‍Ki Young Ju Criticizes X Algorithm Over 1,200% Spike in Crypto Bot Activity Ki Young Ju, founder of CryptoQuant, criticized X (formerly Twitter) for its algorithm, which he claims is penalizing legitimate crypto content while allowing AI-driven bots to surge. Ju noted a 1,200% increase in posts with the keyword "crypto," leading to algorithmic crackdowns that restrict reputable accounts. Ju stated, "As AI advances, bots are inevitable. It is absurd that X would rather ban crypto than improve its bot detection." He further argued that the paid verification system allows bot operators to "pay to spam," while organic users face reduced reach. X product head Nikita Bier countered that the decline of "Crypto Twitter" is due to user behavior, not solely the algorithm, citing overposting and low-value engagement. Despite the issues, X remains a primary communication hub for the blockchain industry.
‍Japan Reclassifies Bitcoin, Easing Tax Burden for Investors Japan is set to reclassify Bitcoin (BTC) as a formal financial product, a move that could significantly boost investor demand. This change, highlighted by analyst Willy Woo, will shift taxation from miscellaneous income (43-55% for high earners) to a standardized 20% rate, similar to traditional assets. This reform is expected to reduce the fiscal burden for private investors and align the Japanese crypto market with global financial standards. While capital gains will see a flat tax, rewards from staking may still be subject to marginal income tax rates. The government aims to foster a more favorable tax environment, potentially triggering substantial capital inflow into the crypto ecosystem.
‍Tennessee SWC Issues Cease-and-Desist to Prediction Markets Over Sports Contracts The Tennessee Sports Wagering Council (SWC) has issued cease-and-desist letters to Polymarket, Kalshi, and Crypto.com, alleging unlicensed sports wagering operations. The regulator contends that "event contracts" offered on these platforms, even if regulated by the CFTC, violate the Tennessee Sports Gaming Act. The platforms are ordered to cease sports-related offerings to Tennessee residents and refund funds by January 31, 2026. Non-compliance risks fines of up to $25,000 per offense and potential criminal investigations. This action highlights ongoing jurisdictional conflicts between state gambling authorities and federal regulators.
‍Samson Mow: Elon Musk to Aggressively Enter Bitcoin Market in 2026 Samson Mow, CEO of Jan3, forecasts a significant return for Elon Musk to Bitcoin (BTC) in 2026, expecting BTC to reach $1.33 million. Mow anticipates a "sudden" acceleration in global interest, alongside the issuance of sovereign Bitcoin bonds and Bitcoin outperforming gold. This optimistic outlook contrasts with more conservative projections from industry figures like Matt Hougan, who anticipates a slower, decade-long growth. Mow remains focused on the long-term trajectory of the blockchain ecosystem.