In a significant industry development, Telegram's CEO Pavel Durov officially announced the termination of the Telegram Open Network (TON) blockchain project. This decision came as a direct response to a legal injunction from a United States court that prohibited further development and research on TON. Durov compared the situation to a court forbidding gold miners from selling their gold to investors, highlighting the regulatory challenges surrounding the issuance of its native token, GRAM.
Despite the project's shutdown, Durov acknowledged the substantial technical progress TON had made in blockchain infrastructure over recent years. The U.S. Securities and Exchange Commission (SEC) had been actively challenging TON since the previous year, leading to multiple postponements of the mainnet launch due to ongoing compliance issues.
Digital Currency Trends
Bitcoin Locked in DeFi Reaches New Peak
The total volume of Bitcoin locked in decentralized finance (DeFi) applications has surged to a record high. On May 12, the amount reached 2,238 BTC, indicating growing interest in cross-chain DeFi solutions. In contrast, the value of Ethereum locked in DeFi has been declining since its peak in January 2020, dropping by 5% to 2.766 million ETH.
Grayscale's Crypto Assets Under Management Hit $3.7 Billion
Grayscale Investments, a major digital asset management firm, reported a new high of $3.7 billion in assets under management. The company also suggested that the expanding U.S. fiscal deficit could serve as a potential catalyst for Bitcoin and other cryptocurrencies.
Stablecoin Supply Exceeds $10 Billion
The total supply of stablecoins has surpassed $10 billion for the first time, reaching $10.4 billion—a 79% increase since February. Tether continues to dominate this sector with an 85.1% market share and a total supply exceeding $8.8 billion, followed by USDC with a 7.2% share.
Tether also authorized the printing of an additional 100 million USDT on the TRON network. According to Bitfinex CTO Paolo Ardoino, these funds are intended for future issuance requests and are not yet in circulation.
Mining and Auctions
Lubian Pool, a relatively new mining pool, briefly entered the top ten Bitcoin mining pools by hash rate, ranking eighth with 5,650 PH/s. Meanwhile, Celo’s cGLD token auction successfully raised over $1 million, with each token priced at around $5.10 USDC at the time of reporting.
Blockchain Industry Updates
In a landmark achievement for both blockchain and international trade, Standard Chartered issued the first-ever cross-border letter of credit denominated in offshore人民币 using the Contour blockchain platform. This transaction supported Baowu Steel Group’s iron ore import from Australia and represented the industry’s first fully paperless RMB trade.
In another significant move, J.P. Morgan began providing banking services to two major U.S.-based cryptocurrency exchanges, Coinbase and Gemini. This development marks a notable shift in the banking industry’s stance toward crypto businesses. The services are currently limited to cash management and U.S. dollar transactions via traditional banking networks.
Investment and Financing
Blockdaemon, a blockchain node infrastructure provider, secured $5.5 million in a funding round led by HashKey Capital, CoinShares, Blockchain.com Ventures, and Fenbushi Capital. The company plans to use the capital to expand its operations in Asian and European markets. Founded in 2017, Blockdaemon supports node deployment and management for over 30 blockchain protocols.
Global Policy Developments
The Central Bank of Mauritius is advancing toward the pilot launch of a retail-focused central bank digital currency (CBDC). Governor Harvesh Seegolam emphasized that any CBDC would be distributed through the existing banking system to maintain financial stability.
Meanwhile, the Shanghai Head Office of the People’s Bank of China issued a public warning against financial scams that misuse terms like "virtual currency," "blockchain," and "consumer rebates" to attract investors. The notice advised the public to avoid investments that promise unrealistic returns or rely heavily on promotional hype.
Expert Perspectives
Anthony Pompliano, founder of Morgan Creek Capital, argued that government responses to the COVID-19 pandemic—particularly large-scale monetary expansion—could accelerate cryptocurrency adoption. He suggested that fears of inflation and currency devaluation may drive individuals toward Bitcoin and other digital assets as alternative stores of value.
Frequently Asked Questions
What was the main reason for Telegram shutting down the TON project?
Telegram discontinued TON due to a legal prohibition from a U.S. court that barred the development and distribution of its GRAM tokens. Regulatory challenges from the SEC played a central role in this outcome.
Why is the total supply of stablecoins increasing so rapidly?
Stablecoin supply is growing due to rising demand for digital dollar equivalents in trading, lending, and DeFi applications. Their peg to traditional currencies offers stability in a volatile crypto market.
How are traditional banks like J.P. Morgan getting involved with cryptocurrency?
Major banks are beginning to offer cash management and transaction services to regulated crypto businesses. This includes processing dollar deposits, withdrawals, and wire transfers for compliant exchanges.
What is a central bank digital currency (CBDC)?
A CBDC is a digital form of a country’s fiat currency, issued and backed by the central bank. It aims to combine the efficiency of digital transactions with the stability and trust of traditional money.
What should investors look out for in crypto-related investment opportunities?
Investors should be cautious of promises of high returns, reliance on buzzwords like "blockchain," and unverified endorsements. Always research the team, technology, and regulatory compliance of any project.
How can I securely participate in DeFi or token auctions?
Use reputable platforms, understand the smart contracts involved, and never invest more than you can afford to lose. For more guidance on risk management, explore more strategies from trusted sources.