9.1 AI Daily Changes in the Cryptocurrency Industry: From the Ethereum Foundation's Strategic Adjustment to Stricter Global Regulation. Headline 1. Ethereum Foundation Pauses Open Grant Applications to Focus on Long-Term PrioritiesThe Ethereum Foundation announced a pause in grant applications to redesign its funding strategy to focus on long-term priorities. The foundation has cut its annual financial expenditure from 15% to 5% to ensure the sustainability of its funds. This decision was made in response to the rapid development of the Ethereum ecosystem, as well as the growing demand for Foundation resources. The Foundation said that the suspension of applications will allow it to better focus its resources on supporting key projects and initiatives that are critical to Ethereum's long-term development. This move highlights the Ethereum Foundation's commitment to ensuring the sustainability of the ecosystem. As Ethereum's influence in the cryptocurrency space continues to expand, foundations need to prudently allocate limited resources to maximize the long-term growth of the network. Industry insiders believe that this decision reflects the Ethereum Foundation's commitment to the long-term vision of the ecosystem. By prioritizing long-term goals, the Foundation is expected to lay a solid foundation for Ethereum's continued innovation and growth. 2. Japan Post Bank plans to launch digital deposit currency DCJPY in 2026 Japan Post Bank, Japan's largest depository institution, plans to introduce a digital deposit currency based on DCJPY in fiscal 2026. The currency will be pegged 1:1 to the yen, allowing its approximately 120 million account holders to exchange savings for tokens, mainly for security token settlements and local government subsidy distributions. DCJPY is defined by regulators as a "tokenized deposit" and, unlike stablecoins, it runs on a permissioned blockchain and is managed by a regulated financial institution. This initiative aims to use blockchain technology to improve the efficiency and transparency of financial services. Analysts point out that the launch of DCJPY is a sign that traditional financial institutions in Japan are actively embracing digital transformation. By tokenizing deposits, Japan Post Bank is expected to streamline the transaction process, reduce operating costs, and provide customers with a more convenient financial service experience. However, some experts have expressed concern. They argue that while tokenized deposits are expected to improve efficiency, they may also introduce new risks, such as cybersecurity threats and regulatory challenges. Therefore, Japan Post Bank needs to take appropriate risk management measures to ensure the security and compliance of DCJPY. Overall, the launch of DCJPY reflects that the Japanese financial industry is actively exploring the application of blockchain technology to improve the quality and efficiency of services. But at the same time, there are also trade-offs between risks and benefits to ensure the orderly development of new technologies. 3. Swedish municipalities freeze 1.5 bitcoin ransom due to cyber attack Swedish municipalities were forced to freeze 1.5 bitcoin ( about $170,000 ) as a ransom due to a cyberattack on IT systems provider Miljödata. The hackers demand a ransom payment in exchange for not revealing sensitive information. The attack was discovered on Saturday, but efforts to assess the scope of impact were hampered by the heavily encrypted computers affected. 80% of Swedish municipalities rely on Miljödata, and an estimated total of 200 municipal and regional services are unavailable, including educational institutions and some private organizations. The incident highlighted the importance of cybersecurity for critical infrastructure. Swedish Civil Defence Minister Carl Oskar Bolin stressed the importance of cybersecurity and hinted that a new cybersecurity bill will be enacted to improve the security requirements of organizations. Analysts point out that while paying the ransom may be a stopgap solution to the immediate crisis, strengthening cyber defenses is the way forward in the long run. Cyberattacks not only cause financial losses, but can also jeopardize public safety and social functioning. As a result, governments and businesses need to invest more resources in improving cybersecurity, including enhancing staff training, upgrading systems, and adopting advanced security technologies. At the same time, there is a need to strengthen cross-border cooperation to combat cybercriminals. Overall, this incident is a wake-up call, reminding all sectors to pay attention to cybersecurity risks, take practical and effective measures to protect critical systems, and maintain stable operation of society. 4. World Liberty Financial will be listed, and the seed tag will be set According to the official announcement, World Liberty Financial(WLFI) will be listed on September 1 and open for spot trading, and the seed tag will be applicable to WLFI. WLFI is a cryptocurrency backed by the Trump family, and its launch has sparked widespread attention and fierce controversy. Proponents argue that the Trump family's involvement will bring wider recognition and influence to the WLFI. Critics, on the other hand, fear that WLFI could become a political tool that undermines the decentralized spirit of cryptocurrencies. The total issuance of WLFI is 80 billion, and the initial circulation is only 5%. This setup is designed to create scarcity, but it can also exacerbate price volatility. Analysts point out that WLFI's success will depend on its actual use case and community support. Seeding WLFI means that the platform will impose stricter regulation on it. This move is intended to protect the interests of investors, but it may also limit the scope for WLFI to grow. Overall, the launch of WLFI has once again sparked discussions about decentralization, regulation, and political influence in the cryptocurrency space. Its future development will be closely watched by all walks of life inside and outside the industry. 5. Ethereum developers proposed the ERC-8004 standard to promote the development of the AI proxy economyEthereum core developer Davide Clapis recently proposed a draft ERC-8004 standard, aiming to establish a unified interface for AI agents to discover each other, verify identities and conduct transactions on the chain. The proposal was even co-sponsored by the core employees of Google's Agent2Agent protocol. Developers predict that in the next 3-5 years, most of the traffic on Ethereum will come from machines, and AI agents will become the core user group of the network. To this end, they believe it is necessary to establish a unified standard to ensure that AI agents can interact with each other efficiently and securely. Proponents say Ethereum's payment channels, digital identity tools, and scalable, multi-layered architecture make it the most cost-effective infrastructure for AI-driven. With ERC-8004, Ethereum will further strengthen its competitiveness in the AI field. But there are also concerns about this. They argue that the AI proxy economy may introduce new security and privacy risks, requiring strict regulatory measures. At the same time, the widespread application of AI agents may also have an impact on human employment. Overall, the ERC-8004 standard reflects that the Ethereum ecosystem is actively embracing AI technology in preparation for the future AI economy. However, while promoting development, it is also necessary to weigh risks and ensure the healthy and orderly development of new technologies. 2. Industry News1. Will Bitcoin fall below $100,000 in September? XRP is poised to hit $3, a key resistance, and the total market capitalization of the cryptocurrency market remained at $3.78 trillion, despite a 26.71% drop in trading volume in a single day. Bitcoin is tentatively trading at $108,876, Ethereum is holding at $4,369, and XRP is trading sideways near $2.81. Technically, the three major currencies are facing key resistance tests, and September may trigger a breakthrough market or a deep pullback. Bitcoin is under pressure from an important support level near $107,000. Analysts note that a break from this position could lead to a further retest of the $106,000-$107,000 range. However, if it stabilizes and rebounds, it will need to regain its foothold at the $108,700 30-day moving average to restore the short-term trend. The trading volume was significantly amplified during the decline, indicating that the short selling pressure was heavier. As for Ethereum, the $4,865 resistance level is key. A break above this level will open the way to the $5,100 upside. However, if the $4,265 trend line support is broken, there may be a risk of retracement. JPMorgan Chase, BlackRock and other institutions are deploying Ethereum staking, and Wall Street adoption will be a key catalyst. XRP has recently entered a consolidation phase below $3. Technical analysis shows that although it fell below the $3 support level on August 28, the price is still above the key trend line. Analysts point out that XRP is building the basis for a new round of gains. The weekly chart shows that the lower band of the important "white zone" is well supported, and a break above $3.5 will open a long-term upward channel to $7, $11 or even $27. 2. Can PYTH rise after 100% explosion? Full analysis of bullish reasons and key risks in 2025-2026 Last week, the focus of the crypto market undoubtedly fell on Pyth Network (PYTH). The U.S. government announced that it would put economic data on the chain and chose PYTH as the deployment infrastructure, and as soon as the news came out, the price of PYTH soared by more than 100% intraday, hitting a record high, and the trading volume and derivatives market both exploded. Analysts believe that PYTH still has room for further upside in 2025-2026. First of all, as the official data on-chain infrastructure, PYTH will receive strong support from governments and institutions, and is expected to become an industry standard. Second, PYTH's decentralized oracle mechanism ensures data reliability and transparency, in line with regulatory requirements. In addition, the PYTH ecosystem is developing rapidly, including DeFi, derivatives and other applications are expected to drive token demand. But PYTH also comes with some risks. The first is the risk of increased competition, with other oracle projects potentially eating into market share. The second is regulatory risk, and policy changes may affect the development of PYTH. In addition, technical risks cannot be ignored, and any major vulnerabilities or hacks could shake market confidence. Overall, PYTH has long-term upside potential, relying on government support and technological advantages. However, investors also need to be alert to potential risks and look at price fluctuations rationally. 3. The Trump family's crypto project World Liberty Financial is caught in a $750 million revolving trading controversy! The World Liberty Financial (WLFI), a cryptocurrency issued by the Trump family, went live on major exchanges on September 1, but then fell into controversy. Some analysts pointed out that the circulating market value of WLFI is between $20 billion and $55 billion, but its initial circulation is only 5%, and there is a serious risk of deflation. According to some analysts, the WLFI team conducted a circular trading operation worth up to $750 million in the first 24 hours before the launch, artificially driving up the price of the token. This practice is alleged to be a typical "pre-sale speculation" behavior, which seriously harms the interests of investors. The WLFI team did not comment. However, some industry insiders said that as a political token, WLFI itself has great controversy and disagreement. The Trump family's direct involvement has made it a political narrative coin that has attracted strong support and sharp criticism. Analysts generally believe that WLFI's highly speculative and political overtones will pose a significant risk of price volatility. Investors need to be highly vigilant and rationally look at its long-term value. At the same time, it is necessary for the regulatory authorities to strengthen supervision and maintain market order. Overall, the launch of WLFI has brought new vitality to the cryptocurrency market, but it has also sparked a lot of controversy and questions. Investors need to be highly cautious, and market regulation should keep pace with the times. III. Project News1. The Solana Alpenglow proposal was approved, and the block finalization time was shortened to 150 milliseconds, and the Solana network's Alpenglow proposal (SIMD-0326) was officially approved by community voting. The core result of this upgrade is to reduce the network's deterministic block finalization time from about 12.8 seconds to the target range of 100-150 milliseconds. Alpenglow is not a simple parameter adjustment and optimization, but a reshaping of the consensus layer of the Solana network. The impact behind this is not only limited to performance improvements, but more importantly, it may have a full range of changes to Solana's consensus mechanism, economic model, and future development direction. In short, the far-reaching impact of this change will ripple through the entire ecosystem. Analysts believe that sub-millisecond finality will dramatically improve Solana's composability, paving the way for building complex decentralized finance applications. At the same time, the new economic model will also promote a more diversified ecosystem and attract more innovative projects to settle in. However, due to the intensity of change, the network may face some uncertainties in the short term, which needs to be closely monitored. 2. The Sui ecosystem continues to expand, Grayscale Trust and USDC go onlineThe Sui ecosystem continues to expand, and Grayscale Trust and USDC have been launched on the Sui mainnet. Grayscale Trust is the first institutional-grade trust product launched on Sui, marking Sui's access to the global institutional financial system. At the same time, the launch of USDC has also brought a native stablecoin to Sui, which will help attract more DeFi applications. As an emerging public chain using the Move language, Sui has attracted much attention since its release. Its innovative parallel execution engine and brand-new consensus mechanism are considered to be expected to break through the performance bottleneck of existing public chains. The addition of Grayscale Trust and USDC has undoubtedly further enhanced Sui's strength. According to industry analysts, Sui is moving towards becoming a true "app chain". The support of institutional-grade trust products and stablecoins has laid the foundation for Sui to attract traditional financial institutions and DeFi applications. In the future, Sui needs to continue to make efforts in ecological construction and application expansion to demonstrate its unique value. 3. IoTeX token IOTX was included in CF Benchmarks, which is expected to promote institutional demandIoTeX ecological token IOTX was officially included in CF Benchmarks on September 1, marking that IOTX has gained access to the global institutional financial system, has the potential for ETF and derivatives development, and is expected to further enhance market liquidity and global recognition. Since 2017, IoTeX has been working to bring trusted, real-time data of the physical world to AI systems and applications. At present, it has supported 100+ projects and 40 million+ devices, covering travel, robotics, energy, health and other fields. With partnerships with Google, Samsung, IEEE, ARM, and more, IoTeX is leading the trillion-dollar AI+ data economy. Analysts believe that the inclusion of IOTX in CF Benchmarks is an important milestone in the development of the IoTeX ecosystem. In the future, IOTX is expected to become the preferred tool for institutional investors to deploy the AI+ data economy. At the same time, as a highly decentralized digital asset, IOTX will also provide a new investment method for traditional financial institutions. However, there are also views that whether IOTX can really win the favor of institutions depends on the actual implementation of its ecological application. After all, institutional investors are more interested in the actual value and long-term prospects of a project. Economic dynamics1. The U.S. non-farm payrolls grew moderately in August, and inflationary pressures persisted, and the U.S. Labor Department's August non-farm payrolls data showed that the number of new jobs was 232,000, lower than the expected 350,000. The unemployment rate edged up to 3.7%, in line with market expectations. Despite the slowdown in job growth, the overall job market remains relatively tight. Economic Background: The U.S. economy experienced a strong recovery in the first half of the year, with GDP growth exceeding expectations. But inflationary pressures have also intensified, with the core PCE price index rising 4.6% year-on-year, well above the Fed's 2% target. In order to curb the rise in inflation, the Federal Reserve has raised interest rates by 5 percentage points since March last year. Key Events: Fed Chair Jerome Powell reiterated at the annual central bank meeting in August that interest rate hikes will continue until inflation falls to around 2%. The consensus expectation is for another 0.75 percentage point rate hike in September. The modest growth in the employment data may provide more policy space for the Fed. Market reaction: Investors' reactions to the employment data were divergent. On the one hand, slowing job growth means that the economy may be cooling, easing inflationary pressures. On the other hand, the job market remains tight, and the Fed is likely to continue to raise interest rates aggressively to dampen demand. The stock and bond markets were volatile. Expert analysis: Goldman Sachs chief economist Jan Hatzius said that despite the slowdown in job growth, the labor market is still too tight. He expects the Fed to end its rate hike cycle in November, but rates are likely to remain above 4%. JPMorgan Chase economist Michael Feroli believes that the job market is gradually cooling, and the Fed may end raising interest rates within the year. 2. The European Central Bank raised interest rates by 0.75 percentage points, the largest single rate hike in 20 yearsThe European Central Bank decided to raise interest rates by 0.75 percentage points at its September monetary policy meeting, raising the benchmark interest rate to 1.25%, the first rate hike since 2011 and the largest single rate hike in 20 years. The move is aimed at curbing stubbornly high inflationary pressures in the eurozone. Economic background: Eurozone inflation hit a high of 9.1% in August, well above the ECB's 2% target. Factors such as soaring energy prices, supply chain disruptions, and the Russia-Ukraine conflict have all exacerbated inflationary pressures. At the same time, economic growth in the eurozone is slowing, with GDP growing by only 0.6% in the second quarter. Important events: ECB President Christine Lagarde said at a press conference that "decisive action" will be taken to suppress inflation expectations and signaled that aggressive interest rate hikes will continue in the coming months. She also warned that Europe could fall into recession if inflation continues to rise. Market reaction: EUR/USD rebounded slightly after the European Central Bank (ECB) raised interest rates. However, investors' concerns about the outlook for the European economy remained heavy, and European stock markets fell. The bond yield curve inverts further, signaling a heightened risk of a recession. Expert opinion: David Folkerts-Landau, chief eurozone economist at Commerzbank, said that the ECB raised interest rates more aggressively than expected, showing its determination to fight inflation. But he warned that overly aggressive monetary policy could tip the eurozone economy into recession. Goldman Sachs believes that the European Central Bank may raise interest rates to more than 2% in the future. 3. Britain's new prime minister says he will launch a massive tax cut plan to help the economy recoverThe new British prime minister, Liz Truss, announced in his first important speech after taking office that a massive tax cut plan will be launched to stimulate economic growth, attract investment and help households and businesses tide over the current cost-of-living crisis. Economic background: The UK economy is facing the worst inflationary pressure in 40 years, with inflation reaching 9.9% in August. At the same time, the UK economy is also slowing, with GDP falling 0.1% QoQ in the second quarter. The Bank of England has raised interest rates six times in a row to curb inflation. Important events: In her speech, Truss promised to unveil a "decisive" tax cut plan in the coming weeks, including the elimination of corporate income tax and national insurance contributions raised during the late Prime Minister Boris Johnson. She also hinted at more tax cuts to stimulate investment and economic growth. Market reaction: Truss's promise of tax cuts caused the pound to rebound sharply. But investors have questioned the viability of its plan, fearing that tax cuts could further push up inflationary pressures. UK bond yields surged, reflecting rising expectations for future interest rate hikes. Expert analysis: Kim Fowler, former governor of the Bank of England, denounced Truss's tax cut plan as "very irresponsible", which will further push up inflation and increase the pressure on the central bank to raise interest rates. James North, chief UK economist at Standard Chartered Bank, believes that although tax cuts can help boost the economy, they need to be matched with spending cuts to control the fiscal deficit. V. Regulation & Policy 1. Nobel laureate in economics warns of inadequate regulation of stablecoins or trigger government bailouts: Stablecoins have grown rapidly in recent years as a bridge between cryptocurrencies and the traditional financial system, but their regulatory policies have been controversial. Nobel laureate economist Jean Tirole (Jean Tirole) recently issued a warning on the regulation of stablecoins, which has attracted the attention of the industry. Winner of the 2014 Nobel Prize in Economic Sciences, Tirolet has a strong reputation in the field of monetary policy and financial regulation. Policy content: Tiroler said in an interview that he is "very, very concerned" about the regulation of stablecoins and the potential run on depositors if doubts arise about the underlying reserve assets linked to these digital tokens. He warned that there is currently "insufficient regulation" of stablecoins and that the government could be forced to provide billions of dollars in bailouts if these tokens collapse in a future financial crisis. Market reaction: Stablecoin issuers and crypto exchanges are concerned. They argue that overly restrictive regulation can stifle innovation, but that a regulatory vacuum also poses systemic risk. Industry insiders have called for a clear and reasonable regulatory framework to create a favorable environment for the development of stablecoins while protecting the rights and interests of investors. Expert analysis: Cryptocurrency analyst Nic Carter said that there is indeed a lack of regulation of stablecoins, but it should not be equated with traditional banking. He believes that stablecoin issuers should follow prudent reserve management and be audited by a third party to ensure full transparency. At the same time, regulators need to set practical rules, not just restrictions. 2. Japan Post Bank plans to launch digital deposit currency DCJPY Background: As Japan's largest depository institution, Japan Post Bank (Japan Post Bank) plans to introduce DCJPY, a digital deposit currency based on blockchain technology. The move is aimed at improving the efficiency of financial infrastructure, attracting younger users, and potentially intensifying competition in Japan's fintech industry. The Japanese government has continued to make progress in the regulation of stablecoins and cryptoassets in recent years. Policy content: Japan Post Bank reportedly expects to allow its approximately 120 million account holders to exchange savings for DCJPY tokens starting in fiscal 2026. The currency will be pegged 1:1 to the Japanese yen and will be mainly used for security token settlements and local government subsidy distribution. DCJPY is defined by regulators as a "tokenized deposit" and, unlike stablecoins, it runs on a permissioned blockchain and is managed by a regulated financial institution. Market reaction: This move has sparked heated discussions in industry insiders. Proponents argue that DCJPY can help improve the efficiency of financial services, reduce costs, and provide more financial options for Japanese residents. But there are also concerns that this could intensify homogeneous competition in the banking sector and bring new challenges to regulation. Expert Opinion: Fintech experts noted that DCJPY represents an important step in the digitalization journey of the Bank of Japan and regulators. It not only contributes to the innovation and transformation of the banking industry, but also lays the foundation for the issuance of future central bank digital currency (CBDC). At the same time, however, institutions need to pay close attention to potential financial stability risks. 3. Background of the Hong Kong Monetary Authority's implementation of the regulatory framework for stablecoins in October: As an international financial center, Hong Kong has been actively exploring the regulation of digital assets. The Hong Kong Monetary Authority ( the HKMA ) recently held a meeting on the regulation of stablecoins to discuss relevant guidelines and licensing mechanisms, which attracted market attention. Stablecoins are seen as a key link between cryptocurrencies and the traditional financial system, and their regulatory policies have attracted much attention. Policy content: It is reported that the HKMA held a meeting on stablecoin regulation at the end of last month and discussed five major themes, including stablecoin guidelines, licensing mechanism, ecosystem collaboration, and the establishment of a task force. The meeting focuses on compliance requirements such as KYB( know your business ) and KYC( know your customer ). A number of institutions, including Ant Group and the Hong Kong Stock Exchange, attended the meeting. It is expected that the regulatory framework for stablecoins will be officially implemented in October this year. Market reaction: Industry insiders have had mixed reactions. Proponents believe that a clear regulatory framework will create a favorable environment for the development of stablecoins and boost investor confidence. But there are also concerns that overly strict regulations will stifle innovation and inhibit Hong Kong's development as a fintech hub. Expert analysis: Hong Kong financial law experts say that stablecoin regulation needs to find a balance between investor protection, financial stability and innovative development. He suggested that regulation should follow the principle of "same industry and same regulations", set unified standards for stablecoin issuers and traditional financial institutions, and create a level playing field.
