10.14 AI Daily encryption market rebounds, stricter regulation leads to new industry direction

一. Headlines

1. Top Trader Eugene Shares Three Key Qualities of Excellent Traders

Top trader Eugene Ng Ah Sio shared the three key qualities that excellent traders should possess on social media. Firstly, excellent traders need to have a keen emotional awareness and be able to identify and stay away from the market when they have psychological biases. Secondly, it is crucial to build a sound Risk Management framework, and the trading system should be able to withstand 2/3/4 standard deviation events to mitigate downside risks. Lastly, enhancing aggressiveness by evaluating position size appropriately and managing position scale when betting with high confidence. Eugene believes that only by possessing these three key qualities can one become a truly excellent trader.

2. Vitalik dumped MOODENG for 8 consecutive days, causing its price to fall by 72%.

Analysts monitoring on-chain activities have discovered that the largest beneficiary of the recent Vitalik Airdrop, MOODENG, is currently experiencing a "backlash". Data shows that Vitalik has been dumping MOODENG for 8 consecutive days, causing its token price to big dump by 72% from its peak. As the founder of Ethereum, Vitalik's every move is closely followed. This large-scale dumping has sparked heated discussions in the community, with some investors questioning whether Vitalik has lost confidence in the MOODENG project. However, some analysts believe that Vitalik may just be seeking Liquidity, and this does not necessarily indicate a negative view of the project. In any case, this incident has once again sparked people's thoughts on the value of Airdrop tokens.

3. Grass Foundation: The Airdrop One final qualification query page will go live on October 21st.

The Grass Foundation announced on the X platform that the final eligibility check page for Airdrop One will be launched on October 21, 2024. The Foundation added that the claiming function will not be available synchronously, this is just a checker to query if you meet the Airdrop eligibility. Grass is an artificial intelligence web crawler project based on the Solana network, which is widely followed. The project previously issued a reminder that users are required to connect their Wallet before October 1st, otherwise they will not be able to claim the first Airdrop reward. This announcement aims to alleviate community anxiety and prevent users from being deceived.

4. OpenAI launches experimental framework "Swarm" to coordinate AI agent networks

OpenAI has launched an experimental framework called "Swarm" that aims to coordinate AI agent networks. The framework provides developers with a blueprint for creating interconnected AI networks that can autonomously communicate, collaborate, and handle complex tasks. While the concept of multi-agent systems is not new, Swarm represents an important step in making these systems more accessible to a wider range of developers. The potential applications of this framework are wide-ranging. In theory, using Swarm-inspired technology, companies can create specialized AI agent networks for different departments, enabling automated analysis, marketing strategy adjustments, and more.

5. South Korea plans to establish a virtual asset committee this month to expedite the approval of BTC ETFs.

The Financial Services Commission of South Korea plans to establish a new regulatory agency this month, the Virtual Asset Commission, with the approval of BTC ETF as its agenda. Analysts say that the establishment of this agency will help "accelerate discussions on approving BTC and ETH spot ETFs." Insiders revealed that the commission will also discuss the issue of "allowing corporate investment in virtual assets." This move by the South Korean regulatory agency reflects that encryption assets are gradually being incorporated into the mainstream financial system. The establishment of the Virtual Asset Commission will clear obstacles for institutional investors to participate in the encryption market and is expected to further promote the compliant development of encryption assets.

二. Industry Data

1. BTC

BTC recently traded at $62,846.3000 with a daily increase of +0.1%.

2. ETH

Ethereum recently traded at a price of $2465.0700, with an intraday gain of +0.8%.

3. BOME

BOME recent transaction price is 0.0071 USD, with an intraday increase of +4.7%.

4. GT

The recent transaction price of GT is 9.2170 US dollars, with an intraday increase of +1.6%.

3. Industry News

1. BTC weekly chart closed up more than 5%, long positions are gradually increasing

BTC has performed strongly this week, with a weekly increase of 5.2% and a peak of $61,700 on Friday. Long positions are gradually strengthening, driven mainly by expectations of a Fed rate cut and a rebound in risk appetite. Analysts believe that BTC is likely to break through the $65,000 mark in the short term, but potential pullback risks should still be monitored.

The rise in BTC price has driven a rebound in the entire cryptocurrency market. Data shows that the total market capitalization of the cryptocurrency has risen by about 5% to $1.07 trillion this week. Investor sentiment has improved, and the volume of open futures contracts on exchanges has also shown a significant increase. The volume of open futures contracts on CME exchange has risen by 2.56%, and on Bakkt exchange by 0.96%.

Analysts say that the short-term upward trend of BTC depends on the changes in its dominant position. If the dominant position of BTC declines, it may indicate that funds are flowing into other encryption assets. In addition, the pre-election Fluctuation expectations in the options market in the United States may also have an impact on the price of BTC.

2. ETH broke through $2500, L2 ecosystem continues to heat up

Ethereum performed well this week, with a weekly pump of 6.5%, and it broke through the $2500 mark during Friday's trading. The rise in Ethereum's price was mainly driven by the continued heating up of the L2 ecosystem. Data shows that the L2 volume of Ethereum rose 17.2% this week, with Base performing outstandingly.

Analysts pointed out that the rapid development of ETH L2 ecology is expected to alleviate the congestion problem of ETH Mainnet and improve the overall user experience. As more applications and funds pour into the L2 network, the price of Ethereum will also be supported. But at the same time, we need to be cautious about the security risks brought by the excessive development of L2 ecology.

In addition, the price performance of Ethereum is also affected by the Volatility rise of the Options market. Institutional investors push up Options rates by using Options Hedging market risks. Analysts predict that if Options rates continue to rise, Ethereum's price will also come under some pressure.

3. The Solana ecosystem continues to heat up, with SOL breaking through $50 in the short term.

The Solana ecosystem continued to heat up this week, with the price of SOL coin pumping 8.3% on a weekly basis and breaking through the $50 mark during Friday's trading. The sustained heating of the Solana ecosystem is mainly driven by the continuous launch of new projects and the continuous inflow of funds.

The data shows that the number of new projects in the Solana ecosystem has risen by 15% this week, and the total value locked in the ecosystem has also risen by about 10% to $620 million. Analysts believe that the rapid development of the Solana ecosystem is mainly due to its high performance and low transaction fees.

However, the rapid development of the Solana ecosystem has also raised some concerns. Some analysts have pointed out that there is a certain centralization risk in the Solana ecosystem, and the quality of new projects varies. Investors need to remain cautious. In addition, the stability of the Solana network also needs to be further improved.

Overall, the cryptocurrency market rebounded this week, and investor sentiment improved. However, there are still many uncertain factors in the market, and investors need to remain cautious and control risks.

Four. Project News

1. Developers announce major updates, including digital technology improvements and new user acquisition methods

Is a global initiative aimed at fairly distributing the benefits of artificial intelligence. The project recently shared a significant update in San Francisco, marking the entry into the next stage of development.

Latest news: At the "A new world" live event in San Francisco on October 17th, key members of the foundation and Tools for Humanity (TFH) will discuss the "meaningful updates" of this global initiative with OpenAI CEO Sam Altman. These key updates include improved digital technology and methods to bring more users onto the network, with the aim of extending the project from the current approximately 7 million verified users to 700 million or more, while also providing important tools to help everyone share the benefits of the AI era.

Market Impact: The goal of this project is to solve inequality by fairly distributing the income from artificial intelligence. If the project can successfully expand its user base and provide an effective distribution mechanism, it will help alleviate social divisions caused by artificial intelligence and promote inclusive technological development. At the same time, it may also become an important infrastructure for artificial intelligence applications.

Industry feedback: the project's vision is widely followed, but its implementation path is also questioned. Some analysts believe that achieving the goal of fair distribution of artificial intelligence benefits still faces major challenges. However, the latest update of the project demonstrates its determination to continuously iterate and develop.

2. Akash CEO: DePIN is more attractive to mainstream audience than other encryption tracks, and regulators have recognized its unique benefits

Akash is a Decentralization cloud computing marketplace that allows anyone to sell idle Computing Power. As one of the pioneers of DePIN (Decentralization Artificial Intelligence Network), Akash is driving the Decentralization of artificial intelligence Computing Power.

Latest developments: Akash CEO Greg Osuri recently mentioned in an interview that regulators have taken notice of the role of the DEP project. He said, "I've spent a lot of time on Capitol Hill... I met with a senior staffer on the House Energy and Commerce Committee... They said, 'We know about Akash, it's the intersection of DEP and artificial intelligence.'" Osuri believes that compared to other encryption projects, DEP can attract a more mainstream audience because regulators often categorize the entire industry when researching cryptocurrency.

Market impact: If DePIN can attract mainstream users and gain support from regulatory agencies, it will help promote the decentralization of Computing Power for artificial intelligence, breaking the monopoly of technology giants on Computing Power resources. This will not only promote the innovation of artificial intelligence technology, but may also bring a more fair environment for the application of artificial intelligence.

Industry feedback: DEP is considered to be one of the most promising tracks in We. However, at present, DEP is still in its infancy, and it will take time to achieve large-scale application. Some analysts are skeptical about whether DEP can truly solve the centralization problem of Computing Power in artificial intelligence, believing that more technological breakthroughs are needed.

Gate Ventures, Movement Labs, and Boon Ventures jointly launched a $20 million fund to promote Move ecosystem innovation and development.

Move is a new emerging blockchain programming language developed by Meta. The language is considered to be more secure and efficient, and is expected to drive innovation in blockchain technology.

Latest News: Gate Ventures, Movement Labs, and Boon Ventures have announced the launch of a $20 million fund aimed at promoting the development and application of Block chain technology based on Move. The fund will accelerate innovative projects within the Move ecosystem, enhance the security of the Decentralization network through hackathons, guidance, and funding, build bridges between Move and the EVM ecosystem, and drive innovation in Web3 infrastructure.

Market Impact: Move is seen as the next generation blockchain programming language, with significant strategic importance. If the Move ecosystem can be fully developed, it will help drive the advancement of blockchain technology and bring more innovative applications to the Web3 era. At the same time, the rise of the Move ecosystem will also bring certain impacts to existing ecosystems such as Ethereum.

Industry Feedback: There are different opinions among industry insiders on the development prospects of the Move language and its ecosystem. Supporters believe that the advanced design of the Move language is expected to promote breakthroughs in blockchain technology; skeptics are concerned about whether the Move ecosystem can truly achieve safety and efficiency, and question whether it can survive under the squeeze of existing ecosystems. Overall, the Move ecosystem still needs time to be tested.

5. Economic Dynamics

1. The Federal Reserve releases hawkish signals, and the pace of interest rate hikes may accelerate.

Economic Background: The US economy maintained a moderate rise in the third quarter of 2024, but the inflation rate remained high. According to the latest data, the annualized rise rate of GDP in the third quarter was 2.1%, while the core inflation rate was as high as 5.8%, far higher than the Federal Reserve's target level of 2%. The unemployment rate remained low at 3.5%, and the job market remains tight.

Important event: The Federal Reserve Chairman Powell released a hawkish signal in his latest speech, suggesting that the pace of interest rate hikes should be accelerated to curb inflation. He said that if inflation continues to remain high, the Federal Reserve will have to take more aggressive action. This statement has intensified market expectations for a substantial interest rate hike at the November meeting of the Federal Reserve.

Market reaction: Powell's hawkish remarks caused a violent Fluctuation in the financial markets. US stocks big dumped briefly after the speech, with the S&P 500 index falling 1.6%. The US dollar index then rose 0.8%, reflecting investors' response to the expectations of interest rate hikes. Bond yields also saw a pump, with the yield on 10-year government bonds rising to 4.2%.

Expert analysis: Jan Hatzius, Chief Economist at Goldman Sachs, said Powell's speech suggests that the Federal Reserve may raise interest rates by 75 basis points at the November meeting. He believes that the Fed needs to take a more aggressive stance to counter deep-rooted inflationary pressures. Morgan Stanley, on the other hand, expects the Federal Reserve to eventually raise the Interest Rate to a high level of 5% or more.

2. The new UK government introduces a tax reduction plan, and the pound plummets.

Economic background: The UK economy is on the brink of recession, with GDP falling by 0.1% quarter-on-quarter. The inflation rate is as high as 9.9%, reaching a 40-year high. The job market remains robust, but household spending is weakening.

Important event: The new UK Chancellor of the Exchequer, Kwarteng, announced a large-scale tax reduction plan on September 23, aimed at stimulating the rise. The plan includes canceling the previously announced increase in corporate tax rates, suspending the increase in social security contributions, lowering the highest income tax rate, and more. It is expected that this plan will reduce government tax revenue by 450 billion pounds over the next five years.

Market reaction: After the tax reduction plan was announced, the pound plunged to a 37-year new low near 1.03 against the US dollar. The yield of UK government bonds also experienced a significant pump, with the 10-year bond yield surpassing 4.5%. Investors are concerned that the tax reduction plan will further exacerbate inflationary pressures, forcing the Central Bank of England to increase interest rates.

Expert Opinion: Bloomberg economist Dan Hanson believes that this tax reduction plan carries serious fiscal risks and may cause a surge in UK debt levels. He warns that if the Central Bank of the UK does not take decisive action, the pound may further depreciate. Former Governor of the Central Bank of the UK, Jin Ford, bluntly stated that this is a "gamble" that will bring catastrophic consequences to the UK economy.

Six. Regulation & Policy

1. The SFC will promote the implementation of a licensing regime for virtual asset trading platforms.

Policy Background: The Securities and Futures Commission (SFC) of Hong Kong, as the regulatory authority for the securities and futures markets in Hong Kong, is responsible for maintaining fair and orderly market operations. With the rapid development of the virtual asset market, the SFC is actively exploring relevant regulatory measures.

Policy Content: Dr. Huang Tianyou, the newly appointed chairman of the Securities Regulatory Commission, stated that under his leadership, the commission will continue to fulfill the dual roles of regulator and promoter of market development, ensuring fair, transparent, and orderly operation of the local securities and futures markets. One key task is to promote the implementation of a licensing system for virtual asset trading platforms to enhance regulation.

Market Reaction: Industry insiders generally believe that the implementation of the licensing system will bring higher Compliance requirements for virtual asset trading platforms, but at the same time, it will also help improve the transparency and credibility of the industry, laying a foundation for Hong Kong to become a hub for virtual assets. Some major exchanges have started to prepare to meet future regulatory requirements.

Expert Opinion: Chen Jiahua, associate professor of the Chinese University of Hong Kong, believes that the licensing system will establish unified operational standards for virtual asset trading platforms, which is beneficial to protecting the rights and interests of investors. He pointed out that regulatory agencies need to seek a balance between promoting industry development and risk control, and formulate practical and feasible regulatory frameworks.

2. The Financial Services Commission of Korea will establish a virtual asset committee

Policy Background: The Financial Services Commission (FSC) of South Korea is the country's financial regulatory agency responsible for formulating and implementing financial policies. With the development of the cryptocurrency market, the FSC considers it necessary to establish a dedicated committee to regulate the field of virtual assets.

Policy Content: FSC plans to establish a new institution called the "Virtual Asset Committee" within this month, which will be specifically responsible for regulating virtual asset-related affairs. Its top agenda includes discussions on approving the issues of BTC and ETH spot ETFs, as well as whether to allow companies to invest in virtual assets.

Market Reaction: Market participants generally believe that the establishment of a special committee will help accelerate the formulation and implementation of relevant policies. Some Crypto Assets exchanges and investment institutions have expressed their hope that the committee will bring clearer regulatory guidance to the industry.

Expert Opinion: Park Si-yeon, a financial legal expert, believes that the establishment of the Virtual Assets Committee reflects the regulatory authorities' increasing attention to the Cryptocurrency market. He believes that the committee needs to balance the relationship between promoting industry innovation and preventing risks, and to develop a comprehensive and prudent regulatory framework for virtual assets.