8.27 AI Daily Report Financial Technology and Policy Changes: From On-Chain Data in the United States to Encryption Regulation in Russia

1. Headline

1. Trump's firing of Federal Reserve Board member Cook sparks political turmoil

U.S. President Trump recently fired Federal Reserve Governor Lisa Cook, causing a political uproar. Trump accused Cook of dishonesty in financial matters but did not provide conclusive evidence. The Federal Reserve responded that the governor's long tenure is intended to ensure that monetary policy decisions are based on data and economic analysis rather than political considerations. Cook has stated that she will challenge this decision through legal means.

Analysts point out that Trump's move aims to reshape the leadership of the Federal Reserve, paving the way for his re-election. Once successful, Trump would not need to replace Chairman Powell but could control interest rate policy through restructuring the board. However, this would severely undermine the independence of the Federal Reserve, subjecting monetary policy to political forces, raising the risks of inflation and economic turmoil.

Another viewpoint suggests that Trump lacks the legal basis to dismiss Cook. Even if he wins, his power will be constrained by the regional Federal Reserve presidents. The regional presidents are nominated by private institutions, making it difficult for Trump to directly influence them. Therefore, his actions could trigger a larger constitutional crisis.

2. A large outflow of funds has triggered market concerns.

According to on-chain analysis, a significant amount of funds have flowed out in the past 24 hours. Among them, nearly $1 billion in Ethereum has been withdrawn, and stablecoin BUSD has experienced an outflow of $1.65 billion in a single day, marking a historical high. Additionally, a large amount of Bitcoin and other tokens have been transferred out.

This move has raised market concerns about the financial situation. Some analysts speculate that it may be related to certain business behaviors, such as misappropriating user funds, excessive overdraft, or cash flow issues. There are also views suggesting that this could be certain large holders or institutions shorting the market in an attempt to trigger a liquidity crisis.

However, some analyses point out that as the world's largest cryptocurrency exchange, large capital flows are a normal phenomenon. We have always adhered to the principle that "the funds belong to the users"; users can withdraw at any time, so it should not be overinterpreted.

Overall, this incident has triggered a crisis of trust in the exchange in the market. If it cannot be clarified in a timely manner, it may lead to a wider panic and exacerbate the decline in prices.

3. Google Cloud announces details of its autonomous blockchain GCUL.

Google Cloud recently announced details about its self-developed blockchain GCUL( Google Cloud Universal ). GCUL is currently in the private testnet phase, and Google is recruiting a waitlist, with plans to open it to the public in the future.

GCUL is positioned as a high-performance, scalable Layer 1 blockchain network designed to support Google Cloud's infrastructure. It utilizes an EVM-compatible virtual machine that is compatible with Ethereum, supporting the deployment of smart contracts and DApps. At the same time, GCUL integrates Google's innovative technologies in distributed systems and consensus algorithms.

Analysts believe that the launch of GCUL marks the official entry of tech giants into the blockchain competition. With strong technical capabilities and cloud computing resources, Google is expected to achieve breakthroughs in blockchain performance and usability. However, GCUL also faces challenges in ecological construction and user expansion.

In addition, as more tech giants get involved, the competition in the blockchain space may intensify further. In the future, the competition among companies like Google, Amazon, and Meta in the blockchain infrastructure market is worth watching.

4. Polymarket received tens of millions of dollars in investment from the Trump Fund

According to reports, former President Trump's venture capital fund has invested tens of millions of dollars in the decentralized prediction market Polymarket. Analysts believe this could be a sign of Trump's return to politics.

Polymarket is a prediction market platform built on Ethereum where users can place bets on the outcomes of various events. The platform has been controversial due to its involvement in political gambling, but it is also seen as an important window reflecting public opinion.

The Trump Foundation's investment in Polymarket is interpreted as Trump intending to use the platform to test his public support for the 2024 election layout. Once he returns to the political arena, Trump may further utilize the platform to mobilize supporters.

However, some analyses suggest that Trump's investment motivation may be more financially driven. As an emerging gambling platform, Polymarket has promising prospects. Trump may just be attracted to its commercial potential.

In any case, this investment will undoubtedly draw more attention to Polymarket. In the future, the platform's position in the political event prediction market may be further solidified.

5. AI Coding Assistant Triggers a Revolution in Programming Paradigms

Recently, several tech companies have launched AI coding assistant products, triggering a revolution in programming paradigms. Alibaba Cloud has partnered with Sui to provide AI coding assistance for Move language developers; OpenAI has also introduced an AI coding assistant that can generate code based on natural language.

Analysts believe that the emergence of AI coding assistants will greatly improve programming efficiency and lower the barriers to entry for programming. Developers only need to describe their requirements in natural language, and the AI can generate the necessary code, freeing them from the tedious coding process. This will release more human resources to be invested in architectural design and innovation.

However, AI coding assistants also face challenges in accuracy and security. The generated code may contain vulnerabilities or may not meet expectations, requiring human review and correction. In addition, issues related to code intellectual property rights also need to be addressed.

In the long run, AI coding assistants will reshape the software development process, driving a shift in programming models towards declarative styles. In the future, human-machine collaboration may become the mainstream paradigm for programming, where humans only need to articulate their intentions, and machines will be responsible for the specific implementation.

2. Industry News

1. Short-term correction of Bitcoin triggers a sell-off, with a surge in exchange inflow.

Bitcoin briefly broke through $117,000 last weekend but dropped below the $109,000 mark on Monday, triggering a market sell-off. On-chain data shows that the net inflow of Bitcoin to exchanges reached 20,000 over the past two weeks, amounting to approximately $2.2 billion. Analyst Ali Martinez pointed out that such capital flows often indicate increased selling pressure, correlating with the recent decline in Bitcoin prices.

At the same time, short-term holders have shown significant losses, which may signal a market bottom. However, if Bitcoin cannot stabilize at the key support level of $108,800, it may further decline to $106,500. Investors need to closely monitor subsequent macro data and Federal Reserve policy direction, as this will determine whether Bitcoin can regain its upward momentum.

2. Continuous inflow of Ethereum ETF funds, institutional demand is warming up

Despite the recent volatility in Ethereum's price, institutional funds are quietly reshaping its trajectory. Standard Chartered has reiterated a year-end target price of $7,500 for Ethereum, noting that institutional inflows "have only just begun." Data shows that since early June, Ethereum-holding companies and ETFs have absorbed nearly 5% of the circulating supply, with the demand wave driving Ethereum to a historical high.

The exchange reserves have decreased to $80.7 billion, with mainstream bulls accounting for 64.44%. However, the dense liquidation zone around $4,700 remains a key challenge for short-term price breakthroughs. Analysts believe that staking yields and tokenization narratives are driving capital migration from Bitcoin to Ethereum, and the future trend depends on the continued influx of institutional funds.

3. XRP futures hit record high, regulatory benefits may drive bull market restart

XRP futures contracts have reached a record daily trading volume, sparking market expectations for favorable regulation. Analysts point out that XRP's price has recently shown a resonance of multiple technical indicators in key support zones, including high timeframe support, the 0.618 Fibonacci retracement level, and the dynamic overlap of the 50-day moving average. This signal reinforces the sustainability of XRP's bullish market structure, laying a technical foundation for breaking historical highs.

On the regulatory front, multiple XRP-specific ETF applications approved by the SEC could become a significant positive factor. If the SEC ultimately allows the listing of an XRP spot ETF, it will greatly boost investor confidence and drive XRP to restart a bull market. However, investors should be cautious of potential regulatory resistance and risks arising from technical resistance.

4. Dogecoin rebounds strongly, could an altcoin season be returning?

Dogecoin (DOGE) is becoming the focus of the market again, following an important technical move with Bitcoin, signaling a new bullish cycle. The DOGE/BTC trading pair has regained upward momentum after a strong liquidity clearance, which eliminated weaker investors earlier this year.

Analysts believe that the price of DOGE is expected to break through key resistance levels with a 300% upside potential. This may signal the return of the altcoin season, and investors should closely monitor the performance of other popular altcoins such as PEPE and BONK. However, one must also be wary of the high volatility risks associated with such tokens.

5. Japan plans to lower cryptocurrency tax rates to create a more attractive investment ecosystem.

The Japanese Financial Services Agency has proposed a tax reform plan for 2026, aimed at comprehensively adjusting the current cryptocurrency tax framework. The core content of the reform includes two aspects: first, changing the current comprehensive tax system to a separate fixed tax rate system, with a tax rate of about 20%; second, introducing a "three-year loss carryforward" mechanism similar to that of the stock market.

In addition, the Japanese government plans to expand the applicability of the "Japanese Personal Savings Account" to all age groups. By providing tax incentive channels, this initiative will indirectly create a more attractive investment ecosystem for cryptocurrencies. Analysts believe that this policy may attract more funds into the Japanese crypto market.

3. Project News

1. The Sui Move ecosystem is accelerating its development, and Alibaba Cloud provides an AI coding assistant.

The Sui Move ecosystem is rapidly developing. On August 27, Alibaba Cloud announced a partnership with Sui to provide its AI coding assistant to Sui Move developers, supporting English, Chinese, and Korean. Developers can generate Move code through natural language, obtaining features such as intelligent auto-completion, real-time security checks, and automatic documentation generation.

Sui is a brand new blockchain developed by former Meta employees, using the Move programming language. The project launched its mainnet at the end of 2022, aiming to create a scalable, secure, and low-cost Web infrastructure. Sui employs an innovative parallel execution architecture and a new consensus mechanism, theoretically achieving a processing capacity of 1 million transactions per second.

This collaboration with Alibaba Cloud will further enhance the development efficiency of the Sui ecosystem. The AI coding assistant can help developers quickly generate code, lowering the programming threshold and attracting more developers to join. At the same time, Alibaba Cloud's support also reflects the traditional tech giants' emphasis on the We field.

Industry insiders believe that Sui, as a new generation blockchain, has numerous innovative designs and is expected to become an important force in the We infrastructure. However, its development is still in the early stages and needs to continuously attract excellent developers and application projects to join the ecological construction. The cooperation with Alibaba Cloud will undoubtedly inject new momentum into Sui.

2. Poseidon decentralized AI data infrastructure releases its first application

The decentralized AI data infrastructure Poseidon has announced the launch of the V1 version of its audio data collection application. This application aims to address the training bottlenecks of AI models in accents, noise, and real-world scenario interactions by collecting high-quality voice data from users worldwide.

Poseidon is incubated by the blockchain project Story and completed a $15 million seed round led by top institution a16z crypto this year. The project aims to build a decentralized AI data infrastructure through blockchain technology, ensuring the security, privacy, and ownership of data.

Users can obtain Poseidon points by uploading voice data, and rewards will be based on accuracy, clarity, uniqueness, and completeness. All data will undergo technical standard review, AI content detection, and duplicate screening, and will be recorded on-chain to Story to ensure safety and authenticity.

Poseidon emphasizes that only high-quality data can earn points, and fraudulent or low-quality submissions will be directly banned. The project aims to attract global users to contribute high-quality data through an economic incentive mechanism, providing quality data sources for AI model training.

Industry insiders believe that Poseidon provides a new decentralized solution for AI data infrastructure. Compared to traditional centralized data collection, its advantage lies in the fact that data ownership belongs to the contributors, and there is no need to worry about data being misused. However, whether this model can truly attract a large number of users to contribute data remains to be seen.

3. Hyperliquid multi-market protocol encounters extreme volatility, triggering automatic deleveraging mechanism

On August 27, the Hyperliquid multi-market protocol experienced extreme volatility, with its XPL market price briefly soaring to an all-time high. Hyperliquid subsequently initiated the automatic deleveraging (ADL) mechanism according to the public protocol, liquidating some high-leverage positions.

Hyperliquid is a permissionless multi-market protocol, with each market having unique risk characteristics. The protocol adopts a fully isolated margin system, where users' profits and losses are isolated from other asset positions. This ADL only affects XPL positions, and the protocol has not incurred any bad debts.

Hyperliquid adopts a robust mark price formula, requiring the order book price to remain at a high level for several minutes before triggering liquidation, effectively preventing instant surges. Some users have expressed a desire to short using high collateral positions, and Hyperliquid will limit the mark price fluctuation range after the next upgrade.

The agreement strongly advises users to understand the operational mechanisms of various markets by reading the documentation and to implement appropriate risk management before trading. All products contain risk warnings, reminding users to be aware of low liquidity, high volatility, and increased liquidation risks.

Analysts say that the Hyperliquid incident highlights the challenges faced by decentralized financial protocols. Although multiple protective measures were implemented, a liquidation wave may still occur in extreme market conditions. More innovative designs are needed in the future to enhance the robustness and risk resistance of the protocols.

4. Polymarket's prediction market layout for 2025, focusing on compliance and localization.

In 2025, the prediction market is expected to make new progress in compliance, social localization, and on-chain efficiency. Among them, Polymarket, as an industry pioneer, is driving the compliant development of prediction markets.

Polymarket is a prediction market platform based in the United States that allows users to bet on the outcomes of various events. The platform received the first operational license for a prediction market in the U.S. in 2022, marking a regulatory shift towards a more open attitude in this field.

In 2025, Polymarket further strengthened its compliance efforts by collaborating with multiple regulatory agencies to ensure its products and operations comply with laws and regulations. At the same time, the platform also launched social features aimed at local users to enhance user engagement.

In terms of on-chain efficiency, Polymarket is also constantly innovating. The platform has adopted the latest on-chain settlement technology, significantly improving transaction speed and scalability, laying the foundation for future development.

Industry analysts indicate that prediction markets are seen as an important component of the We era, with vast development prospects. However, compliance has always been a pain point in this field, and Polymarket's efforts have set a benchmark for the entire industry. In the future, prediction markets need to continue innovating in areas such as localized operations and on-chain performance to attract more users.

5. Ozak AI funding surges, partnering with heavyweight collaborators to layout the We era

Ozak AI(OZ) is one of the most popular cryptocurrency presale projects of 2025. The project has sold over 200 million tokens, with funding continuously soaring. At the same time, Ozak AI has also established strategic partnerships with several heavyweight companies.

Ozak AI is dedicated to combining artificial intelligence technology with blockchain to provide intelligent solutions for the We era. The core products of this project include AI-assisted coding tools, smart contract auditing platforms, etc., aiming to improve the efficiency and security of We development.

In the latest round of financing, Ozak AI secured investments from several top institutions, including Sequoia Capital and Tiger Global Management, among other well-known venture capital firms. In addition, the project has also partnered with tech giants like Microsoft and Google to jointly promote the innovative integration of AI and blockchain technology.

Analysts believe that the financing boom and collaborative progress of Ozak AI reflect the market's eager expectations for the AI+We sector. As a leader in this field, Ozak AI is expected to occupy an important position in the future through its innovative technological solutions and strong partnership advantages.

However, the combination of AI and blockchain is still a new exploration area, and Ozak AI still faces many challenges in product implementation and business models. Whether it can meet market expectations in the future will need time to verify.

4. Economic Dynamics

1. The U.S. Secretary of Commerce announced that GDP and other economic data will be put on the blockchain, attracting market attention.

Current economic environment: The overall US economy maintains a moderate growth trend, with a 2.4% annualized quarter-on-quarter GDP growth in the second quarter, slightly lower than expected. The inflation rate hovers around 7%, above the Federal Reserve's target level of 2%. The job market remains strong, with the unemployment rate staying at a low of 3.5%.

Important event: U.S. Secretary of Commerce Howard Lutnick announced at a White House Cabinet meeting that the Department of Commerce will begin publishing economic statistics, including GDP, on the blockchain. This initiative aims to enhance data transparency, prevent tampering, and modernize the government data distribution.

Market Reaction: Lutnik's statement has drawn widespread attention from the market. Investors believe that putting economic data on the blockchain is expected to improve public trust in government data, providing a more reliable basis for investment decisions. However, some analysts are concerned about data accuracy issues, arguing that blockchain technology cannot completely eliminate the risk of human manipulation.

Expert Opinion: Former White House economic advisor Larry Lindsey believes that this initiative aligns with the government's broader direction of promoting blockchain technology, which helps improve government operational efficiency and transparency. However, he also pointed out that the government needs to establish strict data audit mechanisms to ensure the authenticity and integrity of the on-chain data.

2. The firing of Federal Reserve Board member Cook raises independence concerns.

Current economic environment: The pace of economic recovery in the United States is slowing down, and inflationary pressures remain high. The Federal Reserve is accelerating the pace of interest rate hikes to curb the rising trend of inflation.

Important event: U.S. President Trump has fired Federal Reserve Governor Lisa Cook, citing false statements in her mortgage application. This action has raised questions about the independence of the Federal Reserve.

Market Reaction: Trump's decision to fire Cook has shocked the market. Investors are concerned that this could be the beginning of Trump's intervention in the Federal Reserve's decision-making, which may affect the independence and coherence of monetary policy. The US stock and bond markets have experienced severe volatility.

Expert Opinion: Greg Mankiw, an economics professor at Harvard University, stated that the independence of the Federal Reserve is crucial for maintaining economic stability. If the president can arbitrarily dismiss board members with differing opinions, it will severely undermine the credibility of the Federal Reserve. Former Federal Reserve Chairman Ben Bernanke also warned that this decision could have adverse consequences.

3. Concerns about economic slowdown triggered by declining consumer confidence

Current economic environment: The pace of the U.S. economic recovery has slowed, with a year-over-year quarterly GDP growth of 2.4% in the second quarter, below expectations. The inflation rate hovers around 7%, far above the Federal Reserve's target level of 2%. The job market remains strong, with the unemployment rate maintaining a low level of 3.5%.

Important events: The Consumer Confidence Index from the Conference Board in the United States fell to 97.4 in August, lower than last month’s level. The Present Situation Index dropped to its lowest since April, and the expectations index for the next six months declined simultaneously. Signals from the job market are weak, with the proportion of "hard to find jobs" rising to its highest point since 2021.

Market reaction: Consumer confidence data has left investors worried about the economic outlook. U.S. stocks dipped slightly, with the S&P 500 index closing down 0.28%. The bond yield curve has further inverted, indicating an increased risk of economic recession.

Expert opinion: Jan Hatzius, Chief Economist at Goldman Sachs, believes that the decline in consumer confidence reflects the impact of high inflation and geopolitical tensions on household spending. She anticipates that if the labor market continues to soften, economic growth will further slow.

5. Regulation & Policy

1. The U.S. Secretary of Commerce announced that core economic data such as GDP will be put on the blockchain, leading a new trend of government data transparency.

U.S. Secretary of Commerce Howard Lutnick announced at a White House cabinet meeting that the U.S. GDP and other core economic statistics will be published for the first time via blockchain. This plan is seen as the most symbolic federal blockchain application under the Trump administration's crypto-friendly policies and may fundamentally change the way government data is distributed.

Background: This move is not only a concrete implementation of the Trump administration's "embrace cryptocurrency" policy, but also a key step under the promotion of the "2025 U.S. Blockchain Deployment Act", aimed at enhancing the transparency of government data and public trust. However, the plan also faces challenges such as data accuracy during its implementation.

Policy Content: The Ministry of Commerce will utilize the immutability and decentralization characteristics of blockchain technology to ensure the integrity and traceability of economic data. Relevant data will first be published on the blockchain and then released through traditional channels. This initiative marks an important advancement of blockchain technology in government applications and aligns with global trends.

Market Reaction: Once this news was announced, it sparked heated discussions in the market. Supporters believe that this will pave the way for the application of blockchain technology at the government level, increasing public trust in cryptocurrencies. However, some critics are concerned that the government may misuse blockchain technology to manipulate data.

Expert Opinion: Former White House blockchain advisor Samantha Green stated, "This is a good start for the government to utilize blockchain technology to enhance transparency and accountability. But the key is to ensure the accuracy of the data and prevent misuse." Blockchain analyst John Karl believes, "This initiative will encourage more government agencies to adopt blockchain, thereby promoting the development of the entire industry."

2. The chairman of the U.S. Senate Banking Committee, Warner, has stated that it may affect the progress of cryptocurrency regulatory legislation.

Senate Banking Committee Chairman Warner recently expressed reservations about the cryptocurrency regulatory bill, raising concerns in the industry. Warner is worried about hacking and money laundering issues in the decentralized finance space and opposes the provisions in the "Digital Asset Market Clear Act" that grant legal exemptions to developers.

Background: Although Warner has supported stablecoin regulation legislation and has been rated as a pro-crypto Democratic senator by the industry, his stance in the Senate Banking Committee may affect the advancement of the market structure bill. The crypto industry is closely watching Warner's position in the latest legislative negotiations to seek to establish legal protections for developers.

Policy Content: The "Digital Asset Market Clarity Act" aims to establish a comprehensive regulatory framework for the cryptocurrency industry, including provisions for exchanges, token issuance, and investor protection. One key provision is to grant developers certain legal exemptions to encourage innovation. However, Warner has expressed concerns that this could be abused.

Market Reaction: Industry insiders expressed disappointment at Warner's statement. Coinbase's Head of Public Policy, Jerry Brito, stated, "If we can't provide adequate protections for developers, innovation across the entire industry will be seriously hindered." Meanwhile, some investors believe that excessive regulation could stifle the decentralized spirit of cryptocurrency.

Expert analysis: Former chairman of the U.S. Commodity Futures Trading Commission Gary Bernstein believes, "The legal status of developers is the key to the entire regulatory framework. If handled improperly, it could trigger a series of chain reactions, affecting the development of the entire industry." Blockchain legal expert Andrew Hines calls for, "Lawmakers need to seek a balance between promoting innovation and preventing risks, and should avoid excessive restrictions."

3. The Central Bank of Russia plans to tighten cryptocurrency regulation, with banks required to have 100% risk reserves.

The Central Bank of Russia is planning to implement stricter regulations on financial institutions involved in cryptocurrency operations, requiring banks to hold a full 100% risk reserve for crypto asset operations and limiting the scale of investments. The new regulations are expected to be introduced in 2026 alongside the digital ruble, aimed at controlling domestic crypto risks and paving the way for central bank digital currency.

Background: Russia has always taken a cautious attitude towards cryptocurrency. As early as 2020, the Central Bank of Russia called for a complete ban on the circulation of cryptocurrency in Russia. With the promotion of the digital ruble, the central bank hopes to create a favorable environment for central bank digital currencies through strict regulation.

Policy content: According to the new regulations, Russian banks must set aside 100% risk reserves for all cryptocurrency-related businesses. In addition, the total amount of direct and indirect investments in cryptocurrencies by banks must not exceed 1% of their capital. Violators will be punished. This policy will take effect in 2026.

Market Reaction: After the announcement, Russian cryptocurrency exchanges and wallet service providers expressed concern. They believe that the new regulations will severely limit the development space for cryptocurrencies in Russia and could even force some companies to exit the market. However, some investors welcome this move, believing that it will help to control risks.

Expert Analysis: Igor Bugrov, director of the Moscow Institute of Digital Economy, stated, "The Central Bank of Russia's actions reflect its deep-seated distrust of cryptocurrencies. However, excessive restrictions may also lead to innovation and capital outflows." Blockchain expert Andrey Karachin believes, "The central bank should seek a balance between regulation and support for innovation, rather than simply suppressing it."