PA Daily | Lending platforms Jupiter and Kamino in internal conflict over risk disclosure; "China's No.1 GPU stock" Moore Threads co-founder Li Feng exposed for token fundraising and failing to repay borrowed tokens

Today’s Key News Alerts:

1. Next week’s macro outlook: The Fed’s highly controversial rate cut is approaching, gold enters a phase of wild volatility

2. South Korea plans legislation requiring virtual asset operators to assume “strict liability compensation” for hacker attacks

3. “China’s first GPU stock” Moore Threads co-founder Li Feng exposed for issuing tokens to raise money and failing to repay 1,500 BTC loan

4. Analyst: Bitcoin on-chain activity rising, demand remains positive, current cycle may not be over

5. Jupiter COO admits marketing for its lending product Jupiter Lend’s “zero contagion risk” is inaccurate

6. Binance responds to suspicions about timing of its official Twitter post and token listing, says internal review has begun

Macro

Next week’s macro outlook: The Fed’s highly controversial rate cut is approaching, gold enters a phase of wild volatility

As U.S. economic data such as ADP and PCE generally support expectations of a Fed rate cut next week, Wall Street’s panic has come and gone quickly, with investors returning to low-volatility, high-conviction bets on risk assets. The Fed’s rate decision will be the focus next week. After recent weak U.S. employment data, the market generally expects the Fed to lower rates. Here are the key points for the coming week:

Tuesday 0:00, US November NY Fed 1-Year Inflation Expectations;

Tuesday 23:00, US October JOLTs Job Openings;

Wednesday 3:00, Fed FOMC announces rate decision and Summary of Economic Projections; 3:30, Fed Chair Powell holds monetary policy press conference;

Thursday 21:30, US initial jobless claims for the week ending December 6, US September trade balance;

Friday 1:00, Fed releases U.S. household financial health data for Q3 2025;

Friday 21:00, 2026 FOMC voter, Philadelphia Fed President Patrick Harker speaks on economic outlook; 21:30, 2026 FOMC voter, Cleveland Fed President Loretta Mester speaks;

Friday 23:35, Chicago Fed President Austan Goolsbee participates in a host dialogue before the Chicago Fed’s 39th Annual Economic Outlook Symposium.

The Fed’s dot plot from September suggests two rate cuts in 2026. In contrast, the market currently expects 63 basis points of easing in 2026, implying a higher probability of three rate cuts next year.

Caixin: Last year 3,032 people prosecuted for crypto-related money laundering, building a virtual currency firewall requires protecting normal economic and trade activity

Caixin published “Building a Virtual Currency Firewall to Protect the Public’s Wallet,” noting: Recently, speculation in virtual currencies has risen, and building a firewall requires not only full cooperation from all departments but also improved regulations, enhanced supervision, stronger technical monitoring of key links, and protection of normal economic and trade activity. In 2024, authorities prosecuted 3,032 individuals for using “virtual currencies” to transfer criminal proceeds and other money laundering crimes. Many were drawn in due to lack of legal awareness. Academic analysis of 283 criminal verdicts for virtual currency money laundering found that criminal groups often exploit marginalized youth as tools, with high regional concentration and mostly high school education or below.

South Korea plans legislation requiring virtual asset operators to assume “strict liability compensation” for hacker attacks

The South Korean Financial Services Commission is considering a plan to add a clause to the “second phase of virtual asset legislation” requiring virtual asset operators to bear liability for damages in the event of hacking or computer incidents, even without fault. The plan aims to impose the same “strict liability for damages” on virtual asset exchanges as on financial firms. From 2023 to September 2025, the five major KRW exchanges (Upbit, Bithumb, Coinone, Korbit, and GOPAX) have had 20 computer system incidents.

In addition, there is a plan under discussion to increase fines for hacking incidents to the level stipulated by the Electronic Financial Transactions Act. The Korean National Assembly is reviewing an amendment to this Act that would fine financial institutions up to 3% of sales for being hacked. If passed, virtual asset operators may face similar fines. Currently, the maximum fine for virtual asset operators is KRW 5 billion.

The South Korean Financial Services Commission is considering a plan to add a clause to the “second phase of virtual asset legislation” requiring virtual asset operators to bear liability for damages in the event of hacking or computer incidents, even without fault. The plan aims to impose the same “strict liability for damages” on virtual asset exchanges as on financial firms. From 2023 to September 2025, the five major KRW exchanges (Upbit, Bithumb, Coinone, Korbit, and GOPAX) have had 20 computer system incidents.

In addition, there is a plan under discussion to increase fines for hacking incidents to the level stipulated by the Electronic Financial Transactions Act. The Korean National Assembly is reviewing an amendment to this Act that would fine financial institutions up to 3% of sales for being hacked. If passed, virtual asset operators may face similar fines. Currently, the maximum fine for virtual asset operators is KRW 5 billion.

Market news: French bank BPCE now allows customers to buy and sell cryptocurrencies

According to market sources, French bank BPCE now allows its customers to buy and sell cryptocurrencies.

Opinions

Vitalik: Need to build a trustless on-chain gas futures market

Vitalik Buterin posted on X that the industry urgently needs a “trustless on-chain gas futures market,” similar to a “prediction market on BASE FEE,” to address users’ uncertainty about future fee trends. An on-chain gas futures market would clarify expectations for future gas fees and even allow hedging future gas prices, effectively pre-paying a set amount of gas for a specific period.

Analysis: Bitcoin profit indicator drops to two-year low, may indicate a local bottom is forming

On-chain analytics platform CryptoQuant posted that Bitcoin’s SOPR ratio (LTH-SOPR / STH-SOPR) has dropped to 1.35, the lowest since early 2024. This drop coincided with Bitcoin’s price correction to $89,700. A high ratio usually indicates long-term holders (LTH) are taking more profits than short-term holders (STH). The plunge to 1.35 suggests the phase of massive distribution by old coins has significantly faded. The actual profit gap between veterans and newcomers is narrowing. This drop suggests a large-scale market “reset.” The speculative bubble that previously drove the ratio higher has been cleared.

Historically, when the SOPR ratio returns to such lows during a bull market cycle, it often signals that selling is nearly exhausted. If the ratio stabilizes or rebounds from 1.35, it may indicate a local bottom is forming, laying a stronger foundation for the next rally.

Bloomberg ETF analyst: Even if Bitcoin underperforms in 2025, occasional cooling is normal for assets

Bloomberg ETF analyst Eric Balchunas wrote that looking back at Bitcoin’s performance over the past year, it has only (so far) pulled back from last year’s extreme gains. It rose 122%, five times more than any other asset. Therefore, even if 2025 ends up flat or slightly down, as long as Bitcoin maintains a roughly 50% annualized return, it can still hold its value. Assets occasionally cool off, and stocks are no exception.

US SEC Chair: The entire financial system will turn to Bitcoin and crypto within a few years

According to market news: The chairman of the US Securities and Exchange Commission said in an interview that the entire financial system will turn to Bitcoin and cryptocurrencies within a few years. “This is the future of the world.”

Analyst: ETH holdings on CEXs drop to historic low of 8.8%, supply squeeze may drive prices higher

Analyst Milk Road posted that the amount of ETH held on centralized exchanges has dropped to an unprecedented low, possibly resulting in a supply squeeze. Glassnode data shows ETH holdings on exchanges are at 8.8%, the lowest since the network’s launch in mid-2015. Since early July, ETH on exchanges has dropped 43%, coinciding with a surge in digital asset treasury (DAT) purchases. In contrast, Bitcoin held on exchanges is higher at 14.7%.

Milk Road believes ETH is increasingly locked in hard-to-sell areas such as staking, restaking, L2 activities, DATs, collateral loops, and long-term custody, suggesting supply tightening may drive prices higher. “Market sentiment is currently weak, but sentiment doesn’t determine supply. ETH supply is quietly tightening, and the market is deciding the next move. When this gap disappears, prices will rise.”

Analyst: Bitcoin on-chain activity rising, demand remains positive, current cycle may not be over

Analyst @TXMCtrades posted on X that Bitcoin’s activity metric is rising, possibly indicating the current market cycle is not over. Activity is the sum of all on-chain lifecycle spending and holding. When tokens are net spent, activity rises; when tokens are held, activity drops, and this is adjusted based on token age.

In bull markets, activity usually rises as supply is transferred at higher prices, indicating new capital inflows. As demand weakens, momentum slows and the metric falls. It is similar to a long-term moving average of on-chain activity—an elegant indicator.

Despite price declines, activity has continued to rise in this cycle, suggesting spot Bitcoin demand has a bottom, which is not reflected in price action. While activity often lags price, so it is not a market signal per se, its momentum remains positive from this perspective. Some large entities are acting in the market, but their identities are unknown.

Nvidia CEO Jensen Huang: Bitcoin is absorbing surplus energy and storing it as a new currency

According to market news, Nvidia’s CEO Jensen Huang (from the $4.5 trillion company) stated, “Bitcoin is absorbing surplus energy and storing it as a new currency. You can carry it as you wish and take it anywhere.”

Solana Foundation President urges lending protocols to stop infighting and focus on growing the market

Solana Foundation President Lily Liu posted on X, urging lending protocols Kamino and Jupiter Lend in the ecosystem to stop attacking each other and focus on expanding the market. Liu noted Solana’s lending market is about $5 billion, Ethereum’s is 10 times larger, and the traditional finance collateral market is trillions of times bigger. Liu said: “We can attack each other (one-click position conversion, mocking comments, etc.), or we can focus on capturing market share from the entire crypto and TradFi markets.”

Previously, Jupiter Exchange COO Kash Dhanda responded to community concerns about its lending product Jupiter Lend, admitting that previous social posts about Jupiter Lend vaults being “zero contagion risk” were inaccurate. Solana lending platform Kamino, worried that Jupiter’s risk model might mislead users, blocked Jupiter Lend’s migration tool. Kamino’s co-founder also criticized Jupiter’s claim of vault isolation on X.

Project Updates

Jupiter COO admits marketing for its lending product Jupiter Lend’s “zero contagion risk” is inaccurate

Jupiter Exchange COO Kash Dhanda recently responded to community concerns about its lending product Jupiter Lend, admitting that previous deleted social media posts about Jupiter Lend vaults being “zero contagion risk” were inaccurate.

Some previous social media posts from Jupiter promoted that Jupiter Lend vaults had “isolated risk,” with one post saying that isolated vaults “mean there is no cross-infection between trading pairs, eliminating any contagion risk.” After the controversy, Jupiter deleted the post containing the latter statement. Dhanda said in a video posted on X: “These vaults are actually isolated.” But he also admitted that Jupiter Lend uses rehypothecated assets.

Last week, Solana lending platform Kamino, worried that Jupiter’s risk model might mislead users, blocked Jupiter Lend’s migration tool. Kamino’s co-founder also criticized Jupiter’s claim of vault isolation on X.

Aztec public sale ends, total subscription reaches 19,476 ETH, 16,741 users participated

Aztec announced on X that the AZTEC token public sale has ended, with total subscriptions reaching 19,476 ETH, 50% of which came from the Aztec community, with 16,741 users participating.

“China’s first GPU stock” Moore Threads co-founder Li Feng exposed for issuing tokens to raise money and failing to repay 1,500 BTC loan

Dubbed “China’s Nvidia,” Moore Threads debuted on the STAR Market on December 5 as “China’s first GPU stock,” opening at 650 RMB per share, up 468.78% from the IPO price of 114.28 RMB, with a total market cap over 300 billion RMB. The A-share market was ignited, with a single winning lot (500 shares) netting over 267,000 RMB, E Fund gaining nearly 1.9 billion RMB on paper, early investors like Tencent and ByteDance earning over 35x, and Peixian Qianyao achieving a 6,200x return. However, Moore Threads co-founder and Moore Academy dean Li Feng has been embroiled in crypto controversies.

Controversy over the “Malegebi” (MGD) project: In 2017, Li Feng, with crypto figures Li Xiaolai and Xue Manzi, launched this project as “the first modern performance art on blockchain,” raising 5,000 ETH via crowdfunding. The token allocation planned 10% reserved until 2100; the team’s background was packaged as “CEO, CTO, CFO, PhDs, returnees, investment bankers,” but most were fabricated. Despite this, MGD completed fundraising in a week. The project was soon renamed “Alpaca Coin MGD” after being questioned by authorities for its sensitive name.

Dispute with OKX founder Star over 1,500 BTC loan: In June 2018, Star publicly accused Li Feng of borrowing 1,500 BTC (worth about 80 million RMB at the time) and then refusing to return it, even “disappearing.” He posted loan contracts and video evidence, announcing legal action in China and the U.S. with asset preservation requests. In mid-2018, 1,500 BTC was worth about $10 million, now worth $135 million. Li Feng replied in group chat that the loan was actually Star’s investment in MGD, and as the project failed to launch, Star wanted his money back. Both sides have their arguments.

Star’s agreement shows, with Hu Zhibin as guarantor, Star and Li Feng renewed the BTC loan agreement. The “Bitcoin Loan Agreement” was first signed December 17, 2014, due December 16, 2016, but due to the borrower’s personal reasons, the loan was extended and a new agreement was signed March 30, 2017, extending the term to December 31, 2017.

Star responds to Moore Threads co-founder Li Feng debt dispute: debt issue left to the law, can’t stay in the shadow of negativity

OKX founder Star responded on X to the debt dispute with Moore Threads co-founder Li Feng: “One can’t remain in the shadow of past negativity forever. Look to the future, contribute positive energy. Let the law handle the debt issue. Wishing all entrepreneurs the best.”

Earlier, news broke that “China’s first GPU stock” Moore Threads co-founder Li Feng was exposed for issuing tokens to raise money and not repaying 1,500 BTC.

Binance responds to suspicions about timing of its official Twitter post and token listing, says internal review has begun

In response to allegations that “the Binance Twitter admin posted at 30 minutes, the token was listed at 29 minutes, and used the correct image,” Binance stated: “We are aware of the feedback and are conducting an internal review. We have zero tolerance for any listing-related or other corrupt behavior. Once the investigation is confirmed, we will report progress to the community immediately. Our reporting channels are open and transparent, and we welcome any clues about listing or other forms of corruption at any time.”

Key Data

Public miners’ average cash cost to mine one bitcoin reaches $74,600, total cost hits $137,800

According to CryptoRank, the average cash cost for public miners to mine one bitcoin has reached $74,600, with total costs including depreciation and SBC rising to $137,800.