11.16 AI Daily: Cryptocurrency Market is Surging with Bull Market, Regulation, and Innovation Progressing Together

1. Headlines

1. X trading terminal was attacked by Hacker, user funds suspected to be stolen

X is a Cryptocurrency trading terminal application that has been widely followed, but recently it has encountered a serious security incident. Many users reported that their account funds have been transferred, and on-chain data shows that millions of dollars have been stolen. It is reported that the Hacker carried out the attack due to a vulnerability caused by improper management of the Private Key on the X platform.

The X team has cooperated with multiple security audit companies and is making every effort to analyze and troubleshoot the issues. However, Hacker is still committing continuous crimes, and the stolen funds are scattered across multiple Address. It has been confirmed that there are more than 500 victims at present, with a loss of approximately 13 million USD.

This event has once again sparked industry attention to the security of Decentralization exchange. Analysts pointed out that even Decentralization applications may be vulnerable to Hacker attacks if there are centralized risks such as Private Key custody. Users need to enhance security awareness and use such applications with caution. At the same time, project party also needs to strengthen security protection, improve Private Key management mechanisms, and avoid similar incidents from happening again.

2. OpenAI once planned issuanceToken, but was vetoed by Musk

According to the latest court documents, in 2018, OpenAI had planned to issuance its own CryptocurrencyToken, but was opposed by then OpenAI advisor Elon Musk. Musk's lawyer warned that the OpenAI issuance Token would damage its reputation as a non-profit organization.

OpenAI was exploring the possibility of transforming into a for-profit company at the time. Its CEO Sam Altman had attempted to persuade Musk to support this transition, but to no avail. Ultimately, OpenAI was accused of violating its non-profit commitment, leading Musk to sue the organization again.

This incident has once again sparked discussions on the commercialization and tokenization of AI companies. Supporters believe that tokenization helps AI companies raise funds and drive technological development; opponents, however, are concerned that excessive commercialization may lead AI companies astray from their original intentions and harm the public interest. In any case, OpenAI's 'token dream' eventually came to an end, sounding a warning for later entrants.

3. Musk's tweet likes Meme coin PNut, triggering a drastic Fluctuation in coin price

"Dog shitcoin godfather" Elon Musk recently posted on social media "RIP PNut", suspected to be expressing follow towards Meme coin PNut based on squirrel image. This tweet immediately caused a strong reaction in the PNut community, and PNut's price experienced significant Fluctuation in a short period of time.

Analysts believe that Musk's move is likely a response to remarks made by US Supreme Court Justice Neil Gorsuch. Gorsuch referred to the 'Peanut the Squirrel' case as a typical example of government overreach, which was interpreted as an emphasis on freedom and rights. Musk's response is also seen as a potential follow-up to PNutToken.

Coincidentally, Musk has previously been accused of manipulating the market by tweeting about MemeCoin PA, but he himself has denied the accusation. This incident once again highlights Musk's influence on the MemeCoin market and has sparked people's consideration of the impact of celebrity statements on Crypto Asset prices.

4. SUI Eco Token HIPPO price big pump 150%, Meme coins continue to rise

The price of HIPPO, a memes in the SUI ecosystem, has undergone a big pump of 150% in 4 days and its value has continued to rise. Analysts believe that as the variety of memes in the SUI ecosystem continues to increase, their popularity is also increasing day by day.

As an emerging category of encryption assets, Meme coins are attracting more and more investors' attention. Compared to utility tokens, Meme coins are more of a cultural symbol and entertainment vehicle. Their price fluctuations are often closely related to community atmosphere and celebrity influence.

As the Sui ecosystem gradually approaches its historical high, it is expected that Meme coins such as HIPPO will continue to attract capital inflows. This marks the increasing popularity of Meme coins and reflects investors' pursuit of new digital assets. However, regulatory authorities are also closely following this field to guard against speculation and illegal activities.

5. Hoorld launches AI Agent Market, supporting the community to create AI agents autonomously

The encryptionAI project Hoorld announced the launch of the AI Agent Market platform on the Base chain, allowing various communities to create and deploy their own AI agents. The platform is mainly aimed at internet creators, online communities, and digital native brands.

AI Agent Market supports creating multimodal social AI agents, with customizable templates, personalities, knowledge bases, voices, avatars, and other attributes. Currently, it supports group chat and private messaging functions, and will expand to social platforms such as X, Telegram, Discord, etc. in the future, and support multimodal content generation such as images, videos, audios, etc.

Analysts believe that this platform helps to promote the integration and development of AI and We. The community autonomously creates AI agents, which can not only meet personalized needs, but also promote the application of AI technology in practical scenarios. At the same time, AI agents based on blockchain also help to improve transparency and trustworthiness. However, how to protect privacy and intellectual property rights is still an urgent issue to be addressed.

2. Industry Data

1. BTC (BTC)

Recently, the transaction price was 87628.6000 US dollars, with a daily change of -3.5000%.

2. PEPE

Recent transaction price 0.0002 US dollars, intraday change -13.7000%.

3. Ethereum (ETH)

The recent transaction price is $3038.8000, with a daily change of -5.5000%.

4. GT

Recently traded at $9.3370, with an intraday change of -4.7000%.

5. XRP

The recent transaction price is $0.7854, and the intraday fluctuation is +12.4000%.

III. Industry News

1. Bitcoin broke through the $91,000 mark, and the bull run continues to accelerate

The BTC price broke through the $91,000 mark on November 16, with an intraday increase of 4.23%, hitting a new historical high. This pump was mainly driven by the optimistic expectations of the Cryptocurrency policy after Trump's election, which improved market sentiment.

Analysts expect that the price of BTC is expected to break through the $100,000 mark in the short term. Mike Novogratz, CEO of Galaxy Digital, predicts that BTC is expected to reach $800,000 in the next 5 to 10 years. This optimistic outlook is mainly based on the continued influx of institutional investors and the increasingly prominent position of BTC as digital gold.

However, some analysts have expressed concern about BTC's high volatility. Cryptocurrency analyst Ash Crypto has warned that BTC has entered a "euphoria" phase, with high volatility and more Get Liquidated expected in anticipation. He advises investors to use leverage cautiously and closely follow the technical indicator to avoid risks.

In general, the BTCBull Market is picking up pace, but investors need to maintain rationality, control risk exposure, and seize the opportunity to act.

2. Ripple price big pump47%, regulatory prospects tend to be optimistic

In the past five days, the price of Ripple has surged by 47%, with a 20% pump in the first two days. This strong upward trend is mainly driven by speculation about the possible departure of Gary Gensler, Chairman of the United States Securities and Exchange Commission, and optimistic expectations for regulatory prospects.

Ripple CEO Brad Garlinghouse said he hopes the new government can address regulatory challenges and inject new momentum into Ripple's development. At the same time, institutional investors' interest in Ripple continues to rise, partly due to Ripple's potential role in the Central Bank Digital Money initiative.

Analysts predict that if the regulatory environment continues to improve, Ripple prices may further pump in the near future, and even have the potential to break through the $1 mark. However, the Relative Strength Index suggests there may be a short-term pullback. Investors need to closely follow market dynamics and seize the opportunity to act.

Overall, the improvement in regulatory prospects has brought new development opportunities for Ripple, but investors also need to guard against the potential pullback risks.

Cardano price leads the Cryptocurrency market, with a 28% increase

In the market on November 16th, the price of Cardano's ADA coin led the entire cryptocurrency market with a 28% pump, showing outstanding performance. This pump goes against the overall cryptocurrency trend and has attracted widespread follow.

Analysts believe that the main reason for the pump in Cardano price is the continuous innovation of its underlying technology and the promising development prospects. As the Cardano ecosystem continues to expand, investors' expectations for its long-term value are also increasing.

According to the technical indicators, the short-term and medium-term moving averages (MA) of Cardano show a rising trend, and there may be a buying opportunity in the MACD. However, the RSI indicates that the market may be overbought, and there is a risk of a pullback. If market sentiment continues to remain positive, ADA is expected to challenge the resistance level of $0.75.

However, some analysts have raised questions about the valuation of Cardano. They believe that the current price of Cardano may have already overestimated the future development expectations, and investors need to remain rational and control their risk exposure.

Overall, Cardano's performance has attracted widespread attention in the market, but investors still need to closely follow market dynamics and the changes in technical indicators when operating, and seize the right timing for operation.

4. X transaction terminal is under attack, user funds are transferred

The on-chain transaction terminal X has recently been attacked, and multiple users have reported that their funds were transferred without authorization. The X team has noticed this issue and is cooperating with multiple professional security audit teams for analysis and investigation.

It is reported that the scope of this attack is not limited to the Ethereum blockchain, and the transfer of assets is not limited to mainstream currencies. Some analysts estimate that the amount of damage may be as high as millions of dollars, with funds dispersed in multiple different HackerAddresses.

On the X side, it is stated that the "rug pull" phenomenon has not been found at present, and efforts are being made to solve the problem. However, they also recommend users to transfer funds to a new on-chain Wallet as soon as possible and temporarily suspend the exchange of SOL tokens to avoid risks.

This event has once again raised concerns about the security of Decentralization exchange. Some experts suggest that users should reduce the amount of funds in the Wallet when using the Private KeyWallet, and use a Cold Wallet for transactions to reduce the risk of theft.

Overall, X event has sounded the alarm for the cryptocurrency market. Investors need to increase their security awareness and also expect the project party to strengthen security protection and maintain market order.

5. Base ecosystem Token general rise, memes currency performance eye-catching

On November 16th, the Base ecosystem Token saw a general rise in the market, with 24-hour gains of AERO, VIRTUAL, BRETT, MOG, and other Tokens all above 18%, showing impressive performance.

Analysts believe that this upward trend is mainly driven by the continuous development of the Base ecosystem's Favourable Information. As the Base ecosystem continues to expand, the demand for Tokens within the ecosystem is also increasing, pushing up prices.

At the same time, the performance of MEME tokens is also particularly eye-catching. According to monitoring data, two wallets have withdrawn PEPEToken worth $31.88 million from Coinbase in the past 20 hours, triggering widespread market follow.

Some analysts are optimistic about the long-term prospects of Meme tokens. They believe that with the continuous development and commercialization of Meme culture globally, these tokens will have more opportunities. However, some analysts have issued warnings about investing in new types of Meme tokens and suggest focusing on following established mainstream tokens.

Overall, the performance of the Base ecosystem and Meme tokens has sparked discussions in the market. Investors need to have a full understanding of the true value and development prospects of the project, take a rational view of big pump and big dump, and control risk exposure.

Four. Project Highlights

1. Sui Ecology TVL Breaks $1.5 Billion, Becoming the Leader of the Move Ecology

Sui is a new blockchain ecosystem created by engineers who have participated in the Ethereum and Diem projects. Sui adopts the Move programming language and a new parallel execution engine, aiming to achieve high throughput, low latency, and scalability.

Recently, the TVL (Total Value Locked) of the SUI ecosystem has exceeded $1.5 billion, making it the public chain with the highest TVL in the Move ecosystem. This milestone marks the significant progress of the SUI ecosystem in a short period, attracting a large amount of funds and project settlements.

The rapid development of the SUI ecosystem is due to its innovative design concept. SUI adopts a brand new parallel execution engine, which can achieve a throughput of up to millions of TPS, greatly improving transaction speed. At the same time, SUI also introduces an object ownership model to ensure clear vesting of asset ownership and avoid security risks such as "double spending".

The rise of the Sui ecosystem has triggered widespread follow-up in the industry. Analysts believe that Sui is expected to become another public chain ecosystem with broad development prospects after Ethereum. Its high performance and innovative design can support more types of applications, promoting the landing of blockchain technology in various industries.

However, some also believe that the Sui ecosystem is still in its early stages and needs to stand the test of time. Some commentators are concerned that Sui may repeat the mistakes of Ethereum, sacrificing Decentralization in the pursuit of performance. The Sui team needs to strike a balance between performance, security, and Decentralization in order to truly become a leader in the next generation of public chains.

2. Aptos announced the winning projects of the Collision hackathon, covering Decentralized Finance, games, and other tracks

Aptos is a new public chain created by former Meta employees, using the Move programming language, with high performance and scalability. Recently, Aptos announced the list of winning projects for its Collision hackathon, covering Decentralized Finance, gaming, Non-fungible Token, AI, and other tracks.

In the DeFi/RWA track, projects such as Panana Predictions, Sentra Restaking Protocol, and Legato have won awards. These projects are dedicated to building innovative financial applications on Aptos, such as prediction market, stakeprotocol, and more.

The award-winning projects in the Game/Non-fungible Token track include on, On-Chain Treasure Hunt, Forged Realms, etc. These projects will explore new models for building games and Non-fungible Token applications based on Aptos.

The award-winning projects in the AI/DePIN track include ChatEdu, Unity Network, ProxiRun, etc. They combine AI technology with blockchain to develop innovative applications.

In addition, a number of interesting projects have emerged in the social track and unexpected categories.

The booming development of the Aptos ecosystem highlights the huge potential of the Move language and emerging public chains. By attracting talents and projects from all walks of life, Aptos is building a diversified ecosystem that covers multiple fields such as finance, gaming, and social.

However, Aptos also faces challenges. As a new public chain, it needs to continuously attract high-quality projects to settle in and cultivate killer applications. At the same time, Aptos needs to solve technical challenges such as performance and security, and compete fiercely with other public chains.

Overall, the achievements of the Aptos hackathon have injected new vitality into its ecosystem development. The industry expects Aptos to achieve more breakthroughs in the near future and become a leader in the Move ecosystem.

3. X trading terminal exposes security vulnerabilities, user funds stolen billions of dollars

X is a memecoin trading terminal application based on the Solana chain, but it has recently experienced a serious security vulnerability, leading to a large amount of user funds being stolen, with losses amounting to billions of dollars.

Based on on-chain analysis, Hacker exploited the Private Key of X to exploit vulnerabilities, transferring a large amount of user funds without authorization. Currently, over 500 victims have reported losses totaling approximately $130 million.

The X team has cooperated with multiple security audit companies to thoroughly investigate the causes of the incident. Preliminary investigations show that there are serious omissions in the management of X's Private Key, which allowed the Hacker to obtain the Private Key and carry out the attack.

This incident has once again triggered widespread follow-up in the industry regarding the management of Private Keys and security audits. Industry insiders point out that even applications with higher centralization levels need to take strict security measures to prevent similar incidents from happening again.

At the same time, some commentators question whether X, as a memecoin trading terminal, has sufficient security and professionalism. They call on the project party to pay attention to security and avoid neglecting basic risk prevention in pursuit of innovation.

Overall, the X event has dealt a heavy blow to the entire Solana ecosystem. The industry hopes that X can stop loss in time, thoroughly investigate the vulnerabilities, and make reasonable compensation to users for this incident. At the same time, this incident should also trigger the industry's high attention to security issues.

4. Ethena Foundation is approved to use ENA fee conversion, improving user experience

Ethena is a Decentralization exchange based on Ethereum, initiated by a well-known exchange. Recently, the Ethena Foundation announced that the proposed 'Enable ENA Fee Conversion' proposal has been approved by the Risk Committee.

The ENA fee conversion mechanism allows users to pay ETH gas fees with ENA Tokens without holding ETH. This mechanism is expected to significantly improve the user experience of Ethena and drop the usage threshold.

According to the plan, the Ethena Foundation will work with the Risk Committee to determine the relevant parameters for activating the fee switch before November 30th and announce the specific implementation details.

Ethena's ENA fee conversion design is innovative. By paying gas fees with Token, users do not need to frequently convert between ETH and ENA, simplifying the operation process. At the same time, as a governance Token, its deflation mechanism also helps to enhance the value of the Token.

Analysts believe that the cost conversion of ENA is expected to further enhance Ethena's competitiveness. As a new Decentralizationexchange, Ethena needs to continuously innovate in user experience, security, and other aspects in order to stand out among similar products.

However, some also believe that the ENA fee conversion mechanism may exacerbate the inflationary pressure on tokens within the Ethena ecosystem, thereby affecting token prices. Ethena needs to make corresponding adjustments to the token economic model to ensure the long-term stable development of the ecosystem.

Overall, the approval of the ENA fee conversion proposal marks another step forward for the Ethena ecosystem. The industry looks forward to the smooth implementation of this mechanism, bringing more users and Liquidity to Ethena.

5. Zhao Changpeng shares information about Giggle Academy educational application and calls for community feedback

Binance co-founder Zhao Changpeng recently shared an application introduction of his We education platform Giggle Academy on social media. He suggested community users to try out the application and provide feedback.

According to the information shared by Zhao Changpeng, Giggle Academy is an educational app for children, integrating functions such as storybooks and games, aiming to provide children with an interesting learning experience.

Zhao Changpeng emphasized that the application does not record the voice of users or children and focuses on privacy protection. He recommends that users try the "Storybook" function before going to bed to experience the application.

The launch of Giggle Academy reflects the development potential of the We education field. Through blockchain and encryption technology, educational applications are expected to achieve a more fair, transparent, and secure operating mode.

However, We Education is still an emerging track with many unknown factors and challenges. Some analysts are concerned that relying too heavily on blockchain technology may affect the user experience of educational applications.

At the same time, child privacy protection is also a key issue that We Education application needs to consider. Zhao Changpeng emphasized that Giggle Academy pays attention to privacy, but still needs further confirmation.

Overall, the launch of Giggle Academy has brought a whole new direction for the We education field. The industry hopes that the application can absorb community feedback, continuously improve and optimize, and provide children with a safe and fun learning experience.

5. Economic Dynamics

1. The US inflation rate fell for the fourth consecutive month, but remains higher than expected.

The latest data from the US Bureau of Labor Statistics shows that the Consumer Price Index (CPI) in October rose by 7.7% pump YoY, higher than the market's expected 7.9%, but lower than the 8.2% in September, marking the fourth consecutive month of decline. The core CPI rose by 6.3% pump YoY, higher than the expected 6.5%, but lower than the 6.6% in September.

Economic background: The US economy has encountered the highest inflation pressure in 40 years in the first half of this year, leading the Federal Reserve to significantly raise interest rates to curb inflation. Despite consecutive declines in the inflation rate, it still remains well above the target range of 2%, and it is expected that the Federal Reserve will continue to raise interest rates within the year. The annualized quarterly GDP growth rate for the third quarter is 2.6%, showing a Rebound from the previous quarter's -0.6%, but the job market remains tight, with an unemployment rate of 3.7% in October.

Important Event: The Fed raised the federal funds Intrerest Rate target range by 75 basis points on November 2, increasing it to 3.75%-4%, the largest single rate hike since the 1980s. Powell stated that the interest rate hikes will continue until inflation significantly cools down. It is widely expected in the market that there will be another 50 basis points hike in December.

Market reaction: The stock market fell slightly after the release of inflation data, and investors are concerned that the Federal Reserve will further tighten monetary policy. The dollar index rose slightly as higher-than-expected inflation increased expectations of interest rate hikes. Bond yields rose, reflecting expectations of future interest rate hikes.

Experts' analysis: Goldman Sachs said that despite the slowdown in inflation, core inflation continues to rise, and it is expected that the Federal Reserve will raise the Interest Rate to the range of 5%-5.25% in March next year. Citigroup believes that the labor market is still overheated, the pressure on wages is not decreasing, and the Federal Reserve needs to further raise interest rates to control inflation expectations.

VI. Regulation and Policy

1. US Securities and Exchange Commission Chairman Gary Gensler faces pressure to resign

During his term, Gary Gensler, chairman of the United States Securities and Exchange Commission (SEC), has taken a tough regulatory stance on the cryptocurrency industry, sparking widespread criticism both inside and outside the industry. As his term is about to expire, discussions about whether he will step down have heated up again.

As a former senior executive on Wall Street, Gensler made Cryptocurrency regulation a top priority after taking office. He insists on considering most Cryptocurrencies as securities and advocates for strict regulation. Under his leadership, the SEC has launched dozens of lawsuits against encryption companies and projects, with the most famous being the lawsuit against Ripple.

Gensler's approach has received widespread criticism from inside and outside the industry. Crypto asset supporters believe that he has taken an overly harsh stance on the industry, hindering innovation. Critics point out that he has failed to provide sufficient regulatory guidance and certainty for investors.

With the Republican Party regaining control of the House of Representatives in the midterm elections, Gensler faces huge pressure from Congress. Some Republican lawmakers have openly called for his resignation. Even if he continues to serve, his autonomy in regulation may be limited.

Industry insiders generally expect that Gensler's departure will bring new opportunities for the cryptocurrency industry. An analyst said, "The new SEC chairman may adopt a more lenient regulatory stance to create a more favorable environment for industry innovation and development."

2. Pennsylvania Pushes to Include Bitcoin in State Government Reserve Assets

Pennsylvania is pushing for legislation to include Bitcoin in the state government's reserve assets. This move aims to strengthen the state government's financial strength and create a favorable environment for the Cryptocurrency industry in the state.

According to the bill, Pennsylvania will be allowed to include BTC as a reserve asset on its balance sheet. The state government will gradually purchase 100,000 BTC over the next five years, equivalent to a current value of 2.5 billion US dollars.

Supporters of the bill believe that including BTC as a reserve asset can bring multiple benefits to the state government. First, BTC, as a scarce asset, can provide a hedging tool against inflation for the state government. Second, holding BTC can create potential investment returns for the state government. In addition, this measure will also create a favorable environment for attracting cryptocurrency businesses and talent to Pennsylvania.

However, there are also critics who question this. They believe that the high volatility of BTC prices poses risks as a reserve asset. At the same time, the regulatory prospects for BTC remain uncertain, which may affect its long-term value.

However, the bill is still expected to be passed in the coming months. Once effective, Pennsylvania will become the first state in the United States to include BTC as a government reserve asset. This may set a precedent for other states to follow.

3. The EU plans to implement new Anti-Money Laundering rules for Cryptocurrencyexchange

The EU is developing a new Anti-Money Laundering rule aimed at strengthening the regulation of Cryptocurrency exchanges. The rule will require exchanges to implement stricter identity verification for users and enhance monitoring of suspicious transactions.

According to the new rules, Cryptocurrency exchange needs to verify the identity of all users, including collecting personal information such as name, date of birth, Address, etc. For users with large transaction amounts, the exchange also needs to collect more information, such as the source of funds.

In addition, the exchange also needs to strengthen the monitoring of suspicious trading activities. Once suspicious situations are identified, the exchange must immediately report to the regulatory authority. Exchanges that fail to comply with the regulations will face severe penalties.

The EU Anti-Money Laundering agency stated that the new regulations aim to combat the use of cryptocurrency for money laundering and funding terrorist activities. Due to decentralization and anonymity, cryptocurrency is easily exploited by criminals for illegal activities.

Some exchanges have different opinions on the new rules. Some exchanges believe that overly strict regulations will increase Compliance costs and affect user experience. However, some exchanges have expressed support, believing that this will contribute to the long-term healthy development of the entire industry.

The new regulations are expected to take effect in 2024. By then, the EU will become the first region in the world to implement unified anti-money laundering rules for Crypto Asset exchanges. This may provide reference for regulatory formulation in other countries and regions.

4. Japan plans to impose new taxes on CryptocurrencyDerivatives trading

The Japanese government is considering imposing new taxes on Cryptocurrency Derivatives trading to regulate this emerging market and increase fiscal revenue.

According to the plan, Japan will impose a 20% transaction tax on Cryptocurrency futures, Options, and other derivatives trading. This tax rate is equivalent to Japan's taxation level on securities derivatives trading.

The Japanese government believes that the rapid development of the Crypto Assets Derivatives market has brought about regulatory gaps. Levying transaction taxes will help regulate the market order and create new tax revenue sources for the government.

The plan has received support from the Japanese Financial Services Agency. The agency stated that there is no difference in nature between Crypto Assets Derivatives and TradFiDerivatives, so they should be subject to equal regulation and tax treatment.

However, the plan has also faced criticism from some industry insiders. They believe that high tax rates will suppress the development of the Crypto Assets Derivatives market and may lead to trading activities flowing to overseas markets.

A Cryptocurrency exchange executive said, "We understand the government's regulatory demands, but the tax rate should not be too high. Otherwise, this will seriously affect Japan's position as a center for Cryptocurrency."

The plan is currently open for public consultation. It is expected to be officially implemented in mid-2024. Japan will become the first country in the world to tax Cryptocurrency Derivatives trading.

Overall, this round of regulatory dynamics reflects the increasing attention of governments around the world to the regulatory needs of the Crypto Assets market. The introduction of relevant policies will have a profound impact on the industry's development, which is worth paying close attention to.