11.3 AI Daily AI MEME frenzy sweeps the encryption market, longer game triggered as the election approaches

1. Headline

1. AI Meme Token sweeps the encryption market, triggering an investment frenzy

“AI-generated Meme Token has recently become popular in the encryption community. Unlike traditional Meme Tokens, AI Meme is created and promoted by artificial intelligence, including creating virtual images for tokens on social media and interacting with users. GOAT, a representative project, saw its Market Cap soar to $270 million just 4 days after its creation, with a price pump of 150 times. Since then, various ‘AI+Meme’ Tokens have entered the market, attracting a large amount of capital.”

The rise of AI Meme originated from the breakthrough of artificial intelligence technology in the field of creative content generation. By training large language models and image generation models, AI can automatically create interesting Meme content based on prompts. Compared with manual creation, AI has higher efficiency and lower cost. In addition, AI can interact with users in real-time and continuously output fresh content.

Analysts believe that AI Meme represents a new trend of integrating encryption assets and artificial intelligence technology. On the one hand, AI technology brings new possibilities for token creation and marketing; on the other hand, tokenization provides incentive mechanisms for AI creative content. In the future, there may be more innovative applications combining AI and encryption assets. However, analysts also warn that AI Meme may have a bubble, and investors need to be cautious.

2. Russian Cryptocurrency Mining Regulatory New Rules Officially Take Effect

The Russian government has established a new regulatory framework for the rising Cryptocurrency Mining industry. The new regulations will take effect on November 1st, aiming to provide regulatory clarity for the industry and address the issues of energy demand and illegal Mining activities.

According to the new regulations, only registered organizations and individual entrepreneurs are allowed to engage in Cryptocurrency Mining. Unregistered individuals who are Russian citizens have a monthly electricity consumption limit of 6000 kilowatt-hours, and exceeding this limit requires registration as a business. Miners also need to fulfill reporting obligations, and the government will establish a Miner registry. In areas with energy shortages, authorities may restrict Mining activities.

Analysis shows that the new regulations have established a legal status for the Russian cryptocurrency mining industry, which is beneficial for attracting more investments. At the same time, energy consumption restrictions and registration requirements will also promote the orderly development of the industry and curb the impact of illegal mining on the power grid. However, excessive regulation may also increase operating costs for miners and affect Russia’s competitiveness in the global mining landscape.

Overall, the introduction of Russian Crypto Assets regulation reflects the government’s desire to achieve risk control while developing the digital economy. The future implementation of the policy may determine the prospects for Russia in this emerging field.

3. The Ethereum ecosystem faces a Crisis of Confidence, and its innovation ability is being questioned

As one of the largest ecosystems in the cryptocurrency field, Ethereum is experiencing an unprecedented crisis of confidence. Since the launch of the Ethereum ETF, funds have been continuously flowing out, exceeding $1.2 billion. From core developers to commercial companies, the entire ecosystem has been hit hard.

Analysis suggests that the lack of innovation ability of Ethereum is the main cause of the crisis. The large number of Airdrop and Liquidity Mining activities have promoted false prosperity, but the real user base is limited. For example, the popular project Friendtech saw a sharp decline in the number of active users after Token issuance. The number of monthly active users of MetaMask has dropped from 30 million during the Bull Market period to 1 million.

Meanwhile, the Ethereum ecosystem lacks a leading direction. Ethereum has become a large Decentralization business entity, but lacks a unified development goal. Vitalik Buterin needs to provide direction for different participants, otherwise the Crisis of Confidence will further escalate.

On the other hand, the Ethereum ecosystem also faces competitive challenges from other public chains. Competitors like Solana have performed well in user rise and community development, attracting some developers and capital inflows.

Overall, the Ethereum ecosystem is at a turning point. If it cannot regain innovation momentum and clarify its development direction, it may be surpassed by other public chains. The industry expects the Ethereum team to provide a strong response and rebuild market confidence.

4. The mysterious Whale made a bold bet on Trump’s victory, causing a public outcry

According to reports, a French trader claiming to be “Théo” has bet over 30 million US dollars on the prediction market Polymarket, expecting Trump to win by a large margin in the election. He holds about 25% of the Trump electoral college victory contracts and over 40% of the popular vote victory contracts.

This huge bet immediately caused a public outcry. Analysts believe that such a large position is almost impossible to withdraw, and traders face extremely high risks. Some argue that this may be a manipulation of the prediction market.

However, the trader denied the accusation and insisted that he was purely for making money without any political motivation. He revealed that he had previously bet on Biden’s victory but suffered a heavy blow, and now sees the opportunity for Trump to turn the tables.

On the other hand, the latest data shows that Trump’s chances of winning have dropped from 67% to 54.9%, and the situation is becoming more and more deadlocked. Analysts point out that such a large bet may affect the direction of the election and cause more uncertainty.

Whatever the motive, this event will further raise the drama of the final stage of the election. Investors need to closely follow the subsequent progress to guard against potential systemic risks.

5. Cryptocurrency exchange Up will launch UXLINK and support Korean won trading

According to official sources, Korean cryptocurrency exchange Up will list UXLINK and support KRW, BTC, and USDT trading pairs. This is the first time UXLINK has been listed for trading on a mainstream exchange.

UXLINK is a Decentralization financial protocol based on the Ethereum, aimed at providing users with permissionless Cryptocurrency lending services. Users can use encryption assets as Collateral to borrow other Tokens such as stablecoins.

Analysts believe that the launch of UXLINK on Up will further promote its popularity in the Korean and Asian markets. As a leading exchange in Korea, Up has a large user base, which can bring Liquidity and visibility to UXLINK.

Meanwhile, UXLINK will also face more regulatory pressure. The South Korean government has been strengthening regulations in areas such as cryptocurrency lending to prevent financial risks. UXLINK needs to demonstrate its compliance and risk control capabilities in order to continue to develop in a regulatory environment.

Overall, the launch of UXLINK on Up is an important step in its development, but it also means more challenges and tests. Its future development prospects depend on product strength and Compliance operation.

二. Industry Data

1. BTC

BTC recently traded at $69,814.8000, with an intraday increase of +0.8%.

2. GT

GT recently traded at $8.5330, with an intraday gain of +0.6%.

3. DOGE

DOGE recently traded at $0.1619, with an intraday gain of +3.7%.

4. ETH

The recent transaction price of ETH is $2507.2200, with an intraday increase of +0.1%.

5. GRASS

GRASS recently traded at $1.8285, with an intraday gain of +60%.

3. Industry News

1. BTC short-term pressure, but long-term prospects remain bullish

BTC has seen a decline in the past 24 hours, hitting a low near $67,000. This decline is mainly influenced by the uncertainty surrounding the upcoming US election. Investors have divergent views on the policies of Trump and Harris, leading to cautious market sentiment.

Analysts point out that whoever is elected president may have a short-term impact on the price of BTC. If Trump is re-elected, his pro-business policies may lead institutional investors to increase their investment in BTC. If Harris is elected, she may strengthen regulation, putting short-term pressure on BTC.

However, in the long run, as a Decentralization digital asset, BTC’s prospects are still bullish. With more and more institutional investors and retail investors joining, the adoption rate of BTC will continue to increase. In addition, the rise of inflation expectations will also drive investors to shift funds to safe-haven assets such as BTC.

Goldman Sachs analysts said:“Despite short-term uncertainties, the long-term prospects of BTC are still bright. As a new asset class, BTC will attract more capital inflows, and its price is expected to continue to pump in the coming years.”

2. Ethereum faces dumping, but the fundamentals remain strong

Ethereum saw a sharp fall in the past 24 hours, with the lowest falling to around $2,400. This fall was mainly affected by investors’ concerns about the results of the US election, which led to the dumping of risk assets.

Analysts pointed out that as the second-largest asset in the field of Cryptocurrency, Ethereum’s price fluctuation often remains consistent with Bitcoin. On the eve of the election, investors generally adopted a risk-averse attitude, leading to the dumping of assets such as Ethereum.

However, in the long run, the fundamentals of Ethereum (ETH) are still strong. As the leader of Smart Contract platforms, the Ethereum ecosystem is rapidly developing. More and more Decentralized Applications (DApps) and Decentralized Finance (DeFi) projects are built on Ethereum.

In addition, Ethereum will soon upgrade to ‘Ethereum 2.0’, which will greatly improve its scalability and efficiency. This upgrade is expected to attract more developers and users to join the Ethereum ecosystem.

Goldman Sachs analysts said:“Despite the Fluctuation in the short term, the long-term prospects of Ethereum are still bright. As a leader in the Smart Contract platform, Ethereum will continue to attract more innovative projects and capital inflows.”

3. The Solana ecosystem continues to expand, and the SOL price is strengthening

The Solana ecosystem has continued to expand over the past quarter, and the price of its native token SOL has experienced a significant pump. According to a report by Messari, the Total Value Locked (TVL) in the Solana ecosystem reached $5.7 billion in the third quarter, ranking third among all public chains.

The rapid development of the Solana ecosystem is mainly due to its high performance and low cost. As a highly scalable blockchain, Solana is able to support a large number of decentralized applications and financial projects. In addition, Solana has attracted a large number of developers and investors to join.

Analysts point out that the continued expansion of the Solana ecosystem will further pump the price of SOL. With more and more projects and funds flowing into the Solana ecosystem, the demand for SOL will continue to increase.

In addition, Solana continues to roll out new upgrades and improvements to enhance its performance and security. These upgrades will further enhance Solana’s competitiveness and attract more users and developers to join.

Goldman Sachs analysts said:“The rapid development of the Solana ecosystem will further pump the SOL price. As a high-performance and low-cost blockchain, Solana will continue to attract more innovative projects and capital inflows.”

IV. Project News

1. Sui Network: The Rise of a New Star in the Move Ecosystem

Sui Network is a new blockchain project created by engineers who have participated in the development of Ethereum and Diem. The project is built on the Move programming language and aims to provide high-performance, low-cost distributed applications.

Latest Update: Sui Network officially released its testnet in May this year and launched the Mainnet in September. The project adopts an innovative parallel execution architecture and a new Consensus Mechanism, significantly improving throughput and scalability. At the same time, Sui also introduces a new digital asset ownership model that allows efficient transfer and composition of assets on-chain.

Market Impact: As a rising star in the Move ecosystem, Sui Network is expected to become another heavyweight project after Aptos. Its outstanding performance and innovative design provide new possibilities for building high-performance DApps. In addition, Sui’s asset model also brings new development opportunities for Non-fungible Tokens and Decentralized Finance (DeFi) sectors.

Industry Feedback: Industry insiders have highly praised the technical strength and development prospects of Sui Network. Analyst Liam Quin from encryption stated, “Sui’s parallel execution architecture and asset model are revolutionary and are expected to drive further development of blockchain technology.” At the same time, Sui has also attracted investments from well-known investment institutions, including Andreessen Horowitz and Jump Crypto.

2. Radiant: The restart of the lending market in the Base ecosystem

Radiant is an important borrowing and lending protocol in the Base ecosystem, providing lending services for encryption assets to users. After a period of suspension, Radiant recently announced the re-launch of the lending market.

Project background: Radiant was launched in August 2022 on the Base ecosystem, it is the first protocol in the ecosystem to provide lending services. However, due to security audits and regulatory reasons, Radiant suspended its lending market shortly after its launch.

Latest developments: After several months of preparation and optimization, Radiant has finally reopened the lending market. Users can now use mainstream assets such as BTC, ETH, USDC, and other encryption assets for lending operations. At the same time, Radiant has also launched a new Risk Management mechanism and Liquidity Mining plan to attract more user participation.

Market Impact: As the first relaunched lending protocol in the Base ecosystem, the recovery of Radiant will bring more Liquidity and vitality to the ecosystem. At the same time, its innovative Risk Management measures will also provide reference for other Decentralized Finance protocols. In addition, the relaunch of Radiant also marks the gradual recovery of the Base ecosystem.

Industry feedback: Decentralized Finance analyst Wilson Withiam said, “The restart of Radiant is an important signal for the recovery of the Base ecosystem. With more high-quality projects joining, Base is expected to become a leader in the Decentralized Finance field again.” At the same time, analysts also appreciate Radiant’s Risk Management measures, believing that this will help improve the security of Decentralized Finance lending.

3. Aptos Labs launches Move VM upgrade plan

Aptos Labs is a company that focuses on the construction of the Move ecosystem. Its flagship product, Aptos Blockchain, is a next-generation blockchain network built on the Move language. Recently, Aptos Labs announced the launch of the Move VM upgrade plan to further enhance the performance and security of the Move ecosystem.

Background: Move is an emerging resource-oriented programming language originally developed by Meta for building the Diem blockchain. After the collapse of the Diem project, Move was adopted by companies like Aptos and became an important language for building the next generation of blockchain networks.

Latest news: Aptos Labs plans to upgrade and optimize Move VM (Virtual Machine) in the coming months. This includes improving execution efficiency, enhancing security, supporting more features, and more. At the same time, Aptos will also closely collaborate with the community, absorb external feedback, and promote the development of the Move ecosystem.

Market Impact: As one of the most active companies in the Move ecosystem, this move by Aptos will directly influence the development direction of the entire ecosystem. The upgrade of Move VM will not only improve the performance of the Move language but also provide a foundation for the birth of more innovative applications. In addition, Aptos’ collaboration with the community will also drive the Move ecosystem towards a more open and diverse direction.

Industry feedback: Move ecosystem builders welcome Aptos’ plans. Sam Server, one of the founders of Mysten Labs, said, “The upgrade of Move VM will bring great momentum to the entire ecosystem, and we are looking forward to it.” At the same time, analysts also pointed out that Aptos needs to focus on coordination with other Move projects during the upgrade process to avoid ecosystem fragmentation.

5. Economic Trends

1. The prospects of the US election have triggered market follow

Economic Background: The U.S. economy experienced a slow recovery in 2024, with a GDP growth rate of around 2%, inflation rate declining but still above the target level of 2%, and unemployment rate remaining relatively high at around 5%. Overall, there is still uncertainty in the economic situation.

Important event: The U.S. presidential election will be held on November 5th. There are significant differences in the policy proposals of the two candidates, Trump and Harris, particularly in areas such as taxation, spending, and trade. The election results will directly impact the future economic policy direction of the United States for the next four years.

Market Reaction: Investors are showing cautious sentiment towards the uncertainty of the election results. The US dollar index has strengthened, reflecting the market’s expectation of Trump’s potential re-election and the implementation of protectionist trade policies. The stock market, on the other hand, has experienced volatility, reflecting differing expectations for the economic policies of the two candidates. Bond yields have risen slightly, indicating market concerns about future inflation and fiscal deficits.

Expert opinion: Morgan Stanley analysts believe that if Trump is re-elected, he may push for a reduction in corporate tax rates, thereby boosting corporate profits and stock market performance, but at the same time exacerbating the fiscal deficit; if Harris is elected, he may raise personal and corporate taxes to ease the fiscal deficit, but it may suppress economic rise. Goldman Sachs analysts believe that regardless of who is elected, it will be difficult to push for large-scale fiscal stimulus policies in the short term, and the pace of economic recovery may slow down.

2. Russia Introduces New Regulations for Cryptocurrency Regulation

Economic Background: The Russian economy performed poorly in 2024, suffering from the dual impact of sanctions from Western countries and a drop in international oil prices. The Russian government has been seeking new economic growth points, and the cryptocurrency industry is seen as a potential opportunity.

Important event: The Russian government recently officially issued new regulations for Cryptocurrency Mining, defining Cryptocurrency Mining as a legal activity and making specific requirements for the operation of Miners, including registration, reporting obligations, power restrictions, etc.

Market Reaction: The Russian cryptocurrency community welcomes this new regulation, believing that it will provide legal certainty for the industry’s development. However, some are concerned that excessive regulation may restrict industry growth. The international market is taking a wait-and-see approach to Russia’s cryptocurrency regulatory policies.

Expert opinion: Russian economists believe that the development of the cryptocurrency industry can attract foreign investment, promote technological innovation, and inject new vitality into the Russian economy. But at the same time, they also warned that it is necessary to prevent cryptocurrency from being abused for illegal activities such as evading sanctions. Experts from the Bank for International Settlements also stated that Russia’s regulatory measures are helpful in curbing the impact of illegal mining activities on the power system.

3. The expectation of the Fed rate hike warming up has caused market Fluctuation

Economic background: In 2024, the US economy is still weak in recovery, with a sustained high inflation rate and a relatively weak labor market. The Federal Reserve has been trying to achieve “moderate interest rate cuts” to stimulate the economy, but the effect has been minimal.

Important event: Federal Reserve Chairman Powell recently made a speech, implying that if inflation continues to rise, the Fed may increase the intensity of interest rate hikes. This has intensified market expectations for a substantial increase in interest rates by the Fed in December.

Market Reaction: Powell’s speech immediately triggered significant market fluctuation. The U.S. dollar index surged, reflecting the market’s response to the expectation of interest rate hikes. The stock market fell in response because rate hikes will increase corporate borrowing costs. Bond yields also saw a noticeable rise.

Expert opinion: Goldman Sachs analysts believe that Powell’s speech is intended to manage expectations for a substantial rate hike in December in order to avoid excessive market reaction. However, they also warned that if the rate hike is too aggressive, it could lead to an economic downturn. Citigroup analysts, on the other hand, believe that the Fed’s determination to raise rates will help contain inflation expectations, but the execution process needs to be highly cautious and transparent.

Six. Regulation & Policy

1. Russia officially introduces Cryptocurrency Mining regulatory framework

The Russian government has recently officially introduced the Cryptocurrency Mining regulatory framework, defining Cryptocurrency Mining as a legal activity and specifying requirements for the safety and operation of Miners. The regulatory framework aims to provide clarity and supervision for Russia’s increasingly rising Cryptocurrency industry, addressing the increasing energy demand and the risk of illegal Mining activities.

According to the new regulations, only registered organizations and individual entrepreneurs can legally engage in Mining. Individuals who are not registered as entrepreneurs are not allowed to consume more than 6000 kilowatt-hours of electricity per month. Any excess usage requires registration as an entrepreneur. In addition, Miners are required to report the total output of Digital Money and transaction Address to the federal tax authority. This information is only accessible to law enforcement agencies. The regulation aims to strengthen supervision, ensuring the compliance and transparency of Mining activities.

Miners must also ensure that their operations comply with standards of reliability, security, and power stability to mitigate risks to the local power grid. Governments may implement mining restrictions in areas with power shortages, which are determined by the Power Development Commission based on recommendations from the Ministry of Energy or local authorities.

Industry insiders welcome the policy, believing that it brings the much-needed regulatory clarity to the Russian cryptocurrency industry in the long run. However, some are concerned that excessive regulation may hinder industry development. Overall, the framework aims to seek a balance between promoting industry development and maintaining energy security.

Dmitry Machikhin, Chairman of the Russian Cryptocurrency Association, said, “This is a step in the right direction, but there is still room for improvement. We need to ensure that regulations are not overly strict to stifle innovation. At the same time, we also need to address energy consumption issues to ensure the sustainability of mining activities.”

2. US regulators urge banks to pause or avoid providing encryption-related services

Recently, Cryptocurrency exchange Coinbase found that the Federal Deposit Insurance Corporation (FDIC) has urged banks to suspend or avoid providing services related to Cryptocurrency in more than 20 cases. This discovery has triggered widespread industry follow and discussion on the attitude of regulatory agencies.

The document submitted by FDIC outlines the agency’s warning to banks about the potential risks associated with encryption assets, focusing on consumer protection, financial stability, and operational security. These documents reveal that as early as March 2022, FDIC urged Financial Institutions to stop encryption projects due to unresolved regulatory issues.

For example, in March 2022, Eric T. Guyot, Assistant Regional Director of the FDIC, urged a bank to “suspend all activities related to encryption assets” because the agency is evaluating potential security and soundness risks associated with the bank’s proposed encryption products. In March of the same year, Jessica A. Kaemingk, another Acting Regional Director of the FDIC, also advised a bank’s board of directors to reconsider its encryption asset plan due to concerns about “security and soundness”.

Coinbase Chief Legal Officer Paul Grewal pointed out that the FDIC’s stance on cryptocurrency may hinder the industry’s ability to access basic banking services more widely. He emphasized Coinbase’s commitment to regulatory transparency and announced that the company will continue to submit Freedom of Information Act requests to further understand the regulatory direction of cryptocurrency.

Industry professionals in the Crypto Assets sector are concerned about this. Kristin Smith, Executive Director of the Blockchain Association, said: “Regulators’ actions are disappointing and could stifle innovation, pushing Crypto Assets companies and users into unregulated territory. We need a clear, consistent regulatory framework instead of this obstructive approach.”

3. The U.S. SEC issues enforcement warning to Ethereum game company Immutable

According to reports, the US Securities and Exchange Commission (SEC) recently issued a “Wells notice” to ETH platform game company Immutable, warning that the company may face enforcement action and be accused of violating securities laws. This move has raised concerns and criticism in the industry regarding SEC regulation in the encryption field.

Immutable means that the SEC’s notification without prior communication or explanation does not comply with the more common and broader investigative procedures. Former SEC official Marc Fagel expressed concern that this approach by the SEC may carry risks, as in typical situations, companies would expect months of interviews or discussions before receiving a Wells notice.

The SEC’s move is seen as another major regulatory crackdown on the encryption industry. Previously, the SEC has issued similar warnings to multiple cryptocurrency exchanges and projects, requiring them to register as securities or face prosecution.

Crypto industry professionals criticize the SEC’s regulatory approach. Jake Chervinsky, Chief Policy Officer of the Blockchain Association, said, “The SEC has once again chosen to be proactive instead of working with the industry to establish clear rules. This approach undermines innovation and pushes encryption companies and investors into legal gray areas.”

However, there are also supporters of the SEC’s position. Tyler Gellasch, former senior SEC official, believes: “The SEC has a responsibility to enforce the law and ensure investor protection. If Immutable indeed issued unregistered securities, the SEC has the right to take action. We need clear rules, not a free-for-all.”

This incident once again highlights the complexity and divergence of Crypto Assets regulation. There needs to be further dialogue between the industry and regulatory agencies to develop clear and consistent rules, promoting a balance between innovation and investor protection.