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More →Arthur Hayes Plans to Build Derivatives Around AI Compute
Arthur Hayes published a new essay on October 27 outlining futures and perpetual swaps tied to Flop Network’s proposed compute market, where AI agents would pay for computing power using FLOP. The plan aims to establish a reference price for compute that traders could use to build financial contracts around the resources AI systems consume. In a post on X, Hayes called his essay “The Trifecta” and <a href="https://x.com/CryptoHayes/status/2114857087004201325?s=20" rel="nofollow" target="_blank">described</a> it as a blueprint for entrepreneurs seeking to build derivatives for the AI agent economy. His central idea is that a liquid spot market for computing power could <a href="https://cryptohayes.substack.com/p/the-trifecta" rel="nofollow" target="_blank">provide</a> the pricing benchmark needed for futures and perpetual swaps. The proposed Flop Reference Compute Rate (FRCR) would be calculated hourly using a volume-weighted FLOP price per GigaFLOP of computing capacity. Quarterly futures would settle on the last Friday of March, June, September, and December, with contracts using US dollars for margin and profits. Hayes explained that the dollar-based structure would require a quanto derivative, a contract whose payout uses a different currency from its underlying asset. Because the compute market would be priced in FLOP while traders could prefer dollar-denominated returns, pricing the contract would require an adjustment for the relationship between the FRCR and the FLOP-to-dollar exchange rate. The proposed perpetual swap would use an eight-hour time-weighted average of the difference between its trading price and the FRCR to calculate funding payments. As with crypto perpetuals, traders on the expensive side of the contract would pay those on the cheaper side, depending on the premium. Market makers could recreate futures exposure by buying or supplying Flop Compute Units (FCUs), which represent reserved inference capacity for a specified AI model and delivery time. Hayes’s design also requires suppliers to post FLOP bonds, which they risk losing if they fail to deliver the promised computing work. The derivatives proposal depends on Flop Network first establishing a functioning spot market. Hayes argues that existing indexes tracking chip rental prices and individual AI token prices provide incomplete information because both are derivatives of the underlying cost of computation. Under his design, network blocks would record inference tasks, the computing work completed, and the fees paid to miners. Those receipts would help calculate the exchange rate between FLOP and computing capacity, giving buyers and suppliers a common reference. Hayes <a href="https://cryptopotato.com/arthur-hayes-called-ai-a-bubble-now-hes-launching-an-ai-project/" rel="nofollow" target="_blank">introduced</a> Flop Labs in August 2026, describing its proposed native token FLOP as “food for your AI agent.” In an August 27 explanation, the project <a href="ht
Discord is making public chats searchable on Google: How to opt out
Discord conversations on large public servers will soon reach audiences far beyond their communities, raising privacy concerns. Discord is making a policy change that will make conversations from its largest public servers discoverable in search engines, including Google, raising privacy concerns among users whose conversations were previously confined to the platform. The change applies to Discoverable Servers — communities with at least 1,000 members listed in Discord’s public directory that do not require an invitation to join. From Nov. 16, every Discoverable Server will have a web page that may include summaries of public channel discussions. From mid-December, individual messages posted in eligible channels may appear in web search, Discord<a href="https://discord.com/blog/making-content-from-discoverable-servers-easier-to-discover" rel="nofollow noopener" target="_blank">> <span>said</span></a> Tuesday. Messages posted before the rollout will not be included, while usernames and avatars will be excluded from published messages. Example of an individual message being shown online. Source: <a href="https://discord.com/blog/making-content-from-discoverable-servers-easier-to-discover" rel="nofollow noopener" aria-label="Source: Discord" target="_blank">Discord</a> Discord said the shift of online communities from message boards to its servers had made useful answers harder to find. “This has led to valuable information being locked in Discord conversations, inaccessible to the wider internet. We want to fix this,” the company said. The move has <a href="https://www.reddit.com/r/discordapp/comments/1xgxb68/comment/19rr367kxqlk2/?utm_source=share&utm_medium=web3x&utm_name=web3xcss&utm_term=1&utm_content=share_button" rel="nofollow noopener" target="_blank">><span>drawn</span></a> criticism from users concerned about their conversations reaching an audience outside of their intended community, even if the servers are public in the first place. <em><strong>Related: </strong></em><a href="https://cointelegraph.com/news/starknet-introduces-wallet-privacy-feature-for-defi-activity" target="_blank" rel="nofollow"><span><em><strong>Starknet introduces wallet privacy feature for DeFi activity</strong></em></span></a> Others welcomed the change, saying it could make useful answers easier to find. One user in Discord’s announcement thread <a href="https://www.reddit.com/r/discordapp/comments/1xgxb68/official_megathread_discoverable_servers_are/" rel="nofollow noopener" target="_blank">><span>called</span></a> it “very much necessary,” while another said moving communities from forums to Discord had made their discussions harder to find through search. The change could also affect cryptocurrency communities that use Discord for technical discussions, support and project announcements. Cointelegraph found nearly 800 servers tagged “cryptocurrency,” around 1,400 tagged “trading” and more than 700 tagged “finance” in Discord’s public directory. Disc
CFTC sues Utah to block restrictions on prediction markets
CoinWorld news, the CFTC (Commodity Futures Trading Commission) announced on October 27 that it has filed a lawsuit against Utah aimed at preventing the state from shutting down registered prediction markets. The CFTC stated that Utah's legal measures conflict with Congress's decision and obstruct federal regulation of these markets. CFTC Chairman Michael S. Selig said that Utah's actions attempt to shut down prediction markets for a broad range of markets, and that these event contracts are used not only for hedging and investment but also to provide the public with information about future events. The CFTC also pointed out that Utah's actions would restrict the operations of registered exchanges. The case involves ten states, and the CFTC has submitted relevant documents to four federal appellate courts and one state supreme court.
Australian inflation boosts rate hike expectations, Aussie dollar rises to five-week high
After Australia's third-quarter inflation data was released, market expectations for Reserve Bank of Australia rate hikes turned more hawkish, with an 85% probability of a hike to 4.85% next week, up from 69% before the inflation data was published. Following the data release, the Australian dollar jumped to a five-week high of 0.7055 against the US dollar, 1.6 cents above its 15-week low on October 15. The Australian dollar also surged 2% against the New Zealand dollar to 1.26, a 13-year high. Within five weeks, net short positions in the Australian dollar increased from 38,906 contracts to 127,292 contracts, more than tripling.
New Oriental's US-listed shares fell nearly 12% in pre-market trading on October 28, Cailian Press reported. The company's net revenue for the first fiscal quarter rose 23.1% year-on-year, while net profit grew 13.5%.
CoinWorld news, Cailian Press, October 28: New Oriental's U.S.-listed shares fell nearly 12% in pre-market trading. Its first-quarter net revenue rose 23.1% year-over-year, while net profit increased 13.5%.
The Netherlands has pledged 1.2 billion euros in aid to support Ukraine's reconstruction.
CoinWorld news: The Dutch government has announced that it will provide 1.2 billion euros (approximately 1.3 billion US dollars) in non-military aid to Ukraine over the next three years. Ukrainian President Zelensky is expected to arrive in the Netherlands on Wednesday afternoon to hold talks with the Dutch Prime Minister and other cabinet members, and will subsequently visit Dutch King Willem-Alexander. The Dutch government has pledged to provide 380 million euros next year to support Ukraine's reconstruction, and about 410 million euros annually in 2028 and 2029. Part of the funds will be used to establish a special fund to support Dutch companies interested in investing in Ukraine's reconstruction projects, while other aid will be used for emergency repairs of Ukraine's energy infrastructure and for providing mechanical equipment to Ukraine's industrial sector.
India's Information Minister: Cabinet approves 200 billion rupees for inflation-linked subsidies.
CoinWorld news, India's Information Minister announced that the cabinet has approved 200 billion rupees for inflation-linked subsidies.
South Korean police have launched a pre-filing investigation into hacking incidents involving securities firms and crypto asset exchanges.
CoinWorld news: South Korea's National Investigation Headquarters of the Korean National Police Agency launched a pre-indictment investigation on the morning of October 28 into hacking incidents involving securities firms and crypto asset exchanges, handled by the team responsible for the serial hacking cases in the financial industry. Recently, the personal information of 38,500 customers of Daishin Securities was leaked, Bithumb confirmed a leak of employee information, and some business system information of Mirae Asset was leaked. Previously, 16 financial institutions including KB Kookmin Bank were hacked, and about 100,000 pieces of personal information were leaked. Police will verify the connection between the cases.
From open-source key vault to AI Agent security platform, Infisical raises $40 million
Infisical has completed a $40 million Series B funding round at a valuation of $600 million. This YC-incubated company focuses on open-source secrets management, helping more than 1,300 enterprises and 300,000 developer users safeguard API keys and database passwords and control access permissions. As AI Agents such as Claude Code and Codex operate GitHub and cloud services, secrets security has become a new problem. In April, Infisical open-sourced Agent Vault, which gives Agents only fake keys; when accessing external services, requests pass through an HTTPS proxy that injects the real keys, preventing leaks. In July, the company launched a commercial version of Agent Proxy, integrated into the commercial Agent Vault, allowing enterprises to authorize Agents on a per-task basis, set validity periods, revoke permissions at any time, and log access behavior.
In the AI race, cash flow gives you the upper hand: Microsoft and Google earnings face a major test.
According to CoinWorld news, Caixin reported on October 28 that since their last earnings reports, the stock price trajectories of Microsoft and Google have clearly diverged. As concerns grow over the pressure that massive AI spending is placing on corporate profits, Wall Street is increasingly scrutinizing the returns both companies are getting on their AI investments. Both tech giants are major players in the AI space and are set to report results after the market close on Wednesday. Recent stock performance suggests investors appear to favor Microsoft. The market expects Google's free cash flow to be negative in both 2026 and 2027, while Microsoft's free cash flow is projected to decline in the current fiscal year ending next June before returning to growth.