest in Bitcoin directly. Because of this, the company gets a “strong sell” from me as I simply do not see any credible argument in favor of MSTR when comparing it to valid alternatives.
Whale inflows to Binance have hit a six-month low at $3.27 billion, indicating potential shifts in market dynamics and investor sentiment. This decline implies reduced selling pressure, suggesting that major
In a bold assertion, former BitMEX CEO Arthur Hayes predicts Bitcoin might reach $1 million by 2028, citing shifts in the macroeconomic landscape. Hayes emphasizes potential capital flight and U.S.
Bitcoin is the "perfect and only lifeboat," crypto entrepreneur Hayes has argued.
DDC Enterprise Ltd. (NYSEAM: DDC), a Chinese publicly traded company, reported record 2024 financial results and announced plans to acquire 5,000 bitcoin ( BTC) over three years as part of a new corporate reserve strategy. The initiative includes an immediate purchase of 100 BTC, with a goal to hold 500 BTC within six months. NYSEAM-Listed
Digital assets service providers in the UK may need to start reporting user data to His Majesty’s Revenue and Customs (HMRC) by 2027. The regulator disclosed this in a recent announcement, stating that it is due to a new regulatory framework. According to the HMRC , which is responsible for tax collection, the country is adopting the Organisation for Economic Development (OECD) Crypto Asset Reporting Framework (CARF) and will extend it to domestic reporting. Under the new framework, the regulator expects all companies categorized as reporting crypto asset service providers (RCASPs) based in the UK to collect and report user data. Thus, data collection is expected to start by January 1, 2026, while the first report will be in May 2027. The statement said: “If you’re a UK-based RCASP, you need to start collecting information about your users and their transactions from January 1, 2026. You may want to start collecting information earlier to prepare for the new rules.” Crypto entities considered to be RCASPs include exchanges, dealers, and brokers. For the based-in-UK criteria, the company either needs to be incorporated in the UK, pay taxes in the country, manage its business there, or have a place of business in the country. Any of these four conditions will be sufficient. However, crypto entities operating in multiple countries where CARF applies only need to report in one country where they are tax resident. When they are tax residents in multiple countries, they can report to any of the countries. Crypto entities to submit KYC information and transaction data to authorities Meanwhile, the framework means crypto service providers have to collect the personal data of their users. Most centralized exchanges already collect this data, which includes name, date of birth, address, and country of residence. Additionally, crypto firms must get national insurance or unique taxpayer references for UK residents and tax identification numbers for non-UK residents. Companies may also be required to give information about a controlling person. Additionally, crypto entities also need to collect data about transactions, including their value, the crypto asset, and the type of transaction. With all this information, the regulator can connect each taxpayer to an account. Entities are expected to conduct due diligence on the information they obtain and could face up to £300 in penalties per user when they submit inaccurate, unverified, or incomplete data. Failure to report or late reporting could also attract similar sanctions. Interestingly, Crypto UK, the country’s leading trade association for crypto assets, has praised the move. In a post, it stated that HMRC developed the guidance based on industry input, and it is a step towards a regulated ecosystem. Surveillance of crypto transactions is increasing globally Meanwhile, the new framework is not peculiar to the UK. In fact, more than 60 countries, including the US, Australia, Canada, South Africa, and many of the major European countries, have all committed to implementing the CARF domestically. The framework is expected to enable international cooperation between countries on crypto transactions. While a key reason for the reporting is to tackle the use of crypto for illicit purposes and allow proper taxation of crypto assets, it also highlights increasing surveillance of crypto activity globally. The EU recently announced plans to introduce new anti-money laundering measures prohibiting crypto entities from dealing with anonymous wallets and privacy coins. The new rules require verification for transactions over €1,000. While privacy coins have long faced scrutiny, the proposal to ban anonymous crypto accounts has been questioned, given that all crypto addresses are anonymous by default. However, many believe the rules will only apply to centralized exchanges and that non-custodial wallets will not be impacted. Still, the increase in crypto transaction surveillance remains a concern for privacy experts and crypto stakeholders who believe it could hinder innovation. Cryptopolitan Academy: Tired of market swings? Learn how DeFi can help you build steady passive income. Register Now
A New York Times report has disclosed that the US Securities and Exchange Commission (SEC) is investigating Coinbase. The report published on May 15 stated that the SEC is investigating whether claims of having over 100 million users are misrepresentations. According to the report , the investigation started under the Joe Biden administration when Gary Gensler was the SEC chair and has continued into the Trump administration. Coinbase had claimed 100 million verified users in its initial public offering documents in 2021 and other public filings after. However, Coinbase included a caveat in the filings stating that the metric might be an exaggeration since one user can open multiple accounts using several phone numbers and email addresses. The exchange finally stopped citing the metric in 2023, noting that it no longer reflects the company’s overall performance. Meanwhile, the New York Times report claimed that Coinbase had contacted the SEC to resolve the issue and even hired the Davis Polk & Wardwell law firm to represent it. While the regulator gave no information about the investigation, Coinbase has confirmed it. The company’s chief legal officer, Paul Grewal, said in a statement on CNBC that it was a holdover investigation that should have been suspended. He added that the exchange will continue to work with the SEC to resolve the matter. He said: “This is a holdover investigation from the prior administration about a metric we stopped reporting two and a half years ago, which was fully disclosed to the public. While we strongly believe this investigation should not continue, we remain committed to working with the SEC to bring this matter to a close.” Nevertheless, the SEC has not yet appeared to share this view. The report claims that the agency has reportedly been in contact with former Coinbase employees in recent months over the matter. Coinbase is facing headwinds despite recent milestones The news that Coinbase still has a legal issue to contend with represents a major headwind for the exchange that has been basking in the euphoria of a pro-crypto administration. With most regulatory agencies changing their approach to crypto, the exchange has been a big beneficiary. So far this year, the SEC has dropped two lawsuits over unregistered securities and staking against Coinbase. Five US states have also dismissed similar litigations over the exchange staking program. Beyond its legal wins, the company also recently joined the S&P 500, becoming the first crypto company to achieve this and signaling its growth over the past few years. However, news of recently disclosed investigations by the SEC represents a headwind for the company. With a pro-crypto SEC that has dropped dozens of lawsuits and investigations and is choosing to hold on to one against Coinbase, there are concerns that the regulator might have a case against the company. Meanwhile, Coinbase had also revealed that it was the victim of a breach that allowed bad actors to gain access to the data of some of its users. Although the exchange said it affected less than 1% of its monthly users, it estimates that remediation and reimbursements for users may cost between $180 million and $400 million. The disclosure by Coinbase finally confirms the recent concerns raised by cybersecurity experts such as ZachXBT and Tayvano, who have criticized the exchange multiple times for allowing scammers to steal from its users. Tayvano recently condemned Coinbase’s plan to introduce encrypted messaging to the Coinbase Wallet, noting that it would only give scammers direct access to users. Coinbase stock falls 7% With the headwinds that the company is facing, it is unsurprising that its COIN stock fell 7% today to $244.44. This wiped out most of its gains for the past month, when it had gained almost 40%. Following today’s drop, COIN is down 1.55% year-to-date, a performance worse than that of Bitcoin and XRP, which has gained 9.44% and 4.57% YTD but better than that of major altcoins such as Ether and Solana. Interestingly, COIN’s performance contrasts with that of another major crypto stock, MSTR. The Bitcoin treasury company is up 37% YTD. Your crypto news deserves attention - KEY Difference Wire puts you on 250+ top sites