Report: Rug Pull Incidents in the Crypto Space Have Decreased, but Their Impact Has Grown

According to Bitget market data, South Korea’s KOSPI index closed down 214.93 points on Tuesday, October 20, with a 3.73% decline, ending at 5553.08 points. Samsung Electronics fell 2.98%, while SK Hynix dropped 4.22%.

The U.S. Securities and Exchange Commission (SEC) will close the public comment period for its "Regulation Crypto Assets" proposal on Tuesday. Unveiled in August, the proposal received approximately 140 submissions over the 60-day comment window, including 6 anonymous ones. Comments primarily focus on safe harbor provisions and issuance exemptions for assets under a certain value. The MiCA Crypto Alliance broadly supports the revisions to disclosure requirements, and recommends the SEC further define crypto asset-specific concepts and data structures.

Citrini analyst Jukan said that Tesla and SpaceX, both under Elon Musk, are advancing the Terafab semiconductor project in Texas, which is fully excluding Chinese suppliers. Due to the high cost of Japanese products, the project is shifting to South Korean suppliers, and requires Korean companies to offer quotes even lower than those from Chinese suppliers. On the opening day of SEMICON West 2026, Terafab visited around 10 South Korean companies' booths according to a pre-prepared list. Global equipment manufacturers Lam Research and Applied Materials have set up dedicated teams for Terafab. The analyst noted that the initial facility, with a monthly production capacity of about 100,000 wafers, is expected to be completed before 2030. For logic chips, Terafab is collaborating with Intel and in talks with TSMC; for memory chips, it is developing a separate process. An overseas equipment manufacturer representative said that Musk initially explored acquiring production lines from Intel, TSMC, and Micron, but was rejected, so he turned to cooperation instead. The level of push for this project is rare in the semiconductor industry. A South Korean partner company stated that even if questions are raised in the early morning on the U.S. East Coast, a response is usually received within 30 minutes to an hour, and engineers hold decision-making power. The collaboration approach is completely different from that of typical clients.

Xinhuo Group Chief Economist Fu Peng published an article noting that current U.S. stocks, represented by the S&P 500, are exhibiting a distinct market capitalization concentration bubble and severe market breadth divergence. "Weighted large-cap blue-chip stocks, supported by passive funds and crowded positioning, have propped up the broad index to stay relatively calm, while the vast majority of stocks across the market are actually undergoing deeper technical pullbacks. Market breadth is approaching its extreme tipping point, and the suppression of volatility could be broken at any time."

Trader degentrading commented on PAPER’s new token minting mechanism, pointing out that compared to the previous supply model, new users will receive a relatively higher share while early mining users’ advantages have diminished. The adjustment is unfavorable to early participants but beneficial to the protocol’s long-term development and organic users. This morning, Papertrade officially announced it has no plans to enable PAPER token transferability, and will adjust fees and the token minting mechanism. On token issuance: going forward, for every $1 million in losses, approximately 0.1% of the current PAPER supply will be minted, with the specific ratio dependent on the minting rate during contract upgrades. When the fund pool is near or enters an insolvent state, the protocol will no longer mint 100 PAPER per $1 in losses, instead adopting a time-increasing weighted multiplier mechanism. The team noted that in the long run, the new mechanism will gradually dilute the share of early holders, giving recent users greater advantages.

Four people with knowledge of the matter revealed that the Bank of Japan (BOJ) may raise its inflation outlook for the next fiscal year in its forecast to be released this month, as rising oil prices are exerting more persistent price pressure on the economy than expected. Sources said that given the BOJ just raised interest rates last month, the central bank is expected to keep rates unchanged at its two-day policy meeting ending on October 30, unless the yen depreciates sharply again, which would push up import costs and overall inflation. However, sources also noted that the BOJ may continue to highlight growing inflation risks in its post-meeting quarterly report, leaving room for another rate hike as early as December. One of the sources said, "Consumer price growth may persist longer than expected, although underlying inflation has not changed significantly."