The crypto market is experiencing a widespread rise, with AI and payment tracks accelerating. The Movement event has triggered reflection within the industry.

This week, the crypto market experienced a broad rise, with significant increases in the Ethereum ecosystem and the AI sector, both exceeding 20%. At the same time, industry turmoil has resurfaced, as Movement faced a coin price collapse due to disputes over market-making protocols, leading to reflections on industry ethics and regulation. The AI and payment finance sectors are accelerating their development, with a certain blockchain platform promoting the MCP standard and multiple exchanges laying out payment ecosystems. These trends indicate that the crypto market is facing a new round of reshuffling and opportunities.

The Movement event is the focus of this week. The project has raised over $40 million, but the coin price plummeted due to controversy over the market-making protocol. The core issue lies in the market-making agreement signed between Rentech and the Movement Foundation, which is accused of incentivizing price manipulation. The contract terms include an incentive mechanism, whereby if the token valuation exceeds $5 billion, the market maker can liquidate for profit, which has been criticized as encouraging artificial price inflation followed by sell-offs. The event has exposed the lack of regulation in market-making mechanisms and the lack of transparency in the legal framework.

The AI field continues to maintain its popularity. A certain blockchain platform launched MCP and a series of AI support programs, providing developers with a standardized and secure AI integration framework. In 2024, AI company financing will exceed 100 billion USD, a year-on-year increase of 80%. The United States dominates AI financing, accounting for about 97 billion USD. Notable unlaunched AI projects include 0G and Sentient.

The payment finance sector has also gained attention. A certain exchange launched a stablecoin payment service, while another platform collaborated with Bhutan to launch a national-level crypto tourism payment system. Projects like Huma Finance have also received a lot of hype.

In terms of policy, New Hampshire has passed a strategic Bitcoin reserve bill, authorizing state treasurers to purchase Bitcoin. The U.S. Senate has rejected the Stablecoin Innovation and Security Act, but it is expected to be submitted for a vote again. These policy trends will have a profound impact on the crypto market.

Overall, this week the crypto market continues to face challenges from regulation and industry self-discipline amidst a general rise, with AI and payment finance becoming new development focuses. Future market development will increasingly rely on a balance of compliance and innovation.