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Major Cryptocurrencies Struggle as Hang Seng Cheers U.S.-China Trade Talks; U.S. Inflation Eyed as China Deflation Worsens

by admin June 9, 2025



Major cryptocurrencies showed little bullish momentum Monday, even as hopes for the U.S.-China trade talks lifted Asian stocks.

Bitcoin

, the leading cryptocurrency by market value, traded flat-to-negative near $105,650, having carved out a doji candle, a sign of indecision, on Sunday, according to data source TradingView.

Data from Blockchain.com showed a marked slowdown in network activity, with the seven-day moving average of daily on-chain transactions falling to 315.48K, the lowest in at least a year.

Payments-focused cryptocurrency XRP

struggled to gather upside traction despite topping a bearish trendline from the mid-May highs. The cryptocurrency changed hands at $2.24 at press time, down over 1% on the day (UTC). Volatility may increase this week as the XRP Ledger’s APEX 2025 conference kicks off in Singapore.

Meme cryptocurrency dogecoin

traded nearly 2% lower, closing in on 18 cents, having failed to establish a foothold above the 100-day simple moving average (SMA) over the weekend.

Hang Seng tops 24K

Hong Kong’s Hang Seng index rose 1.3%, topping the 24,000 mark for the first time since March 24, according to data source TradingView. The move came in response to the optimism about the U.S.-China trade talks this week.

“Optimism is as high as it’s been since Trump’s election as top trade deputies will meet in London starting on Monday. There are indications that talks will go all week and Trump himself is optimistic,” ForexLive’s Chief Currency Analyst Adam Button said in a blog post.

“The meeting should go very well,” President Donald Trump said on Truth Social Friday, announcing the new round of trade talks in London.

Other Asian indices, such as South Korea’s KOSPI and China’s Shanghai Composite, also gained ground despite the deepening consumer and factory gate deflation in China.

China’s deflation worsens

China’s consumer prices fell 0.1% year-over-year in May, according to data from the National Bureau of Statistics released on Monday. The CPI first turned negative in February.

Meanwhile, the producer price index, or factory gate prices, fell 3.3% year-over-year in May, registering a sharper decline than the 3.2% drop analysts had expected. Factory gate prices have been in deflation since October 2022.

According to Robin Brooks, senior fellow in the Global Economy and Development program at the Brookings Institution, the U.S. tariffs are generating a deflationary shock for major exporters like China.

“China’s producer price inflation for consumer goods is down to its lowest level since the 2008 crisis. U.S. tariffs will now push China into full-on deflation. All necessary conditions for deflation are there: weak consumption and a debt overhang. U.S. tariffs are now the catalyst…,” Brooks said on X.

The worsening deflation could prompt China to stimulate domestic demand with further liquidity easing.

China’s central bank in May cut the key interest rates by 10 basis points to a historic low while reducing the reserve requirement ratio, releasing liquidity into the market. Last week, the state-run China Securities Journal reported that the People’s Bank of China may lower the reserve requirement ratio further later this year to support growth and restart government bond trading.

More Chinese stimulus could bode well for financial markets, including cryptocurrencies.

Focus on U.S. CPI

The U.S. consumer price index for May due Wednesday will be scrutinized by markets for clues that Trump’s tariffs are adding to price pressures in the economy.

The headline CPI is seen matching April’s pace of 0.2% month-on-month growth, equating to an annualized 2.5% rise versus April’s 2.3% increase, according to FXStreet. Meanwhile, the core inflation, which excludes the volatile food and energy component, is forecast to have ticked higher to 2.9% in May from 2.8% in April.

Economists at Barclays expect the data to show first signs of tariffs-related price increases across wide range of core goods.

A hotter-than-expected print could dent Fed rate cuts, potentially injecting downside volatility in financial markets.



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June 9, 2025 0 comments
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Tether at $515 billion? CEO says that’s 'bearish,' talks IPO
NFT Gaming

Tether at $515 billion? CEO says that’s ‘bearish,’ talks IPO

by admin June 8, 2025



Tether, the world’s largest stablecoin issuer, is making quiet but significant inroads into Latin American retail markets, with Bolivian merchants now pricing goods directly in USDT.

This grassroots adoption underscores the growing role of crypto in everyday commerce. Meanwhile, analysts are eyeing Tether’s booming financials—$13 billion in 2024 profits and a projected $515 billion valuation if it went public.

Despite speculation from industry figures like Anthony Pompliano, Tether CEO Paolo Ardoino dismissed the need for an initial public offering, signaling confidence in the company’s private structure and expanding influence.

He described it as a “quietly revolutionary shift” that shows how Tether (USDT) has been integrated into daily commerce. Ardoino shared images showing Bolivian shops displaying prices directly in USDT.

In Bolivia, real prices in shops are displayed in USD₮.

A quietly revolutionary shift: digital dollars are powering daily life, commerce, and economic stability. pic.twitter.com/dGP7I2ipxv

— Paolo Ardoino 🤖 (@paoloardoino) June 7, 2025

Massive valuation projections spark public listing debate

Financial analyst Jon Ma recently projected that Tether would rank as the 19th largest company globally with a $515 billion valuation if it went public today. This means that the company could surpass household names like Costco and Coca-Cola.

Ma’s analysis points to Tether’s reported $13 billion in net profits for 2024, with $7 billion derived from Treasury securities and repos. At the same time, an additional $5 billion came from unrealized gains on Bitcoin and gold reserves.

Tether valuation at 515B is a beautiful number.
Maybe a bit bearish considering our current (and increasing) Bitcoin + Gold treasury, yet I’m very humbled.
Also truly excited for the next phase of growth of our company.

Thank you everyone❤️ https://t.co/exZc05SDwd

— Paolo Ardoino 🤖 (@paoloardoino) June 7, 2025

The projection assumes USDT supply growth of $50-60 billion and an average supply of $170 billion in 2025.

Responding to the valuation estimate, Ardoino called the $515 billion figure “beautiful” and also suggested it might be “bearish” considering Tether’s expanding Bitcoin and gold treasury holdings.

Pompliano pushed the speculation further by suggesting a $1 trillion potential valuation.

Tether CEO dismisses immediate IPO necessity

When questioned about potential benefits of going public, Ardoino provided a short response: “No need to go public.” The statement shows confidence in Tether’s current private structure and financial performance.

Source: Paolo’s X post

In contrast to Circle’s choice to go public through a SPAC merger, Tether is reluctant to pursue public listing. The retail USDT integration in Bolivia highlights the general trend of crypto acceptance in Latin America.

The development follows similar patterns in other Latin American markets where USDT has acted as both a store of value and a medium of exchange.

USDT remains the largest stablecoin by market cap. As per CoinMarketCap data, USDT has a market cap of $154.8 billion.





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June 8, 2025 0 comments
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Subnautica 2 studio talks silent protagonist, a big ol' ocean map, and more in latest Q&A
Game Reviews

Subnautica 2 studio talks silent protagonist, a big ol’ ocean map, and more in latest Q&A

by admin June 4, 2025


Subnautica 2 might still be lacking an early access release date beyond a vague “2025” window, but that hasn’t stopped Unknown Worlds from cranking the hype handling a little harder, with the studio having now shared a few additional details as part of a new video Q&A.


Last time around, Unknown Worlds offered a first, fleeting look at Subnautica 2 gameplay, but for its latest video update, creative producer Scott MacDonald and community manager Donya Abramo tackled a couple of burning fan questions. Admittedly, most of them ended with ‘not yet’, ‘maybe at some point’, and ‘no’, but there were still a couple of facts to glean.


Perhaps the most notable tidbit came in form of confirmation that Subnautica 2 will ditch the controversially chatty protagonist of 2021’s standalone expansion Below Zero and return to the silent protagonist approach of the first game, although that doesn’t mean other characters won’t be voiced. The decision accompanies the introduction of customisable characters, with players able to select from a handful of pre-designed protagonists before diving in. Unknown Worlds notes there’ll potentially be some further “freedom to express yourself as your character”, but whatever that means, it won’t be util after early access launch.

Subnautica 2 teaser trailer.Watch on YouTube


As for the world of Subnautica 2, it’s set on a brand-new ocean planet promising “all-new mysteries, creatures, and experiences”, and Unknown Worlds says it’s aiming for the game to be the “biggest and most exciting” series entry “ever” when it hits 1.0 in a few years time. It isn’t, however, exactly sure “how big and how deep [players will] be able to go over the course of early access”, but says the initial early access launch map will be more sizeable than those of the original Subnautica and Below Zero at a comparative time.


And a vast new underwater world to explore means vehicles. Unfortunately for fans of the Cyclops, Seamoth, and even the Sea Truck seen in earlier games, none of those are returning for the sequel. However, Unknown Worlds says new vehicles are coming – including a big sub scheduled to arrive later in early access – that’ll be “designed in the same spirit [as their predecessors], just more suited to the brand-new environment they need to navigate”. Additionally, “some of your favourite tools [will return], but improved”, and base building is set to offer “more customisation than ever before”.


What else? The studio stresses that, despite supporting co-op for up to four players, Subnautica 2 is being designed as a solo experience first. That means it should retain the sense of “isolation and terror” that made the original such a winner, although the studio readily admits it “won’t really be able to protect” that atmosphere if players opt to bring friends along for the ride. Sadly, there’s no local split-screen option for those wanting to cuddlefish up on the couch, but cross-play is supported between Xbox and PC platforms, and as for proximity chat, that’s currently being ‘investigated’. VR support isn’t on the cards at present, however.


And all of that brings us back to the big question of a release date, but Unknown Words says it’s “not quite ready to share one just yet”. Nor is it talking platforms beyond PC and Xbox, only teasing Subnautica 2 will hit other machines “when the time is right”. It is, though, still scheduled for a 2025 release, and will be available as part of Game Pass on day one.



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June 4, 2025 0 comments
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GameFi Guides

Is Crypto Over? + OSF talks Brand Coins!

by admin May 30, 2025



Is Crypto Over? + OSF talks Brand Coins!

Is Crypto Over? + OSF talks Brand Coins! – FOMO HOUR EP368

FOMO HOUR brings you the biggest daily news, updates and events from inside and outside of the crypto and macro spheres! Join hosts Farokh, Mando and Tyler as they cover some of the biggest topics at present with some of the biggest names in the ecosystem. Streaming live 5 days per week, Monday to Friday 10:00 AM EST to 11:00 AM EST on YouTube and X.

JOIN YEET = https://yeet.com/register?aff=fomohour
PLAYLIST = https://www.youtube.com/playlist?list=PLGSgoImPFTiVpkHhLXF78cE_Z3uG7VNGL
PODCAST = https://x.com/i/spaces/1kvKpydgqMQGE

Links:
https://linktr.ee/fomohour
Tweets by fomohour
https://www.rug.fm/
https://x.com/rugradio

Hosts:
Tweets by farokh
Tweets by rektmando
Tweets by Tyler_Did_It

Myriad:
https://myriad.markets
https://x.com/MyriadMarkets

#bitcoin #crypto #podcast





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May 30, 2025 0 comments
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Asia Morning Briefing: All Eyes on TON as Elon Musk Pours Cold Water on xAI Deal Talks
NFT Gaming

Asia Morning Briefing: All Eyes on TON as Elon Musk Pours Cold Water on xAI Deal Talks

by admin May 29, 2025



Good Morning, Asia. Here's what's making news in the markets:

Welcome to Asia Morning Briefing, a daily summary of top stories during U.S. hours and an overview of market moves and analysis. For a detailed overview of U.S. markets, see CoinDesk's Crypto Daybook Americas.

Telegram's blockbuster deal with xAI, which would see Elon Musk's AI company integrate into Telegram and the two firms share revenue, is still a work in progress despite an announcement from Pavel Durov earlier Wednesday, U.S. time, that the deal was inked.

TON, a token affiliated with Telegram's ecosystem, is trading at $3.30, rallying there from $3 after the initial – now refuted – announcement of the partnership was made. The token is down from an earlier high of $3.68, after Elon Musk posted on X that no deal had been signed between the two companies. TON is still up 11% on the day, according to CoinDesk market data.

While Durov has now confirmed that no deal has been signed, the Telegram founder said there is an “agreement in principle” which might be why TON still has significant support at the $3.30.

All eyes will be on Telegram and xAI as the Asia business day begins to see if more clarification comes from either side.

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Decentralized BlueSky isn't a Web3 Company, Says CEO

VANCOUVER—Jay Graber, the CEO of fast-growing decentralized social media platform Bluesky, got her start in Web3 as a developer for privacy coin zCash, but she wants to keep her X competitor firmly in Web2.

Speaking at Web Summit in Vancouver on Wednesday, Graber argued blockchain technology’s permanence and resource-intensive design make it unsuitable for consumer-oriented social networks, where content is fleeting and personal.

“Why do you need your picture of what you post for lunch being maintained forever in this digital archive?” she asked on stage, highlighting the inherent scalability and cost limitations that drove her decision to avoid blockchain at Bluesky.

Graber, to be sure, isn't against crypto. She says there's still genuine value in the technology for things like payments and digital identity, even if sometimes Web3 often presents solutions in search of a problem, and has a trend of gravitating towards centralization.

“There’s a period where everyone was creating blockchain like this hammer, and we were just going to try blockchain for everything,” Graber said. “Every system that's trying to do it ends up with concentrations because it's easy, and convenience ultimately wins at the end of the day.”

For her, Bluesky's future lies in combining the ideals of decentralization, such as user autonomy and portability, with practical, Web2 infrastructure to create a platform that prioritizes users' needs.

“Blockchain will probably find its place somewhere in the world of technology, but Bluesky is not on a blockchain because we're just making the best choices for our users,” she concluded.

Nvidia's Earnings Beat Boosts Stock, Offers Modest Lift to AI Tokens

Shares of Nvidia rose roughly 4% in after-hours trading Wednesday after reporting stronger-than-expected first-quarter earnings, highlighted by a 69% revenue increase from last year and a 73% jump in its data center business driven by robust demand for AI chips. Net income rose 26% to $18.8 billion, boosting Nvidia’s year-to-date performance modestly higher, CoinDesk previously reported.

The earnings report provided a slight lift to AI-related crypto tokens like Bittensor (TAO), NEAR Protocol, and Internet Computer (ICP), though gains were modest.

However, Nvidia tempered future expectations, cautioning that second-quarter revenue might fall short of market estimates due to tariff-related trade tensions between the U.S. and China.

Market Movements:

  • BTC: Bitcoin dipped 1.2% to $107,800, though NYDIG sees more room for gains. At the same time, crypto markets shrugged off a U.S. court blocking Trump's broad tariffs as unconstitutional, with BTC trading remaining muted.
  • ETH: Ether is trading above $2700 as Asia begins its business day. Earlier, CoinDesk analyst Omkar Godbole wrote ETH is eying a breakout above $3,000, forming a bullish “ascending triangle” pattern with rising support and resistance at $2,735, as higher lows signal growing buying pressure and accumulation ahead of a potential price surge.
  • Gold: Gold has slipped 1% to $3,267.47 amid cooling safe-haven demand, though tariff and geopolitical uncertainty linger.
  • Nikkei 225: The Nikkei 225 is opening in the green, up 1%, as investors in export-reliant Japan are looking at a recent announcement that the Supreme Court has blocked Trump's tariffs with cautious optimism, even as crypto shrugged it off.
  • S&P 500: While the S&P 500 closed in the red, futures are up 1% as traders await more clarity regarding the court's move to block Trump's tariffs.



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May 29, 2025 0 comments
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Circle Sets The Record Straight: No Talks Of Sale To Coinbase Or Ripple

by admin May 27, 2025


Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

Circle, the issuer of the USDC stablecoin, has firmly denied reports suggesting it is engaged in informal discussions regarding a potential sale to either US-based crypto exchange Coinbase or blockchain payment company Ripple. 

This denial comes in light of a report from PYMNTS, which highlighted that Circle remains focused on its initial public offering (IPO), initially filed in April.

Circle Focuses On IPO Despite Ongoing Acquisition Interest

A spokesperson for Circle stated to the news outlet, “Circle is not for sale. Our long-term goals remain the same.” This statement follows claims made by Seeking Alpha, which referenced a paywalled article from Fortune indicating that Circle was seeking a valuation of at least $5 billion in its negotiations with Coinbase and Ripple as well as in its upcoming IPO.

Earlier reports had indicated that Circle rejected a takeover bid from Ripple, which ranged between $4 billion and $5 billion, citing the offer as too low. While Ripple has expressed ongoing interest in acquiring Circle, it has not made a decision regarding a new offer, as Circle continues to pursue its IPO.

Circle’s IPO plans have seen a resurgence after a previous delay in December 2022. The company announced on April 1, 2024, that it had engaged investment banks to underwrite the IPO, although the exact timing for the public offering has yet to be determined. 

The renewed interest in public offerings within the cryptocurrency sector is partly attributed to a wave of digital asset megadeals propelled by a crypto-friendly administration under President Donald Trump and a more relaxed regulatory environment in the US.

Ripple, Coinbase, Pursue Major Growth Strategies

In recent weeks, Ripple made headlines by acquiring prime brokerage Hidden Road for $1.25 billion, a move that positions it as the first cryptocurrency firm to own and operate a multi-asset prime broker. 

Coinbase, on the other hand, has also been active in expanding its reach. On May 9, the company announced plans to acquire Dubai-based crypto derivatives exchange Deribit for $2.9 billion, aiming to strengthen its position in the global derivatives market.

In addition to its IPO endeavors, Circle has also been pursuing strategic acquisitions. On January 21, the company announced its acquisition of Hashnote, the issuer of the USYC stablecoin, which is incubated by Cumberland Labs, the largest tokenized treasury and money market fund globally. 

The stablecoin issuer’s CEO Jeremy Allaire remarked that this acquisition would unlock significant potential in a market increasingly driven by institutional adoption, where participants expect market structures akin to traditional finance.

The daily chart shows XRP’s price consolidation. Source: XRPUSDT on TradingView.com

When writing, XRP, the fourth largest cryptocurrency in terms of market cap, trades at $2.31, failing to seize Bitcoin’s (BTC) momentum after reaching a new all-time high, with the altcoin registering losses of 9% in the past fourteen days. 

Featured image from DALL-E, chart from TradingView.com 

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.



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May 27, 2025 0 comments
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Lawrence Bonk
Product Reviews

OnlyFans is in talks to sell for $8 billion

by admin May 23, 2025


OnlyFans is on the selling block, according to a report by Reuters. The current owner of the adult entertainment platform, Fenix International Ltd, is in talks to sell to an investor group at a valuation of around $8 billion. This group is being led by an entity called the Forest Road Company, which is an investment firm based in Los Angeles.

The platform generated $6.6 billion in revenue just in 2023, so the idea of an $8 billion payout doesn’t seem that far-fetched. OnlyFans became a global phenomenon during the COVID-19 pandemic and it takes 20 percent of all creator earnings.

Investor interest has peaked over the past several months as impressive earning statements became public. It has managed to triple its revenue since 2020, which is something many companies that experienced pandemic-related boosts cannot say.

Sources have stated that a deal could be reached within the next week or two. However, Fenix International Ltd have also been in talks with other potential buyers. An IPO is also being considered, an idea that’s been floating around since 2022.

However, an outright purchase is more likely than a public offering. This is due to the porn of it all. The company tried to get around this by announcing a ban on sexually explicit content in 2021, but reversed course before the ban even went into place. OnlyFans is, after all, primarily for sexually explicit content.

If you buy something through a link in this article, we may earn commission.



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May 23, 2025 0 comments
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Product Reviews

OnlyFans Is Reportedly in Talks to Sell Off Its Porn Empire

by admin May 23, 2025


OnlyFans, the internet’s kingdom of smut, may be changing hands soon. Reuters reports that the porn platform’s parent company, Fenix International, Ltd., is in talks to sell the business for some $8 billion to a U.S. investor group.

The New York Post previously reported that Leonid Radvinsky, the billionaire owner of the site, was looking to “cash out,” but had not yet found a buyer. Reuters now identifies at least one potential buyer as the Forest Road Company, an investment firm based in Los Angeles that is reportedly leading an investor group that wants to buy the porn platform. On its website, Forest Road describes itself as “not your average investment firm” and says it embraces “complexity and creativity to extract value where others see limitations.” The site also expresses an interest in “media & entertainment” and “digital assets.”

Not much else is known about the talks. Citing sources familiar with the potential deal, Reuters writes that Fenix is also talking to other interested parties. Gizmodo reached out to OnlyFans for more information.

OnlyFans was founded in 2016 and rose to prominence during the pandemic by helping horny web users satisfy their libidos whilst otherwise avoiding human contact. Since then, the business has only continued to grow. Other than a weird brief moment in 2021 (when the company bizarrely claimed it would ban “sexually explicit content”), it has served as a premier destination for dirty content, and has helped re-shaped the porn industry through its gig-worker model. Last year, the company reported that payments made through the platform had surged by 19 percent since 2023, topping some $6.6 billion.

Radvinsky purchased the company in 2019 and it has made an absolute killing since then. Bloomberg reported last year that the mogul had made $1 billion in three years through corporate dividends from the business.

The company has also been the subject of considerable criticism, as well as numerous legal complaints. Critics accuse the platform of being frequented by sex traffickers, and claim that the site has also become a portal for child sexual abuse material. The company was also recently sued by two customers who were outraged to discover that they may have not been messaging with real models (creators often outsource their customer communications to third-party firms).



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May 23, 2025 0 comments
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US big banks hold early talks on joint crypto stablecoin: WSJ
Crypto Trends

US big banks hold early talks on joint crypto stablecoin: WSJ

by admin May 23, 2025



Some of the biggest banking companies in the US are reportedly exploring a team-up to launch a crypto stablecoin.

Companies owned by JPMorgan, Bank of America, Citigroup and Wells Fargo have discussed the possibility of jointly issuing a stablecoin, The Wall Street Journal reported on May 22, citing people familiar with the matter.

Other financial institutions linked to the potential stablecoin include Early Warning Services, the parent company of digital payments network Zelle, and the payment network Clearing House.

The discussions are still in the early stages, and a final decision on the project could change depending on the regulatory environment and the demand for stablecoins.

A JPMorgan spokesperson told Cointelegraph the company had no comment. Bank of America, CitiGroup, and Wells Fargo did not immediately respond to requests for comment.

On May 20, the US Senate voted 66-32 in favor of advancing discussion on the stablecoin-regulating Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act. 

The bill outlines a regulatory framework for stablecoin collateralization and mandates compliance with Anti-Money Laundering laws. The bill is now headed to debate on the Senate floor.

Earlier this week, White House crypto czar David Sacks said he expects the bill will be passed and that it will receive bipartisan support.

However, high-ranking Democrats plan to amend the bill to include a clause prohibiting President Donald Trump and other US officials from profiting from stablecoins.

Trump and his family launched the crypto platform World Liberty Financial, which created the USD1 stablecoin in March. Critics argue that President Trump stands to personally benefit from passing favorable stablecoin regulation.

Related: World Liberty Financial brushes off oversight concerns from Congress

Stablecoin demand surges

The demand for stablecoins has been on the rise, with nation states adopting and institutions wanting to incorporate stablecoins.

The total market capitalization of stablecoins has shot up to $245 billion from $205 billion at the start of the year, representing a 20% increase.

Earlier this week, it was reported that yield-bearing stablecoins now account for nearly 4.5% of the entire stablecoin market, with a circulating supply of $11 billion.

Austin Campbell, a New York University professor and founder of Zero Knowledge Consulting, said the American banking lobby is “panicking,” as stablecoins can disrupt the traditional banking business model.

Earlier this month, it was reported that tech giant Meta is exploring ways to incorporate stablecoin payments into its platforms.

Magazine: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight



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May 23, 2025 0 comments
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‘A profound mistake’: Sonos’ CEO talks about its broken app and why it’s been so hard to fix
Product Reviews

‘A profound mistake’: Sonos’ CEO talks about its broken app and why it’s been so hard to fix

by admin May 22, 2025



On May 7, 2024, Sonos launched a new version of its software intended to help customers manage their music and their Sonos system more easily, and with fewer taps. What happened next can only be described as a fiasco. Upon opening the new app for the first time, Sonos users were not only greeted with an unfamiliar interface, many found that their systems had become unresponsive and that features they had come to rely on (like alarms and play queue access) had evaporated.

As days and weeks passed, it became clear that these weren’t temporary glitches. Sonos’ CEO, Patrick Spence, spent the following summer and fall apologizing and assuring his customers (and presumably his board of directors) that the company had adopted an all-hands-on-deck stance and that fixing the broken app was everyone’s top priority. However, eight months after the launch the app was still far from fixed and Spence was fired on January 13, 2025. His replacement, board member Tom Conrad, was announced the same day.

Sonos CEO, Tom Conrad Sono

Conrad’s list of previous gigs in senior engineering and product roles at companies like Pandora, Snapchat, Quibi, and Apple makes him a strong choice as Sonos’ interim CEO. But that doesn’t mean it’s been an easy transition.

In fact, when I caught up with Conrad on his 116th day on the job, he described it as a fairly hellish period marked by a number of challenges, including his family’s relocation from Los Angeles to Santa Barbara — a small distance on the map that nonetheless turned into a mini odyssey beset by the unprecedented L.A. wildfires, four different AirBnBs, two flat tires, and having his L.A. home burglarized. Oh, and his dog got skunked. Twice. 

And that was before we started to chat about the job he’d been hired to do: Fix the still-broken Sonos platform so that its customers could finally get back to enjoying their music.

Our short chat managed to cover lot of ground: the company, its products, its now-defunct Ikea partnership, and, of course, the app (and why, one year later, our Sonos systems still aren’t working as they should.)

Too many silos

Sonos

When he arrived, Conrad discovered that Sonos’ internal teams were siloed by product category (headphones, home theater, etc.), making it difficult to prioritize, share resources, or maintain a cohesive user experience.

“The first thing that I did was to take that apart and put the team back together into hardware and software design, and then do a comprehensive inventory of all of the projects that were underway, many of which, it turned out, were insufficiently staffed for success.”

Conrad slashed a list of “dozens” of these projects down to 11 well-staffed initiatives. “It changed the mood inside the company, kind of overnight.”

A neglected core

Simon Cohen / Digital Trends

It also became apparent that the sheer number of projects and silos had played a big role in the atrophy of Sonos’ core software platform. Since 2019, Sonos had launched a lot of new products. Dolby Atmos soundbars, two types of portable speaker, a Sonos-developed voice assistant, its first wireless headphones, plus a major push into the professional installation market. “The investment that the company was making [in the core software],” Conrad notes, “was not enough.”

And while the app redesign fiasco of 2024 is simply the most recent symptom of this neglect, Conrad says it’s responsible for the kinds of reliability and performance issues that have been left unaddressed since 2019, or longer.

No more trust

Phil Nickinson / Digital Trends

Clearly, having a customer base that can’t use your product isn’t ideal for any company. “No one wakes up in the morning and says, I want to spend some time in the Sonos app today,” Conrad quipped. 

He’s crystal clear on the gap between how the app should work: “I think we have one obligation. The experience has to be fast, reliable, usable, and mostly get out of your way,” versus where it’s at today, “The sad reality is that Sonos still fails too often.”

But the worst part of the redesign’s fallout has been the erosion of trust. “The rollout of the app last year was such a profound mistake. All of the goodwill that our customers would normally have applied when they have a little hiccup in their experience — we don’t get any of that benefit of the doubt.” 

Legacy is still Sonos’ greatest strength … and its greatest weakness

Phil Nickinson / Digital Trends

Conrad also appears to be gradually making his peace with an inconvenient and unavoidable truth: Longtime Sonos customers often own wireless speakers and components that date back to 2010 or older, and they expect them to keep working — “even though the iPhone 4 they bought the same year has long been relegated to the dust bin.”

He reminded me that Sonos gear is “sensitive to the details of your home network in ways that almost nothing else you own is.” We discussed the intricacies of Wi-Fi and how, long before there were any commercially available mesh routers like Eero or Orbi, the company had created its own mesh system known as SonosNet.

For a moment, it sounded like Conrad might be trying to blame the company’s performance woes on its customers’ networks. In fairness, we live in a very different Wi-Fi environment than the one Sonos found itself in back in 2005, when it launched its first product. However, he acknowledged that despite these challenges, Sonos has to own the solutions. “We made promises to our customers that we will synchronize audio across their [devices], and so we have to solve for this environment. This is the life we’ve chosen.”

He’s also quick to point out that if once-loyal Sonos customers now instinctively blame the company’s products (instead of looking at their internet connection or Wi-Fi for the flaw), “it’s totally deserved.”

Brighter days ahead

One of the biggest problems with the new app is that it hasn’t proven to be an easier-to-use experience than the one it replaced. Conrad sympathizes with those who are wondering, “Why did Sonos invent this new navigation paradigm?” Like many Sonos users, he can be quite critical. “It’s not my appraisal that all of those design decisions were good ones.”

Still, Conrad sounds confident about the future.

“I think we really have cracked the code on the big issues that we needed to solve on performance and reliability, and we’re well on our way to putting that chapter behind us.” He says that fixes to the remaining usability and experiential issues are coming through the summer and fall. “ I feel really great about Sonos right now.”

On Ikea and that mysterious Pinewood project

Simon Cohen / Digital Trends

At the tail end of our chat, I was able to squeeze in one last series of questions around the end of the Ikea Symfonisk speaker partnership — one which produced the most affordable and decor-friendly Sonos speakers to date. Why nix such a seemingly good match?

“That partnership is eight years old and has diminished to the point of being immaterial to our business and theirs. It was a question of walking away from something whose heyday was long in the rearview.”

I was surprised to hear that, given how well the Symfonisk speakers matched Sonos’ previous mission statement of “fill every home with music.”

“That line of thinking is how we got into the partnership,” Conrad acknowledged, “but it’s not really how it ever played out in the real world.”

As for the much-rumored but never officially discussed Pinewood project — Sonos’ now-shelved move into the video streaming world — Conrad refused to be drawn into a discussion. However, he did note that, “You have to know what you can be best in the world at, and you have to bite off an appropriate amount to tackle. Without commenting specifically, you’ll see us continue to focus where we can win.”

Down, but not out

Simon Cohen / Digital Trends

From the start of his tenure as Sonos’ CEO, Conrad has said all of the right things. I came away from our chat believing that even though Sonos’ problems run deeper than anyone had previously acknowledged, he’s focused on what matters most: restoring our Sonos systems so that they just work.

Unfortunately, it sounds like it’s going to be several more months — at least — until that day arrives. Some Sonos customers have already called it quits and I can’t say I blame them. Our home has Sonos speakers in every room (including one of the bathrooms) and my family has grown weary of not being able to play the music they want without encountering bugs. We’ve even started saying “Sonos” as curse word, kinda like Jerry Seinfeld used to utter the name of his nemesis, Newman.

Still, when it works, I have yet to find a multiroom audio system that sounds as good and has as many useful features as Sonos. Wiim is catching up fast — very fast — but for all of its strengths (design, hi-res compatibility, affordability, and reliability), it’s still not as simple and easy to use as Sonos (again, when it works).

I’ll be sticking with Sonos for a little longer. As frustrated as I am by its ongoing issues, I think Tom Conrad deserves a shot at fixing them. And since Sonos didn’t get itself into this mess overnight (even though that’s what it felt like to most of us), I know the fix will also take time. I just hope that patiently waiting doesn’t also prove to be a profound mistake.






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May 22, 2025 0 comments
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