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The $1 billion ICO that has crypto divided
Solana’s most viral app wants to raise $1 billion. But the crypto community isn’t completely sold on the pitch.
Pump.fun’s $1 Billion ICO Has Caused Controversy. Can It Succeed?
Solana’s most viral app wants to raise $1 billion. But the crypto community isn’t completely sold on the pitch.
On Tuesday, a pseudonymous X account claimed that Pump.fun, Solana’s breakout memecoin launchpad, would raise $1 billion via an ICO at a $4 billion valuation. The potential deal? Multiple CEX listings, a 10% community airdrop, and maybe even a launch by the end of the month.
The community reaction? Not great.
In this episode, Syncracy Capital’s Ryan Watkins joins to break down the backlash, whether the raise makes sense, and what this kind of fundraising says about the current state of crypto.
He discusses:
Whether Pump needs $1 billion and what they’d even do with it
Why some people are furious, even as Pump prints revenue
If this is bullish or bearish for Solana
Why an airdrop was not pursued
Whether the $4 billion valuation makes sense
Listen to the episode on Apple Podcasts, Spotify, Pods, Fountain, Podcast Addict, Pocket Casts, Amazon Music, or on your favorite podcast platform.
Now, let’s get into this week’s news! In today’s edition:
💰 Circle raises $1.1B and surges on NYSE debut, hitting $17B valuation
📊 Trump Media files for Truth Social Bitcoin ETF as family fights wallet project
⚠️ SEC questions legality of staked ETH and SOL ETFs from REX and Osprey
🛠️ Ethereum Foundation restructures R&D and unveils formal treasury strategy
📄 Democrats accuse SEC of withholding key analysis on crypto bill
🔓 Coinbase under scrutiny for delayed disclosure of $400M data breach
🕵️ BitMEX exposes Lazarus hacker missteps, traces IP to China
🌐 Webus files with SEC for $300M XRP treasury using Ripple payments
🤐 CZ calls for dark pool DEX after $100M liquidation controversy
Circle, the issuer of USDC, has completed an upsized initial public offering, raising nearly $1.1 billion through the sale of 34 million shares priced at $31 each. The offering, which exceeded initial targets, gives the USDC issuer an initial market capitalization of $6.9 billion..
The IPO drew strong investor interest, with demand reportedly exceeding supply by more than 25 times. Major participants include ARK Investment Management and BlackRock, the latter of which manages a reserve fund backing USDC that holds $53.3 billion in assets.
Circle’s USDC currently holds a 29% share of the stablecoin market, with $61.5 billion in circulation. The listing, led by JPMorgan, Citi, and Goldman Sachs, comes as Congress weighs new stablecoin regulations that could further legitimize the sector.
On Thursday, Circle’s shares began trading on the New York Stock Exchange under the ticker symbol CRCL, opening at $69 and surging past $100 in early trading before ending the day just above $83 with a market capitalization close to $17 billion. The listing marks Circle’s long-awaited market debut, following a previously failed SPAC attempt in 2021.
In related news, stablecoin startup Atticus, still in stealth, is nearing a $2 billion valuation with a new raise led by Anduril CEO Palmer Luckey and backed by Haun Ventures.
Trump Media Eyes Bitcoin ETF as Wallet Controversy Unfolds
Trump Media & Technology Group is expanding its footprint in the crypto space, with a new filing to launch a spot bitcoin exchange-traded fund (ETF) branded under the Truth Social name. Submitted by NYSE Arca on behalf of Yorkville America Digital, the proposed ETF would track the price of bitcoin, with asset custody provided by Foris DAX Trust, a Crypto.com-affiliated firm.
This initiative follows Trump Media’s earlier announcement of a $2.5 billion bitcoin treasury plan, part of a broader collaboration with Crypto.com to roll out digital asset products. If approved, the Truth Social Bitcoin ETF would mark one of the most high-profile, politically-linked entries into the growing bitcoin ETF market, which now manages over $130 billion in assets.
The prospectus for the Truth Social Bitcoin ETF just dropped
— James Seyffart (@JSeyff)
12:34 PM • Jun 5, 2025
Meanwhile, a separate project involving a “$TRUMP Wallet” stirred confusion after it was promoted by NFT marketplace Magic Eden. A Trump Organization spokesperson denied any involvement, telling CoinDesk, “The Trump Organization knows nothing about this project.” Donald Trump Jr. also denied official ties to the wallet.
On Thursday afternoon, Bloomberg reported that the Trump family issued cease-and-desist letters to Magic Eden and GetTrumpMemes.com over the unauthorized use of their name in the $TRUMP Wallet project.
SEC Raises Red Flags Over Staked ETH and SOL ETF Filings
The U.S. SEC has voiced concern that two proposed staking-based ETFs from REX Financial and Osprey Funds may not qualify as legitimate exchange-traded funds under federal securities law. The funds, which aim to provide exposure to staked Ethereum and Solana assets, had recently received effective registration status but are now facing regulatory scrutiny.
In a letter, SEC staff questioned whether the ETFs, structured as C-corporations, meet the legal definition of an investment company under the Investment Company Act. The agency warned that current disclosures could be “potentially misleading,” adding that the funds may have “improperly filed their registration statement.”
In other more positive news, JPMorgan will soon allow clients to use crypto ETFs like BlackRock’s iShares Bitcoin Trust as collateral for loans, expanding crypto’s role in wealth evaluations alongside traditional assets like stocks and real estate.
Ethereum Foundation Restructures R&D, Outlines Treasury Policy
The Ethereum Foundation announced a reorganization of its research and development division, now rebranded as “Protocol,” alongside a round of staff layoffs. While the foundation did not disclose the number of affected employees, it confirmed that several team members would not be continuing in their roles.
The restructuring is part of a broader effort to streamline operations and prioritize critical development goals, including scaling Ethereum’s base layer, expanding blobspace for data availability, and improving overall user experience. “We feel these set us on a more responsive and effective path,” the foundation stated in a blog post.
Simultaneously, the Foundation published its first formal treasury policy, setting financial guardrails for managing its crypto and fiat assets. Key targets include maintaining an operating expense buffer of 2.5 years and gradually reducing annual spending to 5% of total assets. “This policy reflects our conviction that 2025–26 are pivotal for Ethereum,” said Co-Executive Director Hsiao-Wei Wang, emphasizing long-term sustainability and support for privacy-focused DeFi protocols.
Democrats Challenge SEC Over Withheld Analysis on Crypto Bill
House Democrats are accusing the U.S. SEC of selectively withholding critical feedback on the CLARITY Act, a proposed crypto market structure bill set for markup on June 10. According to multiple Democratic staffers, the SEC has refused to provide standard written technical assistance, despite reportedly delivering the same information to Republican lawmakers.
“This is supposed to be completely apolitical,” one staffer remarked, expressing concern that the SEC’s lack of cooperation could impact the bill’s evaluation and lead to unintended regulatory gaps.
The CLARITY Act seeks to redefine key securities laws and establish a formal framework for most digital assets, potentially shifting major oversight powers away from the SEC. In response to the alleged lack of transparency, Rep. Maxine Waters is preparing a letter urging SEC Chair Paul Atkins to deliver a bipartisan analysis.
Coinbase Faces Scrutiny Over Delayed Data Breach Disclosure
Coinbase is under fire for allegedly delaying disclosure of a customer data breach tied to a third-party support contractor in India. According to a Reuters investigation, the breach occurred in January when an employee at TaskUs, a U.S. outsourcing firm, was caught using her personal phone to photograph sensitive customer information on a work computer.
Former TaskUs employees and a source familiar with the incident said Coinbase was informed of the breach immediately. Despite this, the company did not disclose the breach until mid-May in a filing with the U.S. Securities and Exchange Commission. In the same filing, Coinbase revealed it had received a $20 million extortion demand related to the breach and declined to pay.
The incident contributed to a mass layoff of over 200 TaskUs employees and is part of a wider security issue that Coinbase estimates could cost up to $400 million.
CZ Calls for Dark Pool DEX After Wynn Liquidation Controversy
Binance founder Changpeng “CZ” Zhao has proposed a new type of decentralized exchange aimed at protecting traders from front-running and liquidation attacks. The idea emerged shortly after crypto trader James Wynn lost nearly $100 million in a high-leverage position on Hyperliquid, triggering accusations that his visible positions were deliberately targeted in a coordinated “liquidation hunt.”
“Given recent events, I think now might be a good time for someone to launch a dark pool perp DEX,” Zhao posted on X, referring to the need for more private trading infrastructure. He criticized the full transparency of current DEXs, where user orders and liquidation points are publicly visible.
Zhao suggested using technologies such as zero-knowledge proofs and atomic swaps to build a non-custodial, trustless platform that delays or hides order visibility. The proposal has sparked renewed industry debate on how to balance transparency with trader protection as institutional interest in DeFi continues to grow.
BitMEX Uncovers Security Flaws in Lazarus Hacker Operations
Researchers at crypto exchange BitMEX have identified major operational security failures within the Lazarus Group, a North Korean state-backed hacking network linked to billions in stolen digital assets. In a detailed report, BitMEX disclosed that one of the group’s operatives appeared to have exposed their real IP address, which traced to Jiaxing, China, a rare slip for the notoriously secretive organization.
Further investigation revealed access to a Supabase database used by the group, along with tracking scripts that exposed internal tactics. The findings suggest that Lazarus has fractured into specialized sub-groups with differing technical capabilities. Lower-tier teams focus on phishing and social engineering, while more advanced cells develop and deploy sophisticated malware.
Webus Taps XRP for $300 Million Treasury Initiative
China-based Webus International has filed a Form 6-K with the SEC, detailing plans to create a $300 million corporate treasury centered on XRP. The move, disclosed on Tuesday, signals the chauffeur and hospitality firm’s deepening involvement in blockchain-based payments.
According to the filing, Webus intends to fund the initiative through debt financing, including loans and credit facilities, rather than issuing new shares. The company also confirmed it is partnering with asset manager Samara Alpha to help structure its XRP reserve.
Webus aims to integrate Ripple’s payment network into its global operations to streamline cross-border settlements and improve booking transparency for its chauffeured services. It also plans to expand its partnership with Tongcheng Travel Holdings to utilize the XRP Ledger for international ride settlements and driver compensation.
This follows similar announcements by VivoPower and Wellgistics, marking a broader trend of institutional interest in Ripple’s ecosystem.