10.24 AI Daily: The Crypto Assets industry welcomes a policy shift and regulatory framework, Bitcoin returns to $110,000.

1. Headline

1. Trump's pardon of CZ causes industry turmoil

President Trump exercised his constitutional power to pardon CZ, ending the cryptocurrency war. CZ was prosecuted during the Biden administration's war against cryptocurrencies, with the ruling being excessively harsh. Trump's move is widely seen as a strong signal of a policy shift by the U.S. government towards the cryptocurrency industry, indicating that the industry is gaining higher political attention and a more lenient regulatory environment.

The pardon is not only a turning point in CZ's personal destiny but could also allow him to return to management or reopen doors in the United States. Previously, CZ's criminal record had been an obstacle to business dealings, affecting his applications for regulatory licenses and opening bank accounts. Although CZ has resigned as CEO, his personal reputation and industry influence remain crucial, and the pardon would enhance confidence in the global market.

However, Trump's decision to pardon CZ is likely to draw strong criticism from Democrats. Earlier this year, Democrats demanded that the Trump administration provide details about its communications with CZ regarding the pardon and explicitly pointed out that the financial ties to the Trump family have raised ethical concerns. While Trump brings positive news to the market, the crypto sector's dependence on Trump's political standing has become an implicit uncertainty, making it particularly important to pay attention to Trump's performance in the 2026 midterm elections.

2. Bunni was attacked by hackers and shut down, Eye accuses the mastermind behind it.

The decentralized trading protocol Bunni announced today that it is officially shutting down due to security vulnerabilities and insufficient funds. Previously, Bunni lost approximately $2.3 million after being attacked by hackers. Bunni stated that it made the decision to shut down after assessing the high uncertainty of its baseline prospects, with audit and monitoring costs alone requiring payment in the six to seven figure range.

Eye pointed out that this attacker has extensive connections in the cryptocurrency industry and is linked to venture capital firms. She believes that she is unshakeable with her alibi and possesses thousands of online nicknames. Now it is time for her to pay the price. Eye emphasized that regulatory focus should be based on common human values, concentrating on preventing fraud and false statements, while projects that can promote the real economy and innovative industries should be supported.

In response to the recent cooling of the stablecoin and RWA craze, Eye believes this is “a necessary adjustment for long-term healthy development” and that the digital economy wave will eventually become an important driving force for global economic growth.

3. Pi Network mainnet launched, 3.36 million users completed KYC verification

Following the recent release of the system process, over 3.36 million pioneer users have fully completed KYC. The system process conducted additional checks on provisional KYC cases and allowed more than 4.76 million pioneer users who had passed provisional KYC to become eligible for completing full KYC. This large-scale system process uses advanced AI models and analyzes vast datasets from live detection and KYC application materials.

At the same time, Pi Network announced today that its mainnet is now live, with 253 applications launched accordingly. This marks the official transition of Pi Network from the proof-of-concept phase to the mainnet operation phase, providing users with more practical features and application scenarios.

The launch of the Pi Network mainnet and large-scale user KYC certification will inject new momentum into its subsequent development. Analysts believe that Pi Network provides a large number of users with the opportunity to participate in the crypto economy while ensuring security and compliance, which is expected to promote the popularization of cryptocurrency.

4. Depinsim builds the We entrance, eSIM mining to earn profits

The incentive platform under Depinsim allows Web2/Web3 project parties to reach real users at a low cost, achieving precise customer acquisition and community growth. Users can participate in the ecosystem in three ways: activating mining machines for passive mining, completing tasks, or using traffic. The earnings can be directly used for eSIM traffic recharges or exchanged for stable asset PIN.

The co-founder of Depinsim stated: “The goal is not to create the next crypto product, but to quantify every connection, every piece of data, and every second online into value, pushing Depinsim to become the bridge that truly integrates We into daily life.”

Analysis points out that Depinsim provides a brand new way for traditional internet users to participate in Web3, allowing them to earn rewards through daily use of their smartphones, thus lowering the barriers to learning and using cryptocurrency. At the same time, it also offers an efficient user acquisition channel for Web3 projects, which is beneficial for the healthy development of the ecosystem.

The innovative model of Depinsim may become an important link connecting the Web2 and We worlds, promoting the popularization process of We.

5. The crypto gaming sector is in trouble, and the token unlocking terms are under criticism.

First-level investor Romeo stated: “98% of AI+We applications have been disproved. I am very optimistic about the future of AI and Crypto, and I believe there will definitely be an AI project that stands shoulder to shoulder with Ethereum in the future, but currently, all AI projects are memes.”

Entrepreneurs are also very confused. Over the past year, many hot tracks are being debunked, with the development of full-chain games, NFTs, We social, Ethereum L2, and other sectors slowing down or stagnating, leaving practitioners feeling pessimistic and lost. Many “serious” project teams and investors have already started to invest in meme-related sectors.

Industry insiders are calling for adjustments to the utility and unlocking terms of tokens. The current unlocking mechanism and utility have significant issues; traditional IPOs require an investment lock-up period of only 6 months to a year, but for early-stage seed round investments in crypto companies, the overall lock-up period can extend to 3 to 4 years.

Analysis suggests that the crypto gaming sector has become exceptionally difficult, with all parties losing confidence. Crypto games are forcing participants to leave or innovate more significantly under increasingly challenging conditions. Adjustments to token utility and unlocking terms will help attract more capital into the sector, injecting new vitality into industry development.

2. Industry News

1. Bitcoin returns to $110,000, intensifying the bull-bear battle.

After a week of volatility, Bitcoin broke the $110,000 mark again on October 24, currently priced at $111,006, with a 24-hour increase of 2.25%. This rebound is mainly driven by favorable policies from the Trump administration towards the cryptocurrency industry.

President Trump pardoned founder CZ, ending an 11-month legal dispute. The White House stated that this move aims to “restore fairness in cryptocurrency policy.” This decision boosted market sentiment, driving Bitcoin higher in the short term. Meanwhile, the EU implemented the 19th sanctions measure against Russian exchanges and ruble stablecoins, highlighting the value of Bitcoin's neutrality.

However, analysts warn that Bitcoin's upward momentum still carries uncertainty. Coinglass data shows that long and short positions are highly overlapping in the range of $109,000 to $116,000, forming a short-term “liquidity trap.” If inflation data exceeds expectations, $113,800 and $116,000 may become a “bull trap.” Conversely, if inflation cools down, the market may retest the support zones of $107,000 and $104,000.

Overall, Bitcoin is expected to engage in a tug-of-war around the $110,000 mark in the short term. Investors need to closely monitor the upcoming inflation data, as this will be a key factor in determining future trends.

2. The activity on the Ethereum chain is rising, and institutions are positioning for long-term ETH opportunities.

Despite the recent pullback, Ethereum's on-chain activity continues to rise. According to Token Terminal data, the usage of stablecoins on the Ethereum chain surged by 400% in the past 30 days, reaching a historical high of $58.09 billion, with a total of over 12.5 million transactions.

Analysts believe that the recent surge in stablecoin activity is primarily driven by institutional investors and whales, who are accumulating ETH at lower prices. This strong institutional-level adoption and influx of funds, combined with a spike in CME futures open interest, has led analysts to generally predict that the price of Ethereum will eventually break through the $5000 mark.

In fact, institutions have been laying out their strategies for Ethereum for some time. Asset management giant T. Rowe Price plans to launch an actively managed multi-coin ETF and is very likely to include Ethereum in its digital asset holdings. This will bring more institutional funds into Ethereum.

Although Ethereum may face selling pressure in the short term, the long-term outlook remains positive. As regulations become clearer, Ethereum, as a “blue chip” in the cryptocurrency space, will continue to be favored by institutions. Investors can seize the current pullback as a good opportunity to position themselves for long-term gains in Ethereum.

3. Solana ecosystem receives further institutional recognition, Fidelity will launch SOL trading.

The renowned financial institution Fidelity Digital Assets announced that it will include SOL in its list of supported assets, bringing new institutional-level capital inflows to the Solana ecosystem. This move provides millions of Fidelity's American clients with a direct channel to trade SOL, and it is expected to inject billions of dollars into the Solana ecosystem.

The Solana ecosystem has recently shown strong performance, with the price of SOL rising 5% in the past 24 hours, rebounding strongly above $190. In addition to Fidelity's entry, the Solana ecosystem has also gained favor from other institutions. Analysts expect that, in the context of increasing institutional interest and potential ETF approvals, there is significant potential for a substantial short-term increase in SOL.

However, some analysts have raised concerns about the sustainability of the Solana ecosystem. Solana has been plagued by network congestion and downtime issues, with a global outage lasting nearly a day occurring last November. If the network's stability cannot be fundamentally improved, it will be difficult to attract more institutional funds for long-term holding.

Overall, the Solana ecosystem is strengthening itself by continuously gaining institutional recognition. However, to truly become an “Ethereum killer”, Solana still needs breakthroughs in infrastructure aspects such as network stability, which will be a top priority for its future development.

4. The performance of altcoins is diverging, and investor sentiment is becoming cautious.

Driven by the rebound of Bitcoin and mainstream cryptocurrencies, the performance of altcoins has also shown divergence. Some popular altcoins like Fartcoin and Pump.fun rose by 11.86% and 6.17% respectively, while others experienced declines.

Gate cryptocurrency market analysis shows that the Fear and Greed Index for cryptocurrencies has dropped to 30 points, indicating a “fear” phase, with investors exhibiting strong cautious sentiment. This is mainly due to concerns over the upcoming inflation data and uncertainties regarding regulatory policies.

Analysts point out that altcoins often lack practical use cases, exhibit significant price volatility, and carry higher investment risks. In the current market environment, investors should remain cautious and closely monitor changes in fundamental factors.

At the same time, some analysts believe that the extreme fluctuations of altcoins may signal the arrival of a new market cycle. In the past, altcoins have often been leading indicators of a bull market. If altcoins can stabilize and continue their upward trend, it will bring positive signals to the cryptocurrency market.

Overall, the performance of altcoins shows significant divergence, reflecting investors' cautious sentiment towards the future market. Investors need to remain highly vigilant about altcoins and closely monitor changes in fundamental factors to seize potential investment opportunities.

5. Bitcoin miner debt surged by 500%, hash rate wars may exacerbate volatility.

According to reports, Bitcoin miners' debts have surged by 500% over the past year, which may intensify the competition for hash power and trigger further fluctuations in Bitcoin prices.

The surge in miner debt is mainly due to two reasons: first, the continuous rise in Bitcoin mining difficulty, resulting in increasing operating costs for miners; second, the significant decline in Bitcoin prices in the second half of 2022, leading to a substantial reduction in miner earnings.

To maintain operations, miners have to obtain funds through means such as borrowing. However, if the price of Bitcoin cannot stabilize and rebound, miners will face the risk of being forced to shut down or sell their hashing power, which could trigger a hashing power war.

Analysts say that the hash rate war could exacerbate short-term fluctuations in Bitcoin prices. If a large amount of hash power is sold off, it will negatively impact the security of the Bitcoin network, thereby undermining investor confidence.

On the other hand, there is also the view that the hash power competition is beneficial for the long-term healthy development of the industry. Through survival of the fittest, Bitcoin mining will become more decentralized and specialized, which will help improve the overall security of the network.

Regardless, the issue of miner debt deserves close attention. Investors need to assess its potential impact on Bitcoin price trends and adjust their investment strategies accordingly to mitigate potential risks.

6. Cryptocurrency futures contracts explode in a frenzy, exchanges face liquidity crisis

As the cryptocurrency market continues to heat up, the trading volume of futures contracts has also experienced explosive growth. However, at the same time, some exchanges have encountered liquidity crises.

According to reports, during a recent wave of cryptocurrency sell-offs, the futures trading volume of a well-known exchange suddenly surged, leading the platform to face a severe liquidity shortage at one point. The exchange had to urgently suspend some contract trading to prevent further liquidity crises.

Analysts point out that the occurrence of this situation is due to the exchange's negligence in liquidity management. During periods of severe market fluctuations, exchanges should be adequately prepared in advance with sufficient liquidity to ensure the normal conduct of trading.

In addition, excessive leveraged trading is also an important cause of liquidity crises. Many investors engage in high-leverage trading on futures contracts, and once prices experience severe fluctuations, it can trigger a chain of liquidations, thereby exacerbating the liquidity shortage.

To prevent similar situations from happening again, exchanges need to strengthen the management of liquidity and limit excessive leveraged trading. At the same time, regulatory bodies should introduce corresponding policies to regulate futures contract trading and maintain market order.

Investors need to maintain sufficient risk awareness when participating in futures contract trading and reasonably control their leverage levels to reduce the risk of being forcibly liquidated.

7. The rise of decentralized cryptocurrency gambling platforms has led to an increase in trading activity.

Recently, the rise of decentralized gambling platforms in the cryptocurrency space has attracted market attention. Data shows that compared to traditional polls, these platforms can provide more accurate insights, and trading activity is continuously on the rise.

Analysts say that politics and sports events are the main drivers of increased trading activity on decentralized betting platforms. Investors can place bets on election outcomes, event results, and more on these platforms to earn profits.

Compared to traditional gambling platforms, decentralized gambling platforms have higher transparency and fairness. All transaction data is recorded on the blockchain and can be publicly accessed and audited. This helps eliminate manipulation and maintain market order.

On the other hand, decentralized gambling platforms also face some challenges, such as a lack of effective regulation and money laundering risks. Therefore, the introduction of relevant regulatory policies will be key to future development. Investors need to remain cautious and aware of risks when participating in such platforms.

3. Regulation & Policy

1. The two parties in the United States have reached a consensus on the cryptocurrency regulatory framework, which is expected to be approved by the end of the year.

Bipartisan lawmakers in the U.S. Congress have reached a consensus on a regulatory framework for cryptocurrencies, aimed at providing clear regulatory rules and investor protection for the digital asset market. The framework is expected to be approved by the end of 2025.

Background: With the rapid development of the cryptocurrency market, regulatory gaps have been a major challenge faced by the industry. The U.S. government has repeatedly stated that it will introduce a comprehensive regulatory framework to maintain market order and protect investors' rights. The consensus reached by both parties this time marks a significant progress in the regulatory process.

Policy content: According to the latest news, the regulatory framework will cover the following key areas:

• Clarify the legal status of cryptocurrencies, defining them as securities or commodities, and delineate regulatory responsibilities.
• Require cryptocurrency exchanges and service providers to obtain regulatory licenses and comply with anti-money laundering and investor protection regulations.
• Regulate the issuance and trading of encrypted derivatives and stablecoins to prevent systemic risks.
• Strengthen the regulation of market manipulation and fraudulent activities in the cryptocurrency market to maintain market fairness.

The framework is expected to officially come into effect by the end of 2025.

Market reaction: Industry insiders generally welcome this. Regulatory clarity helps attract more institutional funds into the crypto market and promotes the long-term healthy development of the industry. However, some are concerned that excessive regulation could stifle innovation.

Expert opinion: Former Chairman of the U.S. Commodity Futures Trading Commission Gary Gensler stated: “The introduction of a cryptocurrency regulatory framework will bring greater certainty to the industry, which is beneficial for attracting institutional investors. However, regulators need to balance innovation with risk management to avoid over-regulation.”

2. The Hong Kong Securities and Futures Commission defines the regulatory boundaries for virtual assets, compliance first and innovation follows.

The Hong Kong Securities and Futures Commission ( recently issued two regulatory updates regarding digital assets, outlining the regulatory boundaries for the virtual asset industry.

Background: As an international financial center, Hong Kong has been actively exploring the regulation of digital assets. The recent action by the Securities and Futures Commission aims to create a favorable environment for the virtual asset industry while mitigating related risks.

Policy Content:

1. The Securities and Futures Commission issued the “Supplementary Joint Circular Regarding the Activities of Intermediaries Related to Virtual Assets”, clarifying that the market must conduct virtual asset transactions through platforms recognized by the Securities and Futures Commission.
2. The China Securities Regulatory Commission has revised the “Licensing Handbook” to allow licensed institutions to provide virtual asset trading services to clients after obtaining approval from the regulatory authority.

The above policy will take effect from June 30, 2024. The Securities Regulatory Commission stated that it will continue to study the regulatory framework for virtual assets to create a favorable environment for industry development.

Market Reaction: Industry insiders generally believe that the Hong Kong Securities and Futures Commission's regulatory direction is reasonable and prudent, establishing a compliance baseline for the development of the virtual asset industry. However, there are also voices pointing out that overly strict regulation may affect Hong Kong's position as an innovation hub.

Expert Opinion: Hong Kong financial law expert Chen Jiayang stated: “The direction of regulation by the Securities and Futures Commission is clear, requiring virtual asset activities to be conducted in a regulated environment, which is beneficial for protecting investor rights and financial stability. However, regulatory agencies also need to maintain an open and inclusive attitude to leave room for innovation.”

) 3. The EU MiCAR regulatory framework will be implemented in phases and will come into full effect by the end of 2024.

The EU's landmark “Markets in Crypto-Assets Regulation” ### MiCAR ( will be implemented in phases, aiming to establish a unified regulatory framework for crypto assets.

Background: The regulation of crypto assets has been a key area of focus for the European Union. To unify the regulatory practices of member states, the EU officially launched the MiCAR regulatory framework in 2023.

Policy content:

• Starting from June 30, 2024, the terms related to stablecoins will officially take effect, including the issuance and regulatory requirements of asset reference token )ART( and electronic money token )EMT(.
• Starting from December 30, 2024, the remaining provisions regarding the licensing of crypto asset service providers, market manipulation prevention, and investor protection will come into full effect.

The main goal of MiCAR is to create an orderly and transparent environment for the crypto asset market while protecting investors' rights and preventing systemic risks.

Market reaction: Industry insiders generally believe that MiCAR brings regulatory certainty to the EU cryptocurrency market, which is beneficial for attracting institutional investors. However, some are concerned that overly strict regulations may impact innovation.

Expert Opinion: Hans van der Brug, President of the European Digital Finance Association, stated: “MiCAR sets unified rules for the EU crypto asset market, which will help maintain market order and protect investors' rights. However, regulators need to balance innovation with risk management to avoid overregulation.”