Crypto faces security shocks and falling prices while AI surges ahead, driving infrastructure demand and regulatory pushback across global markets.
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In crypto, a mix of technical vulnerabilities and market pressure is weighing on sentiment. Zcash’s disclosure of a critical, long-standing flaw and Bitcoin’s drop below key levels highlight fragility, while large ETF outflows and mounting paper losses reinforce a cautious institutional stance. At the same time, exchange delistings and regulatory scrutiny signal tightening controls across the ecosystem.
In AI, growth is accelerating but not without resistance. Demand for compute is reshaping industries, with Bitcoin miners pivoting into energy suppliers and utilities benefiting from data centre expansion. However, environmental concerns and infrastructure strain are prompting regulatory pushback, including outright bans and moratoriums on new facilities.
Get up to speed with the latest in Web3 and AI with this week’s Pasar Pulse.
Crypto and Web3
Zcash Discloses Massive Security Flaw
Zcash plummeted nearly 38% after developers revealed a four-year-old vulnerability in its Orchard shielded pool. The critical bug, found via AI auditing, theoretically allowed undetectable, unlimited counterfeiting of ZEC.
HTX to Delist Trump-Linked USD1 Token
Following a dispute where World Liberty Financial unilaterally froze exchange-linked addresses, HTX announced it will delist the USD1 stablecoin. Eligible user holdings will be automatically converted to USDT.
Strategy Faces $11 Billion Paper Loss
Strategy’s Bitcoin paper loss has topped $11 billion as BTC dipped below the company’s average purchase price of $75,699. Executive Michael Saylor downplayed the slide, attributing it to capital rotation.
Peptide Grey Market Tops $100M
A surging “looksmaxxing” social media trend has pushed the crypto-fuelled grey market for unbranded weight-loss and appearance-enhancing peptides past $100 million, according to Chainalysis.
Pump.fun Launches Bizarre Marketing Bounties
Pump.fun has introduced an open marketplace where users can fund extreme promotional stunts. Escrowed crypto rewards are paid out for reckless actions like getting forehead tattoos or quitting jobs on live streams.
Bitcoin Erases Post-US Election Gains
Bitcoin has fallen below its November 2024 election day price of $69,355, recently trading near $60,619. This marks a 52% drop from its all-time high of $126,080, driven by heavy ETF outflows.
Police Probe Korean Polymarket Traders
South Korea’s Gangwon Provincial Police Agency has launched an illegal gambling investigation into local Polymarket users. traders could face fines of up to 10 million won ($6,500) under strict domestic betting laws.
Hong Kong Creates Expert Group for Tokenised Bonds
The HKMA has established a dedicated expert group to drive the adoption of tokenised bonds. The group will examine policy measures, market practices, and innovations to build on the city’s previous digital bond issuances.
Artificial Intelligence (AI)
Bitcoin Miners Fuel Massive AI Boom
Bernstein reports that Bitcoin miners are becoming power landlords. Over the past two years, miners secured 17 deals worth over $110 billion, supplying 6 gigawatts of critical power to tech giants.
California City Enacts Permanent Data Centrer Ban
Residents have overwhelmingly voted (86.3%) for a ballot measure to permanently ban data centres citywide. The historic vote aims to protect local air quality, water resources, and utility rates from AI-driven infrastructure.
AI and Data Centres Boost Utility Stocks
Wells Fargo Advisors reports that rising AI and data centre investments are driving stock market returns. The utilities sector stands out as a core beneficiary, with electric utilities seeing the highest growth.
Anthropic Proposes Global AI Pause Option
Anthropic has suggested a global “temporary pause” on AI development to address risks like recursive self-improvement. The company plans to convene policymakers and researchers to discuss the dangers of advanced models.
AI to Protect World Cup Players From Online Abuse
FIFA is offering a free social media protection service to all 2026 World Cup teams. The AI-driven tool filters out hateful and abusive comments in under two seconds across major social platforms to protect the state’s strained power grid.
AI Agents Automate Shell Maintenance
Shell is deploying autonomous AI agents from C3 AI to oversee its entire maintenance lifecycle. Moving beyond basic anomaly detection, these agents will independently investigate alerts.
NY Votes to Pause Giant AI Data Centres
The New York state legislature approved a historic one-year moratorium on data centres to protect the state’s ageing grid. The bill introduces stricter environmental protections and consumer ratepayer protections.
European Tech Sovereignty Plan Launched
The European Commission has introduced “technological sovereignty” proposals to reduce its reliance on the US and China. The plan aims to secure critical infrastructure across various technologies.
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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