🤯 BTC in Tariff Shock?💥

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Hey Readers! 

This week brought some major twists in the crypto world!

Good news? Bitcoin makes a comeback on Thursday, propelling a new all-time high of $110K.

Bad news? The dreaded Tariffs are back! President Trump is back with a new 50% EU Tariff, sending shockwaves across nations, including the crypto community, with BTC prices falling sharply to $108 within 24 hours.

All is not well for Coinbase! The popular crypto exchange faces another lawsuit, this time from one of its users. On a lighter note, Trump’s $TRUMP “Unforgettable Gala Dinner” was not as gala as imagined – it turned out to be a full-blown disaster! On the brighter side, Lagrange Labs, the next-gen ZK-based network, will launch its new LA token through crypto airdrops! 

📬 In This Week’s Top News:

• Bitcoin Crumbles Amid Trump’s 50% EU Tariff Shock.

• Coinbase in Trouble As Major Lawsuit Unfolds.

• Was Trump’s $148M “Unforgettable Dinner” a Disaster?

• Lagrange Labs Bolsters DeFi Surge with New LA Token Launch.

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President Donald Trump has unleashed yet another tariff bombshell! Is the tariff war raging again?

On Friday morning, the “Trump Effect” came on full blast as the President announced “a straight 50% Tariff on the European Union,” starting from June 1, on his Truth Social Account.

Earlier, Trump expressed frustration and accused the 27-nation bloc of being “very difficult to deal with” and that the discussions were “going nowhere.” However, on Sunday evening, the hard deadline was extended to June 9 after a call with European Commission President Ursula von der Leyen. On Friday, Trump also threatened Apple smartphones with a hefty 25% tariff on iPhones produced outside the U.S.

Following the new Tariff announcement, Bitcoin, which reached a new all-time high of $110,000 on Thursday afternoon, witnessed a significant downfall to $108,574, marking a steep drop of 1.8% within 24 hours.

Why did Bitcoin prices fall post-Trump’s 50% EU Tariff declaration?

Trump’s 50% Tariff news followed with a multi-day sell-off, wiping out nearly $130 billion in crypto market capitalization. Major altcoins like ETH, SOL, and XRP also suffered significant losses, exhibiting a growing concern among crypto investors.

Trump’s tariff-heavy policies, “America First” ideology, frequent tariff shifts, and aggressive trading strategies have rattled the market, triggering early sell-offs of stocks and digital assets like Bitcoin and other altcoins affecting investor trust and the overall market sentiment.

Currently, the BTC prices are wobbling, and investors are anxious. Will Bitcoin price be able to break the current resistance levels to a short-term bullish trend? Let’s wait and watch how the broader crypto market reacts and whether it can rebound amid these volatile geopolitical events.

👉 Also Read: Trump Gives Tariff Breather to EU.

Coinbase in trouble again?

The leading American crypto exchange hits another setback, is under legal trouble, and facing backlash over anomalous stock pricing.

An investor has filed a class action lawsuit against the popular crypto exchange on allegations of “wrongful acts and omissions” that have impacted the plaintiff and other shareholders in a District Court in Pennsylvania. 

On May 22, Brady Nessler, a Coinbase investor, filed a class action lawsuit against Coinbase Global Inc., alleging that the exchange has concealed its recent data breach incident, issued “misleading” statements, and violated federal securities laws, which has led to a decline in the Coinbase stock prices. The lawsuit claims damages to stocks that occurred between April 14, 2021, to May 14, 2025.

Earlier on May 15, Coinbase revealed that a $20 million extortion attempt had been made against the exchange. Several offshore customer service agents have leaked confidential data related to user addresses, names, account details, and ID documents that could cost Coinbase around $400 million in reimbursements. 

According to the lawsuit, following the hack, Coinbase’s stock prices dropped by 7.2% to $244 on the same day. Though the stock recovered partially and closed at $266 on May 16, it did not recover all the losses.

UK FCA Agreement Breach Impacted Stock Prices

The lawsuit also pointed out that Coinbase was under scrutiny for breach of a voluntary agreement with the UK FCA (Financial Conduct Authority). In July 2024, FCA imposed a fine of $4.5 million on account of illegally onboarding around 13000 high-risk account holders prohibited by the FCA.

The lawsuit claims that Coinbase has concealed the regulatory breach from its users during the Nasdaq listing, which could account for a 5% dip in Coinbase stock prices in 2024.

Nessler has alleged that following the FCA breach, Coinbase has artificially inflated the stock prices.

User Biometric Lawsuit

Apart from the Pennsylvania lawsuit, Coinbase faces another legal hurdle. A lawsuit in Illinois has alleged that Coinbase illegally procures user biometric data without giving prior notice to the users about why and how this data is being used. This is, in fact, 1 out of the 6 legal battles against Coinbase.

Nessler and the plaintiffs have demanded a jury trial. Coinbase CEO Brian Armstrong and Chief Financial Officer Alesia Haas are the two defendants in the lawsuit. 

“The food sucked,” were the exact words of Nicholas Pinto, an American entrepreneur and popular social media personality, shared after he attended Trump’s much-hyped crypto dinner party on May 22.

Just hours before the so-called “the most exclusive invitation in the world,” $TRUMP meme coin prices plunged by 16%. Reports suggest that most invitees were underwhelmed and unhappy with the President’s hospitality and dinner menu.

Inside Trump’s Unforgettable Gala Dinner

Trump’s much-hyped “unforgettable gala dinner” failed to leave any lasting impression among its handpicked VIP invitees.

Pinto, the 25-year-old influencer who has spent $300,000 on Trump’s meme coin, shared with Fortune that Trump was at the dinner event only for 23 minutes. He delivered his speech and flew back with his helicopter.

The gala menu included “Trump organic field green salad,” filet mignon, pan-seared halibut with mashed potatoes, lava cake, etc. In a sarcastic smirk, Pinto said, “The only good thing was bread and butter,” and he left the venue still hungry.

What did the $TRUMP Coin's Biggest Spenders Receive?

Tron network founder and crypto billionaire, Justin Sun, won the top spot with $20 million worth of $TRUMP coins. Justin and three other top investors were gifted with a $100,000 worth of Trump-branded Tourbillon watch.

Did Trump’s Dinner Event Raise Major Security Issues?

Yes. There were several security concerns at the event. Apparently, the KYC check for invitees was not thorough and was done by a third-party service provider. Many strangers and foreigners got unwarranted proximity to the president.

Crypto regulators and industry leaders have expressed concern that the security measures were inadequate and sketchy, and also questioned the funding sources for the popular meme coin.

There were concerns that Trump misused the campaign to raise funds for his personal crypto business and political branding. The proximity of international guests to the president has also been questioned.

👉 Also Read: Most Trump Crypto Dinner VIPs have Moved or Dumped Their Coins.

Exciting news for crypto enthusiasts!

Lagrange Labs, a pioneering Zero-knowledge proof (ZK0 decentralized network, will soon launch its new $LA native token.

The utility token will fuel Lagrange Labs’s cryptographic ecosystem, staking, and improve community engagement.

The LA token crypto airdrop schedule:

• Airdrop starting date: May 28, 2025.

• Airdrop Ending date: June 2, 2025.

To become eligible for the airdrop, one must participate through the “Turing Roulette,” a game where participants must guess whether they are speaking to an AI agent or a human.

Participants must verify through “proof-of-uniqueness” and “proof-of-humanity” checks. Currently, the total supply cap of LA tokens is 1 billion.

Last year, Lagrange Labs raised $17 million through seed funding to expand its cross-chain infrastructure. The token airdrop aims to bring in fresh investors and build the network community.

Lagrange Labs is integrated with the EigenLayer, and the LA token launch may impact the Ethereum network.

LA token will fuel:

• Network governance.

• Platform fees and subsidies.

• Payment of incentives to users.

• Staking and delegation.

How Do Crypto Airdrops Work?

A Crypto Airdrop is a marketing gimmick by blockchain networks or startups that distribute tokens to specific wallet addresses of active users.

How does it work?

• Selected participants are invited to the airdrop based on their involvement, contribution, etc.

• Project details are shared through official social media channels.

• To qualify and receive airdrop gifts, participants must hold a certain amount of tokens in their wallets.

• Users must complete the registration process.

 ⚠️ Always DYOR: Crypto Airdrops are not risk-free. Do your due diligence before participation. 🛡️ 

The global crypto market cap on Wednesday, 28th May, is $3.55 trillion with🔻2.6% down over the last 24 hours.

• Binance CEO, Michael Saylor, Says Proof-of-Reserves Risky and Misleading. BitDegree.

• MetaMask Added Solana Support Via Its Web Browser Extension. The Block.

• US banks tiptoe toward crypto, awaiting more green light from regulators. Yahoo Finance.

• Tether Goes All In On AI And Bitcoin To Build A Decentralized Future. Forbes.

That’s it for this week, guys!

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Disclaimer: The information provided in this newsletter is educational and not intended for any investment or financial advice.