11.13 AI Daily: Trump Nominates Cryptocurrency Advocate as Secretary of Defense, Sparking Industry Follow

1. Headline

1. Trump nominates Fox News host Pete Hegseth as Secretary of Defense

President Trump nominated Fox News host Pete Hegseth as Secretary of Defense. Hegseth graduated from Princeton University and holds a graduate degree from Harvard University. He has served in Guantanamo Bay, Iraq, and Afghanistan, and has been awarded two Bronze Star Medals and a Combat Infantryman Badge for his outstanding performance on the battlefield.

As the host of Fox News Channel, Hegseth has always been a supporter of Crypto Assets, believing that the value of Crypto Assets lies in the absence of government control. If he were to become the Secretary of Defense, the Pentagon might potentially implement a strategy using Crypto Assets, which would have far-reaching implications for the military field. The Decentralization and anonymity features of Crypto Assets could be used for covert military fund transfers. At the same time, the Proof of Work mechanism of Crypto Assets is also considered to be of significant importance to national cybersecurity.

However, Hegseth’s appointment still needs to be confirmed by the Senate. Given the controversy surrounding cryptocurrency in Congress, his nomination could spark intense debate. Nonetheless, cryptocurrency is gradually becoming mainstream, and its application in the military and defense fields is worth following.

2. The first stablecoin USDC of the Sui ecosystem is launched, paving the way for Decentralized Finance applications.

Mysten Labs announced that the first stablecoin USDC in the SUI ecosystem has been launched on the SUI mainnet. USDC is a fully US dollar-backed encryption stablecoin from Circleissuance, widely popular and trusted in the Cryptocurrency market.

The launch of USDC marks a crucial step towards the direction of Decentralized Finance applications in the Sui ecosystem. Stablecoin can provide value anchoring for Decentralized Finance applications on Sui, mitigating fluctuation risks and laying the foundation for complex financial applications such as lending and derivatives. In addition, USDC can also serve as a settlement and payment medium within the Sui ecosystem, enhancing liquidity of funds.

Analysts believe that USDC has brought more opportunities to the Sui ecosystem. On the one hand, it attracts more follow from traditional Financial Institutions, which is beneficial to the development and growth of the Sui ecosystem. On the other hand, the introduction of stablecoins will also promote the innovation of Decentralized Finance applications on Sui, providing users with more financial product choices.

However, some analysis points out that the SUI ecosystem is still in its early stages and the development of Decentralized Finance applications will take time. The launch of USDC is just the first step, and more Application Layer construction as well as regulatory policy support will be needed in the future to truly unleash the potential of the SUI ecosystem.

3. OpenAI launches AI collaboration platform Kite, community-driven model training program “Save the Llama”

The well-known artificial intelligence company OpenAI has launched a new AI collaboration platform Kite AI. Kite AI aims to coordinate and democratize access to artificial intelligence assets (data, models, and agents).

At the same time, OpenAI has also launched a community-driven artificial intelligence program “Save the Llama”. The program encourages community contributors to help train language models in real time, and contributors can earn points based on the performance of the model. This practice helps OpenAI obtain more training data, improve the performance and generalization ability of the model.

The analysis pointed out that Kite AI and the “Save the Llama” plan reflect OpenAI’s new attempts in democratizing AI and Open Source. Through community collaboration, OpenAI hopes to build a more transparent and inclusive artificial intelligence ecosystem.

However, some analysts have expressed concerns about this. They believe that without effective regulatory and review mechanisms, Open Source AI may pose security risks and be abused to generate harmful content. Therefore, while promoting the democratization of AI, balancing issues such as privacy, security, and ethics will be a new challenge for OpenAI.

4. The EU MiCA Regulation is about to be introduced, encryptionexchangegate.MT is allowed to operate in Europe

According to reports, Cryptocurrency exchange gate.MT is in the final stages of the EU MiCA license approval, poised to play a key role in the evolving encryption market in Europe.

MiCA (Markets in Crypto-Assets) is the EU’s first comprehensive encryption asset regulatory framework, aiming to create an orderly, transparent, and secure environment for encryption asset markets. MiCA will provide a “passport” for encryption companies to operate within the EU, which is conducive to the development of the encryption industry.

The CEO of gate.MT stated that the company is committed to promoting the access of secure and reliable encryption assets and setting standards for regulated markets in Europe. After obtaining the MiCA license, gate.MT will be able to legally provide cryptocurrency trading services throughout the European Union.

Analysts believe that the introduction of MiCA will bring new opportunities to the encryption market in Europe. On the one hand, a unified regulatory framework is conducive to attracting more institutional investors and promoting the mainstreaming of encryption assets; on the other hand, it will also force encryption companies to improve compliance and create a safer and more reliable environment for investors.

However, some also point out that some provisions of MiCA may be too strict, which will increase the operating costs of encryption companies and affect industry innovation. How to seek a balance between regulation and innovation in the future will be a major challenge for EU encryption regulation.

5. Bitcoin breaks through $87,000, volume hits a new record high

According to the data, the volume of BTC has surpassed $145 billion in the past 24 hours, setting a new historical high, nearly 50% higher than the flash crash in early August and the peak in March this year. This surge in volume indicates that retail investors are returning to the crypto market.

At the same time, the BTC price also experienced a big pump, once breaking through the $87,000 mark. Analysts say the BTC price is expected to ‘easily’ reach $100,000 by the end of the year. Everyone is following new entrants to buy BTC, which is a very real phenomenon, but another reason for this rebound is that long-term holders are no longer willing to sell BTC at prices below $100,000, and short sellers are also unwilling to fight the big trend.

Analysis suggests that the simultaneous rise in BTC volume and price reflects investors’ optimistic expectations for the future of BTC. The improvement of the global macroeconomic situation, the continuous entry of institutional investors, and the continued development of the BTC ecosystem have laid the foundation for the BTC bull market.

However, some analysts have also warned that BTC may still face some resistance, such as regulatory policy uncertainty. But overall, the foundation of six-figure prices has begun, and this rebound could consolidate BTC’s position as a cornerstone of the global financial system.

2. Industry Data

1. GT

GT recent transaction price $10.0270, intraday increase 5.60%.

2. SOL

SOL recent trading price is $221.6500, with a daily gain of 6.60%.

3. BTC

BTC recently traded at $89,031.9000, up 9.80% within the day.

4. ETH

ETH recent transaction price is $3,369.1000, with a daily increase of 7.30%.

5. DOGE

DOGE recently traded at $0.4122, with a daily increase of 46.30%.

三. Industry News

1. BTC breaks through the $89,000 mark, hitting a new all-time high

The BTC price broke through the $89,000 mark on November 13, setting a new historical high. This rise was mainly driven by the Favourable Information of Trump’s election as President of the United States. Analysts believe that the Trump administration is expected to introduce Crypto-friendly policies, bringing long-term Favourable Information for digital assets such as BTC. In addition, the continued influx of institutional investors is also an important driving force behind the continued pump of BTC price.

volume data shows that the volume of BTC has surpassed 145 billion USD in the past 24 hours, reaching a historical high. This indicates that retail investors are returning to the crypto market. According to historical data, during the Bull Market phase, the active trading period of retail investors usually lasts for several weeks or even months, so the rise in volume can be considered a bullish signal.

However, some analysts also warned that BTC prices may experience a pullback in the short term. They believe that the current price has significantly exceeded the reasonable valuation range, and investors taking profits may trigger a certain degree of pullback. Therefore, investors need to closely follow the future trend and do good Risk Management.

2. ETH breaks through the $3300 mark, returning to the Bull Market

The price of Ethereum broke through the $3300 mark on November 13, returning to the bull market. Analysts believe that this surge is mainly driven by the increased activity in the Ethereum ecosystem and the continuous inflow of institutional funds.

Data shows that in the past week, core indicators such as the number of active addresses and transactions in the Ethereum ecosystem have significantly risen. This indicates that the Ethereum ecosystem is continuing to heat up, attracting more users and funds. At the same time, several institutional investors are also continuously increasing their holdings of Ether, providing strong support for the pump in price.

However, some analysts are cautious about the future trend of Ether. They believe that the current valuation of Ether is relatively high and may face some profit-taking pressure in the future. In addition, although the activity of the Ether ecosystem has increased, it has not fully recovered to the level of the Bull Market period, which may to some extent limit the upward space of the price.

3. Solana ecosystem continues to heat up, SOL price breaks $200

The Solana ecosystem continues to heat up, with SOL prices breaking through the $200 mark on November 13. Analysts believe that the increasing activity in the Solana ecosystem and the continuous entry of new projects are the main driving forces behind the pump in SOL prices.

The data shows that in the past week, the core indicators such as the number of active addresses and transactions in the Solana ecosystem have risen significantly. At the same time, the Solana ecosystem has also attracted several new projects to settle in, including lending protocol Suilend, Decentralization exchange Reflect, etc. The addition of these new projects further enriches the Solana ecosystem and enhances its attractiveness.

However, some analysts have raised questions about the sustainable development of the Solana ecosystem. They believe that the current prosperity of the Solana ecosystem is partly driven by Airdrops and Liquidity Mining, and the actual user base is limited. If the Airdrop and Mining activities end, the Solana ecosystem may face the risk of user attrition.

Overall, the Solana ecosystem is expected to maintain its momentum in the short term, but long-term development still needs to attract more real users and build a sustainable business model.

Four. Project Highlights

1. Monad Madness Bangkok final shortlist announced

Monad announced the final selection list of Monad Madness Bangkok, with a total of 25 projects scheduled for on-site sharing on November 16th and the final list of finalists determined. The selected projects cover multiple tracks including AI, games, Decentralized Finance, etc.

Monad Madness is an important event launched by Monad, providing the largest stage for any team building projects on its platform. The event will select different teams to participate in the competition at each competition venue, and over 60 venture capital institutions will watch the roadshow, with expressed investment intentions exceeding $60 million.

The release of this selected list reflects the flourishing development of the Monad ecosystem and has attracted many excellent projects to join. This not only provides an opportunity for the project party to showcase themselves, but also brings abundant investment targets for investors. Monad is becoming an important track in the Web3 field, and its ecological construction is worth continuous follow.

2. The bankruptcy estate manager of FTX has initiated 23 new lawsuits to recover funds.

According to reports, the bankruptcy estate management of FTX has initiated 23 new lawsuits against institutions such as Binance, Anthony Scaramucci, SkyBridge Capital, etc., in an attempt to recover funds for creditors.

These allegations claim that the funds transferred to these organizations were part of a larger ‘influence-buying campaign’ orchestrated by Sam Bankman-Fried, the founder of FTX. According to the lawsuit, Bankman-Fried funneled funds into the political and TradFi sectors through sponsorships, investments, and donations to enhance his reputation while concealing FTX’s increasingly precarious financial instability.

The impact of the FTX incident continues to expand, and related lawsuits are increasing. These lawsuits aim to recover misappropriated funds, seek benefits for creditors, and further uncover the hidden secrets of FTX’s internal operations. The encryption industry is undergoing a profound reshuffle, and regulation and self-discipline will be crucial for future development.

3. Bernstein: Trump’s policies will bring a cryptocurrency bull market

Analysts at Bernstein predict that the Cryptocurrency market Bull Market led by Trump’s BTC policy is imminent. The company recommends active investment, focusing on key options such as following Spot BTC and ETH Block ETF, Crypto mining companies, and companies with a large amount of BTC Holdings. Bernstein remains confident in the price target of $200,000 for BTC by the end of 2025.

Meanwhile, Cryptocurrency has become a hot target for cybercriminals, who rely on its Anonymity and lack of regulation. In Thailand, a tourist was robbed at gunpoint in a hotel and had 250,000 USDT stolen.

Bernstein’s optimistic forecast has sparked market discussions. On the one hand, the Trump administration is expected to introduce Favourable Information policies, creating a favorable environment for Crypto Assets development; on the other hand, the existence of criminal activities in Crypto Assets cannot be ignored, and the industry urgently needs to strengthen supervision and risk control. Overall, the outlook for the Crypto Assets market is broad, but it also faces many challenges, requiring joint efforts from all parties to promote the healthy development of the industry.

4. The BTC ecosystem is still lagging behind in Asia

Although the total Market Cap of BTC ecosystem projects is close to 10 billion US dollars, the rise speed is very fast, but in the entire cryptocurrency market, Chinese people barely have a place, and other tracks are basically lagging behind.

The BTC ecosystem merch activities are mostly empty, which is in stark contrast to the booming scene of the Ton ecosystem. An encryption practitioner said that entrepreneurs and investors in the entire industry are rushing towards the “encryption scam” like discovering a new narrative, forming a unanimous consensus. The industry’s current predicament is not only due to the larger background, but also the phase of the underlying logic’s death.

Although the BTC ecosystem has developed rapidly, its influence in the Asian region is still limited. Compared with other popular ecosystems, the BTC ecosystem lacks leaders and outstanding projects, making it difficult to ignite market enthusiasm. In the future, the BTC ecosystem needs to cultivate more excellent projects and application scenarios in order to gain wider recognition and follow in the Asian region.

5. The encryption industry is in a period of confusion, and innovation and real-world applications are key.

Recently, popular tracks such as full-chain gaming, Non-fungible Token, Web3 social, and ETH blockchain L2 have been frequently frustrated and developing slowly, leaving practitioners feeling pessimistic and confused. Some investors and entrepreneurs have started to turn to meme-related tracks.

An investor bluntly stated that 98% of AI+Web3 applications have been falsified, and current AI projects are all MEME. Another entrepreneur said that it is too difficult to do Web3 social, and this track often only has one winner.

The industry is currently in a downturn, and innovation and real-world use cases have become breakthrough points. Entrepreneurial projects tend to have the tendency of “deceiving to make money”, lacking real users and sustainable business models. After some projects go online, the active users plummet, and founders and investors frequently cash out and exit, seriously harming the interests of retail investors.

The encryption industry urgently needs to reflect on and re-examine innovative driving forces and real application scenarios. Only by keeping up with the times and closely following user needs can the industry regain vitality and usher in a new wave of prosperity. Entrepreneurs, investors, and exchanges need to work together to contribute to the healthy development of the industry.

6. Hollywood will shoot a movie based on SBF

Apple Studios and A24 are jointly developing a feature film about SBF, adapted from ‘The Big Short’ author Michael Lewis’s new book ‘The Premonition: A Pandemic Story’.

The book was published in October 2023, and on the same day, SBF’s criminal trial commenced in New York. Some critics argue that Lewis downplays the impact of SBF’s actions on millions of investors in the book, and some parts also focus on SBF’s effective altruism and how it could lead to the misuse of client funds.

Director and actress Lena Dunham will write the script for the film, which may currently be in the early stages of development.

The release of this film will once again bring the SBF incident to the forefront of public opinion, triggering extensive follow and discussion both inside and outside the industry. On the one hand, it will reveal the operational details of FTX and SBF’s personal thinking; on the other hand, it will also reflect on the regulatory shortcomings and ethical issues in the cryptocurrency industry, providing reference for the industry’s future development.

7. Chinese people still need to strive to break through in the BTC ecosystem

In the entire Crypto Assets market, Chinese people barely have a place in the BTC ecosystem, and they are basically lagging behind in other tracks. An encryption practitioner shared some data: The total market capitalization of BTC ecosystem projects has reached nearly 1 billion USD, which was less than 100 million USD a year ago, indicating a rapid rise.

But unfortunately, the overall Cryptocurrency market is relatively low, and the BTC ecosystem, apart from creating some local wealth effects, cannot support the entire market. At the same time, the Ton ecosystem is full of activities, with enthusiastic responses.

Analysts believe that, although the BTC ecosystem is developing rapidly, its influence in the Asian region is still limited. Compared with other popular ecosystems, the BTC ecosystem lacks leaders and outstanding projects, making it difficult to ignite market enthusiasm. In the future, Chinese practitioners need to cultivate more excellent projects and application scenarios in the BTC ecosystem in order to gain wider recognition and follow.

8. Breakpoint2024 Highlights Review

The Breakpoint2024 conference brought an excellent experience to the participants with a compact agenda and innovative interactive forms. The conference added a debate session to replace the traditional monotonous sharing; most of the speakers had only 5 minutes to focus on; and the alternative award session also filled the atmosphere on the spot.

The Solana exhibition area is more like a supermarket, with dozens of projects launching new products. The conference is divided into two stages, and attendees shuttle back and forth, afraid of missing any important moments. The conference lasted from 10:30 am to 6 pm on the first day, and almost every session was full.

Breakpoint2024 Conference provides participants with a creative and dynamic experience, fully demonstrating the innovative vitality of the Solana ecosystem. The innovative conference format helps improve efficiency and engagement, and each link closely follows the hot topics, presenting the latest developments in the Solana ecosystem. This innovative conference format is worth learning from and promoting in the industry.

9. Solana Ecosystem Multiple Projects Release New Products

At the Breakpoint2024 conference, several dozen Solana ecosystem projects, including Serum, PYTH, Wormhole, Birdeye, etc., all released their new products, which were exciting throughout the entire process.

The meeting is divided into two stages, and participants shuttle back and forth frequently, afraid of missing any important parts. The first day of the conference lasted from 10:30 in the morning until 6 o’clock in the afternoon, and almost every session was full.

This conference fully demonstrates the innovative vitality of the Solana ecosystem. Many projects have released new products, reflecting the strong development momentum of the Solana ecosystem. The innovative conference format helps improve efficiency and participation, and each link is closely related to hot topics, presenting the latest progress of the Solana ecosystem. This innovative conference format is worth learning from and promoting in the industry.

5. Economic Trends

1. US October inflation data exceeds expectations, intensifying market concerns about the Fed’s rate hike path

Economic Background: The US economy experienced sustained high inflation pressure in 2022. According to the latest data, the overall inflation rate in the US in October rose 6.9% year-on-year, higher than the expected 6.5%, and also higher than September’s 6.6%. The core inflation rate (excluding food and energy) rose 6.6% year-on-year, higher than the expected 6.5%. Inflation has been hovering at a 40-year high, bringing heavy pressure to the US economy.

Important Events: The October inflation data released by the US Bureau of Labor Statistics exceeded market expectations, triggering concerns in the market about further significant interest rate hikes by the Federal Reserve. Previously, the Federal Reserve has raised interest rates six times in a row, bringing the target range for the federal funds interest rate to 3.75%-4%. The unexpected rise in inflation data may force the Federal Reserve to raise interest rates by another 50 basis points in December.

Market Reaction: After the inflation data was released, the three major US stock indexes fell across the board, and investors are concerned that more aggressive rate hikes will increase the risk of economic recession. The US dollar index rose sharply, reflecting the market’s expectation of further rate hikes by the Federal Reserve. Bond yields surged, with the yield on the 10-year US Treasury bond breaking through 4%. The cryptocurrency market was also impacted, with BTC falling more than 5% at one point.

Expert opinion: Goldman Sachs Chief Economist Jan Hatzius said: “The inflation data is indeed disappointing, but it is not a huge surprise either. We expect the Federal Reserve to raise interest rates by 50 basis points in December and to increase the Interest Rate to a range of 5%-5.25% in early 2023.”

HSBC’s senior economist Kevin Logan pointed out: “Inflation data indicate that the Fed still has a long way to go to achieve the 2% inflation target. We expect the Fed to raise the Interest Rate to a range of 5%-5.25% in March next year.”

2. China’s October inflation data came in lower than expected, adding pressure to the economic slowdown

Economic Background: In 2022, the Chinese economy faces multiple pressures such as the repeated outbreak of the epidemic and the sluggish real estate market. The economic rise lacks momentum. The latest data shows that China’s overall inflation rate in October rose by 2.1% year-on-year, lower than the expected 2.4% and lower than September’s 2.8%. The core inflation rate rose by 0.6% year-on-year, unchanged from the previous month. The economic slowdown has eased inflationary pressure, but it also reflects weak domestic demand.

Important event: The October inflation data released by the National Bureau of Statistics of China was lower than expected, highlighting the pressure of economic slowdown. Against this backdrop, the Chinese government is increasing fiscal expenditure and moderately expanding the monetary policy toolbox to boost the economy. However, the continued impact of epidemic prevention and control measures may continue to hamper the pace of economic recovery.

Market Reaction: After the release of inflation data, the Chinese yuan Exchange Rate against the US dollar has slightly declined. The A-share market has slightly dropped, and investors’ concerns about the economic outlook have intensified. Bond yields have declined, reflecting the market’s increasing expectation of loose monetary policy. Commodity prices have generally fallen, reflecting weak demand expectations.

Expert opinion: “Chen Yunliang, Chief Economist of CITIC Securities, said:” The lower-than-expected inflation data in October is mainly due to insufficient demand. We expect that in order to cope with the pressure of economic slowdown, the Chinese government will further increase fiscal expenditure in the first half of next year and moderately expand the monetary policy toolbox."

"Hong Tao, Chief Economist of Citic Securities, pointed out: “Inflation data reflects weak domestic demand, which will increase the pressure on the government to implement proactive fiscal policies and a stable monetary policy next year. We expect the first half of next year to be the period of the greatest policy intensity.”

Six. Regulation&Policy

1. Federal Reserve Governor Wall: Stable Coin must be regulated to address bank run risk

Federal Reserve Governor Christopher Waller said in a speech that Stable Coin is essentially a synthetic dollar, which may bring benefits to the financial system. However, Stable Coin also faces the risk of bank run, so it must be regulated.

As a member of the Federal Reserve Board, Walle is responsible for supervising Financial Institutions. He pointed out that the issuance and operation of Stablecoin are similar to traditional banking business, therefore requiring a similar regulatory framework. The issuance of Stablecoin needs to maintain sufficient reserves to ensure that Stablecoin can be exchanged for legal tender coin at any time. In addition, clear redemption and Risk Management policies need to be formulated to prevent bank run situations.

Wolle emphasized that Stable Coin must be regulated to address bank run risks. Once a bank run occurs, the Stable Coin issuance party may be unable to meet redemption demands, thereby triggering systemic risks. He called for the establishment of a comprehensive regulatory framework to clarify the responsibilities and obligations of Stable Coin issuance parties and protect the rights and interests of investors.

Market players welcome Waller’s speech. The rapid development of Stablecoins has always been a pain point in the industry due to lagging regulation. Investors and businesses are looking forward to clear regulation to promote the healthy development of Stablecoins. However, some people are concerned that excessive regulation will stifle innovation. Overall, the market hopes that regulation can strike a balance between protecting investors and maintaining financial stability.

Cryptocurrency analyst Ross Stevenson said:“Stable coins are a key component of the cryptocurrency ecosystem, providing users with a stable store of value and medium of exchange. However, stable coins also have potential risks and require appropriate regulation. The goal of regulation should be to promote innovation while protecting investor rights and maintaining financial stability.”