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- Loud IAO, SEC Shifts, $100M Loss, and ETF Outflows
Loud IAO, SEC Shifts, $100M Loss, and ETF Outflows
Exploring Loud’s Attention Economy, SEC’s Binance Dismissal, a Trader’s Massive Loss, and ETF Volatility Trends
Token Metrics Daily
May 30, 2025
Happy Friday, TM Family!
Welcome to the Token Metrics Daily newsletter, where we cover key market movements, regulatory updates, and early alpha for our readers and investors.
Let’s dive in!
In Today’s Edition
Loud Project: Pioneering the Attention Economy in Web3
SEC’s Regulatory Shift: Binance Lawsuit Dropped, Staking Clarified
James Wynn’s $100M+ Loss: A Cautionary Tale
1. Loud Project: Pioneering the Attention Economy in Web3
The Loud project is poised to redefine how attention is valued in the cryptocurrency space with its $LOUD token launch through an Initial Attention Offering (IAO) scheduled for May 31, 2025. Built on the Kaito protocol, Loud is an experimental initiative that explores the direct conversion of attention into value, rewarding creators and participants who amplify its mindshare.
The $LOUD token has no intrinsic value, but its transaction fees from trading will be redistributed weekly to the top 25 users who generate the most mindshare, as measured by KaitoAI’s data analytics. This incentivizes active participation and content creation, aligning with Web3’s emphasis on community-driven value.
The IAO aims to raise 400 $SOL (approximately $70,000) on HoloworldAI’s HoloLaunch platform. Post-IAO, the raised $SOL and 45% of $LOUD tokens will be injected into the Meteora’s liquidity pool, enabling trading. Transaction fees will be distributed weekly starting approximately seven days after the IAO.
The IAO is structured in two phases:
Priority Phase: Reserved for the first 1,000 $LOUD users, ensuring early adopters get priority access.
Community Phase: Open to Kaito users who have bound their Solana addresses and meet eligibility criteria of minimum ten smart followers on X, operating on a first-come, first-served basis.
Loud’s experiment could set a precedent for how attention is monetized in Web3, potentially influencing future projects in the attention economy. Its success will depend on community engagement and the effectiveness of its incentive mechanisms.
2. SEC’s Regulatory Shift: Binance Lawsuit Dropped, Staking Clarified
On May 29, 2025, the SEC filed to dismiss its lawsuit against Binance with prejudice, meaning the case cannot be refiled. Initiated in June 2023, the lawsuit was paused after Donald Trump’s re-election to allow the SEC’s new crypto task force to develop a regulatory framework. Binance.US welcomed the dismissal, affirming no violation of U.S. securities laws and focusing on growth and compliance.
The SEC also dropped over a dozen other investigations, including those targeting NFT marketplaces, Coinbase, and Kraken, signaling a broader shift in its approach under new leadership, with Mark Uyeda as acting chair and Paul Atkins recently sworn in as full chair.
In a separate statement, the SEC clarified that proof-of-stake staking activities do not constitute securities transactions for “covered crypto assets” on proof-of-stake networks. This applies to activities by node operators, validators, custodians, and other service providers, as well as self-staking and custodial arrangements.
The SEC’s evaluation, based on the Howey Test, was supported by Commissioner Hester Peirce’s remark that “providing security is not a ‘security’”. This stance is expected to facilitate staking in crypto ETFs, a significant development given past enforcement actions under former SEC Chair Gary Gensler against platforms like Kraken and Coinbase. However, Democrat SEC Commissioner Caroline Crenshaw criticized the statement, arguing it presents an “incomplete picture” of crypto law and undermines significant risks to investors.
3. James Wynn’s $100M+ Loss: A Cautionary Tale
Prominent Bitcoin trader James Wynn has suffered losses exceeding $100M over the past week due to highly leveraged Bitcoin trades, underscoring the volatility and risks of crypto trading. Wynn’s losses stem from a series of liquidations on his 40x leveraged long Bitcoin positions.
His initial position on May 21 was 7,764 BTC valued at $830M at an entry price of $105,033, which he scaled up to 11,588 BTC worth $1.25B by May 24 at an average price of $108,243.
Wynn’s aggressive trading strategy, using 40x leverage, amplifies both potential gains and losses. His predicament serves as a stark reminder of the dangers of high-leverage trading in the volatile crypto market, even for experienced traders.
4. BlackRock’s Bitcoin ETF: Low Volatility, Shifting ETF Flows
BlackRock’s IBIT achieved a 90-day rolling volatility of 47.64, the lowest since its debut in January 2024, making it increasingly attractive to institutional investors. Analyst Eric Balchunas noted that this low volatility creates a “self-fulfilling” feedback loop, stabilizing the ETF further. IBIT’s inflows total $49B, dwarfing competitors like Fidelity’s FBTC, which has attracted less than $12B.
On Thursday, U.S. spot Bitcoin ETFs experienced net outflows of $358.6M, ending a 10-day inflow streak that had amassed $4.26B. This was the largest single-day exit since March 11.
In contrast, U.S. listed spot Ethereum ETFs saw $91.93M in net inflows, marking nine consecutive days of positive flows, highlighting differing investor sentiments between Bitcoin and Ethereum markets.
IBIT’s low volatility positions it as a “digital gold” asset, appealing to institutional investors seeking stability. The recent outflows in spot Bitcoin ETFs suggest a potential cooling of retail investor enthusiasm, though cumulative inflows remain robust at $44.99B.
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That’s all for today, people. Happy weekend.
Your Friends at Token Metrics
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