Crypto faces tightening liquidity and rising regulation, while AI pushes ahead amid growing concerns over real-world accountability.
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In Web3 and crypto, the week’s developments point to a market still constrained by macro conditions while grappling with structural maturity. Altcoin liquidity continues to thin, regulatory pressure is tightening across jurisdictions, and institutions are cautiously advancing through vehicles such as tokenised ETFs. At the same time, legal challenges and failed verticals such as blockchain gaming highlight a sector still searching for durable product-market fit beyond speculation.
Policy and oversight are also moving to the forefront. From stablecoin yield negotiations in the US to enforcement actions against prediction markets, regulators are increasingly shaping the boundaries of innovation. Meanwhile, security threats such as sophisticated wallet-draining malware reinforce the ongoing fragility of user infrastructure.
In AI, a parallel theme is emerging around trust, control, and accountability. Governments are stepping in with frameworks to guide development, while companies push forward with deeper integrations into daily life, from health data to autonomous agents. Yet repeated failures, including data leaks, biased systems, and fabricated content, underline how quickly adoption is outpacing safeguards.
Get up to speed with the latest in Web3 and AI with this week’s Pasar Pulse.
Crypto and Web3
Gemini Sued Over Prediction Market Pivot
Gemini and its founders are facing a class-action lawsuit over allegations they misled shareholders about the sustainability of their core business while concealing a strategic pivot into prediction markets.
Google Flags Crypto-Stealing Malware
Google’s Threat Intelligence team has identified ‘Ghostblade’, a JavaScript-based malware targeting iOS devices to extract private keys and sensitive user data. It accesses iMessage and Telegram data before deleting crash logs to avoid detection.
Grayscale Files for Spot Hyperliquid ETF
Grayscale has joined Bitwise and 21Shares in filing for a spot Hyperliquid ETF. The fund would track the HYPE token, with the firm also exploring staking mechanisms to offer yield alongside potential capital appreciation.
Nevada Court Issues 14-Day Ban on Kalshi
A Nevada court has ordered Kalshi to suspend its sports, entertainment, and election-related contracts for 14 days amid an ongoing jurisdictional dispute with state regulators. Arizona has also charged the firm with operating unlicensed gambling activities.
Altcoin Trading Volume Falls 80%
Altcoin spot trading volume on Binance has declined by 80% since October, as tighter monetary conditions keep market focus on Bitcoin. Analysts suggest a broad, 2021-style altcoin rally is unlikely.
Lawmakers Reach Agreement on Stablecoin Yield Provisions
US lawmakers have reached an agreement in principle on stablecoin yield provisions, marking progress for the proposed CLARITY Act. The framework aims to support innovation while mitigating risks such as deposit outflows from traditional banks.
Solana Foundation Claims Crypto Gaming Is Dead
Solana Foundation President Lily Liu stated that blockchain gaming is ‘not coming back’, criticising models built around speculative tokens and superficial mechanics. Despite significant investment, many projects have struggled to build lasting communities.
SBF Praises Trump Policies Amid Pardon Speculation
Imprisoned FTX founder Sam Bankman-Fried is reportedly using intermediaries to express support for President Trump’s foreign policy actions and regulatory appointments. Observers view this as a potential attempt to secure clemency.
Artificial Intelligence (AI)
Essex Police Halt Facial Recognition Due to Bias
Essex Police have suspended the use of live facial recognition after a study found the system disproportionately targeted Black individuals. While accurate in some cases, it demonstrated higher success rates for identifying men than women.
Fitbit to Integrate Medical Records for AI
Google has announced that Fitbit users will be able to link medical records, including lab results and prescriptions, to the platform. This will enable its AI health coach to deliver more personalised guidance.
Hachette Withdraws Novel Following AI Allegations
Hachette Book Group has withdrawn the release of the horror novel Shy Girl after allegations it was generated using AI. While the author denied direct use, they acknowledged that an associate had incorporated AI tools.
Google Search Tests AI-Generated Headlines
Google is experimenting with AI-generated headlines in Search, in some cases altering the original meaning of news articles. Publishers have criticised the changes as misleading.
OpenAI Developing Desktop Superapp
OpenAI is building a desktop superapp that integrates ChatGPT, Codex, and its Atlas browser into a unified interface. The initiative aims to streamline product offerings and reduce fragmentation.
Meta AI Agent Triggers Internal Data Leak
An internal Meta AI agent prompted an engineer to take actions that exposed sensitive user and corporate data for approximately two hours. Experts note that current AI agents lack the contextual awareness and memory needed for such tasks.
Trump Administration Unveils Blueprint for AI Dominance
The US administration has introduced a policy framework aimed at accelerating AI development while limiting state-level regulation. The plan includes provisions for child safety, federal likeness protections, and defers copyright disputes to the courts rather than Congress.
Journalist Suspended Over AI-Generated Quotes
Mediahuis has suspended senior journalist Peter Vandermeersch after he admitted to publishing fabricated quotes generated using AI. He attributed the incident to a lapse in editorial oversight, having failed to verify the content before publication.
That’s all for this week’s Pasar Pulse. Want more insights? Stay tuned to our site or subscribe via email!
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