Today's News Highlights:
Reuters: OpenAI is collaborating with Broadcom and TSMC to create self-designed chips
Insider: Musk's xAI is negotiating a new round of financing at a valuation of $40 billion
dYdX announces layoffs of 35% of its core team members
Consensys lays off 20%, CEO blames SEC abuse of power for the layoffs
DWF Labs has fired a partner accused of "attempted drugging" from management and operational roles
Optimism Foundation provides a grant of 25 million OP tokens to Kraken
Regulatory News
The U.S. Treasury's new financial inclusion strategy does not mention cryptocurrencies
According to CoinDesk, the U.S. Treasury has developed a new financial inclusion strategy to help people access the financial system, but the 35-page report mentions cryptocurrencies only once, to highlight the Treasury's work in marking the industry's harms. Although Vice President Kamala Harris stated during her campaign that she would encourage cryptocurrencies as part of her economic agenda, the current administration has maintained a distance from digital assets, which may be the last mention of cryptocurrencies by the Treasury before next week's elections. The Biden administration's Treasury noted in a report on Tuesday that it "fosters financial inclusion by developing and promoting research," and it released a report on "risks associated with digital assets" in 2022. It is unclear whether the Vice President's office will have any say on the Treasury's latest strategy, but this seems to starkly contrast with her previously open attitude towards cryptocurrencies during the campaign.
Florida CFO proposes using Bitcoin to diversify the state's pension fund
According to Crypto Briefing, Florida Chief Financial Officer Jimmy Patronis has written to the Executive Director of the Florida State Board of Administration, Chris Spencer, requesting a report exploring the feasibility of using Bitcoin and other digital assets as investments for the state pension fund. Patronis cited Florida's strong economic performance and history of innovation as reasons to explore the potential of cryptocurrency investments. He argued that Bitcoin, often referred to as "digital gold," could diversify the state's portfolio and hedge against volatility in other asset classes. He suggested that a "digital currency investment pilot program" would be well-suited for Florida's growth fund, which allows for more innovative and emerging field investments. Patronis's letter highlighted recent developments in the cryptocurrency space, including the national cryptocurrency reserve plan proposed by President Trump and Governor DeSantis's efforts to protect Florida residents from the impacts of central bank digital currencies (CBDCs). The letter also noted other states that have already taken action to invest in cryptocurrencies. Wisconsin and Michigan have allocated a small portion of their pension funds to cryptocurrencies, while the Arizona Senate has advanced efforts to include cryptocurrencies in the state retirement fund. Additionally, Wyoming and Nebraska have enacted laws to attract the cryptocurrency mining industry, including establishing a framework for chartered crypto banks.
PANews reported on October 30 that at the Hong Kong Smartcon 2024 event, Legislative Council Member Kenneth Leung stated that the regulatory framework for stablecoins is expected to be submitted to the Hong Kong Legislative Council next month, with the legislative process potentially taking an additional two to three months, aiming to complete the legislative procedure by early next year. Leung mentioned that the Hong Kong Monetary Authority is currently allowing potential issuers to test their business plans and application scenarios through the "stablecoin issuer sandbox." Additionally, the Hong Kong government will complete the second round of public consultation on the regulation of virtual asset over-the-counter trading (VAOTC) next year. This regulatory measure will specifically target over-the-counter exchanges that operate in physical stores or online platforms, easily accessible to the general public, and provide virtual asset spot trading. Furthermore, Leung revealed that the Hong Kong government will soon submit a proposed licensing system for virtual asset custody services, with public consultation expected next year. Once implemented, this system will regulate the secure custody of digital assets to meet international standards, ensuring that associated risks are properly managed.
SEC Chair under political pressure insists on strengthening regulation through enforcement
According to Bitcoin.com, despite calls for U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler to resign and former President Trump's vow to remove him if re-elected, he reiterated his regulatory approach. On Monday, at a fintech conference in Las Vegas, Gensler reaffirmed his commitment to continue the SEC's work during his tenure. With the elections approaching on November 5, he acknowledged facing political pressure, particularly from the cryptocurrency industry, stating, "Democracy has its consequences, but we will continue to do what we do best at the SEC until the referee blows the whistle, as I have said."
AI
Reuters: OpenAI is collaborating with Broadcom and TSMC to create self-designed chips
According to financial media citing Reuters, sources revealed that OpenAI is working with Broadcom and TSMC to create its first self-designed chip to support its artificial intelligence systems. In addition to Nvidia chips, the company has also added AMD chips to meet its infrastructure needs. Reports indicate that due to cost and time issues, OpenAI has temporarily abandoned plans to establish a network of wafer foundries. Instead, it plans to focus on internal chip design work.
Insider: Musk's xAI is negotiating a new round of financing at a valuation of $40 billion
According to Interface News citing the Wall Street Journal, insiders revealed that Musk's xAI company is in talks with investors for a round of financing, with a valuation expected to reach around $40 billion. Just a few months ago, the startup's last valuation was $24 billion when it raised $6 billion in the spring. Insiders said that xAI hopes to raise billions of dollars in the new round of financing, with the cash raised counting towards the $40 billion valuation. The financing discussions are still in the early stages, meaning terms may change and negotiations could fall through.
Project Updates
Zhao Changpeng states he will appear at Binance Blockchain Week on October 31
When asked when he would appear at the Binance Blockchain Week held in Dubai, former Binance CEO Zhao Changpeng stated that he would likely take the stage around 4 PM Dubai time (8 PM Beijing time) on October 31.
PANews reported that Binance CEO Richard Teng, during the opening speech at Binance Blockchain Week 2024, stated that the crypto industry has shown good momentum this year, starting with the approval of Bitcoin spot ETFs in the U.S., which has gained significant recognition for the industry. Now, the top 200 global wealth institutions all have their blockchain plans, and this momentum will bring greater heights to the industry's future. Our entire industry has gone through many trials, but it is still in its early stages, as the global cryptocurrency ownership rate is still low. He hopes everyone can work together to drive innovation, believing that blockchain technology is a force for good.
Over Protocol has opened airdrop query, with OVER token airdrop allocation accounting for 5.45%
The lightweight node protocol Over Protocol stated in its official blog that airdrop queries are now available on the OverFlex application (currently OverWallet). The airdrop allocation will take place after the mainnet launch, expected between the end of this year and early next year. A total of 15% of the total token supply has been allocated to OCAP, with 54.5 million OVER tokens (5.45%) specifically designated for the airdrop program. The remaining tokens will be used to support marketing, liquidity provision, grant programs, and ecosystem funds. The airdrop program is based on three key criteria: integrity, diligence, and score.
Regarding the upcoming unlocking of 176 million TIA tonight, Taran, the founder of the OTC platform STIX, stated on the X platform that a total of 92.3 million TIA will enter circulation after the unlocking, which will constitute the upper limit of selling pressure in the spot market. TIA has a 21-day unlocking period, and those wishing to unlock TIA for trading on October 31 have already unlocked in advance. The sum of the number of unlocked tokens, the number of tokens in the 21-day unlocking queue, and approximately 24.1 million tokens not accounted for equals 92.3 million TIA. This corresponds to a maximum selling pressure of about $460 million. Another interesting data point is that the increase in (actual) circulating supply has reached a dilution level of 41.8% compared to the current circulating supply. A large number of tokens from the first unlocking have been sold to OTC buyers, who have hedged on perpetual contracts, leading to a surge in open interest over the past few months. It is expected that these short positions will significantly decrease, partially offsetting the selling pressure in the spot market. This capital reset may send a bullish signal to spot buyers. Short positions will continue to decrease until the unlocking, and the funding rate may reset to 0 or a positive value. Investors who missed the October 9 unlocking deadline may also unlock during October, leading to an increase in the spot supply (available for sale) in November. In any case, the supply shock is significant, marking the most notable unlocking event in this cycle. Coupled with the suppression of OTC trading premiums, this could bring a lot of trading activity to this token.
Previously, it was reported that Celestia (TIA) will unlock approximately 175.6 million tokens at 10 PM Beijing time on October 30, accounting for 79.75% of the current circulating supply, valued at approximately $941 million.
Ethereum Layer 2 Network Kroma has launched the KRO airdrop claim page
Kroma, an Ethereum Layer 2 network developed by Lightscale, a subsidiary of South Korean gaming company Wemade, announced on the X platform that it has launched the KRO airdrop claim page, with a 90-day claim period for the first season. Previously, the project stated that it would allocate 17% of the total KRO supply to community airdrops. Please be cautious in identifying the project's official X account and beware of information and links from impersonating accounts.
According to Solana Floor, Canadian listed company Sol Strategies sold $1.71 million worth of Bitcoin and purchased 12,389 SOL, increasing its SOL holdings to $23.51 million. It is reported that Sol Strategies (formerly Cypherpunk Holdings) is a Canada-based company focused on blockchain investments. The company recently underwent a rebranding to reflect its new Solana-centric investment strategy.
Lido integrates Chainlink CCIP to launch new cross-chain staking on Arbitrum, Base, and Optimism
According to Cryptoslate, Lido announced the integration of Chainlink's Cross-Chain Interoperability Protocol (CCIP) to enable cross-chain staking between Ethereum Layer 2 networks such as Arbitrum, Base, and Optimism. This integration will support Lido's direct staking functionality, allowing users to stake ETH from different blockchain networks and receive wstETH. At launch, this feature supports staking through the Arbitrum, Base, and Optimism networks. In addition to staking integration, Lido will utilize Chainlink's data feeds to determine the redemption rate of wstETH on Ethereum, providing reliable data for the exchange rate. Furthermore, Lido will use Chainlink Automation to batch process cross-chain ETH transfers, enhancing liquidity management. Previously, Lido required users to exchange ETH for wstETH through third-party platforms or manually bridge ETH to the Ethereum mainnet.
Circle plans to increase USDC stablecoin exchange fees
According to The Block, stablecoin issuer Circle will increase its exchange fees for the USDC stablecoin. Circle will charge fees for USDC exchanges exceeding $15 million and will impose additional fees for instant redemptions exceeding $2 million per day. These fees start at 0.03% per transaction, with a maximum of 0.1% for redemptions over $15 million. The Block analyzes that not all cryptocurrency practitioners can benefit from the Federal Reserve's interest rate cuts. For stablecoin operators, lower interest rates mean reduced income from cash reserves supporting their tokens. Therefore, it seems reasonable for Circle to adjust fees in the face of a lower interest rate environment and IPO pressures. However, given the increasing competition in the stablecoin space, raising USDC redemption costs is a tricky timing.
Visa partners with Coinbase to provide real-time cryptocurrency purchases via debit cards
According to Bloomberg, Visa Inc. announced a partnership with cryptocurrency exchange Coinbase, allowing Visa customers with eligible debit cards to deposit funds into their Coinbase Global Inc. accounts (sometimes even instantly). According to a statement released on Tuesday, Coinbase has already connected with debit cards for millions of customers, but this new development will enable customers in the U.S. and the EU to achieve real-time fund transfers. Yanilsa Gonzalez Ore, head of Visa Direct North America, stated that eligible Visa debit cardholders can now "seize trading opportunities around the clock." Visa supports the Coinbase debit card, and customers can also use eligible debit cards to purchase cryptocurrencies on Coinbase and withdraw funds from the platform to their bank accounts via the card.
dYdX announces layoffs of 35% of its core team members
Antonio Juliano, the founder of dYdX who recently resumed the CEO position, announced on the official blog that he has decided to lay off 35% of the dYdX core team members. Earlier this month, when Juliano returned to the company as CEO, he first hinted at the need to revitalize the company, stating that he "would enter founder mode."
Consensys lays off 20%, CEO blames SEC abuse of power for the layoffs
According to Fortune, Ethereum infrastructure giant and MetaMask wallet developer Consensys announced layoffs of 20%, affecting over 160 employees. Consensys founder and CEO Joe Lubin stated in a blog post that the layoffs were due to macroeconomic pressures and legal disputes with regulatory agencies. He pointed out that the U.S. Securities and Exchange Commission (SEC)'s enforcement actions against the digital asset industry have led to significant job losses and investment declines, claiming that the SEC's "abuse of power" is a major reason. Since its founding in New York in 2014, Consensys has been dedicated to developing Ethereum-related infrastructure. In recent years, regulatory uncertainty has severely impacted its development, especially as litigation with the SEC is still ongoing. Lubin stated that the layoffs will affect various departments of the company and that generous severance packages, including career support and health insurance, will be provided.
DWF Labs has fired a partner accused of "attempted drugging" from management and operational roles
DWF Labs announced on the X platform that a partner of the institution has been accused of inappropriate and unacceptable behavior. During the investigation of this matter, DWF Labs has decided to immediately terminate the management and operational roles of the aforementioned partner. Previously, X user @hananotsorry claimed that she encountered danger while interacting with a DWF Labs partner, accusing the partner of drugging her, and was subsequently rescued after being informed by relevant restaurant staff. Following the announcement from DWF Labs, the accused former partner Eugene Ng has since deactivated his X account (@Eug_Ng). It is reported that in addition to being a DWF partner, Eugene Ng is also a co-founder of OpenEden, a RWA project invested in by Binance.
Eugene Ng, the former DWF Labs partner who was dismissed due to allegations of "attempted drugging," is also a co-founder of OpenEden, a RWA project invested in by Binance. OpenEden issued a statement saying: "OpenEden has been made aware of recent allegations against its team member. As a platform committed to upholding trust and integrity values, we are disheartened by these allegations concerning this individual's personal conduct. Until further investigation results are available, we will take immediate action to suspend and cancel this individual's management and operational roles within the company and its affiliates. Jeremy Ng remains the CEO, and company operations are unaffected. We hope you understand and will be patient as we address this matter. We will provide timely updates."
Solayer has launched the Solayer USD (sUSD), a decentralized stablecoin protocol based on Solana, which is the first synthetic stablecoin backed by real-world assets (RWA), allowing anyone to participate in tokenized investments in low-risk assets like U.S. Treasury bonds with just $5. Solayer has partnered with OpenEden to convert USDC into sUSD through a non-custodial RFQ market, achieving a fully decentralized and user-owned stablecoin architecture. sUSD is based on a basket of low-risk RWAs, currently supporting U.S. Treasury bonds and set to expand to other assets like gold, with an annual yield of 4.33%. The earnings are automatically distributed in USDC without any additional actions required. sUSD provides users with a convenient channel to redeem back to USDC and aims to integrate blockchain with the real economy through the Solana network.
According to CoinDesk, U.S. cryptocurrency exchange Kraken recently announced that it will build a Layer-2 network called Ink based on the Optimism OP Stack framework, becoming part of the "Superchain" ecosystem. In an agreement reached earlier this year, the Optimism Foundation agreed to provide Kraken with a grant of 25 million OP tokens, valued at approximately $100 million at the time, now worth about $42.5 million. This agreement allows Kraken to use the OP Stack to create its custom Layer-2, with tokens unlocking in monthly batches. Additionally, Kraken becomes another major participant using OP Stack technology to develop a Layer-2 network, following Coinbase, Uniswap, and Sony, further promoting the rapid expansion of the Optimism ecosystem.
Cryptocurrency exchange Gemini announced that it has received preliminary approval for a "Major Payment Institution" (MPI) license issued by the Monetary Authority of Singapore (MAS), allowing it to provide cross-border transfer and digital payment token services in Singapore. Since establishing its Asia-Pacific headquarters in Singapore, Gemini has been continuously expanding its local operations and strengthening its team, including the recent appointment of Saad Ahmed as the head of Asia-Pacific. Gemini plans to continue expanding its Singapore team to attract more top talent to support its compliance and development in the Asia-Pacific region.
Ethereum staking reward rate remains around 3% in Q3, lower than yields of other PoS chains
According to The Block, the staking yield on the Ethereum network remained at about 3% in the third quarter of 2024, down from over 3.5% in July. Analysts point out that Ethereum's staking returns are lower than those of other major Layer 1 protocols, such as Cosmos, Polkadot, Celestia, and Solana, which have yields ranging from 7% to 21%.
The low staking yield helps reduce the inflationary pressure on the network. Kaiko analysis indicates that the Ethereum validator queue has averaged less than a day this year, a significant decrease from the peak of 45 days in June 2023. Despite a decrease in on-chain activity and staking demand, the supply of stETH from the major staking service provider Lido has remained stable year-to-date, with growth slowing to about 9.6 million ETH, reflecting a slowdown in the overall growth rate of staked assets.
BNB Chain has announced the 35 projects selected for its eighth season of the "Most Valuable Builder (MVB)" accelerator program, which include: DeFi projects: Allo.xyz, Avalon, CarbonFi, Evoq Finance, Paimon, RateX, SparkleX, uDEX, Vanilla Finance, YieldFi, YieldNest; Infrastructure projects: Alaya AI, APRO Oracle, Balloon Dogs, BAS, Blockus, Codatta, CodexField, Infinity Ground, Matchain, Yotta Labs; Application layer projects: Alias, Alt.town, Balance, Bando, Cat Gold Miner, Four.meme, Gameland, GamerBoom, GraFun, Meet48, Moso, Nomis, REVOX, and TaleX. These projects will showcase their results on Demo Day on November 7, and Binance Labs will make investment decisions based on performance.
Last year's MVB program incubated 13 projects, and Binance Labs invested in the top 5 projects from Season 7. These projects include Aggregata, Blum, Opinion Labs, SideKick, and Vooi.
Funding News
The Bitcoin liquid staking platform PumpBTC announced the completion of a $10 million seed round funding, led by SevenX Ventures and Mirana Ventures, with participation from well-known institutions such as UTXO and Mantle Ecosystem Fund, and attracted several industry partners including Quantstamp and Veda. This funding will help PumpBTC launch a new product, BTC-Fi, which is a CeDeFi BTC liquidity vault that combines CeFi-level security with DeFi's BTC yield optimization, providing automated yield strategies that allow Bitcoin holders to maximize their returns.
Since its launch in July 2024, PumpBTC has been deployed on over 10 public chains, attracting a total locked amount of 3,400 BTC (approximately $240 million) and collaborating with over 70 projects to build a multi-chain, multi-partner ecosystem, further promoting the development of CeDeFi.
Important Data
According to SoSoValue data, as of the time of writing, the total net asset value of Bitcoin spot ETFs is $72.545 billion, with an ETF net asset ratio (market cap compared to total Bitcoin market cap) reaching 5.07%, marking the first time it has exceeded 5%.
Additionally, it is noteworthy that yesterday (October 29, Eastern Time), the total net inflow of Bitcoin spot ETFs was $870 million, the third highest single-day net inflow in history. The other two highest net inflows were $1.05 billion on March 12 and $887 million on June 4.
Wintermute holds 11 out of the top 20 Meme coins listed on Binance, accounting for 55%
On-chain analyst @ai_9684xtpa released an overview of Wintermute's market-making projects, stating that the Meme projects chosen by Wintermute for market-making generally have high market capitalizations, with 90% of the tokens in its top 20 holdings exceeding $100 million, and 30% exceeding $1 billion, with PEPE and COK being the highest and lowest market cap market-making projects, respectively.
In the situation above: Among the top 20 Meme coins held by Wintermute, 11 projects have already been listed on Binance, accounting for as high as 55%.
Already listed in spot: PEPE, NEIRO (lowercase), BONK, WIF, FLOKI, BABYDOGE;
Already listed in futures: PEPE, BONK, WIF, MOODENG, GOAT, MEW, NEIRO (uppercase), POPCAT, FLOKI, BABYDOGE.
A smart money address sold 135 WBTC for profit after BTC broke $73,000
According to Lookonchain monitoring, after the BTC price broke $73,000, a smart money address sold 135 WBTC (approximately $9.86 million) for profit. Over the past three months, this address made $5.5 million by going long on BTC and ETH through circular loans on Aave. It bought 285.4 WBTC (approximately $16.75 million) at a price of $58,688, making a profit of $4 million; and bought 4,850 ETH (approximately $11.29 million) at a price of $2,329, making a profit of $1.5 million.
A whale accumulated 600 BTC two hours ago, approximately $43.33 million
According to Lookonchain monitoring, a whale accumulated 600 BTC two hours ago, approximately $43.33 million. This whale has accumulated a total of 2,000 BTC (approximately $144.82 million) over the past two weeks, with an unrealized profit of $6.3 million.
BlockFi transfers 12,067 ETH to Coinbase Prime, approximately $31.69 million
According to on-chain analyst Yu Jin, the bankrupt crypto lending platform BlockFi transferred 12,067 ETH (approximately $31.69 million) to Coinbase Prime five hours ago.
Tether mints 1 billion authorized but unissued USDT on the Tron network
According to Whale Alert, at 04:43:51 Beijing time, Tether Treasury minted an additional 1 billion USDT on the Tron network. Tether CEO Paolo Ardoino stated that this 1 billion USDT is a supplement to the Tron inventory. This is an authorized but unissued transaction, meaning that this increase will be used for the next issuance request and cross-chain exchange inventory.
BTC breaks $73,000, daily increase of 0.92%
According to OKX market data, BTC has just broken through $73,000, currently priced at $73,065.80 per coin, with a daily increase of 0.92%.
Greeks.live macro analyst Adam posted on X platform that the options market saw a one-month high in trading volume today, with a total of over $1 billion in large trades, stimulated by Bitcoin's price breaking $72,000. Among these, the trading volume for call options was about $700 million, while put options accounted for about $300 million. Notably, there was a ratio spread strategy trade: a large holder sold 250 call options with a strike price of $75,000 while buying 500 call options with a strike price of $90,000, indicating their expectation that Bitcoin may not exceed the new high, but if it does break through, it could quickly surge to $100,000. This trading strategy saved approximately $13,000 in slippage through block trading, showcasing a bold and clever market layout.
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