TronWeekly

Crypto World News

You are here: Home / Search for "hong kong"

Search Results for: hong kong

Bakkt’s Bold Move: SEC Clearance Paves The Way For $150 Million Capital Raise

by

Bakkt Holdings, one of the leading firms in the crypto space, recently took a major step forward with SEC approval of its “universal shelf” registration statement on Form S-3 on 14th February 2024. With this key milestone, Bakkt is allowed to solicit up to $150 million either through one or more offerings within three years as long as there is an effective registration statement.

image 69 1
Bakkt's Bold Move: SEC Clearance Paves The Way For $150 Million Capital Raise 2

According to the press release, if, in the future, the company decides to capitalize on this registration statement and go for a capital raise, it will give a whole set of details about the offer via an additional prospectus that will be filled into SEC. The adoption of this shelf registration on the Form S-3 leaflet is a strategic move that emphasizes the company’s proactive slant to securing financial flexibility and enabling future growth initiatives.

Due to this, Bakkt sets itself up to respond quickly to market opportunities and capital requirements as well as shortcut the process of obtaining more financing if needed. Such flexibility not only increases Bakkt’s potential for gaining strategic opportunities but also builds confidence among investors who see the company taking a proactive approach toward managing its capital structure.

Bakkt Expanding Crypto Capabilities Globally

Last month, building upon its strides in expanding its global footprint, Bakkt started offering crypto services on the Asian, European, North American, and South American markets in collaboration with two long-time partners, SogoTrade and Hapi.

Notably, Bakkt and Hapi have also broadened their cryptocurrency trading portfolios in Latin America, entering such potential markets as Brazil, Guatemala, Argentina, and Mexico but they have now been joined by Spain. This step indicates Bakkt’s commitment to nurturing the trust built so far while striving to reach new channels of growth in key areas.

Additionally, the company has gone beyond Latin America by beginning to conduct crypto trades in Hong Kong and Singapore through the assistance of SogoTrade, a digital brokerage. The move is in line with the master plan of going global by 2024 so as to exploit the flourishing crypto markets in these vibrant economies. On this note, Bakkt CEO Gavin Michael expressed his delight and confidence in cryptocurrencies for promoting economic inclusiveness and interconnectivity worldwide. Michael said:

International expansion remains a key priority for us in 2024. At Bakkt, we believe that crypto has the power to enhance financial inclusivity and connect communities within the global economy. With our entry into new Asian markets like Hong Kong and Singapore, where the crypto economy is growing rapidly given recent regulatory clarity.

Related Reading | Bitcoin Futures OI Hit 2-Year High Amidst Price Pump

Binance’s FDUSD Hits ATH: 38% Soar Amid Market Turmoil

by

The emergence of the First Digital USD stablecoin (FDUSD) has created waves in the cryptoverse, particularly on the renowned exchange platform, Binance. Recent data reveals that First Digital USD trading pairs have surged to an all-time high, constituting a remarkable 38% of Binance’s total spot trading volume on February 12.

This substantial increase, a staggering 42.6% spike compared to the previous month, underscores the growing traction and acceptance of FDUSD among traders. Analysts attribute this surge to the favorable trading conditions associated with First Digital USD pairs. With zero maker fees and the BTC/FDUSD pair offering free trading, it’s no surprise that First Digital USD has become an attractive option for traders seeking cost-effective transactions.

Screenshot 149
FDUSD pairs share on Binance spot trading

Rebecca Stevens, a senior research analyst, suggests that the decision to discontinue support for BUSD on Binance might have prompted users to transition to the newer stablecoin. FDUSD’s inception in June 2023 by FD121, a subsidiary of Hong Kong-based custodian and trust company First Digital, marked a significant milestone in the cryptocurrency space.

Binance’s subsequent listing of FDUSD further bolstered its prominence, offering traders a seamless and fee-efficient avenue to engage in digital asset trading. As First Digital USD continues to gain momentum, its impact on the broader cryptocurrency ecosystem remains a topic of keen interest and scrutiny.

FDUSD Emerges as Top Choice Amid TUSD Uncertainty

At the beginning of the year, the stability of trueUSD (TUSD) had faltered, dropping below its $1 peg to $0.988, as reported by TWJ. This marked the second de-pegging incident in two months, following a similar decline to $0.9957 in June 2023. A key factor contributing to this decline was the surging demand for First Digital’s FDUSD stablecoin, supported by Binance.

Binance’s introduction of zero-fee FDUSD trading had spurred TUSD holders to switch, particularly with First Digital USD being the preferred stablecoin for token staking on Binance Launchpad. It was noted that TUSD holders offloaded their holdings amid uncertainties surrounding Launchpad pools.

Furthermore, concerns over TUSD’s association with Justin Sun, the founder of Tron and Poloniex, coupled with shrinking market cap due to potential hacks, have further fueled its downfall. As the crypto landscape evolves, First Digital USD’s dominance and TUSD’s challenges reflect the shifting dynamics within the stablecoin market.

Bitcoin Could See New All-Time High In 2024, Says Analysts

by

The year 2023 brought some relief for Bitcoin after its previous year’s drop in value. But the year 2024 looks more interesting – many experts think Bitcoin could start a major rise in price that takes it to new record levels. Crypto Rover, a well-known crypto market analyst, thinks Bitcoin might hit its highest price ever in 2024.

Screenshot 2024 02 11 000241

Crypto Rover is watching BTC price closely around the $48,500 level. He believes if BTC breaks above this level, especially reaching the 0.618 Fibonacci level, it could start a bullish upward trend in the crypto market. Traders commonly use Fibonacci levels to spot potential support and resistance levels in financial markets, including cryptocurrencies like BTC.

Screenshot 2024 02 11 000357
TradingView Chart by Crypto Rover

Similarly, Sean Farrell, head of digital asset strategy at Fundstrat, has gotten attention for predicting BTC could reach $116,000 by the end of 2024. He points to major new investments flowing into Bitcoin and the upcoming halving event, which will cut the new coin supply in half, as key drivers of his positive prediction.

Likewise, analysts at CryptoQuant expect a surge to $160,000, fueled by a potential US spot Bitcoin ETF approval and broader crypto market recovery. They think these catalysts could substantially increase demand, propelling the price upwards.

One main reason for the optimistic outlook is the upcoming Bitcoin halving event in April 2024. This event will reduce the mining reward per block from 6.25 BTC to 3.125 BTC, effectively decreasing the supply of new BTC. This creates scarcity, which with steady or increasing demand drives up the price.

The halving has boosted BTC value before. After previous halvings in 2012 and 2016, BTC price rose substantially in the following year each time. Based on these patterns, the 2024 halving could spark a new bull run taking BTC to unprecedented prices.

Institutional Adoption Driving Demand For Bitcoin

Another factor that could push BTC to new highs in 2024 is growing institutional interest and investment. The recent launch of US and Hong Kong spot bitcoin ETFs in late 2023 and early 2024 opened a new way for institutional investors to access the crypto market.

Unlike previous bitcoin futures ETFs, spot bitcoin ETFs let investors directly buy and sell the actual cryptocurrency without intermediaries. The Hong Kong ETF also offers both “in-kind” and “cash” redemption options. This added flexibility could attract more money into crypto.

Rising institutional adoption signals bitcoin’s increasing legitimacy as an alternative asset class. This could further boost demand and price as more investors seek to diversify with BTC to hedge against risks like inflation and currency devaluation.

Related Reading | Crypto Market Surges As Altcoin Interest Peaks, Analysts Predict Bullish Trends

Bitcoin Rally In 2024: Dragon’s Year Holds the Secret

by

As the Lunar New Year approaches, East Asian analysts are keeping a close eye on the crypto market, hoping for a rebound following Bitcoin’s recent dry phase. With the Chinese New Year set to kick off on Saturday, February 10, 2024, amidst celebrations, the Year of the Dragon is expected to bring good fortune and prosperity according to the Chinese Zodiac, and crypto enthusiasts are leveraging this symbolism as a source of hope.

The dragon, known for its representation of strength, hope, and guardianship of wealth, aligns with the aspirations of crypto proponents seeking resilience during challenging market conditions. Inspired by the dragon’s raised hands, a symbol of strength and determination, enthusiasts are adopting a war cry for tough times, emphasizing the need to move forward and persevere in the face of adversity.

Bitcoin
Bitcoin Rally In 2024: Dragon's Year Holds the Secret 7

CLSA, a Hong Kong-based brokerage firm, had previously predicted a year of market fluctuations in 2023, associating a calmer outlook with the Year of the Rabbit. True to its prediction, the market saw a notable recovery, with Bitcoin surging by nearly 94% and Ethereum doubling its value over the past year. Despite traditional analysts advising caution, the Year of the Dragon is being embraced with optimism by crypto enthusiasts.

Digital asset indices have consistently outperformed traditional stocks like the S&P 500, contributing to the bullish sentiment in the crypto community. Additionally, the anticipation of the upcoming Bitcoin halving is expected to further drive up prices. Following the successful launches of Bitcoin Spot ETFs, Asia, positioning itself as the next crypto powerhouse, is eager not to be left behind.

“Year Of Bitcoin”

Market enthusiasts are particularly eyeing Hong Kong for a potential crypto boost after the Chinese New Year celebrations. Speculations suggest that the region might witness the launch of new initiatives post-festive season, marking the beginning of the ‘Year of the BTC.’

Despite Ethereum’s underperformance in 2023, analysts are optimistic about its future, especially with the imminent Dencun hard fork scheduled for the mainnet. A surprising development has added to the intrigue, as a dormant Ethereum wallet, inactive for 8.5 years, has suddenly awakened, causing ripples in the community.

As the crypto world awaits the Year of the Dragon, the question lingers: will this symbolic year breathe new life into Bitcoin and usher in a period of prosperity for the crypto market? Soon, all will become clear.

SFC Advisory: Verify Virtual Asset Platforms Before Transition Ends

by

The Securities and Futures Commission (SFC) of Hong Kong has issued a stern reminder to virtual asset investors and trading platforms regarding regulatory compliance and the impending deadline for licensing. As of February 29, 2024, any virtual asset trading platform (VATP) operating in Hong Kong must submit a license application to the SFC. Failure to do so will result in the platform’s cessation of operations in Hong Kong by May 31, 2024.

SFC Caution: Verify Virtual Asset Platforms as Transition Nears

The Securities and Futures Commission emphasizes the importance of investors engaging exclusively with SFC-licensed VATPs. To ensure compliance, investors are encouraged to verify the regulatory status of the platforms they utilize. The SFC provides two crucial lists for reference: the “List of licensed virtual asset trading platforms” and the “List of virtual asset trading platform applicants.”

Platforms on the “List of licensed virtual asset trading platforms” have received formal licensing from the SFC, indicating compliance with regulatory standards. Those on the “List of virtual asset trading platform applicants” have submitted applications by the February deadline. However, the approval of these applications is pending, and investors are advised to exercise caution when trading on such platforms.

For investors involved with VATPs not listed on either category, the Securities and Futures Commission urges proactive measures before the May 31 deadline. Preparation includes closing accounts with unlicensed platforms or transferring assets to SFC-licensed platforms to safeguard investments.

It is crucial to note that applications from platforms on the “List of virtual asset trading platform applicants” are still under review. Consequently, trading on these platforms carries inherent risks, as approval is not guaranteed. The Securities and Futures Commission underscores the uncertainty associated with such platforms, urging investors to exercise diligence and prudence.

The overarching message is clear: investors should trade virtual assets exclusively on SFC-licensed VATPs. The Securities and Futures Commission underscores the importance of regulatory oversight in protecting investor interests and ensuring the stability and integrity of Hong Kong’s virtual asset market.

In conclusion, the Securities and Futures Commission’s recent announcement underscores the evolving regulatory landscape surrounding virtual asset trading in Hong Kong. Investors are urged to prioritize compliance and due diligence, aligning their activities with SFC guidelines and opting for licensed platforms to mitigate risks and safeguard investments in the dynamic realm of virtual assets.

Cardano: Analyst Predicts Consolidation Until April 2024, Bull Rally On The Horizon

by

Analysts constantly scrutinize charts and patterns to predict the future movements of various digital assets. In the latest analysis that caught the attention of many enthusiasts, analyst Ali pointed out a potential correlation between Cardano’s current price behavior and its performance in late 2020.

According to Ali, if the patterns align, ADA could be gearing up for an extended period of consolidation until April 2024. For those unfamiliar with the term, consolidation refers to a phase in which an asset’s price stabilizes, often moving within a tight range. This period is crucial as it sets the stage for the asset’s next significant move, which could either be a bullish rally or a bearish trend.

image 7 1

If Ali’s prediction holds, Cardano investors might need to buckle up for a few more months of relative price stability. However, the silver lining lies in anticipating a potential bull rally after the consolidation phase concludes.

Late 2020 was a remarkable period for Cardano, with the cryptocurrency experiencing a surge in value and gaining significant attention within the market. If history repeats itself, ADA enthusiasts could be in for another exciting ride as the consolidation phase paves the way for a potential upward trajectory.

Current Correction: Cardano Price Retreats 34% Post-Rally

Reflecting on Cardano’s recent performance, investors have had reason to celebrate. Over the past few weeks, ADA saw an impressive 184% surge in value from October 19, 2023, to December 12, 2023. This surge overcame significant obstacles, but a subsequent pullback has seen Cardano’s price drop 34% from its local top of $0.680 on December 12, 2023, to its current trading value of $0.5064. Analysts attribute this correction to profit-taking and capital rotation following the substantial rally.

ADA 1Y graph coinmarketcap
Source: CoinMarketCap

Beyond price movements, the development front for Cardano remains robust. Recent reports indicate a considerable increase in development activity over the last seven days. Cardano’s weekly development report reveals 83.2 million completed transactions, 9.52 million native tokens, and a growing ecosystem with over 157 projects launched and more than 1,300 in development on the ADA blockchain. These developments suggest a thriving ecosystem supporting Cardano’s overall growth and sustainability in the cryptocurrency market.

image 7 2

Related Reading | Hong Kong To Tighten Crypto Regulation Amid Fraud Concerns

Cardano Surpasses 4M Transactions, Unveils Robust Development Ecosystem

by

The Cardano blockchain continues to make waves in the cryptocurrency space, as it recently surpassed 4 million transactions in the last two months. December and January witnessed the launch of eight new projects on the Cardano platform, while an additional seventeen projects are currently in the development pipeline. With a total of 157 projects already launched and 1,320 in progress, Cardano’s growth is evident.

image 5 1

Cardano’s Growth Fueled By Innovative Projects

One of the key drivers behind Cardano’s success is its technological progress. The number of token policies on the platform surged by 13,109, leading to the minting of 480,000 new native tokens. Furthermore, the development of Plutus scripts, enabling smart contracts on Cardano, saw substantial growth. Plutus V1 scripts increased by 81, reaching a total of 6,332, while Plutus V2 scripts expanded by 13,091, hitting a new total of 17,718.

As per the latest weekly development report, the Marlowe team has been actively enhancing the marlowe-cardano project. Notable achievements include creating a non-SRE process for running benchmarks, optimizing the Marlowe Runtime, and merging repositories to streamline the development process. Several modules were deprecated as part of ongoing efforts, and the team assessed the feasibility of supporting impactful CIPs for future development.

The Hydra team conducted yearly road mapping sessions, introduced API changes, completed off-chain logic implementation for incremental decommits, and introduced a hydra-explorer backend. Meanwhile, the Mithril team focused on certifying Cardano transactions, completed the signature of the transactions set, implemented the aggregator route, and enhanced the resilience of computing the list of immutable files in a Cardano node database.

Voltaire and Sanchonet witnessed crucial developments, including a feature enabling stake pool operators to vote on security-relevant protocol parameter updates. Bug fixes were implemented, addressing issues related to voting, safeguarding against orphaned reward accounts, and ensuring proper encoding in CBOR.

In its second week of voting in Fund11, Project Catalyst garnered significant community participation. Almost 5,000 wallets cast over 150,000 votes across 920 proposals seeking community funding. The voting period for Fund11 extends until February 8th, with results expected by February 15th.

As Catalyst progresses, February 4th marks the deadline to apply to run a Catalyst working group. However, the community’s dedication to innovation and governance is showcased through these active and dynamic developments across various projects on the blockchain.

Related Reading | Hong Kong’s VSFG Eyes Ethereum ETF Following Bitcoin Triumph

Bitcoin ETFs Thrive: ARKB Tops Charts, GBTC Stumbles

by

In the three weeks since their inception, Bitcoin exchange-traded funds [ETFs] have demonstrated resilience in trading volumes, overcoming recent market downturns. Leading the pack is the ARK 21Shares BTC ETF [ARKB], closely followed by Fidelity’s FBTC. However, the well-established grayscale Bitcoin Trust [GBTC] has witnessed a decline amid the rising fortunes of its counterparts.

The iShares BTC ETF [IBIT] has notably attracted substantial inflows, although the past week has seen a tapering off of such investments. Popular crypto analyst Layergg reported positive trends, stating, “New US ETFs: +170,628 BTC; GBTC Outflow: -132,136 BTC Total BTC net flow: +28,103 BTC. The selling pressure on GBTC is diminishing, and the net flows of BTC ETFs are starting to look good.”

Bitcoin ETFs are emerging as the investment of choice, outshining traditional assets like gold. J.P. Morgan’s recent chart highlights a significant influx into BTC funds coinciding with a simultaneous outflow from gold ETFs. Layergg too emphasized this shift, noting, “Bitcoin vs Gold Bitcoin ETF flows after first 14 trading days: $1.7 billion Gold ETF flows after the first 14 trading days: $1.3 billion. We are seeing a shift in interest from gold ETFs to BTC ETFs on TradFi.”

Bitcoin
Bitcoin ETFs Thrive: ARKB Tops Charts, GBTC Stumbles 13

The trajectory of Bitcoin ETFs mirrors the launch of gold ETFs, suggesting a potential comparable journey for the dominant crypto. Layergg remarked, “To date, BTC ETFs are proceeding in a fractal similar to the launch of gold ETFs. This trend, while not directly linked to the crypto asset, suggests a possibility that BTC could follow a similar trajectory.”

Bitcoin Buzz in Hong Kong

Even in the relatively cautious digital asset landscape of Hong Kong, Harvest Hong Kong, a prominent fund company in China, has recently applied for a BTC spot ETF with the Hong Kong Securities and Futures Commission. This marks a milestone as the first institution in Hong Kong to seek approval for a BTC spot ETF, indicating growing acceptance and interest in cryptocurrency investments.

As Bitcoin ETFs continue to evolve, their impact on traditional financial markets and the broader crypto landscape remains a topic of increasing attention and speculation.


Floki’s Staking Programs: Responding To SFC Warning and Defending High APY

by

Floki has issued a comprehensive response to the Hong Kong Securities and Futures Commission’s (SFC) public warning about its staking programs, the “Floki Staking Program” and the “TokenFi Staking Program.”

The SFC’s caution, released on January 26th, expressed concerns about the high annualized returns promised by both staking programs, ranging from 30% to over 100%. In its official response titled “STATEMENT: RESPONDING TO HK SFC WARNING,” they acknowledged the SFC’s notice and expressed regret that the commission deemed it necessary.

Floki Addresses SFC Concerns: A Detailed Explanation

They clarified that, since December 2023, the project has been actively working with legal advisors to address potential regulatory issues related to the staking programs. The statement highlighted specific measures taken in Hong Kong, including prominent warnings on the staking websites, practical measures to block users from Hong Kong, and the suspension of offline marketing in the region.

The core issue identified by the SFC is the exceptionally high Annual Percentage Yield (APY) offered by the Floki and TokenFi staking programs. Floki sought to address this concern in a detailed explanation of the staking mechanism.

According to the statement, the unique feature of its staking program lies in rewarding participants with $TOKEN. Unlike other projects that use inflation or allocate a small percentage for staking, Floki concentrated rewards in the hands of users by avoiding fundraising from venture capitalists or presales.

Its APY is influenced by the market forces of $TOKEN, which, in turn, is tied to the success and market cap of TokenFi. The statement clarified that the APY has decreased as more users participated, emphasizing the volatile nature of rewards.

image 113

Furthermore, they emphasized the decentralization of its staking programs, assuring users that even if the team were to disappear, the programs would operate independently on the blockchain. The statement underlined the equal application of staking rules and the inability of the team to alter rewards or access users’ tokens.

Nevertheless, Floki’s response aims to provide transparency and clarity, assuring users of the project’s commitment to compliance and responsible engagement with regulators. The evolving regulatory landscape in the crypto space continues to pose challenges, and projects like Floki strive to navigate them while maintaining their commitment to decentralization.

Related Reading | Solana’s Jupiter Leads DeFi Charge With $500M+ Trading Volume

Crypto Turbulence: Grayscale (GBTC) Outflows Drive Market Fluctuations

by

The global cryptocurrency market has faced a considerable downturn, triggered by significant outflows from the Grayscale Bitcoin Trust (GBTC). The repercussions have reverberated across digital asset investment products in Europe and Canada.

According to the latest CoinShares Digital Asset Fund Flows Weekly Report, the past week witnessed a staggering $500 million in outflows from digital asset investment products. Notably, the United States, Switzerland, and Germany experienced the bulk of these outflows, amounting to $409 million, $60 million, and $32 million, respectively.

image 116

The decline in cryptocurrency prices can be attributed to substantial outflows from Grayscale, the incumbent ETF issuer in the US, totaling a staggering $5 billion since January 11, 2024. Despite this, there are signs that outflows from Grayscale are beginning to subside, with the daily total steadily decreasing over the week. In contrast, newly issued US ETFs managed to attract inflows of $1.8 billion last week, bringing the total net inflow, including Grayscale, to $807 million since their launch.

Bitcoin bore the brunt of the outflows, experiencing a $479 million reduction, while short-bitcoin funds saw additional inflows totaling $10.6 million. Altcoins, such as Ethereum, Polkadot, and Chainlink, faced outflows of $39 million, $0.7 million, and $0.6 million, respectively. On a brighter note, blockchain equities saw inflows totaling $17 million.

image 114
Source: CoinShares

GBTC Outflows Begin To Slow

Meanwhile, Kaiko’s recent report further sheds light on the situation, highlighting that Bitcoin is rebounding as GBTC outflows slow down. Grayscale’s GBTC has witnessed significant outflows of approximately $5 billion since its conversion, with an average daily pace of nearly $500 million. Despite these outflows, GBTC still manages to hold $20 billion in assets.

Trade volumes and outflows have shown signs of slowing, providing much-needed support for Bitcoin. The recent market selloff is attributed to short-term factors such as forced selling on platforms like FTX and profit-taking by investors who capitalized on GBTC’s discount over the past two years.

However, uncertainties persist regarding the extent of new money entering the market versus rotation between different products. The mixed performance of BTC-linked stocks and investment vehicles since January 11 further adds complexity to the overall market dynamics. 

Related Reading | Harvest Hong Kong Seeds Bitcoin ETF Trail in Landmark Submission