Animoca Brands’ Japanese market expansion via strategic partnership

Research Finds Over 90% of Korean Cryptos Prone to Pump-and-Dump SchemesThe Korea Institute of Finance (KIF) has released a report revealing that 91.3% of South Korean-issued cryptocurrencies, known as “kimchi coins,” are prone to pump-and-dump (P&D) schemes. These schemes involve intentionally spreading false information on social media platforms to manipulate token prices. This is done with the intention of selling the tokens at artificially inflated prices.Photo by Maxim Hopman on UnsplashP&D prevalenceThese manipulative practices were frequently observed during the rapid growth of the cryptocurrency market from 2020 to 2022. Previous research papers indicate that P&D schemes commonly occur on multiple crypto exchanges and typically unfold within a time frame of 10 minutes. It has been observed that cryptocurrencies with lower liquidity and smaller market capitalization are particularly vulnerable to becoming prime targets for these schemes.Korean market and global marketThe Korean cryptocurrency market stands out with its significant number of cryptocurrencies listed on a single exchange, including kimchi coins. This distinction becomes evident when comparing it to the global market. In the Korean market, the top 10 global cryptocurrencies, ranked by their market capitalization, account for 59% of the total market share. Meanwhile, in the global market, they represent 84.9%. This contrast indicates that the Korean market has a larger proportion of alternative coins, also known as altcoins, which are more susceptible to pump-and-dump schemes and other manipulative activities.According to a survey conducted by the Financial Services Commission in the second half of 2022, there were a total of 625 listed coins (excluding duplicate listings), with 389 (62.24%) of them being listed on a single exchange. Among these single-exchange listed cryptos, 223 were kimchi coins, which is equivalent to 57%.OHLCV data analysisIn this KIF paper, research analyst Baik Yeon-ju delved into abnormal price patterns within the Korean cryptocurrency market. She analyzed the hourly Open-High-Low-Close-Volume (OHLCV) data of kimchi coins in October 2021. The study revealed that out of a total of 16,560 hourly price and volume observations, approximately 4.7% exhibited characteristics consistent with P&D schemes. Baik noted that 91.3% (21 of the 23) observed kimchi coins witnessed such movements.Legislative effortsMeanwhile, it is encouraging that the South Korean National Assembly passed the Virtual Asset User Protection Bill during its plenary session on June 30. This legislation, set to go effective in July next year, aims to provide protection for customers’ assets in the virtual asset space. The act not only establishes regulations to combat unfair trading practices but also enforces penalties for non-compliance.Call for further measuresHowever, Baik suggested that policies should be further strengthened to enhance investor protection within the crypto market. In order to achieve this, she proposed the implementation of a monitoring system for virtual asset service operators (VASPs) and the allocation of inspection and investigation personnel, as well as technical resources. It is also necessary to address potential conflicts that may arise with the Act on Real Name Financial Transactions and Confidentiality, particularly if the data required from VASPs falls under the classification of financial transaction information and personal information.Furthermore, considering the lack of transparency surrounding many altcoins regarding their projects and exchange listings, Baik suggests that the upcoming second virtual asset bill should tackle this issue by regulating the issuance and disclosure of these cryptocurrencies. Additionally, she highlighted the importance of conducting research based on empirical data to detect abnormal transactions. This approach enables the recognition of existing issues and the acquisition of concrete evidence, which serves as a credible basis for policymakers to enact relevant legislation.

Korean Blockchain Game Publisher Joins UNGC to Bolster ESG ManagementWemade, a Korean blockchain game publisher, joined the United Nations Global Compact (UNGC) to bolster its environmental, social, and governance (ESG) management. The company announced its membership through a press release issued on Wednesday.Photo by Noah Buscher on UnsplashUNGC membershipSince its establishment in 2000, the UNGC has evolved into the largest corporate sustainability initiative worldwide. With a membership base of over 20,000 companies spanning across 162 countries, it serves as a platform for organizations to align their operations with ten principles encompassing human rights, labor, environment, and anti-corruption.Annual reportsUnder the guidelines of the UNGC, Wemade will fulfill its commitment by submitting an annual report called the Communication on Progress (COP). The company’s objective is not only to meet sustainable development goals but also to enhance its ESG management. Along with these endeavors, the company will strive to improve its corporate citizenship.ESG managementIn expressing his thoughts on the matter, Wemade CEO Chang Hyun-guk emphasized that the company’s inclusion in the UNGC would serve as a catalyst for driving sustainable growth through ESG management. He underscored its commitment to fulfilling corporate social responsibility and meeting global standards by practicing ESG management, given its position as a leading entity in the blockchain market.Wemade’s three main objectivesMeanwhile, Wemade is practicing ESG management centered on three main objectives: responsible environmental management, inclusive growth for future generations, and transparent governance.

SynFutures Completes Series B Funding Round and V3 LaunchSynFutures, the Singapore-based project behind the SynFutures Protocol and decentralized derivatives exchange (DEX) specializing in crypto perpetual futures, has successfully completed its Series B funding round of $22 million.In a big week for the DEX project, SynFutures also launched V3 of the protocol on public testnet, incorporating its updated automated market maker (AMM) model, Oyster AMM.Photo by micheile henderson on UnsplashPotential token launchThe Series B funding round was spearheaded by Pantera Capital, with participation from Singapore’s HashKey Capital, SIG DT Investments (a unit of the Susquehanna International Group), and other investors.Co-founder and CEO of SynFutures, Rachel Lin, stated that while the company is excited about its recent funding success, it is also open to the idea of launching a native token in the future. However, any such decision would be contingent on market conditions and regulatory considerations.Enabling decentralized crypto derivatives tradingThis Series B funding, which was initiated in 2022, marks a significant milestone for SynFutures, coming to a close nearly two and a half years after its Series A round that raised $14 million in June 2021. In total, the company has now secured approximately $38 million in funding to date. In an interview with The Block, Lin declined to indicate the company valuation associated with the recent funding round.SynFutures, established in 2021, serves as a decentralized exchange catering to the trading of crypto perpetual futures, a derivative product that allows traders to speculate on the future price of cryptocurrencies with leverage and without fixed expiration dates. This approach enables traders to rapidly profit or incur losses based on market price movements.While SynFutures operates on various blockchain networks, it currently ranks as the second-largest derivatives protocol on Polygon, with a total value locked (TVL) of over $6 million, according to data from DeFi Llama. The platform has facilitated over $22 billion in cumulative trading volume since its inception.Notably, SynFutures has introduced its latest platform public testnet version, V3, on the Ethereum testnet. The company aims to extend its support for multiple blockchains, including Polygon and zkSync Era, an Ethereum Layer 2 network, when the mainnet version goes live, scheduled for late this year to early next year. Previous iterations of the platform, such as SynFutures V2 and SynFutures V1, have been deployed on Ethereum, Polygon, Arbitrum, and BNB Chain.V3 FeaturesOne of the standout features of SynFutures’ V3 platform is its proprietary AMM model called Oyster. Lin clarified that Oyster AMM combines concentrated liquidity AMM (offering up to 26,666x boost) with the traditional order book model (providing unlimited liquidity boost).With Oyster AMM, SynFutures aims to compete directly with centralized exchanges. The project’s Chief Marketing Officer (CMO) Mark Lee maintains that the offering provides advantages over other decentralized platforms also. “While several projects, including dYdX, opt for a hybrid approach — integrating off-chain orders with on-chain settlements — the full on-chain methodology stands out for its inherent transparency and trustworthiness,” Lee told Blockworks.SynFutures currently maintains a team of approximately 20 individuals. With the latest funding infusion, the company plans to expand its workforce, particularly in engineering and business development roles, to further its mission of advancing decentralized derivatives trading.