$100B loophole exposed by DOGE
Robinhood crypto revenue up 700%
DOGE Exposes $100B Loophole: Coinbase CEO Demands Blockchain Overhaul for U.S Treasury
- OGE saves $36B, pushing for blockchain in government spending.
- Musk uncovers $100B loophole, seeks transparency through blockchain.
- Coinbase’s Armstrong supports blockchain to audit government payments.
Elon Musk’s Department of Government Efficiency (DOGE) has made waves by saving U.S. taxpayers $36 billion in mere weeks. This initiative aims to transform the future of government spending through blockchain technology.
DOGE Launches A New Era for Government Operations
The Department of Government Efficiency launched by Elon Musk has saved US taxpayers $36.7 billion according to reports. The program seeks to reduce U.S. government spending by $2 trillion with its first savings at 1.8% of the target. After achieving notable results Coinbase CEO Brian Armstrong advocates for using blockchain technology to help make government spending more transparent.
In a recent social media post, Armstrong expressed approval of the progress of the DOGE initiative. He emphasized the potential benefits of using blockchain to track every government expenditure. Armstrong believed blockchain technology would allow public authorities to verify spending faster using real-time data during audits.
Blockchain enables anyone online to view data from a decentralized public record. This structured approach would transform how governments track and audit their financial expenses. Armstrong’s views support Elon Musk’s objectives to limit government bureaucracy and enhance accountability through technology.
Musk Uncovers $100B Loophole
The DOGE program by Musk achieved results that extend beyond cost savings for tax-supported agencies. The agency found a $100 billion space where government funds get wasted every year. Payments under Social Security exist for people who have no official identification numbers in the system. This creates an opportunity for scams.
According to DOGE analysis, 50% of all payments appear to be fraudulent which represents $50 billion of wasted money. Musk’s team takes fast action by demanding better control over money transactions and payment classification. The initiative seeks to improve federal spending practices both in terms of performance and fraud prevention.
Many people support Musk’s demand for enhanced financial auditing and better payment classification. The reform package requires public entities to report their payment types accurately and more frequent updates to the “DO-NOT-PAY” list. These measures target money leaks and improve financial oversight across federal programs.
DOGE’s Ambitious Blockchain Transformation
Musk’s idea to shift U.S Treasury operations to blockchain has attracted increased interest. Experts believe setting up this blockchain framework would put the US ahead as the leading blockchain innovator worldwide. Smardex co-founder Jean Rausis thinks decentralized infrastructure will unite features from Web2 and Web3 platforms.
DOGE has shown considerable potential for blockchain’s role in government efficiency. The agency has saved billions in under three weeks since its launch and seeks to reduce government spending and improve efficiency until July 4, 2026.
Musk’s agency aims to execute these reforms before the 250th anniversary of the U.S Declaration of Independence. The last part of DOGE’s strategy aims to develop a new government system that works better with less bureaucracy. These successful completion of the project will demonstrate how blockchain technology can transform government operations.
Solana’s SOL Could Hit $520 by 2025-End, VanEck Says
Investment firm VanEck predicts Solana’s SOL will touch $520 by the end of 2025 as the demand for smart contract platforms (SCP) grows and M2 money supply increases in the coming months.
M2 money supply measures how much money is circulating in the U.S. economy, which tends to influence the crypto market. M2 money supply includes cash, checking deposits, and easily convertible near money like savings deposits and money market funds.
VanEck predicts M2 money supply will grow to $22.3 trillion by 2025 from the current $21.5 trillion. When central banks increase M2 by lowering interest rates or through quantitative easing, more money enters circulation, leading to more liquidity in the economy and encouraging investments in risk assets, such as cryptocurrencies.
On the other hand, the SCP market is where platforms like Solana operate, allowing for the creation and execution of smart contracts — which VanEck estimates could grow by 43% to reach $1.1 trillion by the end of 2025.
Currently, Solana holds about 15% of this market, but VanEck expects this will rise to 22% by the end of 2025.
“We forecast its share to rise to 22% by EOY 2025,” VanEck said in the Friday post. “This projection is supported by Solana’s developer dominance, increasing market share in DEX volumes, revenues, and active users.”
“Using an autoregressive (AR) forecast model, we estimate Solana’s market cap will reach ~$250B, implying a SOL price of $520 based on ~486M floating tokens,” it added. An autoregressive (AR) forecast model looks at past data to predict future values.
VanEck is among a bunch of U.S. firms that filed for a Solana ETF in 2024. Previously, the U.S. Securities and Exchange Commission (SEC) had previously refused to acknowledge several applications for ETFs tracking SOL and had told Cboe to take down its previously uploaded 19b-4s for those ETFs.
However, in a shift of tone on Thursday, the SEC acknowledged a filing by Grayscale for its SOL ETF, meaning that the commission now has until October to approve or deny the application.
The gaming studio Gumi invests 1 billion yen in Bitcoin: a strategic move in the gaming sector
Why did Gumi choose Bitcoin?
Founded in 2007, Gumi is one of the leading Japanese companies in the mobile gaming sector. The company has developed successful titles and has collaborated with major global partners.
The purchase of Bitcoin represents a significant step in his financial diversification strategy.
The company has stated that this decision is motivated by the growing importance of cryptocurrencies in the technological and financial sector.
The acquisition of 1 billion yen in Bitcoin suggests a long-term vision, in which digital assets could play a key role in the corporate economy.
The value of Bitcoin as an alternative asset has been recognized by numerous companies worldwide. The cryptocurrency is often considered a store of value, especially in a context of economic uncertainty and inflation.
For Gumi, the investment could offer several advantages:
- Financial diversification: holding Bitcoin can protect the company from currency fluctuations and risks related to traditional markets.
- Growth opportunities: the gaming sector and cryptocurrencies are increasingly interconnected, with the rise of NFTs and blockchain-based games.
- Strategic positioning: adopting digital assets could foster new collaborations and innovative business models.
Japan is one of the most advanced countries in the regolamentazione of cryptocurrencies. The Financial Services Agency (FSA) oversees the sector, ensuring a safe environment for investors.
The purchase of Bitcoin by a company listed in Tokyo could encourage other Japanese companies to consider similar strategies. The local market has already seen a growing interest in cryptocurrencies, with numerous regulated exchanges and initiatives in the blockchain sector.
Gaming and blockchain: an evolving bull
The acquisition of Bitcoin by Gumi fits into a broader context of convergence between gaming and blockchain. Games based on NFT and play-to-earn platforms are transforming the sector, offering new monetization opportunities for companies and players.
Some game studios are already implementing digital assets in their virtual economies. Gumi, with its investment in Bitcoin, could explore new models that integrate cryptocurrencies into their titles or payment systems.
The purchase of 1 billion yen in Bitcoin by Gumi represents a strategic choice that reflects the evolution of the technological and financial sector. This move could influence other Japanese companies and strengthen the interconnection between gaming and digital assets.
With the growing adoption of cryptocurrencies, it will be interesting to see how Gumi will leverage this investment in the long term and if other companies will follow this example.
SEC requests a pause in legal battle with Binance as the agency adapts a crypto-friendly stance
The U.S. Securities and Exchange Commission is seeking to pause its high-profile lawsuit against the cryptocurrency exchange Binance as the regulator tries to present itself as more crypto-friendly under a new administration.
Binance and the SEC filed a joint motion Monday asking for a 60-day stay in a lawsuit the regulator filed with significant fanfare two years ago under its previous chairman, Gary Gensler.
Monday’s filing in the U.S. District Court for the District of Columbia said the SEC approached Binance asking for the pause. The regulator said the work of a new crypto task force launched by Acting Chairman Mark Uyeda that’s supposed to improve ties to the crypto industry “may impact and facilitate the potential resolution of this case.”
The filing is the first “tangible action in existing enforcement actions that recognizes a change in direction of the agency,” said Carol Goforth, a distinguished professor at the University of Arkansas School of Law.
Binance is the world’s largest cryptocurrency exchange – a digital marketplace where customers can buy, sell and store different types of crypto — and the SEC’s lawsuit drew considerable attention when first filed.
Gensler said in a statement at the time that Binance and its founder, Changpeng Zhao, had engaged in an extensive “web of deception” while the SEC’s X account posted a graphic highlighting a key piece of evidence of alleged wrongdoing: a quote from Binance’s chief compliance officer saying to another employee in 2018, “We are operating as a fking unlicensed securities exchange in the USA bro.”
In a separate case, Binance later agreed to pay a roughly $4 billion settlement and Zhao pleaded guilty to a felony related to his failure to prevent money laundering on the platform.
A key issue facing the cryptocurrency industry is whether certain digital assets should be regulated as securities – a position that the SEC under Gensler supported while many in the crypto industry are opposed.
Cryptocurrencies are a kind of electronic cash that have moved from the financial fringes to the mainstream in rapid fits and starts, despite being marred by scandals and market meltdowns.
The SEC has targeted crypto exchanges like Binance, Coinbase and others for allegedly operating unregistered securities exchanges. That scrutiny came after the high-profile meltdown of FTX, the exchange founded by disgraced crypto mogul Sam Bankman-Fried.
The industry said it was unfairly treated by the Biden administration, and Gensler in particular, and spent heavily to help Trump and Republicans in the last election. Trump and GOP lawmakers have signaled their eagerness to help the crypto industry with friendly legislation and light-touch regulations.
Robinhood’s Crypto Revenue Soars 700% in Q4, Driving Record Profit
Robinhood Markets reported a 700% surge in cryptocurrency trading revenue in the fourth quarter, helping the retail brokerage post record profitability as digital asset volumes rebounded.
Crypto revenue reached $358 million, up from $45 million a year earlier, accounting for more than one-third of total transaction-based revenue, which rose over 200% to $672 million.
The trading boom pushed total Q4 revenue up 115% year-over-year to $1.01 billion, while net income soared more than tenfold to $916 million, according to the company’s latest figures.
Robinhood is deepening its presence in crypto, announcing in June a deal to acquire Bitstamp for $200 million, one of the world’s oldest crypto exchanges, in a move to expand its international footprint.
The company also rolled out Ethereum staking in the EU and listed seven new tokens in the U.S. last quarter. That figure is expected to “accelerate” this year, CEO Vladimir Tenev said in the company’s earnings call on Wednesday.
“What I am perhaps most excited about is tokenization,” Tenev said, referring to a sector of the crypto economy that seeks to place real-world assets on-chain in a bid to boost efficiency and streamline liquidity.
“I think Robinhood is uniquely positioned at the intersection of traditional finance and DeFi,” Tenev said, referring to the company’s plans to tokenize equities, private investment, and “more.”
The sector, which grew 52% last year to $12 billion, excluding stablecoins, is expected to continue to swell, with some projections forecasting $50 billion this year.
The resurgence in crypto trading comes amid a broad market recovery, with Bitcoin (BTC) more than doubling in 2024 before surpassing $100,000 in late December, while Ethereum (ETH) gained 71.5% last year.
As a result, Robinhood’s crypto notional trading volume surged over 400% to $71 billion in the quarter, reflecting increased activity as investors sought to capitalize on shifting macro tailwinds in the form of U.S. crypto exchange-traded funds and a changing political landscape under President Donald Trump.
Beyond crypto, Robinhood is betting on international growth and product expansion, including plans to launch in Asia-Pacific in 2025 with Singapore as its regional hub.
The firm is also expanding its options and futures trading products, targeting active traders.
Assets under custody (AUC) jumped 88% to $193 billion, fueled by $16 billion in net deposits during the quarter. Robinhood also reported 2.6 million Gold subscribers, up 86% year-over-year.
Shares of Robinhood have rallied over 365% in the past year, driven by its return to profitability and a surge in trading activity, particularly in crypto.
Shares were up 4.8% to $55.91 by the closing bell and a further 17% to $65.45 in after-hours trading.
