Web3 AI Daily Review (2024/8/31)

I. Attention Value - Market Highlights

1. Market Trends

(1) Macroeconomic Environment:

l U.S. stock giants lead the market, Invesco and BlackRock launch ETFs focused on tech giants

U.S. asset management giants Invesco and BlackRock have recently launched ETF products focused on large-cap stocks to cater to the market's enthusiasm for tech giants. Invesco plans to issue a new fund called "Invesco Mega QQQ ETF" (QBIG), which will track the top 45% of companies by weight in the Nasdaq 100 index, including Apple, Microsoft, Nvidia, Amazon, Meta, Google's parent company Alphabet, and Costco. This strategy aims to attract investors looking to invest in market leaders.

Strategas ETF strategist Todd Sohn pointed out that these funds meet investors' demand for top stocks but also warned of potential risks, as poor performance from these leading stocks could lead to losses.

In the U.S. stock market, large-cap stocks have consistently outperformed. For example, an Invesco ETF tracking the top 50 stocks in the S&P 500 has significantly outperformed an equal-weighted S&P 500 ETF. This phenomenon has sparked more investor interest in large-cap stock ETFs, such as the Roundhill Seven Giants ETF (MAGS), which has grown from $35 million at the beginning of the year to approximately $673 million.

BlackRock is also keeping pace, having submitted an application to launch a fund tracking the top 30 stocks in the Nasdaq 100 and the top 20 stocks in the S&P 500 to capitalize on market trends and attract investors.

(2) Web3 Sector:

l First of its kind! AI-to-AI crypto trading will open the door to the AI economy!

Coinbase CEO Brian Armstrong announced that Coinbase successfully conducted the first AI-to-AI crypto transaction on its development platform. This marks a historic moment where artificial intelligence can use cryptocurrency for mutual payments. In this transaction, one AI purchased "tokens" from another AI, which are not traditional cryptocurrencies but rather words from one LLM to another LLM.

Armstrong explained that AI agents cannot have bank accounts but can use crypto wallets for transactions. They can now conduct instant, global, and free transactions using USDC stablecoin on Coinbase's Base Layer 2 network with humans, merchants, or other AIs. He emphasized that this development enables AI agents to complete tasks more independently, as they can acquire necessary resources through crypto transactions.

This milestone event heralds the arrival of the AI economy. As AI agents gain independent trading capabilities, they are expected to become active participants in the digital economy, driving transformation across various industries and creating new economic models. Armstrong also encouraged developers to integrate these crypto wallets into AI models for automated payments and transactions, further promoting the development of an AI-driven economy.

l North Korean hacker group exploits Chromium zero-day vulnerability targeting cryptocurrency users

Microsoft cybersecurity researchers discovered a zero-day vulnerability in the Chromium engine, which powers browsers like Chrome. This vulnerability was exploited by a North Korean hacker group named Citrine Sleet, specifically targeting cryptocurrency users. Citrine Sleet used a rootkit malware called FudModule to create fake cryptocurrency trading platform websites, luring users to download malicious software or weaponized crypto wallets, thereby gaining remote code execution access to steal victims' crypto assets. The vulnerability was patched on August 21, and users are urged to update their browsers promptly to ensure safety. This is the third exploited Chromium zero-day vulnerability this year.

l Mastercard plans to adopt tokenization technology to replace credit card numbers, reducing the risk of data breaches

Mastercard plans to eliminate traditional credit card numbers in favor of "tokenization technology" to combat online fraud. According to reports from Singapore's Lianhe Zaobao, this technology replaces sensitive data like credit card numbers with randomly generated numerical sequences (tokens), thereby reducing the risk of data breaches. Mastercard CEO Michael Miebach stated that the company will expand the application of this technology and replace traditional passwords with biometric identification (such as fingerprints or facial scans) to address the growing issue of online payment fraud, which is expected to exceed $91 billion in losses by 2028.

Miebach pointed out that past security measures primarily relied on passwords to protect data and transactions, but this approach has gradually revealed security vulnerabilities. With "tokenization technology," even if sensitive information is illegally accessed by hackers, the real data cannot be deciphered. Additionally, this technology helps businesses comply with data protection regulations, such as the EU's General Data Protection Regulation (GDPR) and the Payment Card Industry Data Security Standard (PCI DSS). Mastercard anticipates that by the end of this century, all e-commerce transactions in Europe will adopt "tokens" instead of traditional credit card numbers.

2. Hot Events

(1) Macroeconomic Environment:

The decline in Nvidia's stock price is primarily attributed to the complexity of its cutting-edge chip manufacturing. Despite the company reporting strong quarterly sales and profits, manufacturing challenges with new chips led to a decrease in profit margins, resulting in a $908 million reserve being set aside in one quarter. Notably, the Blackwell architecture GPU has yield issues that require redesigning parts to improve yield, delaying the mass production of the next-generation Blackwell architecture GPU to the fourth quarter of 2024. Moreover, the massive size and complex design of Blackwell chips have introduced unprecedented manufacturing complexities, where any defect in a component could lead to chip scrapping, affecting yield and profits. Differences in thermal expansion coefficients among chip components could also cause packaging warping, impacting performance and reliability. These factors collectively contributed to a 6.4% drop in Nvidia's stock price on Thursday.

(2) Web3 Sector:

Starbucks has begun accepting Bitcoin as a payment method in El Salvador, a move implemented after the country officially adopted Bitcoin as legal tender on September 7, 2021. Reports indicate that Starbucks and other well-known brands, such as McDonald's and pizza shops, have joined this trend, allowing customers to pay with Bitcoin.

In El Salvador, consumers can complete transactions using Bitcoin and the Lightning Network. For instance, users can make payments through the state-issued Chivo crypto wallet, which initially faced some issues upon launch but quickly gained user acceptance. A user named Mario Aguiluz shared his experience of buying coffee at Starbucks with Bitcoin, stating that the transaction process was very quick.

3. Hot Narratives

Bridge is an emerging payment company founded by former executives from Coinbase and Square, focusing on building a global payment network using stablecoin technology. Recently, Bridge announced the completion of $58 million in funding, attracting support from renowned investment firms such as Sequoia Capital, Ribbit Capital, and Index Ventures. This funding not only provides financial support to the company but also validates market recognition of its business model.

The founding team of Bridge consists of Zach Abrams and Sean Yu, both of whom have extensive experience in the fintech sector. Abrams has held significant positions at Brex, Coinbase, and Square, while Yu has worked at Airbnb, Coinbase, and Doordash. The P2P payment platform Evenly, which they co-founded, was acquired by Square in 2013, demonstrating their strength and innovation in the payment space.

Bridge's comprehensive stablecoin payment solutions position it as the Web3 version of Stripe. Through a simple and user-friendly API interface, Bridge helps businesses easily integrate stablecoin payments, supporting the issuance of proprietary stablecoins and facilitating efficient cross-border fund transfers. The platform's Orchestration API and issuance API enable businesses to complete payment integrations in minutes, reducing transaction costs and improving efficiency.

Currently, Bridge has attracted numerous well-known clients, including SpaceX, Coinbase, Stellar, and Strike. SpaceX utilizes Bridge to collect payments in different currencies across various jurisdictions and transfers funds to its global treasury using stablecoins. Additionally, Bridge has excelled in compliance, having obtained operating licenses in 48 U.S. states and applying for further licenses in multiple regions worldwide.

Looking ahead, as the stablecoin market rapidly develops, Bridge is poised to lead the transformation in stablecoin payments. Its goal is to inject new liquidity of stablecoins and fiat currencies globally, driving further innovation in fintech. With increasing market acceptance of stablecoins, Bridge's growth prospects are worth close attention.

4. Potential Catalysts

Wells Fargo, with $1.7 trillion in assets under management, will allow its wealth advisors to recommend Bitcoin ETFs to affluent clients starting next month. This move is expected to have a positive impact on the Bitcoin market.

Wells Fargo's decision indicates that an increasing number of institutional investors are beginning to pay attention to the cryptocurrency market. The participation of large financial institutions can not only bring substantial capital inflows but also enhance the credibility and recognition of Bitcoin.

According to analysis, if Bitcoin ETFs achieve participation levels in the U.S. market comparable to Canada, their scale could reach $95 billion within two years. With more institutions joining, inflows into Bitcoin ETFs are expected to increase significantly in the coming years.

II. Attention Value - Hot Projects

1. Social Media Buzz

Solana has recently gained widespread attention on social media platforms, with its popularity continuing to rise. The Solana ecosystem has developed rapidly in recent years, becoming one of the major players in the cryptocurrency market. As of 2024, Solana's Total Value Locked (TVL) reached approximately $4.8 billion, a 20-fold increase from 2023. The daily active address count on the Solana network reached 1.3 million, with monthly active addresses surpassing 15.6 million, showing significant growth compared to 2023. In the second quarter, Solana's total economic value grew by 53% quarter-over-quarter, reaching $151 million, demonstrating its sustained activity in the cryptocurrency market. These data indicate that the Solana ecosystem is showing strong growth momentum in 2024, attracting more developers and investors' attention.

Key Projects:

· BULLISH

Bullish is about to launch its mainnet, which could positively impact its price. Recently, KOLs have been discussing its future development, and Bullish is expected to see a significant surge with the upcoming major updates, creating a positive market sentiment.

· EARLY

The most noteworthy aspect of Early Risers is the upcoming Rocket Rewards program. Recently, the sentiment towards Early Risers has been optimistic, with the market feeling positive. The most notable viewpoint is that Early Risers allows investors to participate early and earn transaction fee profits, addressing the pain points of early cryptocurrency investments.

2. Smart Money Accumulation

· Smart Money Holdings

Source: ChainEDGE, Dot Labs

Project Overview:

1. Neiro (@neiroethcto /X)

Neiro is the first deployed on Ethereum and caught the attention of Vitalik Buterin on the evening of August 4, 2024. Vitalik later confirmed a donation of over $500 to an animal welfare fund, marking his second interaction with a memecoin. Neiro was initially abandoned by its owner and taken to a stray dog shelter but is now fully owned and managed by the community. The community is committed to giving back, having donated to the shelter where Neiro once stayed and planning more charitable activities. Neiro is like the little sister of Doge, inheriting its legacy. Neiro was adopted by the same woman who once owned Kabosu (the dog behind the Doge meme), embodying the true spirit of meme coins and internet culture.

2. QF (@QuantumFusion_ /X)

Quantum Fusion poses the question: Can parallel computing revolutionize blockchain? QF consists of three parts: Quantum Fusion, which creates a parallel computing blockchain aimed at breaking the scalability and efficiency limits of decentralized systems; the Quantum Fusion Foundation, which supports research extending beyond parallel computing and aims to become a hub for blockchain technology development; and the QF Lab, an incubator for blockchain concepts. They all share a common goal: to push the boundaries of blockchain technology. Together, they form a comprehensive ecosystem dedicated to creating systems that can meet and exceed the demands of the future digital world.

· Smart Money Inflows

Source: ChainEDGE, Dot Labs

Project Overview:

1. Mog (@MogCoinEth /X)

Mog is the first cultural coin on the internet. The idea of Mog began as a fun meme among friends, and in the summer of 2023, the token was launched as a fair distribution meme coin through Uniswap V2 LP. Although it started as a joke among friends, it became clear that something truly special had been created when the project went live. Mog immediately distinguished itself from other projects through its open meme brand and unique content. The cultural foundation of Mog is about being the best version of yourself in everything you do—being confident in yourself, your community, and your own success.

2. POPCAT (@POPCATSOLANA /X)

Popcat is an internet meme that originated in October 2020, showcasing a series of videos featuring two domestic short-haired cats named "Oatmeal," one with its mouth closed and the other with its mouth open, the second image edited to make its mouth form an "O" shape.

III. Attention Value - Sector Rotation

1. Hot Sectors

Source: Dune, Dot Labs

Source: Dune, Dot Labs

2. Sector Internals

Source: Dune, Dot Labs