Web3 AI Daily Review (2024/9/16)

2024-09-29 10:32:37

Collection

The U.S. Securities and Exchange Commission (SEC) seems to be easing its stance on the proposed crypto accounting policy SAB-121, allowing banks to adopt a "bankruptcy isolation" approach to custody customer assets, thereby circumventing some regulations. According to an analysis by the head of research at Galaxy, SEC Chief Accountant Paul Munter has proposed some exemption conditions that allow bank holding companies and introducing brokers to be exempt from the custody requirements in SAB-121.

1. Attention Value - Market Highlights

1. Market Trends

(1) Macroeconomic Environment:

l SEC relaxes SAB-121 regulations, allowing banks to use "bankruptcy isolation" to custody crypto assets

The U.S. Securities and Exchange Commission (SEC) appears to be easing its stance on the crypto accounting policy SAB-121, permitting banks to use "bankruptcy isolation" to custody client assets, thereby circumventing some regulations. According to an analysis by Galaxy's research director, SEC Chief Accountant Paul Munter has proposed some exemption conditions that allow bank holding companies and introducing brokers to be exempt from the custody requirements in SAB-121. If banks obtain written permission from state regulators and explicitly state standards in contracts while conducting regular risk assessments, they can avoid the reporting requirements of SAB-121. Additionally, introducing brokers must meet three conditions to qualify for the exemption, including not holding clients' private keys, not acting as third-party agents in transactions, and obtaining legal opinions to prove compliance with digital asset exemption conditions.

(2) Web3 Sector:

l Russia plans to regulate cross-border crypto payments by the end of November, testing an experimental legal framework

Anatoly Aksakov, chairman of the Financial Market Committee of the State Duma of Russia, stated that the Central Bank of Russia and the Ministry of Finance are drafting regulations for cross-border cryptocurrency payments, aiming to complete them by the end of November. The government plans to initially test the cryptocurrency payment mechanism under an Experimental Legal Regime (EPR), limiting participants to credit institutions and banks to mitigate risks and protect the market from fraud.

Aksakov revealed that companies are already using cryptocurrencies for import and export payments, with transaction volumes estimated in the billions of dollars. He emphasized that the initial phase will limit the number of financial institutions participating in these transactions to better understand the market and develop effective regulatory measures.

2. Hot Events

Macroeconomic Environment:

l OpenAI's o1 model achieves breakthroughs in IQ tests and programming competitions

OpenAI's o1 model scored an IQ of 120 in the latest Mensa IQ test, answering 25 out of 35 questions correctly, far surpassing other AI models. Kyle Kabasares, a PhD in physics from the University of California, Irvine, found that o1 completed the code for his doctoral thesis, which took him a year to write, in just one hour, although it used synthetic data, this speed is still impressive.

In the Codeforces programming competition, the o1-mini model helped contestant AryanDLuffy rank in the top 0.17% among over 160,000 participants, demonstrating its exceptional coding capabilities. Several cutting-edge papers have explored the workings of o1, emphasizing improvements in reasoning performance through training rather than prompt engineering, proposing key ideas such as computation during testing, self-criticism mechanisms, and process supervision.

Web3 Sector:

l DeepLink Protocol completes public sale, raising over $10 million to promote decentralized cloud gaming development

DeepLink Protocol successfully completed five phases of public sales, raising over $10 million. The project combines AI and blockchain technology, focusing on providing ultra-low latency cloud gaming rendering technology, supporting various applications such as cloud esports, AAA titles, and blockchain-integrated games. This financing attracted participants from Japan, Europe, and Spanish-speaking markets, with DeepLink's software users exceeding 1.7 million across over 110 countries and regions. To address the growing network traffic and computing demands, DeepLink plans to launch a GPU mining galaxy competition and GPU subsidy activities valued at over $10 million to further enhance its decentralized network infrastructure and accelerate project development.

3. Hot Narratives

Tranchess is an innovative decentralized finance (DeFi) protocol designed to provide investors with diversified yield solutions. As of September 2024, Tranchess has reached a total locked value (TVL) of $187 million on the BNB Chain, growing nearly 500% within the year. It is inspired by the concept of "Tranches" in traditional finance, allowing users to choose investment strategies that suit their risk preferences. Tranchess meets the diverse risk-return needs of investors by splitting the main fund QUEEN into two derivative tokens, BISHOP and ROOK.

The core operational logic of Tranchess is a structured fund architecture, where users can hold QUEEN for full exposure to the underlying assets while earning additional yield through staking. BISHOP offers stable fixed returns, suitable for risk-averse investors, while ROOK is a high-risk, high-reward leveraged token, ideal for investors seeking higher returns. Additionally, Tranchess has introduced the Turbo&Stable model, providing users with more flexible investment options through further segmentation and enhancement of product features.

Tranchess's ability to remain undefeated in the competitive DeFi space is primarily due to its professional team and innovative mechanisms. The team consists of several professionals with extensive backgrounds in blockchain and finance, including members from investment banks, asset management firms, and hedge funds, all possessing deep traditional finance experience. For instance, Tranchess co-founder Danny Chong graduated from Nanyang Technological University and has over ten years of experience in banking, having worked in trading, sales, and management across the Asia-Pacific region. Furthermore, the technical team members come from tech giants like Google, Meta, and Microsoft.

Looking ahead, Tranchess plans to continue expanding its product line and collaborate with multiple projects to launch new yield products to meet the evolving market demands. As the DeFi ecosystem develops, Tranchess has the potential to become a significant player in the asset management field, providing users with more innovative yield strategies.

4. Potential Catalysts

Bitcoin recently retested the 50-week moving average, with renowned analyst Titan stating that this key support level could guide Bitcoin to rebound above $90,000. Historical data shows that when Bitcoin's price retests this moving average, it typically rebounds by at least 40%, with an average rebound rate of 71%. If this rebound reaches 71%, Bitcoin could rise to $92,000.

Although September is usually a poor-performing month for Bitcoin, with an average return of -4.69%, the historical performance in October and November has been relatively optimistic, at 22.9% and 46.8%, respectively. After the 2020 halving, Bitcoin's gains in October and November exceeded 27% and 42%, continuing to rise until March 2021.

Cryptocurrency trader Mags pointed out that the current adjustment may be the last buying opportunity before the next round of increases, especially after the halving. Anonymous analyst Checkmate also noted that Bitcoin's current position is similar to the previous two bull market cycles, indicating that the market is undergoing a recovery phase.

2. Attention Value - Hot Projects

1. Social Media Highlights

Ethereum is a decentralized, open-source public blockchain platform with smart contract functionality. With the continuous development of Ethereum 2.0 and Layer 2, it has become one of the most widely used blockchains today. In July of this year, the Ethereum spot ETF was officially approved for trading. Although recent declines in $ETH due to reduced income and whale exits have been significant, the market remains largely optimistic due to its low inflation rate and strong development capabilities.

Key Projects:

· WBTC

Wrapped Bitcoin ($WBTC) is a tokenized version of Bitcoin, designed to bring Bitcoin's liquidity into the Ethereum ecosystem. Each $WBTC is backed by one Bitcoin at a 1:1 ratio, meaning the value of each $WBTC is equal to one Bitcoin. The primary purpose of $WBTC is to enable Bitcoin holders to participate in decentralized finance applications, which are typically built on the Ethereum blockchain. Since the launch of $WBTC, the project has faced significant controversy due to concerns about BitGo's own risks and market makers.

Recently, BitGo announced that its WBTC business will transition to the world's first cross-jurisdictional and cross-institutional custody through a unique partnership and joint venture with BiT Global.

2. Smart Money Accumulation

· Smart Money Holdings

Source: ChainEDGE, Dot Labs

Project Overview:

1. PEPE (@pepecoineth /X)

$PEPE is an Ethereum-based token launched in April 2023, aiming to leverage the influence of the popular internet meme "Pepe the Frog." As a "meme coin," the design philosophy of Pepe Coin is to attract the attention of investors and traders, especially during "meme coin season."

2. $michi (@michionsolana /X)

$michi is a cryptocurrency based on the Solana blockchain, designed to combine meme culture with a community-driven economic model. The design inspiration for $michi comes from a cute cat image, aiming to attract a broad user base, especially enthusiasts of meme culture.

· Smart Money Inflows

Source: ChainEDGE, Dot Labs

Project Overview:

1. PYR (@VulcanForged /X)

Vulcan Forged is a comprehensive Web3 ecosystem focused on blockchain gaming and non-fungible token markets. The project, developed by Vulcan Studios, includes several gaming projects, such as the popular VulcanVerse and Berserk. Vulcan Forged aims to provide users with a diverse gaming experience while supporting developers in creating and launching blockchain-based games.

2. BOBO (@BoboverseOnSol /X)

$BOBO is an ERC-20 token based on Ethereum, originating from the "Bobo the Bear" meme character associated with bear markets. This character first appeared in 2018 and gained widespread attention on the 4chan /biz/ forum, with over 40,000 mentions. The launch of $BOBO aims to leverage the popularity of this meme to attract participation from the cryptocurrency community.