TronWeekly

Crypto World News

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

Search Results for: hong kong

Meitu’s Crypto Adventure: From Bitcoin & Ether To AI and Global Expansion

by

Meitu, a Hong Kong-listed company, has made headlines by becoming one of the first companies in the region to invest heavily in cryptocurrencies, particularly Bitcoin and Ethereum, to the tune of approximately $100 million. However, Meitu is now shifting its focus away from the volatile world of cryptocurrency and may consider selling its holdings at an opportune time.

The company’s recent success can be attributed to its subscription system, which has helped it turn losses into profits. Kang Yicong, senior investor relations manager at Meitu, emphasized the role of the subscription system in stabilizing earnings amidst macroeconomic uncertainties. Additionally, Meitu’s expansion into the booming AI business has been a significant growth driver, boosting subscriptions and contributing to profits.

Meitu’s foray into the world of cryptocurrency raised eyebrows, but Kang Yicong clarified that the company is open to selling its digital assets at the right moment. The market’s recent resurgence has been a boon for Meitu, reversing some of the losses it previously incurred due to bearish cryptocurrency markets.

In 2023, Meitu is capitalizing on the global AI craze, launching the enterprise AI vision solution “MiracleVision 3.0.” Kang Yicong highlighted AI’s pivotal role in driving the company’s growth, particularly in converting subscribers. Meitu is also looking to expand its corporate customer base and is introducing innovative solutions like “Beauty Industry” to cater to merchant and consumer needs.

While Meitu’s cryptocurrency investments have been a point of discussion, Kang Yicong affirmed that the company currently has no specific plans for disposal. Meitu’s future plans include a global perspective, focusing on Southeast Asia, Japan, South Korea, Europe, and the United States. The company aims to repackage its successful Chinese products for overseas markets.

Hong Kong’s Retail Crypto Investors 

In the broader context of Hong Kong, a recent report by the Investor and Financial Education Council (IFEC) revealed that 47% of retail crypto investors in the region are aware of the Virtual Asset Trading Platform Regulatory Regime. The report also highlighted a significant increase in crypto investments among adults aged 18-29, with 25% having invested in the past year, driven by the desire for short-term profits and the fear of missing out.

Despite this growing interest in crypto, stocks remain the preferred investment choice for most Hong Kongers, with 96% favoring them. Mutual funds, trusts, and bonds also feature prominently in investment preferences, emphasizing the importance of financial literacy and rational decision-making in the virtual asset investment landscape.

FTX: Alameda’s Secret Audio Exposes Financial Misconduct

by

An undisclosed audio clip has emerged, shedding light on how Alameda’s employees, affiliated with FTX, learned about the dire situations faced by both entities. The 75-minute recording, secretly captured by Rick Best during an all-hands meeting in Hong Kong on November 9, 2022, features ex-CEO Caroline Ellison divulging startling details about Alameda’s financial precariousness.

Ellison revealed that Alameda had borrowed significant amounts through open-term loans to invest in illiquid assets, predominantly in FTX. During the meeting, she admitted that Alameda had utilized user funds from the SBF-led exchange, leading to a shortfall in user funds. To the astonishment of the 15 employees present, it was revealed that Alameda had been borrowing user funds without their knowledge, causing FTX to face financial challenges.

FTX
FTX: Alameda's Secret Audio Exposes Financial Misconduct 2

Christian Drappi, a former software engineer at Alameda, provided a copy of the audio to the prosecutors. Drappi’s testimony exposed the extent of the misuse of FTX user deposits by Alameda. He questioned Ellison about her awareness of these activities, leading to a tense exchange where Ellison hesitated to answer Drappi’s inquiries.

Ellison later confessed that Bankman-Fried, herself, Gary Wang, and Nishad Singh—the latter three having all accepted plea deals—were aware. When asked who instructed the use of FTX customer funds, she hesitantly responded, “Um, Sam, I suppose?” with a nervous giggle.

Alameda Staff Had No Clue On Fund Withdrawal From FTX

Drappi, who joined Alameda almost a year ago, had no knowledge of Bankman-Fried’s alleged conspiracy to withdraw customer funds from FTX to spend—through Alameda—on venture investments, loan repayments, and risky crypto bets. That changed on Nov. 8, at approximately 11 p.m.

Ellison’s revelations, including undisclosed details about the abandoned acquisition of FTX by Binance, left employees stunned. Alameda Research Engineer Aditya Bharadwaj stated that it became evident that there was no future for the company, leading to the abrupt departure of the staff shortly after the meeting.

The shocking revelations stand as a stark reminder of the importance of trust, integrity, and adherence to ethical standards in the fast-paced world of cryptocurrency, urging companies and investors to exercise vigilance in their dealings.

BitMEX Co-Founder Predicts Bitcoin’s Price To Reach $750,000 – $1 Million By 2026

by

BitMEX co-founder Arthur Hayes has made a bold prediction for the future price of Bitcoin, foreseeing a substantial surge in the cryptocurrency’s value. In a recent interview on Impact Theory with Tom Bilyeu, Hayes expressed his belief that Bitcoin could reach a price range between $750,000 and $1 million by 2026.

Concerns about a potential major financial crisis accompany Hayes’s optimistic outlook. He anticipates a crisis that could rival or surpass the severity of the Great Depression, looming on the horizon before the end of this decade. 

However, Hayes suggests that before the crisis unfolds, there will be a remarkable bull market across various asset classes, including stocks, real estate, cryptocurrencies, and art. He envisions this as the most significant surge since World War II.

What adds weight to Hayes’s prediction is his expectation of a significant catalyst for Bitcoin’s price increase. He believes that the approval of a BTC spot exchange-traded fund (ETF) in the United States, Europe, and potentially Hong Kong, coupled with the BTC halving event, could drive the cryptocurrency’s price to a new all-time high of $70,000 by June or July of 2024.

Arthur Hayes’s forecast continues beyond there. He suggests that after BTC recovers its previous peak by the end of 2024, the “real fun” begins, marking the start of a genuine bull market. This phase could propel Bitcoin to reach the $750,000 to $1 million range on the upside.

Jim Cramer Warns of Bitcoin Downturn

While Hayes remains confident in BTC’s future, notable CNBC host Jim Cramer has issued a contrasting warning. Cramer expressed concerns about Bitcoin’s trajectory, hinting at an impending significant downturn for the digital currency. He pointed out that many investors seek ways to preserve and grow their wealth, but he is cautious about Bitcoin’s near-term prospects.

In response to Cramer’s comments, billionaire investor Paul Tudor Jones expressed his unwavering confidence in Bitcoin during an appearance on CNBC’s “Squawk Box.” Despite growing concerns about Federal Reserve rate hikes and geopolitical uncertainties, Jones believes that Bitcoin, alongside gold, remains a reliable hedge against economic turmoil.

These differing opinions from prominent figures in the financial world highlight the ongoing debate surrounding the future of cryptocurrencies and their role in a rapidly changing global economy. Nevertheless, the evolving landscape of digital assets and the broader financial market will likely continue attracting optimism and skepticism from various quarters.

Related Reading | Brazilian Committee Targets Binance: Serious Allegations Emerge – Report

OKCoin Rebrands To OKX Amidst Regulatory Challenge

by

In a strategic move, cryptocurrency exchange OKCoin has announced its rebranding initiative, replacing its brand with OKX. This transformation has already been implemented in various regions, including Latin America, the Middle East, North Africa, South Asia, and Hong Kong. The rebranding process is set to continue in Singapore, the European Union, and ultimately the United States, where OKCoin is headquartered.

The decision was communicated by the platform’s president, Hong Fang, through a series of posts on X. Fang expressed mixed emotions about the rebranding, describing it as a bittersweet moment after five years of guiding the business. She emphasized the positive impact the transition would have on customers and the overall business operations. According to Fang, the rebranding to OKX in key operational regions signifies a significant step forward and sets the stage for exciting developments in the future.

OKCoin
OKCoin Rebrands To OKX Amidst Regulatory Challenge 4

Fang acknowledged the company’s growth journey over the past decade, highlighting key milestones such as registering with FINCEN, building a strong core team in the Bay Area, and navigating the complex process of obtaining MTL licenses state by state. The pivotal moment came in January 2023 when OKCoin made the strategic move to join forces with OKX, its longstanding sister company.

OKCoin Face FDIC’s Wrath

This transition paved the way for the decision to unify the platforms under a single brand, OKX, driven by a strong philosophical alignment between the two entities and the potential for synergies in their collaboration. However, OKCoin’s rebranding comes at a challenging time, marked by regulatory hurdles.

The U.S. banking regulator, Federal Deposit Insurance Corp. [FDIC], has accused OKCoin USA Inc., of misleading statements. The FDIC demanded the immediate removal of any offending claims from the site or potentially face enforcement action for violating U.S. banking law. This warning from the FDIC echoes a series of similar cautions issued to various crypto firms by the banking watchdog.

Amidst these challenges, OKCoin’s strategic rebranding to OKX represents a bold step forward, demonstrating the platform’s resilience and commitment to evolving in the face of regulatory scrutiny.

Bitmain’s Struggle: Navigating Cryptocurrency Storm Amidst Financial Turmoil

by

Bitmain, the prominent Bitcoin mining machine manufacturer, finds itself at a crossroads as it grapples with financial instability amidst the ever-volatile cryptocurrency market. The company’s recent decision to suspend a portion of its employees’ salaries for September has sent shockwaves through the industry and raised questions about the sustainability of their operations.

Bitmain’s financial woes came to light when the company issued a notice on October 3, citing the failure to achieve a positive operating cash flow for the month of September. The decision to withhold a significant portion of employees’ salaries for the month was made as a consequence of these financial challenges. Several internal sources have confirmed the authenticity of the notice.

F75E3sGbwAAgsEv
Source: X

Unveiling S21 Amidst Bitmain’s Payroll Woes

The timing of this announcement is especially concerning, given that Bitmain had recently hosted a high-profile conference in Hong Kong where it unveiled its latest product, the S21 mining machine. This move was seen as an attempt to regain market share and compete in an increasingly competitive mining industry.

However, the situation took a turn for the worse on October 8, when reports emerged on the workplace social platform Maimai Community that Bitmain was facing severe cash flow issues. Allegedly, the company has not paid its employees the 2022 year-end bonus, and in September, it deducted half of the basic salaries of all employees, with performance-based wages being fully withheld.

Wu Shuo Blockchain, a reputable source, reported that multiple internal Bitmain employees have corroborated the news. The EMT (Executive Management Team) reportedly decided to suspend salary payments due to a lack of positive cash flow, with a plan to reassess the situation after the October 7th holiday.

Bitmain’s financial difficulties underscore the inherent risks associated with the cryptocurrency industry, where market fluctuations can have a profound impact on even the most established players. As the company navigates these challenging times, the broader crypto community will be closely watching to see if Bitmain can weather the storm and emerge stronger or if it will face further setbacks in the uncertain world of digital currencies.

Cardano Enters Uptober With Profit Potential Amidst Market Rollercoasters

by

In the midst of the cryptocurrency market’s recent whirlwind, Cardano has emerged as a strategic focal point for traders seeking short-profit opportunities. Santiment, a prominent analytics firm, has identified this altcoin as a potential candidate to decouple from broader market trends, creating profitable windows for astute traders, particularly during Bitcoin’s surge above $28,000.

Cardano
Cardano Enters Uptober With Profit Potential Amidst Market Rollercoasters 8

Cardano’s native token ADA, the eighth largest cryptocurrency by market capitalization, has garnered particular attention in this scenario. Santiment’s analysis indicates that ADA, amidst its technical challenges and market hurdles, offers a brief yet lucrative window of opportunity. Despite a modest 2% dip in the daily index, ADA reached a month-high value of $0.26 on October 2nd, riding the wave of the “Uptober” price pump. Notably, the token boasts a commendable 6% increase in the weekly index, showcasing its resilience amidst market volatility.

This surge in ADA’s value comes at a critical juncture. Despite regulatory concerns and fierce competition from layer-2 networks like Base, Arbitrum, and Optimism, Cardano’s developers and key contributors have intensified their efforts. This strategic push, characterized by heightened BUIDLing activity across the ecosystem, aims to reclaim lost market share and fortify ADA’s position in the ever-evolving crypto landscape.

Cardano’s Ecosystem Soars: 1,287 Projects Showcase Developer Fervor

Displaying resilience, Cardano’s developers and key contributors have embarked on a robust building spree, aiming to reclaim market share and strengthen the platform’s position in the blockchain industry. Input Output Hong Kong [IOHK], the independent foundation spearheading Cardano’s growth, has recently unveiled its latest development report, showcasing remarkable progress and a burgeoning ecosystem.

Cardano
Cardano Enters Uptober With Profit Potential Amidst Market Rollercoasters 9

A key takeaway from the report is the surge in projects on the network. As of the latest update, there are an impressive 1,287 projects actively building on the decentralized proof of stake [PoS] blockchain. This surge signifies the addition of ten new projects in September alone. A comparative analysis with previous months underscores this growth; August reported 1,277 projects, with July slightly lower at 1,265.

One notable achievement is the exhaustive analysis conducted by the foundation’s performance and tracing team. This analysis meticulously benchmarked various ADA clusters, leading to the enhancement of several backend features. These improvements translate into a smoother, more efficient experience for both developers and users navigating the Cardano network.

Sygnum Follows Coinbase’s Path with Singapore’s MPI License Approval

by

The Monetary Authority of Singapore (MAS) has granted an MPI license to Sygnum’s subsidiary, marking a significant milestone. Within just four months, Sygnum Singapore has progressed from provisional approval to obtaining a full license. Moreover, the company now has plans to expand its regulated services to the Asia-Pacific (APAC) markets, with a particular focus on Hong Kong.

This recent development for Sygnum Singapore closely follows Coinbase’s acquisition of its MPI license from Singapore’s central bank. In an official statement, Sygnum highlighted that a substantial 25% of Singaporeans view cryptocurrencies as the future of finance, with 32% having either previously or currently owned cryptocurrencies. These statistics underscore Singapore’s growing prominence in the cryptocurrency industry.

Furthermore, the post also revealed that Singapore hosts more than 700 Web3 companies, solidifying its position as a pivotal market for the crypto and Web3 economy’s growth.

Sygnum’s MPI License Opens Doors for Enhanced Crypto Offerings in Singapore

During the first quarter of 2022, Sygnum Singapore was granted provisional approval by the Monetary Authority of Singapore to expand its range of regulated activities under its existing capital markets services [CMS] license. It’s worth noting that Sygnum initially obtained its CMS license back in 2019, enabling the company to conduct asset management operations. Regarding the significance of this recent license acquisition, a representative from the company stated,

“Receiving the MPIL allows us to bring more of Sygnum’s suite of fully regulated crypto offerings to our clients in Singapore. This additional Licence enables us to extend our service offering to also offer DPT trading services to our clients.”

Singapore is widely recognized as a leading global cryptocurrency hub. Many prominent companies, including Ripple and Crypto.com, have been granted licenses by the Monetary Authority of Singapore to expand their operations in this area. This recent trend highlights the appeal of Singapore as a well-regulated and efficiently managed region, drawing in these companies.

Simultaneously, Singapore boasts the world’s highest rating for digital infrastructure and ranks prominently in the World Bank’s Ease of Doing Business Index, solidifying its position as a highly competitive and attractive hub for businesses.

Mixin Network’s Bid $20M Bug Bounty For Hacker Behind $200M Breach

by

In a strategic maneuver within the crypto realm, Mixin Network, the decentralized cross-chain protocol, sent a message to the hacker responsible for the staggering $200 million exploit on September 23. The message comes with an offer: a $20 million bug bounty in exchange for returning the stolen funds.

The message, encrypted with details of the exploit, implores the wrongdoer to consider that a substantial portion of the looted assets belong to users. It states, “Most of our platform assets were users, and we hope you can refund them. You can keep $20M of the assets as a BUG Bounty Reward for the BUG.”

The official confirmation of the exploit arrived conspicuously on September 25. In a candid disclosure, Mixin Network unveiled that the malefactors had adeptly penetrated the defenses of a third-party cloud service provider, thereby precipitating the unfortunate depletion of almost $200 million worth of assets from the platform. 

Mixin Founder’s Strengthens Community Trust

Feng Xiaodong, the visionary founder of Mixin, committed to compensating impacted users, offering restitution of up to a cap of 50%. The residual amount will be distributed as bond tokens, with the company strategically earmarking its earnings for their repurchase. This strategic move demonstrates Xiaodong’s dedication to rectifying the situation and fostering trust within the Netwok community.

The finer details surrounding the exploit remain shrouded in mystery. However, an on-chain analytic platform has highlighted the hacker’s prior engagements with Mixin Network. The address linked to the hacker, 0x1795, received 5 Ether (ETH) amounting to $1,588 from Mixin in 2022.

The modus operandi behind the audacious $200 million heist via a data breach continues to baffle experts. Cross-chain protocols, pivotal in decentralized finance (DeFi), have borne the brunt of some of crypto history’s most monumental exploits. Reports indicate that over half of all DeFi exploits have transpired within the domain of cross-chain protocols, culminating in staggering losses of over $2.5 billion.

The cross-chain protocols facilitate seamless interactions between distinct blockchain networks, enabling users to transfer assets. These protocols frequently accumulate substantial assets from various chains, rendering them susceptible to potential exploits.

Related Reading:| Hong Kong’s Crypto Crisis: Mixin Network Temporarily Halts Services

Ethereum Faces Bearish Trends Amidst Potential Short Squeeze & Inflation Shift

by

In recent weeks, Ethereum has faced a bearish onslaught, but a potential short-squeeze event may be lurking on the horizon. CryptoQuant.com’s tweet on the matter has raised eyebrows in the crypto community. 

According to the tweet, “Consistent negative funding rates can potentially trigger a cascade of short liquidations, which in turn could lead to a sudden price rebound.” The insight comes from trader Shayan, who suggests a significant price turnaround might be in the cards.

To understand this prediction, one must delve into the futures market. The Ethereum funding rates metric, which indicates periodic payments to traders based on the difference between perpetual contract markets and spot prices, has been negative. These negative readings signal a prevailing bearish sentiment among futures traders. 

image 50

As Ethereum’s price undergoes consolidation after sharp declines, the negativity in funding rates implies that traders anticipate further price drops. However, a noteworthy aspect is the potential for a short squeeze.

A cascade of short liquidations can occur when consistent negative funding rates persist. It could result in an abrupt price rebound, catching bearish traders off guard and potentially leading to a short squeeze, where short sellers are forced to buy back their positions, further driving up the price.

Ethereum’s Shift from Deflation to Inflation

Apart from short-term price concerns, ETH has witnessed a shift in its inflationary dynamics. Recent data shows that Ethereum’s inflation rate stands at 0.270%, a notable change from the deflationary trend observed earlier this year. This shift can be attributed to decreased network activity and lower on-chain fees, which have curtailed base fee burning.

image 50 1

The transition from a deflationary to an inflationary trend was primarily driven by two key events: the implementation of EIP-1559 (London hard fork) and The Merge’s switch from proof-of-work (PoW) to proof-of-stake (PoS). EIP-1559’s fee-burning mechanism and PoS consensus have significantly influenced Ethereum’s issuance rate.

In terms of transaction activity, Ethereum has experienced a noticeable lull, with daily transactions hitting significant lows in mid-year and early September. Network fees have mirrored this reduced activity, with September 9 and 10 registering the lowest daily fees of the year.

image 50 2
Source: Dune Analytics

Nevertheless, Ethereum finds itself at a crossroads with potential short-squeeze risks and a shift towards inflation. The crypto market’s resilience and Ethereum’s adaptability will play crucial roles in determining its future trajectory.

Related Reading | Hong Kong’s Crypto Crisis: Mixin Network Temporarily Halts Services

FTX Launches $157.3M Lawsuit Against Former Salameda Employees

by

In a legal showdown that continues to unravel the tumultuous world of crypto, FTX, the now-bankrupt crypto exchange, has launched a lawsuit against former employees of Salameda, a Hong Kong-incorporated entity with ties to FTX. The lawsuit seeks to recover a staggering $157.3 million.

The allegations put forth in the filing accuse a group of individuals, including Michael Burgess, Matthew Burgess, Lesley Burgess, Kevin Nguyen, Darren Wong, and two associated companies, of orchestrating a scheme involving FTX accounts. 

During the 90 days leading up to the exchange’s bankruptcy filing on November 11, 2022, known as the Preference Period, the defendants are alleged to have benefited from withdrawals deemed preferential transfers that are subject to scrutiny under the Bankruptcy Code. 

The filing asserts that these individuals raced to withdraw assets and leveraged their connections within the exchange to ensure preferential treatment over other clients.

FTX Lawsuit: Slack Messages as Evidence

Messages exchanged on the communication platform Slack are cited as evidence in the lawsuit, suggesting that Matthew Burgess enlisted fellow FTX employees to expedite specific withdrawal requests while falsely representing an account as his own. 

Notably, these transfers were executed mere hours before the exchange ceased withdrawals on November 8, 2022, with over $123 million of the $157.3 million withdrawn on or after November 7. The lawsuit contends that these actions were undertaken with the intent to hinder, delay, or defraud FTX US’s current or future creditors.

Recently, a lawsuit has been leveled against the parents of Sam Bankman-Fried, the founder of FTX Trading. This lawsuit alleges that Allan Joseph Bankman and Barbara Fried used their influence over their son to divert substantial sums from the beleaguered company. 

The suit further claims that Bankman directed over $5.5 million in charitable contributions from the exchange to Stanford University, where he serves as a law professor. These contributions are characterized as “naked self-dealing” aimed at benefiting Stanford at the expense of FTX Group.

In response, Stanford University has announced its intention to return the funds obtained from gifts originating from FTX and related entities. A spokesperson for the university clarified that these funds were primarily earmarked for pandemic-related prevention and research efforts. 

The university is presently engaged in discussions with the exchange debtors’ attorneys regarding the return of these contributions, although the precise monetary value remains undisclosed.