10.17 AI Daily Report Major News in the Encryption Industry: Ripple's 10 Billion Acquisition Plan Causes Shock, France Strengthens Regulatory Efforts

1. Headlines

1. The Ripple acquisition plan has caused a stir in the industry.

Ripple Labs, the company behind XRP, is leading a $1 billion funding round aimed at establishing a new digital asset treasury to continuously purchase and hold XRP tokens. This initiative is seen as a move by Ripple to solidify its influence in the cryptocurrency space and lay the groundwork for the long-term value growth of XRP tokens.

Analysts point out that this acquisition plan highlights Ripple Labs' long-term commitment and confidence in the XRP token. By continuously purchasing and reserving XRP, the company can enhance the supply scarcity of the token, thereby increasing its value. At the same time, this also helps attract more institutional investors, bringing new capital inflows to the XRP token.

However, some analysts have expressed concerns about this. They believe that Ripple Labs' large holdings of XRP could affect the decentralization of the token and increase the risk of centralization. Furthermore, if the company sells its held XRP in the future, it could have a significant impact on the token's price.

Overall, Ripple Labs' $1 billion acquisition plan has sparked widespread attention and discussion within the industry. The impact of this move will continue to be felt for some time to come and is worth close attention.

2. French regulators intensify anti-money laundering scrutiny of cryptocurrency companies

According to reports, the French Prudential Supervision and Resolution Authority (ACPR) is expanding its anti-money laundering scrutiny of cryptocurrency trading platforms. The regulator is trying to determine which of the more than 100 firms registered in the country providing crypto services will obtain operating licenses across the EU in the coming months.

Insiders reveal that ACPR has been reviewing dozens of trading platforms since the end of last year, including well-known crypto companies. The regulatory authority requires these companies to strengthen risk and compliance controls, such as hiring more compliance personnel and enhancing IT security. Failure to rectify as required may affect the company's ability to obtain EU MiCA cross-border licenses.

This review action reflects the regulatory authorities' high concern for the anti-money laundering risks associated with cryptocurrencies. The anonymity and cross-border liquidity of crypto assets make them susceptible to being exploited by criminals for money laundering activities. Therefore, strengthening regulatory and compliance requirements helps to purify the cryptocurrency ecosystem and maintain financial order.

However, some industry insiders are concerned that overly strict regulations may hinder the innovative development of the cryptocurrency industry. They call on regulatory agencies to leave space for compliant companies to grow while preventing risks.

Overall, this action by French regulators has sparked widespread attention and discussion within the industry. Cryptocurrency companies need to strengthen their internal compliance structures and maintain positive interactions with regulators to jointly promote the healthy development of the industry.

3. Good news from the Solana ecosystem, Uniswap cross-chain launch.

The well-known decentralized exchange Uniswap announced that its products have expanded to the Solana network, achieving the first non-EVM( Ethereum Virtual Machine) on-chain transaction. This key move unifies access to decentralized finance( DeFi) for millions of users worldwide.

Uniswap stated that this cross-chain deployment is supported by the Solana ecosystem project. In the future, Uniswap will also explore cross-chain bridging, cross-chain trading, and wallet support features to further enhance user experience.

Analysts believe that Uniswap's launch on Solana marks an important step towards the multi-chain development of the DeFi ecosystem. With advantages such as high throughput and low transaction fees, Solana is expected to become a new hub for DeFi innovation. As a leader in the DeFi sector, Uniswap's presence will further promote the prosperous development of the Solana ecosystem.

However, there are also views pointing out that Uniswap's development path on Solana may not be smooth. The Solana ecosystem already has many mature projects, and Uniswap will need to engage in fierce competition with them. In addition, the level of decentralization of the Solana network is also under some scrutiny, which may affect Uniswap's development prospects.

Overall, Uniswap's cross-chain launch on Solana is undoubtedly a significant positive development that will bring new vitality to the DeFi ecosystem. However, how it will evolve remains to be seen.

4. AI training data triggers copyright disputes, Salesforce faces class action lawsuit

Tech giant Salesforce is facing a class action lawsuit for allegedly using hundreds of thousands of copyrighted books illegally while building the AI model XGen. Two authors, E. Molly Tanzer and Jennifer Gilmore, claim that Salesforce used content from the RedPajama dataset, infringing on their copyrights.

Previously, OpenAI's GPT language model was also sued for the same reason. These cases highlight the copyright issues surrounding AI training data, sparking widespread attention and discussion within the industry.

Supporters argue that training AI models requires large amounts of data, and that the reasonable use of a small amount of copyrighted content should be considered “fair use.” However, opponents are concerned that if such practices are allowed, it will severely infringe on the rights of authors and hinder their creative enthusiasm.

Analysts point out that the copyright issues of AI training data involve multiple aspects of technology, law, and ethics, and clear rules need to be established for regulation. At the same time, new business models should be explored to allow authors to benefit from the training of AI models.

Overall, the copyright disputes over AI training data reflect the contradictions between technological development and legal regulations, requiring the collective efforts of all sectors of society to find a balance. Only in this way can AI technology continue to develop healthily while protecting intellectual property rights.

5. SubHub Protocol Drives Innovation in Web3 Marketing

SubHub is an infrastructure protocol dedicated to becoming the leading cross-chain messaging and marketing hub in Web3. The project allows developers to send messages directly to users' wallet addresses and decentralized identities through AI-driven real-time communication features, and innovatively introduces a “Read-to-Earn” mechanism, aiming to redefine the interaction and value distribution between developers and users.

Analysts believe that the SubHub protocol addresses the current industry pain points of fragmented and inefficient Web2 marketing tools, and is expected to drive innovation in the Web3 marketing space. By combining blockchain, artificial intelligence, and token economics, SubHub provides project parties with a new way to reach users, which helps to improve marketing conversion rates.

At the same time, SubHub's “Read to Earn” mechanism has also attracted industry attention. This innovative design encourages users to actively receive marketing information, which is conducive to building a more efficient and valuable marketing ecosystem.

However, there are also viewpoints that the challenges faced by SubHub cannot be ignored. For example, how to protect user privacy and prevent excessive marketing, all of which require in-depth consideration by protocol designers. In addition, SubHub needs to attract enough project parties to settle in order to truly realize its value.

Overall, the SubHub protocol brings new ideas and possibilities to the Web3 marketing field, and it is worth the continuous attention of people inside and outside the industry.

2. Industry News

1. Bitcoin has fallen below the $109,000 mark, and the cryptocurrency market has suffered a heavy setback.

Bitcoin briefly fell below the $109,000 mark on October 17, with an intra-day decline of over 3%. This drop was mainly due to the dual impact of the escalating China-U.S. trade war and a massive outflow of funds from Bitcoin spot ETFs.

Analysts point out that the escalating trade tensions between China and the United States have triggered a risk-averse sentiment in global markets. Meanwhile, Bitcoin spot ETFs experienced a net outflow of $220 million from October 10 to 14, accounting for 0.14% of total assets under management, indicating that institutional investor demand is weakening.

The total market capitalization of cryptocurrencies plummeted by 2.7% to $3.7 trillion on that day. Besides Bitcoin, other major cryptocurrencies such as Ethereum and Solana also experienced varying degrees of decline. The market sentiment indicator “Fear and Greed Index” has fallen from “Fear” to an “Extreme Fear” level of 22 points. The total liquidation volume in the cryptocurrency market on that day surged by 56% to $724 million.

Analysts believe that although the fundamentals of major cryptocurrencies like Bitcoin remain strong, the uncertainty of the macro environment is likely to continue dominating market trends in the short term. Investors need to closely monitor the developments in the China-U.S. trade situation and changes in institutional capital flows. Only when the external environment stabilizes is the cryptocurrency market expected to regain its upward momentum.

2. Is Ethereum facing an “apocalyptic market”? Key technical indicators may indicate a drop of 37.5%

Despite Ethereum's prominent position as the leading smart contract platform in the cryptocurrency market, the latest technical signals indicate that it may face further downside risks. Following a significant price correction, traders are closely monitoring key indicators that typically lead to sharp declines.

Analysts point out that an important technical indicator for Ethereum has turned bearish, and historically, this situation often triggers a 60% drop. If this pattern repeats, the price of Ethereum could fall from the current level of around $4000 to about $2500.

However, some analysts have expressed doubts about this prediction. They believe that Ethereum's fundamentals remain strong, and its position as the core of the Ethereum ecosystem is difficult to shake. Even if there is a short-term correction, Ethereum will still be an indispensable part of the cryptocurrency market in the long run.

Regardless, investors need to remain highly vigilant about the price fluctuations of Ethereum. On one hand, if the bearish signals on the technical front materialize, investors need to take timely stop-loss measures; on the other hand, if the price of Ethereum stabilizes and rebounds, it will also present good investment opportunities.

3. The price of gold token PAXG surged over 8%, institutions may be positioning themselves in safe-haven assets.

As the cryptocurrency market faced a severe setback, the price of the gold-backed token PAXG surged in the morning of October 17, with some exchanges seeing the price break through $4800, marking an intraday increase of over 8%.

Analysts believe that this phenomenon may reflect that institutional investors are increasing their allocation to safe-haven assets. Against the backdrop of rising geopolitical risks such as the China-U.S. trade war, the appeal of traditional safe-haven asset gold is growing day by day.

At the same time, PAXG, as a tokenized gold asset, not only possesses the value storage function of gold but also has the high liquidity advantage of crypto assets. This makes PAXG an ideal choice for institutional investors to allocate hedging assets in the cryptocurrency market.

Of course, there may be some technical factors behind the surge of PAXG, such as an over-concentration of short-selling forces. However, it is undeniable that the demand for safe-haven assets is constantly increasing in the current turbulent market environment. If geopolitical risks continue to escalate, the prices of safe-haven assets like PAXG may rise further.

4. Cryptocurrency stocks generally fell, with TRON down by 11.65%.

While the cryptocurrency market has experienced a severe setback, stocks of publicly traded companies related to cryptocurrencies have generally declined as well. Among them, TRON's stock price fell by 11.65%, marking the most significant drop.

Analysts point out that the decline in cryptocurrency stocks is primarily dragged down by the sluggish cryptocurrency market. Since the business revenue and profitability of cryptocurrency companies largely depend on the performance of the cryptocurrency market, the drop in cryptocurrency prices will inevitably have a negative impact on the performance of these companies.

In addition, the escalation of the Sino-U.S. trade war has intensified investors' concerns about risk assets, further suppressing the performance of cryptocurrency stocks.

However, some analysts believe that the decline in cryptocurrency stocks may provide a good buying opportunity for investors. After all, the long-term prospects of the cryptocurrency industry remain promising, and as long as market sentiment improves, cryptocurrency stocks are expected to regain their upward momentum.

Overall, the trend of cryptocurrency stocks will continue to be influenced by the cryptocurrency market conditions. If the cryptocurrency market can stabilize after the decline, the stocks of related companies will also receive support. However, if the cryptocurrency market further declines, cryptocurrency stocks may face even greater pressure.

5. Bitcoin mining firms expand financing scale, optimistic about long-term prospects.

Despite the drop in Bitcoin prices on October 17, cryptocurrency mining firms have expanded the issuance of their convertible preferred notes from the original $350 million to $500 million. This move is seen as a positive signal from the firms regarding the long-term prospects of Bitcoin.

Analysts say that as a professional Bitcoin miner, the revenue and profits of firms largely depend on the price trend of Bitcoin. By expanding their financing scale, firms can not only obtain more funds to expand their business scale but also reflect the company's confidence in the long-term value of Bitcoin.

In fact, although the price of Bitcoin has dropped in the short term, in the long run, Bitcoin as a new type of digital asset still holds promising prospects. With more and more institutional investors and regulatory bodies accepting Bitcoin, its level of adoption globally is expected to further increase.

Of course, the long-term prospects for Bitcoin are not all smooth sailing. Changes in regulatory policies, advancements in technological innovations, and competition from other cryptocurrencies may all have a certain impact on Bitcoin's development. However, overall, Bitcoin still possesses tremendous growth potential, which is the main reason why miners like firms are optimistic about Bitcoin.

6. Analyst: Solana ecosystem may become the preferred stablecoin trading network for the banking industry.

According to reports, Tether, the world's largest stablecoin issuer, has introduced its USDT and Tether Gold products to the Solana network through the full-chain interoperability framework Legacy Mesh. This move allows Solana to access over $175 billion in cross-chain liquidity.

Analysts believe that this could drive Solana to become the preferred network for stablecoin transactions in the banking industry. Wise Chief Investment Officer Matt Hougan stated that Solana is expected to win favor on Wall Street due to its high scalability and low transaction fees.

In fact, stablecoins have a broad application prospect in areas such as cross-border payments and settlements. According to estimates by the accounting firm KPMG, using stablecoins can reduce cross-border settlement time from several days to just seconds, with transaction costs dropping by up to 99%. Therefore, the demand for stablecoins is continuously increasing among major banks and financial institutions.

If Solana really becomes the preferred stablecoin trading network for the banking industry, the price of its token SOL will also receive strong support. Analysts expect SOL to break through the early high of $300, with a long-term target that could even reach $1,000, representing a potential increase of up to 415%.

Of course, for Solana to achieve this goal, it still needs to further expand the scale of its ecosystem and attract more institutional users to join. Nevertheless, Tether's participation has already provided significant liquidity support for Solana, which will have a profound impact on its future development.

7. The cryptocurrency exchange Up will launch the ZeroBase token ZBT.

According to official news, the South Korean cryptocurrency exchange Up will list the ZeroBase(ZBT) token, supporting three trading pairs: Korean won, Bitcoin, and USDT. This news is seen as an important milestone for the ZeroBase project in gaining recognition from mainstream exchanges.

ZeroBase is a project aimed at building a decentralized internet, with underlying technologies including distributed storage, distributed computing, and distributed communication. ZBT, as the universal token of the ZeroBase ecosystem, can be used to pay transaction fees, participate in governance, and more.

Analysts say that the ZeroBase project launching on mainstream exchanges will help increase its visibility and user retention. After all, for most investors, the liquidity of a token is an important consideration. Once ZBT is listed on Up, its liquidity will be significantly improved.

At the same time, the ZeroBase project also faces some challenges. Due to its relatively unfamiliar technical route, more effort is required to explain and promote it to users. In addition, the construction of a decentralized internet requires a lengthy process, and whether ZeroBase can achieve its ambitious goals on schedule still has a certain degree of uncertainty.

3. Economic Dynamics

1. Federal Reserve officials are increasingly divided, and there is uncertainty regarding the extent of interest rate cuts.

The current U.S. economy is facing the dual pressures of high inflation and a slowing job market. The latest data shows that the Consumer Price Index (CPI) rose by 8.2% year-on-year in September, higher than expected, and there are also signs of a slowdown in the job market. Against this backdrop, how the Federal Reserve balances inflation and employment has become the focus.

Recently, there has been a division within the Federal Reserve regarding the extent of the next interest rate hike. Governor Waller has called for a modest rate cut of 25 basis points, believing that the risks of a slowdown in the labor market outweigh the slight rebound in inflation. Meanwhile, Governor Mulan advocates for a significant rate cut of 50 basis points to address the pressures of economic slowdown.

Market participants have differing expectations regarding the Federal Reserve's decisions. On one hand, high inflation supports further rate hikes; on the other hand, signs of an economic slowdown may prompt the Federal Reserve to slow down its rate hike pace. Investors are closely monitoring the upcoming Federal Reserve interest rate decision meeting for clear signals on policy direction.

Goldman Sachs' latest survey shows that about 52% of institutional investors are optimistic about the stock market, believing that loose monetary policy is expected to stimulate the economy. However, former chief economist of the International Monetary Fund, Gita Gopinath, warned that a sharp decline in U.S. stocks could trigger a $35 trillion loss in the global market, dealing a devastating blow to the economy.

2. China's export growth is weak, and domestic demand stimulus policies may be strengthened.

China's economic growth further slowed in the third quarter, with the full-year GDP growth expected to be below the target of 5.5%. Exports, a pillar of the economy, have recently performed poorly, with September exports only increasing by 5.7% year-on-year, far below expectations.

At the same time, weak domestic demand has intensified the downward pressure on the economy. In September, the total retail sales of consumer goods increased by 2.5% year-on-year, which was below expectations. Experts point out that China is facing persistent deflationary pressures, with household spending accounting for 40% of GDP, and weak domestic demand is dragging down the pace of economic recovery.

In response to the economic slowdown, the Chinese government has introduced a series of policy measures, including fiscal spending, tax reductions, and fee cuts. However, analysts believe that further increasing the stimulus for domestic demand may become the next focus.

The G7 has recently coordinated to respond to China's control measures on rare earth exports, reflecting the escalation of trade tensions between China and the United States. Against the backdrop of sluggish external demand, China may increase its internal demand stimulus policies to boost economic growth momentum.

3. Global demand for hedging is rising, and the price of gold has突破4300美元创新高.

Due to factors such as geopolitical conflicts, high inflation, and expectations of economic slowdown, global demand for safe-haven assets has significantly increased recently. As a traditional safe-haven asset, the price of gold continues to rise, breaking through $4300/ounce on October 17, setting a new historical high.

The market value of gold has soared to over $30 trillion, surpassing Bitcoin and American-listed tech giants, becoming the second largest asset class after stocks. Analysts believe that this round of increases is primarily driven by safe-haven demand due to geopolitical conflicts, escalating US-China trade tensions, inflation pressures, and expectations of interest rate cuts by the Federal Reserve.

Analysts from institutions such as Goldman Sachs and Societe Generale expect gold prices to further rise to the range of $4,500 to $5,000. Investors are betting that the Federal Reserve will continue to cut interest rates, which is expected to further boost gold prices.

However, some experts have expressed doubts about the surge in gold prices. Former Chief Economist of the International Monetary Fund, Gita Gopinath, warned that a potential crash in the US stock market could trigger a global economic crisis, which may impact gold prices. Overall, the uncertainty surrounding geopolitical and economic prospects will continue to support gold demand.

4. Government shutdown affects data release, which may influence the Federal Reserve's decision-making.

Due to the ongoing government shutdown in the United States, the release of key economic data has been affected, which may disrupt the Federal Reserve's decision-making process. Federal Reserve officials may face uncertainty in interest rate decisions in the absence of crucial data.

Key data affected includes employment reports, retail sales data, etc., which are typically regarded as important references for the Federal Reserve in assessing economic conditions and formulating monetary policy.

Wall Street Journal reporter Nick Timiraos stated that without evidence of changes in the labor market that these reports can provide, Trump's and his allies' efforts to seek larger rate cuts are likely to be in vain.

Some analysts believe that in the absence of data, the Federal Reserve may be inclined to adopt a cautious approach, locking in a moderate rate cut path of 25 basis points. However, there are also viewpoints that suggest the Federal Reserve may rely on other leading indicators as a reference for decision-making.

Overall, the government shutdown has hindered data releases, exacerbating the uncertainty of Federal Reserve decisions. The market is closely monitoring the progress of the government reopening and how the Federal Reserve will respond to the challenges posed by missing data.

4. Regulation & Policy

1. French regulators intensify anti-money laundering scrutiny of crypto companies, and are required to strengthen compliance.

The French Prudential Supervision and Resolution Authority (ACPR) is expanding its anti-money laundering scrutiny of cryptocurrency trading platforms, aiming to determine which of the more than 100 entities registered in the country to provide crypto services will obtain operating licenses across the EU in the coming months.

As part of the EU's anti-money laundering regulations, the ACPR has been reviewing dozens of trading platforms since the end of last year. According to insiders, major cryptocurrency companies are all under the scrutiny of ACPR officials. It is reported that during last year's on-site inspections, the ACPR requested enhanced risk and compliance controls, including hiring more compliance personnel and improving IT security, and granted a few months for rectification.

This review aims to ensure that cryptocurrency companies comply with EU anti-money laundering regulations, laying the groundwork for obtaining operational licenses within the EU. The inspection results will be shared with the French Financial Markets Authority (AMF), and failure to rectify issues as required may affect the company's ability to obtain MiCA cross-EU licenses. French companies must be approved by the end of June 2026, and currently, only a few institutions have received approval.

The cryptocurrency company expressed understanding and support for this. A spokesperson stated that they have been committed to building an industry-leading compliance and risk control system and will continue to work closely with regulatory agencies. Industry insiders believe that this initiative will help the long-term healthy development of the cryptocurrency industry, but it may also bring certain compliance cost pressures in the short term.

2. Federal Reserve Governor Barr calls for strengthened regulation to ensure the reliability and safety of stablecoins.

Michael Barr, a member of the Federal Reserve Board, stated during a speech at the Washington Fintech Week that despite the potential of stablecoins to accelerate remittances and reduce costs in the financial system, more specific regulation is still needed to protect households, businesses, and the entire financial system.

Barr welcomed the “Genius Act” passed earlier this year, which establishes rules for reserve assets of stablecoins, requiring them to be backed by highly liquid assets. However, he also pointed out that regulators must now work to fill the legislative gaps in the act to enhance market confidence in stablecoins and protect consumers from runs and other destabilizing events.

He warned that the quality and liquidity of reserve assets for stablecoins are crucial for their long-term viability due to the lack of a safety net of traditional cash (such as deposit insurance). Barr emphasized that several measures may need to be taken, including stronger regulation, before the use of stablecoins sees significant growth.

Industry insiders agree with Barr's remarks. Circle CEO Jeremy Allaire stated that stablecoins need a clear regulatory framework to ensure their safety and transparency, and Circle has consistently supported the establishment of a prudent regulatory system. However, there are also opinions that excessive regulation may stifle innovation in stablecoins.

3. The Bank of Ghana plans to introduce a cryptocurrency regulatory framework by the end of 2025.

The Governor of the Bank of Ghana, Ernest Addison, stated that the country plans to regulate cryptocurrencies by December 2025. This move is due to a trading volume of 300 million dollars from 3 million users, and a draft bill and new regulatory department have been introduced to align with regulatory efforts in other African countries.

Addison explained: “This is an important area where we must strengthen the regulation and monitoring of these transactions. We have developed a regulatory framework and introduced a new bill to regulate virtual assets. This bill has been submitted to parliament, and we hope it can be passed by the end of December, at which point we will be able to regulate cryptocurrency in Ghana.”

As the largest gold producer in Africa, Ghana is establishing a new department and cultivating relevant expertise to assist in the regulation of this sector. This initiative aims to address the growing use of cryptocurrencies in Ghana and align with regulatory efforts in neighboring countries such as Kenya.

Industry insiders in the cryptocurrency field welcome this. Ray Youssef, the company's head of Africa operations, stated that Ghana's regulatory framework will bring more legitimacy and trust to cryptocurrencies, benefiting the long-term development of the industry. However, some are concerned that excessive regulation may stifle innovation.

Experts believe that Ghana's regulatory measures reflect the increasing importance of cryptocurrencies on the African continent. The key to regulation lies in balancing innovation with risk management, creating a favorable environment for the application of cryptocurrencies in Africa.