一. Headlines

1. Cryptocurrency exchange X was attacked by hackers, resulting in a loss of up to $21 million.

X is a Cryptocurrency exchange, with user funds held in a centralized wallet. On November 18, the exchange was attacked by a Hacker, resulting in approximately $21 million worth of Cryptocurrency being stolen. The incident exposed the security vulnerability of centrally held Private Keys.

According to the report from blockchain security company SMist, as of November 18th, more than 1100 reports of fund theft from the community have been received. After deduplication, it is confirmed that over 900 users are affected, with an estimated total loss of 21 million US dollars.

The event has once again triggered widespread concern for the security of Cryptocurrency. Industry insiders point out that high returns often come with high risks. Users should not have a lucky mentality and must attach great importance to Private Key management and asset security. In the encryption ecosystem, security always comes first, and benefits only have practical significance under the premise of security guarantee.

In addition, some analysts believe that the incident may accelerate the development of Decentralization wallets and Trustless architecture. Compared to centralized custody, Decentralization wallets can maximize the security of user assets. In the future, the Cryptocurrency industry may move towards Decentralization to improve overall security.

2. BTC continues to soar, triggering discussions about becoming a strategic reserve asset for the United States

Driven by the results of the US election, the price of BTC continues to soar, sparking heated discussions about including it in the US strategic reserve assets. However, achieving this goal still requires crossing multiple "hurdles".

The trading price of Bitcoin has experienced a significant pump in the short term, possibly influenced by multiple reasons, including the Fed rate cut, the results of the U.S. election, etc., and the topic of the U.S. pushing Bitcoin to become a national strategic reserve asset is gaining traction.

However, to make BTC a true national reserve asset in the United States, it still needs to pass through multiple "hurdles". At the policy level, classifying BTC as a strategic reserve asset requires a complex legislative process, involving coordination and balancing of multiple regulatory agencies' interests. In addition, traditional Financial Institutions in the United States, conservative lawmakers, and interest groups skeptical of digital assets may concentrate their opposition, making implementation challenging.

In terms of market and regulation, Bitcoin prices fluctuate violently, with a significant gap from the stability requirements of reserves, requiring a more comprehensive legal framework. In addition, this move may alert other countries in the world and intensify friction in the international financial sector.

3. VC Canonical founder SEKOIA said he will devote himself to AI agent encryption.

On November 19th, AI agency TokenSEKOIA's single-day increase reached 442%, currently priced at $0.02322 with a market capitalization of $23.22 million. Previously, the founder of encryption VC Canonical, who invested in well-known encryption AI projects such as Gensyn, Ritual, and Sahara, said that he will devote himself to the project and make its first investment soon.

SEKOIA is a Decentralization AI agent platform aimed at providing users with personalized AI assistants. Users can train and deploy their own AI models on the platform and interact with them.

Analysts believe that SEKOIA represents a new trend of combining AI and Cryptocurrency. Compared to centralized AI services, Decentralization AI platforms can better protect user privacy while providing more personalized and customized services.

In addition, AI technology has broad application prospects in the field of Crypto Assets, such as intelligent trading, predictive analysis, etc. In the future, AI may become an important driving force in the Crypto Assets industry.

SEKOIA's popularity also reflects investors' enthusiasm for the AI ​​track. With the continuous development of AI technology, it is expected that more AI projects will enter the Crypto Assets field, bringing users a brand new experience.

4. Hong Kong exchange launches virtual asset index series, expected to accelerate the introduction of new Tokens.

Hong Kong exchange has launched a series of virtual asset indexes, seen as a milestone moment in the development of the virtual asset market. This move is expected to accelerate the introduction of new Tokens and drive innovation in virtual asset products.

Hong Kong exchange has rich experience in providing market data services, and the newly launched virtual asset index has high credibility and influence. The launch of the index will provide reliable pricing tools for institutional investors, helping to attract more funds into the virtual asset market.

At the same time, the publication of the index has also laid the foundation for the future launch of related Derivatives and other innovative products. Once the regulatory policies are clear, Hong Kong exchange is expected to become an important hub for virtual asset product issuance.

However, some analysts have pointed out that the virtual asset market is still in its early stages, with significant fluctuations and investment risks that cannot be ignored. Regulatory agencies need to strike a balance between promoting innovation and preventing risks, and create a good environment for the healthy development of the industry.

In general, the move by Hong Kong exchange reflects that traditional Financial Institutions are gradually embracing virtual assets and is expected to drive the industry towards a more standardized and transparent direction.

5. The first 'Liberalan Cup' National Debate Competition opens for registration, focusing on the development trend of memes.

The first "Libra Cup" national debate competition jointly held by Huobi and SunPump officially opens for registration. This event will focus on hot topics such as the trend of meme coins in the market and investment strategies.

Meme coins are a new force to be reckoned with in the cryptocurrency market in recent years. With unique cultural connotations and community marketing, meme coins continue to attract new investors to join.

This debate will bring together the most influential KOLs and industry experts in the Cryptocurrency field to discuss in-depth the development prospects of memes coins, investment logic, and other issues. The participating players will form 12 teams to debate on relevant topics.

The event aims to promote the spirit of freedom and innovation, and convey the value concept of "innovation, freedom, and cooperation" of Gate.io. Through the form of debate, it is expected to provide new ideas and directions for the future development of Memes.

Analysts say that the memes market is experiencing rapid development, but also faces risks of bubbles and speculation. Professional analysis and debate can help investors rationally assess memes and grasp their development trends.

二. Industry Data

1. BTC

BTC recently traded at $91,727.7000, with a daily increase of 1.3000%.

2. DOGE

DOGE recently traded at $0.3752, with a daily increase of 4.5000%.

3. BAN

BAN recently traded at $0.2307, with a daily increase of 28.9000%.

4. GT

GT recent transaction price is $9.7750, with a daily decline of -1.0000%.

5. ETH

ETH recent transaction price is $3131.2800, with a daily decline of -0.2000%.

III. Industry News

1. BTC price breaks through the $92,000 mark, sparking market discussions

The price of Bitcoin has broken through the $92,000 mark in the past 24 hours, setting a new historical high. This strong performance is mainly driven by expectations that the Trump administration will establish a strategic reserve of Bitcoin. Analysts believe that if the US government really includes Bitcoin in its national reserve assets, it will greatly enhance Bitcoin's position and influence in the global financial system.

At the same time, the volume and open interest of BTC futures contracts have also risen significantly, reflecting the increasing demand of institutional investors for Bitcoin. However, some analysts have warned that the sharp fluctuations in BTC price may pose greater challenges to regulatory authorities, requiring close attention to policy changes.

In general, the pump in BTC price is mainly driven by optimistic sentiment, but to achieve long-term sustainable development, it still requires support from regulatory policies and improvement in market liquidity. Investors need to carefully assess risks and take a rational view of price fluctuations.

2. Ethereum encounters stagnation and fails to follow Bitcoin's pace

Despite the continuous rise in BTC price, ETH has not been able to keep up with its pace and has encountered stagnation around $3200. Analysts point out that ETH is facing multiple challenges, including the gap between expectations and reality, the failure of ETH ETF listing, the impact of ETH upgrade, and concerns caused by Vitalik dumping, all of which have to some extent suppressed the pump momentum of ETH price.

At the same time, the absence of Ethereum in the emerging trends has also become a constraint on its development. Ethereum needs to find a new balance between layer two scalability and other emerging narrative waves in order to maintain its core value. However, Ethereum remains a key force in the Decentralized Finance ecosystem, and its future development prospects are still worth looking forward to.

Investors need to follow the progress of Ethereum in technological innovation and ecosystem construction, carefully evaluate risks, and seize opportunities.

3. The Solana ecosystem continues to heat up, and the SOL price is expected to break through its historical high.

The Solana ecosystem continues to heat up, with the SOL token price pumping over 10% in the past 24 hours and currently trading at around $45. Analysts believe that the continued growth and development of the Solana ecosystem is the main driving force behind the pump in SOL price.

Solana has attracted many institutions and retail investors with its advantages of fast transactions and low fees, and the volume and holdings continue to rise. In addition, the continuous emergence of new projects and Decentralization applications in the Solana ecosystem has injected new momentum into the pump of SOL price.

However, analysts also remind that the overall trend of the macroeconomic situation and the Cryptocurrency market may affect the development pace of Solana. Investors need to closely follow the progress of the Solana ecosystem, carefully evaluate risks, and seize opportunities.

Overall, the continued warming of the Solana ecosystem has laid the foundation for SOL to break through its historical highs, but investors still need to maintain a cautious and optimistic attitude.

Four. Project Highlights

1. Decentralized AI project Morpheus announced the launch of Mainnet

Morpheus is a Decentralization artificial intelligence project aimed at addressing issues such as centralization, censorship, and data monopolies in the field of artificial intelligence. The project was launched on the public testnet in July and recently announced the launch on the Mainnet.

Morpheus uses the code library of Lumerin built on the Arrum blockchain protocol, promising to provide personalized artificial intelligence services to individuals, known as "intelligent agents". These intelligent agents can empower individuals like personal computers and search engines did decades ago. Morpheus recently joined the DecentralizationAI Association, an industry organization dedicated to combating the tech giants' significant control over AI data.

The launch of Morpheus marks an important step in the field of Decentralization AI. Traditional artificial intelligence systems have censorship and privacy issues due to centralized architecture and data monopolies. Decentralization AI is expected to solve these problems and provide users with more fair, transparent, and private artificial intelligence services. However, the field is still in its infancy, and the development of pioneering projects such as Morpheus is worth following.

Industry insiders welcome decentralized AI projects like Morpheus, believing that this will push the field of artificial intelligence towards a more open and democratic direction. However, some analysts are concerned that decentralized AI may bring new challenges, such as Computing Power resource allocation, model training efficiency, etc., requiring continuous innovation and improvement in related technologies.

2. AI16z faces "case dispute", new Token ELIZA triggers community dissatisfaction

Solana's AI-driven VC DAO ai16z recently announced that it will no longer support its incubated AI agent eliza, and will instead launch a new token called ELIZA. Within 15 minutes of the announcement, the market capitalization of the original elizaToken plummeted by nearly 90%.

This move by ai16z has sparked strong dissatisfaction among the community and the original Eliza team. Data shows that the 'conspiracy group' behind the new ELIZA controls 90% of the token supply. The community believes that ai16z's actions are a form of 'internal manipulation' that seriously harms the interests of investors.

On the other hand, a16z argued that the launch of the new Token ELIZA is to better support its AI agent project's development. However, the community is not buying it, questioning whether a16z is truly committed to promoting AI technological innovation or more driven by speculative motives.

This incident has once again triggered a discussion in the encryption community about the 'uppercase-lowercase dispute.' Some people believe that the arbitrary launch of new Tokens and the abandonment of old Tokens by the project party have undermined the trust foundation of Crypto Assets. However, some people believe that the capitalization of Token names is only a formal issue, and the project party has the right to adjust Token settings according to development needs.

Anyway, ai16z's operation this time has triggered strong dissatisfaction in the community, and whether its new token ELIZA can gain market acceptance remains to be seen. This event also sounds the alarm again, reminding investors to be extra cautious when investing in encryption projects, and to pay attention to the integrity and development planning of the project party.

3. Sui ecosystem continues to expand, Move project triggers market follow

During the TOKEN2049 conference, the Sui, Aptos, and Movement projects in the Move ecosystem have attracted widespread following in the market. Among them, the Sui token experienced a big pump and reached a new high in futures contracts, reflecting the market's enthusiasm for the project.

Sui is a new public chain based on the Move language, founded by former Meta employees and supported by well-known institutions such as Andresseen Horowitz. The Sui ecosystem is currently expanding rapidly and has attracted well-known projects such as Cetus to settle in.

At the same time, Aptos and Movement, as two other projects in the Move series, are also widely followed by the market. Analysts believe that the correlation between the Move language and the Rust language makes it easier for projects in the Solana ecosystem to migrate to the Move series.

The rise of the Move project is mainly due to two factors: first, the overflow of Solana ecosystem's traffic, developers and speculators are seeking new tracks; second, the technical advantages of the Move language itself, such as compatibility with Rust, better security, etc.

However, the Move ecosystem currently has some shortcomings, such as a relatively small number of tradable assets and a lack of star projects. But in the long run, Move is expected to become another important public chain ecosystem after EVM.

Industry insiders are optimistic about the development of the Move ecosystem. Some analysts believe that the Move project may become the next 'Polygon' or 'Avalanche', achieving explosive rise in the next cycle. However, some also remind that the Move ecosystem still needs time to accumulate projects and users, and the future development prospects still need further observation.

4. The Solana ecosystem continues to heat up, and SOL is expected to hit $500.

During the TOKEN2049 conference, the Solana ecosystem continues to heat up, and SOL is expected to break through historical highs, challenging the $500 mark.

Solana is a high-performance public chain that has been leading the development of the encryption track in the past year. Innovative projects and popular applications continue to emerge within its ecosystem, attracting a large influx of funds and users. Data shows that Solana's volume has exceeded historical peak weekly volume by over 100%.

Analysts believe that the continued heat of the Solana ecosystem is mainly due to its excellent performance. Solana is able to provide a throughput of up to 65,000 transactions per second and Money Laundering as low as $0.000001, significantly outperforming traditional public chains such as BTC and Ethereum.

Meanwhile, the Solana ecosystem is expanding. More and more Decentralized Finance, Non-fungible Token, GameFi, and other projects are choosing to deploy on Solana to achieve a better user experience. Data shows that the total value locked (TVL) in the Solana ecosystem has exceeded $10 billion.

From the perspective of Technical Analysis, the monthly chart of SOL has formed a "golden cup" pattern. Once it breaks through the historical high, its target price will reach the range of $400-$500. However, SOL still faces certain obstacles in breaking through the key resistance level.

Overall, the continued warming of the Solana ecosystem has brought favorable conditions for the SOL price pump. However, investors also need to pay attention to potential risks, such as security vulnerabilities and regulatory pressure caused by the over-expansion of the ecosystem. When investing in Solana ecosystem projects, it is necessary to comprehensively evaluate the risk-return situation.

5. The AI track continues to heat up, and traditional AI companies are turning to Web3

During the TOKEN2049 conference, the AI track continues to heat up, attracting many traditional AI companies and entrepreneurs to move to the Web3 field.

In the past year, the AI track has been one of the most popular hotspots in the encryption industry. From ChatGPT to Midjourney, artificial intelligence technology continues to refresh people's cognitive boundaries. At the same time, the rise of the Web3 concept has also brought new development opportunities for AI technology.

At the TOKEN2049 conference, we saw the presence of many traditional AI companies and entrepreneurs, such as Gensyn, Hyperbolic, Schelling AI, etc. They have all shifted to the Web3 field, hoping to integrate artificial intelligence with blockchain, cryptocurrency, and other emerging technologies, and explore new business models.

Title.xyz is a typical case. The project is committed to building a Midjourney style image/video generation model and deploying it on-chain to achieve decentralization and fairness.

Analysts believe that AI+Web3 will be an important direction for future development. Web3 technology can provide a decentralized infrastructure for artificial intelligence, solving issues such as data privacy and computing power resources. Meanwhile, artificial intelligence can empower Web3 applications and enhance user experience.

However, AI+Web3 is still a new frontier with many uncertainties. Some people worry that AI technology may be abused for illegal purposes such as creating "robotic armies". Therefore, the establishment of relevant regulations and ethical guidelines is crucial.

Generally speaking, the continuous heating up of the AI track has brought new development opportunities to the encryption industry. We have reason to believe that more innovative applications of AI+Web3 will emerge in the future, driving the entire industry forward.

V. Economic Trends

1. US inflation data meets expectations, Crypto Assets market reacts positively

Economic Background: The U.S. economy experienced a slow but steady recovery in 2024. The third quarter GDP annual growth rate was 2.6%, slightly lower than the 2.9% in the previous quarter, but overall in line with expectations. The inflation rate moderated to 6.3% in October, but still remained above the Fed's target level of 2%. The unemployment rate hovered around 4.5%, keeping the job market relatively stable.

Important event: The US Bureau of Labor Statistics released the consumer price index (CPI) data for October on November 18, which showed an annual inflation rate of 6.3% and a monthly pump of 0.4%, both in line with market expectations. This data has eased concerns in the market about continued high inflation and relieved some pressure on the Federal Reserve's interest rate decision meeting in December.

Market Reaction: Investors' reaction to inflation data is generally positive. The S&P 500 rose 0.87% on the day, and the Dow Jones Industrial Average rose 0.59%. The cryptocurrency market also saw widespread gains, with BTC rising 2.1% on the day and breaking through the $17,000 mark. Analysts believe that easing inflation pressures are expected to slow down the pace of interest rate hikes by the Federal Reserve, which will be Favourable Information for risk assets.

Expert opinion: Goldman Sachs Chief Economist Jan Hatzius stated: "While inflation pressures have eased somewhat, they are still at elevated levels. The Fed may raise rates by another 50 basis points in December and hint at the start of a rate-cutting cycle in 2025." UBS analysts believe that inflation data is in line with expectations, and the response in the Crypto Assets market indicates that investors are more optimistic about the economic outlook.

2. China Introduces New Policies to Support Manufacturing Industry, Foreign-Funded Enterprises Continue to Have Confidence in the Chinese Market

Economic Background: The Chinese economy gradually emerged from the shadow of the epidemic in 2024, and the manufacturing industry played an important role as a pillar industry. In the first three quarters, the added value of industrial enterprises above designated size rose by 5.6% year on year. However, the manufacturing industry also faces challenges such as rising raw material prices and labor shortages, and further policy support is needed.

Important events: The General Office of the State Council of China recently issued the "Several Policy Measures for Further Promoting the High-quality Development of the Manufacturing Industry", proposing a series of new policies in terms of tax and fee reduction, financing support, and talent cultivation, aiming to enhance the quality and core competitiveness of the manufacturing industry.

Market Reaction: This move has received a warm response from the business community. According to incomplete statistics, more than 20 foreign-funded enterprises have announced plans to increase investment in China, involving multiple sectors such as electronics, automotive, and chemicals. Among them, the German company BMW plans to build a new battery factory in China by 2025.

Expert opinion: Liu Jipeng, Dean of the Chongyang Institute for Financial Studies at Renmin University of China, said that the manufacturing industry is the lifeblood of the Chinese economy, and the new policy reflects the government's determination to support the real economy. He believes that the policy will be conducive to attracting more foreign investment and upgrading the modernization level of the industrial chain.

3. The European Central Bank raised interest rates by 75 basis points, and the euro area economy may fall into recession

Economic Background: The Eurozone economy faces significant challenges in 2024. Due to the impact of the Russia-Ukraine conflict and the energy crisis, the GDP declined by 0.4% quarter-on-quarter in the third quarter, and the inflation rate rose to 10.6% in October. The unemployment rate hovers around 6.6%, and the job market is weak.

Important event: To curb upward inflationary pressure, the European Central Bank decided to raise interest rates by 75 basis points once again at its monetary policy meeting on November 17th. This is the fourth consecutive significant interest rate hike by the European Central Bank. ECB President Lagarde emphasized that decisive action will continue until the inflation rate returns to the target range of 2%.

Market reaction: The euro rose nearly 1% against the dollar to $1.0385 on the day. European stock markets generally fell, with the STOXX 600 index falling 0.5%. Investors are concerned that the pace of interest rate hikes may further weigh on the eurozone economy and push up unemployment.

Expert opinion: Deutsche Bank's macroeconomist Sven Jari Stehn said that the decision of the European Central Bank is in line with expectations, but the economic prospects of the euro area are gloomy. He predicts that the eurozone economy will experience a mild recession in the first half of 2025. Goldman Sachs believes that the European Central Bank still has room for further interest rate hikes and expects the eurozone inflation rate to fall to around 3% in 2025.

Six. Regulation & Policy

1. Russia plans to impose a 15% tax on cryptocurrency income

The Russian Ministry of Finance has proposed a draft amendment suggesting a 15% personal income tax on cryptocurrency income. This move aims to regulate cryptocurrency mining and trading activities and provide new sources of tax revenue for the government.

The specific provisions of the draft stipulate that the Miner will calculate the taxable income based on the market value when receiving Cryptocurrency, and allow the deduction of related operating expenses. This means that the tax framework for Cryptocurrency Miners will undergo significant changes, requiring more transparent disclosure of income and expenses.

The Russian government's move reflects its desire to strengthen regulation in the field of Crypto Assets. With the increasing popularity of Crypto Assets in Russia, the government believes it is necessary to establish a corresponding tax system to ensure a fair competitive environment and prevent tax evasion.

Industry insiders have mixed reactions to this policy. Supporters believe that a reasonable tax system will contribute to the long-term development of the cryptocurrency industry, while critics are concerned that high tax rates will hinder industry innovation. The Chairman of the Russian Cryptocurrency Association stated that a 15% tax rate is relatively reasonable, but further details of implementation still need to be improved.

2. The U.S. Securities and Exchange Commission strengthens regulation of cryptocurrency mixers

U.S. senators recently wrote to U.S. Treasury Secretary Yellen, urging increased regulation of Crypto Assets mixers. The senators believe that mixers pose serious national security risks and are used for evading sanctions and other illegal activities such as Money Laundering.

The mixer is a Cryptocurrency service that combines funds from multiple Cryptocurrency Addresses to obscure the source and destination of transactions. While it has legitimate uses, mixers are also used to evade sanctions, Money Laundering, and other illegal financial activities.

Senators stated in the letter that despite being sanctioned, Tornado Cash is still operating online and continues to function as a Smart Contract for Decentralization. They requested the Treasury Department to answer questions about the Cryptocurrency mixer by December 2, including estimates of Tornado Cash activity, whether sanctions have led to an increase in suspicious activity reports, and whether additional sanctions are being considered.

This move reflects the US government's increased regulatory efforts in the field of Crypto Assets. As Cryptocurrency is being increasingly used for illegal activities, the government hopes to curb these behaviors and maintain the security and stability of the financial system through regulation.

But there are also concerns among industry insiders. They believe that excessive regulation may hinder the innovative development of cryptocurrency technology and infringe on user privacy. Seeking a reasonable balance in regulation will be a challenge.

3. The Swiss Financial Regulatory Authority strengthens regulation of Crypto Assets

The Swiss Financial Market Supervisory Authority (FINMA) emphasizes in its annual risk monitoring report that it will strengthen regulation in the Cryptocurrency field to combat Money Laundering and financial crime risks such as evading sanctions.

The report points out that Cryptocurrency, especially Stable Coin, is increasingly associated with Money Laundering and other illegal activities, including being used to evade sanctions and Darknet transactions, which exacerbates the concerns of financial regulatory agencies.

To address these risks, FINMA has taken measures targeting institutions to impose stricter scrutiny on Swiss Financial Intermediary institutions providing encryption-related services. This includes strengthening anti-Money Laundering and "Know Your Customer" procedures, as well as conducting stricter due diligence on Cryptocurrency trading activities.

FINMA stated that it will continue to closely follow the development of the cryptocurrency market and take further regulatory measures as needed. At the same time, the authority also called on cryptocurrency companies to strengthen internal control and compliance management to drop financial crime risks.

Industry insiders have different views on FINMA's measures. Supporters believe that strengthening regulation helps curb illegal activities and improve the transparency and trustworthiness of the industry. However, some people are concerned that excessive regulation will stifle innovation and impact Switzerland's position as a center for cryptocurrencies.

Overall, FINMA's regulatory measures reflect the increasing follow of global regulatory authorities in the field of Cryptocurrency. Striking a balance between promoting innovation and preventing risks will be a major challenge in the future.