Are LLMs the Betamax of AI?

Chart of the Day — Hyperliquid HIP-3 OI
Trade of the Day — SOL trade of the day
Alpha Leaks — Meta acquires Moltbook
News Roundup — Microstrategy STRC flywheel
Degen Play — LMND in the accumulation zone?

Hyperliquid HIP-3 OI

Hyperliquid’s HIP-3 markets–where you can trade tokenized stocks and commodities–just hit a new all-time high in daily open interest, pushing past $1.3 billion as traders pile in.

This is especially interesting as across most of DeFi, perps trading volumes have been cooling off, yet HIP-3 positioning keeps climbing, suggesting that traders are more interested in RWAs than altcoins.

This makes sense as HIP-3 markets offer 24/7 trading in assets that normally only move during traditional market hours, and with geopolitics in chaos, that kind of access to commodities like oil and gold is a major pull.

SOL Trade of the Day

SOL has been consolidating while the Bollinger Bands compress, a setup that often precedes a large move. It looks like a base has formed, and importantly, SOL has held this level during recent war headlines, when it could easily have sold off instead.

So, the key level on the upside is $90. A clean break above that level, holding it as support, opens a path toward $120. On the downside though, losing $80 can bring further downward momentum, but right now, our immediate bias remains to the upside.

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These Startups Can Disrupt AI As You Know It

Two of the biggest names in AI have raised over $2 billion (combined) in order to pursue an alternative way of advancing the technology.

Stanford AI pioneer Fei-Fei Li last month raised $1 billion for startup World Labs, and then this week, Yann LeCun–who was previously Chief AI Scientist at Meta–launched AMI Labs and raised $1.03 billion at a $3.5 billion valuation.

What connects the two is that they are both focused on building world models that understand 3D environments and spatial relationships, as opposed to going down the text-centered LLM route to create something like ChatGPT, Claude, or Grok.

And the investor lists here are notable, with backers across the two companies including Nvidia, Samsung, Toyota Ventures, and Cathay Innovation, along with several major venture funds.

The world model approach aims to create AI that learns how real, physical environments actually work, and which operates with persistent memories. If that architecture works, it could unlock practical advances, move the field towards AGI (so that AI has human-like intelligence and understanding), and solve the AI hallucination problem.

Strategy Powers Up the STRC Flywheel

Strategy’s perpetual preferred stock STRC is hitting fresh milestones, with the company announcing a record daily trading volume, while 30-day volatility fell to 2.5%. Strategy’s own STRC page now shows $3.84 billion of notional outstanding, with the current, monthly-reset dividend running at 11.5%.

STRC is designed to stay close to its $100 par value by adjusting the dividend rate, and if investors keep buying for the yield, Strategy can keep issuing more, raising more cash, and buying more Bitcoin. And that’s the potential flywheel: capital comes in, Strategy turns that into BTC, and the growing BTC stack supports the broader Strategy story.

Michael Saylor also stated this week that STRC’s Sharpe ratio has moved above 3, which is unusually high, and if demand stays strong, the flywheel could be highly effective while powering a constant bitcoin bid.

That said, the mechanism only works while investors keep buying for the yield, and the risk is that if demand drops, then Strategy’s ability to issue new shares and fund additional Bitcoin purchases could slow or stall.

DOJ Probes Binance as Exchange Sues WSJ

It’s been reported that the US Department of Justice is investigating whether Iranian entities used Binance to evade sanctions, as according to the Wall Street Journal, officials are examining suspicious crypto transactions that may have moved through Binance-linked wallets.

However, Binance is pushing back, and the exchange has filed a lawsuit against Dow Jones, the parent company of the Wall Street Journal, arguing that the newspaper’s reporting was false and defamatory.

Binance has also posted a refutation of the accusations made against it, so it remains to be seen how this latest crypto legal drama plays out, keeping in mind that Binance is already operating under a US compliance monitor after having broken laws around money laundering and sanctions.

Squeezing That Lemonade

Today’s degen trade is AI-focused insurance play Lemonade (LMND). The stock has experienced a deep pullback after running hard into early 2026, shaking out plenty of holders this year, but the chart now shows the selloff looking exhausted, with price back in a support/resistance area looks like a potential accumulation zone.

If this level holds, then LMND could be due a move back up, as the AI-optimized insurance narrative is legit, although it may still take some time to build a base here. However, when sentiment shifts, a move back towards the prior highs at $100 wouldn’t be out of the question.

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