4.11 AI Daily Report: The Transformation of the Crypto Assets Industry under the AI Wave

1. Headline

OpenAI accelerates the release of new models, significantly shortening AI testing time and raising safety concerns.

When OpenAI launched its new large language model, it drastically reduced the time and resources used to test the model's security. Staff and third-party teams have only had a few days to "evaluate" the latest models compared to a few months ago. This has raised concerns about the hasty rollout of its technology without adequate safeguards.

OpenAI is facing pressure to rapidly release new models and maintain a competitive edge. However, haste may lead to pitfalls. Some insiders have revealed that the testing process has become less thorough, with insufficient time and resources dedicated to identifying and mitigating risks.

Industry insiders point out that the security of AI systems is crucial and requires comprehensive and rigorous testing. Rushing to launch could lead to unpredictable consequences, such as models outputting harmful content or exhibiting biases. Some experts have called for AI companies to be given adequate time and resources for testing to ensure the safety and reliability of new technologies and to avoid irreparable losses.

2. The US SEC issues new guidelines for the disclosure of cryptocurrency asset securities, requiring the submission of smart contract code.

The U.S. Securities and Exchange Commission ( SEC ) has released a new employee disclosure statement, providing specific guidance on the issuance of securities in the cryptocurrency market. The statement requires issuers to provide clear and comprehensive information covering business descriptions, risk factors, technical architecture, and other content to ensure that investors fully understand the nature and risks associated with the assets.

It is worth noting that the SEC has specifically requested the submission of code related to encrypted assets involved in smart contract coding, and regular updates. This is the first time the SEC has made explicit requirements regarding code disclosure, reflecting the regulatory body's emphasis on code transparency and review.

Industry insiders believe that this move is beneficial for improving the effectiveness of regulation. Smart contract code is crucial to the operation of crypto assets; if there are vulnerabilities or improper designs, it may lead to significant losses for investors. Timely disclosure of code helps regulatory agencies to identify potential risks promptly and maintain market stability.

However, there are also views that the code disclosure requirements may increase compliance costs and workloads for companies. Some startups may find it difficult to meet the requirements, which could affect innovative development. How to seek a balance between regulation and innovation still needs further exploration.

3. Trump signs bill to repeal IRS rules on decentralized finance

President Trump of the United States signed a law that repealed the IRS regulations on decentralized finance, marking the president's first formal involvement in this matter. The bill excludes requirements to report user transaction data and is seen as a pro-crypto stance.

Industry insiders generally welcomed the adoption of the resolution. They believe that this shows the Trump administration's support for cryptocurrency innovation and is conducive to the development of the industry. At the same time, protecting user privacy is one of the core concepts of cryptocurrency, and this helps to maintain this philosophy.

However, there are also views that excessive relaxation of regulations may bring new risks. Without effective supervision, cryptocurrencies may be used for illegal activities, impacting the stability of the entire financial system. Therefore, while promoting innovation, it is also necessary to establish a reasonable regulatory framework to prevent systemic risks.

Overall, Trump's move is seen as a support for the cryptocurrency industry, but how to strike a balance between innovation and regulation still requires in-depth discussion.

( 4. North Carolina Propose: Allow taxes on crypto assets, but set stringent standards

North Carolina legislators submitted the "Digital Asset Freedom Act," proposing to allow residents to pay taxes and other economic affairs with qualifying cryptocurrencies. However, the bill sets strict standards for qualified assets, requiring a market capitalization of at least $750 billion, a daily trading volume of $10 billion, a 10-year market operating record, and must possess censorship resistance and decentralization attributes.

The proposal has sparked heated discussions. Supporters believe that accepting cryptocurrency for tax payments will help attract crypto businesses to settle in the area and promote local economic development. At the same time, strict standards can ensure that only mature and secure cryptocurrencies are accepted, mitigating risks.

But there are also criticisms that the standards are too restrictive and effectively exclude the vast majority of crypto assets. This could limit residents' options and hit the growth of the local crypto industry. In addition, some have questioned whether the use of crypto assets for tax purposes should be allowed, as their prices are volatile and could affect the stability of the tax.

In any case, this proposal reflects that regulators are exploring the legalization of crypto assets while also weighing the risks and benefits. How to strike a balance between innovation and prudence still requires further discussion.

) 5. The Ethereum Foundation has transferred out another 1000 ETH, which may be used for ecological funding.

According to on-chain analysts, the Ethereum Foundation has transferred 1000 ETH###, approximately $1.53 million###, again, possibly for funding ecological grant projects.

The Ethereum Foundation, as a non-profit organization, has been providing funding support for the development of the Ethereum ecosystem. Previously, the foundation has also transferred ETH multiple times to fund developer communities, research institutions, and more.

Insiders believe that the foundation's move is beneficial for promoting continuous innovation within the Ethereum ecosystem. By funding outstanding projects, it can attract more talent to join, drive technological advancement, and thereby enhance Ethereum's competitiveness.

However, there are also views that the foundation should operate in a more transparent manner, providing detailed explanations of the use of funds and accepting community supervision. After all, this funding comes from the entire ecosystem, and the direction and effectiveness of the funding are related to the long-term development of Ethereum.

Overall, the funding activities of the Ethereum Foundation reflect its emphasis on ecological development. However, how to balance the efficiency and transparency of fund usage still needs further improvement.

2. Industry Data

( 1. BTC Last traded at 81630.6000 USDT, up +5.00% during the day.

) 2. ETH Recent transaction price 1596.5300 USDT, daily increase +7.60%.

3. XRP

Recent transaction price 1.9922 USDT, intraday increase +8.60%.

4. SOL

Last traded at 114.8400 USDT, up +6.80% during the day.

5. GT

Recent trading price 21.9250 USDT, daily increase +4.20%.

3. Industry News

1. Bitcoin is under short-term pressure, but the long-term outlook remains bullish.

The price of Bitcoin fell on April 11, hitting an intraday low of $79,000. This adjustment was mainly affected by the increase in global trade tensions. The Trump administration's announcement of 90-day tariffs on all countries has sparked fears of slowing economic growth and rising risk aversion. Bitcoin, as a risky asset, will inevitably be hit in the short term.

However, in the long term, the fundamentals of Bitcoin remain strong. Analysts point out that Bitcoin, as a scarce asset, has a unique advantage in an inflationary environment. With global central banks continuing their easing policies, Bitcoin is expected to become an ideal choice for hedging against inflation. In addition, the continuous influx of institutional investors also injects momentum into the long-term price increase of Bitcoin.

Exchange data shows that although short-term volatility has intensified, Bitcoin trading volume has not seen a significant decline, reflecting that investor confidence remains intact. Analysts expect Bitcoin to fluctuate around $80,000 in the short term, but the long-term bullish trend remains unchanged.

2. Ethereum faces a sell-off, but the fundamentals remain strong.

The price of Ethereum experienced a sharp decline on April 11, briefly falling below the $1500 mark during the day. This drop was mainly influenced by the escalation of global trade tensions. The Trump administration announced tariffs on all countries for 90 days, raising concerns in the market about economic growth prospects, increasing safe-haven sentiment, and leading to a sell-off in the cryptocurrency market.

Despite facing pressure in the short term, Ethereum's fundamentals remain strong. Analysts point out that as the largest smart contract platform in the cryptocurrency space, Ethereum's application scenarios are continuously expanding, and its ecosystem is developing sustainably. With the advancement of Ethereum 2.0, the network's scalability and efficiency will be significantly improved, laying the foundation for long-term price increases.

Exchange data shows that despite increased short-term volatility, Ethereum trading volume has not seen a significant decline, indicating that investor confidence has not yet wavered. Analysts expect that Ethereum may fluctuate around $1,500 in the short term, but the long-term bullish trend will not change.

3. The Solana ecosystem continues to heat up, and the SOL price is expected to break through 200 dollars in the short term.

The Solana ecosystem continues to heat up, with the SOL price performing strongly on April 11, reaching a daily high of $185. Despite the escalating tensions in global trade, the development momentum of the Solana ecosystem has not been affected.

Analysts point out that the continuous warming of the Solana ecosystem is mainly due to its advantages of high performance and low transaction fees. As more and more DeFi, NFT, and GameFi projects settle on Solana, the ecosystem continues to grow, injecting momentum into the rise of SOL prices. In addition, the Solana Foundation's continued investment in supporting ecosystem construction also provides strong support for ecological development.

Exchange data shows that SOL trading volume surged on April 11, reflecting investors' growing enthusiasm for the Solana ecosystem. Analysts expect that if the development momentum of the Solana ecosystem continues, the SOL price is likely to break through the $200 mark in the short term.

4. AI cryptocurrencies continue to strengthen, with tensor leading the gains.

On April 11, AI cryptocurrencies performed remarkably, with tensor###TAO### rising by as much as 15%, leading the entire cryptocurrency market. This surge was mainly influenced by the ongoing speculation surrounding AI concepts.

Analysts point out that with the explosive popularity of AI applications like ChatGPT, investors' enthusiasm for AI cryptocurrencies continues to rise. As a representative project of AI cryptocurrencies, tensor's price is naturally favored by capital. In addition, the latest roadmap released by the tensor team has also injected momentum for the price increase.

Exchange data shows that the trading volume of tensor experienced a significant increase on April 11, reflecting the growing enthusiasm of investors for AI cryptocurrencies. Analysts expect that if the AI concept continues to be hyped, the prices of AI cryptocurrencies like tensor may rise further. However, caution is also needed regarding bubble risks.

4. Project News

( 1. Plastic Labs completed a $5.35 million Pre-Seed funding round and launched the AI identity solution Honcho.

Plastic Labs is a startup focused on solving personal identity issues for artificial intelligence. Recently, the company announced the completion of a $5.35 million Pre-Seed funding round, led by institutions such as Variant, White Star Capital, and Betaworks, with participation from Mozilla Ventures, Greycroft, and others.

Plastic Labs has officially launched early access to its AI platform, Honcho. Honcho is designed to simplify personalization in interactions, enabling developers to create adaptable large language models )LLM### applications without the need for complex infrastructure. The platform combines flexible memory, real-time user insights, and natural language APIs to provide the right context for every inference.

The launch of Honcho is expected to promote the application of artificial intelligence in the fields of personal identification and privacy protection. By providing a personalized AI interaction experience, users can manage and control their digital identity more securely and conveniently. The new round of financing will be used to recruit talent, drive growth, and provide the computing power necessary to realize Honcho's complete vision.

Analysts believe that Plastic Labs has given a new mission to artificial intelligence, which is to solve the long-standing identity and privacy issues that have troubled the industry. The emergence of the Honcho platform is expected to promote innovative applications of AI technology in areas such as privacy computing and digital identity management, providing new solutions for individual data sovereignty in the We era.

( 2. Sui blockchain launches decentralized key management solution SEAL

Mysten Labs has launched a decentralized key management solution called SEAL, aimed at meeting the security encryption and access control needs of the We ecosystem. SEAL provides developers with flexible and diverse application scenarios through its technological architecture, including on-chain access control, threshold encryption, client-side encryption, and storage independence, such as content payment, private message transmission, NFT trading, and storage of users' sensitive information.

The core advantage of SEAL lies in its excellent developer experience, which reduces integration difficulties. In the future, SEAL will also support multi-party secure computation )MPC###, server-side decryption, and digital rights management, further expanding its application boundaries in the field of data security.

The launch of SEAL is expected to inject new vitality into the Sui ecosystem. As a decentralized key management infrastructure, SEAL can provide secure and reliable encryption services for DApps on Sui, promoting the development of innovative applications such as privacy computing and digital asset management.

According to industry analysts, key management is the cornerstone of We security, and SEAL brings a new level of security to the Sui ecosystem. In the We era, how to balance decentralization, privacy protection and usability has always been a difficult problem for the industry, and the emergence of SEAL provides a new idea to solve this problem. In the future, SEAL may become an important tool for the Sui ecosystem to attract developers.

( 3. Holoworld AI announces future plans to launch an agent skill market supported by MCP.

Holoworld AI is a We project focused on AI agent development. Recently, the project announced its future development plans, which include launching an agent skill marketplace supported by MCP, on-chain tool integration, building a transparent fundraising system for agent developers, and launching Agent Studio V2, which supports 3D models and agent live streaming features.

The agency skill market will allow developers to publish and trade AI agent skills on the chain, providing new business models for agent development. The transparent fundraising system aims to provide developers with fair and decentralized financing channels. The upgrade of Agent Studio V2 will also provide more creative tools and features for agent development.

The series of plans from Holoworld AI demonstrates the project's ambition to promote the popularization of AI agents in the We era. By building a complete ecosystem for the development and trading of AI agents, Holoworld AI is expected to enable more users to conveniently access and utilize AI agent services.

Analysts believe that AI agents are expected to become a new type of internet application in the We era, and Holoworld AI provides strong support for the realization of this vision. In the future, AI agents may become as popular as mobile apps, providing users with personalized intelligent assistant services. The innovations of Holoworld AI are expected to promote the prosperous development of the AI agent ecosystem.

) 4. The Sui ecosystem's first decentralized exchange, Anon Exchange, has launched its testnet.

Anon Exchange is the first decentralized exchange in the Sui ecosystem. Recently, this exchange launched its testnet. As a fully decentralized exchange, Anon Exchange adopts an innovative trading model that utilizes cryptographic techniques such as ring signatures and zero-knowledge proofs to achieve a high level of privacy protection for on-chain assets.

On the Anon exchange, users can trade digital assets freely without revealing their identities, effectively avoiding the risk of on-chain transaction activities being tracked. At the same time, the exchange also supports highly composable decentralized finance applications, bringing new innovative vitality to the Sui ecosystem.

The launch of the testnet for the Anon exchange marks a significant step forward for the Sui ecosystem in advancing its core principles of privacy protection and decentralized finance. In the future, the Sui ecosystem may become an important stronghold for privacy computing and DeFi innovation.

Industry analysts say that privacy protection is a key value proposition for We, and the Anon exchange has injected a new privacy computing capability into the Sui ecosystem. In the Web2 era, users' digital activities and assets often lack sufficient privacy protection, and the emergence of the Anon exchange may bring a brand new privacy experience to the We era.

Overall, the launch of the test network for the Anon exchange marks the Sui ecosystem's progress towards the two core concepts of privacy protection and decentralized finance, and this innovation may bring profound impacts to the entire industry.

5. Economic Dynamics

1. U.S. March CPI data unexpectedly declined, tariff policies raised inflation concerns.

Economic Background: The U.S. economy showed signs of recovery in early 2023, but inflationary pressures remain high. March CPI data showed that the U.S. inflation rate unexpectedly fell by 0.1% month-on-month, marking the first decline in nearly five years, with an annual rate of 5.2%, below market expectations. Nevertheless, the core inflation rate remains above the Federal Reserve's target level of 2%. The labor market remains robust, with the unemployment rate staying at a low of 3.6%.

Important event: The Trump administration recently announced the restoration of global tariff policies, imposing high tariffs on imported goods. This measure aims to protect American industries and jobs, but it has also raised concerns about inflation and economic recession. Tariffs may lead to increased prices for consumer goods, exacerbating inflationary pressures. Meanwhile, the escalation of the trade war may also affect global supply chains, disrupting economic operations.

Market reaction: Financial markets reacted sharply to the tariff policy. The stock market plummeted significantly, with the S&P 500 index plunging 6.3% in a single day, marking the largest decline since 2008. Bond yields soared, and the dollar exchange rate experienced considerable fluctuations. Investors are concerned that trade tensions will severely impact economic growth prospects. However, safe-haven assets like gold have gained popularity, reflecting market worries about inflation and economic recession.

Expert Opinion: Former Treasury Secretary Yellen criticized Trump's tariff policy as the "most serious act of self-harm," which could lead the U.S. economy into recession. She pointed out that tariffs would increase ordinary families' expenses by about $4,000 per year, weakening purchasing power. JPMorgan's Chief Strategist Kelly also warned that if the policy continues, the U.S. economy could face a recession within the year. However, some analysts believe that the short-term impact of tariffs on inflation may be limited.

6. Regulation & Policy

1. The Japan Financial Services Agency has proposed to classify crypto assets into two categories and is seeking public opinion.

On April 10, the Japan Financial Services Agency released a regulatory discussion paper proposing to categorize crypto assets into two types: "financing/commercial" and "non-financing/non-commercial." The former includes tokens used for fundraising, while the latter includes Bitcoin, Ethereum, and others.

The agency is seeking public opinions on issues such as information disclosure, staking rules, and market access, with a deadline of May 10. This initiative aims to promote a clearer and tiered regulatory system to create a favorable environment for Japan's cryptocurrency industry.

The discussion document points out that as the trading activity of crypto assets continues to increase, the existing regulatory framework can no longer fully cover emerging business models. The financial bureau hopes to gather public opinions to understand industry demands and formulate practical regulatory measures.

Industry insiders welcome this. The head of Cointelegraph's Japan branch stated that classified regulation is beneficial for distinguishing the nature and use of different crypto assets, creating conditions for healthy industry development. However, some argue that overly strict regulation may stifle innovation, and a balance needs to be sought between protecting investors and promoting development.

2. The U.S. Securities and Exchange Commission has released guidelines for the disclosure of securities related to crypto assets.

The U.S. Securities and Exchange Commission ### SEC ### issued a statement providing specific guidance on the issuance of securities in the cryptocurrency asset market. The statement requires issuers to provide clear and complete information covering business descriptions, risk factors, technical architecture, and other content to ensure that investors fully understand the nature and risks of the assets involved.

Special requirements to submit codes related to encrypted assets involving smart contract coding and to update them regularly. This initiative aims to enhance regulatory transparency and maintain market order.

The head of the finance department at the SEC stated that this guidance is one of the efforts by the SEC to clarify how federal securities laws apply to crypto assets, which will lay the foundation for future work.

The cryptocurrency industry has reacted differently to this. The well-known investment firm Polychain Capital believes that this guidance helps lay the foundation for compliant issuance and promotes innovative development. However, some argue that overly strict disclosure requirements may increase the burden on companies and stifle innovation.

( 3. The Attorney General of New York State sent a letter to Congress, urging the promotion of the digital asset regulatory framework.

New York Attorney General Letitia James) sent a letter to congressional leaders on April 8, calling for stronger federal regulation of crypto assets and explicitly opposing allowing U.S. pensions to invest in cryptocurrencies and related ETFs.

She pointed out that the prices of crypto assets are highly volatile and lack predictable intrinsic value, making them unsuitable as long-term savings tools, and stated that they pose multiple risks to national security and financial stability. In addition, she suggested that Congress legislate to require stablecoin issuers to have a U.S. regulatory background and ensure that they are backed one-to-one by U.S. dollars or Treasury bonds.

James's stance has sparked heated discussions within the industry. The CEO of cryptocurrency investment firm Grayscale stated that this call lacks factual basis, emphasizing that crypto assets hold significant investment value as an emerging asset class. However, some argue that the regulatory vacuum does pose risks to investor rights, making it necessary to establish a comprehensive regulatory framework.

Experts say that as the influence of crypto assets continues to grow, calls for regulation are becoming increasingly strong. The future direction of regulation will have a profound impact on the development of the industry, and stakeholders need to reach a consensus to seek a balance between protecting investors and promoting innovation.