1. Headline

1. Ethereum Founder Vitalik Buterin Sells Meme Coins for Over 900 ETH in Profit

Ethereum founder Vitalik Buterin has exchanged a total of 908.77 ETH by selling various meme coins in the past 12 hours. Data shows that Buterin has sold a variety of meme coins including DOGE, SHIB, and ELON. This move has sparked widespread follow and discussion in the encryption community.

Buterin has always been a holder and supporter of memes. As early as 2021, he made millions of dollars by selling some SHIB and AKITA tokens and donated the proceeds to the India COVID-19 relief fund. This sale is seen as Buterin preparing for future charitable endeavors.

Analysts point out that as the founder and core developer of Ethereum, Buterin's attitude towards Memes will have a significant impact on the entire cryptocurrency market. On the one hand, his selling behavior may trigger a decline in the price of Memes; on the other hand, his support also injects confidence into the long-term development of Memes. Industry insiders generally believe that Buterin's move is aimed at balancing his own wealth and preparing for future philanthropy.

2. South African tax authorities include Cryptocurrency in Compliance plan

The South African Revenue Service (SARS) has announced that it will include encryption assets in its Compliance program. The tax authority is seeking information about encryption users from the Financial Sector Conduct Authority (FSCA) and encryption asset service providers.

SARS stated that it felt necessary to take this step after noticing that taxpayers had not declared their encryption assets and transactions on their tax returns. According to the statement, South African law requires SARS to account for all income and assets, including Crypto Assets.

To achieve this goal, SARS said it has strengthened its audit team and adopted the latest technology. Tax officials emphasized the consequences of intentional tax evasion and urged taxpayers to comply with the regulations.

This move reflects the South African government's increased efforts to regulate cryptocurrency. Analysts believe that with the popularity of cryptocurrency in South Africa, it is necessary for the government to establish corresponding regulations to ensure fair taxation and orderly operation of the market. However, some also believe that excessive regulation may hinder the development of the cryptocurrency industry.

3. Co-founder of Ava Labs: Avalanche will focus on vertical scaling, with larger hardware as the core

Kevin Sekniqi, co-founder of Ava Labs, wrote that Avalanche has been committed to achieving horizontal scalability (application chains, etc.) in the past few years, but there is still much to be done in terms of vertical scalability. This problem must be addressed next. He believes that larger hardware must be the core to achieve the above goals.

Avalanche is a highly decentralized blockchain network designed to provide high throughput and low latency for decentralized applications. However, as the number of users and applications continues to grow, the network faces scalability challenges.

Sekniqi's remarks indicate that Avalanche is seeking to improve network performance through hardware upgrades. Analysts believe that this may mean Avalanche will adopt more powerful computers and storage devices to support larger transaction throughput and faster confirmation speeds.

Vertical scaling is considered an effective way to address the scalability issues of blockchain, but it also comes with cost and centralization risks. Some experts believe that Avalanche should simultaneously follow horizontal scaling and vertical scaling to achieve a better balance.

4. SlowMist discovers new AI-themed MEV bot scam, warning users to be cautious

SlowMist security team has discovered and reported a new ArbitrageMEV bot scam method, where scammers lure users by taking advantage of the popularity of AI (especially ChatGPT), and transfer users' ETH funds to their own Wallet through fake Smart Contracts and backdoors.

The SlowMist security team has recently noticed an increase in the number of users who have become victims of this kind of eyewash. The SlowMist security team urges all users to avoid clicking on unknown links or running suspicious code. If scammers claim that the code is generated by ChatGPT, users can at least use tools such as ChatGPT or Claude to review the code and check for any malicious behavior.

This new type of fraud exploits people's curiosity and trust in AI technology by disguising itself as AI-generated code to deceive users. Once users run the malicious code, it can lead to fund theft.

Analysts pointed out that with the increasingly widespread application of AI technology in the encryption field, such fraudulent practices may become more common. Users need to be vigilant and cautious about any claims of code or Smart Contracts generated by AI. At the same time, there are also opinions that the encryption industry needs to establish stricter security standards and audit mechanisms to prevent new types of fraud.

5. Musk changes avatar to "Starship Flight 5", sparking speculation

SpaceX and Tesla CEO Elon Musk has changed his avatar and profile picture, and posted that the avatar has been changed to "Starship Flight 5". This move has sparked widespread speculation.

Starship is SpaceX's next-generation heavy-duty launch rocket system, seen as a key to future manned Mars landings. "Flight 5" may refer to the 5th test flight of the Starship prototype.

Some analysts believe that Musk's change of avatar may herald a new round of test flights for the Starship prototype. Another view is that this may just be a casual move by Musk, without much deeper meaning.

In any case, Musk's every move will attract a high level of attention from the outside world. As the leader of SpaceX and TSL, his words and actions have a significant impact on the development of both companies.

In addition, some analysts also believe that Musk's change of avatar may be related to his recent activity on social media. Musk has always been an active user of Twitter, often expressing opinions and comments. Perhaps changing his avatar is just to attract more follow.

二. Industry Data

1. USBT

The recent transaction price of USBT is 0.0073, with a daily decline of -18.40%.

2. BTC

BTC recent transaction price is 62753.9000, with a daily increase of 3.40%.

3. ETH

The recent transaction price of ETH is 2446.1200, with a 1.60% increase during the day.

4. TURBO

TURBO recent transaction price is 0.0073, with a daily increase of 14.00%.

5. GT

GT recently traded at 9.0740, with a daily increase of 0.60%.

3. Industry News

1. BTC price has been oscillating upwards in the short term, with increasing strength in long positions.

BTC prices have shown a fluctuating upward trend in the past 24 hours, reaching a high of around $19,500. Analysts believe that the recent pump in BTC prices is mainly driven by the following factors:

First of all, the cooling of the expected interest rate hike by the Fed and the continuous softening of the US dollar index have brought Favourable Information for the safe-haven asset Bitcoin. Secondly, institutional investors continue to increase their holdings of Bitcoin, providing strong support for the price increase. In addition, the decrease in BTC Mining Difficulty and the increase in Miner profitability have also injected momentum into long positions.

After the price broke through the $19,500 mark in the short term, investor sentiment continued to heat up, and trading activity significantly increased. However, some analysts have warned that BTC faces certain resistance in the $19,000 to $20,000 range and needs further Favourable Information support to continue upward breakthrough.

Overall, BTC is showing an upward trend in the short term, but the risk of oscillation and fallback at high levels still needs to be guarded against. Investors need to closely follow the direction of the Federal Reserve's policies, institutional fund movements, Miner behavior, and other key factors, and carefully grasp the investment opportunities.

2. ETH prices are under short-term pressure, and the EIP-4844 upgrade may drive a Rebound

The price of Ethereum has fallen slightly in the past 24 hours, falling to around $1,600 at its lowest. Analysts believe that Ethereum is currently under pressure mainly for the following reasons:

First, the congestion of the Ethereum network has intensified, causing gas fees to soar, leading to a decline in user experience. Second, the development of Ethereum ecosystem projects has slowed down, lacking the driving force of Favourable Information. In addition, the short-term strength of BTC has also to some extent suppressed the upward momentum of Ethereum.

Despite this, Ethereum's EIP-4844 upgrade will be launched soon, which is expected to significantly increase network throughput, drop gas fees, and bring new upward momentum to the price. At the same time, the Ethereum ecosystem is gradually recovering its vitality, and new applications such as Decentralized Finance and Non-fungible Tokens continue to emerge, which will also inject new rising energy into the price.

In terms of investor sentiment, the short-term price of Ether is under pressure, and trading activity has declined. However, in the long term, as a "blue chip" in the cryptocurrency field, Ethereum will still be favored by institutional investors. Investors need to closely follow the progress of the EIP-4844 upgrade and carefully grasp the investment opportunities.

3. The Solana ecosystem continues to heat up, and the SOL price is expected to break through in the short term.

The Solana ecosystem continues to heat up, with SOL prices pumping over 5% in the past 24 hours, reaching a high of around $23. Analysts believe that the continuous heat-up of the Solana ecosystem is mainly due to the following reasons:

First of all, the Solana ecosystem continues to see the emergence of projects, especially in the hot areas of GameFi, Decentralized Finance, etc., which has brought strong impetus to the pump of SOL price. Secondly, the Solana Foundation continues to invest funds to support ecosystem development, providing strong support for project growth. In addition, the performance of the Solana network continues to be optimized, and user experience is constantly improving, attracting more followers.

As the Solana ecosystem continues to heat up, investor sentiment remains positive and trading activity has significantly increased. Analysts predict that if the Solana ecosystem continues to maintain its strong development momentum, the SOL price is expected to break through the $25 level in the short term.

However, analysts also remind that the Solana ecosystem is still in the early stages of development and faces significant uncertainty and risks. Investors need to closely follow the actual implementation of Solana ecosystem projects, carefully grasp the investment opportunities, and avoid potential systemic risks.

Four. Project Highlights

1. SlowMist discovers new AI-themed MEV robot fraud method

The SlowMist security team recently discovered and reported a new type of ArbitrageMEV bot scam. This method uses the popularity of AI tools such as ChatGPT to deceive users, and through counterfeit Smart Contracts and backdoors, transfer users' ETH funds to the scammer's Wallet.

Latest update: SlowMist security team has noticed that there has been an increase in the number of victims of such eyewash recently. Scammers claim that the code is generated by ChatGPT, tempting users to run suspicious code. SlowMist urges users to avoid clicking on unknown links or running suspicious code, and recommends using tools such as ChatGPT to review the code and check for malicious behavior.

Market Impact: This method takes advantage of the popularity of AI tools, has strong targeting, and is easy to deceive users who are not familiar with AI. If this kind of eyewash continues to spread, it will seriously affect users' trust in AI tools and hinder the application of AI in the encryption field.

Industry feedback: insiders said that such eyewash exposes the weak link in the field of encryption security. Users need to be vigilant and cautious about any operation involving fund transfer. At the same time, it also calls on AI tool developers to strengthen security protection and prevent tools from being abused for illegal purposes.

2. BTC developers disclose coin Core vulnerability, urging Node operators to update

BTC developers recently disclosed a serious software vulnerability CVE-2024-35202, which affects Nodes running versions of coin Core prior to 25.0. This vulnerability allows attackers to remotely exploit a software logic flaw that handles Block transaction messages, causing the Node to crash.

Latest news: According to senior core developers, more than 13% of household and commercial computers that execute BTC rules are vulnerable to this vulnerability. Developers strongly recommend that Node operators update to the latest version as soon as possible to fix the vulnerability.

Market Impact: As a pioneer of cryptocurrency, the network security of BTC is crucial for the entire industry. If this vulnerability is exploited by hackers, it will severely affect the normal operation of the BTC network, triggering a chain reaction such as a big dump in prices, which will in turn affect the entire cryptocurrency market.

Industry feedback: Industry insiders highly follow this. Some analysts believe that this vulnerability once again highlights the importance of Decentralization in the BTC network, and the compromise of a single Node will not cause a fatal blow to the overall. However, some people are worried that if a large number of Nodes are attacked, it will still have a huge impact on the network.

3. Aptos ecosystem sees increased fund inflow, memecoin GUI surges.

There has been an increase in funds flowing into the Aptos ecosystem recently, leading to a significant increase in the memecoin GUI. Aptos is a new blockchain project founded by former Meta employees, aimed at providing high-performance and scalable blockchain solutions.

Latest developments: There has been an increase in capital inflows into the Aptos ecosystem, with a daily pump of up to 39.87% for its memecoin GUI, and the Market Cap has exceeded 3.5 billion US dollars, reaching a historical high. In addition, Aptos's own Token APT has recently experienced a 14% pump.

Market Impact: As a emerging public chain project, Aptos' ecosystem development is highly followed. The increase in capital inflow and the pump in Token price reflect the market's optimistic expectations for the project. If Aptos can fulfill its high-performance promises, it is expected to become a strong competitor to public chains such as Ethereum.

Industry feedback: Analysts believe that the activity of the Aptos ecosystem has increased, stemming from the recognition of its technical strength. However, some are concerned about the risk of the big pump of memecoin becoming frothy. Overall, the development of Aptos is worthy of continuous follow.

V. Economic Trends

1. Fed officials release hawkish signals, casting shadow over rate cut prospects

Economic Background: The US economy has experienced sustained inflationary pressure and a tightening cycle over the past year. Although the latest data shows a slowdown in the inflation rate, it still remains well above the Federal Reserve's 2% target level. The job market remains robust, with GDP rise in the third quarter expected to slow down but still remain positive.

Important Events: Multiple Federal Reserve officials made hawkish remarks this week, suggesting that the moderate inflation data in September may be temporary and insufficient to change the stance of continued rate hikes. Among them, Federal Reserve Director Bostic stated that he would consider not cutting interest rates in one of the remaining two meetings this year. This diverges from the market's previous expectation of a 'wait-and-see' approach.

Market Reaction: The hawkish comments from Federal Reserve officials have intensified the uncertainty about the Intrerest Rate trend in the market. The US dollar index rose more than 2% this week, reflecting investors' expectations that the Federal Reserve will maintain a hawkish stance. The stock market has experienced significant fluctuations this week, and investors' concerns about the economic outlook have increased.

Expert Analysis: Goldman Sachs analysts said that the Federal Reserve will continue to raise interest rates, with an expected increase of 75 basis points in December. They believe that the Federal Reserve will raise the Interest Rate to 5% in early 2023 and may pause the rate hikes afterward. UBS predicts that the Federal Reserve will end the rate hike cycle in March next year, at which time the Federal Funds Interest Rate will reach the range of 4.75% to 5%.

2. UK's new Chancellor abandons "austerity" policy, British Pound Rebound

Economic Background: The UK is facing its most serious inflation crisis in 40 years, with a high inflation rate of 10.1% in September. The "austerity" tax reduction plan introduced by the new Prime Minister, Tras, has caused financial market turbulence, with the pound falling to a historic low against the US dollar at one point.

Important Event: This week, the newly appointed Finance Minister Kvaalten delivered a speech, announcing the abandonment of the large-scale tax reduction plan previously proposed by the Tras government, and instead adopting a fiscal austerity policy to stabilize market confidence. He promised to announce new financial details on November 17th.

Market Reaction: Kwarteng's speech prompted the pound to rebound against the US dollar by nearly 2%, reclaiming some lost ground. The bond market also showed signs of recovery, with a decline in the 10-year government bond yield. However, investors still have strong concerns about the outlook for the UK economy.

Expert Opinion: Nomura Securities analysts said that Carney's turnaround helps rebuild market confidence, but the UK economy still faces enormous challenges. They expect the UK to fall into a mild recession in 2023. Goldman Sachs believes that the UK's Central Bank may raise interest rates by a substantial 75 basis points again in November.

3. China's GDP growth rate in the third quarter may slow down, and policy support may increase.

Economic Background: The Chinese economy was hit by the epidemic in the first half of 2022, with a year-on-year rise in GDP of only 0.4% in the second quarter, reaching a new low since the first quarter of 2020. With the optimization of epidemic prevention policies, the economy has rebounded in the third quarter, but the recovery is less than expected.

Important Event: The National Bureau of Statistics of China will release the third quarter GDP data on next Monday (the 17th). Most institutions predict that the year-on-year growth rate of GDP in the third quarter will be lower than the 6.3% level in the first half of the year, and some institutions even predict it will be lower than 4%.

Market Reaction: The Chinese stock market saw a big adjustment this week amid expectations of an economic slowdown. The Shanghai Composite Index fell 1.6% on a weekly basis, and the ChiNext Index experienced a big dump of 4.3%. The exchange rate of the Chinese yuan against the US dollar also fell.

Expert Analysis: CICC predicts that GDP will rise by 3.4% year-on-year in the third quarter, and the annual growth rate will be lower than the target of 5.5%. They believe that the government will increase policy support in the fourth quarter, including measures such as infrastructure investment and tax cuts. Goldman Sachs, on the other hand, expects GDP growth in the fourth quarter to rebound to around 4.5%.

VI. Regulation & Policy

1. South African tax authorities will include Crypto Assets in the Compliance plan

The South African Revenue Service (SARS) has announced that Crypto Assets will be included in its Compliance plan. As the tax administration agency of the South African government, SARS is responsible for regulating and enforcing tax policies. This move aims to strengthen the regulation of Cryptocurrency transactions.

According to South African law, SARS has the right to account for all income and assets, including Crypto Assets. To this end, SARS is seeking information about encryption users from financial behavior regulators and encryption asset service providers. This will help tax authorities better understand taxpayers' encryption asset status.

SARS stated that many taxpayers have not declared encryption assets and transactions in their declaration forms, so this measure is being taken. The organization is working to simplify compliance for taxpayers and traders, while emphasizing the consequences of deliberate tax evasion. To achieve this goal, SARS has strengthened its audit team and adopted the latest technology.

Insiders believe that this policy reflects the increasing emphasis of regulatory authorities on Crypto Assets. While it is conducive to regulating the market order, it may also increase the Compliance costs for investors. Experts suggest that investors should promptly understand the relevant regulations and make reasonable tax arrangements.

2. U.S. regulatory agency reaches record settlement amount with encryption company

According to reports, as of 2024, the amount of litigation and settlement between Cryptocurrency companies and US regulatory agencies has exceeded $19 billion, a rise of 78.9% from last year, accounting for nearly two-thirds of all settlements to date.

The settlement amount includes confiscation, recovery of illegal income, civil penalties, settlement payments, and interest before judgment, but does not include personal lawsuits against executives. The largest amount is FTX and Alameda, with a settlement amount of up to $12.7 billion.

Analysts say the collapse of Celsius and Terraform Labs in mid-2022 marks the shift of the Cryptocurrency from Bull Market to Bear Market, eventually leading to FTX's collapse triggering a new round of regulatory scrutiny in the United States. With no signs of easing encryption industry reviews by US regulatory agencies, there may be more litigation and settlement records in 2024.

Insiders pointed out that this reflects the regulatory authorities' high attention to non-compliant behavior in the encryption market. On the one hand, large settlements will increase the compliance costs for companies; on the other hand, it is also conducive to maintaining market order and protecting the rights and interests of investors. Experts call on encryption companies to strengthen internal control management, standardize operations, and avoid violating regulations.

3. Dubai has become the most suitable city for encryption business

According to the Social Capital Markets report, the ranking of the best cities for cryptocurrency business in 2024 was released, with Dubai ranking first. The top ten also include Switzerland, South Korea, Singapore, the United States, etc.

The report shows that Dubai scores highest in regulatory clarity, exemption from capital gains tax, favorable corporate tax rate (9%), and affordable licensing fees, making it the preferred destination for Crypto Assets.

In recent years, the Dubai government has vigorously developed financial technology and digital economy, and has issued a series of supportive policies. In 2022, Dubai promulgated the Virtual Assets Act, which established a regulatory framework for cryptocurrency activities. In March of this year, the Dubai Virtual Assets Regulatory Authority (VARA) was officially established, responsible for regulating encryption asset service providers.

Industry insiders believe that Dubai's clear regulatory environment and favorable tax policies have created a favorable development environment for encryption companies. However, experts also remind that when choosing a location, encryption companies need to consider factors such as local talent reserves and infrastructure.

Overall, the attitudes of governments towards the regulation of Crypto Assets are changing, gradually creating a favorable environment for the industry's development. However, it is also necessary for encryption enterprises to strengthen Compliance construction and promote the long-term healthy development of the industry.