Crypto Morning Brief: Offshore Yuan Breaks Through 7.0 Against USD Again, Trust Wallet Users' Funds Stolen

深潮Published on 2025-12-26Last updated on 2025-12-26

Abstract

Crypto Morning Brief: Offshore RMB breaks through 7.0 against the USD again, while Trust Wallet users suffer a security breach with at least $6 million stolen. Bitcoin mining difficulty slightly increased to 148.26 T. Hong Kong is moving towards legislation for OTC digital asset trading and custody services. Analysts report significant losses for Trend Research's ETH holdings. CZ is noted as a beneficiary of Trump's informal clemency process. AI-related crypto tokens have lost 75% of their value in 2025. Infinex reduces its INX token sale valuation to $99.99M. Pantera Capital predicts trends for 2026 including AI-integration and tokenized gold. Major exchanges like Binance lead in liquidity and derivatives trading. Concerns are raised about legal risks associated with crypto-backed payment cards in China.

Author: Deep Tide TechFlow

Yesterday's Market Dynamics

Offshore yuan breaks through the 7.0 mark against the US dollar again, onshore yuan breaks through 7.01

According to Sina quotes, the offshore yuan once again broke through the 7.0 mark against the US dollar. According to China Foreign Exchange Trade System, the onshore yuan broke through the 7.01 mark, hitting a new high since September 27, 2024.

Bitcoin mining difficulty increases by 0.04% to 148.26 T

According to CloverPool data, Bitcoin mining difficulty adjusted on December 25, 2025, at 11:48:06 (at block height 929,376), increasing by 0.04% to 148.26 T. The current seven-day average network hash rate is 1.08 EH/s.

Wu Jiezhuang: Legislation on digital asset OTC trading and custody can legitimize related services and combat fraud

Hong Kong Legislative Council member Wu Jiezhuang posted on X platform: "Welcome the Hong Kong SAR Government's Financial Services and the Treasury Bureau's new developments in promoting digital asset trading. The legislative proposal for digital asset trading and custody services has officially entered consultation, representing a further clarification of related digital asset regulatory activities and responding to market demands and ideas. Past consultations with the industry on the direction of related OTC trading and custody services have received many opinions. This proposed legislation can not only legitimize crypto and digital asset OTC trading and custody services, allowing the industry to operate more compliantly, but also combat suspected fraudulent activities disguised as such services."

"On-chain detective" ZachXBT: Trust Wallet users' stolen funds reach at least $6 million

According to on-chain detective ZachXBT (@zachxbt) monitoring, hundreds of Trust Wallet users have experienced fund theft, with losses amounting to at least $6 million. ZachXBT stated that if the responsibility is confirmed to belong to Trust Wallet, the platform may need to compensate the affected users.

Additionally, Trust Wallet issued an announcement: A security vulnerability was found in browser extension version 2.68, users need to upgrade immediately.

Analyst: Verified Trend Research ETH actual entry cost is about $3150

On-chain analyst Ai Aunt (@ai 9684xtpa) posted saying, according to confirmation by Yi Lihua himself, the actual entry cost for the 645,000 Ethereum (ETH) accumulated since November by his institution Trend Research is about $3150, currently floating a loss of about $143 million. Yi Lihua stated that subsequently $1 billion will be invested to continue increasing holdings, expecting to control the average ETH holding cost to about $3050.

WSJ: Zhao Changpeng becomes beneficiary of Trump's "informal pardon", exposes "pardon deal" market price of millions

The Wall Street Journal published an article disclosing that "Zhao Changpeng became one of the beneficiaries of a new, informal presidential pardon path emerging during Trump's second term. According to people around Trump, this new approach is partly driven by Trump's own experience as a criminal defendant, spawning a 'pardon deal' industry, with lobbyists saying their market price is $1 million.

It was revealed that those seeking pardons offered success fees as high as $6 million to some lobbyists close to the president, conditional on them getting it done."

AI crypto tokens market cap plummets 75% in 2025, evaporating $53 billion

According to a CryptoPresales.com report, AI-related cryptocurrencies experienced a severe correction in 2025, with market capitalization falling about 75% year-on-year, wiping out approximately $53 billion in market value. Although they experienced explosive growth in 2023-2024, as hype subsided and liquidity decreased, the market continued under pressure in 2025. The decline intensified in the fourth quarter, with nearly $10 billion evaporated in December alone. Eight major AI tokens fell more than 70%, with Artificial Superintelligence Alliance, Render, and The Graph all falling over 80%. The total market capitalization of AI and big data tokens has now dropped to $16.8 billion.

Infinex founder: Lowers INX token Sonar sale valuation to $99.99 million

Infinex founder Kain Warwick @kaiynne announced that the fully diluted valuation (FDV) for the INX token Sonar sale has been significantly reduced from the originally planned $300 million to $99.99 million, in response to market feedback that the initial pricing was too high. This sale will open for registration on December 27 and officially launch on January 3, aiming to raise $5 million, representing 5% of the total supply. Tokens will have a one-year lock-up period but retain an early unlock mechanism, with the unlock price gradually decreasing from $300 million to $100 million over time. Due to the lower valuation, the sale is expected to be significantly oversubscribed, so allocations for Patron NFT holders are not guaranteed. The entire sale will use an RNG mechanism, with a minimum investment of $200 and a maximum of $2500.

Pantera Capital partner: Predicts DAT consolidation next year, tokenized gold will rise, prediction markets will differentiate

Pantera Capital Junior Partner Jay Yu posted on social media making 12 predictions for 2026 crypto trends, including:

· Capital-efficient consumer credit: Launch of convenient lending applications through on-chain/off-chain credit modeling, modular design, and AI behavior learning.

· Prediction market differentiation: Prediction markets split into financial direction (integrated with DeFi, leveraged) and cultural direction (community-driven, long-tail enthusiasts).

· Agent commerce & x402 expansion: Agent commerce expands to micro-payments and regular payments using x402 endpoints, Solana exceeds Base in low-value transaction volume.

· AI as a crypto interface layer: AI-assisted trading (e.g., trend analysis) becomes mainstream, gradually integrated into consumer applications.

· Rise of tokenized gold: Tokenized gold becomes an important RWA (Real World Asset) asset, chosen as a store of value due to US dollar issues.

· Bitcoin quantum panic: Quantum technology breakthroughs spark institutional discussion on Bitcoin's quantum resistance, technology not yet a threat to value.

· Unified privacy development experience: Privacy technologies (e.g., Ethereum's Kohaku) provide simplified development interfaces, possibly launching privacy-as-a-service.

· DAT consolidation: Digital Asset Trading platforms (DAT) consolidate to 2-3 per major market, achieved through liquidation or merger.

· Rethinking token & equity separation: Governance token crisis prompts companies to choose privatization, possibly introducing redeemable equity tokens.

· Perpetual DEX consolidation: Hyperliquid dominates the market, HIP3 markets and yield stablecoins (e.g., HyENA) become key, USDC loses ground on HYPE.

· Multi-chain Prop AMM: Prop AMM expands to multi-chain, accounts for over half of Solana trading volume, prices more assets like RWA.

· Traditional fintech adoption of stablecoins: Stripe, Ramp, etc. use stablecoins for international payments, stablecoin chains like Tempo become fiat on-ramp bridges.

Jay Yu claimed his prediction accuracy rate for 2025 was as high as 7/10, including accurate predictions on Solana developer migration.

CoinGlass annual report: Binance, OKX, Bitget lead BTC, ETH liquidity

CoinGlass released the "2025 Cryptocurrency Derivatives Market Annual Report". The report shows that in the 2025 bilateral liquidity depth ranking for major assets like BTC and ETH, Binance, OKX, and Bitget ranked top three among global CEXs respectively.

In terms of derivatives trading volume and market share, Binance ranked first with approximately $77.45 billion in average daily trading volume and a 29.3% market share; OKX ranked second with $33.2 billion in average daily volume and a 12.5% market share; Bybit ranked third with approximately $29.1 billion in average daily volume and an 11% market share; Bitget ranked fourth with $25.2 billion in average daily volume and a 9.5% market share.

Additionally, CoinGlass conducted a comprehensive scoring and ranking of major derivatives exchanges in the report. The assessment used basic trading data as the core weight, combined with multiple dimensions such as product system, security, transparency, and market quality, to form sub-item scores and a weighted total score. The results showed Binance ranked first with a score of 94.33, OKX ranked second with 88.77, and Bitget ranked third with 83.10.

Caixin: Issuing and using U Cards domestically carries an additional layer of special legal risk

Caixin.com authored an article "The Crazy Ads on Xiaohongshu for U Cards: The Secret of Their Popularity and Fatal Risks". The article points out that users can use bank cards printed with the Visa logo to make payments such as ChatGPT Plus subscription fees, with deductions made through USDT in cryptocurrency wallets. These types of overseas bank cards are commonly known as "U Cards", a type of overseas bank card based on USDT stablecoin payments. The Caixin article also pointed out that issuing and using U Cards domestically carries an additional layer of special legal risk. Whether it is a short-lived transitional product or hides the password to the future payment landscape remains unknown.

Market Dynamics

How Far is the Current U.S. Stock Bull Market from Historical Bubble Peaks?

Title: How Far Is the Current U.S. Stock Bull Market from Historical Bubble Peaks? Summary: According to Goldman Sachs' chief U.S. equity strategist, current market exuberance ranks at the 86th historical percentile. While approaching, this level remains notably below the extremes seen at the peaks of the 2000 dot-com bubble (100th percentile) and the 2021 bull market (95th percentile). The recent 15% surge in the S&P 500 over two months represents one of the strongest volatility-adjusted rallies in over 50 years, primarily fueled by AI-related enthusiasm and backed by significant upward revisions to earnings estimates, providing a more fundamental basis than past momentum-driven peaks. Key risk signals—speculative frenzy, deteriorating growth, heavy equity issuance, and Federal Reserve tightening—are all closer to their historical triggers than a few months ago but are not yet fully activated. For instance, IPO activity is recovering, and market breadth remains narrow, though not at dot-com bubble extremes. The strategist cautions that while the current cycle may not replicate past peaks exactly and a downturn does not require extreme euphoria, risks are accumulating. The overall assessment is that the bull market still has room to run, but the window of opportunity is gradually narrowing.

marsbit9m ago

Rapper Afroman: Doesn't Understand Bitcoin, but Becomes a New Crypto Freedom Fighter

Joseph "Afroman" Foreman, the rapper famed for "Because I Got High," has become an unlikely symbol for the crypto community's libertarian ideals. Following a 2022 police raid on his Ohio home, which yielded no charges, Foreman used the footage to create viral songs mocking the officers, leading to a lawsuit he ultimately won. His defense of free speech against government overreach resonated deeply with attendees at the Bitcoin 2024 conference in Las Vegas, where he performed. Despite admitting he knows little about cryptocurrency and owns none, event organizers saw his personal fight as embodying Bitcoin's core ethos of individual sovereignty and resistance to centralized control. Foreman, a self-described "icon of weed culture," has long performed for paying crowds but found a new political voice after his legal battle. His platform, which includes federal marijuana legalization and police accountability, aligns with the diverse, anti-establishment crowd at the Bitcoin conference, though he remains unaffiliated with any major party. The event featured an auction of his memorabilia, celebrating him as a modern "freedom fighter." In a final surprise, Foreman used his stage time to announce his candidacy for the 2028 U.S. presidential election, thrilling the remaining audience before launching into his signature hit.

Foresight News13m ago

Rapper Afroman: Doesn't Understand Bitcoin, but Becomes a New Crypto Freedom Fighter

Foresight News13m ago

When Doing Cryptocurrency Payment, the First Thing is Licenses, What is the Second?

When launching a crypto payment business, obtaining the necessary licenses is the crucial first step. However, the second, and arguably more critical, step is designing a comprehensive operational framework that forms a coherent business loop. This loop must be clearly understood and executable by all stakeholders: banks, payment partners, exchanges, on-chain analytics providers, regulators, and your internal team. Many projects mistakenly believe a single license permits all operations. Licenses merely grant entry; they don't define how the specific business functions. The real challenge lies in detailing every aspect of the workflow. This involves clarifying the customer base, the flow of fiat and crypto assets, the settlement process, and establishing clear lines of responsibility for risks like AML compliance, sanctions screening, chargebacks, and regulatory inquiries. A robust framework must answer seven core questions: Who are the clients and merchants? Who collects fiat and crypto? Who handles conversion and custody? And who is ultimately accountable for compliance and risk management? Projects often fail not from a lack of licensing, but during due diligence when they cannot convincingly explain these operational details. Therefore, beyond securing licenses, the priority must be constructing a closed-loop system. This system ensures the business model is transparent, risks are managed, responsibilities are delineated, contracts are aligned, and the entire process is comprehensible to partners and regulators. The true competitive edge in crypto payments lies not in acquiring a license quickly, but in integrating licensing, banking, compliance, and operations into a sustainable and executable whole.

marsbit46m ago

When Doing Cryptocurrency Payment, the First Thing is Licenses, What is the Second?

marsbit46m ago

Arthur Hayes Analysis: AI Bubble Nears Burst, Crypto Market Faces Short-Term Pressure

Arthur Hayes argues that the current AI market is a bubble poised to burst, which will exert downward pressure on the crypto market in the near term. The core trigger is rising oil prices due to the US-Iran conflict and a blockade of the Strait of Hormuz. Higher energy costs directly increase the operational expenses of AI data centers, squeezing profit margins for companies like Google, Anthropic, and OpenAI. Hayes predicts that persistent inflation from high oil prices will force Trump, in a bid to win the November election, to turn public sentiment against the AI industry. He may propose regulations and taxes on data centers and AI companies to appeal to voters concerned about costs and job displacement. Such political rhetoric could shatter market confidence. Furthermore, the market is unlikely to healthily absorb the massive concurrent IPOs of SpaceX, Anthropic, and OpenAI, which together seek valuations in the trillions. The combination of soaring energy costs, overwhelming equity supply, and negative political pressure will puncture the AI bubble. Hayes notes that nearly all new USD liquidity since 2022 has flowed into AI, leaving crypto like Bitcoin behind. When the AI bubble bursts, liquidity will contract sharply, pulling down all risk assets, including cryptocurrencies. In response, Hayes's fund, Maelstrom, has sold all AI-related stocks and non-core cryptocurrencies. It maintains core positions in Bitcoin and Ethereum while increasing exposure to energy sector equities, betting on rising oil and gas prices. He expects Bitcoin to bottom after the AI-led market decline, before rallying again with future monetary easing.

Foresight News1h ago

Arthur Hayes Analysis: AI Bubble Nears Burst, Crypto Market Faces Short-Term Pressure

Foresight News1h ago

To C, To B, and the Next Big Thing Called To A

After To C and To B, the Next Wave is To A: Serving AI Agents In a recent quarterly earnings call, Meituan's Wang Xing introduced a new concept: To A (To Agent), signifying that future business services will increasingly target AI Agents as primary clients, not just consumers or merchants. This shift implies that internet giants must now consider how to make their services more appealing for AI Agents to recommend, fundamentally altering traditional distribution logic. This "To A era" is prompting an unusual trend of alliances among major tech companies. Unlike previous competitive battles, firms like Meituan, Tencent, JD.com, Huawei, OPPO, and OpenAI are rapidly forming partnerships. The reason is strategic: as AI Agents become the primary user interface, handling tasks from a single command (e.g., "Book a Japanese restaurant for tomorrow"), the risk for platforms is being bypassed entirely. Companies are positioning themselves within this new value chain. Three primary strategies are emerging: 1. **Super-Entry Points + Service Providers:** Platforms like Tencent's Yuanbao, WeChat, and ChatGPT aim to be the first-stop Agent, integrating various services (food delivery, shopping, travel) from partners like Meituan and JD.com. 2. **Apps as Callable Services:** Companies like Meituan, JD.com, and Uber are ensuring their core services remain accessible and callable by external Agents, shifting from front-end apps to back-end capabilities. 3. **System-Level Agent Entry Points:** Smartphone makers (Huawei, Honor, OPPO) are leveraging their OS-level AI assistants to control the initial user command, redistributing it to relevant service apps. While alliances offer mutual benefit—entry points gain service capabilities, and service providers gain traffic—inherent conflicts of interest exist. A dominant Agent platform could eventually attempt to connect directly with suppliers (restaurants, hotels), bypassing current aggregators like Meituan or Ctrip. Other unresolved challenges include the potential for Agent recommendations to become a new form of paid ranking and unclear accountability for faulty recommendations. The current rush to form alliances is a defensive move by service providers to secure their position before the landscape solidifies. In this To A-driven restructuring, the greatest risk is not losing the race but failing to hear the starting gun.

marsbit1h ago

To C, To B, and the Next Big Thing Called To A

marsbit1h ago

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Crypto Morning Brief: Offshore Yuan Breaks Through 7.0 Against USD Again, Trust Wallet Users' Funds Stolen

Abstract

Yesterday's Market Dynamics

Market Dynamics

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