According to @MilkRoadDaily, a dangerous trend is emerging in Web3 where venture capital (VC) funds prioritize rapid token exits over sustainable product development, creating structures that function like Ponzi schemes. The source notes that while global venture financing declined to $23 billion in April, a significant portion still flows into token deals designed for quick profits, using new investors as exit liquidity for insiders. This model is under increasing regulatory scrutiny, as evidenced by a $198 million SEC fraud case and a 97-month prison sentence for a crypto platform co-owner involved in a similar scheme. The author warns that this focus on 'Ponzinomics' leads to a graveyard of 'zombie protocols' and erodes Web3's reputation, pushing talent and institutional capital towards more transparent sectors. This trend is seen as a betrayal of crypto's original cypherpunk ethos, with the author citing examples like Coinbase's political engagements as a sign of the industry being co-opted by the very systems it was meant to challenge.

According to @jessepollak, the cryptocurrency market is seeing significant bullish signals from institutional and regulatory developments. A key catalyst is the Federal Housing Finance Agency (FHFA) ordering Fannie Mae and Freddie Mac to prepare to count cryptocurrency as a valid asset for mortgage applications, a move that could deeply integrate crypto into the U.S. housing market. This is complemented by 12 consecutive days of net inflows into spot Bitcoin (BTC) ETFs, totaling $548 million, indicating strong institutional demand. On the regulatory front, the U.S. SEC is reportedly working on an 'innovation exemption' to accommodate DeFi platforms. In ecosystem news, Polygon (MATIC) is undergoing a major strategic shift, with co-founder Sandeep Nailwal taking over as CEO of the Polygon Foundation to focus on the AggLayer protocol and retire the zkEVM network. Furthermore, Ant Group's plan to seek stablecoin licenses in Hong Kong and Singapore and Plume's mainnet launch for real-world assets (RWA) underscore the growing integration of crypto with traditional finance.

According to @SECGov, ongoing discussions underscore the push for regulatory frameworks to enable trading of tokenized securities, including tokenized debt, equity, and investment funds. This development is important for crypto traders as greater regulatory clarity could increase institutional participation and liquidity in digital assets, potentially driving trading volumes and price movements across related cryptocurrencies (Source: @SECGov, June 2024).

According to Crypto Rover, an SEC Commissioner has confirmed that she will implement 'clear rules' for Bitcoin and cryptocurrency markets, signaling a shift toward regulatory transparency and potentially reducing uncertainty for traders. This development is expected to impact trading strategies and overall market sentiment by providing a defined compliance framework, which may support institutional adoption and liquidity growth in the crypto sector (source: Crypto Rover, Twitter, May 30, 2025).