8.15 AI Daily The crypto market welcomes new opportunities and challenges, with Ethereum leading the alts season.

1. Headlines

1. Ethereum network activity hits a new high, raising expectations for the arrival of the altcoin season.

The activity on the Ethereum network has been continuously increasing recently, with both on-chain transaction volume and the number of transactions reaching historical highs. Data shows that in the past week, the on-chain transaction volume of Ethereum exceeded 5 billion, and the number of active addresses reached 344 million. This significant increase in activity is mainly attributed to the large-scale entry of institutional investors and the notable growth of decentralized finance (DeFi) activities.

At the same time, the U.S. Securities and Exchange Commission ( SEC ) recently clarified that certain liquid staking products do not constitute securities, clearing the way for the launch of Ethereum spot ETFs. This favorable policy is expected to further accelerate the influx of institutional funds into the Ethereum ecosystem.

Analysts point out that the rise in activity on the Ethereum network and the ongoing improvement in the regulatory environment will strongly promote the prosperity of the altcoin market. Once Ethereum breaks its historical high, it is expected to trigger a concentrated explosion of altcoins, with popular sectors such as AI, RWA, and gaming becoming the main focus of investors. However, the altcoin market is still in its early stages, and patience is needed to await further clarification of the narrative.

2. The United States announces that it will include Bitcoin in its national strategic reserves.

U.S. Treasury Secretary Scott Bencet stated in a television program that the U.S. government will hold its Bitcoin worth $15 billion to $20 billion as a long-term national asset, pausing any sales. This decision aims to enhance market confidence and equate Bitcoin with traditional assets like gold in the national reserve portfolio.

Beisente emphasized that the U.S. government is exploring ways to acquire more Bitcoin in a "budget-neutral" manner to expand this reserve. Analysts believe that this move will further enhance the status of Bitcoin in the financial life of the United States.

Previously, the U.S. government has accumulated approximately $20 billion in Bitcoin by seizing the cryptocurrency assets of criminals. Besant stated that this portion of funds will no longer be sold on the market but will be held long-term as a national strategic reserve asset.

Industry insiders point out that the U.S. government's decision will provide strong support for the long-term value investment in Bitcoin. At the same time, it sends a clear signal of incorporating cryptocurrencies into the traditional financial system, which is expected to promote further improvement of regulatory policies.

3. The Hong Kong Securities and Futures Commission tightens the custody standards for virtual asset trading platforms.

The Hong Kong Securities and Futures Commission ( issued a circular to all licensed virtual asset trading platforms on August 15, clarifying its requirements for the robust custody of client virtual assets. This initiative aims to address security vulnerabilities and the increasing cyber threats, enhance investor protection, and establish a secure trading environment.

The circular lists multiple good practice examples and the minimum standards that operators of virtual asset trading platforms should meet, covering aspects such as the responsibilities of senior management, the infrastructure and operation of customer cold wallets, the use of third-party wallets, and real-time threat monitoring.

Industry insiders say that the CSRC's move reflects Hong Kong's increasing regulatory efforts to keep pace with the rapid development of the virtual asset industry. Tightening custody standards helps improve the operational transparency of trading platforms and enhances investor confidence in these platforms.

However, there are also views that overly strict regulation may increase the compliance costs for trading platforms, thereby affecting Hong Kong's competitiveness as an international virtual asset center. Therefore, while protecting investors' rights, how to balance the regulatory intensity and create a favorable environment for industry development will be a key consideration for Hong Kong's regulatory authorities.

) 4. Zypher Network launches AI mining program, opening a new era of behavior-driven mining.

Zypher Network has launched the Zypher AI Mining 1.0 program on the BNB Chain, ushering in a new era of behavior-driven mining. This program focuses on social mining, where users can earn rewards by verifying their identity, participating in partner community interactions, and completing social tasks.

Zypher Network, as the next-generation decentralized AI auditing protocol, is dedicated to ensuring the integrity and reliability of the prompt ###Prompt( through its innovative Proof-of-Prompt security network. With the help of an advanced AI security browser and a community-driven trust layer, users can easily verify the behavior of AI agents, submit security ratings, and enhance AI transparency through contributions, thereby earning generous rewards.

Analysts believe that the innovative mechanism of Zypher Network will help address the bottleneck of AI data scarcity, promoting the healthy development of the AI ecosystem. At the same time, mobilizing user participation through on-chain incentive mechanisms will further enhance the security and credibility of AI systems.

However, there are also viewpoints questioning the long-term sustainability of behavior-driven mining. How to continuously attract users to contribute while ensuring data quality will be a challenge that Zypher Network needs to face.

) 5. The prevalence of opinions on crypto scams prompts the industry to seek new development logic.

During the TOKEN2049 conference in Singapore, industry insiders generally felt a sense of "disillusionment" spreading. Entrepreneurs, investors, and various participants in the entire industry seem to be rapidly aligning with the public consensus on "crypto scams."

Insiders in the industry believe that the logic of industry development and exit mechanisms over the past five or even ten years has reached its end. The traditional "founder project - VC packaging - user growth hacking - listing on exchanges - exit and lay flat" model is losing its effectiveness.

Entrepreneurial projects generally face the dilemma of difficult financing. Exchanges and investors often focus on a few "high-configured" projects because they cannot distinguish between real users and value. Once listed on an exchange, there are many founders and investors cashing out and lying flat, which seriously harms the community and drains the industry's liquidity.

Analysts point out that the current predicament in the industry is not only due to the macro environment but also the phase death of the underlying logic. To regain vitality, it is essential to reshape new business models that truly create value for users. At the same time, it is necessary to patiently wait for the emergence and clarity of new narrative threads.

2. Industry News

1. The cryptocurrency market is in decline across the board, with a total market capitalization decrease of 3.9% in the last 24 hours.

The cryptocurrency market saw a decline of 3.49% in total market capitalization after a week of gains, dropping to $4.03 trillion. Bitcoin's price exceeded $124,000 but then experienced a pullback. Ethereum fell below $4,500 this morning, currently reported at $4,568. The altcoin season index is at 44/100, indicating Bitcoin's dominance, but altcoins are gaining momentum.

This pullback may be due to the US July PPI data coming in higher than expected, raising concerns in the market about the Federal Reserve's expectations for a significant rate cut in September. However, analysts point out that this could just be a healthy consolidation, a normal pullback after a significant upward movement. Some opinions suggest that the PPI data may just be an excuse for large investors to adjust their positions. Nevertheless, market risks include overvaluation and economic data affecting the Federal Reserve's outlook.

Overall, despite the short-term pullback, the long-term outlook for the cryptocurrency market remains positive. Investors need to closely monitor economic data and policy trends, cautiously assess risks, and seize potential investment opportunities.

2. Ethereum breaks the $4,000 barrier and soars.

Ethereum has risen 15% in the past three days, pushing its price above $4,000 - a milestone that is very important both psychologically and technically. Aside from fundamental factors, funds are flowing from Bitcoin to Ethereum, suggesting that altcoin season is about to start.

Analyst MadWhale stated that the institution is currently using the sideways market to shake out weak investors, in preparation for a significant surge of this altcoin. Once it breaks through the key resistance level, Ethereum may see a substantial increase.

However, some analysts also remind us that the altcoin season index is still far from the 75 level needed for confirmation, and a true all-out explosion may need to wait until Ethereum breaks its historical high. Therefore, investors need to be patient, focus on potential hot narratives, while being wary of the risks that local euphoria may bring.

3. Turkey's cryptocurrency exchange confirms security incident, ensuring the safety of user funds.

The Turkish cryptocurrency exchange Btc Turk has temporarily suspended cryptocurrency deposits and withdrawals due to suspicious activity in its hot wallet, ensuring that user assets remain safe in cold wallets. According to reports, the exchange was hacked, resulting in losses of up to $48 million, and an investigation is still ongoing.

This incident has once again raised concerns about the security of cryptocurrency exchanges. Analysts point out that exchanges should strengthen protective measures for user funds, increase transparency, and establish a sound risk control system to cope with the growing network threats. Investors should also carefully assess the security and compliance of exchanges when choosing one, in order to reduce the risk of fund theft.

The Hong Kong Securities and Futures Commission has issued new guidelines requiring virtual asset trading platforms to strengthen the custody measures for client assets, in order to enhance investor protection and establish a secure trading environment. This initiative is expected to promote an overall increase in industry safety standards.

4. Exclusive: The price of XRP reaching $1000 is more 'speculative' than 'realistic', but 'not impossible'.

XRP is a major cryptocurrency, currently priced at around $3, often discussed due to legal issues with the SEC and price predictions reaching $1,000, sparking debate among investors.

Some analysts believe that the prediction of XRP reaching $1000 is more speculative and lacks a realistic basis. However, there are also experts who believe that once the XRP spot ETF is approved, it will bring in a large amount of capital inflow, driving the price significantly higher and making the $1000 target achievable.

However, at the moment, there is still considerable uncertainty about whether the price of XRP can break through. Investors need to closely monitor the progress of the lawsuit with the SEC, as well as changes in regulatory policies, and assess risks cautiously. At the same time, the actual application scenarios of XRP and user growth will also be key factors determining its long-term value.

Overall, the cryptocurrency market is currently experiencing significant volatility, and investors need to remain rational, manage their risk exposure, and seize good opportunities.

3. Project News

1. Cognition AI raised approximately $500 million to advance its artificial intelligence code generation business.

Cognition AI is a startup focused on artificial intelligence code generation. The company recently completed around $500 million in funding, which will be used to expand its business in the field of AI-assisted programming.

Cognition AI's core product is an AI-based code generation tool that automatically generates code based on user requirements. This tool utilizes large language models and machine learning algorithms to understand user needs from natural language descriptions and generate corresponding code. This innovative technology is expected to significantly improve software development efficiency and lower the programming barrier.

This financing will help Cognition AI further improve its products, expand its R&D team, and accelerate the commercialization process of its products. The company plans to promote its AI code generation tool to more industries and application scenarios, providing efficient programming assistance to a wide range of developers.

Industry insiders believe that the artificial intelligence code generation technology of Cognition AI is disruptive and is expected to completely change the software development model. As artificial intelligence continues to penetrate the field of software engineering, similar AI-assisted programming tools will become the trend for future development.

2. Solana launches Rotor block propagation layer, aiming at Ethereum network congestion issues.

Solana is a high-performance blockchain network known for its high throughput and low transaction costs. The project has recently launched a block propagation layer called Rotor, aimed at further enhancing network performance and addressing the congestion issues faced by networks like Ethereum.

Rotor is a brand new block propagation mechanism that enables efficient block data distribution. Unlike traditional flooding-based broadcasting, Rotor uses a more intelligent propagation strategy that can dynamically adjust the propagation path based on the geographic location of nodes and network conditions, thereby minimizing network congestion.

In addition to Rotor, Solana has also launched the Alpenglow consensus upgrade, reducing the block finality time to 150 milliseconds. This upgrade is expected to further enhance the network's real-time performance and availability, laying the foundation for building high-frequency trading applications.

The Solana network has always been a strong competitor to Ethereum. With outstanding performance, Solana has attracted a large number of applications in DeFi, NFT, and GameFi. Industry insiders believe that the launch of Rotor and Alpenglow will further widen the gap between Solana and Ethereum, and is expected to attract more users and developers to join the Solana camp.

3. Chainlink price breaks through key resistance and is expected to continue upward.

Chainlink is a well-known decentralized oracle network in the blockchain field, and its native token LINK has recently performed impressively in terms of price. Data shows that LINK has successfully broken through a major Gann angle resistance level, which leaves room for further upward movement in the future.

Analysts point out that LINK has broken through a key resistance level that has long restricted its upward movement, marking the continuation of the current upward trend. The next resistance level is around $26.5, while $38.5 is the target for further upward movement. As long as LINK can stay above $19.5, the bullish pattern for the next few months will remain intact.

Chainlink, as a leading blockchain oracle solution, plays an important role in the entire cryptocurrency ecosystem. Its reliable price feed service provides critical support for numerous DeFi applications. In addition, Chainlink is continuously expanding its range of services to cover more data and computing needs.

Market participants believe that Chainlink's technological strength and ecological position will continue to support the price increase of LINK. With the ongoing recovery of the cryptocurrency market, LINK is expected to maintain its current upward momentum, bringing substantial returns to investors.

4. The number of Sui ecosystem projects is increasing, and the Move ecosystem continues to develop.

Sui is an emerging public chain based on the Move language, and the number of its ecosystem projects has recently increased, reflecting the ongoing development of the Move ecosystem.

Sui was founded by former Meta### Facebook( employees and uses Move as its smart contract language. The Move language is concise and efficient, and is considered an important component of the next generation of blockchain infrastructure.

The latest data shows that there are already well-known projects such as Cetus, Navi, and Scallop in the Sui ecosystem, as well as some emerging meme projects. Although the number of projects is limited, it has initially demonstrated the vitality of the Sui ecosystem.

Alongside Sui, there are also two public chains, Aptos and Movement. Aptos has launched its mainnet this year, and the development direction of its foundation has attracted community attention. Movement, on the other hand, is the only public chain project in the Move ecosystem that has not yet issued tokens, and is highly anticipated.

Industry insiders indicate that the Move ecosystem is gradually maturing, and the development of projects such as Sui, Aptos, and Movement will further drive this process. The technical advantages of the Move language are expected to attract more developers and projects, bringing new vitality to the Move ecosystem.

) 5. Wellgistics Health has launched a payment system based on XRP to improve efficiency in the pharmaceutical industry.

Wellgistics Health is a healthcare technology company that has recently launched a payment system based on XRP, aimed at improving operational efficiency in the pharmaceutical industry.

The payment system leverages the fast settlement and low-cost advantages of XRP to provide instant settlement services for transactions between pharmacies. Traditional pharmaceutical transactions often take several days to complete funds settlement, resulting in inefficiencies and high costs. In contrast, the XRP-based payment system can complete transaction confirmations in just a few seconds, significantly reducing the settlement cycle.

In addition to improving efficiency, Wellgistics Health's XRP payment system also helps ensure compliance in the pharmaceutical industry. Due to the traceability of XRP transactions, relevant regulatory authorities can better supervise the circulation of pharmaceuticals and prevent illegal activities such as drug smuggling.

Wellgistics Health stated that the XRP payment system is currently in a trial operation phase and will be promoted in more scenarios in the future. This system is expected to bring revolutionary changes to the pharmaceutical industry, enhancing the transparency and operational efficiency of the entire supply chain.

6. FBI Warning: Cryptocurrency scammers disguise as law firms to conduct secondary fraud.

The Federal Bureau of Investigation ### FBI ( recently issued a warning, reminding cryptocurrency users to be cautious of a new type of scam. Some criminals disguise themselves as law firms, under the pretext of "helping victims recover funds," to carry out secondary scams against victims of cryptocurrency fraud.

According to the FBI, these criminals impersonate lawyers or government employees to actively contact victims of cryptocurrency scams, promising to help them recover their lost funds. To gain trust, they also forge seemingly official documents and evidence.

Once the victim is fooled, the scammer will ask them to pay a so-called "service fee" or "handling fee", and it must be paid in the form of cryptocurrency or gift cards. Of course, once the victim makes the payment, the scammer will vanish into thin air, making it impossible to recover the funds.

The FBI reminds that no legitimate law firm or government agency will request fees in this manner. If you receive similar contact, be sure to stay vigilant and do not pay easily. At the same time, victims should directly contact law enforcement agencies rather than trust private intermediary organizations.

In addition, the FBI has urged cryptocurrency companies and exchanges to strengthen anti-money laundering measures to jointly combat such fraudulent activities.

4. Economic Dynamics

) 1. The U.S. July PPI data exceeded expectations, inflationary pressures continue.

Economic Background: The U.S. economy is facing persistent inflationary pressures. Despite a series of measures taken by the federal government to curb inflation, the latest data shows that the inflation rate remains high. According to data from the Bureau of Labor Statistics, the Producer Price Index (PPI) rose by 5.7% year-on-year in July, higher than the expected 5.4%. This indicates that the production costs faced by businesses continue to rise, which may further drive up consumer prices. Additionally, the core PPI increased by 4.7% year-on-year, also above expectations.

Important Event: The U.S. government has recently intensified its efforts to combat inflation. The Federal Reserve raised interest rates by another 75 basis points in June, bringing the target range for the federal funds rate to 1.5%-1.75%. At the same time, the Trump administration has implemented a series of measures, including easing energy restrictions and cutting government spending, in an effort to alleviate inflationary pressures. However, the latest PPI data indicates that these measures have not yet fully taken effect.

Market Reaction: Investors are concerned about persistently high inflation. After the data was released, all three major U.S. stock indices fell, with the Dow Jones dropping more than 200 points. Analysts believe that high inflation may further depress corporate profits and exacerbate the risk of economic recession. Meanwhile, the dollar index rose slightly, reflecting investors' expectations of further interest rate hikes by the Federal Reserve.

Expert Opinion: Goldman Sachs Chief Economist Jan Hatzius stated that the latest PPI data highlights the persistence of inflationary pressures. He expects the Federal Reserve to raise interest rates by another 75 basis points in September, and potentially increase rates to around 4% by the end of the year. However, he also pointed out that with the continued tightening of monetary policy, the inflation rate is expected to start slowing down in the second half of next year.

V. Regulation & Policy

1. The Hong Kong Securities and Futures Commission tightens the custody standards for cryptocurrency exchanges.

The Securities and Futures Commission (SFC) of Hong Kong, as the regulatory body for the Hong Kong financial market, has recently issued new guidelines requiring virtual asset trading platforms to strengthen the custody measures for client assets. This move aims to address the recent frequent security vulnerabilities and cyberattack incidents in the global cryptocurrency industry, enhance investor protection, and establish a secure trading environment.

The new guidelines enumerate several good practice examples and the minimum standards that operators of virtual asset trading platforms should meet, covering aspects such as the responsibilities of senior management, the infrastructure and operation of customer cold wallets, the application of third-party wallets, and real-time threat monitoring. In the future, these standards will also become core regulatory requirements for virtual asset custodians and will help promote the establishment of an effective virtual asset custody framework in the industry.

This move reflects the Hong Kong Securities and Futures Commission's prudent approach to cryptocurrency regulation. As the cryptocurrency market continues to develop and investor participation increases, a comprehensive regulatory framework is crucial for maintaining market order and protecting investors' rights. Industry insiders generally believe that the SFC's tightening of custody standards will help improve the operational transparency and security of cryptocurrency exchanges in Hong Kong, laying the groundwork for Hong Kong to build an international virtual asset center.

2. The U.S. Treasury strengthens sanctions on cryptocurrency exchanges.

The U.S. Department of the Treasury recently announced sanctions against cryptocurrency exchanges registered in Russia and their new platform Grinex. This move is part of the U.S. government's efforts to combat cryptocurrency-related criminal activities, accusing the exchange of laundering money for ransomware gangs.

According to the Ministry of Finance, despite previously being sanctioned, the exchange continues to transfer funds. This enhanced sanction aims to cut off its funding sources and combat its illegal activities. The Ministry of Finance stated that it will work closely with international partners to jointly combat illegal financial activities using cryptocurrency.

Insiders point out that this move reflects the U.S. government's determination to combat cryptocurrency crimes. As cryptocurrencies are increasingly used for illegal activities such as money laundering and extortion, it has become urgent to strengthen regulation and enforcement. However, due to the decentralization and anonymity of cryptocurrency transactions, combating criminal activities faces many challenges. Therefore, there is a need for governments around the world to enhance international cooperation to jointly maintain the healthy development of the cryptocurrency market.

3. The Bank for International Settlements proposes to set compliance ratings for cryptocurrencies

Researchers at the Bank for International Settlements (BIS) have recently proposed a new anti-money laundering (AML) solution aimed at preventing illicit funds from flowing in by establishing compliance scores for cryptocurrencies. The proposal advocates that "blockchain users should be assigned security scores, and withdrawals of users with low scores will be blocked."

Specifically, the proposal suggests scoring holders of cryptocurrencies based on their transfer history, with countries able to set a threshold score to determine whether users can exchange cryptocurrencies for fiat currency. Researchers believe that this practice can effectively prevent illegal funds from circulating through cryptocurrency channels.

The proposal has sparked widespread discussion in the industry. Supporters believe that this plan helps to strengthen the regulation of cryptocurrency transactions and curb their use in illegal activities such as money laundering. However, some are concerned that excessive regulation may undermine the decentralization and anonymity of cryptocurrencies, contradicting their original intention.

Overall, as cryptocurrencies are increasingly accepted and used, finding a balance between regulation and development is a common challenge faced by governments and regulatory agencies around the world. We look forward to clearer and more feasible regulatory measures being introduced in the future to promote the healthy development of the cryptocurrency market.