Crypto Scoop: Bitcoin Trades At $56,000, Cardano’s Chang Hard Fork Goes Live

This week, several altcoins take the spotlight with exciting initiatives and milestones. In this edition of the Crypto Scoop, we review the following:

• Price moves of top cryptocurrencies
• Cardano’s Chang hard fork 
• Ripple’s introduction of smart contracts
• Polygon’s transition to POL
• Global crypto initiatives and regulation and more.

Price Moves of Top Cryptocurrencies

Bitcoin's price dropped sharply to $56,000 this week, with Ethereum following suit at $2,400. The crypto fear index also plummeted from 34 last week to 22 at extreme fear. While top cryptocurrencies may be trading in red, Toncoin was in the spotlight. 

The arrest of Telegram CEO Pavel Durov, following the landing of his plane at Le Bourget airport near Paris added uncertainty to the TON ecosystem. Despite recent turbulence, Toncoin, a prominent player within The Open Network (TON) ecosystem, has reached a market capitalisation of $13.96 billion.

The network saw a spike in daily active users (DAUs), reaching 1.1 million as of May 13, according to IntoTheBlock (ITB) data. Additionally, TON’s network surpassed 1 billion transactions, a significant milestone just after two significant outages hit the network due to the airdrop of the DOGS memecoin.

Cardano’s Chang Hard Fork Goes Live

Cardano has completed the first phase of its Chang hard fork, marking a significant milestone toward full decentralised governance. On September 1, the blockchain officially entered a new era, with this upgrade setting the foundation for a fully self-governing network. This development makes Cardano the first major blockchain to implement a token-based governance system, positioning it as a pioneer in decentralised systems.

Charles Hoskinson, Cardano’s founder, hailed the achievement as monumental, asserting that it "dwarfs Bitcoin" in terms of its significance. He emphasised that the successful transition of a distributed system, spanning over 100 countries, into a decentralised entity with its own constitution without any central coordination is a remarkable technical feat. Hoskinson remarked, "Books will be written about what has happened," highlighting the historical importance of this upgrade.

He further described Cardano as a "governance virus," stating that it is now self-replicating and self-sustaining, with a drive to grow and evolve. According to Hoskinson, nothing can halt the network's expansion or shut it down, solidifying its place in blockchain history as an unstoppable force in decentralised governance. This hard fork is seen as a critical step in Cardano's journey, positioning it ahead of its peers in the race to create truly decentralised and autonomous blockchain ecosystems.

Ripple to Expand XRP Ledger with Smart Contracts to Attract Developers

In a recent announcement, Ripple revealed plans to introduce smart contracts to the XRP Ledger (XRPL), aiming to broaden the network's capabilities and attract developers. This move is expected to bring new use cases to the XRPL ecosystem, appealing to developers and entrepreneurs who will soon be able to leverage these expanded features. The smart contracts will be integrated into the XRPL Ethereum Virtual Machine (EVM) sidechain in the coming months, with additional plans to roll them out on the XRPL mainnet. However, no specific timeline has been provided yet.
Simultaneously, Ripple has strengthened its academic partnerships through its University Blockchain Research Initiative (UBRI), welcoming South Korea’s Yonsei University as its latest partner in the Asia Pacific region. This collaboration, part of Ripple’s global initiative now encompassing 58 partners, will support blockchain research with a focus on artificial intelligence, finance, and management. The partnership includes the establishment of an XRP Ledger validator at Yonsei, enhancing the network's security and decentralisation while providing students and faculty with hands-on learning opportunities. Yonsei’s involvement will contribute to the growing credibility of the XRPL, ensuring its neutrality as more respected institutions join the validator network.

Meanwhile, Ripple’s Chief Legal Officer, Stuart Alderoty, raised concerns about the United States Securities and Exchange Commission's (SEC) use of the term “crypto asset security,” questioning its legal grounding. In a recent filing, the SEC referred to the term while addressing plans by the defunct FTX crypto exchange to use stablecoins to repay creditors. Alderoty expressed that the term is not recognised in any statutes, highlighting the complexity of legal discussions surrounding digital assets.

Polygon Transitions from MATIC to POL in Major Step Towards Network Evolution

On Wednesday, Polygon began a significant evolution by transitioning from its longstanding MATIC token to the new POL token, marking a pivotal moment for the Ethereum scaling network. This migration, part of the Polygon 2.0 roadmap, reflects Polygon's vision of becoming an aggregated network of interoperable blockchains. POL will now serve as the native gas and staking token for Polygon's proof-of-stake chain, replacing MATIC while also supporting the network’s future expansion and security.

The POL token has been designed to offer enhanced utility, positioning itself as a "hyperproductive" asset in the ecosystem. Validators will be able to retake POL across multiple blockchains within Polygon’s supernet, earning rewards while contributing to the security of other chains. This transition aims to set the foundation for Polygon’s shift to a zero-knowledge Ethereum Virtual Machine (zkEVM) system, part of its broader goal to enable a network of interoperable, application-specific blockchains known as the "AggLayer."

With a 2% annual emission rate included in the tokenomics, the migration also changes how the token economy functions. Decentralised applications (dApps) are already integrating migration contracts, offering users a seamless way to transition from MATIC to POL. According to Polygon Labs, MATIC holders can migrate at their convenience, as the migration process is set to accommodate gradual user participation.

Recent Developments in Global Cryptocurrency Regulation and Adoption

Qatar is taking a major step in regulating digital assets by introducing a comprehensive framework to foster a secure and transparent ecosystem. The Qatar Financial Centre (QFC), a business hub based in Doha, has unveiled a regulatory policy that sets clear guidelines for the tokenisation of assets, custody arrangements, transfer and exchange protocols, and the legal recognition of smart contracts. The framework, established by the Qatar Financial Centre Authority (QFCA) and the Qatar Financial Centre Regulatory Authority (QFCRA), aims to align with international standards and provide a strong foundation for the digital asset industry within the QFC.

Operating independently from Qatar’s mainland regulations, the QFC offers unique incentives such as 100% foreign ownership, full profit repatriation, and a competitive corporate tax rate of 10% on locally sourced profits. This new digital asset framework is expected to attract foreign investors, developers, and businesses, enhancing trust and confidence among consumers and service providers. Qatar Central Bank Governor Sheikh Bandar bin Mohammed bin Saoud Al Thani hailed the regulations as a critical milestone in advancing Qatar’s “Third Financial Sector Strategy,” emphasising the significant opportunities this could bring to the country’s financial sector.

Meanwhile, in South Korea, the Financial Supervisory Service (FSS) is intensifying its scrutiny of crypto exchanges, launching inspections aimed at detecting suspicious or illegal transactions. The FSS is enforcing stricter regulations, with possible legal consequences for exchanges that fail to comply. This heightened regulatory oversight reflects the country’s commitment to maintaining market order and addressing system deficiencies that may arise within the virtual asset space. As South Korea moves forward with these inspections, it underscores the global trend of tighter regulations in the rapidly evolving cryptocurrency landscape.

Mastercard Expands Crypto Payments with Self-Custodial Wallets

Mastercard is making significant strides in integrating traditional finance with cryptocurrency by expanding support for non-custodial wallets. According to its latest announcement, Mastercard will enable customers to spend their cryptocurrency holdings directly from self-custodial wallets. This collaboration follows the recent pilot of a crypto debit card with MetaMask, another self-custodial wallet which introduces a euro-denominated debit card that allows users to spend cryptocurrencies like Bitcoin at more than 100 million merchants within Mastercard’s network. This initiative supports the growing trend of self-custody in crypto, allowing individuals to manage their digital assets without reliance on centralised platforms. It further emphasises Mastercard’s commitment to driving crypto self-custody adoption.

Meanwhile, UBD Network has launched DeTrust Wallet, a multi-signature wallet that introduces complex functions, such as crypto inheritance plans. The DeTrust Wallet aims to solve a critical issue for high-net-worth families by enabling decentralised trusts and inheritance planning within the platform. According to UBD Network’s CEO, Ruslan Tugushev, this solution offers a secure and cost-effective way for customers to ensure their digital assets can be inherited, addressing concerns highlighted by a survey from Penguin Analytics, which found that nearly half of high-net-worth family capital founders are worried about how their assets will be passed on to future generations.

Mastercard's initiative and DeTrust Wallet’s new features reflect the growing demand for decentralised financial solutions, whether for everyday transactions or long-term asset planning, as the traditional and crypto worlds continue to converge.