7.3 AI Daily The Crypto Assets industry welcomes new opportunities and challenges: regulatory rules become clearer, and innovative applications continue to emerge.

1. Headlines

1. OpenAI refutes the "OpenAI token" plan: not company equity

OpenAI released a statement on July 2, refuting the actions of a trading platform that offers a tokenized version of its private company shares. OpenAI clearly stated on its social media: "These 'OpenAI tokens' are not equity of OpenAI. We have no partnership with them, nor do we endorse them."

It was previously announced that multiple tokenized equity products from private companies, including "OpenAI tokens," would be launched. However, OpenAI emphasized that these tokens are not related to the company and are not officially issued. This move has sparked widespread skepticism and concern among regulators and industry professionals.

OpenAI's statement aims to clarify the facts and prevent investors from being deceived. The practice of tokenizing private company equity carries potential risks that may harm investors' rights. Regulatory authorities are closely monitoring such behaviors and may take action to maintain market order. OpenAI's clear stance helps to eliminate market concerns and safeguard the company's image and investors' interests.

2. North Korean hackers use new Mac malware to attack cryptocurrency companies

According to a report by cybersecurity company Sentinel Labs, North Korean hackers are using a new type of malware called "NimDoor" targeting Apple devices to attack cryptocurrency companies. The hackers impersonate trusted individuals through instant messaging apps, sending fake Zoom update files that actually install the malware.

NimDoor is written in the rare Nim programming language, capable of bypassing Apple's memory protection mechanisms to deploy information stealing programs targeting cryptocurrency wallets and browser passwords. The Nim language, known for its cross-platform capabilities, fast compilation speed, and difficulty in detection, is becoming the new favorite of cybercriminals.

Malware also includes scripts for stealing Telegram's encrypted database and decryption keys, and will wait for 10 minutes before activation to evade security scans. This indicates that the hacker organization possesses a high level of professionalism and is highly targeted, posing a serious threat to encryption companies.

Industry insiders call for increased security awareness, timely repair of system vulnerabilities, and prevention of hacker attacks. Cryptocurrency companies should also remain vigilant, enhance employee security training, and protect user asset safety.

3. Ripple has applied for a banking license in the United States, and is expected to be approved to issue stablecoins.

According to reports, Ripple has submitted a national bank charter application to the Office of the Comptroller of the Currency ( OCC ). If approved, Ripple will be able to issue stablecoins and provide other banking services across the United States.

Previously, Ripple had applied for a master account with the Federal Reserve through its trust company Standard Custody, which it acquired last year. Obtaining a master account is more significant in terms of access than obtaining an OCC license.

Ripple has been actively embracing regulation in order to gain legal status. The stablecoin business is one of its key development directions. If the application is approved, it will help promote the development of the Ripple ecosystem and enhance its competitiveness in the payment and cross-border remittance sectors.

However, the application process may encounter resistance. Regulatory agencies still have differing views on the regulatory policies for stablecoins, and the lawsuit between Ripple and the Securities and Exchange Commission may also have an impact. Overall, Ripple's efforts are expected to pay off, helping it establish a foothold in the traditional financial sector.

4. Ethereum founder Vitalik: Decentralization cannot stop at slogans

Ethereum co-founder Vitalik Buterin emphasized at the EthCC conference in France that decentralization cannot remain just a slogan, but must be ensured through practical testing to protect user rights. He proposed three core testing standards:

1. Exit Test: Are user assets safe after the project party disappears?
2. Internal Attack Test: The system's ability to resist internal malfeasance;
3. Trusted Computing Basic Test: The amount of code required to protect user assets that requires trust.

Vitalik pointed out that most current Layer 2 networks and DeFi projects rely on mutable backdoors or centralized front ends, and privacy solutions often expose user transaction history due to reliance on third-party logins. He emphasized the need to make privacy a default feature and to streamline the trust base of the code.

Vitalik's speech aims to remind the industry to focus on the practical implementation of decentralization, rather than remaining at the level of slogans and concepts. Only by truly achieving decentralization can we maximize the protection of user rights and fulfill the original intention of blockchain technology. His views have sparked heated discussions within the industry, helping to promote the sector's development towards a more decentralized direction.

5. The decrease in Bitcoin supply has triggered bullish expectations.

On-chain data shows that the active supply of Bitcoin has significantly cooled down in the past month. Analysts believe that this decrease in supply typically indicates increased scarcity and heightened upward pressure.

The cost basis for short-term Bitcoin holders is $27,000, indicating bullish sentiment that may drive the price to $117,000. Institutional demand is rising, boosted by significant ETF inflows and accumulation by major players.

However, professional traders remain cautious about the market. Factors such as the expansion of the eurozone money supply and the weakness of the US labor market are affecting the market trends. The discount on USDT in China is 1%, indicating insufficient investor confidence. The net outflow of the spot Bitcoin ETF is $342 million, exacerbating market uncertainty.

Overall, the decrease in Bitcoin supply has triggered certain bullish expectations. However, the market environment is complex and ever-changing, and investors need to closely monitor the macro situation, combining technical and fundamental analysis for judgment, and operate with caution.

2. Industry News

1. Bitcoin price breaks through the $109,000 mark, investor confidence continues to strengthen.

Bitcoin's price has risen over 3% in the past 24 hours, breaking through the $109,000 mark and setting a new yearly high. This strong performance is mainly driven by investor optimism about the prospects of cryptocurrencies.

Analysts point out that the continuous rise in Bitcoin prices reflects an increasing confidence among investors in its long-term value. Despite recent market volatility, the appeal of Bitcoin as an alternative investment and store of value continues to grow. Additionally, the significant entry of institutional investors has injected new momentum into Bitcoin.

However, some analysts are skeptical about whether Bitcoin can maintain its upward momentum in the short term. They warn that the Bitcoin price may encounter resistance after breaking through the $110,000 mark, as this level has previously served as a historic resistance point. At the same time, geopolitical tensions and macroeconomic uncertainties may also limit Bitcoin's upside potential.

Overall, the upward momentum of Bitcoin's price is encouraging, but investors should remain cautious and closely monitor the potential risk of a pullback. In a highly uncertain market environment, it is crucial to diversify investments moderately and control risks.

2. Ethereum trading volume surges, price is expected to break through the resistance of 2,800 USD.

The price of Ethereum has risen nearly 5% in the past 24 hours, currently hovering above $2,600. The significant increase in trading volume is seen as the main driver of this upward trend.

Data shows that Ethereum's trading volume increased by over 20% in the past day, reaching a record $18 billion. Analysts believe that this phenomenon reflects investors' optimistic sentiment towards the development prospects of the Ethereum ecosystem.

Ethereum, as a leading smart contract platform, is continuously expanding its applications in emerging fields such as decentralized finance ( DeFi ) and non-fungible tokens ( NFT ). With the gradual advancement of the Ethereum 2.0 version, the network's scalability and efficiency are expected to improve further, thereby attracting more users and developers to join.

However, some analysts are cautious about whether Ethereum can break through the key resistance level of $2,800 in the near term. They point out that while the increase in trading volume is a positive factor, investor sentiment may turn cautious as the price approaches historical highs.

Overall, the continuous development of the Ethereum ecosystem provides strong support for its price increase. However, investors need to closely monitor changes in both technical and fundamental aspects to seize potential profit opportunities.

3. The price of Solana may fluctuate in the short term, pay attention to long-term development prospects.

Solana is one of the most outstanding cryptocurrencies recently, with its price rising over 30% in the past month. However, in the last 24 hours, its price has seen a slight pullback, raising market concerns about its future.

Analysts believe that the short-term fluctuations in Solana's price are primarily influenced by profit-taking. After several days of continuous gains, some investors have chosen to lock in profits, leading to price pressure. Additionally, the overall cryptocurrency market is showing a volatile pattern, which also affects Solana's price.

However, in the long term, the development prospects of Solana are still worth looking forward to. As a high-performance blockchain network, Solana has a broad application prospect in the fields of decentralized applications (DApp) and NFTs. Its advantages of low transaction fees and high throughput are expected to attract more users and developers to join.

Some well-known investment institutions and cryptocurrency exchanges have recently invested in the Solana project, reflecting the market's recognition of its long-term value. Therefore, investors can take advantage of Solana's short-term price fluctuations to gradually build positions at suitable price levels.

Overall, the price of Solana may fluctuate in the short term, but its long-term development prospects remain promising. Investors need to be patient and closely monitor project progress and technological innovations to seize potential investment opportunities.

3. Project Highlights

1. Sui Network: The Rise of a New Star in the Move Ecosystem

Sui Network is an emerging Layer 1 blockchain project aimed at providing high-performance, low-cost infrastructure for Web3 applications through the Move programming language and a brand new execution engine. The project is initiated by core team members who were involved in the development of Diem and has received support from organizations such as Mysten Labs and Andreessen Horowitz.

Latest news: During the TOKEN2049 conference, Sui Network attracted significant attention. Its mainnet went live in May this year and launched the first batch of ecosystem projects, including the decentralized exchange Cetus and NFT marketplace. Additionally, Sui announced a partnership with Grayscale Trust to launch the USDC stablecoin on Sui. This marks the gradual improvement of the Sui ecosystem.

Market Impact: As one of the most promising projects in the Move ecosystem, the development of Sui Network will bring new vitality to the entire Move ecosystem. Its high performance and low-cost characteristics are expected to attract more developers and projects to settle in, promoting the prosperity of the Move ecosystem. At the same time, Sui's collaboration with Grayscale Trust will also bring more capital inflow and user adoption.

Industry feedback: Analysts believe that the technical advantages and ecosystem development of Sui Network are promising. However, the Move ecosystem is still in its infancy, and whether Sui can become the next Solana or Avalanche remains to be seen. Undoubtedly, Sui is bringing new opportunities and development momentum to the Move ecosystem.

2. Aptos: A new generation blockchain built by former Meta employees

Aptos is an emerging blockchain project initiated by former Meta (Facebook) employees, aiming to achieve high throughput and low latency through an innovative consensus mechanism and parallel execution engine. The project has received support from institutions including a16z and Jump Crypto, with funding exceeding $350 million.

Latest Update: Aptos officially launched its mainnet in March this year and introduced its first batch of ecosystem projects, including decentralized exchanges and NFT markets. At the TOKEN2049 conference, Aptos showcased its latest progress, including the launch of the USDC stablecoin in collaboration with Paypal and a strategic partnership with Google Cloud.

Market Impact: As an emerging blockchain project, Aptos is expected to secure a place in the future blockchain competition with its innovative technical architecture and strong financial strength. Its high performance and low latency characteristics are likely to attract more developers and users from application scenarios such as DeFi and GameFi.

Industry Feedback: Analysts believe that Aptos's technological innovations are worth paying attention to, but whether it can stand out in an already crowded blockchain market remains to be seen. At the same time, Aptos's collaborations with traditional tech giants have raised questions about the level of decentralization. Overall, Aptos is viewed as an emerging project with great potential.

3. Celestia: The Pioneer of Modular Blockchains

Celestia is an emerging project aimed at solving the problem of blockchain fragmentation. It adopts a modular design that allows different blockchains to interoperate by sharing security and data availability modules. The project was initiated by a former researcher from the Ethereum Foundation and has received support from institutions including Polychain Capital.

Latest Update: Celestia officially launched its mainnet in April this year and introduced the first batch of ecosystem projects, including Cevmos and Evmos. At the TOKEN2049 conference, Celestia showcased its latest progress, including collaborations with projects like Avail and the release of new developer tools and documentation.

Market Impact: As a pioneer of modular blockchain, Celestia's development will bring new possibilities to the entire blockchain ecosystem. Its modular design is expected to address interoperability issues between blockchains, facilitating the flow of assets and data across different blockchains. At the same time, Celestia also provides developers with a more flexible and efficient development environment.

Industry feedback: Analysts believe that Celestia's modular design approach is innovative and forward-looking, but its implementation difficulty and feasibility still need to be verified. At the same time, Celestia also faces competition from other interoperability solutions. Overall, Celestia is seen as an innovative project with great potential.

4. Gensyn: Innovation in the Integration of AI and Blockchain

Gensyn is an innovative project dedicated to combining artificial intelligence with blockchain technology. It aims to provide powerful AI capabilities for Web3 applications by building a decentralized artificial intelligence infrastructure. The project was initiated by former employees of OpenAI and Google Brain and has received support from institutions including Polychain Capital.

Latest News: At the TOKEN2049 conference, Gensyn showcased its latest developments, including the launch of a blockchain-based artificial intelligence training and deployment platform, and partnerships with multiple ecological projects. Additionally, Gensyn announced the upcoming release of an AI-assisted development tool based on its technology.

Market Impact: As a pioneer in the integration of AI and blockchain, Gensyn's development will bring new opportunities and challenges to the entire Web3 ecosystem. Its decentralized AI infrastructure is expected to address privacy and security issues in traditional AI systems, while also providing robust AI capability support for Web3 applications.

Industry feedback: Analysts believe that Gensyn's innovative ideas are worth paying attention to, but the difficulty and cost of its technical implementation cannot be ignored. At the same time, the integration of AI and blockchain has also raised some ethical and regulatory concerns. Overall, however, Gensyn is seen as an innovative project with enormous potential.

5. Hyperbolic: A Distributed Computing Platform for the Web3 Era

Hyperbolic is an emerging project aimed at providing distributed computing capabilities for Web3 applications. It employs an innovative computing architecture that allows computation tasks to be distributed across multiple nodes, achieving efficient and scalable computing power. The project was initiated by former Google employees and has received support from institutions including Polychain Capital.

Latest Update: At the TOKEN2049 conference, Hyperbolic showcased its latest progress, including the launch of a distributed computing platform based on its technology and partnerships with multiple ecosystem projects. Additionally, Hyperbolic announced the upcoming launch of an AI training and deployment solution based on its technology.

Market Impact: As an innovator in the field of distributed computing, the development of Hyperbolic will bring new computational capabilities to the entire Web3 ecosystem. Its distributed computing architecture is expected to address performance and scalability issues present in traditional computing systems while also providing robust computational support for Web3 applications.

Industry feedback: Analysts believe that Hyperbolic's innovative approach is worth paying attention to, but the difficulty and cost of its technical implementation cannot be ignored. At the same time, distributed computing has also raised some security and privacy concerns. However, overall, Hyperbolic is seen as an innovative project with great potential.

6. Schelling AI: An AI Collaboration Platform for the Web3 Era

Schelling AI is an emerging project aimed at providing artificial intelligence collaboration capabilities for Web3 applications. It employs an innovative collaborative architecture that allows multiple AI systems to cooperate and interact in a decentralized environment, thereby achieving smarter and more efficient decision-making capabilities. The project was initiated by former employees of OpenAI and Google Brain and has received support from institutions including Polychain Capital.

Latest news: At the TOKEN2049 conference, Schelling AI showcased its latest developments, including the launch of an AI collaboration platform based on its technology and partnerships with multiple ecosystem projects. At the same time, Schelling AI also announced the launch of an AI-assisted decision-making tool based on its technology.

Market Impact: As an innovator in the field of artificial intelligence collaboration, the development of Schelling AI will bring new intelligent decision-making capabilities to the entire Web3 ecosystem. Its collaborative architecture is expected to address the limitations of traditional artificial intelligence systems, while also providing smarter and more efficient decision support for Web3 applications.

Industry feedback: Analysts believe that Schelling AI's innovative ideas are worth paying attention to, but the difficulty and cost of its technical implementation cannot be ignored. At the same time, AI collaboration has also raised some ethical and security concerns. Overall, however, Schelling AI is seen as an innovative project with immense potential.

7. Title.xyz: AI Creation Platform in the Web3 Era

Title.xyz is an emerging project aimed at providing artificial intelligence creative capabilities for Web3 applications. It adopts an innovative creative architecture that allows users to create and generate content such as images and videos through artificial intelligence technology, thereby achieving more efficient and innovative content production capabilities. The project was initiated by former Midjourney employees and has received support from institutions including Polychain Capital.

Latest news: At the TOKEN2049 conference, Title.xyz showcased its latest progress, including the launch of an AI creation platform based on its technology and partnerships with multiple ecosystem projects. At the same time, Title.xyz also announced the launch of an AI-assisted content creation tool based on its technology.

4. Economic Dynamics

1. The U.S. non-farm payroll data for June fell short of expectations, raising concerns in the market about economic slowdown.

The U.S. Department of Labor reported on Friday that the non-farm payroll data for June showed only 209,000 new jobs, far below the expected 230,000, and the lowest level since April 2021. This data has intensified market concerns about an economic slowdown.

Economic Background: The US economy began to slow down in the second half of 2022, with an annualized GDP growth rate of only 1.3% in the first quarter of 2023. Although the inflation rate has declined, it remains above the Federal Reserve's target level of 2%. The unemployment rate hovers around 3.6%, and the job market continues to remain relatively robust.

Important events: The Federal Reserve has been raising interest rates since March last year to curb inflation, resulting in higher borrowing costs. Meanwhile, geopolitical tensions and disruptions in the global supply chain have also posed obstacles to economic recovery. The U.S. government has launched a series of spending plans to stimulate economic growth, but the effects have been limited.

Market reaction: After the release of non-farm payroll data, the three major U.S. stock indices fell collectively, as investors worry that an economic slowdown will affect corporate earnings. The dollar index slightly declined, as the market expects the Federal Reserve to slow down the pace of interest rate hikes. Bond yields fell, reflecting investors' pessimistic sentiment regarding the economic outlook.

Expert Opinion: Goldman Sachs Chief Economist Jan Hatzius stated that the labor market is slowing down but is still far from peaking. He expects the Federal Reserve to pause interest rate hikes in September and to start cutting rates in 2024. Meanwhile, JPMorgan economist Michael Feroli believes that a weak labor market may prompt the Federal Reserve to start cutting rates as early as July. Overall, economists have differing views on the outlook for the US economy.

5. Regulation & Policy

1. The Hong Kong Monetary Authority promotes the development of stablecoins, and Huaxia Fund explores integrated applications.

The Hong Kong Monetary Authority recently issued Policy Declaration 2.0, which establishes a gradual and systematic development strategy for stablecoins. Gan Tian, the CEO of China Asset Management ( Hong Kong ), stated that the stablecoin business is currently at a critical stage of transitioning from policy implementation to scenario piloting, having reached the tipping point of "basic rules established, application scenarios awaiting explosion."

The Hong Kong Monetary Authority, as the regulatory body, has outlined its vision and plans for the development of stablecoins in Policy Declaration 2.0. The declaration proposes a series of measures, including the establishment of a regulatory framework for stablecoin issuers, promoting the use of stablecoins in payment and settlement applications, and exploring cross-border payments. These initiatives aim to create a favorable regulatory environment for stablecoins, facilitating their application and innovation in the financial sector.

Huaxia Fund ( Hong Kong ) participated in the stablecoin sandbox testing launched by the Monetary Authority, exploring integrated applications in payment, subscription and redemption, and asset management. Gan Tian pointed out that in the future, whoever can first break through the "compliance + implementation + asset connection" closed loop will have the chance to become a market leader. He believes that the Hong Kong Policy Declaration 2.0 demonstrates a deeper development vision, which will significantly enhance market operation quality and promote business innovation and market participation.

Industry insiders generally believe that stablecoins have broad prospects in areas such as cross-border payments and digital finance. As an international financial center, Hong Kong's policy support and innovative atmosphere will drive the local stablecoin ecosystem to develop in a sustainable direction. However, some experts also remind that regulatory agencies need to balance innovation with risk management to ensure the market operates healthily and orderly.

2. The Securities Industry and Financial Markets Association in the United States opposes tokenized stocks and urges the SEC to reject the exemption application.

The Securities Industry and Financial Markets Association ( SIFMA ) recently sent a letter to the U.S. Securities and Exchange Commission ( SEC )'s cryptocurrency working group, opposing requests from cryptocurrency companies like Coinbase for exemptions to issue tokenized stocks, stating that the related requests are "seriously concerning." SIFMA calls on the SEC to solicit public input through an open process to avoid rapid approvals in an opaque manner.

SIFMA is the primary trade association representing the interests of the U.S. securities industry, with members including large investment banks, broker-dealers, and asset management firms. The association stated in the letter that if the relevant exemption application is approved, cryptocurrency companies will be able to offer securities to the public "outside the regulatory framework established by federal securities law," which is the source of many key investor protection measures.

SIFMA raised several concerns, including whether the relevant companies need to become members of the Financial Industry Regulatory Authority ( FINRA ), how investors are protected, and how the SEC supervises unregistered entities. The association believes that for the introduction of new trading and issuance models, as well as other potential policy issues, the SEC should adopt a more transparent public process that allows for broader industry participation and feedback, rather than simply addressing these through immediate exemption requests.

Tokenized stocks are seen as an innovative attempt to merge traditional finance with cryptocurrency. Proponents argue that it can enhance liquidity, reduce transaction costs, and create opportunities for more investors to participate in the private market. However, critics worry that it may circumvent existing regulations and undermine investor protection.

SEC Chairman Paul Atkins had previously expressed support for tokenization but emphasized the need for clear rules. Industry insiders generally expect that before making a final decision, the SEC will weigh the pros and cons and listen to various opinions.

3. North Korean hackers use new Mac malware to attack cryptocurrency projects

According to a report by cybersecurity company Sentinel Labs, a North Korean hacking group is using a new type of malware called "NimDoor" to target cryptocurrency companies and individual wallets. This malware is written in the rare Nim programming language and is capable of bypassing Apple's memory protection mechanisms, deploying information theft programs specifically targeting cryptocurrency wallets and browser passwords.

The report pointed out that hackers impersonated trusted individuals on instant messaging applications like Telegram, sending counterfeit Zoom update files that actually installed the NimDoor malware. This software also contains a script capable of stealing the Telegram encrypted local database and decryption keys, and it waits for 10 minutes before activation to evade security scans.

The Nim language, which can run on Windows, Mac, and Linux without modification, and is characterized by fast compilation speed and difficulty in detection, is becoming a new favorite among cybercriminals. Cybersecurity experts indicate that the NimDoor attack incident once again highlights the cybersecurity threats faced in the cryptocurrency field, and both individuals and enterprises need to remain vigilant and strengthen protective measures.

The risk of hacking attacks faced by cryptocurrency companies and wallet service providers is becoming increasingly severe. In addition to North Korean hacker groups, other criminal organizations also view cryptocurrency projects as primary targets. Industry insiders are calling for regulatory agencies and industry organizations to strengthen law enforcement efforts to combat cybercrime activities, while cryptocurrency enterprises must also continuously enhance security measures to protect user funds and data.

4. The U.S. Securities and Exchange Commission supports tokenization and clarifies cryptocurrency rules.

The chairman of the U.S. Securities and Exchange Commission, Paul Atkins, recently spoke, stating that the SEC is transitioning towards a more innovative approach to cryptocurrency regulation, focusing on clarity and market efficiency while maintaining investor protection. He emphasized support for tokenization to promote industry development.

Atkins pointed out that tokenization is not only applicable to public markets but also opens new opportunities for private companies and private credit markets. The SEC is committed to promoting the development and innovation of financial markets through clear rules and regulatory support. He believes that the SEC should no longer block market innovation by using "enforcement instead of rules," but rather make the rules clearer so that all participants understand the compliance requirements.

The discussion on expanding access to private assets has sparked a craze for tokenized stocks. Atkins stated that the SEC does not view this as a backdoor approach, but rather as a form of innovation. He emphasized that the SEC should not block market innovation by using "enforcement instead of rules"; what is needed now is to clarify the rules so that everyone knows how to operate in compliance.

Industry insiders generally believe that Atkins's speech conveys the signal that the SEC will further clarify the regulatory rules for cryptocurrency, which is beneficial for the industry's development. However, some experts remind that while regulatory agencies encourage innovation, they also need to balance investor protection and prevent potential risks.

The emergence of innovative practices such as tokenized stocks reflects the trend of accelerated integration between traditional finance and cryptocurrencies. Industry insiders hope that the SEC will clarify relevant regulations as soon as possible to create a favorable regulatory environment for new financial products and services.