Hong Kong confirms its course towards the development of the crypto industry
Hong Kong Financial Secretary Paul Chan announced that the jurisdiction is ready to accept crypto-currency companies from all over the world, 8BTC reports.
The official noted that the authorities recently finalized a licensing regime for the industry. In accordance with the adopted rules, crypto companies are subject to the requirements that apply to the traditional financial sector.
In December, the G-Rocket accelerator announced that it would help 1,000 Web3 startups open businesses in Hong Kong over the next three years. The company launched the Hong Kong Web3.0 Hub initiative in November following the government's announcement of a desire to develop the virtual asset industry.
At the end of 2022, two ETFs began trading on the Hong Kong Stock Exchange , pegged to U.S.-listed futures for cryptocurrencies.
This comes after the Bureau of Financial Services and Treasury issued a statement in October easing restrictions on cryptocurrencies and a willingness to engage with virtual asset service providers.
The regulator then noted that the autonomous region is also open to industry exchange-traded funds, and announced the introduction of appropriate regulatory mechanisms and investor protection.
Hong Kong Financial Secretary Paul Chan announced that the jurisdiction is ready to accept crypto-currency companies from all over the world, 8BTC reports.
The official noted that the authorities recently finalized a licensing regime for the industry. In accordance with the adopted rules, crypto companies are subject to the requirements that apply to the traditional financial sector.
In December, the G-Rocket accelerator announced that it would help 1,000 Web3 startups open businesses in Hong Kong over the next three years. The company launched the Hong Kong Web3.0 Hub initiative in November following the government's announcement of a desire to develop the virtual asset industry.
At the end of 2022, two ETFs began trading on the Hong Kong Stock Exchange , pegged to U.S.-listed futures for cryptocurrencies.
This comes after the Bureau of Financial Services and Treasury issued a statement in October easing restrictions on cryptocurrencies and a willingness to engage with virtual asset service providers.
The regulator then noted that the autonomous region is also open to industry exchange-traded funds, and announced the introduction of appropriate regulatory mechanisms and investor protection.
💳 Mastercard and Polygon to Launch Web3 Program for Aspiring Musicians
Payments giant Mastercard has partnered with Polygon to launch the Web3 Mastercard Artist Accelerator program for emerging music artists.
The program will start in the spring of 2023. The organizers intend to help the development of musicians, DJs and producers in the digital economy.
Participants are promised exclusive access to events, music releases, training in issuing their own non-fungible tokens (NFT) and more.
The payment giant will also release a limited-edition NFT Mastercard Music Pass, which will give fans access to learning along with program members.
Recall that in December 2022, Polygon launched a Web3 platform for personalizing NFT Debit, Mastercard debit cards from the financial application Hi.
Payments giant Mastercard has partnered with Polygon to launch the Web3 Mastercard Artist Accelerator program for emerging music artists.
The program will start in the spring of 2023. The organizers intend to help the development of musicians, DJs and producers in the digital economy.
Participants are promised exclusive access to events, music releases, training in issuing their own non-fungible tokens (NFT) and more.
The payment giant will also release a limited-edition NFT Mastercard Music Pass, which will give fans access to learning along with program members.
Recall that in December 2022, Polygon launched a Web3 platform for personalizing NFT Debit, Mastercard debit cards from the financial application Hi.
📈🚀 Bitcoin rises above $17,000
On Monday, January 9, the quotes of the first cryptocurrency for the first time since mid-December 2022 exceeded $17,000. Over the past day, the asset has risen in price by 1.6%, according to CoinGecko .
At the time of writing, Bitcoin is trading near the $17,200 mark. As you can see in the chart below, the price increase is accompanied by a surge in trading volume.
According to Coinglass , positions worth $187.2 million were liquidated in the futures market per day. Of these, $22.5 million were contracts based on Bitcoin, $49.5 million were Ethereum.
The price of the second largest cryptocurrency by capitalization is at $1309 (+3.6% in the last 24 hours).
Earlier, Galaxy Digital founder Mike Novogratz reiterated his prediction that the price of the first cryptocurrency would rise to $500,000.
Former BitMEX CEO Arthur Hayes opined that bitcoin has bottomed out as almost every “irresponsible organization” has run out of BTC to sell.
On Monday, January 9, the quotes of the first cryptocurrency for the first time since mid-December 2022 exceeded $17,000. Over the past day, the asset has risen in price by 1.6%, according to CoinGecko .
At the time of writing, Bitcoin is trading near the $17,200 mark. As you can see in the chart below, the price increase is accompanied by a surge in trading volume.
According to Coinglass , positions worth $187.2 million were liquidated in the futures market per day. Of these, $22.5 million were contracts based on Bitcoin, $49.5 million were Ethereum.
The price of the second largest cryptocurrency by capitalization is at $1309 (+3.6% in the last 24 hours).
Earlier, Galaxy Digital founder Mike Novogratz reiterated his prediction that the price of the first cryptocurrency would rise to $500,000.
Former BitMEX CEO Arthur Hayes opined that bitcoin has bottomed out as almost every “irresponsible organization” has run out of BTC to sell.
Mining company Riot drops "blockchain" from its name
One of the largest bitcoin miners in the industry, Riot Blockchain, has changed its name to Riot Platforms during the rebranding to emphasize the “growing diversification” of business operations.
“The range and scope of our business continues to expand. This rebrand better reflects our position as strategic capital allocators to expand the reach of Bitcoin-centric operations,” said Jason Les, CEO of Riot Platforms.
In November, hosting provider Applied Digital, formerly known as Applied Blockchain, made a similar decision. The company also explained this step by the desire for diversification.
Some companies even shift their focus to other areas. For example, in August, Stronghold Digital Mining focused on selling electricity to the grid.
Recall that in November, Riot Blockchain mined a record 521 BTC and increased the hashrate to its maximum of 7.7 EH/s.
One of the largest bitcoin miners in the industry, Riot Blockchain, has changed its name to Riot Platforms during the rebranding to emphasize the “growing diversification” of business operations.
“The range and scope of our business continues to expand. This rebrand better reflects our position as strategic capital allocators to expand the reach of Bitcoin-centric operations,” said Jason Les, CEO of Riot Platforms.
In November, hosting provider Applied Digital, formerly known as Applied Blockchain, made a similar decision. The company also explained this step by the desire for diversification.
Some companies even shift their focus to other areas. For example, in August, Stronghold Digital Mining focused on selling electricity to the grid.
Recall that in November, Riot Blockchain mined a record 521 BTC and increased the hashrate to its maximum of 7.7 EH/s.
Grayscale GBTC discount exceeded 45%
Decline in Bitcoin Trust (GBTC) quotes from Grayscale Investments relative toNAVreached 45.17%. This is evidenced by the yCharts data.
Grayscale Investment manages 632,078 BTC worth ~$10.5 billion. This is 3.28% of the market capitalization of the first cryptocurrency.
The company founded by Barry Silbert also manages Ethereum Classic (ETC) worth $190.8 million. This is 8.5% of ETC's market capitalization. The decrease in quotations relative to net worth in this case is 76.69%.
The GBTC discount began to take shape at the beginning of 2021, amid the departure of Barry Silbert from the position of CEO.
A delay in the approval of an application to transform the structure into an exchange-traded fund (ETF) also contributed to the decline in the bitcoin trust quotes . The head of the company Michael Sonnenschein called this task the most important priority.
Decline in Bitcoin Trust (GBTC) quotes from Grayscale Investments relative toNAVreached 45.17%. This is evidenced by the yCharts data.
Grayscale Investment manages 632,078 BTC worth ~$10.5 billion. This is 3.28% of the market capitalization of the first cryptocurrency.
The company founded by Barry Silbert also manages Ethereum Classic (ETC) worth $190.8 million. This is 8.5% of ETC's market capitalization. The decrease in quotations relative to net worth in this case is 76.69%.
The GBTC discount began to take shape at the beginning of 2021, amid the departure of Barry Silbert from the position of CEO.
A delay in the approval of an application to transform the structure into an exchange-traded fund (ETF) also contributed to the decline in the bitcoin trust quotes . The head of the company Michael Sonnenschein called this task the most important priority.
🏢 Bitcoin exchange parent company Mercado lays off staff
2TM Group, the parent company of the Brazilian cryptocurrency exchange Mercado Bitcoin, announced a layoff amid the unfavorable situation in the global economy. CoinDesk writes about it .
"The changing global financial landscape, rising interest rates and inflation have had a major impact on technology companies," the statement said.
The company did not specify the number of laid-off employees. Its representatives noted that "the scenario requires adjustments that go beyond cutting operating costs." According to the publication, we can talk about 86 positions.
In December 2021, 2TM Group closed a $50.3 million Series B extended funding round . Prior to this, the firm raised $200 million from the SoftBank Latin America Fund, becoming the eighth largest "unicorn" in the region.
Earlier, Mercado Bitcoin received $37.4 million to expand its presence in the markets of Latin America.
The cuts were also announced by Bahraini cryptocurrency exchange Rain Financial, according to Bloomberg . The layoffs will affect "staff from a number of departments," the sources said.
2TM Group, the parent company of the Brazilian cryptocurrency exchange Mercado Bitcoin, announced a layoff amid the unfavorable situation in the global economy. CoinDesk writes about it .
"The changing global financial landscape, rising interest rates and inflation have had a major impact on technology companies," the statement said.
The company did not specify the number of laid-off employees. Its representatives noted that "the scenario requires adjustments that go beyond cutting operating costs." According to the publication, we can talk about 86 positions.
In December 2021, 2TM Group closed a $50.3 million Series B extended funding round . Prior to this, the firm raised $200 million from the SoftBank Latin America Fund, becoming the eighth largest "unicorn" in the region.
Earlier, Mercado Bitcoin received $37.4 million to expand its presence in the markets of Latin America.
The cuts were also announced by Bahraini cryptocurrency exchange Rain Financial, according to Bloomberg . The layoffs will affect "staff from a number of departments," the sources said.
⁉️ How Tether continues to work stably against the background of cryptocrises without audits and reporting
Forbes has released a story detailing how, despite the crisis in the cryptocurrency market, its largest liquidity provider, Tether, has withstood several multibillion-dollar redemption runs, and whether competition from other stablecoins and regulatory pressure could shake the company.
in August the company hired the top five accounting firms BDO for the purpose of conducting a full audit. However, Tether does not plan to become a public company, nor does it expect any changes in its management structure.
Forbes has released a story detailing how, despite the crisis in the cryptocurrency market, its largest liquidity provider, Tether, has withstood several multibillion-dollar redemption runs, and whether competition from other stablecoins and regulatory pressure could shake the company.
in August the company hired the top five accounting firms BDO for the purpose of conducting a full audit. However, Tether does not plan to become a public company, nor does it expect any changes in its management structure.
Of more serious concern to the company's management is the general state of the cryptocurrency market, in which Tether is a key liquidity provider. Stablecoins are critical for active traders, but the crypto winter has seen Tether's market cap drop by more than 25%.
The situation is exacerbated by the fact that much higher interest rates now offer traders numerous alternatives, besides cryptocurrencies and DeFi, to store idle cash reserves. USDT returns on major crypto exchanges are currently averaging 2%.
If the cryptocurrency recovers, Tether will likely see other competitors vying for its place. In addition to USDC, which already has 29.8% of the market and is favored by Wall Street firms such as BlackRock and BNY Mellon, megaexchange Binance itself has created its own stablecoin, BUSD. Additionally, there is the possibility that at some point a major FDIC-insured bank or central bank will offer its digital dollar.
The situation is exacerbated by the fact that much higher interest rates now offer traders numerous alternatives, besides cryptocurrencies and DeFi, to store idle cash reserves. USDT returns on major crypto exchanges are currently averaging 2%.
If the cryptocurrency recovers, Tether will likely see other competitors vying for its place. In addition to USDC, which already has 29.8% of the market and is favored by Wall Street firms such as BlackRock and BNY Mellon, megaexchange Binance itself has created its own stablecoin, BUSD. Additionally, there is the possibility that at some point a major FDIC-insured bank or central bank will offer its digital dollar.
According to the SEC publication, the organizer of the Tether Pay scheme, Rendon Duran, illegally raised capital by promising investors a return of up to 210% in 70 days, or 3% per day on their investments. Investors were guaranteed the ability to withdraw their funds at any time. Duran claimed that Tether Pay is considered “the most stable USDT smart contract” and offered users to earn even more money through attracting referrals.
The regulator warned that Tether Pay also operates under the names Tether.Pay.com, Tether Pay Ltd and Tether Pay Limited. However, all of these organizations are not registered with the SEC, which violates securities laws. Therefore, the agency called on local and foreign citizens to stop any investment in Tether Pay so as not to be at risk of losing funds. The regulator also warned the promoters of the scheme that inviting people to invest in illegal investment contracts could result in up to 21 years in prison and a fine of up to 5 million Philippine pesos (about $89,698).
Over the past 12 months, the Philippine SEC has tightened its oversight of the cryptocurrency industry and issued over 100 warnings about such schemes. Recently, the regulatory body reported on the Bitbankups scam project, the creators of which promised investors fabulous profits, but did not return their invested money.
The Central Bank of the Philippines is also suspicious of cryptocurrencies due to their associated risks. So, on September 1, the Central Bank of the Philippines suspended the registration of virtual asset service providers (VASPs) for three years.
The regulator warned that Tether Pay also operates under the names Tether.Pay.com, Tether Pay Ltd and Tether Pay Limited. However, all of these organizations are not registered with the SEC, which violates securities laws. Therefore, the agency called on local and foreign citizens to stop any investment in Tether Pay so as not to be at risk of losing funds. The regulator also warned the promoters of the scheme that inviting people to invest in illegal investment contracts could result in up to 21 years in prison and a fine of up to 5 million Philippine pesos (about $89,698).
Over the past 12 months, the Philippine SEC has tightened its oversight of the cryptocurrency industry and issued over 100 warnings about such schemes. Recently, the regulatory body reported on the Bitbankups scam project, the creators of which promised investors fabulous profits, but did not return their invested money.
The Central Bank of the Philippines is also suspicious of cryptocurrencies due to their associated risks. So, on September 1, the Central Bank of the Philippines suspended the registration of virtual asset service providers (VASPs) for three years.
Amid rumors of Huobi problems, Tron’s algorithmic stablecoin USDD has lost parity with the US dollar, and the TRX-token has fallen in price by 7.5% over the past day.
Tron founder Justin Sun denied the rumors about Huobi's problems and emphasized that users' assets are safe.
On January 3, journalist Colin Wu reported that exchange employees would begin to receive salaries in stablecoins instead of fiat currency, and those who disagree could be fired. At the end of December, his sources told about the company's plans to cancel annual bonuses and reduce the staff from 1200 people to 600-800.
Against this background, the price of the TRON (TRX) token has decreased over the past day by 7.8%, according to CoinGecko . For the week, the drop was 6.8%.
The algorithmic stablecoin USDD from Tron also reacted with a fall. At the time of writing, the asset has lost its peg to the US dollar and is trading at $0.97.
Tron founder Justin Sun denied the rumors about Huobi's problems and emphasized that users' assets are safe.
On January 3, journalist Colin Wu reported that exchange employees would begin to receive salaries in stablecoins instead of fiat currency, and those who disagree could be fired. At the end of December, his sources told about the company's plans to cancel annual bonuses and reduce the staff from 1200 people to 600-800.
Against this background, the price of the TRON (TRX) token has decreased over the past day by 7.8%, according to CoinGecko . For the week, the drop was 6.8%.
The algorithmic stablecoin USDD from Tron also reacted with a fall. At the time of writing, the asset has lost its peg to the US dollar and is trading at $0.97.
‼️ Crypto industry damage from hacks in 2022 rose to $3.6 billion
🗓 In 2022, the damage to the Web3 industry from 167 major attacks amounted to about $3.6 billion, which is 47.4% more than a year earlier, Beosin specialists said.
More than half of the total losses came from 12 incidents with cross-chain bridges — $1.89 billion. At the same time, DeFi protocols were attacked 113 times (67.6% of the total number of hacks).
During the year, serious security incidents occurred on 20 public blockchains. The top three in terms of losses were Ethereum, BNB Chain and Solana. They also excel in the number of attacks, only here the network from Binance is in the lead.
Exploitation of vulnerabilities ranked first in both frequency and damage, with $1.458 billion lost as a result of 87 exploits.
The experts noted that protocols that passed and did not pass the audit were subjected to attacks almost equally — 51.5% and 48.5% of hacks, respectively.
🗓 In 2022, the damage to the Web3 industry from 167 major attacks amounted to about $3.6 billion, which is 47.4% more than a year earlier, Beosin specialists said.
More than half of the total losses came from 12 incidents with cross-chain bridges — $1.89 billion. At the same time, DeFi protocols were attacked 113 times (67.6% of the total number of hacks).
During the year, serious security incidents occurred on 20 public blockchains. The top three in terms of losses were Ethereum, BNB Chain and Solana. They also excel in the number of attacks, only here the network from Binance is in the lead.
Exploitation of vulnerabilities ranked first in both frequency and damage, with $1.458 billion lost as a result of 87 exploits.
The experts noted that protocols that passed and did not pass the audit were subjected to attacks almost equally — 51.5% and 48.5% of hacks, respectively.
Rumors about the integration of Twitter donations in digital tokens appeared on the network
Twitter has begun testing a Coins option that allows users to reward content creators with digital tokens in the form of various reactions. Their recipients will be able to exchange assets for fiat through the Stripe payment system, blogger Jane Wong said.
"Coins" can be purchased by calling the corresponding window in the interface. Twitter's minimum payout to creators is $50.
The community did not rule out that the initiative could mark the start of Twitter using cryptocurrencies. At the moment, there is no indication that the tokens will be released on the blockchain.
In July 2022, Stripe announced a pilot project with Twitter that focuses on the introduction of cryptocurrency payouts to content creators.
Twitter has begun testing a Coins option that allows users to reward content creators with digital tokens in the form of various reactions. Their recipients will be able to exchange assets for fiat through the Stripe payment system, blogger Jane Wong said.
"Coins" can be purchased by calling the corresponding window in the interface. Twitter's minimum payout to creators is $50.
The community did not rule out that the initiative could mark the start of Twitter using cryptocurrencies. At the moment, there is no indication that the tokens will be released on the blockchain.
In July 2022, Stripe announced a pilot project with Twitter that focuses on the introduction of cryptocurrency payouts to content creators.
👀 Chinese journalist Colin Wu reported that some OTC traders in the jurisdiction refuse to accept payments in USDT on the Tron network, demanding payment in a stablecoin on the Ethereum blockchain.
At first, he suggested that this could be due to the recent news around Justin Sun and the Huobi exchange, but later explained that the reason may also be that the asset does not meet the requirements of the Chainalysis AML tools.
Colin Wu later added that Matrixport, owned by Bitmain co-founder Jihan Wu, suspended deposits and withdrawals of USDT (TRC20) as early as January 9 and has not made any announcement since then other than announcing a partnership with Chainalysis.
At first, he suggested that this could be due to the recent news around Justin Sun and the Huobi exchange, but later explained that the reason may also be that the asset does not meet the requirements of the Chainalysis AML tools.
Colin Wu later added that Matrixport, owned by Bitmain co-founder Jihan Wu, suspended deposits and withdrawals of USDT (TRC20) as early as January 9 and has not made any announcement since then other than announcing a partnership with Chainalysis.
Blockchain project Venom Foundation launches $1 billion fund to invest in Web3
Abu Dhabi-licensed blockchain platform developer Venom Foundation has launched a $1 billion venture capital fund in partnership with Iceberg Capital.
A structure called Venom Ventures Fund (VVF) invests in innovative protocols and Web3 applications for long-term trends such as payments, asset management, DeFi, banking and GameFi.
It is assumed that VVF will finance projects and teams from seed rounds to Series A. The Fund will provide start-ups with technical, legal and marketing support, as well as assistance in relations with regulators and with the listing of tokens on exchanges.
The fund was taken over by the investment firm Iceberg Capital.
Abu Dhabi-licensed blockchain platform developer Venom Foundation has launched a $1 billion venture capital fund in partnership with Iceberg Capital.
A structure called Venom Ventures Fund (VVF) invests in innovative protocols and Web3 applications for long-term trends such as payments, asset management, DeFi, banking and GameFi.
It is assumed that VVF will finance projects and teams from seed rounds to Series A. The Fund will provide start-ups with technical, legal and marketing support, as well as assistance in relations with regulators and with the listing of tokens on exchanges.
The fund was taken over by the investment firm Iceberg Capital.
⚙️ The expert pointed to the correction of Binance flaws in the work of BUSD
Bitcoin exchange Binance has eliminated flaws in the management of Binance USD (BUSD) reserves, which sometimes led to the absence of collateral in excess of $1 billion, according to ChainArgos founder Jonathan Reuter, writes Bloomberg .
We are talking about BUSD in the BNB Beacon Chain and BNB Smart Chain networks with a total capitalization of $5.4 billion out of $16.4 billion in total.
They have reserves in BUSD on the Ethereum blockchain. The latest stablecoins are backed by US dollars and are controlled by Paxos with a licenseNYDFS.
Representatives of the platform confirmed the correctness of the analysis.
💬 “The process of maintaining a binding involves many commands and has not always been flawless, which may have led to delays in the past. We previously improved it with advanced mismatch checks to ensure that [BUSD on BNB networks to BUSD on Ethereum] is permanently tied, ” they said.
Bitcoin exchange Binance has eliminated flaws in the management of Binance USD (BUSD) reserves, which sometimes led to the absence of collateral in excess of $1 billion, according to ChainArgos founder Jonathan Reuter, writes Bloomberg .
We are talking about BUSD in the BNB Beacon Chain and BNB Smart Chain networks with a total capitalization of $5.4 billion out of $16.4 billion in total.
They have reserves in BUSD on the Ethereum blockchain. The latest stablecoins are backed by US dollars and are controlled by Paxos with a licenseNYDFS.
Representatives of the platform confirmed the correctness of the analysis.
💬 “The process of maintaining a binding involves many commands and has not always been flawless, which may have led to delays in the past. We previously improved it with advanced mismatch checks to ensure that [BUSD on BNB networks to BUSD on Ethereum] is permanently tied, ” they said.
🔥Microsoft invests $10 billion in OpenAI
Microsoft is considering investing $10 billion in OpenAI. Today, the startup is valued at $29 billion.
According to media reports, Microsoft will receive 75% of the profits of the AI company until it returns the money invested. After the refund, the corporation will receive a 49% stake in OpenAI. Other investors will share the remaining 49%, while the nonprofit parent business will retain the remaining 2%.
There is also a profit limit for each shareholder group. However, margin limits are unknown.
The terms of the deal and the amount of investment may change as negotiations continue.
OpenAI is one of the leaders in the field of generative AI. In 2022, the startup released two popular apps: DALL-E 2 and ChatGPT.
Microsoft has already included the first in some of its products, including the Designer graphic design app. The tech giant is also interested in using ChatGPT in Office applications and the Bing search engine.
Microsoft is considering investing $10 billion in OpenAI. Today, the startup is valued at $29 billion.
According to media reports, Microsoft will receive 75% of the profits of the AI company until it returns the money invested. After the refund, the corporation will receive a 49% stake in OpenAI. Other investors will share the remaining 49%, while the nonprofit parent business will retain the remaining 2%.
There is also a profit limit for each shareholder group. However, margin limits are unknown.
The terms of the deal and the amount of investment may change as negotiations continue.
OpenAI is one of the leaders in the field of generative AI. In 2022, the startup released two popular apps: DALL-E 2 and ChatGPT.
Microsoft has already included the first in some of its products, including the Designer graphic design app. The tech giant is also interested in using ChatGPT in Office applications and the Bing search engine.
🚀 Glassnode warns of the potential for an “explosive movement” in Bitcoin
Realized volatility for Bitcoin and Ethereum has fallen to extreme lows, historically preceded by explosive moves in either direction. This was reported by Glassnode analysts.
In nine similar cases, after such a low realized volatility on the horizon of the month (24.6%), a wave of growth was observed, and only in one - a decrease with a fall of 50%.
Ethereum has previously recorded only three similar episodes of extremely low volatility (39.8%). In particular, in November 2018, a 58% collapse followed, in July 2020 - an increase to a historical maximum.
Realized volatility for Bitcoin and Ethereum has fallen to extreme lows, historically preceded by explosive moves in either direction. This was reported by Glassnode analysts.
In nine similar cases, after such a low realized volatility on the horizon of the month (24.6%), a wave of growth was observed, and only in one - a decrease with a fall of 50%.
Ethereum has previously recorded only three similar episodes of extremely low volatility (39.8%). In particular, in November 2018, a 58% collapse followed, in July 2020 - an increase to a historical maximum.