11.5 AI Daily The crypto market turmoil intensifies, as the tug-of-war between regulation and innovation heats up.

1. Headlines

1. Bitcoin has fallen below the $100,000 mark, triggering severe market fluctuations.

Bitcoin fell below the key psychological support level of $100,000 on November 5. This significant breakthrough triggered intense volatility in the cryptocurrency market. Bitcoin dropped over 5% in just 24 hours, briefly falling to around $98,000. Meanwhile, other major cryptocurrencies also experienced significant declines.

The decline of Bitcoin is mainly influenced by the macroeconomic environment. With U.S. inflation remaining high, the Federal Reserve may continue to raise interest rates to curb inflation, which has intensified investors' concerns about risk assets. In addition, the significant drop in U.S. stocks on Tuesday, with the Nasdaq index falling 2%, has also put pressure on the cryptocurrency market.

Analysts point out that Bitcoin falling below the $100,000 mark could trigger further sell-offs. Some investors may choose to exit the market, leading to liquidity depletion. However, there are also analyses suggesting that this could be an opportunity for long-term investors to accumulate.

The decline of Bitcoin has also affected other crypto assets. Ethereum dropped over 6%, falling below $3000. The total cryptocurrency market cap evaporated nearly $200 billion within 24 hours. This extreme volatility once again highlights the high-risk nature of the cryptocurrency market.

2. Franklin Templeton strongly promotes XRP spot ETF, expected to be approved this month.

The globally renowned asset management company Franklin Templeton ( is accelerating the listing process of its XRP spot ETF. The company recently submitted an updated prospectus to the U.S. Securities and Exchange Commission, simplifying the relevant terms and is expected to be approved for listing within this month.

Franklin Templeton's move is seen as a positive outlook on the long-term prospects of XRP. As one of the major cryptocurrencies, XRP has broad application potential in cross-border payments and financial infrastructure. Franklin Templeton aims to provide investors with a channel to participate in XRP investments through ETF products.

Analysts believe that Franklin Templeton's launch of the XRP ETF will provide institutional investors with more investment options. As a traditional investment tool, ETFs can lower the barriers to entry, attracting more capital into the cryptocurrency market. At the same time, some analysts point out that the launch of ETF products may increase the price volatility of XRP.

The approval of the XRP spot ETF will also pave the way for other cryptocurrency ETF products. Currently, the U.S. has not approved any spot cryptocurrency ETFs for trading. Franklin Templeton's attempt may push regulators to further relax the approval process for cryptocurrency ETFs.

) 3. Chainlink ecosystem expands again, institutional-level on-chain applications accelerate landing

The blockchain oracle and decentralized computing network Chainlink recently announced several major upgrades, and its ecosystem continues to expand. These upgrades aim to accelerate the implementation of institutional-level on-chain applications and promote the integration of the crypto economy with the traditional financial system.

Chainlink first announced that its Cross-System Runtime Environment platform, CRE, is officially launched. CRE helps developers integrate multiple chains, multiple oracles, multiple data sources, and compliance systems into a single efficient workflow, simplifying the construction process of complex on-chain applications.

In addition, Chainlink has also collaborated with several institutions to utilize CRE and the automated compliance engine ACE for pilot projects in areas such as tokenized funds, stablecoin issuance, and cross-chain asset circulation. Partners include UBS, the Central Bank of Brazil, and the Hong Kong Monetary Authority.

Analysts point out that Chainlink's latest developments mark a significant acceleration in the deployment of institutional-grade on-chain applications. Traditional financial institutions are gradually accepting and integrating blockchain technology to improve operational efficiency and reduce compliance costs. Chainlink provides a reliable bridge for institutions, helping to speed up the integration of the crypto economy with the traditional financial system.

However, some analyses believe that the implementation of institutional-level applications still faces many challenges, such as regulatory uncertainty and system compatibility. Chainlink needs to continuously optimize its technical solutions and maintain good communication with regulatory authorities in order to truly promote industry development.

4. Hacked, millions of dollars in funds stolen

The leading decentralized exchange was attacked by hackers on November 4, resulting in the theft of millions of dollars worth of cryptocurrency funds. This incident has once again raised concerns about the security of DeFi.

According to official disclosures, hackers exploited a vulnerability in the V2 composable stable pool to steal a large amount of user deposits. Currently, all suspendable V2 funds pools have been suspended, and we are working with the security team to investigate the cause of the incident.

Analysts point out that this incident highlights the security risks of DeFi protocols. Although DeFi is seen as the future of the cryptocurrency space, the complexity of its underlying code and its decentralized nature also pose significant challenges to security.

Some analyses suggest that this incident may have an impact on the DeFi ecosystem, and investors may have more concerns about the security of DeFi protocols. However, there are also viewpoints that as long as vulnerabilities are promptly fixed, DeFi will still be a key direction for the development of cryptocurrencies.

At the same time, regulators may take a stricter stance on DeFi regulation. Some countries have already begun to develop regulatory frameworks for DeFi to protect investors' interests. Analysts are calling for the DeFi industry to strengthen self-regulation and improve transparency in order to gain the trust of regulators and the public.

5. OpenAI internal documents exposed, nearly merged with Anthropic

The artificial intelligence company OpenAI recently encountered an internal crisis, nearly merging with competitor Anthropic. According to disclosures from internal OpenAI documents, board member Helen Toner suggested that OpenAI should be destroyed and merged with Anthropic.

This internal document was provided by OpenAI's former Chief Technology Officer Mira Murati. Murati claims that there are serious management issues and cultural conflicts within OpenAI, which have led the company to a crisis at one point.

Analysts point out that this internal crisis reflects the fierce competition in the artificial intelligence industry. OpenAI and Anthropic are both well-known companies in the field of artificial intelligence, and the merger of the two companies will greatly change the landscape of the industry.

However, some analyses suggest that Murati's accusations may be biased. OpenAI denied this claim and stated that the company's operations are running normally. Some opinions believe that Murati may hold a prejudice against OpenAI's practices for personal reasons.

Regardless, this event has once again raised people's attention to the governance structure of artificial intelligence companies. The rapid development of artificial intelligence technology poses a significant challenge for these companies to achieve good governance while ensuring innovation.

2. Industry News

1. Bitcoin broke through the key psychological barrier of 100,000 USD, triggering panic in the market.

The price of Bitcoin plummeted on November 4, falling below the key psychological level of $100,000 for the first time since June, triggering a large-scale sell-off across the entire cryptocurrency market. Influenced by macroeconomic uncertainty, ETF fund outflows, and high leverage liquidations, market panic once again dominated trading sentiment.

After Bitcoin fell below $100,000, it accelerated its downward trend, reaching a low of around $98,800. It dropped 5.2% within 24 hours, with a total market value evaporating by over $100 billion. Meanwhile, Ethereum also saw a significant decline, briefly falling below the $3,000 mark, hitting a new four-month low.

Analysts point out that after Bitcoin falls below the $100,000 mark, it may trigger further selling pressure. Since the largest liquidation event in crypto history occurred on October 10 (over $20 billion in leveraged positions were liquidated), market demand has continued to shrink, U.S. ETF fund flows have turned negative, and overall market sentiment has shifted to bearish.

Despite short-term pressure, analysts believe that the long-term trends of ETF inflows and institutional adoption remain strong. Once market sentiment stabilizes, the cryptocurrency market is expected to gradually recover. Investors should closely monitor future market trends to seize potential investment opportunities.

2. Solana price plummets over 30%, causing doubts as on-chain activity sharply declines.

The Solana ecosystem has suffered a heavy blow, with the price of the SOL token plummeting over 30% in a single day on November 4, briefly falling below 20 dollars. The on-chain active addresses and transaction volume data have also seen a significant decline, raising doubts in the market about its long-term development prospects.

Data shows that the number of active addresses and transaction volume on the Solana chain have decreased by 60% and 70% respectively over the past week. The activity level of the Dapp ecosystem has also seen a significant decline. Analysts believe this reflects that the Solana ecosystem is facing severe development challenges.

Anatoly Yakovenko, the chairman of the Solana Foundation, responded on social media, stating that the Solana ecosystem is in the early stages of development, and short-term fluctuations should not be overinterpreted. However, he also acknowledged that Solana still has room for improvement in areas such as scalability and decentralization.

Multiple crypto analysis firms have downgraded their ratings for Solana. Delphi Digital stated that the challenges facing Solana include a lack of unique value proposition, slow ecosystem development, and a decline in on-chain activity. Investors should carefully assess Solana's long-term development potential.

3. The privacy coin sector explodes, Zcash rises over 20% attracting market attention.

In the context of an overall downturn in the cryptocurrency market, the privacy coin sector has seen a rare rally. Among them, Zcash surged more than 20% in a single day, attracting widespread attention in the market.

Analysts believe that the recent strength of privacy coins is primarily driven by two factors: first, the tightening of regulatory policies has increased investors' demand for privacy protection; second, the application prospects of privacy technology in the cryptocurrency field are broad, with significant development potential.

Zcash, as a representative project of privacy coins, employs advanced technologies such as zero-knowledge proofs, enabling completely anonymous cryptocurrency transactions. Its technological advantages and first-mover advantage have secured its important position in the field of privacy coins.

However, some analysts have raised concerns about the compliance of privacy coins. Gary Gensler, the chairman of the U.S. Securities and Exchange Commission, has stated that privacy coins could be used for illegal activities and that regulation needs to be strengthened.

Overall, the development prospects in the field of privacy coins still carry uncertainties. Investors need to have a full understanding of the potential risks while closely monitoring the trends in regulatory policy changes.

4. Institutional funds favor Solana, wise SOL staking ETF raises over $400 million.

Despite the recent setbacks in the Solana ecosystem, institutional funds still favor it. Data shows that the wise SOL staking ETF ### BSOL ( has attracted over $417 million in inflows since its launch last Thursday.

Analysts believe that institutional investors' continued optimism towards Solana is mainly based on its advantages in scalability and low transaction fees. Despite facing some setbacks recently, the long-term development prospects of Solana remain promising.

At the same time, some analysts hold a cautious attitude towards the performance of BSOL. They point out that BSOL faced a sharp decline on its first day of listing, indicating that market confidence in the Solana ecosystem has been damaged. Whether BSOL can continue to attract capital inflow in the future still needs further observation.

Overall, the attitude of institutional funds towards Solana reflects that, despite the intensified short-term volatility in the cryptocurrency market, the long-term judgment of quality projects has not changed. Investors need to be patient and focus on the long-term development prospects of the project.

) 5. XRP trading volume surged over 200%, the launch of Ripple Prime may drive institutional demand.

Against the backdrop of a generally sluggish cryptocurrency market, XRP trading volume suddenly surged over 200% on November 4, attracting widespread attention in the market. Analysts believe that this trend may be related to the launch of Ripple's new exchange, Ripple Prime.

Ripple Prime is a service launched by Ripple after acquiring Hidden Road, aimed at providing over-the-counter trading ###OTC( services for institutional clients. Its launch is expected to promote the adoption of XRP in the institutional sector, thereby unleashing potential demand.

Data shows that the trading volume of XRP soared from about $4 billion to nearly $8 billion within 24 hours after the launch of Ripple Prime. However, the price performance was relatively flat, with only a slight increase of about 3% in the short term.

Analysts point out that whether XRP can continue its upward trend in the short term depends on the actual operation of Ripple Prime. If it can attract more institutional clients, it will bring long-term benefits to XRP. However, if the results are not good, it will be difficult to support XRP's performance in the future.

Overall, the surge in trading volume triggered by the launch of Ripple Prime reflects the market's expectations for the release of institutional demand for XRP. However, the specific impact still needs further observation.

3. Project Highlights

) 1. DeFAI Protocol: Revolutionizing Automation

DeFAI Protocol is an innovative decentralized finance ### artificial intelligence ( protocol aimed at simplifying and automating complex financial interactions, transforming on-chain applications into intelligent autonomous systems for decentralized finance, game finance, and other fields.

The latest protocol has introduced a new type of intelligent agent that can autonomously perform various tasks, such as trading, lending, liquidity mining, and more. These agents are based on artificial intelligence algorithms that can analyze market data and make optimal decisions, thereby achieving automation in asset management. The innovation of the DeFAI protocol lies in the combination of artificial intelligence and decentralized finance, providing users with more efficient and intelligent asset management solutions.

The DeFAI protocol is expected to have a profound impact on the financial ecosystem. On one hand, it can lower the threshold for users to participate in DeFi, allowing ordinary users to enjoy the benefits of smart portfolio management; on the other hand, it provides the infrastructure for building more complex decentralized applications, helping to promote the development of the financial ecosystem.

Industry analysts have welcomed the DeFAI protocol. According to comments from the Dapp analysis platform DappRadar, the DeFAI protocol brings new possibilities to DeFi and is expected to drive the emergence of more innovative applications. At the same time, some experts remind that artificial intelligence systems carry certain risks, necessitating further refinement of algorithms and governance mechanisms to ensure the safety and reliability of the system.

) 2. Chainlink integrates Kiln, supporting next-generation on-chain yield products

Institutional-grade on-chain asset and yield management platform Kiln has recently announced the integration of Chainlink runtime environment ###CRE( and the automated compliance engine )ACE(.

Kiln is a platform focused on institutional-grade asset management, aimed at providing institutional investors with secure and compliant on-chain yield products. By integrating with Chainlink, Kiln will be able to leverage CRE to automate the execution of vault logic and settlement workflows, and ensure compliance with the help of ACE.

This innovation helps Kiln improve operational efficiency, reduce costs, and provide higher quality services to institutional clients. At the same time, Chainlink's decentralized architecture also ensures the security and transparency of Kiln products.

Kiln's innovation lies in combining traditional finance with blockchain technology, providing institutional investors with a familiar asset management experience. Through its collaboration with Chainlink, Kiln is expected to attract more institutional funds into the financial ecosystem, promoting industry development.

Many analysis institutions welcome this. According to a report by Messari, Kiln provides a safe and reliable pathway for institutional investors to enter the cryptocurrency market. At the same time, some experts remind us that the uncertainty of regulatory policies may affect the development of platforms like Kiln, and it is necessary to closely monitor regulatory trends.

) 3. Folks Cross-Chain DeFi Protocol Launches FOLKS Airdrop

Folks is a cross-chain decentralized finance ### DeFi ( protocol, with the core positioning to become a comprehensive capital market hub connecting multi-chain ecosystems. The FOLKS airdrop will be launched on November 6.

The biggest highlight of this project lies in its deep integration of top cross-chain infrastructures such as Chainlink CCIP, Circle CCTP, and Wormhole, achieving seamless cross-chain lending and management of native assets, aiming to fundamentally solve the long-standing problem of liquidity fragmentation in the DeFi space. With a clear vision, a business model validated by capital, having completed a total financing of 6.2 million USD ) and a reasonable token economic design, Folks has become a noteworthy player in the cross-chain DeFi arena.

The innovation of Folks lies in combining cross-chain technology with DeFi, providing users with a one-stop asset management solution. Users can enjoy DeFi services across major chains without having to transfer assets between different chains. This helps improve user experience and reduce usage costs.

Many analytical institutions have expressed optimism about Folks. According to DeFiPrime's comments, Folks is expected to become a key infrastructure in the DeFi ecosystem, driving industry development. Meanwhile, some experts have also warned that cross-chain technology is still in its early stages and carries certain security risks that need further improvement.

Overall, Folks, as an innovative cross-chain DeFi protocol, is worth the continuous attention of industry professionals.

4. Regulation & Policy

( 1. The American Independent Community Bankers Association opposes Coinbase's application for a banking license.

The Independent Community Bankers of America ) ICBA ### recently sent a letter to the Office of the Comptroller of the Currency ( OCC ), requesting the denial of the national trust bank charter application from Coinbase's subsidiary, Coinbase National Trust Co. ICBA is an industry association representing the interests of community banks in the United States, arguing that Coinbase's application fails to meet the statutory standards and, if approved, would set a “dangerous precedent” for the U.S. banking system.

The ICBA's stance has sparked a strong backlash from the cryptocurrency industry. Coinbase's Chief Legal Officer, Paul Grewal, responded that the ICBA's actions are “blatant protectionism,” attempting to monopolize regulatory channels, exclude competitors, and stifle crypto innovation. He pointed out that the ICBA opposes Coinbase's acquisition of a regulated trust license simply because it wants cryptocurrencies to remain unregulated.

This matter has once again sparked heated discussions in the industry regarding cryptocurrency regulation. Supporters believe that allowing crypto companies to obtain banking licenses is beneficial for the standardized development of the industry, improving compliance and user trust. However, critics are concerned that excessive regulation may stifle innovation and limit the growth potential of cryptocurrencies.

Former SEC senior advisor Jack Walker believes that regulators should leave room for cryptocurrency innovation while protecting investors and maintaining financial stability. He suggests adopting a “sandbox” regulatory model that allows innovative projects to be tested in a controlled environment and to develop reasonable regulatory rules based on practical results.

( 2. Canada announces that it will introduce regulatory laws for stablecoins.

Following the U.S. passage of the Stablecoin Regulation GENIUS Act, the Canadian government announced plans to introduce stablecoin regulatory laws in the 2025 federal budget. According to the budget proposal, the new law will require fiat-backed stablecoin issuers to maintain sufficient reserves, establish redemption policies, and implement risk management measures, including mechanisms to protect personal and financial data.

The Bank of Canada will allocate 10 million Canadian dollars over two years starting from the 2026-2027 fiscal year to ensure the smooth progress of regulatory work. It is expected that approximately 5 million Canadian dollars in related costs will be incurred each year thereafter, and this portion of costs will be offset by stablecoin issuers under the regulation of the Retail Payment Activities Act.

This regulatory plan aims to create a faster, lower-cost, and safer digital trading environment for the Canadian public, and is part of the overall “payment system modernization” initiative. The Canadian government believes that stablecoin regulation will help protect consumer rights and maintain the stability of the financial system.

Reactions to this plan from people in the cryptocurrency industry are mixed. Supporters believe that a clear regulatory framework will enhance the transparency and credibility of stablecoins, benefiting their application in payments and settlements. However, some are concerned that excessive regulation could stifle innovation and affect Canada's competitiveness in the digital asset space.

Faryar Shirzad, the global policy head of Coinbase, stated that Canada should learn from the United States and adopt a “level playing field” principle to ensure that cryptocurrency companies can compete fairly and promote industry development under compliance.

) 3. Thailand's Finance Minister: Will strengthen regulatory efforts in the field of cryptocurrencies and other areas.

Thailand's Finance Minister, Arkhom Termpittayapaisith, recently stated that the Thai government will strengthen its regulatory efforts in areas such as cryptocurrency, gold, foreign exchange, and cash transactions. This statement is seen as a signal from Thai authorities to further regulate the digital asset market.

Sulaipa pointed out that the risks of emerging financial products such as cryptocurrencies are relatively high, and the lack of regulation may lead to illegal activities such as money laundering and tax evasion. Therefore, it is necessary for the government to strengthen regulation to maintain the stability of the financial system and protect public interests.

Thailand currently has regulations in place to supervise cryptocurrency trading, but industry insiders believe that existing rules still have loopholes and cannot completely eliminate violations. The recent statement by Surapa is interpreted as the Thai authorities' intention to further tighten regulation.

The chairman of the Thailand Cryptocurrency Exchange Association, Pavee, believes that reasonable regulation is beneficial for the long-term healthy development of the industry. He calls for the government and the industry to strengthen communication and formulate practical regulatory measures that protect investors' rights without hindering industry innovation.

Analysts point out that Thailand, as an important economy in Southeast Asia, may have its regulatory policies impact the regional digital asset market. Striking a balance between risk prevention and innovative development will be a matter that Thai regulators need to consider carefully.