hodler

19 May 2026, 21:25

Vitalik Buterin Says AI Could Strengthen Crypto Security

Vitalik Buterin, the co-founder of Ethereum, has responded to increasing concerns that AI-based bug hunting will overwhelm developers and create non-stop exploitation opportunities on blockchains. According to him, in the near future, the use of this technology might actually make crypto systems more secure. He says that AI-assisted formal verification may become one of the strongest defenses against security failures in crypto and internet infrastructure. AI Could Strengthen Security Instead of Breaking It Formal verification is the practice of writing mathematical proofs about software that a computer can automatically verify instead of people reviewing them. This concept has been available for decades; however, it has never caught on because generating such proofs manually was rather tedious for software developers, so many of them never bothered. Now, Buterin is saying that AI has changed this equation, and instead of developers writing the proofs themselves, they can ask an AI to write both the code and accompanying proofs. They then simply check that the final statement proved is actually the thing they wanted to prove. The developer described a scenario where AI models become powerful enough to automate finding bugs in existing code and then asked what that would mean for systems where a single flaw can cost users everything. His answer was that formal verification, done end-to-end, lets you mathematically prove that a piece of code behaves exactly as intended, so that a sufficiently powerful AI looking for flaws would be looking at code that has already been proven not to have them. He also called out specific Ethereum infrastructure projects where this approach is already being attempted. One of them is Arklib, which is working toward a fully formally verified STARK implementation. Another is evm-asm, which is building an EVM written in low-level RISC-V assembly and verifying its correctness against a human-readable reference implementation. On the question of which AI models are actually useful for this, Buterin said he found Claude and Deepseek 4 Pro both sufficient for writing Lean proofs. He also flagged Leanstral, a smaller open-weights model fine-tuned specifically for Lean, as capable of running locally and outperforming much larger general-purpose models on formal verification benchmarks. But There Are Limitations Despite his enthusiasm for formal verification, Buterin also devoted a substantial part of his essay to explaining the ways it has failed in practice. This includes bugs in verified compilers; libraries where only part of the code was proven, and the unproven parts turned out to be the problem; and specifications that were technically proven but simply did not capture what the developer actually wanted to guarantee. However, his broader framing is that formal verification is not a replacement for all security practices but one powerful tool in a longer-running trend toward fewer bugs per line of code. The background is relevant here, considering that on the day Buterin’s post appeared, the crypto sector was reeling from a third major exploit in just four days after a hacker made off with more than $76 million worth of crypto from the cross-chain bridge of the Echo Protocol. Days earlier, reports emerged regarding a hack on THORChain, which cost the platform more than $10 million. Another attack happened after that one, targeting the Verus-Ethereum Bridge, whereby a hacker took advantage of the lack of a validation check to steal $11.58 million. That is the kind of specific, localized flaw that a formal proof check may have caught. The post Vitalik Buterin Says AI Could Strengthen Crypto Security appeared first on CryptoPotato .

19 May 2026, 21:24

XRP Ledger Announces Quantum-Era Partnership: Project Eleven Teams With Ripple

Project Eleven, a company focused on post-quantum cryptography, said Tuesday that it has partnered with Ripple to support post-quantum readiness on the XRP Ledger (XRPL) blockchain. The announcement arrives amid intensifying concern across the crypto sector over the security of the cryptographic systems used by major networks like Bitcoin (BTC), as advances in quantum computing raise the possibility that sufficiently powerful quantum machines could eventually threaten the cryptographic foundations. XRP Ledger Targets Quantum Readiness As outlined in Project Eleven’s disclosure , the work with XRPL will begin with a comprehensive assessment of key parts of the network. The partnership plans to conduct a full audit covering XRPL’s validator, custody, networking, and wallet layers to identify potential quantum-related vulnerabilities. After the audit phase, the parties plan to move toward deployment of hybrid signatures. In practice, that means adding quantum-resistant cryptography on top of existing standards rather than relying solely on older mechanisms. The announcement also points to the development of a quantum-secure custody wallet prototype, with Project Eleven expected to contribute working code, real performance data, and an implementation path that can lead to production. Ayo Akinyele, Head of Engineering at RippleX, said the quantum risk should not be treated as speculative. He described the threat as an engineering challenge with a clear timeline and emphasized that the blockchain is not starting from zero. Hybrid Security Path In his remarks, Akinyele highlighted capabilities already present on the network, including key rotation and a validator network designed to coordinate upgrades at scale. He added that working with Project Eleven is intended to accelerate testing and implementation while adding rigor across the stack. The stated objective, he said, is to reach production readiness well before “Q Day,” rather than scrambling when the risk becomes immediate. XRPL also weighed in on the announcement via X, saying the ledger is “built for the Quantum Era.” The network described its design as running on a native account-based architecture that includes built-in key rotation. According to XRPL, this structure allows users and organizations to shift to quantum-resistant signatures without changing the r-addresses their customers already recognize and trust. The ledger said it expects Project Eleven to complete the planned audit of the XRPL network, wallets, and validator layer ahead of deploying quantum-resistant cryptography, framing the effort as a step-by-step move toward stronger security across the system. Featured image created with OpenArt, chart from TradingView.com

19 May 2026, 21:21

MSBT: There's A New Kid On The Block

Summary The Bitcoin ETF concept is explored, focusing on its potential impact on cryptocurrency markets. The article discusses the structure and appeal of cryptocurrency ETFs for investors seeking exposure. Key considerations include the regulatory environment, liquidity, and tracking accuracy of Bitcoin ETFs. The investment thesis centers on ETFs as a bridge between traditional finance and digital assets. It's important for all investors to seek out the ETFs, mutual funds, or other investment vehicles that provide them with the best value, without sacrificing other elements like transparency, scale, and reputation. On April 8, 2026, Morgan Stanley became the first major U.S. bank to launch their own Bitcoin spot ETF, Morgan Stanley Bitcoin Trust ( MSBT ), which may offer investors the best deal on the market in regard to direct Bitcoin exposure. This ETF stores its Bitcoin in institutional-grade custody, with Coinbase Custody Trust Company, LLC serving as the custodian and prime broker. Now over a month old, we have had the chance to see what this ETF can do. It has increased in value by over 12% during its first month and is currently up 7.72% since its launch at the time of this writing. It appears to be delivering on its objective, which is to " track the performance of bitcoin, as measured by the CoinDesk Bitcoin Benchmark Rate (the Pricing Benchmark), adjusted for the Trust's expenses and other liabilities." This benchmark is calculated based on an aggregation of executed trade flow from major Bitcoin spot exchanges. And it's doing so at no cost, without any fees. There will be no fee at all on the first $5 billion for the first six months (after the April 8th launch). Currently, their assets under management total $233 million and are growing but are still far below the $5 billion limit that would trigger an expense ratio to begin. We have five more months of zero expenses on this product. After the first six months, the long-term expense ratio is expected to be 0.14% , which would be the lowest expense ratio of any spot Bitcoin ETF on the market. When a competitor offers the same or a similar deal for a lower price, that has to be worthy of consideration. Competitors that charge a higher expense ratio need not be ruled out, but it's important to understand what benefit you are getting by paying a higher expense ratio. Sometimes that benefit is simply the brand and reputation of the company, the size and scale of the ETF, the liquidity, and/or the level of transparency disclosed in the product or service. Current investors in and providers of ETFs utilizing Bitcoin spot, such as BlackRock, Inc. (BLK) through the iShares Bitcoin Trust ETF ( IBIT ), Fidelity through the Fidelity Wise Origin Bitcoin Fund ETF ( FBTC ), Vaneck through the VanEck Bitcoin ETF ( HODL ), and the Grayscale Bitcoin Trust ( GBTC ) as well as the Grayscale Bitcoin Mini Trust ( BTC ), may want to consider diversifying, changing current investments, or at least directing new investments to MSBT in order to take advantage of the cost savings on the expense ratio. The largest Bitcoin ETFs, IBIT and FBTC, have an expense ratio of 0.25%. MSBT's closest competition (in terms of providing a low expense ratio) would be Grayscale's Bitcoin Mini Trust, BTC ETF, charging 0.15%. While it may not sound like much of a difference, every little bit may add up over time. Those who invest directly in Bitcoin ( BTC-USD ) itself (as opposed to an ETF) may also want to consider MSBT as an option, as investing in Bitcoin directly, in just about any platform, always comes with some sort of expense, whether it be through transaction fees or bid-ask spreads. Forward-Looking View: Bullish Given higher-peer expense ratios and Morgan Stanley's size, scale, and reputation as a company, along with current trends in the Bitcoin and Crypto industry marking increased adoption worldwide, it is my view that MSBT will retain and grow its assets over the long term. My recommendation is to buy and hold MSBT over the next several years. It is a new and very valuable tool for tracking Bitcoin's returns at an unmatched cost savings. It might even be the beginning of a whole new trend in the banking industry that changes the scope and demand for Bitcoin going forward. Due to high-net-worth demand, it's very likely that even small allocation percentages from Morgan Stanley wealth management could generate billions in assets under management for MSBT. More Than Just One New Financial Product: A Very Loud Signal of Change and Acceptance: The launch of MSBT may indicate a firm-wide view that digital assets are a permanent part, and increasingly growing part, of the investment landscape. This move by Morgan Stanley may actually represent a major turning point in how Wall Street and the Banking industry view Bitcoin, being the first bank to do this (although technically, SoFi Technologies, Inc. (SOFI), through SoFi Bank, was the first to allow crypto trading, Morgan Stanley is the first to offer this in the form of an ETF with a built-in-house product.) For the first decade of Bitcoin's existence, the relationship between Wall Street and Bitcoin was largely "one of skepticism, mockery, or outright hostility." That relationship has changed to one where Bitcoin is taken far more seriously and considered to be much more mainstream, even by the most regulated entities in the financial system. When an asset manager like BlackRock launches a Bitcoin ETF, they're saying they believe there's client demand for the product and are seeking to capitalize on a share of that demand. However, when a major commercial U.S. bank like Morgan Stanley does this, "they're saying something additional and more profound." Given how tightly regulated the commercial banks are, when they launch Bitcoin ETFs, they're saying that they're comfortable enough with Bitcoin as an asset class to put their credibility, reputation, institutional brand, and regulatory relationships on the line to support it. That's a major sign of confidence in Bitcoin. With Morgan Stanley being the first major U.S. bank to do this, it may open the door to many more banks following suit. This may very well create competitive pressure for every major commercial U.S. bank to offer something similar or risk losing clients. MSBT has proven that there is clear, organic, client-driven demand for this product, as it generated $233 million in AUM before Morgan Stanley's 16,000 financial advisors were even cleared to recommend it. Risks and Concerns to Consider Being this new and this small, MSBT is still at a relatively low trading volume, at least for the moment, potentially creating a slightly wider bid-ask spread than your typical Bitcoin spot ETF. This could potentially cost investors more than what they might save in expense ratios. However, Morgan Stanley is a very large company, valued at over $300 billion; they are larger than BlackRock in market valuation (despite having fewer assets under management than BlackRock). I expect that this trading volume will improve over time with a company of this size and scale. Although it may struggle to grow at the same speed and pace as IBIT and FBTC did, due to the lack of first-mover advantage. Another risk to consider is that, while all the major Bitcoin spot ETFs should have nearly identical performance, there will still be small differences. In the first month of MSBT's existence (April 8th to May 8th, 2026), IBIT outperformed MSBT (12.44% to 12.41%). But MSBT can also outperform over some timeframes, as it did from May 1st to May 8th (2.27% to 2.20%) and from launch to present (7.72% to 7.69%). So there will be small variations in performance that may or may not take away the cost savings from MSBT's lower expense ratio. Taxes: If selling one Bitcoin ETF to buy another (in a regular, non-retirement brokerage account), it would implicate owing more in capital gains taxes; that may be a reason to leave current investments in place while perhaps exploring new options for future investments with new income coming in. Regulation: Banks are placed under a much higher level of scrutiny than just regular asset managers. While I tend to view this as a good thing, as it ensures transparency, integrity, and client protection, I also recognize that satisfying regulatory policies, under increased scrutiny, can also make it harder for banks to offer innovative and practical investment vehicles to their clients. And there's also the risk with Bitcoin's performance in general, being a very volatile asset (although the main focus of this article is comparing MSBT to other direct Bitcoin investment alternatives). MSBT and the Near Future of Bitcoin I do believe that Bitcoin has a lot of tailwinds going for it, such as the pending legislation of the Crypto Clarity Act, which many ETF managers have said could " expedite the institutional adoption of crypto investing. " While I am very bullish on Bitcoin in general, I do recognize that volatility can be quite high, as it has suffered a 50% correction recently (from a high of $126,000 to a low of $60,000). I expect potentially a lot of short-term volatility, which shouldn't raise that much alarm, as this is how Bitcoin tends to behave sometimes. Regarding the near future, I believe a lot of attention will be given to the Crypto Clarity Act, which has recently passed Senate markup, advancing out of the Senate Banking Committee with bipartisan support. While timeline estimates vary, it is expected that it may be brought to a Senate floor vote sometime in mid-to-late June, reconciled with the House of Representatives in July, and, with any luck, be signed into law in early August. Regardless of short-term volatility that may persist during this process, I believe the Clarity Act will provide very bullish news for Bitcoin and propel MSBT to much higher levels over the next few years. It serves as a very positive catalyst that will bring stronger institutional inflows, remove regulatory risk premiums, expand custody and integration, and supercharge ETF demand. Institutional demand will be much higher when the rules and regulations are spelled out more clearly, and this will be a giant net positive for the industry as a whole. MSBT should see solid gains as a direct result of the Clarity Act passing. I'm not certain of the timing; when, at what point during this process, or even after this process is over, will those gains start to take place? But I do believe significant Bitcoin gains will result from this process, nonetheless. Summary Perhaps the biggest advantage IBIT has over MSBT is its current size and scale, largely stemming from its first-mover advantage. Some analysts predict that MSBT may actually overtake and surpass IBIT in market share someday. That may happen, although I'm skeptical of that being the case. If that does happen, it won't be for many years. On the contrary, other big names in the Bitcoin investing community seem to view that IBIT will remain the most dominant ETF in the space. It's nice to have a new product that offers something we haven't quite seen before. A 0.14% long-term expense ratio is certainly appealing and helpful to low-cost investors. A temporary 0% expense ratio is also a nice bonus to that. But concerns remain over MSBT's ability to scale at a high level, and some investors may view IBIT and FBTC as safer vehicles to park their funds. While I am not necessarily recommending Bitcoin investors to place 100% of their Bitcoin holdings into MSBT, I do believe MSBT should hold a place, among other Bitcoin ETFs, in a diversified portfolio.

19 May 2026, 21:20

Whale With $24.79 Million Track Record Opens $21 Million in Longs Across Bitcoin, Ether, and Dogecoin

A tracked onchain wallet known for a $24.79 million profit record just placed $21 million in simultaneous long positions on bitcoin, ether, and dogecoin. They then proceeded to add more of the same via limit orders. One Wallet, Three Assets, Three Hours Onchain intelligence platform Lookonchain tracked wallet 0x152e opening a series of long positions

19 May 2026, 21:20

Ripple and XRPL Foundation Partner with Project Eleven to Address Quantum Computing Threat

BitcoinWorld Ripple and XRPL Foundation Partner with Project Eleven to Address Quantum Computing Threat Ripple and the XRPL Foundation have taken a concrete step toward safeguarding the XRP Ledger (XRPL) against the emerging threat of quantum computing. The two organizations have partnered with cryptography firm Project Eleven to begin transitioning the network to a quantum-resistant cryptographic system, according to a report from U.Today. First Steps Toward Quantum-Resistant XRPL Project Eleven has completed a detailed vulnerability assessment across the XRPL’s validator, custody, network, and wallet layers. This initial audit is the first phase of a broader initiative to identify and address potential weaknesses that could be exploited by future quantum computers, which have the theoretical power to break current cryptographic standards. The partnership represents a proactive move by Ripple and the XRPL Foundation to future-proof the ledger. While quantum computing remains in its early stages, experts warn that the technology could eventually render widely used encryption methods obsolete, posing a significant risk to blockchain networks and digital assets. Hybrid Signatures as a Bridge Solution As part of the project, Project Eleven will introduce hybrid signatures, a cryptographic method that layers quantum-resistant algorithms on top of existing security standards. This approach allows the XRPL to maintain compatibility with current infrastructure while gradually integrating stronger protections against quantum threats. Hybrid signatures are considered a practical intermediate step, enabling networks to begin the transition to post-quantum cryptography without requiring an abrupt, network-wide overhaul. The method has been discussed in cryptographic circles as a viable strategy for legacy systems that cannot be easily replaced. Why This Matters for the XRP Ecosystem The XRP Ledger processes billions of dollars in transactions and supports a growing ecosystem of decentralized applications, payment systems, and custody services. A successful quantum attack on the network could compromise private keys, disrupt transaction validation, and undermine user trust. By addressing this threat now, Ripple and the XRPL Foundation aim to ensure the ledger remains secure and viable over the long term. This initiative also positions the XRPL as one of the first major blockchain networks to publicly commit to a quantum-resistant upgrade. Other networks, including Bitcoin and Ethereum, have discussed similar measures but have not yet announced concrete implementation plans. Conclusion The partnership between Ripple, the XRPL Foundation, and Project Eleven marks a significant milestone in blockchain security. While quantum computing’s full impact may still be years away, the decision to begin transitioning the XRP Ledger now reflects a long-term view of network resilience. The introduction of hybrid signatures and the completion of a comprehensive vulnerability assessment provide a clear roadmap for other blockchain networks considering similar upgrades. FAQs Q1: What is the main threat quantum computing poses to blockchain networks? Quantum computers could potentially break the cryptographic algorithms that secure blockchain networks, including those used to generate private keys and sign transactions. This could allow attackers to forge transactions or steal funds. Q2: What are hybrid signatures in the context of this partnership? Hybrid signatures combine existing cryptographic standards with new, quantum-resistant algorithms. They allow networks to begin adopting stronger security measures without requiring an immediate, complete overhaul of the system. Q3: When will the XRPL be fully quantum-resistant? No specific timeline has been announced. The current phase focuses on assessment and the introduction of hybrid signatures. A full transition to quantum-resistant cryptography will likely occur in stages over the coming years. This post Ripple and XRPL Foundation Partner with Project Eleven to Address Quantum Computing Threat first appeared on BitcoinWorld .

19 May 2026, 21:15

Michael Terpin Sees 50% Chance Bitcoin Bottom Between $48K and $57K This October

BitcoinWorld Michael Terpin Sees 50% Chance Bitcoin Bottom Between $48K and $57K This October Michael Terpin, an early Bitcoin investor often referred to as the “godfather of cryptocurrency,” has outlined a price scenario that places Bitcoin’s next market bottom between $48,000 and $57,000, with a 50% probability of occurring this October. His analysis, shared in a recent interview, suggests that the current market dynamics differ from previous cycles due to structural buying pressure from institutional players. Key Factors Behind the Prediction Terpin pointed to sustained accumulation by Strategy (formerly MicroStrategy, ticker STRC) and the continued inflow from spot Bitcoin exchange-traded funds (ETFs) as key reasons why the downside is limited. He assessed that a drop below $40,000 is unlikely given these institutional supports. “The floor has been raised significantly,” Terpin said, emphasizing that the market’s foundation is now broader than in prior bear phases. Retail Liquidation, Not Whales, Driving Selling Pressure Contrary to some market narratives, Terpin identified the primary source of current selling pressure as retail traders being forced to liquidate leveraged positions, rather than large-scale whale distributions. This distinction, he argued, suggests a more contained and less systemic sell-off compared to previous downturns. The forced liquidations, while painful for individual traders, do not indicate a loss of confidence among long-term holders or institutional allocators. Broader Market Risks: AI and Smart Contracts While Terpin dismissed quantum computing as an immediate threat to Bitcoin’s cryptographic security, he raised a more near-term concern regarding artificial intelligence. He warned that advanced AI models could potentially identify and exploit vulnerabilities in major Ethereum-based smart contracts, leading to a cascading failure similar to the FTX collapse. Such an event, he suggested, could occur within the current market cycle, posing a systemic risk to decentralized finance (DeFi) platforms. Long-Term Outlook Remains Bullish Despite the near-term bearish scenario, Terpin reaffirmed his long-standing forecast that Bitcoin will reach $1 million by 2033. This projection is based on adoption curves, monetary inflation trends, and Bitcoin’s fixed supply. The current pullback, in his view, represents a buying opportunity for investors with a multi-year horizon, provided they can withstand potential volatility in the interim. Conclusion Terpin’s analysis offers a measured perspective on Bitcoin’s near-term trajectory, balancing institutional support against retail-driven volatility. His warning about AI-related risks to Ethereum adds a layer of complexity for diversified crypto holders. For now, the $48,000 to $57,000 range stands as a key zone for traders and investors monitoring the market’s next major move. FAQs Q1: What is Michael Terpin’s Bitcoin bottom prediction for October? He sees a 50% probability that Bitcoin will bottom between $48,000 and $57,000 this October, with a drop below $40,000 considered unlikely. Q2: Why does Terpin think Bitcoin won’t fall below $40,000? He cites sustained buying pressure from Strategy (STRC) and spot Bitcoin ETFs, which have raised the market floor compared to previous cycles. Q3: What risk did Terpin highlight for Ethereum? He warned that advanced AI models could disable major Ethereum smart contracts, potentially triggering an FTX-like crisis within the current market cycle. This post Michael Terpin Sees 50% Chance Bitcoin Bottom Between $48K and $57K This October first appeared on BitcoinWorld .