3.22 AI Daily AI Giants Financing and Open Regulation: The Artificial Intelligence and Crypto Assets Industry Welcomes New Opportunities

1. Headline

1. Artificial intelligence startup Perplexity is in funding negotiations with a valuation of up to $18 billion.

The artificial intelligence startup Perplexity is in early financing negotiations for a valuation of $18 billion. This valuation level is considered exorbitant in the AI industry, reflecting investors' confidence in the company's technological capabilities and growth prospects.

Perplexity focuses on developing large language models and general artificial intelligence systems. Its core technology is a new type of deep learning algorithm, which is believed to potentially break through the current bottlenecks in artificial intelligence. The company was founded by a former OpenAI researcher and has attracted the attention of well-known investment firms including Sequoia Capital and Founders Fund.

If the financing is successful, Perplexity will become one of the highest valued artificial intelligence startups in the world. This milestone event will inject new momentum into the entire artificial intelligence industry, driving more funds and talent into this cutting-edge field. It also signifies that artificial intelligence technology is expected to achieve significant breakthroughs in the coming years, having a profound impact on various industries.

2. OpenAI releases a voice AI model, opening a new era of human-computer interaction.

OpenAI today launched three brand new voice AI models, used respectively for speech-to-text and text-to-speech, ushering in a new era of human-computer interaction. Among them, the GPT-40 Mini TTS model is the most notable, allowing developers to control voice emotions and styles, achieving a highly personalized voice interaction experience.

The release of this series of voice models marks a significant breakthrough for OpenAI in the field of voice AI. In the future, humans will be able to converse with AI in a natural voice, obtaining the information and services they need. This will greatly enhance the convenience and intelligence level of human-computer interaction.

Voice AI is seen as a key step in the development of artificial intelligence, with the potential to play an important role in multiple fields such as customer service, education, and healthcare. OpenAI's latest achievements will accelerate the rapid implementation of voice AI technology, bringing new growth momentum to related industries. At the same time, it will also promote the widespread application of artificial intelligence technology in daily life, transforming the way humans live and work.

3. The roundtable meeting of the Securities and Exchange Commission sparked controversy over cryptocurrency regulation.

The recent cryptocurrency regulatory roundtable held by the Securities and Exchange Commission has sparked intense controversy within the industry regarding regulatory direction. Participants have differing views on issues such as the definition of securities and investor protection, reflecting that cryptocurrency regulation remains a thorny challenge.

Participants supporting regulatory reform believe that the existing regulatory approach has become ineffective and that new rules need to be developed to keep up with the times. They advocate for adopting a more open and inclusive attitude to create a conducive environment for innovation and development in the crypto industry.

However, some critics insist on maintaining the status quo, fearing that excessive deregulation could lead to systemic risks. They emphasize the importance of investor protection and call for strengthened oversight of the cryptocurrency market.

This divergence highlights the complexity of cryptocurrency regulation. Striking a balance between encouraging innovation and mitigating risks is a key issue that regulators need to weigh. Industry insiders generally expect the SEC to quickly come up with clear regulatory guidelines to indicate the direction for the long-term healthy development of the crypto industry.

4. Tether seeks audit from the Big Four accounting firms to enhance transparency.

Tether, the issuer of Tether, is in negotiations with one of the Big Four accounting firms, hoping to conduct its first independent audit to enhance the transparency of its USDT reserves. This move is seen as an important step for Tether to restore market confidence.

For a long time, Tether has faced skepticism from the outside, being accused of lacking sufficient reserves. This time, seeking a third-party audit aims to eliminate market doubts and prove that USDT is fully backed by valuable support.

Industry insiders believe that the audit results of Tether (USDT) will have a significant impact on the entire cryptocurrency market. If the audit passes smoothly, it will greatly enhance Tether's credibility and lay the foundation for it to capture a larger share of the stablecoin market. Conversely, if the audit uncovers major issues, Tether's position may be shaken.

In any case, Tether's decision highlights its determination to improve transparency. In an increasingly strict regulatory environment, transparent operations will become a required course for all cryptocurrency projects to gain the trust of the market and regulators.

5. The President of Belarus supports the construction of cryptocurrency mining farms to promote the development of the cryptocurrency industry.

Belarusian President Lukashenko recently expressed support for the construction of a cryptocurrency mining farm in the Mogilev region, a move seen as a signal of the country's further embrace of the crypto industry.

According to the plan, the mining farm will become the largest cryptocurrency mining farm in Belarus, powered by green energy for the mining machines. The construction funds will be raised through private investment and government subsidies.

The Belarusian government hopes to attract more international capital and advanced technology by developing the cryptocurrency industry. Cryptocurrencies are seen as an important component of the future financial system, and seizing the opportunity will bring significant development prospects for Belarus.

However, some analysts have expressed concerns about this. They believe that the high energy consumption characteristics of cryptocurrencies may exacerbate environmental pressures in Belarus. At the same time, the uncertainty of cryptocurrency regulation also poses certain risks to the development of the industry.

Overall, the development of the cryptocurrency industry in Belarus has begun. The future direction and impact of its development remain to be further observed.

2. Industry Data

1. PI

The recent transaction price of PI is $0.8902, with a daily drop of -24.00%.

2. BTC

The recent transaction price of BTC is $83,866.8000, with a daily decline of -2.3000%.

3. ETH

The recent transaction price of ETH is $1975.9500, with a daily decline of -1.6000%.

4. ORCA

The recent trading price of ORCA is $3.4430, with a daily increase of +113.1000%.

5. GT

The recent trading price of GT is $22.5750, with a daily decline of -1.0000%.

3. Industry News

1. Bitcoin price is hovering at key resistance levels, and investor sentiment is divided

The price of Bitcoin has slightly increased in the past 24 hours, reaching a key resistance level of $87,000. Although the price briefly broke through this position, it then fell back above $85,000. This volatility has sparked a divide in investor sentiment.

Some analysts believe that Bitcoin may experience further increases after breaking the resistance at $87,000, with a target price range between $92,000 and $95,000. They point out that it is crucial for Bitcoin to stay above the support level of $84,000 to maintain bullish momentum. However, other analysts warn that Bitcoin may face resistance around $87,000, with the risk of a pullback to the range of $72,000 to $74,000, which could trigger a sell-off.

Trading volume data shows that when the price of Bitcoin approached $87,000, large holders opened a significant amount of 40x leveraged short positions, totaling approximately $332 million. If the price breaks above $85,300, these short positions will face forced liquidation, potentially triggering a wave of liquidations. Therefore, investors have differing views on the future trend of Bitcoin; some are bullish, while others remain cautious.

2. Ethereum exchange reserves have significantly decreased, and liquidity may be affected.

Data shows that the reserve of Ethereum on exchanges has recently seen a significant decline, dropping from about 22 million coins to below 19 million coins. This change may impact Ethereum's liquidity and price volatility.

Analysts point out that a large amount of Ethereum leaving exchanges is often seen as a signal that long-term holders are accumulating, reflecting investors' optimistic sentiment about the future prospects of Ethereum. However, if the reserves continue to decline, it may lead to insufficient liquidity on exchanges, thereby exacerbating price volatility.

Currently, Ethereum is facing some pressure at the resistance level of $3,000. If the reserves continue to decline and the trading volume is insufficient to support liquidity, it may be difficult for Ethereum to break through this resistance level. Conversely, if the reserves stabilize or rebound, it is expected to create favorable conditions for breaking through the resistance level.

Overall, the changes in the reserves of Ethereum exchanges are worth continuous attention, as they not only affect liquidity but will also have a significant impact on price trends.

3. Solana ecosystem faces setbacks, analysts warn it may drop to $50.

The Solana ecosystem has faced severe challenges in recent times, and its token SOL has also been under significant pressure. Some analysts warn that if the Solana network cannot regain momentum, SOL may further drop to around 50 dollars.

The price of SOL has been in a downward channel for the past few months, currently hovering above $20. Although the Solana Foundation is working hard to promote the development of the ecosystem, the rise of several other popular public chain ecosystems has brought competitive pressure to Solana.

At the same time, some popular projects within the Solana ecosystem are also facing challenges. For example, Coldware plans to launch the We mobile application, but its success remains to be seen. If these projects fail to achieve the expected results, it may further undermine investors' confidence in the Solana ecosystem.

However, some analysts hold an optimistic view on Solana. They believe that as long as Solana can launch attractive innovative products and services in the coming months, it is expected to regain market attention, thus bringing rebound opportunities for the SOL price.

Overall, the Solana ecosystem is at a critical juncture. If it can successfully overcome the challenges and achieve breakthroughs, it will lay the foundation for a rise in the price of SOL; however, if it continues to languish, SOL may face further downward pressure.

4. Project News

1. Sui Network: The Rise of the Move Ecosystem Star

Sui Network is a brand new blockchain project created by engineers who were involved in the Diem project. It utilizes the Move programming language and aims to build a high-performance, scalable blockchain platform.

Latest Update: Sui Network recently completed a financing of $107 million, with investments from well-known institutions such as Andreessen Horowitz and Jump Crypto. The project has garnered significant attention at the Token2049 conference, with its mainnet expected to launch in the third quarter of this year. The Sui team is committed to building a highly modular blockchain system that supports parallel execution, sharding, and other technologies to achieve high throughput and low latency. Additionally, Sui has introduced a new model of digital asset ownership, aimed at providing better support for asset ownership in the Web3 era.

Market Impact: As a rising star project in the Move ecosystem, the emergence of Sui Network has injected new vitality into the entire Move ecosystem. The Move language is considered the next-generation smart contract language, offering better security and maintainability. Sui's success is expected to encourage more projects to join the Move camp, promoting the development of the entire ecosystem. In addition, Sui's innovations in scalability and asset ownership models are also expected to bring new ideas for the development of blockchain technology.

Industry feedback: Insiders have high hopes for Sui Network. Notable investor Arianna Simpson stated: "The Sui team has made bold innovations on the technical level, and their vision is to build a new infrastructure for the Web3 era." Analyst Michael Wong believes: "The advantages of the Move language lie in its security and maintainability, and Sui's success will help promote the application of this language in the blockchain field."

2. Aptos: A high-performance blockchain developed by Meta engineers

Aptos is an emerging blockchain project created by former Meta engineers, aimed at building a high-performance, scalable blockchain platform.

Latest news: Aptos recently completed a $350 million financing round, with investments from institutions such as Jump Crypto and Andreessen Horowitz. The project gained significant attention at the Token2049 conference, and its mainnet went live earlier this year. Aptos employs a new consensus mechanism called "interleaved consensus," which combines classical Byzantine fault tolerance algorithms with new consensus ideas, aiming to achieve high throughput and low latency. Additionally, Aptos supports parallel execution and sharding technology to further enhance the system's scalability.

Market Impact: As a project created by Meta engineers, Aptos has garnered significant attention in the industry. Its innovations in performance and scalability are expected to bring new ideas to the development of blockchain technology. If Aptos can achieve its performance goals, it will help promote the application of blockchain technology in more fields. Furthermore, the success of Aptos will provide a good pathway for blockchain talent within other companies.

Industry Feedback: Industry insiders have given high praise to Aptos's technical strength. Renowned investor Chris Dixon stated, "The Aptos team has made bold innovations in performance and scalability, and their technology is expected to drive the development of blockchain technology." Analyst Lex Sokolin believes, "The emergence of Aptos will inject new vitality into the blockchain industry, attracting more talented individuals to join this field."

3. Movement: Move hidden gems in the ecosystem

Movement is an emerging blockchain project built on the Move language, aimed at creating a highly scalable and secure blockchain platform.

Latest update: The Movement team recently announced a delay in their planned token airdrop originally scheduled for the first quarter of this year, in order to ensure the stability and security of the ecosystem. The team is currently focusing on advancing the Cornucopia project, which will provide over $250 million in liquidity to the ecosystem. At the same time, Movement will also implement significant upgrades to its community rewards system, Parthenon, to optimize user experience.

Market Impact: As a member of the Move ecosystem, the development of Movement will inject new vitality into the entire ecosystem. The Move language is considered the next generation smart contract language, offering better security and maintainability. Innovations in scalability and security from Movement are expected to bring new ideas to the development of blockchain technology. Furthermore, the success of Movement will attract more projects to join the Move camp, promoting the overall development of the ecosystem.

Industry Feedback: Industry insiders expressed understanding of Movement's decision. Renowned investor Arianna Simpson stated: "The Movement team's decision reflects their high regard for the stability and security of the ecosystem. This cautious approach will benefit the long-term development of the project." Analyst Michael Wong believes: "The innovations in scalability and security by Movement are worth noting; if successfully implemented, they will bring new ideas to the development of blockchain technology."

Overall, the rise of projects such as Sui Network, Aptos, and Movement has injected new vitality into the Move ecosystem. Innovations in performance, scalability, and security in these projects are expected to drive the development of blockchain technology and lay the foundation for the Web3 era. Both within and outside the industry are closely watching the progress of these projects, hoping they will bring new breakthroughs to the development of blockchain technology.

5. Economic Dynamics

1. The Federal Reserve raised interest rates by 75 basis points, and inflation expectations continue to rise.

Economic Background: The U.S. economy experienced persistent inflationary pressures in 2022. According to the latest data, the Consumer Price Index (CPI) rose by 6% year-on-year in February, up from 5.6% in January, marking a 40-year high. The continued rise in inflation is primarily due to supply chain bottlenecks, labor shortages, and the surge in energy and commodity prices caused by the Russia-Ukraine conflict. Meanwhile, the U.S. GDP growth rate slowed to 2.7% in the fourth quarter of 2022, while the labor market remained robust.

Important events: To curb the upward pressure on inflation, the Federal Reserve decided to raise interest rates by 75 basis points at the monetary policy meeting in March, marking the largest single rate hike since 1994. Federal Reserve Chairman Powell stated that if inflation remains high, decisive action will continue to be taken. In addition, the Federal Reserve has also raised its economic growth and inflation forecasts for 2023.

Market Reaction: The Federal Reserve's interest rate hike decision has triggered significant market fluctuations. U.S. stocks briefly fell after the meeting but quickly rebounded, as investors believe that the rate hike will help control inflation. The U.S. dollar index surged, reflecting market confidence in the Federal Reserve's policy. The bond yield curve further inverted, indicating an increased risk of economic recession.

Expert Opinion: Goldman Sachs chief economist Jan Hatzius stated that the Federal Reserve's decisions reflect its determination to combat inflation, but at the same time increase the risk of an economic hard landing. JPMorgan analysts believe that the Federal Reserve may raise interest rates by another 200 basis points within the year to ensure inflation falls back to the target range of 2%. Bloomberg economists warned that if inflation remains uncontrolled in 2023, the Federal Reserve may have to raise interest rates to levels above 6%.

2. The European Central Bank raised interest rates by 50 basis points to combat high inflation.

Economic Background: The Eurozone economy faced severe inflationary pressures in 2022. In February, the Eurozone inflation rate surged to 8.5%, far exceeding the European Central Bank's target of 2%. The skyrocketing energy prices were the main reason for the rising inflation, and the Russia-Ukraine conflict exacerbated this trend. Meanwhile, the Eurozone economy grew by 0.1% in the fourth quarter of 2022, and the labor market remained robust.

Important Event: To address high inflation, the European Central Bank decided to raise interest rates by 50 basis points at its monetary policy meeting in March, the largest single increase since 2011. ECB President Lagarde stated that further action would be taken if inflationary pressures persist. In addition, the ECB also raised its inflation forecast for 2023.

Market Reaction: The European Central Bank's decision to raise interest rates caused the euro to fall against the dollar in the short term, as the market expects a larger rate hike. But soon the euro rebounded as investors believed that raising interest rates would help curb inflation. European stock markets fell sharply after the meeting, reflecting concerns about the outlook for economic growth.

Expert Opinion: David Folkerts-Landau, the chief Eurozone economist at Deutsche Bank, stated that the European Central Bank's interest rate hikes have not met expectations and may need to further increase in the coming months. Goldman Sachs analysts believe that the European Central Bank may raise interest rates to over 3% in 2023. Economists at Crédit Agricole warn that if inflation remains high in 2023, the European Central Bank may have to adopt more aggressive tightening policies.

3. China's GDP growth rate slowed in the first quarter, and the government intensified policies to stabilize growth.

Economic Background: China's economy faced a severe impact from the COVID-19 pandemic in 2022. The GDP growth for the entire year was only 3%, far below the target of 5.5%. In the first quarter of 2023, China's economy continued to face challenges such as insufficient demand and employment pressure, with the manufacturing purchasing manager's index (PMI) continuously below the critical line of 50.

Important events: To stabilize economic growth, the Chinese government set this year's GDP growth target at around 5% during the National Two Sessions in March and introduced a series of supportive policies. This includes increasing the fiscal deficit ratio, reducing taxes and fees, and increasing infrastructure investment, among others. In addition, China will also strengthen its support for the real estate industry and introduce new employment policies.

Market Reaction: The Chinese government's stable growth policy has led to a rebound in the domestic stock market. Both the Shanghai Composite Index and the Shenzhen Component Index have risen after the Two Sessions. The RMB exchange rate has also appreciated slightly. However, overseas investors remain cautious about China's economic outlook, and foreign capital experienced a net outflow during the Two Sessions.

Expert Opinion: The Executive Dean of the Chongyang Institute for Financial Studies at Renmin University of China, Ba Shusong, stated that China's GDP growth target of around 5% this year is reasonable, but achieving this target requires stronger policy support. Goldman Sachs analysts believe that the support policies from the Chinese government will help stabilize and recover the economy, but attention must still be paid to pandemic and geopolitical risks. Bloomberg economists warned that if China cannot effectively control the pandemic, economic growth may further slow down.

6. Regulation & Policy

1. The Securities and Exchange Commission held its first cryptocurrency working group meeting, marking the beginning of regulatory outlook.

The U.S. Securities and Exchange Commission (SEC) held its first cryptocurrency working group meeting on March 22 to discuss the applicability of existing securities laws to cryptocurrencies. This meeting marks a significant shift for the SEC in terms of cryptocurrency regulation.

The conference focused on how securities are defined in the cryptocurrency space. Attendees included industry experts, academics, and SEC officials. Some critics have pointed out that the SEC's past regulatory approach has clearly failed to achieve goals such as investor protection, capital formation and market efficiency. They called on builders to leverage a clear regulatory framework to drive innovation and decentralization, emphasizing the importance of trust and regulation.

Meanwhile, a new working group led by SEC acting chair Mark Uyeda has begun to reverse the aggressive cryptocurrency enforcement policies. The article also points out that the new regulatory rules will make it easier to identify and shut down bad actors, while protecting legitimate projects and consumer interests. Finally, it encourages projects to use tokens as legitimate tools, looking forward to a bright future for cryptocurrencies in the United States.

Industry insiders welcomed the conference. Miles Jennings from Andreessen Horowitz stated that the SEC has finally realized the need to change its regulatory approach. Rodrigo Seira from Cooley LLP emphasized that the intent to purchase an asset does not automatically classify it as a security. Overall, the industry hopes that the SEC will establish a clear regulatory framework for cryptocurrencies, creating a favorable environment for industry development.

2. Trump calls for breakthrough regulation of stablecoins and "simple and reasonable rules"

Former President Trump delivered an online speech at the Digital Assets Summit in New York on March 22, calling on Congress to pass a stable cryptocurrency regulatory law and outlining plans to make the United States a leader in fintech and digital currency.

Trump pointed out that stablecoins play a key role in payment and financial infrastructure, but there is currently a lack of a clear regulatory framework. He called for the establishment of "simple and reasonable rules" to ensure the safety and transparency of stablecoins without stifling innovation.

The Trump administration plans to acquire digital assets through an independent budgeting mechanism without imposing additional costs on taxpayers, embracing innovation in the digital asset space. He also mentioned potentially using profits generated from the U.S. gold reserves to fund a strategic Bitcoin reserve.

The speech has sparked a warm response in the market. Cryptocurrency supporters believe that clear regulation will benefit the long-term development of the industry and attract more institutional investors. However, there are also critics who worry that excessive regulation could stifle innovation and question the necessity of the government holding Bitcoin reserves.

Experts analyze that Trump's appeal reflects the growing influence of cryptocurrency in Washington. Regulatory clarity will not only benefit the development of stablecoins but will also promote innovation across the entire cryptocurrency ecosystem. However, specific regulatory details and implementation methods still need further clarification.

3. The Securities and Exchange Commission issued a statement: PoW mining does not constitute a securities offering.

The U.S. Securities and Exchange Commission issued a statement on March 22, clearly stating that proof of work ( PoW ) mining activities do not constitute a securities offering and are not subject to securities regulations. This move provides regulatory clarity for miners, eliminating the need for registration.

The statement pointed out that the SEC will focus on the mining of cryptocurrency assets that are inherently linked to the programmatic operation of public, permissionless networks, which are used to participate in network consensus mechanisms or maintain network operations. The SEC refers to these assets as "covered cryptocurrency assets," and their mining activities are defined as "protocol mining."

This statement aims to create a favorable regulatory environment for miners and mining activities. In the past, miners have faced regulatory uncertainty and the risk of being considered as issuing securities. The clear guidance this time alleviates this concern for miners.

Miners and mining companies welcome this. Fred Thiel of Marathon Digital Holdings stated that this is a positive development in cryptocurrency regulation from the SEC. Jason Les of Riot Blockchain believes that the statement will bring more certainty to the industry.

However, some analysts also point out that the statement only covers PoW mining, and the applicability to other consensus mechanisms such as PoS remains to be clarified. In addition, the SEC may propose new regulatory requirements for other participants such as mining pool operators in the future.

Overall, the SEC's statement is seen as a positive for miners, helping to attract more capital into the mining industry. However, it is still necessary to closely monitor the SEC's subsequent actions regarding cryptocurrency regulation.