AltLayer has officially achieved the ISO/IEC 27001:2022 certification, marking a significant milestone in our journey to provide the world’s most secure blockchain infrastructure. As the demand for scalable blockchain solutions grows, the need for Rollup-as-a-Service (RaaS) security has never been more critical. This certification serves as a third-party validation that AltLayer’s Information Security Management System (ISMS) and supporting operational controls meet international information security standards. For our partners and the broader Web3 ecosystem, this ensures that AltLayer is not just a leader in performance, but a pioneer in professional-grade reliability.
The transition from experimental “alpha” stages of blockchain development to mass-market adoption requires a shift in how we approach risk. By securing this certification, AltLayer positions itself as a secure ISO 27001 Blockchain Provider, bridging the gap between the decentralized world and the rigorous requirements of global finance and enterprise operations.
What Is ISO/IEC 27001:2022 and Why Does It Matter for Rollups?The ISO/IEC 27001:2022 standard is the international benchmark for managing information security. Certification to this standard assesses an organization’s Information Security Management System (ISMS), providing independent assurance of how people, processes, and technology are governed to protect information assets.
As rollups increasingly support high-value and high-throughput environments, operational security and governance become critical. ISO/IEC 27001 provides a structured, risk-based framework for managing these risks at the organizational and process level.
Our RaaS infrastructure, operated under an ISO/IEC 27001:2022-certified Information Security Management System (ISMS), is designed to manage these exact risks. By adhering to this standard, AltLayer has implemented rigorous controls to ensure the confidentiality, integrity, and availability of information assets and prevent:
Unauthorized Access: Implementing access control and security measures to manage the risk of unauthorized access to systems within scope.System Downtime: Establishing and maintaining documented, tested, and reviewed availability and disaster recovery arrangements to support service continuity.Data Breaches: Applying controls to manage risks to the confidentiality, integrity, and availability (CIA) of information assets belonging to AltLayer, its partners, and end-users, within the ISMS scope.For a rollup to be truly resilient, it needs more than just cryptographic proofs; it needs an institutional-grade operational backbone. An ISO/IEC 27001:2022-certified Information Security Management System (ISMS) provides a structured framework for managing security as a continual improvement cycle, with defined processes for monitoring, reviewing, and enhancing controls in response to an evolving threat landscape.
What ISO 27001 Certified RaaS Means for Existing and New AltLayer PartnersThis certification is a transformative development for our entire ecosystem. Whether you are an existing developer or a prospective enterprise partner, the transition from standard Rollups to secure Rollups aligns blockchain operations with global enterprise security standards.
Existing CustomersFor our current partners, this achievement offers an immediate upgrade to your own security posture. Your rollups are supported by infrastructure managed in accordance with AltLayer’s ISO/IEC 27001:2022-certified ISMS. This provides you with enhanced trust to share with your community and investors. Furthermore, as your projects grow and seek their own regulatory approvals or enterprise partnerships, AltLayer’s Compliance Framework provides a strong, audit-ready foundation that can support partners in their own compliance and assurance efforts.
New CustomersFor teams looking to launch their own chains, the choice of an infrastructure provider is the most critical decision they will make. Onboarding with AltLayer is now more secure than ever. New customers gain the confidence of working with a RaaS provider designed to meet the operational and security expectations of institutional clients.
Institutional ClientsThe primary beneficiaries of this milestone are banks, traditional financial institutions, and large-scale enterprises. For these entities, “trust me” is not a viable strategy; they require audited, verifiable security. AltLayer’s institutional-grade Rollups satisfy the strict procurement and risk management requirements of the Fortune 500. By offering a Secure Rollup as a Service for enterprises, we make it possible for regulated entities to deploy institutional rollup without compromising on their internal compliance mandates. This certification removes a critical barrier for institutions exploring on-chain infrastructure.
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Institutional-grade Rollups Demand More Than Performance
Choosing an ISO 27001 Blockchain Provider is a signal that an organization values long-term stability over short-term hype. This certification is a core component of a broader Compliance Framework that takes into account the legal and operational realities of the modern world. For banks, funds, credit managers, and other regulated institutions, the ability to demonstrate that their blockchain infrastructure is operated by a provider with an ISO/IEC 27001:2022-certified Information Security Management System (ISMS) is often a critical factor in regulatory and internal risk assessments.
Institutional-grade Rollups must be built to withstand not just hackers, but also the scrutiny of auditors. This involves:
Risk Assessment: Systematically identifying and assessing risks to information assets to support timely and appropriate risk treatment.Asset Management: Maintaining a strict registry of critical infrastructure, such as sequencing hardware and cloud environments, enforcing the principle of least privilege to ensure audited personnel possess only the minimum permissions necessary to manage the rollup. Maintaining defined inventories, ownership, and access controls for critical infrastructure, such as sequencing components and cloud environments, and enforcing the principle of least privilege so that personnel are granted only the access required for their roles.Physical and Environmental Security: Applying appropriate physical and environmental security controls to cloud environments used in the delivery and operation of rollups, in line with the ISMS scope.For regulated Web3 entrants, such as stablecoin issuers or tokenized real-world asset (RWA) platforms, AltLayer provides the best RaaS for institutional clients. We provide the technical agility of a cutting-edge L2 solution combined with the professional rigor of a global financial service provider. We are not just building institutional layer 2 solutions; we are building the trust layer for the future of finance.
The New Gold Standard for RollupsAltLayer’s achievement of the ISO/IEC 27001:2022 certification marks a turning point in the RaaS industry. We have moved beyond the “move fast and break things” era into a period of mature, reliable, and secure Rollups. This positions AltLayer firmly among the top RaaS providers for institutional clients, offering a level of transparency and accountability that is rare in the decentralized space.
As we continue to innovate with restaked rollups, fast finality layers, and decentralized sequencing, our commitment to security remains unwavering. We understand that for our partners to build the future, they need a foundation they can rely on, one that has been tested against the highest international standards.
By integrating the principles of confidentiality, integrity, and availability across our engineering practices and operational processes, AltLayer is ensuring that the next generation of the internet is not only faster but safer for everyone.
Security is not a feature, but the foundation of AltLayer’s rollups.
Cache Wallet, a multi-chain security-focused crypto wallet, has partnered with AltLayer, a cutting-edge blockchain infrastructure platform. The partnership aims to advance AI-led applications on the L2 ecosystems of Bitcoin. As Cache Wallet mentioned in its official social media announcement, the development intends to combine its recovery-focused wallet architecture and the purpose-built Bitcoin L2 for broader Ai adoption. Additionally, the move endeavors to decrease barriers for builders and users entering the Bitcoin, AI, and Web3 convergence space.
Cache Wallet is collaborating with AILayer, the first Bitcoin Layer 2 built to support the mass adoption of AI applications and accelerate the convergence of Bitcoin, Web3, and AI.
By integrating with Cache Wallet’s… pic.twitter.com/olOvIYX0Vr
— Cache Wallet (@CacheWallet) January 12, 2026 Cache Wallet and AltLayer Partner to Fortify Protected AI Adoption In partnership with AltLyer, Cache Wallet attempts to bolster protected AI adoption across the L2 network of Bitcoin. Thus, by aligning security-centered wallet infrastructure and the AI-driven blockchain technology, the development is incorporating the AI into the Bitcoin-related ecosystems. Additionally, with this development, AltLayer consumers get access to the multichain capabilities of Cache Wallet, permitting seamless cross-chain interaction.
Apart from that, the integration is poised to deliver protected access across different blockchains while maintaining recoverability in the long run. This feature is significantly important while the dApps are getting more andmore complex. At the same time, the recovery-first design of Cache Wallet focuses on user control and resilience, minimizing risks linked with compromised access or lost keys. Along with the infrastructure of AltLayer, this allows developers to deploy AI-led dApps with more efficiency.
Accelerating Interoperability and AI Innovation for Worldwide Bitcoin L2 Expansion According to Cache Wallet, the collaboration specifically enhances the developer experience with a stronger, scalable AI foundation for Bitcoin. By guaranteeing dependable cross-chain interoperability and dependable wallet access, the joint effort could open new utilities for the native operation of automated services and data-led protocols within the broadening L2 network of Bitcoin. Ultimately, the partnership is set to back a future marked by scalable and resilient Ai apps on Bitcoin for global adoption.
AUTHOR
Umair Younas is a cryptocurrency-related content writer linked with this work since 2019. Here, at Blockchainreporter, he serves as a news and article writer. He is a crypto, blockchain, NFTs, DeFi, and FinTech enthusiast. He has strong command over writing authentic reviews about brokers and exchanges and he has collaborated with our education team to write educational content as well. He has a dream to raise awareness among people about digital currencies. His works are well-researched and brimmed with information hence they provide fresh insights. Stay tuned to his posts if you want to stay up-to-date with the crypto-verse.
Rubio: US and Iran to continue technical consultations at the end of this month
Multiple foreign media outlets reported on the 24th that US Secretary of State Rubio said technical teams from the United States and Iran will hold further talks in Switzerland by the end of June. (Xinhua News Agency)
5 hours ago
Over the past 24 hours, total crypto market liquidations hit $606 million, with more than 130,000 traders liquidated.
According to Coinglass data, the global cryptocurrency market recorded $606 million in liquidations over the past 24 hours, including $542 million in long-position liquidations and $68.22 million in short-position liquidations. A total of 135,785 traders worldwide were liquidated in the same period, with the largest single liquidation order occurring on Binance’s BTCUSDT trading pair, valued at $12.0111 million.
5 hours ago
Bitcoin falls below $60,000
According to HTX market data, Bitcoin has fallen below $60,000, with a 4.3% drop in the past 24 hours.
5 hours ago
US Treasury Secretary: AI boom may boost productivity and help curb inflation.
US Treasury Secretary Bessent told CNBC in an interview that he hopes the Federal Reserve will remain "open-minded" about the inflation pattern after the reversal of Iran-related energy price hikes. Bessent noted that the U.S. could enter an economic environment marked by high GDP growth without a corresponding rise in traditional inflation. He cited that in the 1990s, Alan Greenspan foresaw that office modernization and the internet could drive non-inflationary growth, and allowed the economy to keep expanding. Bessent believes the U.S. has a strong chance of seeing a similar scenario again. When asked whether the Fed still needs to worry about potential inflation and whether interest rate cuts are possible this year or next, Bessent declined to comment. However, he argued that it is necessary to stay open-minded about the price or inflation impacts from the Iran conflict, and monitor inflation performance after those effects subside. Bessent also said an open mind is needed, as the AI boom could boost productivity and deliver disinflationary effects, helping inflation return to the Fed’s target level. He added that he believes Kevin Warsh will choose the optimal path that meets both the Fed’s inflation and growth mandates. Bessent also noted that Warsh previously took a hawkish stance on inflation.
5 hours ago
US stocks' intraday storage sector sees broad declines, with Western Digital and Seagate Technology both falling over 4%.
According to Bitget data, during U.S. stock trading hours, the storage sector saw broad declines: Western Digital (WDC) fell 4.47%, Seagate Technology (STX) dropped 4.17%, SanDisk (SNDK) declined 2.31%, and Micron Technology (MU) edged down 0.96%. Most optical communication concept stocks rose, with Corning (GLW) leading the gains at 9.75%, followed by Ciena (CIEN) up 3.24%, Coherent (COHR) rising 2.93%, Lumentum (LITE) gaining 2.61%, and Nokia (NOK) advancing 1.82%. Additionally, Marvell Technology (MRVL) fell 2.59% and Applied Optoelectronics (AAOI) declined 1.90%.
5 hours ago
During intraday trading in U.S. stocks, crypto-related concept stocks fell broadly, with MSTR dropping more than 7%.
According to Bitget market data, the three major U.S. stock indexes rose broadly: the Dow Jones Industrial Average gained 0.94%, the S&P 500 increased 0.60%, and the Nasdaq rose 0.63%. Crypto-related stocks fell across the board, with declines as follows: Strategy (MSTR) down 7.33%; Circle (CRCL) down 4.35%; Bitmine (BMNR) down 3.97%; Coinbase (COIN) down 3.73%; Robinhood (HOOD) down 3.70%; Gemini (GEMI) down 3.27%; Bullish (BLSH) down 3.25%; Sharplink (SBET) down 3.19%.
PANews reported on May 28th, citing Cointelegraph, that monthly payment volume for crypto-linked debit and credit cards has increased by approximately 230% year-over-year, reaching a cumulative transaction volume of $7.8 billion this month, reflecting the rapid adoption of crypto payment products. Visa, through partnerships with on-chain native companies like Jupiter Global, holds approximately 90% of the crypto card transaction share. OKX launched a stablecoin payment card based on the Mastercard network in Europe this January, with supermarket shopping being the largest category, accounting for approximately 26%, followed by restaurant spending at 18%, and online shopping at 13%. OKX stated that true payment adoption will only be realized when cryptocurrency is used to pay for lunch. In March, Visa and Stripe's Bridge announced plans to launch stablecoin-linked payment cards in over 100 countries, initially supporting 18 countries, including Argentina, Colombia, and Mexico.
Rubio: US and Iran to continue technical consultations at the end of this month
Multiple foreign media outlets reported on the 24th that US Secretary of State Rubio said technical teams from the United States and Iran will hold further talks in Switzerland by the end of June. (Xinhua News Agency)
5 hours ago
Over the past 24 hours, total crypto market liquidations hit $606 million, with more than 130,000 traders liquidated.
According to Coinglass data, the global cryptocurrency market recorded $606 million in liquidations over the past 24 hours, including $542 million in long-position liquidations and $68.22 million in short-position liquidations. A total of 135,785 traders worldwide were liquidated in the same period, with the largest single liquidation order occurring on Binance’s BTCUSDT trading pair, valued at $12.0111 million.
5 hours ago
Bitcoin falls below $60,000
According to HTX market data, Bitcoin has fallen below $60,000, with a 4.3% drop in the past 24 hours.
5 hours ago
US Treasury Secretary: AI boom may boost productivity and help curb inflation.
US Treasury Secretary Bessent told CNBC in an interview that he hopes the Federal Reserve will remain "open-minded" about the inflation pattern after the reversal of Iran-related energy price hikes. Bessent noted that the U.S. could enter an economic environment marked by high GDP growth without a corresponding rise in traditional inflation. He cited that in the 1990s, Alan Greenspan foresaw that office modernization and the internet could drive non-inflationary growth, and allowed the economy to keep expanding. Bessent believes the U.S. has a strong chance of seeing a similar scenario again. When asked whether the Fed still needs to worry about potential inflation and whether interest rate cuts are possible this year or next, Bessent declined to comment. However, he argued that it is necessary to stay open-minded about the price or inflation impacts from the Iran conflict, and monitor inflation performance after those effects subside. Bessent also said an open mind is needed, as the AI boom could boost productivity and deliver disinflationary effects, helping inflation return to the Fed’s target level. He added that he believes Kevin Warsh will choose the optimal path that meets both the Fed’s inflation and growth mandates. Bessent also noted that Warsh previously took a hawkish stance on inflation.
5 hours ago
US stocks' intraday storage sector sees broad declines, with Western Digital and Seagate Technology both falling over 4%.
According to Bitget data, during U.S. stock trading hours, the storage sector saw broad declines: Western Digital (WDC) fell 4.47%, Seagate Technology (STX) dropped 4.17%, SanDisk (SNDK) declined 2.31%, and Micron Technology (MU) edged down 0.96%. Most optical communication concept stocks rose, with Corning (GLW) leading the gains at 9.75%, followed by Ciena (CIEN) up 3.24%, Coherent (COHR) rising 2.93%, Lumentum (LITE) gaining 2.61%, and Nokia (NOK) advancing 1.82%. Additionally, Marvell Technology (MRVL) fell 2.59% and Applied Optoelectronics (AAOI) declined 1.90%.
5 hours ago
During intraday trading in U.S. stocks, crypto-related concept stocks fell broadly, with MSTR dropping more than 7%.
According to Bitget market data, the three major U.S. stock indexes rose broadly: the Dow Jones Industrial Average gained 0.94%, the S&P 500 increased 0.60%, and the Nasdaq rose 0.63%. Crypto-related stocks fell across the board, with declines as follows: Strategy (MSTR) down 7.33%; Circle (CRCL) down 4.35%; Bitmine (BMNR) down 3.97%; Coinbase (COIN) down 3.73%; Robinhood (HOOD) down 3.70%; Gemini (GEMI) down 3.27%; Bullish (BLSH) down 3.25%; Sharplink (SBET) down 3.19%.
PANews reported on May 30th, citing Bloomberg, that global investors have been flocking to Samsung Electronics and SK Hynix stocks, but high share prices have triggered the 10% holding limit for some funds, forcing them to passively reduce their positions. It is understood that Zurich-based GAM Investment Management and Singapore-based Jupiter Asset Management have both adjusted their portfolios to comply with the position limit rules. Statistics show that as of Thursday, global investors had net sold $63.6 billion worth of South Korean stocks, the largest monthly sell-off since 1999. Goldman Sachs analysts pointed out that if the market concentration of Samsung and SK Hynix continues to increase, they may face additional selling pressure in the future, although most of the forced selling has already been completed.
Delphi Digital says the airdrops are over, after finding that 78% to 94% of recipient wallets across six major tokens sold most of their allocation within 90 days.
The research firm tracked 3.7 million wallets over five years, arguing that free token giveaways now produce sellers rather than committed holders.
Are Airdrops Dead? Delphi Says Up to 94% of Wallets Dump Within 90 DaysAirdrops became a standard way for projects to seed communities and reward early users. However, the model has faced scrutiny lately.
Delphi studied Uniswap (UNI), Arbitrum (ARB), Jupiter (JUP), and Pudgy Penguins (PENGU), among other tokens spread across four chains. Exit rates rose over time rather than settling down.
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Holders Selling Tokens After an Airdrop. Source: X/Delphi DigitalDelphi found real dump rates ran 4 to 11 percentage points higher at day 90 than at day 30. The widely cited 30-day figure, therefore, understates the number of recipients who leave.
The firm made four core arguments for why it could get worse for airdrops. First, the cost of running fake “sybil” wallets is collapsing toward zero as automated tools make farming cheap and detection unreliable.
Second, the next wave of issuers, including tokenized treasuries and regulated DeFi, won’t send tokens to anonymous wallets. Third, the acquisition math fails, with Arbitrum paying an estimated $1.16 billion to users who left within a month.
Finally, the firm also said that outlier wins prove little. Hyperliquid (HYPE) absorbed sales through buybacks, funded by more than $1 billion in revenue. Jito (JTO) avoided farming because its eligible group stayed small.
“Token economics are starting to require real protocol performance. MegaETH locked 53% of its supply behind performance targets. Pendle routes roughly 80% of revenue into buybacks for stakers. Token distribution is moving from handouts to performance,” Delphi added.
Independent tracking had already pointed the same way. A trader previously logged 30 airdrops received since December 2024, finding only one still trading above its launch price at the time. Several had collapsed almost entirely, reinforcing the pattern.
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Rubio: US and Iran to continue technical consultations at the end of this month
Multiple foreign media outlets reported on the 24th that US Secretary of State Rubio said technical teams from the United States and Iran will hold further talks in Switzerland by the end of June. (Xinhua News Agency)
5 hours ago
Over the past 24 hours, total crypto market liquidations hit $606 million, with more than 130,000 traders liquidated.
According to Coinglass data, the global cryptocurrency market recorded $606 million in liquidations over the past 24 hours, including $542 million in long-position liquidations and $68.22 million in short-position liquidations. A total of 135,785 traders worldwide were liquidated in the same period, with the largest single liquidation order occurring on Binance’s BTCUSDT trading pair, valued at $12.0111 million.
5 hours ago
Bitcoin falls below $60,000
According to HTX market data, Bitcoin has fallen below $60,000, with a 4.3% drop in the past 24 hours.
5 hours ago
US Treasury Secretary: AI boom may boost productivity and help curb inflation.
US Treasury Secretary Bessent told CNBC in an interview that he hopes the Federal Reserve will remain "open-minded" about the inflation pattern after the reversal of Iran-related energy price hikes. Bessent noted that the U.S. could enter an economic environment marked by high GDP growth without a corresponding rise in traditional inflation. He cited that in the 1990s, Alan Greenspan foresaw that office modernization and the internet could drive non-inflationary growth, and allowed the economy to keep expanding. Bessent believes the U.S. has a strong chance of seeing a similar scenario again. When asked whether the Fed still needs to worry about potential inflation and whether interest rate cuts are possible this year or next, Bessent declined to comment. However, he argued that it is necessary to stay open-minded about the price or inflation impacts from the Iran conflict, and monitor inflation performance after those effects subside. Bessent also said an open mind is needed, as the AI boom could boost productivity and deliver disinflationary effects, helping inflation return to the Fed’s target level. He added that he believes Kevin Warsh will choose the optimal path that meets both the Fed’s inflation and growth mandates. Bessent also noted that Warsh previously took a hawkish stance on inflation.
5 hours ago
US stocks' intraday storage sector sees broad declines, with Western Digital and Seagate Technology both falling over 4%.
According to Bitget data, during U.S. stock trading hours, the storage sector saw broad declines: Western Digital (WDC) fell 4.47%, Seagate Technology (STX) dropped 4.17%, SanDisk (SNDK) declined 2.31%, and Micron Technology (MU) edged down 0.96%. Most optical communication concept stocks rose, with Corning (GLW) leading the gains at 9.75%, followed by Ciena (CIEN) up 3.24%, Coherent (COHR) rising 2.93%, Lumentum (LITE) gaining 2.61%, and Nokia (NOK) advancing 1.82%. Additionally, Marvell Technology (MRVL) fell 2.59% and Applied Optoelectronics (AAOI) declined 1.90%.
5 hours ago
During intraday trading in U.S. stocks, crypto-related concept stocks fell broadly, with MSTR dropping more than 7%.
According to Bitget market data, the three major U.S. stock indexes rose broadly: the Dow Jones Industrial Average gained 0.94%, the S&P 500 increased 0.60%, and the Nasdaq rose 0.63%. Crypto-related stocks fell across the board, with declines as follows: Strategy (MSTR) down 7.33%; Circle (CRCL) down 4.35%; Bitmine (BMNR) down 3.97%; Coinbase (COIN) down 3.73%; Robinhood (HOOD) down 3.70%; Gemini (GEMI) down 3.27%; Bullish (BLSH) down 3.25%; Sharplink (SBET) down 3.19%.
Jupiter Predict, the prediction market arm of Solana’s favorite DeFi superapp, has announced its biggest product update since launch.
Built natively on Solana, Jupiter Forecast brings the liquidity and trade execution of propAMMs to the versatility and diversity of Prediction Markets.
Forecast comes as Jupiter Predict accelerates its growth trajectory, recoding three consecutive all-time highs in monthly volume ahead of the world’s biggest sporting and prediction spectacle.
Jupiter Forecast to Bring Fresh Liquidity to Prediction Markets Prediction markets have been one of crypto’s great success stories in recent years, with market leaders like Polymarket and Kalshi breaking out of the confines of the industry and hitting critical mass in the Web2 world.
But despite widespread adoption among retail users, prediction markets have long been plagued by a critical flaw; poor liquidity. Outside major events, liquidity on individual markets is thin, fragmented, and often insufficient for effective trading.
Solana DeFi giant Jupiter is optimistic that prop AMMs may offer a solution. In a critical update to one of its fastest-growing products, Jupiter Forecast brings prop AMM liquidity to its prediction markets. Where prediction markets typically rely on a singular liquidity pool per contract, Jupiter Forecast enables traders to buy shares in any market directly from competing market makers.
While the exact design is still unannounced, Jupiter has implied that individual markets will be tokenized, enabling greater composability across the wider DeFi ecosystem.
Jupiter forecast will make its debut with 15-minute crypto price markets, and is expected to open alternative markets up to prop AMM liquidity in the near future. Jupiter co-founder Siong Ong stipulated that the protocol can “technically create any market”, provided that makers see sufficient demand.
Jupiter Predict Records Third-Straight ATH in Monthly Volume Fortunately for market makers, trading data suggests that the demand for Solana-native prediction markets is accelerating. After originally launching in October 2025, Jupiter Predict has enjoyed a surge of activity and trading volume in Q2, recording three consecutive all-time highs in monthly volume.
The Jupiter Forecast launch comes at an opportune moment for prediction market traders. Expected to engage over 5 billion viewers, the upcoming FIFA World Cup is slated to become the most watched sporting event in history.
For internet speculators, this year’s event will be the first time in which prediction markets are part of the world’s cultural and financial zeitgeist, suggesting these venues may sit on the cusp of unprecedented economic activity.
Elsewhere in the Solana ecosystem, rival teams are reportedly preparing to launch Solana-native prediction venues. With the network’s most competitive protocols building onchain prediction markets, Solana is finally entering the prediction market race in earnest, seeking to disrupt a field dominated by Polymarket and Kalshi, a powerful duopoly that has collectively raised over $4.5B, boasting a shared valuation of $37B.
Read More on SolanaFloor Is it time to bring down $SOL inflation?
PANews reported on June 5th that Jupiter, a decentralized aggregator within the Solana ecosystem, launched Forecast, the first native prediction market on Solana. Unlike traditional models that rely on a single liquidity pool, Forecast allows proprietary automated market makers to quote independently, matching users with the most competitive current quotes. The product will be integrated into Jupiter's existing Jup Predict interface, initially offering a 15-minute window for short-term cryptocurrency price predictions, with plans to expand to other types later. Jupiter stated that Forecast is not in competition with its partner Polymarket, but rather serves as supplementary infrastructure providing additional liquidity. Each prediction market created through the Forecast platform will issue its own native token to simplify integration.
When your best-performing holdings become so dominant that portfolio rules force you to dump them, you know the market has entered strange territory. That is exactly what happened to Sam Konrad, the investment manager for Asia Equity Income at Jupiter Asset Management.
On June 8, Konrad revealed that his fund has been compelled to sell its positions in TSMC, Samsung, and MediaTek, three of Asia’s most important semiconductor companies. The reason: the AI rally has made these stocks so large within regional benchmarks that holding them violates the portfolio concentration limits that govern actively managed funds.
The numbers behind the forced selling The year-to-date performance of these three chipmakers tells the story. TSMC is up 52%. Samsung has surged 159%. MediaTek has climbed 184%.
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TSMC, Samsung, and SK Hynix now comprise almost one-third of the MSCI Asia Pacific ex-Japan Index. In local markets, the distortion is even more extreme. TSMC alone accounts for 41.5% of Taiwan’s TAIEX index. Samsung and SK Hynix together represent 55% of South Korea’s KOSPI.
“We have been forced sellers of TSMC, Samsung and MediaTek,” Konrad stated.
Konrad’s fund strategy allocates nearly half of its assets to Taiwan and South Korea, with MediaTek previously serving as the largest position. The selling was mechanical, not philosophical.
Asia’s own Magnificent 7 problem US markets spent much of 2023 and 2024 grappling with the “Magnificent 7” phenomenon, where a small number of tech leaders grew so large that the S&P 500 became a de facto tech fund. Asia is now experiencing its own version of that same structural issue, concentrated almost entirely in the semiconductor supply chain. A single company commanding 41.5% of an entire national stock index distorts capital allocation, risk management, and performance benchmarking for every fund operating in the region.
South Korean equities have experienced significant outflows as investors reassess the risks of holding positions in markets where two companies account for more than half the benchmark weight.
Passive funds have been a major driver of this concentration spiral. Approximately $510 billion has flowed into Asian markets over the past five years. A quarter of that total, roughly $127.5 billion, arrived in just the last six months.
What this means for investors Active managers who are constrained by portfolio rules become natural sellers of the most popular stocks at precisely the moment when passive flows are pushing those same stocks higher. When three companies account for a third of a major regional index, any correction in the semiconductor cycle would hit the benchmark with disproportionate force.
Active managers are increasingly looking at smaller AI-adjacent companies further down the supply chain, including packaging firms, testing equipment makers, and component suppliers that benefit from the same AI infrastructure buildout without carrying the same benchmark weight problems.
Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.
Jupiter Exchange just made it possible to trade leveraged tokenized versions of US stocks and ETFs directly on Solana. The integration brings Shift RWA’s “Series Tokens” to one of the largest decentralized exchanges in crypto, giving traders access to 2x and 3x leveraged positions, plus inverse bets, without the ever-present threat of getting liquidated.
Think of it like buying a leveraged ETF on Robinhood, except there’s no brokerage account, no KYC for secondary trading, and the market never closes. The tokens trade 24/7 as standard SPL tokens on Solana, which means they slot into the existing DeFi ecosystem like any other token.
How the tokens actually work Each token is backed 1:1 by positions purchased through Alpaca, a brokerage infrastructure provider. When someone mints a new Series Token through Shift RWA, a corresponding position gets opened on the backend. When they burn it, the position closes. The token’s price tracks the performance of the underlying leveraged ETF, not a perpetual funding rate or an oracle-dependent margin system.
In English: you get the same exposure as buying TQQQ or SOXL, but the asset lives on Solana and can be swapped, pooled, or used as collateral in DeFi protocols like Kamino or Orca.
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Jupiter’s integration also includes a dedicated screener that tracks price, trading volume, holder counts, and the discount or premium each token trades at relative to its underlying leveraged ETF.
Shift RWA’s funding and liquidity Shift RWA claims to have raised a $2M seed round and assembled over $40M in liquidity across its products.
The tokens trade permissionlessly on Jupiter and other Solana venues, meaning there’s no KYC gate for buying or selling on the secondary market. Minting and burning, the process of creating new tokens or redeeming them, goes through Shift RWA’s own mechanism, which may involve compliance steps. But once a token exists and is circulating, it moves freely.
Where this fits in Solana’s tokenized equity push Prior integrations from xStocks and Ondo Global Markets laid groundwork, and a major partnership between Securitize, Jump, and Jupiter launched on May 5, 2026.
The tokenized stocks sector has grown to a market cap cited around $1B or more as of May 2026.
Shift RWA’s tokens aren’t just tradeable. They can be deposited into lending protocols, used as collateral, or paired in liquidity pools.
What this means for investors The no-liquidation feature deserves extra attention. Traditional leveraged ETFs achieve this by resetting daily. If TQQQ drops 33% in a day, you lose 33%, not your entire position. Shift RWA’s tokens appear to replicate this mechanic on-chain.
Leveraged ETFs suffer from volatility decay over time, meaning holding them long-term can erode returns even if the underlying asset trends in your direction. A 3x leveraged token that goes up 10% and then down 10% doesn’t return to breakeven, it ends up slightly lower. That math doesn’t change just because the product moved on-chain.
There’s also counterparty risk to consider. The 1:1 backing through Alpaca means traders are ultimately relying on Alpaca’s solvency and Shift RWA’s operational integrity.
Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.
Jupiter price has rebounded sharply from a multi-month low near $0.145 and is now testing the $0.20 resistance area as momentum indicators turn bullish.
Summary
Jupiter price has rallied nearly 40% from its June low, returning to a critical resistance zone around $0.20. Improved market sentiment and rising trading activity have helped fuel the token’s rebound over the past week. Technical indicators have turned bullish, with traders watching for a breakout toward higher resistance levels. According to data from crypto.news, Jupiter’s native token JUP climbed from a low of around $0.145 on June 11 to an intraday high near $0.20 on June 16.
The rebound came as traders returned to risk assets following reports that the United States and Iran had advanced toward a ceasefire framework that could reopen the Strait of Hormuz and ease concerns over energy supply disruptions.
The improvement in market sentiment triggered gains across cryptocurrencies, particularly among high-beta altcoins that had been under pressure for much of the year. As one of Solana’s largest decentralized finance platforms, Jupiter benefited from renewed activity across the network as capital flowed back into decentralized trading applications.
At the same time, trading activity on Jupiter accelerated. Daily volume increased sharply during the rally, with reported 24-hour turnover surpassing $46 million. Rising spot demand coincided with liquidations of bearish positions on derivatives exchanges, creating additional buying pressure as traders were forced to close short positions.
Jupiter price gains momentum after reclaiming key support Jupiter’s recent price action suggests the recovery began before the geopolitical catalyst emerged. On the daily chart, JUP established a local bottom near $0.145, a level that had previously acted as a major support area.
Jupiter daily price chart — June 16 | Source: crypto.news Technical indicators have since improved. The daily Relative Strength Index climbed above 58 after spending weeks below neutral territory, while the MACD indicator produced a bullish crossover and moved back into positive momentum. On the four-hour chart, JUP also reclaimed its Supertrend indicator, which shifted into bullish territory as the rally gained pace.
Jupiter 4-hour price chart — June 16 | Source: crypto.news The recovery has carried the token through several important resistance levels. JUP moved above the 78.6% Fibonacci retracement level near $0.173 and later reclaimed the 61.8% retracement around $0.195 before reaching the $0.20 area.
According to chart data, the current zone around $0.20 to $0.205 has repeatedly acted as both support and resistance throughout 2026, making it one of the most important levels on the chart.
Jupiter price faces a major test at $0.20 resistance Attention is now focused on whether buyers can secure a decisive breakout above that resistance zone.
A successful move above $0.20 could expose higher levels near $0.226 and $0.245, while the May peak around $0.276 remains the next major upside target on the daily timeframe.
Failure to hold the breakout, however, could send JUP back toward support around $0.195 and $0.173, levels that bulls reclaimed during the latest advance.
The current rally follows several months of weakness across the digital asset market. During the first half of 2026, crypto assets faced declining investor participation as institutional ETF flows slowed and capital shifted toward artificial intelligence companies and large technology listings.
The prolonged downturn removed much of the speculative excess that had built up earlier in the cycle. With market conditions improving and momentum indicators turning higher, traders are now watching whether JUP can convert its recovery into a sustained breakout above one of its most important resistance levels of the year.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
16 June 2026 | 19:38 Jupiter (JUP) has quietly become one of the most important pieces of infrastructure in Solana's DeFi ecosystem, yet the token's market value continues to raise questions about how crypto markets price utility, adoption, and long-term value accrual.
Key takeaways
Jupiter has processed over $3 trillion in cumulative volume while its token trades below $0.20. Coinbase, Robinhood, MetaMask, and Uniswap have all embedded Jupiter’s routing API. The fee switch has not been activated, which is the central open question for JUP valuation. DAO governance was suspended in late 2025 over token allocation disputes and remains in a recovery phase. If you evaluate Jupiter strictly by what its token is worth – roughly $0.193 as of mid-June 2026 – you will almost certainly draw the wrong conclusion. The protocol has processed more than $3 trillion in cumulative trading volume, controls between 80% and 95% of all aggregator traffic on Solana, and has been quietly embedded into the backend infrastructure of Coinbase, Robinhood, MetaMask, and Uniswap. The gap between those figures and a market capitalization of around $640 million is the central question surrounding JUP – and resolving that disconnect requires looking beyond the token’s price action and examining Jupiter’s role within Solana’s infrastructure.
What an aggregator actually does — and why it matters at scale Jupiter began as a routing engine. When a user wants to swap one token for another on Solana, Jupiter scans every active decentralized exchange on the network — Orca, Raydium, and others — and calculates which combination of pools produces the best execution price, accounting for fees, slippage, and available liquidity. The user sees a single transaction; behind it, Jupiter may have split the order across three different venues simultaneously.
The mechanism is not conceptually different from a flight comparison site: the airlines exist independently, but the aggregator determines which one gets the booking. At small scale, this is a convenience. At the scale Jupiter now operates — contributing heavily to Solana’s $34.5 billion in weekly DEX volume — it has become a critical piece of infrastructure for accessing liquidity on the network. Any application that needs access to Solana’s liquidity finds it most efficient to route through Jupiter rather than building direct integrations with every individual DEX. That structural position is what enabled the B2B pivot that defines Jupiter’s current phase.
The emphasis on broad distribution and user access is consistent with Jupiter’s stated philosophy. Speaking at Solana Summit Germany, Jupiter President Xiao-Xiao Zhu said the protocol’s “DNA” has always centered on rapid consumer adoption and globally accessible, permissionless finance, regardless of a user’s background or location.
"The DNA of Jupiter, the DNA of Solana, initially, was just rapid consumer adoption. And that DNA we will never betray."
"Self-custodial, permissionless, globally accessible from day one. Whether it's a wealthy American or a teenager in emerging markets, having that global,… pic.twitter.com/8gH0aoSYsf
— Solana (@solana) June 13, 2026
How Coinbase, Robinhood and MetaMask ended up running on Jupiter’s rails The most consequential development in Jupiter’s recent history is not a product launch — it is a distribution shift. During late 2025 and into 2026, Jupiter’s routing API was integrated into the backends of Robinhood, Coinbase, MetaMask, and Uniswap. Coinbase has gone a step further: users can now execute on-chain Solana trades directly within the standard Coinbase interface, with Jupiter handling liquidity routing invisibly underneath.
This reframes what Jupiter is. The consumer-facing swap interface at jup.ag is no longer Jupiter’s primary product — Jupiter is increasingly becoming backend infrastructure that other platforms use rather than develop themselves. A closer comparison in traditional finance is a payment processing network: most users never think about it, but every transaction depends on it. Jupiter also partnered with Bitwise Asset Management to build isolated USDe-denominated lending markets, allowing institutional allocators to use real-world assets as collateral within DeFi. Separately, the Frontier Traders Program — launched alongside the Solana Foundation — offers fee rebates and prioritized access to token launches for quantitative firms processing over $500 million in monthly volume.
Jupiter vs. Uniswap vs. Hyperliquid: three different bets on what DeFi should be Situating Jupiter within the broader DEX landscape requires a direct comparison with its two most prominent global rivals — Uniswap on multi-chain spot trading, and Hyperliquid on decentralized perpetuals.
Metric Jupiter (Solana) Uniswap (Multi-chain) Hyperliquid (L1) Role Liquidity Aggregator Automated market maker AMM Perpetuals orderbook AppChain YTD Volume $1.08 trillion $2.5T+ (all-time) $750B+ (perpetuals) Fees Dynamic (routing free) Fixed: 0.01%–1.0% Maker 0.02% / Taker 0.05% Stablecoin JupUSD (yield-bearing) None (USDC/USDT only) USDH (margin clearing) Value FOR TOKEN HOLDERS Staking rewards + DAO Fee-switch token burn Insurance fund + buybacks Liquidity model Routes across all Solana DEXs Siloed into own pools On-chain CLOB (CEX-style) These design choices lead to fundamentally different business models. Uniswap requires liquidity to be deposited directly into its own pools — capital is siloed within its system. Hyperliquid runs a fully on-chain central limit order book, mirroring how centralized exchanges operate, which gives it execution advantages for derivatives but limits flexibility as a spot routing layer. Jupiter aggregates across everything it can reach, meaning its potential user base grows alongside the entire Solana ecosystem rather than being capped by its own liquidity depth.
Technical picture: above all moving averages, RSI approaching caution territory On the 4-hour chart, JUP is trading above all three key moving averages for the first time in several weeks — a configuration that typically follows a sustained accumulation phase rather than a short-term spike. The 25% weekly gain has pushed price from a low near $0.148 back above the SMA200, which now sits at $0.1868 and has flipped from resistance to support.
SMA50 at $0.1683 – price is 14.5% above it, the widest gap of the three averages, reflecting how deep the prior drawdown was SMA100 at $0.1736 – crossed to the upside earlier this week alongside rising volume SMA200 at $0.1868 – the most watched level; reclaiming it after weeks below could mark a meaningful shift in market structure. RSI 14 at 61.86, signal line at 68.82 – momentum is strong but the signal line is approaching overbought territory, suggesting the $0.20 level may act as short-term resistance before any further continuation
Beyond swaps: lending, stablecoins, and prediction markets The “DeFi Superapp” label reflects Jupiter’s rapid expansion beyond token swaps over the past 18 months. Each new product addresses a specific capital efficiency problem that the original swap interface could not solve.
Product What it does Why it matters JupUSD Yield-bearing stablecoin (built with Ethena) Earns yield automatically during DCA orders, limit orders, and prediction market activity — idle capital between trades no longer sits flat JupSOL Liquid staking for SOL Users retain full liquidity while underlying SOL generates staking and MEV-backed yields — removes the traditional illiquidity cost of staking Jupiter Lend On-chain lending protocol Completed public beta with 83,000+ active users and zero bad debt — significant in a space where undercollateralized lending has repeatedly caused collapses ApePro Low-latency memecoin terminal Connects directly to Solana’s RPC infrastructure; executes trades during high-congestion periods when standard consumer wallets slow or fail Jupiter Forecast Native prediction market (June 2026) Isolated liquidity pools designed for professional trading firms; competes directly with Polymarket Token mechanics and the fee switch question that changes everything JUP’s tokenomics reached a structural milestone in 2026: the multi-year unlock schedule concluded, bringing circulating supply to approximately 3.32 billion tokens against a hard cap of 7 billion. The DAO passed a “Net-Zero Emissions” proposal that scaled back near-term unlock commitments and paused core team vesting schedules, reducing the structural sell pressure that had weighed on price throughout 2024 and 2025.
The long-term valuation debate centers on one mechanism: the fee switch. Jupiter generates significant protocol revenue from trading activity, but currently none of it flows to JUP token holders. If the DAO activates a fee distribution mechanism — routing a portion of protocol revenue to stakers — the token’s fundamental case changes materially. That decision has not been made, and given the governance difficulties of late 2025, it is not imminent. Until it is, JUP functions as a governance token whose relationship to the protocol’s actual cash flows remains indirect.
Three structural risks that the volume numbers don’t show Bear case factors
1
Governance fractures. In late 2025, Jupiter’s core team suspended DAO voting after disputes over token allocations and voting distributions raised concerns about the effectiveness of the governance model. Since then, the project has gradually resumed certain governance activities and community discussions, but a comprehensive long-term framework for decision-making and revenue sharing has yet to emerge. Because the fee switch ultimately requires DAO approval, uncertainty around governance remains a direct obstacle to any mechanism that could link protocol revenue to JUP holders.
2
Fee volatility tied to memecoin cycles. Protocol fees have dropped as much as 29% week-over-week during quiet retail periods. ApePro and the memecoin infrastructure are profitable when speculative activity is high; they do not constitute a stable revenue floor when it is not. The institutional integrations with Bitwise and the Frontier Traders Program are intended to address this, but the revenue mix remains heavily retail-dependent.
3
Single-network concentration. Every metric cited in this article exists within Solana. If the network experiences sustained downtime, a security incident, or loses developer momentum to competing Layer-1 networks, Jupiter has no fallback. Jupiter’s investment case depends heavily on Solana remaining a leading venue for on-chain activity.
What the $1 trillion number actually means The $1 trillion figure, by itself, says little about how much of that activity ultimately benefits JUP holders. Raw numbers include perpetuals leverage, bot activity, and wash trading that inflate totals across every protocol in the industry — Jupiter is not unique in this respect. More telling is the protocol’s growing list of B2B integrations. When Coinbase — a publicly traded, regulated centralized exchange — builds Jupiter’s routing into its product without announcing it as a feature, that reflects a judgment that Jupiter’s infrastructure is more reliable than anything Coinbase could build internally for Solana execution. That kind of quiet, structural adoption is harder to manufacture than volume numbers and more difficult for competitors to replicate quickly. Whether it translates into JUP token appreciation depends almost entirely on whether DAO governance can resolve the fee switch question — and when.
This article is for informational purposes only and does not constitute financial advice. Consult a professional before making investment decisions.
Author
Alex is Editor-in-Chief of Coindoo and co-founder of Millennial Media Group, with nearly a decade of experience covering financial markets - crypto first, then everything else. It started in 2016 with Bitcoin. Like most people at the time, he didn't fully understand it - so he kept digging. Blockchain, tokenomics, the projects, the cycles. That curiosity never stopped, and eventually pulled him into traditional markets too: equities, commodities, macro. Not because he left crypto behind, but because you can't properly understand one without the other. What drives him is straightforward: he wants to know why something is happening, not just that it's happening. Most market coverage stops at the headline - price up, price down, here's a chart. Alex finds that kind of reporting actively unhelpful. If you walk away from an article without understanding the mechanism behind the move, what did you actually learn? He holds a degree in Tourism from New Bulgarian University - not the most obvious path into financial markets, but markets have a way of pulling in people who are simply too curious to stay out. He has authored over 200 in-depth analyses and more than 10,000 articles across crypto and traditional finance. He still thinks every day in markets teaches him something new. That's probably why he hasn't stopped.
PANews reported on June 17th that the Kobeissi Letter, a capital markets commentary journal, published an article on the X platform stating that SpaceX is driving a surge in tokenized asset trading. In the past 30 days, on-chain tokenized stock trading volume reached $4.3 billion, a record monthly high, and a year-to-date increase of over 140%. Following SpaceX's IPO on June 15th, the 24-hour spot trading volume of tokenized stocks on Solana surpassed $100 million for the first time, with Solana once holding a 99% market share. Jupiter became the largest platform for tokenized SpaceX trading. The cumulative on-chain tokenized stock trading volume has surpassed $20 billion for the first time.
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Sports trading is alive and well on Solana, with a surge of World Cup activity pushing weekly trading volume on Jupiter Predict to new all-time highs.
Jupiter’s internal data suggests that sports trading now accounts for ~80% of the platform’s total volume, with 60% coming directly from World Cup related markets.
Despite trailing market leaders Kalshi and Polymarket, Solana’s budding prediction market scene is home to a diverse range of creative and experimental apps reimagining onchain events contracts.
Sports Trading Pushes Jupiter Predict Volume to All-Time High With the first week of World Cup action behind us, it’s safe to say that traders are flocking to prediction markets at unprecedented scale. Prediction markets across the industry have recorded new all-time highs in weekly volume, and Solana-based venues are no exception.
According to Blockworks data, Jupiter Predict just closed out its biggest week ever, witnessing over $2.9M in weekly trading volume, a new all-time high.
Shared exclusively with SolanaFloor, Jupiter’s internal data suggests that around 80% of this volume has been generated through sports markets, with 60% of the total being transacted through World Cup events.
Jupiter Predict’s growing activity is an encouraging sign for Solana’s prediction market sector. While the wider market is currently dominated by Kalshi and Polymarket, one of Jupiter Predict’s providers, onchain data suggests that Solana-native DeFi users are eager to trade events contracts on home soil.
Users who placed their debut predictions on the protocol on June 11, the first day of the World Cup, appear to have become some of Jupiter Predict’s most engaged users. Returning users have trended significantly higher since June 11, suggesting traders continue coming back to place more predictions on future games.
In a bid to streamline access to events contracts, Jupiter has natively integrated its prediction markets directly into its wallet.
Kalshi Commands Dominant Lead in Sector Outside Solana, prediction market leaders are also enjoying their best weeks ever, solidifying their case as the breakout crypto application of the past year. While Polymarket has historically dominated the sector, Kalshi has since eclipsed the incumbent in recent months.
According to Artemis data, Kalshi now commands 64% of all prediction market share, recording $6.4B in weekly trading volume. Solana onchain figures are certainly insignificant in the face of the prediction market duopoly, but the disparity represents a sizable opportunity for the DeFi economy, which enables democratized access to these markets at global scale.
Solana Ecosystem Experiments with Prediction Markets Despite Solana’s slow start in the prediction market race, the network’s DeFi economy is making up for its low volumes through the diversity of its app layer. Prediction Market-adjacent applications are cropping up all over the ecosystem, enabling creative new methods of trading events contracts.
Solana-based applications like Melee Markets, worm.wtf, and RideMarkets are reinventing how users interact with prediction markets. Where incumbents like Polymarket and Kalshi rely on tried-and-tested liquidity models, platforms like Melee Markets transform prediction markets into memecoin-esque assets. Worm.wtf brings leverage, and RideMarkets trades a collective narrative.
More recently, Jupiter Predict debuted Forecast, bringing prop AMM liquidity to prediction markets. Initially rolled out on short term crypto price markets, Forecast trading activity has been relatively low compared to Jupiter Predict’s main markets, though this is more likely due to the product’s infancy rather than any liquidity limitations.
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Jupiter [JUP] attracted a wave of fresh trading activity after surging 14.03% in 24 hours at press time, while volume exploded 113.83% to nearly $496 million across major exchanges.
The sharp increase in turnover indicated that traders actively chased the move rather than reacting to a temporary price fluctuation. JUP climbed to $0.2203 during the session, marking one of its strongest daily performances in recent weeks.
Rising participation accompanied the rally throughout the day, suggesting that interest had expanded beyond a small group of market participants. However, maintaining elevated activity remained important because sustained buying interest would determine whether the latest rally could develop into a broader trend reversal.
Why did JUP’s OI surge so sharply? Derivatives traders increased their exposure aggressively as JUP advanced, reinforcing the bullish reaction seen across the market.
At press time, Open Interest (OI) rose 39.94% to $64.2 million, showing that new positions had entered the market instead of traders merely closing existing contracts. The expansion in leveraged exposure aligned closely with the rise in price and trading volume, creating a stronger confirmation signal than price appreciation alone.
In many cases, rising OI alongside a rally reflects growing conviction among participants. Still, leveraged positioning also increases volatility because rapid price swings can trigger liquidations in either direction.
For that reason, the growing futures activity suggested stronger trader engagement, yet it also raised the possibility of sharper moves should sentiment change during the coming sessions.
Source: CoinGlass JUP channel breakout shifts market structure Technical conditions improved significantly after JUP broke above a descending channel that had contained price action since May.
Buyers reclaimed the channel resistance and subsequently pushed the token above the key $0.2154 level, transforming a former resistance zone into an area of support. The breakout altered the short-term market structure and strengthened the recovery that began near the $0.1465 support region earlier this month.
At the time of writing, RSI reinforced the improvement in conditions, climbing to 63.43 from its signal line near 49.63. The indicator remained below overbought territory, suggesting the rally still had room to develop.
Meanwhile, the next major resistance sat near $0.2646. If buyers maintained control above $0.2154, price could challenge higher resistance levels. However, losing that reclaimed zone could encourage another period of consolidation.
Source: TradingView Liquidity map hints at unfinished business below Despite the bullish breakout, liquidation data continued to highlight a different risk.
The Binance JUP/USDT heatmap showed a larger concentration of liquidity below the current price than above it. The most notable clusters remained near $0.20 and across the broader $0.19 to $0.195 region. These zones contained significantly more leveraged positions than the overhead liquidity pockets between $0.22 and $0.23.
Markets often gravitate toward large liquidity pools because liquidations create opportunities for major participants. Therefore, the imbalance suggested that downside levels still attracted attention despite the recent rally.
Source: CoinGlass Although buyers had regained short-term control, the heavier concentration beneath price indicated that JUP could revisit lower levels before attempting another sustained advance toward higher resistance zones.
Final Summary JUP attracted fresh demand as price, volume, and Open Interest increased together. Larger liquidity clusters remained below price, keeping pullback risks in focus.
PANews reported on April 28th that, according to SlowMist's analysis, the root cause of the ZetaChain attack lies in the lack of access control and input validation in the GatewayZEVM contract's `call` function. This allows any user to initiate cross-chain calls through GatewayZEVM and execute arbitrary operations on external chains via relays. Attackers exploited this vulnerability to construct malicious cross-chain events on ZetaChain. After the relays captured these events, they executed malicious calls on the target chain via TSS, thereby stealing funds.
Previously, ZetaChain reported that its GatewayEVM contract had been attacked, but the attack route has been blocked and user funds are safe .
Author: PA一线
This content is for market information only and is not investment advice.
ZetaChain has paused cross-chain transactions on its mainnet after detecting an attack on its GatewayEVM contract.
Summary
ZetaChain paused cross-chain transactions after detecting an attack on its GatewayEVM smart contract. The team said only internal wallets were affected and no user funds were lost. DefiLlama reported $300,000 in losses as ZetaChain prepared a detailed post-mortem. The Layer 1 network said the move was a precaution while the team investigates the incident. GatewayEVM works as a key entry point for cross-chain activity between EVM-compatible networks and applications on ZetaChain. The contract helps route interactions across connected chains.
ZetaChain said the attack affected only internal team wallets. The team added that it had already closed the attack path to stop more funds from being compromised.
“As a precaution, cross-chain transactions are currently paused on ZetaChain,” the team said. “Investigation is still ongoing, and at this time no user funds were impacted by this attack.”
DefiLlama data shows the attack caused about $300,000 in losses. ZetaChain has not confirmed the exact amount and said it plans to publish a full post-mortem.
According to ZetaChain’s official status page, cross-chain transactions remained paused as of 9:00 p.m. ET on Monday. That was about nine hours after the team first identified the attack.
DeFi security concerns continue ZetaChain launched its mainnet in early 2024 and focuses on blockchain interoperability. The project describes itself as a universal blockchain that connects networks such as Bitcoin, Ethereum, and Polygon.
The attack comes after several recent DeFi security incidents. The LayerZero-powered Kelp DAO bridge exploit drained $292 million and created bad debt on Aave. Since that event, DefiLlama data shows at least 10 attacks on DeFi projects.
The interoperability-focused blockchain network ZetaChain has suffered a security exploit, resulting in the draining of funds directly from internal team wallets. Fortunately for the broader crypto community, developers were able to quickly patch the vulnerability before the attacker could compromise user assets.
The root cause According to the security experts at SlowMist, the core vulnerability was located within the call function of ZetaChain's GatewayZEVM contract. Crucially, this specific function lacked proper access control mechanisms and input validation parameters.
Because of these missing security checks, the system was left wide open for exploitation. The flaw allowed any arbitrary user to bypass normal restrictions, invoke cross-chain calls through the GatewayZEVM contract, and execute unauthorized operations on external blockchains.
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The modus operandi The attacker was able to craft a highly specific, malicious call directly on ZetaChain designed to emit a fraudulent cross-chain event.
ZetaChain's relayer, which is designed to listen for and facilitate these cross-chain communications, automatically picked up this event.
The relayer unknowingly executed the malicious call on the destination chain, allowing the attacker to effectively siphon the funds.
Damage contained ZetaChain has assured the community that the damage was strictly isolated to their own holdings.
"There was an attack against the ZetaChain GatewayEVM contract today that impacted the internal ZetaChain team wallets only," the protocol's developers stated. "We've already blocked the attack vector so no more funds can be compromised."
ZetaChain has temporarily paused cross-chain transactions after an attack targeted its GatewayEVM contract, marking the latest security incident involving blockchain interoperability infrastructure.
The layer-1 blockchain said the exploit affected internal team wallets only and that no user funds were compromised. Developers added that the attack vector had been contained, with no further losses expected, while a full post-mortem report will be released following the investigation.
As a precaution, cross-chain transfers across connected networks remain suspended while engineers complete remediation work and review system security.
Attack centered on GatewayEVM contract ZetaChain’s GatewayEVM contract serves as a core interface for cross-chain interactions between external EVM-compatible networks and applications deployed on ZetaChain. The contract enables token transfers and smart contract calls across multiple connected chains, making it a critical component of the protocol’s interoperability architecture.
Because gateway contracts coordinate assets and messaging between networks, they are often considered high-value targets for attackers. Security researchers have repeatedly identified bridges and interoperability layers as among the most vulnerable areas of decentralized finance.
Early third-party analysis suggested the exploit may have involved weaknesses in contract controls or input validation, though ZetaChain has not yet confirmed a formal technical cause.
The protocol has not publicly disclosed the exact financial impact. External estimates have circulated, but no verified figure has been released by the development team.
Cross-chain sector remains under scrutiny The incident adds to a growing list of exploits involving cross-chain systems, a category that has historically accounted for some of the largest losses in the crypto market. Previous attacks on bridge infrastructure have exposed structural vulnerabilities across the sector.
These systems often manage large pools of collateral or depend on complex validator and messaging frameworks, creating multiple attack surfaces. Security failures in such architecture can trigger not only direct losses but also broader confidence concerns across connected ecosystems.
ZetaChain launched its mainnet as a universal blockchain designed to connect networks such as Bitcoin, Ethereum, and other ecosystems through native interoperability. The project has attracted attention for seeking to simplify cross-chain application development and asset movement.
The temporary suspension of cross-chain functionality is likely to disrupt user activity, liquidity routing, and application flows built on the network until services are restored. Protocol teams often halt bridge functions during incidents to prevent secondary losses or exploitation of related components.
For users and investors, the immediate focus will be the forthcoming post-mortem report, which is expected to clarify how the exploit occurred, the scope of affected assets, and what security upgrades will be implemented before reopening transfers.
The event reinforces a broader trend in digital assets: as blockchain ecosystems compete on interoperability, security standards are becoming as important as transaction speed and cost.
While ZetaChain said user funds were unaffected, the incident underscores that even newer architectures remain exposed to smart contract risk. Confidence in cross-chain platforms increasingly depends not only on growth metrics, but also on their ability to respond quickly and transparently when vulnerabilities emerge.
PANews reported on April 29th that ZetaChain released an update on its X platform stating that on April 27th, ZetaChain suffered a premeditated targeted attack . The attackers used Tornado Cash to deposit funds and forged wallet addresses. Cross-chain ZETA transfers were unaffected, user funds were unaffected, and all affected wallets were under ZetaChain control. A mainnet patch has been deployed, and cross-chain transactions will be re-enabled after continuous monitoring. This attack impacted certain arbitrary call functions of GatewayEVM, resulting in a loss of approximately $334,000 across four connected chains.
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US Treasury Secretary Bessent told CNBC in an interview that he hopes the Federal Reserve will remain "open-minded" about the inflation pattern after the reversal of Iran-related energy price hikes. Bessent noted that the U.S. could enter an economic environment marked by high GDP growth without a corresponding rise in traditional inflation. He cited that in the 1990s, Alan Greenspan foresaw that office modernization and the internet could drive non-inflationary growth, and allowed the economy to keep expanding. Bessent believes the U.S. has a strong chance of seeing a similar scenario again. When asked whether the Fed still needs to worry about potential inflation and whether interest rate cuts are possible this year or next, Bessent declined to comment. However, he argued that it is necessary to stay open-minded about the price or inflation impacts from the Iran conflict, and monitor inflation performance after those effects subside. Bessent also said an open mind is needed, as the AI boom could boost productivity and deliver disinflationary effects, helping inflation return to the Fed’s target level. He added that he believes Kevin Warsh will choose the optimal path that meets both the Fed’s inflation and growth mandates. Bessent also noted that Warsh previously took a hawkish stance on inflation.
5 hours ago
US stocks' intraday storage sector sees broad declines, with Western Digital and Seagate Technology both falling over 4%.
According to Bitget data, during U.S. stock trading hours, the storage sector saw broad declines: Western Digital (WDC) fell 4.47%, Seagate Technology (STX) dropped 4.17%, SanDisk (SNDK) declined 2.31%, and Micron Technology (MU) edged down 0.96%. Most optical communication concept stocks rose, with Corning (GLW) leading the gains at 9.75%, followed by Ciena (CIEN) up 3.24%, Coherent (COHR) rising 2.93%, Lumentum (LITE) gaining 2.61%, and Nokia (NOK) advancing 1.82%. Additionally, Marvell Technology (MRVL) fell 2.59% and Applied Optoelectronics (AAOI) declined 1.90%.
5 hours ago
During intraday trading in U.S. stocks, crypto-related concept stocks fell broadly, with MSTR dropping more than 7%.
According to Bitget market data, the three major U.S. stock indexes rose broadly: the Dow Jones Industrial Average gained 0.94%, the S&P 500 increased 0.60%, and the Nasdaq rose 0.63%. Crypto-related stocks fell across the board, with declines as follows: Strategy (MSTR) down 7.33%; Circle (CRCL) down 4.35%; Bitmine (BMNR) down 3.97%; Coinbase (COIN) down 3.73%; Robinhood (HOOD) down 3.70%; Gemini (GEMI) down 3.27%; Bullish (BLSH) down 3.25%; Sharplink (SBET) down 3.19%.
Rubio: US and Iran to continue technical consultations at the end of this month
Multiple foreign media outlets reported on the 24th that US Secretary of State Rubio said technical teams from the United States and Iran will hold further talks in Switzerland by the end of June. (Xinhua News Agency)
5 hours ago
Over the past 24 hours, total crypto market liquidations hit $606 million, with more than 130,000 traders liquidated.
According to Coinglass data, the global cryptocurrency market recorded $606 million in liquidations over the past 24 hours, including $542 million in long-position liquidations and $68.22 million in short-position liquidations. A total of 135,785 traders worldwide were liquidated in the same period, with the largest single liquidation order occurring on Binance’s BTCUSDT trading pair, valued at $12.0111 million.
5 hours ago
Bitcoin falls below $60,000
According to HTX market data, Bitcoin has fallen below $60,000, with a 4.3% drop in the past 24 hours.
5 hours ago
US Treasury Secretary: AI boom may boost productivity and help curb inflation.
US Treasury Secretary Bessent told CNBC in an interview that he hopes the Federal Reserve will remain "open-minded" about the inflation pattern after the reversal of Iran-related energy price hikes. Bessent noted that the U.S. could enter an economic environment marked by high GDP growth without a corresponding rise in traditional inflation. He cited that in the 1990s, Alan Greenspan foresaw that office modernization and the internet could drive non-inflationary growth, and allowed the economy to keep expanding. Bessent believes the U.S. has a strong chance of seeing a similar scenario again. When asked whether the Fed still needs to worry about potential inflation and whether interest rate cuts are possible this year or next, Bessent declined to comment. However, he argued that it is necessary to stay open-minded about the price or inflation impacts from the Iran conflict, and monitor inflation performance after those effects subside. Bessent also said an open mind is needed, as the AI boom could boost productivity and deliver disinflationary effects, helping inflation return to the Fed’s target level. He added that he believes Kevin Warsh will choose the optimal path that meets both the Fed’s inflation and growth mandates. Bessent also noted that Warsh previously took a hawkish stance on inflation.
5 hours ago
US stocks' intraday storage sector sees broad declines, with Western Digital and Seagate Technology both falling over 4%.
According to Bitget data, during U.S. stock trading hours, the storage sector saw broad declines: Western Digital (WDC) fell 4.47%, Seagate Technology (STX) dropped 4.17%, SanDisk (SNDK) declined 2.31%, and Micron Technology (MU) edged down 0.96%. Most optical communication concept stocks rose, with Corning (GLW) leading the gains at 9.75%, followed by Ciena (CIEN) up 3.24%, Coherent (COHR) rising 2.93%, Lumentum (LITE) gaining 2.61%, and Nokia (NOK) advancing 1.82%. Additionally, Marvell Technology (MRVL) fell 2.59% and Applied Optoelectronics (AAOI) declined 1.90%.
5 hours ago
During intraday trading in U.S. stocks, crypto-related concept stocks fell broadly, with MSTR dropping more than 7%.
According to Bitget market data, the three major U.S. stock indexes rose broadly: the Dow Jones Industrial Average gained 0.94%, the S&P 500 increased 0.60%, and the Nasdaq rose 0.63%. Crypto-related stocks fell across the board, with declines as follows: Strategy (MSTR) down 7.33%; Circle (CRCL) down 4.35%; Bitmine (BMNR) down 3.97%; Coinbase (COIN) down 3.73%; Robinhood (HOOD) down 3.70%; Gemini (GEMI) down 3.27%; Bullish (BLSH) down 3.25%; Sharplink (SBET) down 3.19%.
TLDR: ZetaChain’s GatewayEVM arbitrary call flaw allowed attackers to drain $333,868 across four blockchains. All three wallets drained were ZetaChain-controlled; no external user funds were lost in the exploit. The attacker brute-forced a vanity address with 13 matching characters to execute an address poisoning attack. A bug bounty report flagging this vulnerability was previously dismissed as intended protocol behavior by ZetaChain. ZetaChain confirmed a targeted exploit on April 26, 2026, resulting in losses of approximately $333,868. The attack targeted the protocol’s GatewayEVM contract through a deliberate chain of design weaknesses.
No external user funds were lost in the incident. All three affected wallets were under ZetaChain’s control. A patch has since been deployed, and cross-chain transactions remain paused pending full operator upgrades.
How the Attacker Exploited the Gateway Contract The exploit centered on the arbitrary call functionality within ZetaChain’s GatewayEVM contract. An attacker used the isArbitraryCall flag to bypass normal sender verification in cross-chain messages.
This caused ZetaClient software to zero out the sender address, routing calls through _executeArbitraryCall(). That function performed raw external calls with minimal restrictions.
The function’s only protection was a deny-list blocking onCall and onRevert selectors. Critical ERC-20 functions like transferFrom and approve were left unblocked.
The attacker set the destination as an ERC-20 token contract and passed transferFrom as the calldata. Since the gateway held pre-existing allowances from victim wallets, it executed the transfer successfully.
Nine drain transactions occurred across four chains — Ethereum, Base, Arbitrum, and BSC. The largest single drain was $110,291 in USDC on Base.
A comprehensive Dune Analytics scan confirmed no additional victims existed across all five connected EVM chains.
ZetaChain addressed the incident directly on X, stating that “cross-chain ZETA transfers were not affected” and that “no user funds were affected — all impacted wallets were ZetaChain-controlled.”
On Apr 27, ZetaChain experienced a targeted exploit involving deliberate preparation, including Tornado Cash funding and wallet address spoofing.
Cross-chain ZETA transfers were not affected.
No user funds were affected — all impacted wallets were ZetaChain-controlled.
A…
— ZetaChain 🟩 (@ZetaChain) April 29, 2026
The Attacker’s Preparation Was Methodical and Deliberate This was not an opportunistic attack. The hacker funded the primary wallet through Tornado Cash approximately three days before executing the exploit. That deliberate step obscured the origin of funds ahead of the operation.
The attacker also brute-forced a vanity wallet address that closely resembled a victim’s real address. The fake address shared 13 matching hexadecimal characters with the real one — four at the prefix and nine at the suffix.
Generating this required an estimated 4.5 quadrillion trial keys, costing between $300 and $2,500 in GPU compute.
That fake address was used to send dust transactions to the victim, planting a lookalike in their transaction history.
This technique exploits how wallet interfaces truncate addresses for display. A purpose-built drainer contract was also deployed on ZetaChain to orchestrate the cross-chain calls.
Every single drain succeeded with zero destination failures. The post-mortem noted this pattern, suggesting “the hacker had carefully pre-validated each target’s allowance state and token balances before executing.”
ZetaChain’s Response and User Recommendations ZetaChain paused all cross-chain transactions within eight minutes of detecting the attack. The team removed infinite allowance approvals from the ZetaHub deposit flow the same day. New deposits now approve only exact amounts required per transaction.
A zetaclient patch was developed, tested on Testnet, and is now rolling out to mainnet operator nodes. The patch permanently disables the arbitrary call code path that made this exploit possible. Validator node operators do not need to take action — only observer nodes require the upgrade.
All identified exploiter addresses were flagged through the SEAL 911 emergency response network. A report was also filed with law enforcement through IC3.gov. Stolen funds on Ethereum were swapped to approximately 139 ETH and moved to a consolidation wallet.
ZetaChain is also reviewing its bug bounty triage process. The post-mortem acknowledged that the vulnerability had been flagged earlier, noting that “initial reports were dismissed as the arbitrary call behavior was considered by-design.”
The protocol added that the incident has since prompted a review of triage procedures for chained attack vectors. Users with prior gateway interactions are advised to revoke ERC-20 allowances using tools like Revoke.cash.
The vulnerability that led to ZetaChain’s recent exploit had been flagged through its bug bounty program before the attack, but was dismissed as intended behavior.
In a post-mortem published Wednesday, the team said the incident has prompted a review of how it handles bug bounty submissions, particularly reports involving chained attack vectors that may appear harmless in isolation but are dangerous in combination.
“This bug was reported and they simply ignored it,” one user wrote on X. “That's how bug bounty programs work with these protocols currently; they incentivize losses for the protocol, the TVL, and the user's balance instead of paying the researcher for discovering and fixing the bug,” they added.
ZetaChain lost approximately $334,000 to a premeditated exploit on Sunday that targeted its cross-chain gateway contract. The exploit drained funds across nine transactions on four chains, including Ethereum, Arbitrum, Base and BSC, all from ZetaChain-controlled wallets. No user funds were affected.
Attacker exploits small design flawsZetaChain said in its post-mortem that the attacker exploited three design flaws that, individually, might have seemed minor, but together opened the door to a full drain. First, the gateway allowed anyone to send arbitrary cross-chain instructions with no restrictions. Second, on the receiving end, it would execute almost any command on any contract, with a blocklist so narrow it missed basic token transfer functions.
Third, wallets that had previously used the gateway had left unlimited spending permissions in place that were never cleaned up. By combining all three, the attacker simply told the gateway to transfer tokens from victim wallets to their own, and the gateway complied.
Source: ZetaChain
“This was not an opportunistic attack,” ZetaChain said in its post-mortem. The attacker funded their wallet through Tornado Cash three days before the exploit, deployed a purpose-built drainer contract on ZetaChain and ran an address poisoning campaign before seeding it into their transaction history via dust transfers.
ZetaChain added that a patch permanently disabling the arbitrary call functionality is being rolled out to mainnet nodes. The platform also removed unlimited token approvals from its deposit flow, replacing them with exact-amount approvals going forward.
AI DeFi exploit success rate increasesA new study by a16z tested whether an off-the-shelf AI agent could go beyond identifying DeFi vulnerabilities and actually produce working exploits. Using OpenAI's Codex against a dataset of 20 real Ethereum price manipulation incidents, researchers ran the agent in a sandboxed environment with no access to future transaction data and no guidance on how the attacks worked. The agent succeeded in just 10% of cases.
However, when researchers fed the agent structured knowledge about common attack patterns and exploit workflows, the success rate jumped to 70%.
Magazine: How to fix suspected insider trading on Polymarket and Kalshi
Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.
Rubio: US and Iran to continue technical consultations at the end of this month
Multiple foreign media outlets reported on the 24th that US Secretary of State Rubio said technical teams from the United States and Iran will hold further talks in Switzerland by the end of June. (Xinhua News Agency)
5 hours ago
Over the past 24 hours, total crypto market liquidations hit $606 million, with more than 130,000 traders liquidated.
According to Coinglass data, the global cryptocurrency market recorded $606 million in liquidations over the past 24 hours, including $542 million in long-position liquidations and $68.22 million in short-position liquidations. A total of 135,785 traders worldwide were liquidated in the same period, with the largest single liquidation order occurring on Binance’s BTCUSDT trading pair, valued at $12.0111 million.
5 hours ago
Bitcoin falls below $60,000
According to HTX market data, Bitcoin has fallen below $60,000, with a 4.3% drop in the past 24 hours.
5 hours ago
US Treasury Secretary: AI boom may boost productivity and help curb inflation.
US Treasury Secretary Bessent told CNBC in an interview that he hopes the Federal Reserve will remain "open-minded" about the inflation pattern after the reversal of Iran-related energy price hikes. Bessent noted that the U.S. could enter an economic environment marked by high GDP growth without a corresponding rise in traditional inflation. He cited that in the 1990s, Alan Greenspan foresaw that office modernization and the internet could drive non-inflationary growth, and allowed the economy to keep expanding. Bessent believes the U.S. has a strong chance of seeing a similar scenario again. When asked whether the Fed still needs to worry about potential inflation and whether interest rate cuts are possible this year or next, Bessent declined to comment. However, he argued that it is necessary to stay open-minded about the price or inflation impacts from the Iran conflict, and monitor inflation performance after those effects subside. Bessent also said an open mind is needed, as the AI boom could boost productivity and deliver disinflationary effects, helping inflation return to the Fed’s target level. He added that he believes Kevin Warsh will choose the optimal path that meets both the Fed’s inflation and growth mandates. Bessent also noted that Warsh previously took a hawkish stance on inflation.
5 hours ago
US stocks' intraday storage sector sees broad declines, with Western Digital and Seagate Technology both falling over 4%.
According to Bitget data, during U.S. stock trading hours, the storage sector saw broad declines: Western Digital (WDC) fell 4.47%, Seagate Technology (STX) dropped 4.17%, SanDisk (SNDK) declined 2.31%, and Micron Technology (MU) edged down 0.96%. Most optical communication concept stocks rose, with Corning (GLW) leading the gains at 9.75%, followed by Ciena (CIEN) up 3.24%, Coherent (COHR) rising 2.93%, Lumentum (LITE) gaining 2.61%, and Nokia (NOK) advancing 1.82%. Additionally, Marvell Technology (MRVL) fell 2.59% and Applied Optoelectronics (AAOI) declined 1.90%.
5 hours ago
During intraday trading in U.S. stocks, crypto-related concept stocks fell broadly, with MSTR dropping more than 7%.
According to Bitget market data, the three major U.S. stock indexes rose broadly: the Dow Jones Industrial Average gained 0.94%, the S&P 500 increased 0.60%, and the Nasdaq rose 0.63%. Crypto-related stocks fell across the board, with declines as follows: Strategy (MSTR) down 7.33%; Circle (CRCL) down 4.35%; Bitmine (BMNR) down 3.97%; Coinbase (COIN) down 3.73%; Robinhood (HOOD) down 3.70%; Gemini (GEMI) down 3.27%; Bullish (BLSH) down 3.25%; Sharplink (SBET) down 3.19%.
ZetaChain has acknowledged that a vulnerability behind its recent exploit had already been reported through its bug bounty program, but was treated as expected behavior.
According to ZetaChain’s post-mortem published Wednesday, the incident has triggered an internal review of how the protocol evaluates bug bounty submissions, especially those involving multi-step attack paths that may appear harmless when viewed separately.
The disclosure follows an attack on Sunday that targeted the project’s cross-chain gateway contract, draining about $334,000 across nine transactions on Ethereum, Arbitrum, Base, and BSC, all from wallets controlled by the team.
ZetaChain stated that no user funds were impacted, a point it had also emphasized a day earlier when it paused cross-chain transactions on its mainnet to contain the breach.
DefiLlama data had earlier estimated the losses at roughly $300,000, while ZetaChain said at the time that it would release a full breakdown after completing its investigation.
Flaws combined to enable full drain ZetaChain said the attacker chained together three separate design weaknesses that, on their own, did not appear critical but together enabled the exploit. The gateway contract allowed unrestricted cross-chain instructions to be sent, while the receiving side executed nearly any command on any contract, with a limited blocklist that failed to cover basic token transfer functions.
Existing wallets that had interacted with the gateway retained unlimited token approvals, which were not revoked. By combining these conditions, the attacker instructed the gateway to move tokens from those wallets, and the system executed the transfers without resistance.
“This was not an opportunistic attack,” ZetaChain said, outlining how the attacker prepared in advance by funding a wallet through Tornado Cash three days before the exploit, deploying a custom drainer contract on ZetaChain, and running an address poisoning campaign before initiating the transactions.
Bug report dismissed before exploit In its post-mortem, ZetaChain confirmed that the core issue had been raised earlier through its bug bounty program but was not treated as a threat at the time. The team said this has prompted a reassessment of how it handles reports that describe complex attack combinations rather than isolated bugs.
“This bug was reported and they simply ignored it,” one user wrote on X, adding that current bug bounty structures often fail to reward researchers for identifying vulnerabilities before they are exploited.
Following the incident, ZetaChain said it has disabled the gateway’s arbitrary call functionality through a patch being rolled out to mainnet nodes. The platform has also removed unlimited token approvals from its deposit process, replacing them with exact-amount approvals to reduce risk from similar attack patterns.
The vulnerability that led to ZetaChain’s recent exploit had been flagged through its bug bounty program before the attack, but was dismissed as intended behavior.
In a post-mortem published Wednesday, the team said the incident has prompted a review of how it handles bug bounty submissions, particularly reports involving chained attack vectors that may appear harmless in isolation but are dangerous in combination.
“This bug was reported and they simply ignored it,” one user wrote on X. “That's how bug bounty programs work with these protocols currently; they incentivize losses for the protocol, the TVL, and the user's balance instead of paying the researcher for discovering and fixing the bug,” they added.
ZetaChain lost approximately $334,000 to a premeditated exploit on Sunday that targeted its cross-chain gateway contract. The exploit drained funds across nine transactions on four chains, including Ethereum, Arbitrum, Base and BSC, all from ZetaChain-controlled wallets. No user funds were affected.
Attacker exploits small design flawsZetaChain said in its post-mortem that the attacker exploited three design flaws that, individually, might have seemed minor, but together opened the door to a full drain. First, the gateway allowed anyone to send arbitrary cross-chain instructions with no restrictions. Second, on the receiving end, it would execute almost any command on any contract, with a blocklist so narrow it missed basic token transfer functions.
Third, wallets that had previously used the gateway had left unlimited spending permissions in place that were never cleaned up. By combining all three, the attacker simply told the gateway to transfer tokens from victim wallets to their own, and the gateway complied.
Source: ZetaChain
“This was not an opportunistic attack,” ZetaChain said in its post-mortem. The attacker funded their wallet through Tornado Cash three days before the exploit, deployed a purpose-built drainer contract on ZetaChain and ran an address poisoning campaign before seeding it into their transaction history via dust transfers.
ZetaChain added that a patch permanently disabling the arbitrary call functionality is being rolled out to mainnet nodes. The platform also removed unlimited token approvals from its deposit flow, replacing them with exact-amount approvals going forward.
AI DeFi exploit success rate increasesA new study by a16z tested whether an off-the-shelf AI agent could go beyond identifying DeFi vulnerabilities and actually produce working exploits. Using OpenAI's Codex against a dataset of 20 real Ethereum price manipulation incidents, researchers ran the agent in a sandboxed environment with no access to future transaction data and no guidance on how the attacks worked. The agent succeeded in just 10% of cases.
However, when researchers fed the agent structured knowledge about common attack patterns and exploit workflows, the success rate jumped to 70%.
Magazine: How to fix suspected insider trading on Polymarket and Kalshi
Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.
Key TakeawaysCross-Chain Gateway Weakness Exploited Across Multiple NetworksPersistent Token Allowances Facilitated Fund DrainageEmergency Response and Industry-Wide Security Concerns Cross-chain protocol loses $334K through gateway contract vulnerability
Attack exploited unlimited token approvals and arbitrary function calls
Security breach affected internal team wallets across four blockchain networks
Platform implements emergency patch and pauses cross-chain operations
No user funds compromised during the security incident
A security breach on ZetaChain resulted in the theft of approximately $334,000 through vulnerabilities in its cross-chain gateway infrastructure. The attack specifically targeted internal team wallets using a sophisticated multi-chain approach. Platform operators responded by immediately suspending services and implementing security patches.
Cross-Chain Gateway Weakness Exploited Across Multiple Networks According to ZetaChain’s official statement, the security breach centered on the GatewayEVM contract, which manages cross-chain message passing and token transfers. Malicious actors exploited design flaws to execute unauthorized withdrawals. The theft spanned four blockchain networks: Ethereum, Arbitrum, Base, and BSC.
The platform disclosed that attackers leveraged multiple security gaps within the messaging infrastructure. The gateway system permitted unrestricted function calls between connected blockchains. This architectural weakness allowed remote activation of critical contract functions without proper safeguards.
Technical analysis revealed that the recipient contract processed diverse command types, including direct token movement operations. Insufficient validation mechanisms failed to prevent malicious instructions. Attackers capitalized on these loose restrictions to siphon funds from compromised addresses.
Persistent Token Allowances Facilitated Fund Drainage The exploit mechanism relied heavily on pre-existing unlimited token approvals granted to the gateway smart contract. These permissions had been established during earlier deposit transactions and never revoked. Attackers utilized transferFrom functions to extract ERC-20 tokens from wallets with active allowances.
Platform representatives emphasized that the security incident exclusively affected three wallets under team control. End-user deposits and holdings remained completely secure throughout the attack. The breach highlighted significant risks associated with permanent token permission grants.
Interestingly, security researchers had previously flagged this vulnerability through the platform’s bug bounty initiative. However, the submission was dismissed as intended functionality rather than a critical flaw. This classification error became a contributing factor when combined with other system weaknesses during the actual exploit.
Emergency Response and Industry-Wide Security Concerns Upon detecting the unauthorized transactions, ZetaChain immediately halted all cross-chain functionality. Engineers rapidly developed and deployed remediation code eliminating the arbitrary call feature. Services remain suspended pending comprehensive security audits and system enhancements.
The updated architecture replaces blanket token approvals with transaction-specific permission models. This modification significantly limits potential attack vectors in future operations. Platform administrators urged all users to revoke outstanding allowances associated with gateway infrastructure.
Investigation revealed sophisticated attack preparation by the perpetrators. Initial funding came through Tornado Cash privacy protocol, while address poisoning tactics created confusion. Stolen assets were immediately converted to ETH, complicating tracking efforts.
This incident adds to growing concerns about smart contract security across decentralized finance ecosystems. Industry data indicates increasing frequency of exploits targeting architectural vulnerabilities in recent months. ZetaChain announced comprehensive reviews of both bug bounty procedures and overall security protocols.
Oliver Dale
Editor-in-Chief of Blockonomi and founder of Kooc Media, A UK-Based Online Media Company. Believer in Open-Source Software, Blockchain Technology & a Free and Fair Internet for all. His writing has been quoted by Nasdaq, Dow Jones, Investopedia, The New Yorker, Forbes, Techcrunch & More. Contact [email protected]
The ZetaChain’s $334K exploit was preventable if the team had taken earlier bug reports seriously.
In the post-mortem report, the team admitted that the gateway vulnerability leveraged by the attacker had been disclosed in a bug bounty program, but they dismissed it.
Prior to the exploit, the vulnerability class had been reported through our bug bounty program. Initial reports were dismissed as the arbitrary call behavior was considered by design.
Going forward, the project added, it will review all bug bounty submissions to ensure “reports involving chained attack vectors receive appropriate severity assessment.”
That said, the project clarified that protocol-controlled wallets were the ones drained of $334K, adding that no user funds were lost.
April crypto hack losses top $600M In April, the losses from the rising crypto hacks hit $629 million, according to data tracked by DeFiLlama. This was the highest level of monthly losses so far in 2026.
In fact, even when zoomed out on a year-on-year (YoY) basis, it was still the largest loss.
Source: DeFiLlama This week alone, Aftermath Perps lost $1.14 million while Sweat Foundation suffered a $3.5M breach. ZetaChain, Judao, Scallop Lend, Syndicate, and Quant also suffered exploits ranging between $150K to $413K each.
Last week, Volo Vault, Purrlend, and Giddy also added to the growing list of victims. Perhaps the most notable victim in April is the Kelp DAO’s $293 million exploit, which triggered massive outflows across the DeFi ecosystem.
Yet, some of these exploits are preventable, especially with strong bug bounty programs. In the ZetaChain case, for example, there was a prior bug submission, which was ignored.
At the same time, the attacker did some tests before the exploit, which could be flagged by strong threat monitoring.
Now the industry will contend with another powerful threat actor: AI-powered models. Cybersecurity models with offensive capabilities like Anthropic’s Claude-powered Mythos and recently announced OpenAI’s GPT-5.5-Cyber are yet to be made public.
The reported offensive capability of these models should be a warning sign for the entire industry to take security measures more seriously or forget about mass adoption.
Final Summary ZetaChain admitted its $334K exploit was from a bug that was previously reported but wasn’t acted on. Losses linked to DeFi hacks in April have now crossed $600M, underscoring the need for proactive threat detection.
PANews reported on June 2nd that ZetaChain has fully transitioned from cross-chain infrastructure to AI, positioning itself as a "Private Memory Layer" for AI. The official statement indicated that after four years of building cross-chain infrastructure, the team's exploration of whether interoperability can extend from chains and assets to AI intelligence itself has been validated.
ZetaChain's AI product, Anuma, surpassed 60,000 users in its first month. It allows users to share the same set of context, preferences, and memories across multiple mainstream models, including ChatGPT, Gemini, Claude, DeepSeek, and Kimi, eliminating the need to repeatedly build background information when switching models. ZetaChain states that Anuma's core is "user-owned privacy AI." Users can log in directly through their wallets without needing personal information such as email or name; all memory content is encrypted on the user's device, rather than stored on the platform's servers.
In addition, ZetaChain announced a new incentive mechanism around ZETA. Users who lock ZETA can earn Anuma Tokens daily and redeem AI credits to use various AI models; users who lock 80,000 ZETA will automatically unlock Anuma Pro, which includes higher amounts of AI credits, all models, and full privacy features.
ZetaChain has previously focused on cross-chain interoperability infrastructure, and this time it has further proposed the concept of "AI Consumer Layer", which will attempt to build a new AI user layer around memory, identity, permissions, payment and agent collaboration.
Here’s a problem most people don’t think about until it’s annoying: every time you switch between AI tools, you start from scratch. Your ChatGPT conversation history means nothing to Claude. Your Gemini preferences don’t carry over anywhere.
ZetaChain thinks it has a fix. The blockchain network has launched Anuma, which it calls a “private memory layer for AI,” designed to let users store encrypted, portable context that works across multiple AI platforms. The product hit 100,000 users within 38 days of going public.
What Anuma actually does Think of Anuma as a personal vault for your AI interactions. Instead of each AI model maintaining its own siloed understanding of who you are and what you need, Anuma creates a unified memory layer that travels with you. Your preferences, conversation history, and contextual data get encrypted on your device and stored in a way that any compatible AI application can access, but only with your permission.
The encryption runs on AES-GCM. Your data gets scrambled before it ever leaves your device, and only you hold the keys to unscramble it. No centralized server, no AI company, and no blockchain validator can read your memory vault without your explicit consent.
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The platform also includes a feature called Memory Import, which lets users bring existing context from other AI tools into the Anuma ecosystem. Programmable permissions give users granular control over which applications can access which parts of their stored memory.
ZetaChain’s ZETA token handles access fees, usage settlements, and creator rewards within the ecosystem.
From cross-chain bridges to AI infrastructure The network originally built its reputation on cross-chain interoperability, connecting different blockchains so assets and data could move between them. That infrastructure attracted a historical user base of 12 million with over 240 million transactions processed.
ZetaChain 2.0 and the Anuma beta launched on January 27, 2026. By June 1, 2026, ZetaChain made the transition official, announcing it would focus exclusively on AI memory infrastructure.
Anuma reached 60,000 users in its first month after launch, then crossed the 100,000 threshold just 38 days after going public.
Why this matters for the AI subscription economy Only about 9% of users currently pay for multiple AI subscriptions. Each subscription exists in isolation, which means users are essentially paying multiple times to teach multiple AIs the same things about themselves.
Right now, when you use ChatGPT, OpenAI stores your conversations. When you use Claude, Anthropic does the same. Your AI interactions are scattered across multiple corporate servers, each governed by different privacy policies. Anuma’s client-side encryption model keeps the user in control of the data layer.
Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.
Grayscale's head of research, Zach Pandl, commented on the Anthropic ban, drawing attention to Bittensor.
16.06.2026 - 15:21
Update: 16.06.2026 - 15:21
The Anthropic Claude model, which was taken offline at the request of the US government for its Mythos 5 and Fable 5 versions, has reignited debates in the artificial intelligence world.
While this ban has also attracted market attention, Grayscale research head Zach Pandl evaluated the developments in the latest report.
As is known, on June 12, the US government announced that it was blocking access to Anthropic’s Mythos-level models for foreign nationals on grounds of national security.
Grayscale research director Zach Pandl stated that the US ban on the Anthropic AI model has strengthened decentralized projects.
Accordingly, Pandl argued that the US government’s decision to block Anthropic’s latest AI model has increased demand for decentralized AI projects like Bittensor (TAO).
At this point, Pandl noted that in the US and China, the two leading countries in the field of artificial intelligence, very few companies hold control over the AI sector.
In response, Pandl stated that Bittensor aims to provide permissionless AI access through an open, global, and decentralized network, and that Bittensor is the Bitcoin of the AI sector.
“Bittensor is the Bitcoin of the AI sector… What Bitcoin did for money, Bittensor is doing for AI.”
Recently, access to artificial intelligence has also become very important.
Pandl also noted that the price of TAO increased by 30% in 12 hours following the announcement of the restrictions on the Mythos model, concluding that demand for decentralized alternatives is increasing as centralized providers restrict access to AI.
*This is not investment advice.
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"I think that it still looks good and I have a bag of it that I'm trading," one popular analyst stated.
Many leading altcoins are well in the green today (June 16), but Bittensor (TAO) has failed to follow the overall upswing, posting a substantial daily decline.
Even so, several analysts think it could be gearing up for a rebound that might carry it back to multi-month highs.
Big Pump Incoming? TAO currently trades at around $268, a 7% plunge over the past 24 hours. It is important to note that its decline occured despite Grayscale’s positive remarks. Just hours ago, the digital asset management company claimed that centralized companies like Anthropic are more vulnerable to government intervention and decentralized projects like Bittensor “offer an alternative.”
“Bittensor provides open-source, permissionless access to AI through a decentralized global network,” the firm posted on X.
X user Altcoin Sherpa noted that TAO has lagged behind numerous well-known cryptocurrencies, suggesting the weakness may stem from traders pre-positioning and many already being fully allocated. At the same time, the analyst said TAO still “looks good” and that they remain invested in it.
“This current area is a bit of a resistance spot, 200d EMA + S/R level, but if it can break here, I think the low $300s is my next area up,” the X user added.
Ali Martinez also gave his two cents. He argued that TAO is approaching the top of its descending channel and predicted that a decisive break could open the door to a jump to $350 and then $420.
The asset’s recent exchange netflow raises the possibility of a short-term revival. Over the past few weeks, outflows have surpassed inflows, suggesting that many investors have abandoned centralized trading venues in favor of self-custody solutions, thereby reducing immediate selling pressure.
TAO Exchange Netflow, Source: CoinGlass How About $500? Another analyst who seems very fond of TAO is Michael van de Poppe. A few days back, he described the token’s chart as “phenomenal” and envisioned a potential price explosion to $500.
You may also like: Analyst Identifies 3 Altcoin Sectors Positioned to Survive Market Shakeout Analyst Predicts ‘Massive Bull Rally’ if US-Iran Peace Deal Is Signed Analyst: BTC’s 50% Drop Could Be Setting Up a 2017-Style Altcoin Rally Shortly after, he opined that the strongest altcoins from the previous months, including TAO, could extend their solid performance in the near term, provided Bitcoin (BTC) has already bottomed.
Recall that at the start of June, the primary cryptocurrency briefly collapsed to around $59,000 – its lowest point in 19 months. And while it has recovered well above $65,000 following the peace deal between Iran and the US, some analysts believe the worst for this cycle has yet to come.
SponsoredUpdated Jun 17, 2026, 1:11 p.m. Published Jun 17, 2026, 12:54 p.m.
2 min read
Summary
A new Bittensor proposal called Root Reborn would overhaul how yield is paid to TAO stakers by turning validators into active allocators of capital across AI subnets.Instead of automatically selling subnet tokens for TAO each block, validators would reinvest rewards into selected subnets, creating compounding baskets that stakers can still cash out to TAO at any time.The code, currently submitted for a test network on GitHub, has already undergone an automated review that flagged two serious issues the author says are now fixed, with further cleanup planned before any mainnet release.A new proposal for Bittensor, the decentralized AI network behind the TAO token, would change how the network pays its validators and turn them into something closer to fund managers.
Bittensor is built from dozens of subnets, each a marketplace for a different AI task, with its own token. TAO is the network's main token. Users earn yield by staking TAO to validators on the root, the layer considered the network's safest place to park capital.
The new proposal changes how yield is paid.
Right now, the system funds it by selling the rewards owed to root stakers and automatically swapping out subnet tokens for TAO. That means the network is constantly selling the very tokens its subnets are built on, which drives down their prices.
The proposal, called Root Reborn and submitted by developer 'unconst,' flips that.
Instead of selling everything, each validator would choose a set of subnets to support, much like picking holdings for a fund. The yield that would have been sold is reinvested into the chosen subnets, held as a basket that compounds over time, and staked back to the validator. Stakers still get their yield and can cash out to TAO whenever they want.
Such a mechanism stops the constant selling pressure and turns it into net buying that supports subnet prices.
Validators turn from passive yield pipes into active curators, since subnets they back attract fresh capital, while those they judge to be bad actors get starved of it.
The proposal is a code submission on Bittensor's GitHub as of Wednesday, aimed at a test network rather than the main one.
Meanwhile, an early automated review flagged two serious issues, including an upgrade step that could choke on large amounts of data and a payout path that could shortchange stakers when a subnet shuts down. The author said in a GitHub response that those issues are fixed, with more cleanup listed before any mainnet release.
Bittensor's token, TAO, has fallen 28% over the last 12 months, while bitcoin has fallen 38% over the same period. The token's staking yield currently sits around 17% if users hold TAO for a year.
17 June 2026 | 19:34 A new proposal shared on Bittensor's GitHub could reshape how the network's root layer handles capital, turning validators from passive reward routers into active investors deciding which AI subnets deserve funding.
Key Takeaways A GitHub proposal would turn Bittensor validators into active capital allocators. It replaces automatic subnet-token selling with a reinvestment model. The change could ease structural sell pressure on TAO. TAO trades near $253 after a sharp June recovery. What Bittensor Is For readers new to it, Bittensor is a decentralized network that tries to turn machine intelligence into an open market rather than a product owned by a handful of tech giants. Founded in 2019 by Jacob Steeves and Ala Shaabana through the Opentensor Foundation, it runs on the Subtensor blockchain and rewards participants in its native token, TAO, for contributing useful AI work.
This activity is organized through specialized “subnet” networks, independent artificial intelligence ecosystems within Bittensor that compete with one another to create valuable models, data, and services. Each subnet focuses on a specific task or area of artificial intelligence, and validators assess the quality of the results and direct rewards to the projects that create the most value for the network.
The 2025 dTAO upgrade pushed this further, letting TAO holders direct rewards toward the subnets they believe create real value.
The Price: A Violent Flush, Then a Sharp Recovery The token’s recent chart tells a story of capitulation and rebound. TAO trades near $253, having reclaimed its 200-day moving average at roughly $248 after early-June sell-off that dragged it from around $260 on 31st of May all the way down to the $185 zone in a matter of days. That low established a clear support floor, and the bounce off it was sharp enough to pull price back above the 200-day line, a tentative signal that momentum may be shifting, led by broader crypto market gains, started by Iran-US peace agreement.
The structure is not clean yet. Price is still pinned below the falling 50-day average near $263 while trading at $253 at the time of writing on 17th of June, which now acts as overhead resistance, leaving TAO consolidating in a band between roughly $248 support and $260 to $265 resistance. With the RSI sitting at a neutral 53, the chart reflects a market that has stopped falling but has not yet proven it can break higher.
The Proposal: Validators as Capital Allocators Against that backdrop comes a proposal, shared on GitHub and informally dubbed “Root Reborn,” that would change how the root layer works at a structural level. Currently, the returns for participants in root staking, the primary staking layer in the Bittensor ecosystem—are generated through the sale of subnet tokens and their conversion into TAO. It is precisely this mechanism that creates constant selling pressure on the subnet networks.
The proposal could reverse the flow. Instead of automatically selling subnet rewards, validators would decide which subnets deserve capital, reinvesting rewards into the ones they back rather than dumping them. The result would be a compounding portfolio of subnet positions that can later be redeemed for TAO, transforming the validator’s role from passive yield distributor into active investor.
Why It Matters The shift is bigger than a tokenomics tweak. It would change Bittensor from a system that extracts value from subnets into one that recycles capital back into them, and the second-order effects are where it gets interesting:
Less sell pressure: subnet tokens would no longer face constant, automatic selling to fund rewards. Active investors: validators would behave like fund managers rather than reward routers. Capital follows performance: strong subnets would attract more funding, while weak ones would receive less. Skill-based yield: root staking returns would become tied to how well validators allocate capital. Taken together, that starts to look less like a reward-distribution system and more like a decentralized asset-management network, one where capital flows, rather than governance committees, decide which AI subnets grow and which fade.
If it works as intended, the proposal could create a self-reinforcing loop: better subnets attract more validator capital, that capital supports subnet-token values, higher values generate larger rewards, larger rewards lift root staking yields, and higher yields draw more capital into TAO. In that framing, the change converts root staking from a value-extraction mechanism into a capital-allocation engine that strengthens the whole ecosystem rather than slowly bleeding it.
The Caveat Worth Keeping in Mind For now, this is a proposal, not a shipped feature, and that distinction matters. A change this fundamental to how rewards and sell pressure work would need to clear technical review and community alignment before it goes live, and the actual impact would depend entirely on whether validators allocate capital wisely. Concentrating allocation power in a small set of validators, a known feature of Bittensor’s current structure, could just as easily channel capital poorly as well. The thesis is genuinely compelling, but it rests on execution that has not happened yet.
This article is for informational purposes only and does not constitute financial advice. Consult a professional before making investment decisions.
Author
Kosta has reported on cryptocurrency markets and blockchain infrastructure since 2020, bringing over six years of hands-on experience in the crypto industry built through daily tracking of markets, trends, and emerging blockchain developments. Specializing in Bitcoin on-chain analysis, institutional ETF flows, and digital asset price action, his work at Coindoo has been cited by other news agencies and consistently covers market developments with a focus on data-driven reporting across Bitcoin, Ethereum, Solana, and XRP. Over the years, Kosta has contributed to multiple crypto media outlets in different regions, authoring over 6,000 articles across the sector. His reporting spans cryptocurrency markets and the broader fintech industry, tracking not only price action but also the technological and regulatory forces shaping the ecosystem. To support his analysis, Kosta actively leverages on-chain data and metrics from leading platforms such as Santiment, Glassnode, and CryptoQuant, enabling deeper, evidence-based market insights. He believes in the power of transparency and the data that underpins the blockchain ecosystem. His academic background in Marketing Management from Denmark further complements his analytical approach, adding a strong understanding of communication strategy and content positioning to his work.
Manako Labs has launched a vision AI agent platform that converts standard enterprise cameras into real-time operational intelligence systems, powered by Bittensor’s decentralized Score Subnet 44 (SN44).
How Manako’s vision AI actually works Manako’s platform uses a no-code interface that lets users describe what they want to monitor in plain English. You type “alert me when someone enters the restricted zone” or “detect spills on the warehouse floor,” and the system generates a lightweight vision model to handle it.
The models are roughly 19MB in size, small enough to run on a standard CPU. Users can test these models with uploaded footage before connecting them to live camera feeds. Manako reportedly doesn’t access any of the video feeds itself — processing happens at the edge, on the enterprise’s own infrastructure.
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When the system detects something noteworthy, it sends Slack notifications along with timestamped video clips.
According to Manako, enterprises currently generate actionable insights from less than 2% of captured camera data.
The Bittensor connection Manako’s platform runs on Bittensor’s Score Subnet 44, a decentralized computer vision network within the broader Bittensor ecosystem. SN44 focuses specifically on computer vision scoring, where miners compete to develop and deliver the most effective models for tasks such as object detection and event recognition.
Strategic milestones In April 2026, Manako secured a strategic partnership with PwC France & Maghreb for enterprise advisory integration.
The company won the overall Start in Block 2026 award at Paris Blockchain Week, selected from a pool of over 1,000 applicants.
On June 2, 2026, Manako received a $1 million investment from TaoWeave, earmarked specifically for expansion into the North American market.
Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.
Bittensor (TAO) price edges below $250 at press time on Thursday, marking its fourth straight day of losses. The AI token is losing retail demand as TAO futures Open Interest dips over 8% in the last 24 hours. The technical outlook for TAO highlights the 20-day Simple Moving Average (SMA) at $231 as the immediate support guarding the downside toward $200.
Retail demand wanes in TAOBittensor, one of the leading AI tokens in the crypto market, is losing its retail interest as the broader market sentiment falters. CoinGlass data show TAO futures Open Interest (OI) at $260.24 million, down over 8% in the last 24 hours, indicating a sharp decline in the notional value of active contracts.
Strengthening risk-off sentiment, total liquidations over the same period reached $1.66 million, led by a $1.42 million worth of bullish positional wipeout. The 14% drop in volume to $624.85 million and the funding rate down to 0.0018% reaffirms reduced trading activity and willingness to buy long positions.
TAO derivatives data. Source: CoinGlassBittensor closes in the last line of defense before $200Bittensor trades below the $250 psychological support on Thursday, extending its losses below the 50-day and 200-day Exponential Moving Averages (EMAs) at roughly $251 and $265. The AI token has been in a declining trend since the upper Bollinger Band capped its recovery last week near $290.
From a technical perspective, TAO remains above the 20-period SMA, around $231, which serves as the Bollinger Band's midline. A decisive close below $231 could expose downside risk to the 23.6% Fibonacci retracement level at $196, measured over the $538 to $143 downswing, and then to the lower Bollinger Band at $181.
That said, the Relative Strength Index (RSI) is hovering near a neutral 50, while the Moving Average Convergence Divergence (MACD) histogram contracts in the positive territory, which implies that last week's recovery was a corrective rebound rather than a sustained trend reversal.
TAO/USDT daily price chart.On the topside, the 50% retracement level at $278 serves as crucial resistance, close to the upper Bollinger Band at $281. Beyond this, a clear breakout could open the path toward the 78.6% Fibonacci retracement level at $406.
(The technical analysis of this story was written with the help of an AI tool.)
Yuma, one of Bittensor’s largest contributors and the network’s third-largest validator, has published a detailed critique of the proposed “Root Reborn” upgrade, arguing that the design introduces governance, regulatory, and market structure risks that outweigh its potential benefits.
Summary
Yuma has opposed Bittensor’s proposed Root Reborn upgrade, warning that it could introduce conflicts of interest, regulatory concerns, and new risks for stakers. The proposal would allow validators to allocate root staking rewards across subnet tokens instead of automatically converting rewards into TAO. Yuma said subnets backed by validator allocations could benefit from additional demand, but called for more testing, risk analysis, and a formal upgrade roadmap before deployment. The proposal, currently under review and not yet active on mainnet, would overhaul how root staking rewards are handled. Under the existing system, root dividends are effectively paid by automatically converting subnet alpha emissions back into TAO. The new design would stop those automatic sales.
🧠 Bittensor $TAO upgrade watch: Root Reborn
A new Subtensor PR proposes one of the larger changes to Bittensor’s root validation structure so far.
Today, root dividends are effectively paid by auto-swapping subnet alpha back into TAO. This creates constant sell pressure on… pic.twitter.com/UNLFsKzcsl
— tao.bot (τ, τ) (@taodotbot) June 18, 2026 Instead, validators would set allocation weights across subnets. Root emissions would then be deployed into validator-selected baskets of subnet tokens, with stakers receiving redeemable claims on those positions rather than direct TAO rewards.
The proposal states that the change would reduce automatic sell pressure on subnet assets and make validator allocation decisions a more important part of the network economy. It would also introduce new tools to track validator basket net asset value, subnet allocations, staker liabilities, and network-wide basket performance.
Yuma said the proposal changes the role of validators from infrastructure operators into active allocators of capital.
“In its current form, the Root Reborn proposal carries substantial unmitigated risk that outweighs its benefits,” the validator group wrote.
The following analysis is a byproduct of lack of process within the ecosystem that leaves business builders limited notice or ability to properly plan, assess risk, and execute.
We are responding rapidly to the code we’ve seen thus far, in the forum where we see it being… https://t.co/cZ3DQD2gkU
— Yuma (@YumaGroup) June 18, 2026 Yuma warns of conflicts and regulatory exposure Yuma argued that validators would gain significant influence over capital flows inside the Bittensor ecosystem, creating incentives that may not always align with the interests of delegators.
The group said validators could direct allocations toward subnets in which they already hold positions or accept external incentives from subnet operators seeking additional capital. Yuma compared the structure to the lessons of the LIBOR scandal, where a small group of participants held influence over key financial benchmarks.
“Moral hazard is acute,” Yuma wrote, adding that validators should be expected to maximize their own financial returns.
The organization also questioned whether validator performance could be measured effectively under the proposed system. It said validators would not control redemption timing, making it difficult to maintain target portfolio allocations as users enter and exit positions.
Over time, Yuma argued, new emissions would represent an increasingly small portion of large validator baskets, limiting a validator’s ability to materially influence performance through future allocation decisions.
The report also raised concerns about regulatory treatment. Yuma said validators currently direct blockchain emissions, but Root Reborn would place them in a position where they actively determine subnet token exposure for delegators.
“Validators are no longer simply providing a neutral technological service due to the requirement to also set weights for subnet token rewards,” the group wrote.
Proposal seeks to reduce sell pressure on subnet assets Supporters of the proposal have presented the upgrade as a mechanism to keep more value inside the subnet economy.
A summary accompanying the Subtensor pull request stated that root yield would move away from automatic subnet token sales and toward reinvestment across validator-selected subnets. The proposal described the change as a way to make validator selection depend on capital allocation decisions rather than primarily on fees or staking yields.
The proposal also said delegators would gain additional transparency through dashboard tools that display basket composition, net asset value, and outstanding liabilities owed to stakers.
Yuma acknowledged that subnets receiving validator allocations could benefit from increased demand and stronger token prices. The group wrote that subnets awarded meaningful weights would likely experience net-positive price effects, while subnets receiving little or no allocation could see neutral outcomes.
At the same time, Yuma warned that the structure could encourage lobbying efforts by subnet operators seeking validator support. The report said new projects may face greater barriers to entry if relationships with validators become an important factor in attracting capital.
The validator group also identified operational risks. Its report cited escrow concentration in a single coldkey, redemption dynamics that could create losses for late redeemers during periods of heavy withdrawals, repeated slippage costs from basket rebalancing, and execution challenges if network activity scales significantly.
Yuma urged the OpenTensor Foundation and network stakeholders to consider alternative approaches that allow stakers to express subnet preferences directly through opt-in mechanisms rather than concentrating allocation decisions among validators.
The group also called for a published upgrade roadmap, a defined release process, additional testing, and formal risk evaluation before any implementation proceeds.
The debate arrives days after Bittensor attracted renewed market attention following comments from Grayscale Head of Research Zach Pandl, who argued that recent U.S. restrictions on Anthropic’s advanced AI models could strengthen demand for decentralized AI networks. Pandl wrote that investors may increasingly look toward alternatives such as Bittensor as access to frontier AI systems becomes subject to centralized controls.
TAO (TAO) climbed roughly 30% within 12 hours after those developments, as per previous coverage on crypto.news. However, as of press time, TAO is down over 6% as traders weigh the recent concerns around the Root Rebor proposal.
Bittensor’s TAO token has fallen nearly 20% from its June 15 peak after governance concerns, derivatives liquidations, and a risk-off macro backdrop combined to erase much of last week’s rally.
Summary
TAO has fallen nearly 20% from its June 15 high as governance concerns and liquidations hit sentiment. Criticism of the Root Reborn proposal has raised questions about validator power, liquidity, and regulation. Technical indicators show sellers remain in control, with $220 acting as a key near-term support level. According to data from crypto.news, Bittensor (TAO) price dropped 4.3% in the last 24 hours to trade near $225 on June 19, bringing its losses to nearly 20% since June 15, when the AI-focused token peaked around $283 before governance concerns and derivatives liquidations triggered a reversal.
Bittensor’s decline accelerated after criticism emerged around the proposed Root Reborn governance overhaul, a plan designed to reduce persistent subnet token selling by changing how validators allocate capital across the network.
While supporters view the proposal as a long-term fix for Bittensor’s tokenomics, opponents argue it could introduce governance concentration, liquidity stress, and regulatory complications.
Among the most vocal critics, validator group Yuma warned that Root Reborn would transform validators from neutral network operators into active capital allocators. According to Yuma, the framework could create incentives for collusion, preferential treatment, and frontrunning while encouraging subnet teams to prioritize validator relationships over AI product development.
“Such a change could fundamentally alter the role of validators,” Yuma wrote in its assessment of the proposal.
At the same time, derivatives traders rapidly reduced exposure. CoinGlass data showed TAO futures open interest falling more than 8% over a 24-hour period to roughly $252 million-$260 million. More than $1.66 million in bullish leveraged positions were liquidated during the same stretch, adding forced market selling as prices moved lower.
Trading activity also weakened. Daily volume dropped roughly 14% to about $624 million as traders reassessed protocol risk ahead of further discussions surrounding the governance proposal
Concerns extended beyond governance mechanics. Yuma argued that rewards tied to baskets of subnet tokens could become difficult to liquidate during periods of market stress, while a wave of unstaking could create execution disadvantages for later redeemers.
Macroeconomic conditions added another headwind. Crypto markets remained under pressure after Federal Reserve Chair Kevin Warsh reinforced expectations that U.S. interest rates may remain elevated for longer than previously expected.
The stronger U.S. dollar and declining appetite for speculative assets pushed capital away from high-beta sectors, including artificial intelligence-linked cryptocurrencies.
TAO technical structure favors sellers below key resistance The daily chart shows TAO breaking below a major horizontal support zone near $237, a level that acted as a floor during April and May. What previously served as support now risks becoming resistance after the breakdown.
TAO price has lost a key support level on the daily chart — June 19 | Source: crypto.news Murrey Math levels place the token below the 3/8 trading range support at $218.8, while the next major resistance stands near the 4/8 pivot at $250. A recovery above that region would be required to restore bullish momentum and reopen a path toward $281, where the June rally stalled.
On the four-hour chart, TAO has also fallen beneath the 23.6% Fibonacci retracement level at $228.2 after rejecting the 0.786 retracement near $273.8 earlier this week. Price continues to trade below a descending trendline that has capped every recovery attempt since June 15.
TAO 4-hour price chart — June 19 | Source: crypto.news Momentum indicators remain weak. The MACD has crossed into negative territory with expanding bearish histogram bars, while Chaikin Money Flow sits at -0.27, showing capital leaving the market. Although the Stochastic RSI remains above oversold levels on the daily timeframe, both signal lines have turned lower.
According to the 4-hour chart, TAO’s failure to reclaim the broken $237 support leaves the market vulnerable to another leg lower toward the $208 Fibonacci support zone.
TAO loses key support as sellers target lower liquidity zones CoinGlass liquidation heatmap data shows dense liquidity clusters concentrated between $239 and $241, creating a potential magnet should buyers regain control. Several additional liquidation pockets sit near $244 and $245, where short positions could come under pressure if TAO stages a relief rally.
TAO liquidation heatmap | Source: CoinGlass The downside picture remains equally important. A concentration of leveraged positions has formed around the $225-$226 area, while thinner support appears below current prices until the $220 region. A decisive break beneath $220 could expose the June swing low near $190 before attention turns toward the longer-term support band between $180 and $200.
Regulatory concerns surrounding Root Reborn present another risk. Yuma argued that validators directing capital allocations could attract scrutiny typically associated with investment management activities, potentially complicating participation for exchanges, custodians, and institutional operators.
If uncertainty surrounding the proposal persists while macro conditions remain restrictive, TAO may struggle to reclaim the $237-$250 zone that bulls need to regain control.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
