11.1 AI Daily ChatGPT search upgrade leads the new era of AI, encryption market welcomes opportunities and challenges

1. Headlines

1. OpenAI launches ChatGPT search feature, accelerating the arrival of the AI era

OpenAI announced a major upgrade to its AI language model ChatGPT, adding a search function that allows users to search the web in real time and generate responses. This upgrade makes ChatGPT more similar to traditional search engines, directly competing with Google.

Starting from November 1st, ChatGPT paid subscription users can obtain the latest information through search. ChatGPT will summarize and generate responses based on the search results, rather than relying solely on training data. The search function is supported by Microsoft's Bing search engine and also utilizes a protocol for content collaboration with OpenAI and multiple publishers. This feature will be available to all free users in the coming months.

This upgrade marks the accelerating penetration of artificial intelligence technology into daily life. Analysts believe that the addition of search functionality will greatly enhance the practicality of ChatGPT and is expected to promote the widespread application of artificial intelligence in education, customer service, and other fields. However, there are also potential risks such as privacy and copyright that need to be taken seriously. Overall, the footsteps of the artificial intelligence era are getting closer and closer, and technological development will profoundly impact various sectors of society.

2. BTCMining company CleanSpark expands Mining Farm scale to 400MW

BTCMining company CleanSpark plans to build a Mining Farm capacity of over 400 megawatts in the next few years, providing additional operational flexibility and power supply diversity after the acquisition of US infrastructure company GRIID.

CleanSpark CEO said that the $1.55 billion GRIID acquisition has brought the company a 50-megawatt Mining capacity. In the coming years, CleanSpark will continue to expand the Mining Farm scale, with the ultimate goal of building a Mining Farm with over 400 megawatts.

Industry analysts pointed out that this move reflects CleanSpark's optimistic outlook for Bitcoin in the long term. Expanding production capacity during the Cryptocurrency winter will help the company gain a more favorable position in the next Bull Market. However, it also requires bearing higher upfront investment costs and operational risks.

Overall, the increased layout of large mining companies reflects the continued favor of institutional capital for the BTC ecosystem. As the digital gold, the long-term value of BTC is still recognized, and the industry's development is worth looking forward to.

3. ETH Foundation members establish the Argot Collective development team

A non-profit development group called Argot Collective, composed of members of the ETH Foundation, was recently established. The group will focus on maintaining software related to Ethereum.

Argot Collective, initiated by former Executive Director of the Ethereum Foundation, Aya Miyaguchi, and former researcher Vitalik Buterin, aims to provide independent research and development support for the Ethereum ecosystem. The group will adopt a democratic decision-making model to ensure that the direction of development aligns with the interests of the community.

Analysts believe that the establishment of Argot Collective is conducive to the long-term development of the Ethereum ecosystem. The independent research and development team can continue to inject innovative power into Ethereum, and to some extent, balance the influence of the Ethereum Foundation. At the same time, the democratic decision-making model also helps attract more developers to participate.

But there are also views questioning whether Argot Collective can truly be independent, and it remains to be seen. The risk of internal division within the ETH ecosystem is worth being vigilant, and the industry needs a more diversified development path.

4. South Korean Regulatory Agency Refers First Cryptocurrency Manipulation Case

According to the revised Virtual Asset User Protection Act in South Korea, the regulatory agency in South Korea recently transferred the first case of suspected manipulation of cryptocurrency prices to the prosecutor's office for investigation.

The suspect is suspected of artificially raising the price of Tokens obtained from overseas issuers by placing large and deceptive buy orders on domestic exchanges, in order to sell them for profit. Regulatory agencies have determined that this behavior violates relevant laws and have referred the case to the prosecutor's office through an emergency procedure.

Analysts say the case is a sign that South Korean regulators are stepping up supervision of the cryptocurrency market. Market manipulation not only harms the interests of investors, but also affects the long-term healthy development of the industry. Cracking down on such illegal activities will help maintain market order.

However, there is also a view that excessive regulation may stifle innovation, and there is a need to seek a balance between protecting investors and supporting innovation. Legislation on the regulation of Crypto Assets is still being explored globally, and all parties need to maintain an open and inclusive attitude.

5. Tether Releases Q3 Financial Report: Net Profit of $2.5 Billion

Leading stablecoin issuer Tether has released its financial report for the third quarter of 2024. The data shows that Tether achieved a net profit of 2.5 billion US dollars in the third quarter, bringing its total net profit for the first three quarters of this year to 7.7 billion US dollars.

Analysts point out that Tether's revenue mainly comes from the rise in USDT issuance and investment income from reserve assets. As the main settlement channel for cryptocurrency transactions, the demand for USDT remains strong in both bull and bear markets.

In the future, Tether plans to use revenue to support global innovation and inclusive development. However, there are also views questioning whether Tether's high profit rate will affect its motivation to maintain the peg of USDT to the US dollar. The development of Decentralization in Stable Coin still requires joint efforts from the industry.

2. Industry Data

1. ETH

The recent Ethereum transaction price is $2646.6300, -0.8000% within the day.

2. BTC

The recent transaction price of BTC is $72415.5000, with a +0.3000% change within the day.

3. DOGE

The recent transaction price of Dogecoin is 0.1721 US dollars, with a daily change of -0.3000%.

4. KAS

KAS recent trading price is $0.1132, up +2.2000% intraday.

5. GT

GT recent transaction price 8.7080 US dollars, intraday -1.2000%.

III. Industry News

1. Short-term pullback of BTC raises market concerns, but long-term prospects are still bullish.

The price of BTC briefly fell below $69,000 on November 1st, triggering concerns in the market. Analysts pointed out that the recent fluctuation in BTC price is mainly influenced by macro factors such as better-than-expected US non-farm payroll data for October and the expectation of interest rate hikes by the Federal Reserve. However, in the long term, institutional investors continue to increase their holdings of BTC, and coupled with the approaching BTC halving, the anticipation of a long-term supply shortage will continue to drive the price pump.

CryptoQuant data shows that BTC long-term holders have not shown signs of large-scale dumping, but instead are accumulating on dips. Renowned analyst Willy Woo states that the long-term supply of BTC holders is declining, which will drive BTC price to break through historical highs in the coming months. However, in the short term, BTC price may still consolidate near $70,000 Fluctuation.

2. ETH futures data is improving, ETH price rebound is expected

The latest data from the ETH futures market shows that the ETH funding rate is continuing to rise, and trader sentiment is turning optimistic. ShayanBTC, an analyst at CryptoQuant, pointed out that this indicates institutional investors are buying the dips in ETH contract positions, which is expected to drive the rebound in ETH price.

In addition, the daily net inflow of ETH Spot ETF reached a new high of $13.05 million on October 31, accounting for 2.29% of total assets, reflecting strong institutional investment demand. Analysts believe that as the most active ecosystem in the Cryptocurrency field, ETH's price rebound momentum is accumulating. However, ETH needs to break through the key resistance level of $1600 to confirm the mid-term rebound trend.

3. The rise of DOGE has paused, but the "Trump premium" that is highly followed still exists

The highly followed DOGE experienced a pullback on November 1st, with a drop of over 5% in 24 hours. Analysts pointed out that the recent rise of DOGE was mainly driven by Tesla CEO Musk's mention of the 'D.O.G.E' plan at a Trump campaign rally.

Despite the short-term pullback of DOGE, analysts believe that if Trump wins the election, DOGE still has the potential to skyrocket under the "Trump premium". Financial analysts expect that if the breakout pattern continues, DOGE may pump 500% to 1000% next year, with a final target price of $2. However, some analysts also warn that if DOGE falls below the key support level, it may continue to fluctuate within a range.

Overall, there is still uncertainty in the short-term trend of Dogecoin, and investors need to closely follow the impact of the election results on its price.

IV. Project News

1. CleanSpark plans to expand BTC mining capacity to 400MW

CleanSpark is a company focused on BTC Mining, which recently acquired an additional 50MW Mining capacity through GRIID acquisition. The CEO of the company stated that in the next few years, CleanSpark plans to expand its BTC Mining capacity to over 400MW in order to obtain more operational flexibility and diversified power supply.

This measure aims to enhance CleanSpark's competitiveness in the BTC Mining field. With the pump in BTC price and the continuous increase in Computing Power, expanding the Mining scale will help the company generate more revenue. At the same time, diversified power supply will also reduce operating costs and improve profitability.

Industry analysts believe that CleanSpark's expansion plan reflects the promising prospects of the Bitcoin Mining industry. With more institutional investors entering the scene, BTCMining is expected to become a capital-favored track. However, factors such as power supply and regulatory policies may also affect the development of Mining companies.

2. Sui ecological lending protocolSuilend launches liquidity collateral token sSUI

Suilend is a lending protocol in the Sui ecosystem. Recently, it launched the Liquiditystake token sSUI, which is built on the SpringSui standard. SpringSui is an Open Source standard for Liquiditystake tokens, which supports timely unstaking to provide liquidity and reduce drop-off risks.

The launch of SUI has brought more Liquidity to the Sui ecosystem, which helps attract more funds into the ecosystem. At the same time, the open source nature of the SpringSui standard also provides convenience for other teams to deploy Liquidity staking tokens, which is expected to promote the development of the entire Sui ecosystem.

Industry insiders believe that this move by Suilend reflects the importance of Liquidity demand in the Sui ecosystem. As the Sui ecosystem matures, the launch of more innovative products and services will further enhance its appeal. However, the Sui ecosystem is still in its early stages of development, and its long-term prospects need to be tested over time.

3. Paxos launches Singapore Compliance stablecoin USDG

Paxos is a stablecoin issuer that recently launched a Singaporean compliance stablecoin called USDG. This stablecoin is managed by DBS Bank and backed by a 1:1 reserve of US dollars, including deposits, short-term US government bonds, and other cash equivalents.

The launch of USDG helps meet the demand for Compliance stablecoins in the Singapore market, providing more options for local users. At the same time, the reserve managed by banks also enhances the trustworthiness of USDG, which is beneficial to its promotion in the Singapore market.

Analysts pointed out that the launch of USDG reflects the potential development of Stable Coin in regions such as Singapore. With clear regulatory policies, Compliance Stable Coins are expected to play a greater role in areas such as payments and Settlement. However, the development of Stable Coins also faces challenges such as regulatory uncertainty.

4. OpenOrigins completed $4.5 million seed round financing.

OpenOrigins is a blockchain content verification platform that has recently completed a $4.5 million seed round of financing, led by Galaxy Interactive. The company plans to use the new financing to expand its business team and to expand its business to the Indian and American markets.

OpenOrigins uses blockchain technology to verify the authenticity of digital content such as photos and videos to combat fake media. The relevant information will be recorded on the HyperBlock on-chain, and the company has reached a cooperation agreement with the British media production company ITN.

OpenOrigins' solutions help to improve the credibility of digital content, with wide application prospects in fields such as news media, insurance companies, and online dating platforms. Industry professionals believe that with the spread of false information, content verification platforms like OpenOrigins will be increasingly valued.

5. Economic Trends

1. The U.S. October non-farm payroll data was far below expectations, and inflation pressures continued.

The U.S. economy maintained a moderate rise in the third quarter of 2024, but the slowing job market may indicate that the economic rise is losing momentum. According to the latest data from the Labor Department, the non-farm employment population increased by only 61,000 in October, far below the expected 190,000, also the lowest growth rate since December 2020. The unemployment rate also rose slightly to 4.3%.

Despite the slowdown in the job market, wages are still rising, indicating that inflationary pressures are still persistent. The average hourly wage in October rose by 4.7% compared to the same period last year, higher than the 4.6% increase in the previous month. This may prompt the Federal Reserve to continue raising interest rates to curb inflation.

Federal Reserve Chairman Powell reiterated in his latest speech that interest rates will continue to rise until inflation slows significantly. He stated that despite the economic slowdown, the labor market remains tight and pressure on wages to pump continues to exist. This means that the Fed may once again significantly raise interest rates in December, pushing the Interest Rate above 5%.

Jan Hatzius, Chief Economist at Goldman Sachs, believes that the slowdown in the job market could be a precursor to an economic recession. He predicts that the US economy will experience a mild recession in early 2025. However, he also points out that if inflation continues to decline, the Federal Reserve may pause interest rate hikes in the first half of next year.

Overall, the October non-farm payrolls data was disappointing, reflecting a slowdown in the US economy. Inflation pressures persist, and the Fed will continue to raise interest rates to achieve the 2% inflation target. Investors need to closely follow the subsequent economic data and assess the economic outlook.

Six. Supervision & Policy

1. Italy plans to significantly increase the capital gains tax on Bitcoin to 42%

Italian Minister of Economy and Finance Giancarlo Giorgetti defended the government's proposal to significantly increase the capital gains tax on Cryptocurrency from 26% to 42%, stating that digital assets carry very high risks and should be subject to taxation.

The proposal aims to increase government revenue and also reflects the authorities' cautious attitude towards the cryptocurrency market. As a new asset class, the regulation of cryptocurrencies has always been controversial. Supporters argue that they are innovative financial tools, while critics are concerned about their speculative nature and the risk of money laundering.

However, taxing cryptocurrencies does not always bring the expected tax revenue to the treasury, for example, India leads to as much as 95% of the volume flowing to overseas platforms. Italian MP Giulio Centemero called on lawmakers to discuss the issue carefully and avoid excessive taxation. He said that high tax rates could hinder the development of the cryptocurrency industry in Italy and drive investors to other countries.

In addition, the EU is about to fully implement the world's first crypto market regulation law, and Cryptocurrency companies need to obtain EU authorization. This regulatory framework aims to establish uniform rules for crypto assets, enhance investor protection, and combat Money Laundering activities.

Industry insiders believe that reasonable tax rates and regulatory policies are crucial to attracting Crypto Assets enterprises. To encourage investors to participate in the Crypto Assets market, regulators also need to improve regulations and ensure investor safety.

2. Monetary Authority of Singapore approves Paxos to launch Compliance stablecoin USDG

Stable Coin issuer Paxos announced on social media the launch of the new Singapore Compliance Stable Coin Global Dollar (USDG), which is managed by DBS Bank for dollar reserves.

USDG adopts a 1:1 reserve support for the US dollar, with reserves including US dollar deposits, short-term US government bonds, and other cash equivalents. The Stable Coin obtained approval from the Monetary Authority of Singapore (MAS) in July this year, fully complying with the Stable Coin regulatory framework set by MAS in August 2023.

As one of the global financial centers, Singapore has been actively exploring regulatory approaches for digital assets. MAS's Stable Coin regulatory framework aims to manage the risks associated with stablecoins while leaving room for innovation in this field. The framework requires stablecoin issuers to hold sufficient reserve assets and comply with auditing and disclosure requirements.

Paxos said that USDG is currently running on the Ethereum blockchain, and will expand to other public chains according to regulatory developments in the future. The company launched the interest-bearing stablecoin Lift Dollar (USDL) regulated by the United Arab Emirates five months ago.

Industry insiders believe that regulated Stable Coins help attract institutional investors into the Cryptocurrency market. Compared to Algorithmic Stable Coins, USDG and other fully reserved Stable Coins are considered more reliable and transparent.

However, some Crypto Assets enthusiasts are concerned that excessive regulation may limit innovation. They believe that Cryptocurrency, with Decentralization, should break free from the constraints of TradFi.

3. Hong Kong Regtech Association calls for strengthened education for Cryptocurrency investors

Chairperson Zhou Fengyi of the Hong Kong Regtech Association stated that as Environmental, Social, and Governance (ESG) receive market attention, investors may favor products related to both ESG and digital assets. She believes that some ETFs involving multiple asset classes will also be the target for investors, helping to control risks.

However, Zhou Fengyi pointed out that investors lack sufficient understanding of the advantages of Crypto Assets, and their views may be somewhat negative. She called for more work in investor education in the industry to promote the development of the field.

As a new asset class, Crypto Assets have always been controversial in terms of risks and opportunities. Supporters believe that they are innovative financial tools that can provide diversified investment and high returns. However, critics are concerned about their speculative nature, price fluctuation, and lack of regulation.

The Hong Kong Securities and Futures Commission (SFC) recently issued a temporary licensing list for encryption asset trading platforms, aiming to provide regulatory authorities with more time to formulate rules. However, this list is not an official license, and platform applicants must wait for the SFC to accept their policies, procedures, and systems before they can be licensed.

Industry insiders believe that strengthening investor education is crucial for promoting the healthy development of the cryptocurrency market. Regulatory agencies need to work together with the industry to increase public awareness of the risks and opportunities of digital assets. At the same time, clear guidance should also be provided to investors to avoid misleading advertising.