credibility

Former SEC Acting Chairman Mark Uyeda stated that the agency will withdraw the cryptocurrency case in early 2025 to maintain its credibility in court before a significant policy shift.

Regarding the Federal Reserve's decision to raise interest rates by 25 basis points as expected in the September meeting, Huobi HTX Chief Analyst Andy pointed out that what truly deserves attention is the comprehensive hawkish shift in the Federal Reserve's stance. All 12 officials rarely supported the decision unanimously, and the dot plot clearly indicates another rate hike within the year, with tightening becoming a consensus.The core message conveyed by the meeting is that the Federal Reserve is determined to rebuild its credibility against inflation at all costs. The economic forecast summary raised growth expectations and lowered the unemployment rate, reflecting confidence in a soft landing; however, the path for core inflation to decline has been significantly delayed, indicating that the higher-ups have accepted the reality of "higher for longer." Chairman Waller's statement is particularly crucial, placing anti-inflation efforts as an absolute priority. Even though the current economic fundamentals are robust and oil price fluctuations are supply-side factors, the Fed still chooses to respond with a tightening stance. This "better to be too tight than too loose" position has temporarily pushed up U.S. Treasury yields and the dollar, while suppressing gold.For the cryptocurrency market, uncertainty has actually decreased. A clearer policy path helps compress risk premiums, which is not a bad thing for risk assets in the medium to long term. The key going forward lies in data validation: if employment and growth remain strong, rate hikes may continue but at a slower pace; if the economy shows cracks, there is still room for a policy shift. Overall, the Federal Reserve is trading short-term pain for long-term policy credibility.

Former senior officials of the Bank of Japan warned that U.S. Treasury Secretary Janet Yellen's "unusual" intervention in Japan's monetary affairs could undermine the credibility of the Bank of Japan and trigger greater volatility in global markets.Markets expect the Bank of Japan to raise interest rates by 25 basis points at next week's meeting. Yellen claimed to have insider information about the intentions of the Bank of Japan, and Finance Minister Shunichi Suzuki stated that her remarks were "a bit frightening."

Pablo Hernández de Cos, General Manager of the Bank for International Settlements (BIS), stated that stablecoins lack credibility in large-scale payment scenarios, making it difficult to use them as everyday currency. He believes that tokenized bank deposits are a better alternative, capable of achieving the advantages of tokenization while retaining the foundation of the monetary system. This statement comes against the backdrop of regulatory agencies in various countries establishing a regulatory framework for stablecoins.Hernández de Cos also acknowledged that stablecoins could lower government borrowing costs but might also increase bank financing costs, which would then be passed on to household and business loan rates. He pointed out that the interoperability between stablecoin platforms is limited, anti-money laundering controls are inconsistently enforced, and the widespread use of dollar-pegged stablecoins overseas could undermine the monetary sovereignty of other countries and the effectiveness of domestic monetary policy.On the same day, the Financial Stability Institute (FSI) under BIS released a research report comparing the stablecoin regulatory rules of the United States, European Union, United Kingdom, Hong Kong, and Singapore, finding significant differences in the qualifications of issuing entities and the scope of business they can conduct across jurisdictions. The United States and Singapore impose stricter restrictions on non-bank issuing entities, while Hong Kong, the United Kingdom, and the European Union allow certain additional businesses under separate authorization or licensing.

On August 24, a portfolio manager at Fidelity International stated that the gold holdings of the fund he manages have doubled in the past three weeks, attributing this move to increased uncertainty surrounding Federal Reserve policy. After raising the gold allocation in the fund to his self-imposed limit of 5%, George Efstathopoulos mentioned that he would consider increasing this limit if the dollar's status as a safe-haven asset continues to decline. Following the Federal Reserve's July meeting, investors have been selling long-term government bonds, and it is against this backdrop that George began to increase his gold holdings."My understanding is that this is due to the Federal Reserve's lack of credibility and the intensification of policy uncertainty," George stated. He also noted that the U.S. Treasury unexpectedly increased its repurchase of long-term bonds, which seems more like "manipulating yields rather than addressing the fundamental reasons for why yields are rising." "Today, the focus on gold is no longer on the rise in yields themselves, but rather on why yields are rising."

According to Jinshi reports, Joseph Lavorgna, Chief U.S. Economist at Sumitomo Mitsui Banking Corporation, stated that if the inflation rate does not slow down, Federal Reserve policymakers will lose their hard-earned credibility. He pointed out that in the past 70 years, there have only been six instances where the core inflation rate decreased year-on-year by 0.9% or more, and each time the inflation slowdown was due to the Federal Reserve tightening its policy.Lavorgna emphasized that the longer the Federal Reserve waits, the greater the probability that interest rates will rise above necessary levels.

According to the latest data from CertiK Skynet, Websea has maintained a security rating of over 80 in the A-grade high score range after completing its third round of professional penetration testing, with its overall ranking showing a steady upward trend, continuing to rank among the top in the global exchange security list.This assessment covers core dimensions such as smart contract security, system architecture stability, risk control mechanisms, and asset protection capabilities. The comprehensive assessment results further confirm that Websea has a highly mature and robust security system, with overall security performance at a high level within the industry. As a mainstream third-party security organization in the industry, CertiK's continuous audit and penetration testing results further strengthen Websea's long-term industry endorsement in terms of security transparency and credibility among global exchanges, and also enhance market recognition of Websea's security and credibility.

According to Jinshi News, former New York Fed President Dudley warned that, given the long-term failure to achieve the 2% inflation target, the Federal Reserve's credibility as an "inflation fighter" is at risk of being lost. He stated that inflation has been above the Fed's target for more than five consecutive years, and there is a risk of inflation expectations becoming unanchored. This statement highlights the challenges faced by the new Fed Chair Waller.

According to Jinshi reports, European Central Bank Governing Council member Lane stated that it may be necessary to raise interest rates to maintain credibility in adverse circumstances. He pointed out that the current situation is developing towards an adverse scenario.

ZachXBT posted on platform X that the founder of LAB released philosophical nonsense while participating in the manipulation of the CEX market that harms retail investors; they attempted to contact privately, but the message was read and not replied to; the scammers further undermined the last remaining credibility of the industry.

DefiLlama founder 0xngmi has outlined three possible courses of action that KelpDAO may take following the rsETH hacking incident. Each of the three paths has significant flaws, and the final decision will test KelpDAO's credibility and Aave's risk tolerance.Path One: All users share the losses. KelpDAO will uniformly deduct 18.5% of the losses from all rsETH holders proportionally. Currently, there are about 666,000 rsETH collateralized across the Aave network, primarily highly leveraged on the mainnet and L2 (assuming all are at a 95% liquidation LTV). Once socialized losses occur, the equity of all positions on the mainnet will be completely wiped out, resulting in approximately $216 million in bad debt. The Umbrella protocol can cover $55 million in bad debt, and the Aave treasury will additionally bear $85 million, leaving a gap of about $76 million. KelpDAO may fill this gap by borrowing or selling Aave tokens (currently valued at about $51 million), but this would still put significant pressure on Aave, and all users would need to share the losses.Path Two: Directly rug the rsETH holders on L2. KelpDAO will only guarantee the mainnet rsETH and consider the rsETH on L2 as worthless. Currently, Aave L2 has about $359 million in rsETH collateral (calculated at current oracle prices), and if all are calculated at maximum leverage, it would result in approximately $341 million in bad debt, which cannot be covered by the Umbrella protocol at all. Aave can only use the treasury or borrowing to save part of the market, most likely abandoning chains like Arbitrum, Mantle, and Base, which have the largest losses, leading to a collapse of these L2 markets. This option has a minor impact on the Aave mainnet but would severely damage the credibility of the L2 ecosystem and could trigger a chain reaction.Path Three: Attempt to refund only the holders based on a snapshot taken before the hack, which is extremely difficult to execute. KelpDAO tries to fully refund only the rsETH holders based on the snapshot taken before the hack, while subsequent buyers or transfer holders would bear the losses themselves. However, since funds have significantly flowed after the attack, and the nature of DeFi protocols is liquidity pools, it is impossible to truly distinguish between different batches of depositors, making technical execution very challenging. The hacker borrowed $124 million on the Aave mainnet and $18 million on Arbitrum, and after deducting the coverage from the Umbrella protocol, there remains about $91 million in losses. Although this plan theoretically minimizes the spread of impact, its practical implementation is nearly impossible and could easily lead to legal and community disputes.

According to Jinshi reports, former U.S. Treasury Secretary Yellen stated that Federal Reserve Chair nominee Kevin Warsh lacks "credibility" in advocating for interest rate cuts.

According to Newspim, Lee Chan-jin, the head of the Financial Supervisory Service (FSS) of South Korea, stated that the "Bitcoin misdelivery incident" at Bithumb is a serious event that undermines the credibility of cryptocurrency exchanges. He pointed out that Bithumb actually holds only about 42,000 bitcoins, and this misdelivery exposed the severe risks of "bookkeeping transactions" trading fictitious assets without security guarantees.He emphasized that if the investigation confirms illegal negligence, the highest level of sanctions will be imposed, including fines and business suspensions. He also suggested adding provisions for revocable or restricted access licenses in the future "Basic Law on Digital Assets" to strengthen the regulation of internal controls at exchanges.The incident occurred on February 6, when Bithumb mistakenly distributed 2,000 bitcoins to each of 249 customers as rewards (originally intended to be 2,000 Korean won), totaling 620,000 bitcoins, which was valued at approximately 61 trillion won (about 45 billion USD) at the time. Bithumb intercepted the transactions within 20 minutes, but 125 bitcoins were still sold.

According to Jinshi reports, Federal Reserve Vice Chairman Jefferson stated that anchoring expectations indicates that the Federal Reserve still has credibility regarding its inflation targets.

Web3 governance reputation platform DAO AI has officially launched the 0G mainnet, anchoring DAO governance reputation to a decentralized data availability layer. The platform aims to address the challenges of lacking long-term memory and reputation records in DAO governance by transforming governance data such as participation frequency, contribution levels, and representative actions into a permanent on-chain state, thereby building an immutable and verifiable governance reputation layer.In terms of technical implementation, DAO AI utilizes 0G storage technology to record all governance actions, including participation timestamps, representative actions, and reputation updates, ensuring the transparency and auditability of governance history. Unlike traditional off-chain statistics or temporary analyses, this system makes reputation a fundamental primitive acquired through actions rather than capital, and is directly protected by the storage layer. With the high throughput and data availability guarantees of the 0G network, DAO AI provides infrastructure support for the long-term preservation and cross-protocol access of governance data, helping DAOs establish trustworthy governance records.

Web3 asset data platform RootData published a daily transparency alert on Twitter (X), stating that projects such as CureX, Blocktrade, BETRMINT, ABCC, TradeOgre, and Bilaxy are missing core information. It calls on project teams to submit/update their information on RootData to improve their transparency scores. Additionally, RootData stated that it will continue to monitor and expose "black box" projects that lack core information.It is reported that the RootData transparency score is used to measure the integrity and timeliness of projects, aiming to reflect the information disclosure status of the projects. The transparency score is divided into 5 levels from A to F, with lower scores indicating that the project's information disclosure is less complete and the risk of malfeasance is higher, requiring investors to exercise heightened caution.

RootData has launched a token unlock bounty program aimed at co-building data transparency for the Binance Alpha project and ensuring investors' right to know. The event runs from January 8 to 18. Participants can enter the RootData official collection “Dig Deep into Binance Alpha Projects Transparency” and review the projects within, providing feedback on the project detail pages, to compete for generous rewards.It is reported that compared to the previous bounty program, this event has a broader range of feedback types, not limited to missing or mismatched token unlock information, but also supporting feedback on missing/ambiguous core team or controlling person information, suspicious financing data, and information inconsistent with Binance's official disclosures.The total prize pool for this event has been reset to 5000 USDT, embodying the core philosophy of "data is king" to ensure investors' right to know and market fairness. RootData emphasizes that the bounty program is not just about rewards, but aims to lay a transparent foundation for the blockchain data ecosystem, empowering the community to build a trustworthy future together.Click to view detailed rules | event collection.

According to Jinshi reports, Federal Reserve's Bostic stated that years of failing to meet the inflation target "could very likely jeopardize" the credibility of the Federal Reserve.