Hey there, PoI readers! 💫

It's your favorite crypto connoisseur, Mochi, back with another serving of tantalizing tech and web3 news. From Strategy's never-ending Bitcoin appetite and Elon's encryption education to Metaplanet's corporate climbing spree and CZ's dark pool dreams, we've got a lot to unpack. So, buckle up and get ready for a wild ride through the wonderland of digital assets!

INTEL BRIEF

🟧 Michael Saylor hints at another Bitcoin purchase as Strategy continues week 8 of accumulation, though skepticism grows about their actual holdings.

🟧 Elon Musk says XChat will have "Bitcoin-style encryption," but Bitcoin developers quickly correct that Bitcoin doesn't use encryption.

🟧 Metaplanet becomes 8th largest corporate Bitcoin holder after buying 1,088 BTC for $117.9 million, totaling 8,888 BTC.

🟧 Binance co-founder CZ proposes dark pool DEXs to protect traders from front-running after $100M liquidation hunt on Hyperliquid.

Strategy's Bitcoin Buying Spree Continues as Saylor Drops Orange Hints

The Strategy co-founder just dropped what might be the most cryptic yet obvious hint in crypto history by posting a Bitcoin chart and declaring "Orange is my preferred color" to his 4.4 million X followers. And honestly? At this point, Saylor's love for orange is about as subtle as a neon sign in Times Square.

This marks week eight of Strategy's latest Bitcoin buying marathon, because apparently when you're up over $20 billion in unrealized gains, why stop now? Their most recent shopping spree on May 26 added 4,020 BTC (worth roughly $427 million at the time) to their already massive pile, bringing their total stash to a whopping 580,250 BTC.

To put that in perspective, Strategy now holds more Bitcoin than the US and Chinese governments combined. Yeah, you read that right – a single company is out-HODLing entire superpowers.

The company has essentially become the Bitcoin proxy play for traders who want exposure without actually buying the orange coin directly. And according to CryptoQuant analyst Ki Young Ju, this institutional vacuum cleaner approach is already shaking up market dynamics. Sygnum Bank executives are even whispering about potential supply shocks that could send BTC prices into the stratosphere.

But here's where things get spicy – not everyone's buying what Saylor's selling. A growing chorus of skeptics is demanding proof of reserves, basically asking Strategy to show their crypto homework. One particularly salty commenter called out Saylor's approach as a "trust me bro" situation, questioning whether the company actually holds real Bitcoin or just "paper Bitcoin."

Saylor's defense? He argues that proof-of-reserve audits are too risky for big institutions because they make wallets trackable by potential threat actors. Fair point, but it's creating quite the transparency versus security debate in the space.

Strategy continues week 8 of Bitcoin buying, now holding 580,250 BTC worth over $20B in gains

Data Company holds more Bitcoin than US and Chinese governments combined

Growing skepticism about whether Strategy actually owns all the Bitcoin they claim, with calls for proof of reserves

Elon Musk's Crypto Terminology Gets a Reality Check from Bitcoin Twitter

Elon Musk just gave the Bitcoin community another reason to collectively facepalm by announcing that X's shiny new messaging feature, XChat, will have "Bitcoin-style encryption." And let me tell you, the Bitcoin purists came out swinging faster than you can say "not your keys, not your crypto!"

XChat is X's upgraded direct messaging system that's supposed to be the Swiss Army knife of communication – think audio and video calls, vanishing messages, file sharing, and yes, encryption. Built on the Rust programming language, Musk described it as having a "whole new architecture" with that infamous Bitcoin-style encryption comment that sent crypto Twitter into educator mode.

Bitcoin doesn't actually use encryption in the traditional sense! JAN3 CEO Samson Mow was quick to point out this little detail, while crypto influencer "Pledditor" jumped in to clarify that Bitcoin uses elliptic curve cryptography instead. Even Bitcoin core developer Luke Dashjr couldn't resist chiming in, not only correcting Musk but also throwing shade at the Rust language choice for security reasons.

BitMEX Research tried to give Musk the benefit of the doubt, speculating he might be referring to BIP-151 peer-to-peer communication encryption – basically a Bitcoin improvement proposal for encrypting node data.

For those keeping score at home, Bitcoin's security comes from mathematical wizardry involving private and public keys on an elliptic curve where the math only works one way, plus SHA-256 hashing for transaction validation. It's cryptographically secure without being "encrypted" in the messaging app sense.

XChat is currently rolling out to paid subscribers with a four-digit passcode, while Musk also confirmed that X Money – the platform's payments feature – is in the works for a limited beta launch later this year. The grand plan? Transform X into an "everything app" that can rival Telegram, Signal, Venmo, and Cash App all at once.

X launches XChat messaging with claimed "Bitcoin-style encryption," built on Rust programming language

Bitcoin developers quickly corrected Musk that Bitcoin doesn't use encryption but rather elliptic curve cryptography

X Money payments feature also in development for beta launch later this year as part of Musk's "everything app" vision

Metaplanet's Bitcoin Shopping Spree Makes Them Asia's Crypto Champion

Metaplanet just pulled a serious power move in the corporate Bitcoin game, catapulting themselves into the 8th spot on the global leaderboard of corporate HODLers. The Japanese investment company just casually dropped $117.9 million on 1,088 Bitcoin at an average price of $108,400 per coin. Because apparently, buying Bitcoin above $100K is the new flex these days!

This latest shopping spree brings Metaplanet's total stash to a mystical 8,888 BTC. They've officially leapfrogged both Galaxy Digital Holdings with their measly 8,100 BTC and Block Inc. sitting at 8,485 BTC. Talk about climbing the corporate crypto ladder faster than a caffeinated trader during a bull run!

What's particularly spicy about this move is the timing and price point. When companies are willing to buy Bitcoin at six-figure prices, it screams institutional confidence louder than a Bitcoin maximalist at a dinner party. And let's be real – this is happening while Japan's bond markets are looking shakier than a house of cards in an earthquake.

André Dragosch from Bitwise Asset Management is practically doing backflips over this development, telling anyone who'll listen that ongoing financial instability could rocket Bitcoin to new highs by year's end. He's even throwing around a $200,000 price target based on current G20 sovereign bond default probabilities. That's some serious hopium right there!

Bitcoin recently hit an all-time high of over $112,000 on May 22 before cooling off to around $105,464. Bitfinex analysts are calling this consolidation "healthy" and a foundation for the next leg up, as long as Bitcoin stays above that crucial $95,000 short-term holder cost basis.

However, not everyone's popping champagne bottles. Some analysts are raising eyebrows about potential bubble territory around Bitcoin proxy stocks. Get this – Metaplanet's Bitcoin premium has ballooned to a whopping $596,000, meaning stockholders are essentially paying five times the actual BTC price through their stock exposure. That's either galaxy-brain investing or peak bubble behavior – you decide!

Metaplanet becomes 8th largest corporate Bitcoin holder with 8,888 BTC after $117.9M purchase

Company surpassed Galaxy Digital and Block Inc. with aggressive buying above $100K per Bitcoin

Analysts see potential for $200K Bitcoin amid bond market instability, but warn of bubble risks in proxy stocks

CZ Wants to Build Secret Trading Pools to Protect Whales from Crypto Vultures

Changpeng "CZ" Zhao just dropped a bombshell idea that has the DeFi world scratching their heads and reaching for their cryptography textbooks. The Binance co-founder is calling for dark pool perpetual DEXs after witnessing what can only be described as a digital feeding frenzy on Hyperliquid.

The drama started when a trader known as James Wynn got absolutely rekt to the tune of nearly $100 million in Bitcoin long positions when BTC dipped below $105,000. But here's where it gets spicy – rumors swirled that some users literally coordinated to "hunt" Wynn's liquidation. Talk about turning trading into a team sport! There were even unconfirmed whispers that Tron's Justin Sun wanted in on the action, and someone allegedly tried to invite Eric Trump to the liquidation party. Because nothing says "sophisticated trading strategy" like sliding into a Trump's DMs!

CZ's solution? Hide the orders, hide the pain! He's puzzled why everyone can see your trades in real-time on DEXs, especially when you're trying to move $1 billion worth of crypto without painting a giant target on your back. In traditional finance, dark pools handle orders 10 times bigger than transparent ones, so why shouldn't crypto get the same privacy treatment?

But implementing decentralized dark pools isn't exactly a weekend coding project. We're talking about some seriously complex cryptographic wizardry here. Philipp Zentner from Li.Fi explains that these systems "replace the human broker with cryptography" using zero-knowledge proofs and multiparty computation. Projects like Renegade on Arbitrum are already encrypting orders and posting ZK-proofs, while Penumbra in Cosmos runs sealed-bid batch auctions where only the net flow goes public.

Maria Carola from StealthEX highlights the fundamental challenge: achieving both privacy and verifiability. She's betting on zk-SNARKs or zk-STARKs to validate trades without spilling the tea on trade details. Meanwhile, 0xAw from Alien Base points out that while building dark pools isn't technically impossible, making the data truly hidden is like playing whack-a-mole with potential data leaks.

CZ argues that privacy is crucial in derivatives markets because visible liquidation levels turn large traders into sitting ducks. As he puts it: "Even if you got a billion dollars, others can gang up on you." It's like poker, but everyone can see your cards and your bank account!

Of course, there's a flip side. Transparency helps market makers absorb large orders, and as Carola notes, "opacity is a double-edged sword" – it stops front-running but can also hide manipulation attempts. The solution? Adaptive risk engines and behavioral anomaly detection with cryptographic accountability baked right in.

CZ proposes dark pool perp DEXs after $100M liquidation hunting incident on Hyperliquid

Implementation requires complex cryptography like zk-proofs and encrypted order matching

Privacy vs. transparency trade-off: protects large traders but could obscure manipulation attempts

And that's a wrap, my lovely PoI readers! 💎 I hope this edition left you feeling informed, entertained, and maybe even a little bit richer (in knowledge, of course). From corporate Bitcoin accumulation wars to the great encryption terminology debate, today's crypto landscape continues to surprise and delight us all. Remember to stay curious, stay informed, and keep spreading the love. Until next time, this is Mochi, signing off with a virtual high-five!

P.S. Don't forget to share your thoughts, questions, and favorite crypto puns with us. very voice matters in the PoI community! 📣❤️ Share the newsletter

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