The crypto market is experiencing a big pump, with AI and PayFi leading the way. The Movement event has triggered reflection within the industry.

This week, the crypto market saw a significant pump, with the Ethereum ecosystem and AI sectors rising over 20%. Meanwhile, Movement experienced a price crash due to issues with its market-making protocol, sparking reflections on industry ethics and regulation. The AI and payment finance (PayFi) sectors are accelerating their development, with a well-known public chain promoting the MCP standard and multiple exchanges laying out payment ecosystems. These trends indicate that the crypto market is facing a new round of reshuffling and opportunities.

The Movement event is the focus of this week. The project raised over $40 million, but it has been embroiled in controversy due to allegations of price manipulation related to its agreement with the market maker Rentech. The terms of the agreement include an incentive mechanism, where if the token's valuation exceeds $5 billion, Rentech can liquidate and share profits with the foundation. This has been criticized as encouraging artificial price inflation followed by sell-offs, posing a potential manipulation risk. The incident has exposed the lack of regulation in market-making mechanisms and the opacity of the legal framework.

The AI field continues to maintain its heat. A well-known public chain provides an AI integration framework for developers through MCP and a series of support programs. In 2024, AI company financing will exceed $100 billion, a year-on-year growth of 80%. AI startups perform better than non-AI companies in early funding rounds. The United States dominates AI financing, with AI financing accounting for 46.4% of the total value of venture capital transactions in the U.S. in 2024.

In the PayFi sector, multiple exchanges have launched payment products focused on stablecoin payments. This confirms the potential of the PayFi sector, especially against the backdrop of regulatory compliance for stablecoins.

In terms of policy, New Hampshire passed the Strategic Bitcoin Reserve Act, authorizing state treasurers to purchase Bitcoin. This marks the entry of the United States into the compliant investment field of cryptocurrency. However, the U.S. Senate has rejected the Stablecoin Innovation and Security Act, temporarily hindering the establishment of a unified federal regulatory framework.

Overall, the crypto market has seen new trends in regulation, innovation, and investment, bringing opportunities and challenges for industry development.