10.25 AI Daily: AI and Crypto Assets are Making Parallel Progress: OpenAI's New Model and BTC Regulation Lead Industry Development

1. Headlines

1. OpenAI will launch the next generation AI model Orion by December.

OpenAI plans to launch its next-generation advanced model, Orion, before December. Unlike the widespread release of ChatGPT, Orion will first be authorized for access by partner companies to build product features. This decision aims to better control the impact of the new model and work closely with partners to ensure its safe and responsible application.

The specific capabilities of the Orion model have not been disclosed, but it is reported to be more powerful than ChatGPT. OpenAI hopes to closely collaborate with partners to fully evaluate the potential risks of Orion and develop corresponding mitigation measures. At the same time, this will also provide exclusive opportunities for collaborating companies to be the first to leverage Orion's powerful capabilities to develop innovative products.

The rapid development of AI technology has brought tremendous opportunities and challenges to society. OpenAI's move reflects the industry's high attention to the safety and ethical issues of AI. In the future, AI companies and regulatory agencies need to closely cooperate to formulate corresponding regulations and standards to ensure the healthy development of AI technology.

2. Pennsylvania sets the tone for the regulation of digital assets with bipartisan legislation

The Pennsylvania House of Representatives in the United States passed a bipartisan bill with an overwhelming majority of 176 votes to 26, providing regulatory clarity for digital assets. The bill involves residents' rights to self-manage digital assets, the use of BTC as a form of payment, and tax guidelines for BTC transactions, among other content.

As a key "swing state", about 12% of Pennsylvania residents hold Cryptocurrency. The passage of this bill will set a model for digital asset regulation in the state and even across the United States. The bill grants residents the right to manage digital assets, recognizes the payment attributes of Digital Money such as BTC, and clarifies relevant tax policies, which is beneficial to the legal circulation and application of Cryptocurrency in the state.

Regulation of digital assets is a common challenge faced globally. The regulatory framework at the federal level in the United States is still being developed, with individual states taking the lead and potentially providing references for nationwide regulation. Industry insiders believe that the passage of this bill will further promote the development of digital asset compliance in the United States and attract more institutional investors to get on board.

3. Microsoft urges shareholders to vote against the proposal to assess Bitcoin diversification investment

A conservative think tank has proposed that Microsoft evaluate BTC as a diversification investment. However, the Microsoft board recommends that shareholders vote against the proposal, believing that the company has "carefully considered this topic".

Microsoft stated in the announcement that previous evaluations have included Cryptocurrency such as BTC in the consideration. Due to the significant volatility, stable and predictable investments are required for corporate financial applications to ensure Liquidity and operational funds. Microsoft has established appropriate processes to manage and diversify corporate finances for the long-term benefit of shareholders.

Analysts pointed out that Microsoft has always taken a conservative approach and invested a large amount of cash reserves in low-risk assets. BTC's price has experienced high fluctuations, which makes it a high-risk asset for the finance department. Although institutions' interest in BTC continues to rise, some companies still adopt a "wait-and-see" attitude. Microsoft's decision this time may affect the cryptocurrency investment plans of other companies.

4. CryptocurrencyWhaleHoldings hit a record high, analysts say it's an optimistic long-term signal

According to CryptoQuant data, BTCWhale currently holds about 670,000 BTC, a new historical high. Analyst BaroVirtual indicated that despite short-term fluctuations, the increase in Whale Holdings is an optimistic long-term signal.

From the chart, it can be seen that when the Whale holdings are at a high level, BTC tends to show a Sideways or mild downward trend, which is the accumulation phase before the Bull Market. The real rise of BTC begins when the Whales gradually reduce their holdings and the percentage of holdings becomes negative.

If the price of BTC fails to reach a new high before and after the US election, it may indicate a serious problem in the current bull market cycle. However, analysts believe that the surge in Whale Holdings to a historic high reflects institutional investors' optimistic outlook on the long-term prospects of BTC, which is expected to power up the next bull market cycle.

5. Aptos Foundation collaborates with AI companies to launch Move programming language tools

The Aptos Foundation announced a partnership with the Decentralization artificial intelligence platform FLock.io to launch an artificial intelligence tool that makes it easier to use the Block chain to customize the programming language Move for coding.

FLock.io has developed a specialized large-scale language model specifically tailored to adjust Move on the Aptos network. This tool will help developers write Move code more efficiently and improve development efficiency.

Move is a resource-oriented programming language developed by Meta (Facebook) for writing secure and verifiable Smart Contracts. Aptos is the first public chain to adopt Move as its native programming language. This collaboration will further enhance the usability of Move and attract more developers to join the Aptos ecosystem.

Insiders believe that the application of AI technology will promote the development of blockchain programming languages and improve developer efficiency. Aptos is expected to leverage the advantages of AI to accelerate ecological construction and inject new momentum into its competition in the public chain.

2. Industry Data

1. BTC

Recent transaction price is 67118.0000 US dollars, with an intraday increase of +0.4000%.

2. ETH

Recently the transaction price is $2544.0100, with a daily decline of -2.2000%.

3. CAT

Recent transaction price is $0.0004, with a daily decline of -3.9000%.

4. GOAT

Recent transaction price is 0.8099 US dollars, with an intraday increase of +41.1000%.

5. GT

Recent transaction price is $8.8220, with a daily increase of +1.6000%.

Three. Industry News

1. BTC returns to the $68,000 mark, institutional investors continue to pour in

The price of BTC pumped nearly 2% within 24 hours, breaking through the $68,000 mark again. This pump was mainly driven by continued buying from institutional investors. Data shows that BTC futures ETF attracted over $150 million in inflows in the past week. Meanwhile, the inflation data released last week was slightly lower than expected, exacerbating the market's expectation that the Fed will slow down its pace of interest rate hikes. This further enhances the attractiveness of BTC as an inflation-resistant asset.

Analysts pointed out that the pump in BTC price helps boost investor confidence and attracts more funds into the encryption market. However, they also warned that BTC still faces challenges of geopolitical risks and regulatory uncertainties. If the macroeconomic situation further deteriorates or regulatory policies tighten, it may trigger a pullback in BTC price. Therefore, investors need to closely follow market dynamics and carefully assess risks.

2. The upgrade of ETH network 'Verge' will simplify Node operation and promote ecosystem development

Ethereum co-founder Vitalik Buterin revealed that Ethereum is about to launch the 'Verge' upgrade, aiming to simplify Node operation and drop operating costs. After the upgrade, users can easily run Ethereum Nodes on mobile phones or wearable devices without the need for high-end hardware. This change is expected to drive further development of the Ethereum ecosystem and attract more ordinary users to participate.

Analysts believe that the Verge upgrade will increase the level of Decentralization of the Ethereum network, enhancing its security and reliability. At the same time, it will also drop the barriers to user participation, benefiting the long-term development of the Ethereum ecosystem. However, some analysts also warn that the Verge upgrade may cause network congestion in the short term, leading to issues such as transaction latency. Therefore, users need to closely follow the progress of the upgrade and make corresponding preparations.

3. The Solana ecosystem continues to heat up, with TVL and active Address numbers climbing

The Solana ecosystem has shown strong performance in the past week, with a significant rise in Total Value Locked (TVL) and active Address count. The data shows that the TVL of the Solana ecosystem has risen by nearly 10%, surpassing $4 billion. At the same time, the daily active Address count of Solana has also exceeded 500,000, setting a new historical high.

Analysts say that the continuous growth of the Solana ecosystem is mainly due to its high performance and low transaction fees. With more and more Decentralized Finance, Non-fungible Token, and GameFi projects joining Solana, the ecosystem is forming a virtuous cycle, attracting more users and funds. However, analysts also warn that Solana still faces risks of centralization and network congestion that need to be addressed. If these issues are not effectively alleviated, it may hinder the further development of the Solana ecosystem.

Overall, the cryptocurrency market has remained relatively stable in the past 24 hours. Major coins such as BTC, Ethereum, and Solana have experienced varying degrees of pump, reflecting a recovery in investor confidence in the crypto market. However, the uncertainty of the macroeconomic and regulatory situation remains the main risk facing the market. Investors need to remain cautious, closely follow market dynamics, and carefully assess risks and opportunities.

IV. Project News

1. Solana ecosystem continues to exert efforts, with multiple innovative projects appearing

Project Background

Solana is a high-performance blockchain designed to provide a scalable and low-latency infrastructure for decentralized applications. Since its launch in 2020, the Solana ecosystem has experienced rapid growth and has attracted a large number of developers and projects.

Latest News

At the recent Breakpoint2024 conference, the Solana ecosystem has shown strong development momentum. Several innovative projects released new products at the conference, including PYTH, Wormhole, and Birdeye. These projects cover multiple fields such as Decentralized Finance, Oracle Machine, and cross-chain bridges, demonstrating the diversified development of the Solana ecosystem. At the same time, the conference adopted a compact agenda and innovative sharing formats, attracting many attendees' follow.

Market Impact

The continued strength of the Solana ecosystem is expected to further enhance its influence in the blockchain field. High-performance and low-cost infrastructure provide a good development environment for innovative projects, which is conducive to attracting more developers and funds into the ecosystem. At the same time, diversified application scenarios are also expected to expand Solana's user base and enhance its position in the entire cryptocurrency market.

Industry Feedback

Industry insiders are optimistic about the development prospects of the Solana ecosystem. Analysts believe that Solana's advantages in performance and ecosystem construction will help it seize future development opportunities. However, there are also voices pointing out that Solana needs to further enhance its security and decentralization to ensure long-term sustainable development.

2. The SUI ecosystem is taking shape, and the Move language project is attracting attention.

Project Background

SUI is a brand new blockchain project created by the core team that was involved in the development of Diem (formerly Facebook Cryptocurrency). SUI uses the Move language to write smart contracts and provides a highly scalable architecture. Move language was originally developed by Facebook and later donated to the Diem Association, and it has now become an open source project.

Latest News

During the TOKEN2049 conference, the SUI ecosystem began to take shape. SUI's big pump has attracted a lot of attention, and its incubation plan has also launched multiple projects, such as CETUS, Navi, and Scallop. At the same time, the correlation between Move language and Rust has sparked interest among developers, and some Solana projects have started launching subchain projects on SUI.

Market Impact

The rise of the SUI ecosystem is expected to bring new development opportunities for the Move language. The security and reliability of the Move language have been recognized by the industry. If the SUI ecosystem can continue to grow, it will be beneficial for the application of the Move language in a wider range of fields. At the same time, the SUI ecosystem also provides new development space for developers, and is expected to give birth to more innovative projects.

Industry Feedback

There are different opinions among industry insiders about the development prospects of the Sui ecosystem. Supporters believe that Sui's technical advantages and the background of the Move language will help attract developers and funds. However, some people are concerned that the current number of projects and activity in the Sui ecosystem is still limited and further development is needed to generate sufficient influence.

3. The integration trend of AI and Web3 is prominent, and innovative applications are emerging one after another.

Project Background

Artificial intelligence (AI) and Web3 are two hotspots in the current technology field. The rapid development of AI technology has brought new opportunities to various industries, while Web3 represents a new stage of Internet development. Combining AI with Web3 is expected to give rise to new application scenarios and business models.

Latest News

At the TOKEN2049 conference, multiple innovative projects integrating AI with Web3 were showcased. These included projects representing the Computing track such as Gensyn, Hyperbolic, as well as Web2 type AI projects like Schelling AI. In addition, there were also projects focusing on AI-generated art, such as Title.xyz. These projects demonstrated the potential application prospects of AI+Web3 in different fields.

Market Impact

The integration of AI and Web3 is expected to bring new vitality to the entire Cryptocurrency market. AI technology can enhance the intelligence level and user experience of Web3 applications, while Web3 provides the infrastructure for Decentralization for AI. This integration is expected to give birth to new business models and application scenarios, injecting new momentum into the industry.

Industry Feedback

Industry insiders have optimistic expectations for the prospects of AI+Web3. Analysts believe that this integration is expected to solve many pain points encountered in the development of Web3, such as user experience, scalability, and so on. However, some people are concerned about the uncertainty and security risks of AI technology, and call for high attention to related risks in the industry. Overall, AI+Web3 is seen as an important direction for future development.

V. Economic Trends

1. US inflation data better than expected, the Fed may slow down the pace of rate hikes

Economic Background: The US economy experienced sustained inflationary pressure and a tightening cycle in 2023. The annualized GDP growth rate in the third quarter was 2.6%, slightly below expectations. The inflation rate reached a high of over 9% in the first half of this year, but has eased recently. The unemployment rate remained at a low level of 3.5%.

Important event: The consumer price index (CPI) for October announced by the US Bureau of Labor Statistics rose by 7.7% compared to the same period last year, which is lower than the market expectation of 7.9%. This is the first time that the CPI annual rate has fallen to a single digit since January. The core CPI rose by only 6.3% compared to the same period last year, which is also lower than expected. This data strengthens the expectation that the Fed will slow down the pace of interest rate hikes at the December meeting.

Market reaction: The three major stock indexes in the US pumped after the data was released. The S&P 500 index closed up 5.54%, marking the largest single-day increase since November 2020. Investors generally expect the Fed to raise 50 basis points at the December meeting, ending the super-hike cycle of 75 basis points for four consecutive times. The bond and commodity markets also showed positive reactions.

Expert analysis: Jan Hatzius, Chief Economist at Goldman Sachs, said that inflation pressures are easing but still at a high level. He expects the Federal Reserve to end the interest rate hike cycle in the first half of 2023, with the policy interest rate ultimately reaching a range of 5%-5.25%. Citigroup believes that the Federal Reserve may pause rate hikes in the first quarter of next year.

Six. Regulation & Policy

1. The Netherlands seeks public opinion on the tax monitoring law for Crypto Assets

The Dutch government is seeking public opinion on a proposed law that would require encryption service providers to collect and share user data with local tax authorities to comply with EU regulations. This measure aims to increase transparency in cryptocurrency ownership to prevent tax evasion and avoidance.

The background of this bill is that the European Union passed the encryption tax reporting rules (DAC8) last year, which requires member states to take measures to ensure that tax authorities can access relevant information on cryptocurrency transactions and holdings. As a member of the European Union, the Netherlands needs to formulate domestic regulations in line with this.

According to the proposed rules, service providers such as Crypto Assets exchange will be required to collect and report users' identity information, transaction records, and balance to the Dutch tax authorities. This will enable tax authorities to better monitor the flow of encryption assets and prevent tax evasion. However, the obligations of Crypto Assets holders have not changed, and they still need to declare their holdings to the tax authorities themselves.

Once passed, the bill is expected to take effect in the second quarter of 2025. Currently, the Dutch government is soliciting public opinions on the details of the bill, and the opinion collection will continue until November 21st.

Industry insiders have mixed reactions to this policy. Some believe that it will contribute to the development of Compliance in the cryptocurrency industry, improve transparency, and gain more trust from institutional investors. However, some are concerned that excessive regulation may hinder industry innovation and infringe on user privacy.

Siân Jones is an advisor to the cryptocurrency think tank Coin Center. She said, "We understand that governments need to crack down on tax evasion, but at the same time, privacy protection needs to be balanced. We hope to see a regulatory framework that strikes a balance between achieving tax objectives and not excessively infringing on individual rights."

Overall, the Dutch move reflects the EU's commitment to strengthening regulation of Crypto Assets and integrating them into the existing tax system. As encryption assets become more widespread, establishing clear regulatory rules will help maintain market order and promote the healthy development of the industry.