Incheon City to leverage blockchain for construction transparency

Shapella Upgrade to Have limited Impact on ETH’s Selling PressureThe Shapella upgrade on the Ethereum network scheduled to take place on Wednesday will only have a limited impact on the selling pressure on ETH, according to a report by the research center at Korean cryptocurrency exchange Korbit.©Pexels/JievaniShapella upgradeOne of the key features of the Shapella upgrade is to allow withdrawal of staked ETH. This upgrade follows September’s Merge upgrade that switched the Ethereum network’s consensus algorithm from Proof of Work to Proof of Stake, significantly reducing electricity consumption.Impact on selling pressureTo predict the impact of the Shapella upgrade on the selling pressure on ETH, the analysts at Korbit Research calculated the amount of time it takes for all the ETH staked as of March 22 to be withdrawn. They believe this calculation is relevant because withdrawals of staked ETH could trigger bulk sales, potentially imposing a greater selling pressure on ETH.According to the findings, the daily sell volume for the first three days is expected to be 300,700 ETH, 0.254% of the circulating supply. This volume will gradually decrease to 43,000 ETH for the next six months and to 29,000 ETH for the following six months, each corresponding to 0.035% and 0.024% of the circulating supply, respectively.All in all, bulk selling of ETH is not likely, considering it will take about a year and five months for all the staked ETH to be withdrawn and that the amount of withdrawable ETH will stay relatively low for each period. Furthermore, since this analysis assumes an extreme case, the market will be able to effectively handle the volume over the six month to 18 month period.4 other reasonsIn addition, Korbit Research outlined four other aspects that limit the selling pressure on ETH.Firstly, there is some concern that the selling volume of ETH may increase due to unstaking resulting from the cessation of staking services at American crypto exchange Kraken. However, a decrease in the number of validators on the Ethereum network will raise the base reward. This may prompt those who unstaked ETH to stake them on other platforms, rather than selling them.Second, ETH locked up at liquidity staking protocols such as Lido Finance and Rocket Pool provide liquidity for representations of staked ETH. These platforms allow users to stake fewer than 32 ETH for rewards. According to a February Binance Research report, 57.7% of ETH stakers enjoy liquidity and rewards. Therefore, there may be a limited impetus to divest of staked ETH.Third, since only 41.1% of ETH stakers are seeing profits as of the time of writing the report, the remaining stakers would have to risk losses when withdrawing ETH. This suggests that those not yet seeing profits are more likely to keep ETH staked. Furthermore, Dune Analytics data shows that most of the ETH stakers with gains staked ETH when its price was relatively low, which indicates that they participated in staking in early days. Shivam Sharma, the author of the aforementioned Binance report, states that these ETH stakers are likely “some of the strongest Ethereum believers.”Lastly, despite the Shapella upgrade, ETH withdrawals at different staking pools may not be initiated immediately. This could limit the circulation of withdrawable ETH, which in turn would hinder the selling pressure on ETH.Macroeconomic factorsThe Korbit researchers concluded their paper with a note that the selling pressure on ETH will be more influenced by macroeconomic factors than technical factors. They added that a possible downturn in the overall economy and corrections in risky asset markets might lead investors to sell ETH.

GS Group Supports Blockchain Startups in Korean Retail IndustryThe GS Challenge, an innovative startup accelerator established through a partnership between South Korean conglomerate GS Group and early-stage venture capital fund Bluepoint Partners, has launched a program dedicated to providing support to innovative startups, including blockchain ventures, in the retail industry.Photo by Alexandru Tugui on UnsplashBlockchain & other retail solutionsThe application window for this program opened on June 16 and will remain accessible until July 13. To be eligible, applicants have to be startups that possess retail technology and have a team consisting of two or more members. Retail technology encompasses a wide range of solutions aimed at improving businesses’ understanding of their customers, streamlining inventory management, and optimizing promotional events. These solutions leverage cutting-edge technologies such as artificial intelligence, big data, cloud computing, blockchain, and the Internet of Things (IoT).Three-month programThe screening process for applicants will involve thorough document reviews and meetings conducted by both entities. Successful applicants will have the opportunity to participate in a comprehensive three-month acceleration program scheduled from August to October. This program will offer valuable guidance on various aspects of running a startup, including consultations on legal, human resources, and financial matters.Extensive retail networkAdditionally, the selected startups will gain access to the GS Retail infrastructure to test their technologies and products. GS Retail boasts an extensive network consisting of 16,000 convenience stores, 400 supermarkets, as well as infomercial and e-commerce channels. This opportunity will enable the startups to test their technology and products in a real-world retail environment, facilitating practical application and market integration.Expressing the insights gained from a decade of startup investments, Lee Sung-hwa, the VP of Corporate Development at GS Retail, emphasized the value derived from collaborating with startups. Recognizing the mutual benefits, Lee highlighted that this collaboration would prove advantageous for both GS Retail and the participating startups. GS Retail can foster innovation in the industry, while the startups can accelerate their growth by leveraging the extensive GS Retail network.

Hong Kong’s Bricks-and-Mortar Crypto Shops Attract Chinese VisitorsHong Kong has become a thriving destination for cryptocurrency enthusiasts, particularly mainland Chinese visitors, due to the ambiguity surrounding the regulatory status of these crypto shops.Despite the illegality of cryptocurrency transactions on the mainland and the ban on overseas exchanges serving onshore clients, Hong Kong allows legal crypto trading, and according to a recent report published by the Financial Times, the autonomous Chinese territory is being accessed by residents of the Chinese mainland for the purpose of trading crypto.Photo by Chapman Chow on UnsplashSurging demandBricks-and-mortar crypto shops, lightly regulated and scattered across the city’s popular tourism and shopping districts, have flourished thanks to the surging demand from mainland Chinese visitors. These stores offer customers the convenience of purchasing digital assets with cash, often without the need to disclose the source of funds or personal information.In contrast to the strict licensing requirements imposed on online exchanges in Hong Kong’s push to become a virtual assets trading hub, these over-the-counter (OTC) crypto stores provide customers with the opportunity to buy large volumes of cryptocurrencies with minimal or no verification checks.Before the border between China and Hong Kong reopened fully in February, mainland Chinese customers accounted for less than 5% of customers at Crypto HK, an OTC crypto outfit with two branches in the city. However, this figure has now increased significantly, making up around half of their customer base.Similarly, One Satoshi, a crypto store with nine branches in Hong Kong, reported trading volumes between January and May 2023 that were 20–25% higher than the same period the previous year. They anticipate a 35–40% increase in trading for the entire year.While some store owners, like Roger Li of One Satoshi, currently decline mainland Chinese customers due to Beijing’s crypto ban, they remain optimistic that restrictions will ease. This belief is prevalent among the crypto community in Hong Kong following the city’s announcement to become a virtual assets hub in October.Regulatory anomalyHong Kong introduced a new regulatory framework for cryptocurrency exchanges in June, requiring all online platforms operating in the city to apply for a license. However, most OTC stores still operate outside the purview of Hong Kong’s Securities and Futures Commission (SFC), presenting an area of further consideration for the government.OTC stores primarily serve as a simple way for users to convert money to and from unlicensed online exchanges, according to Carlton Lai, head of blockchain research at Daiwa Capital Markets. Hong Kong’s lenient regulations and ease of starting such businesses, as long as there is sufficient capital, contribute to the higher number of OTC stores compared to other locations.While some shops welcome increased regulation in the sector, others do not require customers to provide identification, promoting quick and anonymous transactions. However, this falls short of the investor protection measures mandated for online platforms seeking licenses to trade cryptocurrencies to retail clients.The lack of scrutiny faced by Hong Kong’s OTC shops, coupled with their proximity to mainland China — a market that ranked fourth globally for crypto trading in 2022 — makes them appealing to Chinese citizens still interested in the asset class.