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AI music deception hits mainstream while SEC stalls altcoin ETF revolution
July 2nd, 2025
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Read Time: 10 Minutes
Today’s Menu
AI-generated band achieves viral success before revealing Suno origins
SEC creates altcoin ETF chaos with last-minute Grayscale reversal
Markets
Price | 1 Day Change |
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Bitcoin | $108,898 | 1.4% ⬆️ |
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Ethereum | $2,575 | 5.7% ⬆️ |
Solana | $152 | 3.4% ⬆️ |
TODAY IN AI
AI-generated band achieves viral success before revealing Suno origins
A mysterious band that accumulated over 500,000 monthly Spotify listeners has been exposed as an "art hoax" using AI music generator Suno, according to Rolling Stone. The revelation highlights both the sophistication of current AI music generation and the inadequacy of existing detection systems on major streaming platforms.
The group's two albums appeared on streaming services in June with zero prior digital footprint, immediately raising suspicions among Reddit users and professional musicians. Despite these concerns, the tracks spread across more than 30 playlists without any disclosure requirements from Spotify, demonstrating the platform's limited AI detection capabilities.
While Deezer flagged potential AI usage, Spotify made no disclosure requirements, allowing the artificially generated content to compete directly with human-created music. The band initially dismissed AI claims as "lazy and baseless" on social media, with "adjunct member" Andrew Frelon characterizing it as "marketing and trolling."
Frelon eventually confirmed that Suno was used to create at least some tracks, leveraging the platform's "Persona" feature to maintain consistent vocal characteristics across multiple songs. This technique demonstrates how AI music generators can create coherent artistic identities rather than one-off compositions.
The success story raises fundamental questions about authenticity in creative industries. If AI-generated music can achieve mainstream success based purely on listener enjoyment, does the source of creation matter? The parallel to V-tubers—virtual characters with massive followings—suggests audiences may prioritize content quality over creator authenticity.
The incident also exposes the vulnerability of music industry gatekeeping systems. If a completely AI-generated act can achieve significant streaming success without detection, how many other artificial artists may already be operating undetected across major platforms?
TODAY IN CRYPTO
SEC creates altcoin ETF chaos with last-minute Grayscale reversal
The SEC has created regulatory confusion by suddenly halting approval for Grayscale's Digital Large Cap Fund conversion to ETF status, just 24 hours after initially fast-tracking the application. The reversal demonstrates internal dysfunction within the commission and uncertainty around altcoin ETF policy.
The surprise "stay" letter cited Rule 431 and halted approval until further notice, despite initial green light from the SEC's Division of Trading and Markets. Insiders describe the situation as classic Washington dysfunction, where one division approved the application before another division or commissioners demanded a full review.
The GDLC conversion would have made history by providing the first U.S. spot ETF exposure to XRP, Solana, and Cardano through a fund holding Bitcoin (80%), Ethereum (11%), and small allocations to these alternative cryptocurrencies. This diversified approach appeals to investors seeking broader crypto exposure beyond Bitcoin and Ethereum.
Despite the setback, analysts remain optimistic about long-term prospects. Bloomberg's James Seyffart characterizes the pause as procedural, while Eric Balchunas calls eventual approval of Solana, XRP, and other altcoin ETFs a "near lock" by year-end. Their confidence reflects growing recognition that altcoin ETFs represent inevitable market evolution.
The delay leaves GDLC stuck as a $755 million closed-end fund while the SEC weighs dozens of other altcoin ETF proposals. Wall Street's appetite for crypto diversification continues growing, creating pressure on regulators to provide clear approval pathways.
The regulatory uncertainty contrasts sharply with market demand for these products. Institutional investors increasingly seek exposure to cryptocurrencies beyond Bitcoin and Ethereum, viewing diversified crypto allocations as essential for comprehensive digital asset strategies.
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