Son Min

According to Kaito's Token Mindshare (an AI-based web3 search platform's metric that quantifies the influence of specific tokens in the crypto market), the top five crypto-related keywords people were most interested in as of the 19th were Hyperliquid (HYPE), VOOI (VOOI), Avalanche (AVAX), PumpDotFun (PUMP), and Momentum (MMT). Hyperliquid rose to number one amid community-led allegations that it prioritizes protocol profits over traders. Jeff Yen, Hyperliquid's founder, denied this as "baseless," and countered that "on the 10th, Hyperliquid's ADL (auto-deleveraging) system delivered hundreds of millions of dollars in net profit to users by liquidating profitable short positions at favorable prices." In addition, an announcement that decentralized exchange VOOI would reflect Hyperliquid's trading data also had a positive effect. As of 5 PM on CoinMarketCap, Hyperliquid is trading at $36, up 2% from the previous day. VOOI drew significant attention after adding information from various decentralized exchanges, including Hyperliquid, to its platform. VOOI is an on-chain trading aggregation platform designed to allow multiple decentralized exchanges to be used through a single interface. Avalanche attracted attention after M2 Capital, the investment arm of M2 Holdings, invested $21 million in the digital asset treasury of Nasdaq-listed AVAX One. AVAX One is the first Nasdaq-listed treasury company to make a strategic investment in Avalanche. Ecosystem growth also had an impact. Currently, Avalanche's locked-up deposits (TVL) have more than doubled since July of last year. PumpDotFun drew significant interest after rising 10%. As of 5 PM on CoinMarketCap, PumpDotFun is trading at $0.0039, up 9.99% from the previous day. Momentum received attention as its cumulative trading volume surged. According to Momentum's official website on the 18th, Momentum's trading volume exceeded $23 billion, a 15% increase from the previous week. Its locked-up deposits (TVL) stood at $455 million. In addition, work related to launchpads and airdrops is also attracting significant industry attention.

Bank stocks rebound despite fears of a 'second SVB incident' Moody's, UBS: "Not a systemic risk"…market eased Western Alliance maintains earnings guidance despite loan fraud controversy Private credit and commercial real estate emerge as potential flashpoints Shares of small- and medium-sized U.S. banks, which had at one point plunged amid fears that credit troubles could spread into a second Silicon Valley Bank (SVB)-style crisis, have recovered as opinions that the situation is not a systemic risk have emerged. The claim is that these are problems of individual banks and will not spread across the entire financial system. However, some warn that the private credit market and commercial real estate, where weaknesses have been revealed this time, could strike the financial sector again at any time. Bank stocks rebound despite bad loans Bank stocks that recently plunged due to credit troubles — Jefferies, Zions Bancorporation, Western Alliance — all rose together on the 17th (local time). Jefferies and Zions Bancorporation rose nearly 6% that day, and Western Alliance rose more than 3%. The rebound in these bank stocks occurred after some analysts argued that this episode would not spread into a broader financial crisis. Mark Zandi, chief economist at Moody's, said that day, "There are no signs that systemic problems are appearing among regional banks," and added, "Credit quality is generally sound, but there are some weak spots," attempting to calm the situation. UBS's strategy team also said, "The U.S. stock and financial markets rest on a solid macroeconomic backdrop, and the current fear of credit risk is somewhat exaggerated," attempting to curb excessive concern. The rise in bank stocks that day was also aided by a general sense of relief in the market. U.S. President Donald Trump repeatedly stated that he would proceed with a summit meeting with Chinese President Xi Jinping as scheduled. Ross Mayfield, investment strategist at Baird, said, "This afternoon (the 17th) the positive mood is substantially related to the president's remarks about China," and added, "The president seems to understand that tariff threats are not sustainable and the administration does not want to undergo another sell-off like 'Liberation Day.'" Investors were also reassured by reports that Western Alliance had filed with the U.S. Securities and Exchange Commission (SEC) to maintain its existing earnings guidance. Risks remain However, because the root causes of these banks' credit problems have not been resolved, there is continued concern that similar incidents could resurface at any time. Mike Mayo, Wells Fargo's senior bank analyst, warned that as allegations of regional bank failures and fraud spread, risk management and credit screening within banks have weakened. He also pointed out, "The current distress is the result of a lax lending culture accumulated during the credit expansion period." He noted that, in the process of overcoming the COVID-19 pandemic, the U.S. central bank (Fed) injected large amounts of liquidity into the market and that the ultra-low interest rate policy led to relaxed credit screening by banks. Jamie Dimon, CEO of JPMorgan Chase, recently said, "The credit cycle has been loose for too long, and now weak links are starting to appear," which is the same context. The lax regulation of the private credit market is also analyzed as a potential trigger for a financial crisis. Non-bank financial institutions that operate private credit do not take deposits from the general public like banks; instead, they raise funds from a small number of professional investors such as pension funds or sovereign wealth funds. All loans are private, non-public contracts, making it difficult for regulators to accurately grasp the total size of distressed assets or where risks are concentrated. Also, because there are no market prices, fund managers value assets using internal models, making it easier for distress to remain hidden. In particular, concerns have grown that private credit distress could spread across banks as banks increasingly provide private credit to companies through subsidiaries, as Jefferies has done. Peter Curry, senior analyst at Pave Finance, warned, "Non-bank private credit is overly opaque," adding, "Even if problems are not obvious, the market can react." New York = Correspondent Shin-Young Park nyusos@hankyung.com

Ripple's Chief Legal Officer (CLO) Stuart Alderoty recently criticized major media for spreading a narrative that defines virtual assets as 'tools of crime and corruption.' On the 19th (local time), according to CoinDesk, Alderoty said, "Some mainstream outlets are relying on the convenient narrative that 'virtual assets are crime,'" and pointed out that "this is a distorted approach that ignores the actual functions and uses of virtual assets." He added, "Virtual assets are a transparent and traceable technology used in real life by tens of millions of Americans," and said, "Public blockchains have all transaction records publicly available, and crime cannot thrive in the 'broad daylight public square.'" This follows The New York Times' recent series of critical reports on virtual assets. Alderoty emphasized, "Now the narrative must catch up to reality," and "virtual assets are at the center of financial innovation based on transparency and efficiency, and the majority of users are not criminals but sound financial users."

Roman Storm, co-developer of the decentralized finance (DeFi) protocol Tornado Cash, warned of Department of Justice prosecutions of open-source developers. According to Cointelegraph on the 19th (local time), Storm said, "Open-source developers could be at the same risk as me," asking, "Can you be sure the U.S. Department of Justice will not consider you a money services business (MSB) and prosecute you?" He added, "Current U.S. law does not clearly protect open-source developers, and there is a possibility of retroactive prosecutions." In August, Roman Storm was found guilty by a jury on one of three charges, the 'conspiracy to operate an unlicensed money transmission business.' The remaining money laundering and sanctions-violation charges ended without a verdict due to a jury deadlock. The ruling raised new judicial risks for open-source developers and shocked the broader crypto industry. Jake Chervinsky, general counsel at Variant Fund, said, "If the Trump administration wants to make the U.S. a 'crypto hub,' the Department of Justice should not attempt a retrial on the two charges the jury failed to agree on."

Non-fungible token (NFT) trading platform OpenSea will launch its own token 'SEA' in Q1 next year. On the 18th (local time), The Block reported that the OpenSea Foundation said in a statement, "Its own token SEA is scheduled to be launched in the first quarter of 2026." Fifty percent of the total token supply will be distributed to existing users (OG) and participants in the rewards program. At launch, 50% of the platform's revenue will be used to purchase SEA tokens. Additionally, users will be able to stake SEA on collections or tokens they prefer. However, OpenSea did not disclose the total supply, detailed allocation ratios, or the methodology for calculating the buyback ratio. OpenSea said it is pushing to transition from an NFT-focused platform to a multi-chain virtual asset exchange through this token issuance.

Ross Calvin, CEO of Bitcoin (BTC) mining company Parhelion, is pushing to erect a giant 'Prometheus Statue' about 137 meters tall on Alcatraz Island in San Francisco, United States. According to Bloomberg on the 18th (local time), Calvin is leading the project through the nonprofit 'American Colossus'. He said he wants to make Alcatraz Island "a lightning rod symbolizing the West's sublime destiny and a monument honoring America's beauty, heroism, creativity and pioneering spirit." The project is estimated to cost about $450 million (about KRW 620 billion), and Calvin plans to submit a proposal directly to President Donald Trump soon. Meanwhile, in July he launched the 'Prometheus meme coin' through the meme coin issuance platform 'Believe'. Its current market capitalization is about $12,000.

YouTuber MrBeast filed a trademark for 'MrBeast Financial', which includes virtual asset (cryptocurrency) related services, suggesting possible expansion into fintech and Web3. On the 19th (local time), according to CoinDesk, MrBeast's company Beast Holdings recently applied to register the 'MrBeast Financial' trademark with the U.S. Patent and Trademark Office (USPTO). The document included crypto-related financial services such as virtual asset payments, exchange operation, and decentralized exchange (DEX)-based trading. It also specified the provision of downloadable software and Software-as-a-Service (SaaS) tools that can manage virtual asset-related functions. MrBeast, known for large-scale giveaways and content events and as the world's highest-earning YouTuber, and this trademark filing is interpreted as a signal that he may be expanding his business into fintech and Web3. The industry has also raised the possibility of launching a virtual asset on-ramp (deposit/withdrawal channel) or a crypto neobank (digital bank) based on his massive fanbase. The trademark is currently in a pre-examination stage, and it is not yet confirmed whether it will lead to an actual service launch.

It has been argued that stablecoins are a 'Central Business Digital Currency' that carry unique risks compared with central bank digital currencies (CBDCs). According to Cointelegraph on the 15th (local time), Jeremy Kranz, founder of Sentinel Global, said, "Privately issued stablecoins retain the characteristics of CBDCs, such as surveillance, backdoors, and control," adding, "Such privately issued stablecoins should effectively be viewed as 'Central Business Digital Currency.'" He added, "If JPMorgan issues a dollar-pegged stablecoin and controls it based on related regulations such as the Patriot Act, it could freeze users' funds or block account access." He also pointed out that even overcollateralized stablecoins backed by cash and short-term government bonds could face bank-run scenarios. In addition, algorithm-based or synthetic stablecoins, which rely on software structures or complex trading mechanisms, "are at risk of having their peg broken due to sharp volatility spikes or flash crashes in the derivatives market." Meanwhile, according to DeFiLlama, the stablecoin market exceeded 300 billion dollars as of October and is currently around 307 billion dollars.

The virtual asset (cryptocurrency) Fear & Greed Index rose 6 points from the previous day, showing an increase in investor sentiment. The Fear & Greed Index is an indicator of market sentiment: values closer to 0 indicate extreme fear, while values closer to 100 indicate extreme greed. On the 19th (local time), the Fear & Greed Index provided by virtual asset analytics firm Alternative is currently 29 out of 100, entering the 'Fear' stage. The index rose 6 points from the previous day (23 points), showing that market sentiment has significantly recovered. The Fear & Greed Index is calculated based on volatility (25%), trading volume (25%), social media (15%), surveys (15%), Bitcoin market cap dominance (10%), and Google search volume (10%).

Over the past 24 hours, the position liquidation size in the crypto assets (cryptocurrencies) perpetual futures market was recorded at 1,308,290,000 dollars. According to Coinglass data on the 19th (local time), a total of 1,308,290,000 dollars worth of futures positions were liquidated in the crypto assets market over the past 24 hours. Specifically, long positions worth 74,970,000 dollars were liquidated, and short positions worth 63,320,000 dollars were liquidated. The asset with the largest liquidation size was Ethereum (ETH). Ethereum saw 32,300,000 dollars in position liquidations over 24 hours, of which long positions and short positions accounted for 13,370,000 dollars and 18,930,000 dollars, respectively. Bitcoin (BTC) had 11,950,000 dollars in liquidations during the same period, of which long positions accounted for 5,310,000 dollars and short positions accounted for 6,640,000 dollars.

Michael Barr, a Federal Reserve (Fed) governor and former head of financial supervision, warned that care must be taken in designing future stablecoin regulations to avoid repeating past failures of private money. On the 17th (local time), according to CoinDesk, Barr said at a fintech week event in Washington, D.C., "When issuing liquid liabilities redeemable at par, private money is exposed to the risk of 'runs' if investor confidence is fragile, even if the collateral assets are high-quality." He warned that including uninsured deposits or volatile short-term repurchase agreements (overnight repo) as reserves could increase risks. He added, "Historically, privately issued money issued under inadequate safeguards has led to financial crises," citing the Reserve Primary Fund's failure to maintain its $1 peg during the 2008 global financial crisis and the liquidity crunch during the COVID-19 pandemic. The U.S. passed the 'U.S. Stablecoin Innovation and Guidelines Act (GENIUS Act)' last September, but regulators such as the Federal Reserve and the Treasury have not yet drafted detailed implementing rules. In the market, Tether, issuer of USDT, still dominates as the world's largest stablecoin despite operating a reserve structure that does not meet U.S. standards. Barr said, "Stablecoin issuers have an incentive to maximize returns on reserve management; this increases returns in good times but can lead to a loss of confidence when market stress occurs." He emphasized, "Stablecoin regulation must include robust safeguards to protect users and ensure financial stability."

Russia has overtaken the UK and Germany to rank first in crypto adoption in Europe. On the 17th (local time), Chainalysis released the 'European Crypto Adoption Report', which showed that Russia received a total of $376.3 billion worth of crypto assets from July 2024 to June 2025, emerging as the largest market in Europe. This figure represents a 48% increase from the previous year ($256.5 billion) and is about 30% more than the UK, which recorded $273.2 billion. The report stated that the increase in crypto trading in Russia was particularly pronounced in the institutional sector. Large transactions of $10 million or more surged 86% year on year, which is double the European average increase (44%). In the small retail investor sector, Russia's growth rate was also about 10% higher than other European countries. Chainalysis said, "Russia's DeFi usage surged more than eightfold as of early 2025," adding, "This indicates that the use of crypto across financial services is rapidly spreading."

French financial authorities have launched additional anti-money laundering (AML) checks targeting major virtual asset exchanges, including Binance, as they move to secure leadership in virtual asset regulation within the European Union (EU). On the 17th (local time), Cointelegraph reported that the French Prudential Supervision and Resolution Authority (ACPR) has been examining since last year whether Binance and multiple exchanges comply with rules related to anti-money laundering and counter-terrorist financing (CFT). According to anonymous sources, the checks are being conducted privately, and whether exchanges have strengthened their internal control systems is a key focus of the inspection. Earlier last year the ACPR requested that Binance strengthen its risk management framework. In response, a Binance spokesperson said, "Consultations with the ACPR are part of the ongoing supervisory process for firms registered for anti-money laundering," and "such checks are routine and are standard procedures carried out simultaneously on dozens of exchanges." French regulators plan to use this investigation to verify whether exchanges are properly implementing the EU's market order and anti-money laundering regulation (MiCA, Markets in Crypto-Assets Regulation). Companies found to have deficiencies as a result of the checks will receive remediation orders within months, and will be required to bolster internal controls, risk management, and cybersecurity personnel. This measure coincides with the French government's moves to expand its leadership within the European virtual asset regulatory framework. Last September, the French Financial Markets Authority (AMF) said, "Differences in regulatory levels between EU countries can create an unbalanced regulatory environment for virtual asset operators," and suggested it may curb companies operating in France based on licenses obtained in other countries.

It was reported that three major Japanese banks plan to jointly issue a yen-linked (pegged) stablecoin. On the 17th (local time), the Nikkei reported that Mitsubishi UFJ Bank (MUFG), Sumitomo Mitsui Banking Corporation (SMBC), and Mizuho Bank are discussing jointly issuing a yen-based stablecoin to standardize corporate payment infrastructure in Japan. The three banks have about 300,000 corporate clients. Through this project, they plan to secure interoperability of payment tokens to improve the efficiency of inter-company payments. The bank consortium plans to officially launch the yen stablecoin by the end of this year. The first application will be Mitsubishi Corporation, which intends to introduce the stablecoin for internal settlements such as dividends, acquisitions, and customer payments to reduce fees and administrative costs. If successful, Japan's first bank-allied stablecoin network is expected to be established. Meanwhile, Japan's Financial Services Agency (FSA) is recently preparing legal approval procedures to allow issuance of yen-linked stablecoins. Fintech firm JPYC is leading the development of related infrastructure, and Monex Group is also reportedly considering launching its own yen-linked stablecoin.

The Swiss Gambling Supervisory Authority (GESPA) has criminally charged FIFA's World Cup non-fungible token (NFT) platform 'FIFA Collect' for violating local gambling laws. The regulator determined that the platform is offering gambling services in Switzerland without a license. On the 17th (local time), The Block reported that the Swiss Gambling Supervisory Authority became aware of FIFA's online platform FIFA Collect in early October and launched an investigation. The investigation found that requirements for participation fees and cash rewards for NFT-based collectible content such as 'drops' and 'challenges' on the platform were problematic. The gambling authority pointed out, "FIFA Collect operates activities that are in part lotteries and in part sports betting, which are classified as gambling under federal law." It added, "Providing gambling services in Switzerland requires a license, but FIFA is operating without the relevant license." Accordingly, the authority notified the judicial authorities of the matter under the Federal Act on Gambling. The final determination of criminal liability will be made by the prosecution. FIFA has not issued an official statement on the matter to date.

U.S. President Donald Trump said he is scheduled to meet Chinese President Xi Jinping within 2 weeks. According to TriNews on the 17th (local time), President Donald Trump said, "will meet President Xi within the next 2 weeks," and said, "High tariffs on China are not sustainable."

Global cryptoasset (cryptocurrency) exchange Binance is listing ZeroBase (ZBT). On the 17th (local time), Binance said on its official website, "ZeroBase has been selected as the 54th Hodler Airdrop project," and "the spot trading pair will be listed today at 22:00 (KST)."

Bitcoin (BTC) is hovering around $105,000, while the U.S. government recorded a record monthly fiscal surplus of $198 billion in September, indicating improved fiscal conditions. According to CNBC on the 17th (local time), the U.S. Treasury recorded a surplus of $198 billion in September this year. It is the largest on record for the month, reducing the total fiscal deficit for fiscal 2025 to $1.78 trillion. It is a 2.2% decrease from the previous year ($1.821 trillion). September is a month when tax payments are concentrated, but this surplus was additionally aided by import tariffs introduced by President Donald Trump in April. Tariff revenues amounted to $30 billion over the past month, reaching about half of the annual estimate. This eased the interest burden on the national debt, which amounts to $38 trillion. Net interest outlays were $37 billion, making it the fourth-largest expenditure item after Social Security ($133 billion), health ($94 billion), and defense ($76 billion). On an annual basis, it exceeded $1.2 trillion. Experts analyzed that stronger-than-expected revenue growth increases the likelihood that President Trump will maintain his 'trade strategy.' Markets have suggested that if trade tensions intensify and risk-off sentiment strengthens, investors may move to safe assets such as bonds and gold. This is viewed as similar to the market reaction during April's 'tariff tantrum.' CoinDesk said, "With U.S. fiscal conditions improving, tariff uncertainty has increased," and added, "Attention is focused on whether risk assets such as Bitcoin will see a short-term rebound."

Kimchi premium, will eventually narrow International gold prices likely to continue rising The "kimchi premium" phenomenon, where domestic gold prices are higher than international prices, is worsening. There are warnings that short-term price volatility could increase. On the 17th, according to the Korea Exchange, the KRX gold spot closed up 1.83% at 222,000 won per g. However, when converting New York Mercantile Exchange prices into won, it is about 199,280 won per g. This means domestic gold prices are 11.4% more expensive than the global market. According to Financial Supervisory Service statistics, over the past five years there were only two instances—last February and this month—when domestic gold prices were more than 10% higher than international prices. Because gold holds a value that is accepted worldwide, it is rare for the divergence rate to become this large. Analysts say domestic gold prices surged abnormally as domestic demand for gold investment exploded recently. The consensus in the investment industry is that domestic gold price volatility has increased. The rise was steeper than international prices, and the logic is that the price gap will narrow according to the one-price principle (one product, one price). The divergence, which widened to 22.6% in February, narrowed to 0.7% in one month. At that time, the returns of exchange-traded funds (ETFs) tracking domestic physical gold also fell sharply. However, experts expect international gold prices to continue rising. This is because safe-haven demand is spreading due to U.S.-China disputes. Jane Bauda, a MarketPulse researcher, said, "Trade disputes and additional U.S. interest rate cuts will determine the direction," adding, "If the U.S.-China dispute expands, it could exceed $5,000 per troy ounce." Reporter Seon Han-gyeol always@hankyung.com