Cathie Wood’s ARK Invest has solidified its position as a major player in the artificial intelligence (AI) sector by increasing its investment in OpenAI, the firm behind ChatGPT. ARK contributed $250 million to OpenAI’s recent $6.6 billion capital raise, making the AI firm the third-largest holding in the ARK Venture Fund. This latest investment underscores ARK’s growing confidence in OpenAI’s potential, as the AI firm’s valuation skyrockets.
ARK Invest Bets Big on OpenAI
ARK Invest’s stake in OpenAI now accounts for 5% of its total assets, according to the ARK Venture Fund’s website. This marks a notable increase from the 4% share ARK held earlier in April, signaling the asset manager’s commitment to further deepening its involvement in the AI space.
This development may come as a surprise to some, given that Cathie Wood had previously lauded Tesla as the top AI project, focusing on Elon Musk’s autonomous vehicle initiatives. Wood had described robo-taxis as a “winner-takes-most” market, suggesting that Tesla would dominate the AI landscape. Yet, OpenAI’s rapid growth and valuation—now sitting at a staggering $157 billion—appears to have reshaped Wood’s investment strategy.
OpenAI’s rise in the tech world has been nothing short of remarkable. Valued at $86 billion earlier this year, the AI firm quickly vaulted to a $157 billion valuation after securing its $6.6 billion funding round. This surge cements OpenAI as one of the most valuable private companies globally. Major players such as Microsoft, AI chip leader NVIDIA, and Thrive Capital were also involved in the fundraiser, with Thrive leading the round with a $1 billion contribution.
Notably, the funding came in the form of convertible senior notes, offering investors the potential for equity conversion in the future—a strategic move that reflects confidence in OpenAI’s long-term growth prospects.
OpenAI’s $4 Billion Credit Line for Expansion
On the heels of the funding round, OpenAI secured a $4 billion revolving credit line from prominent financial institutions, including JPMorgan Chase, Citi, Goldman Sachs, and Wells Fargo. This additional capital boost elevates OpenAI’s liquidity to $10 billion, positioning the company to scale its infrastructure and compete head-to-head with tech giants like Google.
According to OpenAI’s finance chief, Sarah Friar, the credit facility will bolster the company’s balance sheet, enabling it to invest in the costly computing power necessary for AI advancement. This includes acquiring high-performance chips from NVIDIA, a critical component in maintaining its competitive edge.
Cathie Wood’s Strategic Play
Cathie Wood’s increased investment in OpenAI is a strategic move that aligns with her broader vision of investing in transformative technologies. Despite previously emphasizing Tesla’s dominance in AI, her decision to expand ARK’s stake in OpenAI suggests a dual bet on both AI and autonomous vehicle sectors.
As OpenAI continues to innovate and scale, its rivalry with industry giants like Google and Elon Musk’s xAI will likely intensify. However, with $10 billion in liquidity and backing from major financial and tech players, OpenAI appears well-positioned to maintain its trajectory of explosive growth.
ARK Invest’s increased stake in OpenAI marks a pivotal moment in Cathie Wood’s investment strategy. With OpenAI’s valuation surging and its financial resources expanding, ARK’s bet on the AI firm could yield substantial returns in the coming years. As AI continues to transform industries, Wood’s focus on innovative technology companies remains a bold and calculated approach to securing long-term growth.
Cardano (ADA) has been trading below the $0.70 mark since March 29, struggling to regain bullish momentum. Despite brief signs of strength, recent indicators now point to weakening trend conditions.
Both the BBTrend and ADX show fading buying pressure, while EMA alignment remains bearish. With price stuck between key support and resistance levels, ADA’s next move could define its short-term direction.
Cardano’s BBTrend has flipped negative, currently sitting at -0.78 after spending the last five days in positive territory. The indicator reached a peak of 9.76 on April 14, signaling strong bullish momentum at the time.
BBTrend, short for Bollinger Band Trend, measures the strength and direction of a price move relative to its Bollinger Bands.
Positive values typically indicate bullish trends, while negative values point to bearish conditions or weakening momentum.
The shift to -0.78 suggests that Cardano’s recent uptrend has lost strength and may be reversing. A negative BBTrend reading means the price is now moving closer to the lower band, often a sign of rising selling pressure.
While it doesn’t confirm a strong downtrend yet, this reversal could indicate the beginning of a broader consolidation or bearish phase unless momentum quickly recovers.
Traders may want to watch closely for follow-through or a bounce to assess ADA’s short-term direction.
Cardano Momentum Fades as ADX Crashes and Selling Pressure Rises
Cardano’s DMI chart shows a sharp drop in trend strength, with its ADX falling to 15.12 from 28.34 just two days ago.
The ADX (Average Directional Index) measures trend intensity—readings above 25 suggest a strong trend, while values below 20 indicate a weak or consolidating market.
At the same time, the +DI (bullish directional indicator) has dropped from 22.61 to 17.39, showing weakening buying pressure. Meanwhile, the -DI (bearish indicator) has risen from 10.5 to 14.95, pointing to a gradual increase in selling strength.
With both the ADX and +DI falling, and -DI climbing, the setup hints at a potential shift in favor of the bears.
Cardano’s EMA lines remain bearish, with short-term averages still positioned below the long-term ones—indicating that downward momentum is intact.
Cardano price is holding above a key support zone near $0.594, but if this level fails, it could trigger a deeper drop toward $0.511. This would confirm a continuation of the downtrend and reflect growing selling pressure.
However, if ADA manages to reverse its current momentum, the first major resistance lies at $0.64. A breakout above that level could open the door to further gains, with potential targets at $0.66 and $0.70.
If the uptrend strengthens, ADA could even rally toward $0.77, marking a more decisive recovery and trend shift.
The term “metaverse” has been tossed around with reckless abandon over the past few years. From flashy product launches to corporate rebrands, the idea of persistent virtual worlds where people live, work, and play has captured mainstream attention—only to fizzle under the weight of speculation, half-baked platforms, and cartoonish avatars.
Many now see the metaverse as nothing more than a marketing gimmick or a niche playground for gamers and tech bros.
But that perception misses a deeper truth: the metaverse isn’t a gimmick—it’s a technological layer still in its early, awkward adolescence.
What matters isn’t how it looks today, but what it enables tomorrow, especially when paired with Web3 and decentralized infrastructure. The ongoing evolution of the metaverse reveals practical applications already taking shape across various sectors.
The Early Hype—and Its Fallout
The first wave of metaverse hype made big promises:
Innovative Virtual meetings would replace offices resulting in business growth.
Avatars would represent us in every aspect of digital life.
Brands rushed in with NFTs and branded plots of virtual land.
Yet, as Alessio Vinassa, entrepreneur and a key figure in the Web3 space, points out:
“When any new technology is framed as a replacement for the old, it’s destined to disappoint. The metaverse isn’t about replacing reality—it’s about enhancing digital experience through ownership and immersion.”
The problem wasn’t the idea—it was the execution. The metaverse didn’t fail; it simply wasn’t ready.
What the Metaverse Actually Is
At its core, the metaverse is:
A network of immersive virtual spaces
Persistent and interoperable (in theory)
Enhanced by AR/VR, AI, and blockchain
Social, interactive, and increasingly programmable
It’s not about gimmicky avatars or crypto speculation. It’s about creating and developing digital environments where people can work, learn, collaborate, and express identity—while owning their data and digital assets.
The Role of Blockchain and Web3
Decentralization gives the metaverse a long-term foundation that walled gardens cannot:
NFTs enable ownership of digital goods—avatars, land, credentials, skins, documents.
DAOs govern virtual communities with transparency and consensus
Interoperable identity means your digital self isn’t locked into Meta, Roblox, or any one app.
In short, Web3 ensures you don’t just use the metaverse—you can co-own it.
As Alessio Vinassa explains:
“Digital spaces without ownership are digital prisons. Decentralization gives the metaverse its freedom—and its future.”
Real-World Use Cases Emerging Today
While much of the press has focused on gimmicks, real utility is quietly unfolding:
1. Education and Training
Universities and enterprises are using metaverse environments for:
Virtual labs and simulations
Immersive language learning
Soft skills training (e.g., empathy through perspective-shifting VR)
Example: Medical schools using VR to simulate surgeries, improving learning outcomes.
2. Virtual Collaboration for Remote Work
Rather than endless Zoom calls, 3D environments allow for:
Team meetings with shared spatial context
Whiteboard sessions, prototyping, and design
Persistent workspaces that mimic physical offices
Companies like Microsoft are investing in this intersection of XR and productivity.
3. Immersive Commerce
Retailers are experimenting with:
Virtual showrooms
Digital try-ons (via AR/VR)
Metaverse-native goods with NFT-linked real-world perks
It’s not about gimmicks—it’s about experience-driven shopping.
4. Cultural and Social Spaces
Art exhibitions, film festivals, and concerts are already happening in metaverse spaces—especially in platforms like Decentraland and Spatial.
These events often feature NFT ticketing, digital collectibles, and audience interaction.
5. Digital Identity and Expression
The metaverse allows people to explore identities, cultures, and interests in ways the physical world might limit.
Blockchain adds permanence and ownership to that expression, moving beyond just avatars to full digital personhood.
Dispelling the Gimmick Narrative
It’s easy to write off the metaverse as a failed trend. But real technologies evolve behind the scenes, not in the headlines.
The internet in 1995 looked like a toy.
Smartphones seemed unnecessary until apps redefined utility.
Cloud computing was “too abstract” until it became foundational.
The metaverse is simply in the infrastructure phase—still building the roads, power grids, and plumbing before the cities can thrive.
As Alessio Vinassa puts it:
“It’s not about whether the metaverse is hype—it’s about whether we’re asking the right questions. Who builds it, who owns it, and who benefits?”
Key Takeaways
The metaverse is not just about flashy visuals—it’s about immersive, interactive, and persistent digital experiences.
Real-world use cases in education, work, commerce, and culture are already proving value.
Web3 enables user ownership, identity, and governance in the metaverse.
Skepticism is valid, but confusing early stumbles with failure is shortsighted.
Visionaries like Alessio Vinassa are helping to guide the metaverse toward sustainable, human-centric design internationally.
Conclusion
The metaverse may have over-promised early on, but it’s far from a failed experiment. It’s a long-term infrastructure shift—one that reimagines how we connect, learn, work, and create in digital spaces.
With decentralization as its backbone and real use cases taking shape, the metaverse is evolving beyond the gimmick into something far more meaningful.
Next in Series: GameFi is a Ponzi Scheme: Rethinking Incentives in Play-and-Earn Models We’ll explore the economic assumptions behind GameFi, debunk the Ponzi narrative, and highlight models that focus on gameplay, sustainability, and community ownership.
The collapse of the MANTRA (OM) token has left investors reeling, with many facing significant losses. As analysts comb through the causes of the collapse, many questions remain.
BeInCrypto consulted industry experts to identify five critical red flags behind MANTRA’s downfall and reveal strategies investors can adopt to steer clear of similar pitfalls in the future.
MANTRA (OM) Crash: What Investors Missed and How to Avoid Future Losses
On April 13, BeInCrypto broke the news of OM’s 90% crash. The collapse raised several concerns, with investors accusing the team of orchestrating a pump-and-dump scheme. Experts believe that there were many early signs of trouble.
In addition, the project adopted an inflationary tokenomic model with an uncapped supply, replacing the previous hard cap. As part of this transition, the total token supply was also increased to 1.7 billion.
However, the move wasn’t without drawbacks. According to Jean Rausis, co-founder of SMARDEX, tokenomics was a point of concern in the OM collapse.
“The project doubled its token supply to 1.77 billion in 2024 and shifted to an inflationary model, which diluted its original holders. Complex vesting favored insiders, while low circulating supply and massive FDV fueled hype and price manipulation,” Jean Rausis told BeInCrypto.
Moreover, the team’s control over the OM supply also raised centralization concerns. Experts believe this was also a factor that could have led to the alleged price manipulation.
“About 90% of OM tokens were held by the team, indicating a high level of centralization that could potentially lead to manipulation. The team also maintained control over governance, which undermined the project’s decentralized nature,” said Phil Fogel, co-founder of Cork.
Phil Fogel acknowledged that a concentrated token supply isn’t always a red flag. However, it’s crucial for investors to know who holds large amounts, their lock-up terms, and whether their involvement aligns with the project’s decentralization goals.
Moreover, Ming Wu, the founder of RabbitX, also argued that analyzing this data is essential to uncover any potential risks that could undermine the project in the long term.
“Tools like bubble maps can help identify potential risks related to token distribution,” Wu advised.
2. OM Price Action
2025 has been marked as the year of significant market volatility. The broader macroeconomic pressures have weighed heavily on the market, with the majority of the coins experiencing steep losses. Yet, OM’s price action was relatively stable until the latest crash.
OM vs. TOTAL Market Performance. Source: TradingView
“The biggest red flag was simply the price action. The whole market was going down, and nobody cared about MANTRA, and yet its token price somehow kept pumping in unnatural patterns – pump, flat, pump, flat again,” Jean Rausis disclosed.
He added that this was a clear sign of a potential issue or problem with the project. Nevertheless, he noted that identifying the differentiating price action would require some technical analysis know-how. Thus, investors lacking the knowledge would have easily missed it.
Despite this, Rausis highlighted that even the untrained eye could find other signs that something was off, ultimately leading to the crash.
Strategies to Protect Yourself
While investors remained optimistic about OM’s resilience amid a market downturn, this ended up costing them millions. Eric He, LBank’s Community Angel Officer, and Risk Control Adviser emphasized the importance of proactive risk management to avoid OM-style collapses.
“First, diversification is key—spreading capital across projects limits single-token exposure. Stop-loss triggers (e.g., 10-20% below buy price) can automate damage control in volatile conditions,” Eric shared with BeInCrypto.
Ming Wu had a similar perspective, emphasizing the importance of avoiding over-allocation to a single token. The executive explained that a diversified investment strategy helps mitigate risk and enhances overall portfolio stability.
“Investors can use perpetual futures as a risk management tool to hedge against potential price declines in their holdings,” Wu remarked.
Meanwhile, Phil Fogel advised focusing on a token’s liquidity. Key factors include the float size, price sensitivity to sell orders, and who can significantly impact the market.
3. Project Fundamentals
Experts also highlighted major discrepancies in MANTRA’s TVL. Eric He pointed out a significant gap between the token’s fully diluted valuation (FDV) and the TVL. OM’s FDV reached $9.5 billion, while its TVL was only $13 million, indicating a potential overvaluation.
“A $9.5 billion valuation against $13 million TVL, screamed instability,” Forest Bai, co-founder of Foresight Ventures, stated.
Notably, several issues were also raised regarding the airdrop. Jean Rausis called the airdrop a “mess.” He cited many issues, including delays, frequent changes to eligibility rules, and the disqualification of half the participants. Meanwhile, suspected bots were not removed.
“The airdrop disproportionately favored insiders while excluding genuine supporters, reflecting a lack of fairness,” Phil Fogel reiterated.
The criticism expanded further as Fogel pointed out the team’s alleged associations with questionable entities and ties to questionable initial coin offerings (ICOs), raising doubts about the project’s credibility. Eric He also suggested that MANTRA was allegedly tied to gambling platforms in the past.
Strategies to Protect Yourself
Forest Bai underscored the importance of verifying the project team’s credentials, reviewing the project roadmap, and monitoring on-chain activity to ensure transparency. He also advised investors to assess community engagement and regulatory compliance to gauge the project’s long-term viability.
Ming Wu also stressed distinguishing between real growth and artificially inflated metrics.
“It’s important to differentiate real growth from activity that’s artificially inflated through incentives or airdrops, unsustainable tactics like ‘selling a dollar for 90 cents’ may generate short-term metrics but don’t reflect actual engagement,” Wu informed BeInCrypto.
Finally, Wu recommended researching the background of the project’s team members to uncover any history of fraudulent activity or involvement in questionable ventures. This would ensure that investors are well-informed before committing to any project.
4. Whale Movements
As BeInCrypto reported earlier, before the crash, a whale wallet reportedly associated with the MANTRA team deposited 3.9 million OM tokens into the OKX exchange. Experts highlighted that this wasn’t an isolated incident.
“Large OM transfers (43.6 million tokens, ~$227 million) to exchanges days prior were a major warning of potential sell-offs,” Forest Bai conveyed to BeInCrypto.
Ming Wu also explained that investors should pay close attention to such large transfers, which often act as warning signals. Moreover, analysts at CryptoQuant also outlined what investors should look out for.
“OM transfers into exchanges amounted to as much as $35 million in just an hour. This represented an alert sign as: Transfers into exchanges are below $8 million in a typical hour (excluding transfers into Binance, which are typically large given the size of the exchange). Transfers into exchanges represented more than a third of the total OM transferred, which indicates a high transfer volume into exchanges,” CryptoQuant informed BeInCrypto.
Strategies to Protect Yourself
CryptoQuant stated that investors need to monitor the flows of any token into exchanges, as it could indicate increasing price volatility in the near future.
Meanwhile, Risk Control Adviser Eric He outlined four strategies to stay up-to-date when it comes to large transfers.
Chain Sleuthing: Tools like Arkham and Nansen allow investors to track large transfers and monitor wallet activity.
Set Alerts: Platforms like Etherscan and Glassnode notify investors of unusual market movements.
Track Exchange Flows: Users need to track large flows into centralized exchanges.
Check Lockups: Dune Analytics helps investors determine if team tokens are being released earlier than expected.
He also recommended focusing on the market structure.
“OM’s crash proved market depth is non-negotiable: Kaiko data showed 1% order book depth collapsed 74% before the fall. Always check liquidity metrics on platforms like Kaiko; if 1% depth is below $500,000, that’s a red flag,” Eric revealed to BeInCrypto.
Additionally, Phil Fogel underlined the importance of monitoring platforms like X (formerly Twitter) for any rumors or discussions about possible dumps. He stressed the need to analyze liquidity to assess whether a token can handle sell pressure without causing a significant price drop.
Interestingly, experts were slightly divided on how CEXs contributed to OM’s crash. Forest Bai claimed that CEX liquidations during low-liquidity hours worsened the crash by triggering cascading sell-offs. Eric He corroborated this sentiment.
“CEX liquidations played a major role in the OM crash, acting as an accelerant. With thin liquidity—1% depth falling from $600,000 to $147,000—forced closures triggered cascading liquidations. Over $74.7 million was wiped in 24 hours,” he mentioned.
“Analyzing the open interest in the OM derivatives market reveals that it was less than 0.1% of OM’s market capitalization. However, what’s particularly interesting is that during the market collapse, open interest in OM derivatives actually increased by 90%,” Wu expressed to BeInCrypto.
According to the executive, this challenges the idea that liquidations or forced closures caused the price drop. Instead, it indicates that traders and investors increased their short positions as the price fell.
Strategies to Protect Yourself
While the involvement of CEXs remains debatable, the experts did address the key point of investor protection.
“Investors can limit leverage to avoid forced liquidations, choose platforms with transparent risk policies, monitor open interest for liquidation risks, and hold tokens in self-custody wallets to reduce CEX exposure,” Forest Bai recommended.
Eric He also advised that investors should mitigate risks by adjusting leverage dynamically based on volatility. If tools like ATR or Bollinger Bands signal turbulence, exposure should be reduced.
The MANTRA (OM) collapse is a powerful reminder of the importance of due diligence and risk management in cryptocurrency investments. Investors can minimize the risk of falling into similar traps by carefully assessing tokenomics, monitoring on-chain data, and diversifying investments.
With expert insights, these strategies will help guide investors toward smarter, more secure decisions in the crypto market.
