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CFTC urges investors to beware of AI-created cryptocurrency arbitrage algorithms

The U.S. Commodity Futures Trading Commission (CFTC) is cautioning investors against software or algorithms created by AI that claim to have a "100% winning rate." The CFTC has identified cryptocurrency trading schemes, trading signal strategies, or automated trading algorithms as some of the AI-created software used by scammers to target investors. In a statement released through the CFTC's Office of Customer Education and Outreach (OCEO), the commission also expressed concerns about the increasing number of criminals using AI to hype and steal from users. The statement notes that scammers spread false information through social media platforms and so-called influencers, exacerbating the problem. Unlike traditional media or advertising companies, influencers and social media platforms are not bound by conventional marketing or advertising rules.

Comment: Investors are reminded to exercise diligence and skepticism when encountering investment opportunities, especially those promising unrealistic returns or operating through opaque algorithms. Educating oneself about the risks and red flags associated with cryptocurrency investments is essential for making informed decisions and mitigating potential losses in an increasingly complex and dynamic market environment.

Lybra Finance's stablecoin PEUSD decouples to 0.8218 USDT

On January 28th, according to Coingecko data, Lybra Finance's stablecoin PEUSD decoupled to 0.8218 USDT, having dropped to 0.79 USDT three days ago. PEUSD has been consistently depeged since September '23. Additionally, DefiLlama data shows Lybra Finance's current protocol TVL is $263 million.
Comment: This news highlights the volatility and potential risks associated with stablecoins, which are designed to maintain a stable value but can sometimes fail to do so due to various factors such as market dynamics, liquidity issues, or changes in the underlying assets. Investors and users of stablecoins should be aware of such fluctuations and carefully assess the stability mechanisms and issuer credibility before relying on them for transactions or investments.

Survey: Over one-third expect Bitcoin price to drop below $20,000

A survey conducted by Deutsche Bank shows that among 2,000 respondents from the United States, the United Kingdom, and the Eurozone, over one-third believe that the price of Bitcoin will drop below $20,000 by January next year. Additionally, about 15% of respondents predict that by the end of this year, the price of cryptocurrencies will range between $40,000 and $75,000. Deutsche Bank analysts Marion Labour and Cassidy Ainsworth-Grace explained in the report that the new spot Bitcoin ETF is expected to expand the institutionalization of Bitcoin. However, the majority of ETF funds come from retail investors.
Comment: The survey findings reflect the diverse opinions and expectations regarding the future price movements of Bitcoin and other cryptocurrencies. It also underscores the growing interest