Rotonda and Hancom Frontis Join Forces for Web3 Ecosystem Growth

Singapore-headquartered Bitcoin mining company Bitdeer has outlined a roadmap of chip development which will culminate in the introduction of its most energy efficient mining chip to date, the “SEAL04” chip. According to a press release published by the company on June 6, the company outlined that it wanted to be transparent in demonstrating its plans over the short to medium term in terms of research and development and technological advancement.Photo by Michael Förtsch on UnsplashIterative progressionThe starting point for its roadmap is the SEAL01 chip, which the company introduced in Q1 2024. That mining chip was engineered using a four-nanometer process technology. It was developed in collaboration with a semiconductor fabricator albeit that the company has not disclosed the identity of that fabricator. That chip weighed in at 18.1 Joules/Terahash (J/TH). The SEAL01 represents the company’s first release relative to its SEALMINER technology.  Bitdeer feels that providing guidelines for technology releases will better inform market participants, and that’s important given that uncertainty creates a major difficulty for those operating in the Bitcoin mining space.  With that, Bitdeer is projecting a Q3 2024 release for its SEAL02 miner, which will clock up between 15 and 16.5J/TH. SEAL03 is scheduled for Q4 2024, with an efficiency boost taking it to between 11 and 12J/TH. Finally, the SEAL04 is scheduled for release in Q2 2025. That chip is expected to have an energy efficiency range as low as 5.5-6J/TH. The two most critical factors for Bitcoin miners to stay competitive include the cost of energy and the level of energy efficiency achieved by the mining equipment that is being used. It’s believed that the roadmap will help in managing miners’ expectations relative to technological advancement.  Gearing up for a post-halving mining environmentTo develop the SEALMINER equipment series, Bitdeer outlined last March that it had “assembled an international team of professional engineers specializing in chip design, firmware, and hardware engineering.” At that time, the company suggested that the new range of mining equipment would allow it to assist the Bitcoin mining community “in seizing opportunities following the 2024 halving event.” Alongside its chip development roadmap, the company came to the industry’s attention earlier this week with stablecoin issuer Tether acquiring a 25% stake in the Singaporean mining equipment developer, according to a filing with the U.S. Securities and Exchange Commission (SEC). This acquisition makes Tether the second-largest shareholder in Bitdeer, behind Victory Courage Ltd., which is registered to Bitdeer CEO Jihan Wu. Wu, who co-founded Bitdeer and served as CEO of ASIC manufacturer Bitmain previously, was appointed as CEO of Bitdeer in January. The appointment was made so that Wu could oversee what was expected to be a period of rapid growth at the company. In the June 6 SEC filing, Tether Holdings Limited disclosed control over 23,587,360 BTDR shares. This significant increase in holdings stems from a private placement deal closed with Bitdeer last week, enabling the Bitcoin miner to secure $100 million in financing. The deal also includes a warrant allowing Tether to purchase up to 5,000,000 additional shares at $10.00 each over the course of the next year. Bitdeer plans to use the raised funds to expand its data centers, develop ASIC-based mining rigs and support other general corporate purposes.  

Tether Critics Point to Previous Chinese Securities BackingUSDT stablecoin issuer Tether (USDT) has long faced persistent scrutiny and criticism due to the lack of transparency surrounding the assets backing their digital currencies. The latest allegations come in the form of a report by Bloomberg on Friday suggesting that the world’s largest stablecoin was once backed by securities issued by Chinese companies.Photo by Manuel Joseph on PexelsNYAG releases documentsThese findings were based on documents made public by the New York Attorney General (NY AG). The documents disclosed that Tether had listed securities issued by China’s state-owned Industrial and Commercial Bank of China, China Construction Bank, and Agricultural Bank of China as part of its reserves backing the USDT stablecoin.Rumors about USDT’s exposure to Chinese securities have circulated for a number of years. In 2021, a Bloomberg research report revealed that Tether’s reserves reportedly included billions of dollars in short-term loans to China-based companies, as well as a significant loan to the collapsed crypto lender Celsius Network.However, in February 2021, Tether reached a settlement with the NY AG’s office over accusations of providing misleading information about its reserves and losses. To address these concerns, Tether handed over documents such as letters, bank accounts, reserve holdings, and wallet addresses through the law firm Steptoe.Attestation reportTether’s latest attestation report for Q1 2023, released on May 10, offered further details about its reserves. According to the report, Tether’s reserves were valued at $81.8 billion at the end of the quarter, a significant increase from the earlier period of $14.8 billion. These reserves consisted of $53 billion in US Treasuries, $1.5 billion in Bitcoin, and $5.3 billion in loans described as “over-collateralized.”The disclosure of Tether’s previous backing by Chinese securities adds another layer of complexity to the stablecoin landscape, raising questions about the risk exposure and potential impact on the stability of these digital assets. Using Chinese commercial paper to back a US dollar stablecoin is a risky endeavor.It raises the same issues as we’ve seen with the plethora of crypto lenders that went bankrupt in 2022. In those cases, they were using customer money to speculate and turn a profit. That’s fine when it works but when it goes wrong, it is customers who suffer. In its defense, Tether has stated that it only held A1 rated banking sector Chinese commercial paper in 2022 in state-owned Chinese companies like Industrial & Commercial Bank of China Ltd., China Construction Bank Corp., and Agricultural Bank of China Ltd. It reduced this exposure to zero later that year.With the cryptocurrency community and regulators seeking greater transparency and accountability, the industry is likely to face increased scrutiny and calls for enhanced regulations to ensure the integrity of stablecoin operations moving forward.As regulators continue to assess and navigate the evolving crypto market, it remains to be seen how the industry will address these concerns and establish clearer guidelines for stablecoin issuers to ensure the trust and confidence of market participants.

Busan Blockchain Special Zone Gears Up with Expert-Led Operations CommitteeGovernment officials and various executives from financial enterprises have been appointed as members of the operations committee of the Busan Blockchain Regulation Free Special Zone project, according to local news outlet Etoday on Tuesday. This project is geared towards growing the city as a blockchain hub and nurturing blockchain-related businesses in the special zone that are exempt from regulatory oversight. The operations committee will be responsible for overseeing the designated area, fostering new businesses and facilitating the development of Busan’s blockchain industry.Photo by Maicon Fonseca Zanco on PixabayDiverse lineup of expertsA total of 25 members have been appointed to the committee, including two ex-officio members — Lee Sung-kwon, Deputy Mayor of Busan for Economic Affairs, and Son Sung-eun, Policy Advisor for Financial Startups in Busan. Other members include Kim Sang-min, the leader of Busan’s initiative to establish its own digital asset exchange; Lee Keun-ju, President of the Korea Fintech Industry Association; and Jin Hyeong-gu, Vice President of KakaoPay, along with other relevant personnel and academic experts. Notably, the only representative affiliated with a cryptocurrency exchange is Seo Byung-yoon, Director of Bithumb’s Economic Research Institute.The participation of Jin Hyeong-gu, Vice President of KakaoPay, is also noteworthy given the fact that KakaoPay is under the internet juggernaut Kakao Group along with GroundX and Klaytn Foundation — two entities that served as the main driving force of blockchain projects at Kakao. However, KakaoPay clarified that its involvement in the operations committee is unrelated to any plans for blockchain and virtual asset-related businesses, instead attributing it to Jin’s experience and expertise in anti-money laundering (AML) procedures. Prior to joining KakaoPay, he had been an AML expert at prominent financial institutions like the Financial Services Commission (FSC) and Kookmin Bank.In addition, Kiwoom Securities and Hanwha Asset Management are both members of the Busan Blockchain Industry Association. Kiwoom Securities explained that it was asked to join the committee to serve as a representative of the association.Key milestones and plansThe committee’s first meeting is scheduled for Nov. 9, the first day of this year’s Blockchain Week in Busan (BWB) event, during which it will discuss matters such as the appointment of a chairman and detailed plans for setting the special zone in motion.The promotion committee of the city’s plan for a digital asset exchange, which has been active until now, is also being dissolved as the term for the members serving in the committee has ended. Subsequently, the new operations committee will become a priority.The committee’s detailed blueprint and action plan will be unveiled during BWB. Touting the theme “Target 2026 Blockchain Busan,” the event is set to host local and overseas experts in the field of blockchain and Web3 to jointly discuss the prospects and potential of Busan to become an urban blockchain hub by 2026.