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Zhao Changpeng: AI cannot solve the inflation problem, Bitcoin has unique value storage properties

Binance founder CZ recently posted on social media that artificial intelligence (AI) and Bitcoin (BTC) serve different functions; AI drives productivity improvements, while Bitcoin is used to combat inflation and protect wealth. CZ stated, "AI is great, but it cannot protect you from the effects of inflation; Bitcoin can."CZ believes that the market often views AI and Bitcoin as two major hot investment themes, but their natures are fundamentally different. AI is a technology that enhances business efficiency and economic productivity, while Bitcoin is a digital asset with a fixed supply. He pointed out that the AI industry is rapidly developing, with global companies continuously investing billions of dollars in AI software, data centers, chips, and other infrastructure, driving transformations in various sectors such as healthcare, finance, and manufacturing. However, AI companies can issue more shares and raise funds for expansion, and their investment value still depends on business performance and market competition. In contrast, Bitcoin has a total fixed supply of 21 million coins, and holders possess a non-dilutable scarce asset. CZ believes this characteristic gives Bitcoin long-term value storage properties, providing protection when the purchasing power of fiat currency declines due to inflation.CZ has also previously stated that the AI boom may attract some funds that would have originally flowed into the Bitcoin market. As AI companies like OpenAI and Anthropic gain more capital attention, some investors may sell other assets to allocate to AI-related investments. However, CZ believes that AI and Bitcoin are not in competition; rather, they should be viewed as complementary assets: AI drives technological advancement and productivity improvements, while Bitcoin offers a way to store value that is unaffected by supply expansion.

Allbridge suffered a loss of approximately $1.65 million due to a flash loan attack, and the cross-chain protocol has been suspended

According to Decrypt, the cross-chain bridge protocol Allbridge has suspended its Core protocol due to a flash loan attack, with the attacker having stolen approximately $1.65 million in assets from the Solana stablecoin liquidity pool.According to analysis by blockchain security firms PeckShield and CertiK, the attacker borrowed $1.12 million in flash loan funds through the Solana lending protocol Kamino, and then manipulated the price mechanism within the Allbridge pool through multiple stablecoin exchange operations to exchange assets at a low price, subsequently transferring the funds across chains to an Ethereum address.During the attack, the attacker exchanged several thousand dollars in USDT to obtain approximately $2.24 million in USDC, and then bridged the funds to Ethereum for further dispersal. It is currently unclear whether some of the funds can still be recovered.Allbridge stated that the team has suspended the Core protocol for security reasons and has requested affected liquidity providers to withdraw their funds immediately. Due to the attack causing an imbalance in the liquidity pool, some traders profited from arbitrage opportunities. Allbridge has called on relevant users to return their profits, stating that the funds will be used to compensate affected LPs.The team indicated that there is no further risk to user funds at this time and will release a detailed incident analysis report after completing the investigation, while also planning to relaunch the Core protocol after removing the liquidity pool. This is the second time Allbridge has encountered a similar flash loan attack. In April 2023, the protocol's BNB Chain liquidity pool suffered a loss of approximately $573,000 due to a similar vulnerability, after which the project team stated that they had recovered most of the funds and adjusted the liquidity calculation mechanism.

U.S. Senator: The CLARITY Act will ensure that customers' crypto assets remain the property of the customers in the event of an exchange bankruptcy

According to Bitcoin.com, U.S. Senator Cynthia Lummis stated that the CLARITY Act will change the way customer crypto assets are handled when digital asset platforms enter bankruptcy proceedings; customer assets should continue to belong to the customers, rather than being included in the company's bankruptcy estate.The bill requires regulated digital asset intermediaries to treat customer cash and digital assets as customer property and to segregate them from company property. The bill also generally prohibits brokers, dealers, and exchanges from using customer assets for their own or others' benefit without authorization.The bankruptcies of Celsius and Voyager sparked disputes over the ownership of customer deposits. In January 2023, U.S. Bankruptcy Judge Martin Glenn ruled that the cryptocurrency deposited in Celsius Earn accounts became company property under the terms of use, involving approximately 600,000 Earn accounts and about $4.2 billion in assets.Lummis stated that the CLARITY Act also aims to provide regulatory certainty for developers, enhance investor protection, and improve market integrity. The bill will clarify the responsibilities of the U.S. Securities and Exchange Commission (SEC) and the U.S. Commodity Futures Trading Commission (CFTC) in different areas of the crypto market, and it has already passed the House of Representatives but has not yet passed the Senate.

Goldman Sachs: Inflation pressures in the U.S. are spreading, and Federal Reserve Chairman Waller is facing pressure to raise interest rates

According to Jinshi reports, Goldman Sachs' latest research report shows that inflationary pressures in the United States are spreading from a few industries to a broader range of sectors. Although the current inflation level has not yet reached the peak of 2022, the coverage of rising prices is expanding, posing greater challenges for Federal Reserve policy. Goldman Sachs economist Jessica Rindels analyzed the degree of inflation diffusion based on the Personal Consumption Expenditures (PCE) price index, which the Federal Reserve focuses on, using a six-month annualized change rate.The data shows that compared to the average inflation level from 1990 to 2019, the pressure index for inflation categories exceeding 3% has reached about "6," while this index was "10" at the peak of inflation in 2022.The report points out that areas such as audio-visual equipment, financial services, healthcare, and transportation have become significant sources of current price increases. Meanwhile, housing rent inflation, which has a high weight in the PCE, is expected to fall below 3% in the fourth quarter of this year, potentially becoming an important factor in alleviating inflationary pressures.Goldman Sachs' analysis resonates with the recent concerns of new Federal Reserve Chairman Kevin Warsh regarding the "diffusion" of inflation. Warsh stated that preventing price increases from spreading to more sectors of the economy is an important task for the Federal Reserve. However, unlike the more explicit policy communication style of former Chairman Powell, Warsh currently refuses to provide specific guidance on interest rate paths.Jeremy Schwartz, a senior U.S. economist at Nomura Securities, stated that the Federal Reserve is reducing its forward guidance to the market, and this policy uncertainty has increased concerns on Wall Street. Meanwhile, hawkish voices within the Federal Reserve are rising. Dallas Federal Reserve President Logan has expressed support for moderate interest rate hikes, believing that the current economic resilience does not match the inflation risks.

U.Today: Gate Polymarket leads the popularization of prediction markets, with a cumulative trading volume exceeding 622 million dollars

According to U.Today's latest in-depth report, as the prediction market continues to heat up, sports events are becoming an important engine driving industry growth. As the world's first centralized trading platform integrated with Polymarket, Gate Polymarket significantly lowers the user participation threshold through a wallet-free, cross-chain-free, and gas-free trading experience. Users can directly participate in predictions using USDT in their Gate accounts without complex on-chain operations.Currently, Gate Polymarket has become one of the largest traffic entrances for Polymarket, with a cumulative trading volume exceeding $622 million as of July 16, and a weekly trading volume surpassing $100 million on July 6, ranking first in daily, weekly, and monthly trading volumes across all channels of Polymarket.The report points out that the 2026 World Cup has become one of the important catalysts for the rapid growth of the prediction market. The World Cup Hub, built around the World Cup, integrates event schedules, leaderboards, real-time scores, match reminders, historical data, and prediction trading, continuously attracting a large number of users to participate in sports predictions, further enhancing the activity and market liquidity of Gate Polymarket.U.Today believes that Gate not only lowers the usage threshold of the prediction market but also further improves the product experience by launching innovative features such as a dual-mode trading interface, AI event analysis, smart money fund tracking, real-time capital flow reminders, and event contracts, helping users discover market opportunities more efficiently. Relying on the convenient experience of a centralized trading platform and the deep integration with Polymarket's decentralized prediction market, Gate is continuously expanding the application scenarios of the prediction market, promoting the on-chain prediction market towards a more open, efficient, and popular development stage.
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