6.20 AI Daily Report Global cryptocurrency ecosystem continues to develop Regulatory policy changes attract follow

1. Headlines

1. Israel launches "Operation Narnia" to assassinate Iranian nuclear scientists, triggering a new round of crisis in the Middle East.

The Israeli military launched a secret operation codenamed "Operation Narnia" late at night on June 19, assassinating 10 nuclear scientists in multiple cities across Iran. This is the largest assassination operation in Israel's history, aimed at destroying Iran's nuclear program.

The operational details show that Israeli special forces simultaneously launched raids across Iran, precisely targeting 10 nuclear scientists. Israel's decision to act against the scientists simultaneously was to ensure that the operation would not leak. For years, Israel has been closely monitoring the movements of Iranian nuclear scientists, and the 10 scientists killed this time were placed on the assassination list last November.

Reports cite a senior Israeli official as saying that Israeli intelligence believes that the killing of the nuclear scientist is the most important part of "Operation Narnia," because Iranian military leaders and facilities are easier to replace or repair, while the knowledge of the nuclear scientist takes much longer to regain.

This action will undoubtedly further intensify the tensions in the Middle East. Analysts point out that the standoff between Iran and Israel over nuclear issues has remained unresolved for many years, and this action will plunge the situation into a new round of crisis. Iran has vowed to carry out "relentless retaliation," and the peace process in the Middle East may face obstacles once again.

2. The U.S. Securities and Exchange Commission may approve the first XRP ETF listing.

According to multiple crypto media reports, the U.S. Securities and Exchange Commission ( SEC ) is expected to approve the first XRP exchange-traded fund ( ETF ) for listing soon. Analysts expect that the probability of the SEC approving the XRP ETF has reached 90%.

Once approved, the XRP ETF will provide institutional investors with a new channel to acquire XRP, which is expected to further drive up the price of XRP. Currently, XRP is at a critical technical position, showing potential for price compression and breakout. Analysts predict that if past price patterns repeat, XRP could rise to $14.

XRP is a cryptocurrency issued by Ripple, primarily used in the field of cross-border payments. In recent years, as Ripple continues to expand its partnerships, the price of XRP has also seen a significant increase. Additionally, XRP is about to undergo a major technical upgrade, and favorable factors such as the development of stablecoins have also injected new momentum into it.

However, there is still uncertainty as to whether the SEC will ultimately approve the listing of the XRP ETF. If approved, it would mark a significant shift in the SEC's regulatory policy towards digital assets, benefiting the long-term healthy development of the cryptocurrency market.

3. The Hong Kong Special Administrative Region Government is promoting the pilot of offshore RMB stablecoins, opening a new path for the internationalization of the RMB.

The Hong Kong Special Administrative Region government is actively promoting the offshore renminbi ( CNH ) stablecoin pilot, which is seen as a digital path for the internationalization of the renminbi. On May 30, Hong Kong's "Stablecoin Ordinance" officially came into effect, laying the legal foundation for the issuance of CNH stablecoins.

The Secretary for Financial Services and the Treasury of Hong Kong, Xu Zhengyu, stated that the use of stablecoins is aimed at returning to the essence of finance and effectively addressing pain points in economic activities. He revealed that the entire regulatory logic in Hong Kong is very clear, and the law allows for different fiat currencies to serve as the underlying benchmark for stablecoins, including the possibility of using the renminbi as a pegged object.

However, Xu Zhengyu also emphasized that if a CNH stablecoin is to be issued, it must take into account the entire country's exchange rate and monetary policy. This means that the issuance of the CNH stablecoin needs to gain the support and recognition of the central government.

Analysts point out that the reshaping effect of stablecoins in cross-border payments can no longer be ignored. As a modern monetary tool that combines the attributes of currency with the functions of international payments, stablecoins are not only an indispensable infrastructure in the digital economy era but may even become a tool for rule gaming. If Hong Kong takes the lead in piloting the CNH stablecoin, it will open a new digital path for the internationalization of the RMB and become a key support point for the reconstruction of the future cross-border payment system.

4. Apple plans to use generative AI to accelerate custom chip design

Apple Inc. is considering using artificial intelligence to accelerate the design of its custom chips for devices. Johny Srouji, Apple's senior vice president of hardware technologies, stated that a key lesson the company has learned is the need to use the most advanced tools to design chips.

"Electronic design automation companies are crucial in supporting the complexity of our chip designs, and generative AI technology has great potential to complete more design work in a shorter time, which can significantly enhance productivity," Srouji said.

According to reports, Apple has been using AI to some extent in its design for years, and the third-party electronic design automation companies it has relied on have also leveraged AI and machine learning technologies in chip design. However, Apple's recent statement about utilizing generative AI to accelerate chip design marks a further embrace of AI technology by the company.

Analysts point out that the application prospects of generative AI in complex tasks such as chip design are broad. Compared to manual design, AI can complete more work in a shorter time, improving production efficiency. In the future, generative AI is expected to play an important role in more high-tech fields.

5. The BBC threatens to sue AI startup Perplexity, accusing it of scraping content without permission.

The BBC has taken action for the first time against technology companies suspected of copyright infringement, threatening to file a lawsuit against the AI search engine startup Perplexity. The BBC claims to have evidence that Perplexity's "default AI model" used BBC content for training.

The BBC stated that unless Perplexity stops scraping all of BBC's content and proposes an "economic compensation plan" to remedy the intellectual property infringement, the BBC may seek a court injunction. Perplexity responded that the BBC's accusations are "manipulative and opportunistic" and that there is a "fundamental misunderstanding" of technology, the internet, and intellectual property law.

This is the first time the BBC has filed a legal lawsuit against an AI company for unauthorized content scraping, sparking widespread attention in the industry. AI companies have long used a large amount of publicly available content from the internet to train their models, but copyright issues have always been a gray area. This move by the BBC is seen as the beginning of AI copyright disputes.

Analysts point out that with the continuous development of AI technology, relevant laws and regulations need to keep up. New rules need to be established between AI companies and content providers to clarify the boundaries of AI training data usage. Otherwise, there may be more copyright dispute cases in the future, hindering the development of AI technology.

2. Industry News

( 1. Bitcoin continues to consolidate in a sideways trend, with a strong sense of market wait-and-see.

The price of Bitcoin has maintained a narrow fluctuation in the past 24 hours, reaching a high of $105,200 and a low of $104,300, currently reported at $104,650, with an intraday fluctuation of less than 1%. Analysts pointed out that Bitcoin may continue to oscillate around the $100,000 range in the short term.

At a macro level, the uncertainty of the geopolitical situation and expectations for interest rate hikes by the Federal Reserve have made market sentiment cautious. Investors are digesting the impacts of recent significant events, waiting for clearer catalytic factors to emerge. From on-chain data, the activity level of the Bitcoin network has decreased, with both trading volume and the number of active addresses at low levels, reflecting a lack of enthusiasm among market participants.

However, institutional capital continues to flow into the cryptocurrency market, providing support for Bitcoin's medium to long-term trend. Analysts expect Bitcoin to regain upward momentum after stabilizing within the current range. However, in the short term, Bitcoin may continue to seek direction amidst fluctuations, and investors need to closely monitor the development of significant events and prudently manage risks.

) 2. Continuous inflow of funds into Ethereum ETFs, institutional investors favor it.

Ethereum attracted $860 million in ETF inflows in June, indicating institutional investors' optimism about its prospects. Analysts believe this trend may continue as Ethereum's applications in decentralized finance and NFTs expand, and the ecosystem becomes increasingly prosperous.

The price of Ethereum is currently fluctuating around $2,500, with room for a certain drop from its historical highs. However, in the long term, Ethereum's position in the cryptocurrency market is expected to be further consolidated. The ratio of Ethereum to Bitcoin remains stable, reflecting investors' recognition of its long-term value.

However, Ethereum still faces some challenges in terms of scalability and energy consumption. Its future performance will also depend on the continued development of the ecosystem, changes in regulatory policies, and the competitive landscape with other public chains. Investors need to closely monitor these changes and carefully assess the risks and opportunities.

3. The altcoin market is diversifying, with some tokens rebounding.

In the past 24 hours, the altcoin market has shown a divergent trend. Some tokens, such as MAGIC, T, and SEI, have rebounded with daily increases exceeding 10%. However, many other tokens, like PEPE, continue to decline.

Analysts point out that the volatility of the altcoin market is mainly influenced by speculative sentiment and community activities. Some tokens create a frenzy on social media, attracting investors, while others are hit by negative news, leading to a wave of selling.

Overall, the risk in the altcoin market is relatively high, and investors need to exercise caution. It is recommended that investors focus on the actual applications and development prospects behind the tokens, rather than blindly chasing prices. At the same time, managing position risk and timely taking profits and cutting losses are key to participating in the altcoin market.

In summary, the volatility of the cryptocurrency market will continue for a period of time. Investors need to remain patient and rational, closely monitor the developments of significant events, and prudently grasp risks and opportunities.

3. Project News

OpenAI and Scale AI's partnership gradually comes to an end, raising industry concerns.

OpenAI's partnership with the artificial intelligence data labeling company Scale AI is gradually coming to an end. Scale AI had provided a large amount of manually labeled data for OpenAI, which was used to train large language models like ChatGPT. However, as OpenAI's own data labeling capabilities have improved, the collaboration between the two parties has become less close.

OpenAI's latest artificial intelligence model GPT-4 no longer uses data from Scale AI. This change reflects OpenAI's gradual reduction in reliance on external data suppliers, opting instead to rely more on its own data collection and labeling capabilities. OpenAI is heavily investing in its internal data labeling team to ensure the quality of the training data for its AI systems.

This move may have a certain impact on Scale AI's business. Scale AI was once one of OpenAI's largest data suppliers, and the two had a very close collaborative relationship. However, as OpenAI's own capabilities have improved, Scale AI's position in OpenAI's supply chain is no longer what it used to be.

Industry insiders believe that OpenAI's approach reflects its high emphasis on data quality and privacy protection. By internalizing the data collection and annotation processes, OpenAI can better control data quality and ensure compliance with relevant privacy regulations. However, this may also increase OpenAI's operational costs.

Overall, the changes in the partnership between OpenAI and Scale AI reflect the evolution of the division of labor and supply chain patterns within the artificial intelligence industry. As artificial intelligence technology continues to develop, major companies are striving to enhance their data processing capabilities to ensure the quality and reliability of artificial intelligence systems.

2. Sui ecological project Cetus completes its first round of financing, attracting industry attention.

The DeFi lending protocol Cetus in the Sui ecosystem has announced the completion of its first round of financing, raising $12 million. This news has drawn widespread attention from the industry, reflecting investors' confidence in the Sui ecosystem.

Cetus is a decentralized lending protocol based on the Sui blockchain, designed to provide users with efficient and secure asset lending services. The protocol supports collateral lending for various crypto assets and employs innovative risk control mechanisms to ensure the stability and sustainability of the system.

In the latest round of financing, Cetus received support from well-known investment institutions such as y Capital and Multicoin Capital. These institutions are optimistic about Cetus's development prospects within the Sui ecosystem and believe it is expected to become an important infrastructure in the Sui ecosystem.

The innovation of Cetus lies in its adoption of a new type of risk control model that can dynamically adjust the lending ratio based on market conditions, thereby better controlling systemic risk. At the same time, Cetus also plans to launch a new type of token economic model to incentivize users to participate in and maintain the system.

Industry insiders believe that Cetus's successful financing reflects investors' confidence in the Sui ecosystem. As an emerging blockchain ecosystem, Sui is attracting more and more projects and funds. Cetus's financing is expected to further promote the development of the Sui ecosystem and provide a reference for other projects.

However, some analysts have pointed out that the Sui ecosystem is still in its early stages, and competition among projects may intensify. Cetus needs to continue to innovate and establish positive interactions with other projects in order to secure a place in the Sui ecosystem.

3. The development direction of the Aptos Foundation is questioned, and the community expects a clear roadmap.

Aptos is an emerging blockchain ecosystem created by former Meta employees. However, recently, the development direction of the Aptos Foundation has been questioned by the community, with users and developers hoping that the foundation can provide a clearer roadmap.

The Aptos Foundation is responsible for managing and distributing funds for the Aptos ecosystem to support its development. However, some community members have stated that the foundation's current investment direction is unclear and lacks a clear development focus.

For example, some users believe that the Aptos Foundation should support infrastructure construction and the development of underlying technologies more, rather than investing too much in application-layer projects. Other developers hope that the foundation can support the open-source community more, promoting the open and diversified development of the ecosystem.

In response to these concerns, the Aptos Foundation stated that they are developing a more comprehensive development roadmap to address the community's concerns. The foundation is committed to being more transparent about investment decisions and maintaining close communication with the community.

Industry insiders believe that the development direction of the Aptos Foundation will directly impact the future of the entire Aptos ecosystem. A clear roadmap can not only attract more developers and projects to join but also ensure the sustainable development of the ecosystem.

At the same time, analysts also pointed out that Aptos, as an emerging ecosystem, is normal in exploring its development direction. The foundation needs to continuously adjust and optimize its strategy based on market demand and technological development trends. The key is to maintain good communication with the community and absorb opinions and suggestions from all sides.

4. Movement Eco projects are highly anticipated, and the development prospects of Move language are broad.

Movement is currently the only Move language ecosystem project that has not issued tokens, attracting significant attention in the industry. The Move language is considered the next generation smart contract language, with advantages such as high security and strong composability, and has a broad development prospect.

The Move language was originally developed by Meta ###Facebook### to support its digital currency Diem (, formerly known as Libra). Although the Diem project ultimately failed, the Move language itself has gained wide recognition in the industry. Currently, several public chain projects are built based on the Move language, including Sui, Aptos, and Starlord.

Movement is another emerging ecosystem based on the Move language. As a brand new public chain project, Movement is attracting more and more attention. Industry insiders believe that Movement is expected to become a new force within the Move language ecosystem.

The innovation of Movement lies in its adoption of a new consensus mechanism aimed at enhancing the system's scalability and security. At the same time, Movement plans to launch a series of innovative application layer protocols to attract more developers and users to join.

Industry insiders believe that the development prospects of the Move language are broad, and the success of projects like Movement will further promote the development of the Move language. The security and composability advantages of the Move language are expected to attract more traditional enterprises and institutions to join the blockchain field.

However, some analysts point out that the Move language ecosystem is still in its early stages, and competition between projects may intensify. Movement needs to continue to innovate and establish positive interactions with other projects in order to secure a place in the Move language ecosystem.

( 5. Sui ecosystem welcomes USDC cross-chain support, promoting ecosystem development.

The Sui ecosystem has reached an important milestone: the stablecoin USDC is now supported for cross-chain transfers on the Sui network. This initiative will further promote the development of the Sui ecosystem, attracting more users and projects to join.

USDC is a stablecoin issued by Circle, pegged to the US dollar, and is widely popular in the cryptocurrency space. By supporting cross-chain transfers of USDC on the Sui network, users can more conveniently transfer assets into the Sui ecosystem and participate in various DeFi applications and other services.

The realization of this function is made possible by the support of the Grayscale Trust Foundation. The Grayscale Trust Foundation is an institution focused on digital asset management and has established a partnership with Circle to provide cross-chain support for USDC on the Sui network.

Industry insiders believe that the addition of USDC will bring more liquidity and financial support to the Sui ecosystem. Stablecoins play an important role in the DeFi space, providing value anchoring and settlement functions for various applications.

At the same time, the addition of USDC also reflects that the Sui ecosystem is gradually improving its infrastructure. A healthy ecosystem requires support from various assets to meet the needs of different users.

However, some analysts have pointed out that the Sui ecosystem still needs to continue attracting more high-quality projects and applications to truly achieve sustainable development. Relying solely on USDC as a stablecoin is not enough; more innovative applications and services are needed to provide users with greater value.

) 6. The number of Sui ecological projects is limited, and the industry is looking forward to more star cases emerging.

Although the Sui ecosystem is developing well, the number of projects currently available for investors to pay attention to is still limited. Both inside and outside the industry are looking forward to the emergence of more star projects and application cases to promote the development of the Sui ecosystem.

Currently, the most notable projects in the Sui ecosystem include Cetus, Navi, and Scallop. These projects cover areas such as DeFi, gaming, social, and infrastructure, contributing to the diversified development of the Sui ecosystem.

4. Economic Dynamics

1. The Federal Reserve keeps interest rates unchanged, suggesting a possible rate hike later this year.

The current economic environment presents a complex situation. On one hand, the growth of the US GDP is slowing, with the annualized quarter-on-quarter growth of real GDP in the first quarter being only 1.3%, below expectations. On the other hand, inflationary pressures continue, with the core PCE price index rising 4.7% year-on-year in May, far exceeding the 2% target. The labor market remains robust, with the unemployment rate holding steady at a low of 3.7% in May.

The Federal Reserve decided to maintain the target range for the federal funds rate at 5.00%-5.25% during its interest rate decision meeting on June 20. Although there is no rate hike for now, Fed Chair Powell hinted that if inflation remains high, there may be another rate increase later this year. Powell stated that inflationary pressures are still severe, and the Fed will stick to its goal of reducing inflation to 2%.

The market reacted mildly to the Fed's decision. Investors expect the Fed to raise interest rates by another 25 basis points in September and to adjust rates to the range of 5.5%-5.75% by the end of the year. Some analysts believe that the Fed's hawkish stance may prolong the economic slowdown, but it helps to curb inflation expectations.

Goldman Sachs Chief Economist Jan Hatzius stated: "Despite the increasingly obvious signs of an economic slowdown, the Fed still views inflation as a top priority. We expect that in the coming months, the Fed will continue to raise interest rates until inflation significantly subsides."

2. China's manufacturing PMI in June fell to 49.0, indicating a slowdown in the economic recovery.

The official manufacturing Purchasing Managers' Index (PMI) released by the National Bureau of Statistics of China on June 20 was 49.0, down from 49.4 last month and below the market expectation of 49.5. This marks the third consecutive month that the PMI has remained below the threshold, reflecting a slowdown in the pace of China's economic recovery.

From the sub-item data, the new orders index is 46.4, a decrease of 1.2 percentage points from last month; the new export orders index is 46.5, a decrease of 0.3 percentage points from last month; the production index is 49.3, a decrease of 0.8 percentage points from last month. Employment in the manufacturing sector continues to contract, with an employment index of 46.6.

Economists point out that the June PMI data reflects that weak domestic demand and slowing exports have constrained the recovery of the manufacturing sector. The intensification of the Sino-U.S. trade dispute and external uncertainties such as the slowdown in global economic growth have also put pressure on business confidence and investment.

Ouyang Ge, a senior economist at China International Capital Corporation, stated: "Investment in manufacturing and production activities remains relatively sluggish, and enterprises are facing significant internal and external pressures. The government should increase infrastructure investment and further reduce taxes and fees to alleviate the difficulties faced by enterprises."

Zhu Haibin, head of Asian economic research at Citibank, believes that PMI data shows that downward pressure on the economy remains, and it is expected that the government will increase easing efforts in the second half of the year, including further cuts in reserve requirements and interest rates.

3. The EU and New Zealand have reached a free trade agreement to reduce tariff barriers.

The EU and New Zealand reached a free trade agreement on June 30, clearing away tariff and non-tariff barriers for businesses from both sides to enter each other's markets. This is the first major trade agreement the EU has reached in the Asia-Pacific region, and it is also the first new generation free trade agreement signed by New Zealand with a major trading partner.

According to the agreement, the EU will eliminate 92.8% of product tariffs within 7 years, while New Zealand will eliminate 100% of product tariffs within the same period. Both sides will also reach a consensus in areas such as services trade, investment, government procurement, and intellectual property, eliminating non-tariff barriers.

The European Union's Trade Commissioner Valdis Dombrovskis stated that this agreement will bring great opportunities for EU businesses and help promote the EU's economic interests in the Asia-Pacific region. New Zealand Prime Minister Chris Hipkins believes that the agreement will provide better access conditions for New Zealand exporters.

Analysts point out that the free trade agreement between the EU and New Zealand is not only of economic significance but also highlights the close cooperation between the two sides in upholding multilateralism and addressing global issues such as climate change. This agreement is also seen as an important step for the EU to expand its influence in the Asia-Pacific region.

Goldman Sachs analyst Alec Phillips believes that the free trade agreement between the EU and New Zealand will help promote trade negotiations between the EU and other economies in the Asia-Pacific region, creating more opportunities for EU companies in the Asia-Pacific.

5. Regulation & Policy

1. The Securities and Exchange Commission of Thailand is seeking public opinions on the listing standards for digital asset exchange tokens.

The Securities and Exchange Commission of Thailand ( SEC ) recently launched a public consultation to seek opinions on the proposed amendments to the token listing standards for digital asset exchanges, aiming to encourage the listing of more innovative assets. According to the proposal, digital asset exchanges may list "directly usable tokens or cryptocurrencies" issued by the exchange itself or its affiliates for blockchain transactions in the future, to promote the listing of assets that align with innovation and application development.

The new regulations are proposed to require exchanges to publicly disclose the related party information of token issuers and to mark risk warnings in the system to help regulatory authorities prevent insider trading. At the same time, exchanges still need to establish regulatory mechanisms to prevent conflicts of interest, market manipulation, and unfair trading practices. Tokens that are already listed must supplement related information within 90 days after the rules take effect.

This move is part of Thailand's strategy to attract international cryptocurrency business and build a regional financial center. Previously, the Thai government decided to exempt capital gains tax on cryptocurrency transactions for five years starting from 2024, which is expected to bring economic benefits of over 30.7 million dollars. The government is also promoting a pilot program for cryptocurrency tourism payments in Phuket and is considering opening a Bitcoin spot ETF to retail investors.

Industry insiders believe that this revision will help attract more innovative crypto assets to be listed in Thailand, enhancing the activity and competitiveness of Thailand's digital asset market. However, some are concerned that overly lenient listing standards may lead to regulatory risks.

2. The Secretary for Financial Services and the Treasury of Hong Kong: Does not rule out the possibility of stablecoins being pegged to the RMB.

The Secretary for Financial Services and the Treasury of the Hong Kong Special Administrative Region Government, Xu Zhengyu, recently stated in an interview at the Lujiazui Forum that from a legal perspective, Hong Kong does not rule out the possibility of stablecoins being pegged to the Renminbi. Xu Zhengyu pointed out that the entire regulatory logic in Hong Kong is very clear; it follows what is written in the law, and the law allows for different fiat currencies to be used as the underlying reference for stablecoins.

However, he also emphasized that if such arrangements are to be implemented, a comprehensive consideration of the country's exchange rate mechanism, monetary policy, and related risks must be taken into account. Regarding whether stablecoins can be pegged to the renminbi to promote the internationalization of the renminbi, Xu Zhengyu responded that from a legal perspective, this possibility cannot be ruled out, but if it is to be done, the entire country's exchange rate and monetary policy must be considered.

Industry insiders believe that Hong Kong, as an offshore RMB center, could help promote the internationalization of the RMB if it can take the lead in piloting the issuance of a stablecoin pegged to the RMB. However, it also needs to weigh potential risks and ensure compliance with the overall national monetary policy.

Experts say that the reshaping effect of stablecoins in cross-border payments can no longer be ignored. As a modern monetary tool that integrates currency attributes and international payment functions, stablecoins are not only an indispensable infrastructure in the digital economy era but can even become tools for rule-making games. If Hong Kong takes the lead in piloting CNH stablecoins, it may open a new digital path for the internationalization of the Renminbi, becoming a key support point for the reconstruction of the future cross-border payment system.

3. The Brazilian government plans to purchase cryptocurrency tracking software to strengthen national regulation of crypto assets.

Brazilian authorities are seeking a software solution to track the location and movement of various cryptocurrency projects nationwide. The aim of this proposal is to enhance the government's ability to combat cryptocurrency-related crimes.

The Brazilian Ministry of Justice and Public Security has issued a contract announcement aimed at seeking a solution to better detect and track multiple cryptocurrency projects and their movements over the next 36 months. The notice states that its goal is "to enter into a software contract for locating, tracking, and analyzing cryptocurrency asset transactions based on blockchain technology, in order to meet the needs of the National Public Security Secretariat and other participating institutions."

The public contract will begin accepting proposals on July 4th next year and clearly states that these solutions will be promoted in specific cities in Brazil, including 15 of the capitals of Brazil's 27 states.

This move aims to strengthen government regulation of cryptocurrency assets and combat illegal activities conducted using cryptocurrencies. However, there are also concerns that excessive regulation may hinder the innovative development of the cryptocurrency industry.

Experts point out that cryptocurrency regulation is a global challenge. Governments around the world need to seek a balance between promoting industry innovation and preventing risks, establishing clear and reasonable regulatory frameworks. At the same time, there is a need to strengthen cross-border cooperation to jointly combat crimes involving the use of cryptocurrencies.