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Huobi’s Trademark Battle Ignites A Green Spark For Huobi Token

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Huobi founder Li Lin has taken legal action against Huobi Global, filing a trademark infringement lawsuit in the High Court of the Hong Kong Special Administrative Region. 

The lawsuit alleges that Huobi Global has been unlawfully using the Chinese trademark “火币” without proper authorization.

The controversy arose from the acquisition of the exchange by Justin Sun, a prominent figure in the cryptocurrency industry, who purchased the company for a staggering sum of over $1 billion just last year. 

Trouble between the parties escalated when Sun froze the account belonging to Li Lin’s brother and accused him of dumping HT earlier this year.

According to exclusive information obtained by Wu Shuo, a reliable source in the cryptocurrency sector, X-Spot Co., Ltd., a company controlled by Li Lin, officially filed a lawsuit against the exchange. 

The legal action asserts that X-Spot Limited, as the rightful owner of the exchange trademark, has not authorized Huobi Global to use the brand name.

During the acquisition process, when the original shareholders transferred their Huobi Global shares to About Capital Management, they explicitly agreed to maintain the exclusive rights to the “Huobi” trademark.

The equity transfer and asset delivery agreement between the parties explicitly prohibited the buyer and the exchange from utilizing the “Huobi” trademark and brand. These measures were put in place to safeguard X-Spot Limited’s exclusive rights.

Huobi Token Price Analysis

Despite the ongoing legal battle, the exchange’s token has shown promising signs in recent days. Both the daily and weekly charts have witnessed notable gains as the cryptocurrency turned green, indicating positive market performance. It appears that the token’s value remains unaffected by the legal turmoil surrounding its parent company.

According to the latest data from CoinMarketcap, HT is currently trading at $2.70, showcasing a bullish upside ride of approximately 4% within the past 24 hours. The weekly chart also displays an increase of 1.89%, signifying a touch of market volatility.

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Huobi's Trademark Battle Ignites A Green Spark For Huobi Token 2

Drawing attention to HT’s trading volume, it has observed a notable increase of 13.20% to a staggering $17,508,810,578. The market capitalization has experienced a decrease of 4.27%.

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Japanese Crypto Exchanges Seek Relaxation of Margin Trading Restrictions: Report

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In a bold move, Japanese cryptocurrency exchanges are striving to loosen the reins on margin trading, with plans to submit a proposal to the Japan Financial Services Agency (FSA) in the coming month. 

This endeavor seeks to enable retail investors to leverage their trades by four to ten times, a significant increase from the current maximum borrowing exposure.

According to the Japan Virtual & Crypto Assets Exchange Association, many industry insiders advocate for permitting retail investors to leverage their trades at higher ratios. 

Genki Oda, the association’s Vice Chairman, emphasized the potential benefits, stating that such reform could make Japan more appealing to crypto and blockchain companies, thereby encouraging more trading activities.

Oda revealed that the nation’s digital-asset exchanges are actively discussing a recommended leverage limit and are poised to present their proposal to the FSA in the near future. While Japan has made strides in easing certain crypto regulations related to token listing and taxation, it is generally known for its stringent regulatory environment. 

Notably, the Japanese branch of the failed exchange FTX managed to return funds to its clients earlier this year, a testament to Japan’s focus on investor protection.

Crypto Firms Must Present Convincing Reasons for Loosening Caps

The FSA remains cautious and insists that crypto firms must present compelling reasons as to how relaxing margin trading restrictions would align with the government’s objective of expanding blockchain-based industries. The agency, however, expressed its willingness to engage in discussions with digital-asset businesses on this matter.

Once boasting leverage ratios as high as 25 times, Japanese crypto platforms witnessed a significant decline in margin trading volumes, plummeting 75% by 2022 due to the FSA’s imposed limit of two times leverage. 

In comparison, digital-asset exchanges in other jurisdictions typically offer margin trading ratios between five and ten times initial deposits, with some platforms providing even more aggressive lending options.

Oda asserted that digital-asset volatility has decreased since 2020, and Japanese exchanges possess the necessary capabilities to help investors manage the risks associated with margin trading. Nonetheless, he anticipated that any relaxation of leverage rules would not occur before 2024.

Following the global crypto market crash in the previous year, regulators worldwide implemented stricter measures to address risky practices. While some jurisdictions like Hong Kong and Dubai aim to attract digital-asset firms, the United States has taken a more stringent approach.

In 2023, the top 100 cryptocurrencies experienced a rebound of 33%, albeit still recovering from the turbulence of 2022. The market has witnessed some institutional and individual investors exiting, leading to decreased liquidity and a subdued indicator of anticipated price fluctuations in Bitcoin.

As Japanese cryptocurrency exchanges strive for more flexible margin trading regulations, they face the challenge of convincing the FSA that such a move aligns with the government’s goals while safeguarding investors’ interests. 

However, the outcome of this initiative will significantly impact the landscape of crypto trading in Japan and potentially draw increased attention from global players.

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Gemini Sets Sights On Singapore: Ambitious APAC Expansion Amidst Regulatory Challenges

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Gemini Exchange, one of the prominent cryptocurrency exchanges in the United States, has announced its ambitious expansion plans in the Asia-Pacific (APAC) region. 

Despite the intensified regulatory environment in the US, Gemini remains undeterred and aims to establish Singapore as its APAC hub, with plans to increase its employee count in the city-state to over 100 within the next year. 

Additionally, the company plans to construct an engineering base in India to bolster its technical capabilities.

Gemini’s leadership team recently embarked on a global odyssey, exploring opportunities in APAC to fulfill the promise of cryptocurrencies. The company envisions APAC as a driving force behind the next wave of growth in the crypto industry. 

By expanding its presence in the region, the exchange aims to tap into the immense potential of the APAC market.

Gemini already made significant strides in APAC with the launch of support for the Singapore dollar in December 2020, enabling seamless access to cryptocurrencies for residents of the city-state.

Moreover, the exchange also supports the Hong Kong dollar and the Australian dollar, providing a comprehensive range of trading options for customers across the region. 

Gemini prioritizes security, ensuring that customer funds are protected by world-class security and storage systems.

India’s Engineering Excellence Fuels Gemini’s Growth

In addition to its expansion plans in APAC, Gemini is actively bolstering its engineering capabilities in India. In April, recognizing India’s tradition of engineering excellence, the company views the country as a hotspot for top-tier technology talent. 

With the imminent opening of its engineering center in Gurgaon, the exchange seeks to harness India’s expertise in advancing its mission to unlock the next era of financial, creative, and personal freedom through cryptocurrency and Web3 innovation.

The exchange’s engineering, design, and operations teams in India will play a pivotal role in developing next-generation web and mobile user experiences, enhancing core platform fundamentals, ensuring compliance, fortifying security, and facilitating seamless payments. 

Additionally, the India location will be instrumental in building new feature sets for Gemini’s NFT and crypto asset marketplaces. The products and features developed in India will cater to retail and institutional customers across 70+ countries.

Its expansion plans in APAC and the establishment of its engineering center in India reflect the company’s commitment to its international vision. 

By investing in global talent and resources, the exchange aims to shape the future of cryptocurrencies while empowering individuals with financial freedom. 

However, the company is actively recruiting software engineers, technical product managers, and various other key roles in Gurgaon to drive its mission forward.

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XRP Takes The Lead In Crypto Investment Products With Impressive Inflows

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In a recent report unveiled by CoinShares, XRP has once again demonstrated its dominance in the world of cryptocurrency-focused investment products, experiencing a significant surge in inflows. The digital asset, valued at a staggering $1.1 million for the week, has achieved one of its most impressive results this year.

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CoinShares’ Digital Asset Fund, Flows Weekly Report, sheds light on the market dynamics and investor sentiment surrounding cryptocurrencies. The latest findings indicate a shift in preferences towards alternative coins (altcoins) following a recent price crash in the crypto market.

The report reveals that digital asset investment products witnessed minor outflows totaling $5.1 million. However, there was a slight reversal of fortunes towards the end of the week when news broke that one of the world’s largest asset managers had submitted an application for a Bitcoin Exchange-Traded Product (ETP) in the United States. 

This development prompted minor inflows, though they were insufficient to offset the earlier outflows. As a result, the market witnessed its ninth consecutive week of outflows, amounting to an astounding $423 million.

Analyzing the regional trends, the United States and Germany emerged as the primary recipients of inflows, recording $3.7 million and $2.4 million, respectively. 

Looking at the overall inflows year-to-date, the United States maintained its lead with a total of $147 million, while Canada lagged behind, experiencing outflows worth $277 million. 

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Interestingly, despite Hong Kong’s regulatory landscape showing signs of improvement, there have been no notable inflows into Exchange-Traded Products this year. At present, the total assets under management (AuM) in this sector remain relatively low at $39 million.

Ethereum Faces Outflows, XRP Takes the Spotlight

The previous week’s crash in altcoin prices stimulated investors to augment their positions, resulting in inflows of $2.4 million. Among the altcoins, XRP, Cardano, and Polygon attracted the most attention, securing inflows of $1 million, $0.6 million, and $0.2 million, respectively. 

On the other hand, Ethereum experienced the largest outflows for the week, amounting to $5 million, while Tron and Avalanche saw outflows of $0.4 million each.

In addition to cryptocurrencies, blockchain equities faced a significant setback, with outflows reaching a notable $12.3 million. The report highlights that these outflows are the largest recorded since the emergence of FTX, a prominent player in the blockchain equities market.

The cryptocurrency landscape continues to evolve rapidly, with investors actively navigating the volatile market. XRP’s resurgence in investment products demonstrates its enduring appeal among traders and investors. 

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Crypto Pressures Mount: HK Banking Regulator Urges Major Lenders To Embrace Exchanges

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Hong Kong’s banking regulator is applying pressure on major lenders such as HSBC and Standard Chartered to embrace cryptocurrency exchanges as clients, despite increasing scrutiny from US regulators, according to a report.

The Hong Kong Monetary Authority (HKMA) reportedly questioned these UK-based banks, as well as the Bank of China, in a recent meeting about their reluctance to accept exchanges as clients. 

The HKMA emphasized that due diligence on potential customers should not pose an undue burden, especially for those seeking opportunities in Hong Kong’s crypto industry.

Challenges Amid Hong Kong’s Ambition To Become A Crypto Hub

While banks in Hong Kong have not imposed a ban on crypto clients, their hesitancy stems from concerns over potential legal repercussions if these platforms are involved in money laundering or illicit activities. 

This pressure from the HKMA highlights the challenges faced by Hong Kong as it endeavors to establish itself as a global center for the crypto industry, despite past incidents of collapses, such as the implosion of FTX.

According to insiders, the HKMA encouraged banks to overcome their apprehensions and not be deterred by conventional banking mindsets. However, resistance from senior executives at traditional banks has been observed.

This delicate situation places banks in a predicament, as they aim to support the development of the crypto industry as dictated by Hong Kong’s policies while simultaneously navigating the concerns raised by the US Securities and Exchange Commission’s recent lawsuits against major exchanges like Binance and Coinbase.

Notably, pro-Beijing lawmaker Johnny Ng, who is also a member of China’s top political advisory body, has invited Coinbase and other crypto exchanges to establish a presence in Hong Kong, even following the SEC’s legal action. 

This demonstrates Hong Kong’s enthusiasm for the sector, despite the potential challenges and risks involved.

HSBC, Standard Chartered, and Bank of China hold significant positions in Hong Kong, serving as issuers of the city’s currency and occupying key roles within the Hong Kong Association of Banks lobby group. 

Standard Chartered stated that it maintains regular dialogue with regulators on various subjects, while HSBC expressed its active engagement in the policies and developments of Hong Kong’s nascent crypto industry.

However, the pressure exerted by the HKMA reflects Hong Kong’s determination to foster a crypto-friendly environment while balancing regulatory concerns. 

The outcome of this ongoing push will have implications for the city’s aspirations to become a leading global center for the crypto industry.

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Binance CEO Debunks False Narratives Surrounding Altcoin Drops, Highlights Market Complexity

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In a recent Twitter discussion, Binance CEO, Changpeng Zhao (CZ) addressed the prevailing false narratives circulating about the recent drops in altcoin prices. Contrary to the rumors, CZ clarified that Binance had not converted its holdings to fiat currency. 

Instead, the exchange’s fiat and stablecoin reserves, which are primarily used for short-term salaries and expenses, had decreased, while their crypto reserves had witnessed an increase in recent months, weeks, and days.

CZ’s tweet raised an important question: Why does the market fluctuate? While many claim to hold the answer, the truth is that no one truly knows. A multitude of factors influences market movements, and attributing them to a single, often incorrect reason is a common fallacy.

The marketplace consists of numerous buyers and sellers, each driven by their unique motivations and circumstances. One prevailing false narrative suggested that $1.3 billion worth of altcoins held on Robinhood could be the cause. 

However, CZ remained cautious, admitting he had no definitive answer and jokingly suggested that the community might be more knowledgeable than he was on the subject. Another narrative revolved around the speculation of US bans or China/Hong Kong unbans, adding fuel to the volatile market sentiment.

Managing Greed And Fear: Binance CZ 

CZ emphasized the importance of managing two key emotions in any market: greed and fear. These emotions often play a significant role in shaping market sentiment and can lead to both opportunities and consequences. 

In light of this, CZ reaffirmed Binance’s commitment to ensuring the platform’s smooth operation and urged users to manage their risks wisely. He concluded by reminding everyone to stay SAFU (Secure Assets Funds for Users), highlighting the platform’s dedication to providing a secure environment for traders.

Responding to CZ’s comments, a prominent media outlet known as “The Wolf Of Few Streets” shared its perspective. They acknowledged the existence of multiple factors influencing market sentiment, emphasizing that investors should not overlook the fundamental background. 

While consequences are inevitable, they also viewed it as an opportunity for those who possess a broader perspective and a long-term vision.

Nevertheless, the conversation shed light on the complexity of the market and the diverse perspectives surrounding its movements. 

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Crypto.com Achieves Major Milestone With Singapore’s Digital Payment Token License

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Crypto.com, a prominent player in the crypto industry, has announced a significant achievement today. The company proudly revealed that it had obtained its Major Payment Institution (MPI) license for Digital Payment Token (DPT) services from the Monetary Authority of Singapore (MAS).

This notable milestone comes after Crypto.com received its in-principle approval from MAS in June 2022. With this newly acquired license, the company can now expand its Digital Payment Token services to customers based in Singapore.

Kris Marszalek, the CEO of the exchange, expressed his delight and praised the Monetary Authority of Singapore for its global recognition as a regulator committed to ensuring responsible innovation within the digital assets sector. 

Marszalek stated:

We are proud to receive the license from a regulator that prioritizes consumer protection, safety, and security. We look forward to continuing to collaborate with MAS and leading at the forefront of digital asset in our home market of Singapore.”

Singapore has long been acknowledged as a thriving blockchain and fintech innovation hub. Chin Tah Ang, General Manager of Crypto.com in Singapore, emphasized the company’s commitment to the local Web3 community, stating:

The Major Payment Institution license underscores our ongoing commitment to build with the Web3 community in Singapore.

Crypto.com’s Regulatory License Momentum Continues

This recent announcement adds to Crypto.com’s growing collection of regulatory licenses, reflecting the company’s dedication to compliance and responsible operation.

In November 2022, the company received approval for a Major Payment Institution license for e-money issuance, account issuance, and cross-border and domestic money transfer services from the Monetary Authority of Singapore. 

Moreover, the exchange gained regulatory approvals in various countries, including Australia, Italy, Greece, Cyprus, the Cayman Islands, and the US. It also submitted a pre-registration undertaking in Canada.

With an impressive array of regulatory licenses and approvals, Crypto.com has positioned itself as a trustworthy and compliant entity within the digital assets industry. 

As the company continues to expand its services globally, these licenses serve as a testament to its commitment to consumer protection, security, and responsible innovation.

However, the exchange’s recent accomplishment in securing the Major Payment Institution license for Digital Payment Token services from the Monetary Authority of Singapore solidifies its position as a leading digital asset player. Further, it strengthens its foothold in its home market of Singapore.

Related Reading | Crypto Regulations In Hong Kong: New Licensing Regime For Virtual Asset Trading Platforms

OKX Wallet Unveils BRC-30 Proposal, Bringing Staking Opportunities to Token Holders

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OKX Wallet, a leading digital asset management platform, has announced the release of the BRC-30 proposal, an advanced version of the popular BRC-20 protocol. 

The new proposal introduces equity operation functionalities such as deposit, minting, and withdrawal, enabling token holders to earn passive income through staking.

The BRC-30 proposal builds upon the foundations of the BRC-20 protocol, which is a fungible token standard designed specifically for the Bitcoin blockchain. 

By incorporating BRC-20 design principles, while introducing staking operations such as depositing, minting, and withdrawing, the BRC-30 protocol paves the way for a seamless staking experience within the Bitcoin network.

With the introduction of BRC-30, users can now stake their BRC-20 tokens or bitcoin and receive BRC-30 tokens in return. These new tokens inherit the functionality of BRC-20 tokens but come with an added description of the staking protocol. 

This innovative feature empowers BRC-20 token holders to put their digital assets to work and earn passive income without the need to sell them, thereby actively participating in the Bitcoin network and potentially enhancing the value of their tokens.

The motivation behind the introduction of BRC-30 and its staking functionalities is to provide BRC-20 token holders with additional opportunities to engage with their digital assets and earn passive income. 

Moreover, the staking mechanism incentivizes users to hold onto their assets, potentially reducing selling pressure on the market and contributing to a more stable token ecosystem.

Transparent Calculations: OKX Wallet Ensures Consistency

By implementing the BRC-30 protocol, OKX Wallet envisions a future where BRC-20 token and Bitcoin holders have alternative means of generating income beyond solely buying and selling tokens on exchanges. 

This staking mechanism introduces a new dimension to the BRC-20 token ecosystem, fostering greater participation and a stronger connection between token holders and the underlying blockchain network.

The BRC-30 proposal also includes specifications for user scenarios, interaction flows, and the project team responsible for its development. 

Project teams can issue their own BRC-30 tokens by creating staking pools and gaining seed users, while individual users can stake BTC or BRC-20 tokens to earn other BRC-30 tokens.

To ensure transparency and consistency, OKX Wallet’s servers perform comprehensive interpretations of the BRC-20 and BRC-30 proposal. 

The platform provides an open-source interface for profit calculation, ensuring that staking rewards are consistently computed using both the backend and open-source tools.

However, with the launch of the BRC-30 proposal, OKX Wallet is taking a significant step forward in revolutionizing the staking experience for token holders, offering them a novel way to earn passive income and actively engage with the Bitcoin network.

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Gate.io Clarifies Its Liquidity Status After Insolvency Rumours

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Leading CEX Gate.io asserted that there are no issues with its operations or withdrawals in response to the widespread reports of illiquidity.

“First, we want to emphasize that Gate.io is an established and well-operated exchange. We remain committed to providing users with secure, efficient, and reliable digital asset trading services.”

In the blog post dated May 31, the crypto exchange stated that it is instead focused on its 10th-anniversary celebration and the launch of Gate Group’s Hong Kong trading platform, Gate.HK.

Gate.HK prioritizes compliance and has submitted an application for a Virtual Asset Service Provider [VASP] license to the Hong Kong Securities and Futures Commission, aligning with the latest regulatory requirements. 

The other day, crypto Twitter was flooded with numerous posts claiming that the exchange was bankrupt as a result of a purported relationship between it and the Web3 cross-chain router Multichain Multichain [MULTI] whose treasury is backed by 30%.

It all began after crypto tracking firm Arkham Intelligence revealed data indicating significant MULTI inflows to Gate.io, which it said was linked to rumors of the protocol’s team “allegedly being arrested in Shanghai.”

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Gate.io Clarifies Its Liquidity Status After Insolvency Rumours 6

Last week, numerous reports emerged that Chinese authorities allegedly took into custody several Multichain executives, including CEO Zhaojun.

Although the arrests were neither confirmed nor denied by officials, Binance responded by temporarily suspending several bridged tokens that relied on the Multichain protocol.

Then, on May 31, a statement from Multichain’s Twitter account claimed that the protocol had encountered numerous problems as a result of “unforeseeable consequences.”

The team said that despite their best efforts to follow protocol, they were “unable to reach” CEO Zhaojun in order to access crucial servers.

Gate.io Saw a $150M Outflow

Soon after, Twitter users posted transaction trails highlighting significant FTM deposits to the tune of over $10 million from unknown members of the Multichain team to Gate.io.

The identity of the account owner who executed the transaction is now yet unclear.

Due to the massive MULTI and Fantom deposits to Gate.io, numerous Twitter users speculated that the exchange was susceptible to Multichain fallout.

Users hurried to withdraw their assets, causing a $150 million net outflow on the centralized exchange as of right now. The Gate.io crew continued to put up a brave front, labeling the commotion as FUD.

72% Dominance: Kaiko’s Ethereum Liquidity Report Unveils Exchange Concentration

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Kaiko, a leading cryptocurrency market data provider, has released its latest research report, shedding light on the liquidity landscape of Ethereum (ETH) and highlighting the dominance of a few key exchanges. 

The report indicates that 72% of ETH liquidity is concentrated on just five exchanges, marking a significant shift since the collapse of FTX last year.

Following the demise of FTX, the crypto market has faced challenges in maintaining adequate liquidity for assets. The shutdown of the Signet and SEN fiat settlement networks in the US severely impacted the operational efficiency of market makers. 

It has been reflected in Ethereum’s 2% market depth, which experienced a decline in March and has struggled to recover to pre-FTX levels. 

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However, the .1% depth, which measures liquidity around the mid-price, has rebounded to surpass pre-FTX levels as market makers regain confidence in offering liquidity within a tight range.

The study highlights the concentration of order book liquidity on a handful of exchanges since FTX collapsed. 

Ethereum: Shift in Liquidity from US-available Exchanges

Binance, Bitfinex, OKX, Coinbase, and Kraken collectively account for 72% of Ethereum’s market depth, while the remaining 41 exchanges represent only 28%. Before FTX’s collapse, the exchange and its US counterpart accounted for nearly 40% of the market depth.

Interestingly, the research also reveals a shift in liquidity away from US-available exchanges over the past year. The share of market depth on US exchanges has decreased to around 40%, down from a high of 54% before the collapse of Terra last May. 

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Global exchanges have benefited from regulatory crackdowns, attracting market makers seeking to avoid uncertainty.

Looking ahead, the report suggests that liquidity consolidation on a limited number of exchanges may continue for all assets, not just Ethereum, as the exchange space grapples with attracting market makers during an ongoing bear market.

In addition to the liquidity analysis, the report covers other notable trends in the crypto market. It discusses the stability of stablecoins amid the US debt ceiling drama, the outperformance of Curve DAO (CRV) and Synthetix Network (SNX) in the DeFi sector, the decline in MakerDAO’s liquidity following a large transfer to Binance, and the potential opportunities for OKX in Hong Kong’s upcoming virtual asset licensing regime.

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The insights provided by Kaiko’s research offer valuable information for investors, traders, and industry participants seeking to navigate the ever-evolving crypto market.

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