Over Half of Leading Korean Conglomerates Are Venturing Into Web3 and Blockchain

HashKey Capital, a Singapore-based crypto fund manager, and FTSE Russell, a subsidiary of the London Stock Exchange Group (LSEG), have collaboratively launched a series of indices designed to track cryptocurrencies. Three indicesRevealed on the FTSE Russell website on Wednesday, these three indices provide traders with the ability to monitor diversified baskets of digital assets aligned with various investment strategies. They cater to nuanced preferences across different crypto segments and market capitalizations. The flagship index in this suite is the FTSE Custom Digital Asset Top 20 Index, tracking the top 20 crypto assets based on market capitalization. This index is positioned to accurately reflect more than 90% of the overall performance of the digital asset market, offering investors insights into the dynamics of the most significant players in the crypto space.Photo by Markus Winkler on UnsplashFocus on infrastructure and application layerBeyond tracking market capitalization leaders, the suite includes indices with a specific focus on the crypto ecosystem's infrastructure layer (FTSE Custom Digital Asset Infrastructure Index) and application functionalities (FTSE Custom Digital Asset Application Index). One of them, the infrastructure index, zeroes in on digital assets forming the infrastructure layer, including smart contract platforms, protocol interoperability and distributed computation and storage. Meanwhile, the FTSE Custom Digital Asset Application Index concentrates on digital assets associated with application functionalities, such as those linked to staking instruments and decentralized finance. From Wednesday, these indices have been made accessible on the FTSE Russell website, with plans for future availability through major data providers like Bloomberg, Factset, LSEG Data & Analytics, Morningstar and S&P Capital IQ. U.S. ETF approvalThe introduction of these indices follows the recent milestone approval by the Securities and Exchange Commission (SEC) of spot bitcoin ETFs in the United States. It’s likely that the milestone ETF approval in the largest capital market is having a knock-on effect, proving to be a catalyst for other such offerings implicating the intertwining of crypto and traditional finance on an international basis. These products offer investors a more accessible entry point into the crypto market's largest asset, currently boasting a market capitalization of approximately $780 billion. Industry watchers anticipate the potential approval of a U.S. spot ether ETF later in 2024, with the SEC expected to make rulings on proposed funds by May. Deng Chao, managing director of HashKey Capital, noted a significant surge in demand from investors seeking to diversify their portfolios beyond established cryptocurrencies. This move aligns with broader market trends, as investors increasingly explore opportunities in diverse crypto assets. Notably, these index launches follow FTSE Russell's partnership with Grayscale Investments in October, aimed at enhancing crypto diversification. The earlier collaboration focused on various crypto sectors, including currencies, smart contract platforms, financials, consumer and culture and utilities and services. This development comes on the heels of HashKey Group, the Hong Kong-headquartered parent company of HashKey Capital, securing $100 million in a Series A funding round at a $1.2 billion valuation. OKX Ventures participated in the funding round, signaling strong support for HashKey Group's plans to accelerate product diversification in its Hong Kong business and drive compliant and innovative development globally.   

K-Pop NFT Platform MetaBeat’s Token Listed on UniSwap v3MetaBeat, a non-fungible token (NFT) platform based in Seoul and catering to K-pop fans, announced that its BEAT token is listed on Uniswap v3, one of the most popular decentralized cryptocurrency exchanges.©Pexels/Josh SorensonBEAT/USDC on UniswapBy introducing the BEAT/USDC liquidity pool on Uniswap v3, MetaBeat aims to increase the popularity of its BEAT tokens.MetaBeat ecosystemThe MetaBeat ecosystem enables music fans to contribute to their community with social media activities. Contributions from fans, along with their artists’ performances, are taken into account when determining the FANomance Index, which is then utilized to appropriately reward fans.Fans can support their favorite artists in three distinct ways: Drops, Mingle, and Shout Out.DropsWithin the MetaBeat platform, Drops indicate NFT sales. MetaBeat creates and sells community NFTs backed by music intellectual property (IP), allowing fans to own or stake them for value sharing. The IP value depends on music consumption, such as album sales and streams.MingleMetaBeat users can stake tokens on an open Mingle, backed by music IP, and obtain rewards based on the Mingle’s FANomance Index.Shout OutThe Shout Out program incentivizes fans who upload their artist-related posts on social media and verify their activities on MetaBeat.KuCoinMeanwhile, it is also worth noting that the BEAT token is tradable on a centralized exchange. In November last year, the global centralized exchange KuCoin began supporting the trading pair of BEAT/USDT.

Recent reports from local media outlets indicate that Indonesian authorities have conducted raids on crypto mining sites, accusing them of illicitly siphoning electricity from the utility poles of the state-owned electricity company. The government’s intervention comes as part of a broader effort to address energy theft and regulate the cryptocurrency mining industry in the country.Photo by Fré Sonneveld on UnsplashTen mining sites raidedOfficials from the state-owned electricity company PLN highlighted the importance of coordinated efforts in exposing the unauthorized mining operations that were tapping into the national grid without approval. According to the reports, the ten illegal bitcoin mining sites which were raided incurred a financial loss of approximately 1.4 billion Indonesian rupees, equivalent to $100,000 for the state. The impact of energy theft extended beyond financial concerns, raising environmental and community-related concerns. Local students, alarmed by the potential consequences, urged PLN and regional police to investigate the mining operations. Subsequent action revealed that the theft was indeed taking place, prompting PLN officers from the Bukit Barisan Customer Service Implementation Unit (UP3) to conduct a raid. However, the officers faced threats and resistance, leading to a close coordination between PLN and the North Sumatra Regional Police. The raid uncovered a total of 1,300 bitcoin mining machines engaged in illegal operations, with each machine consuming a substantial 1,800 watts of electricity. Inspector General Agung Effendi, the North Sumatra Police Chief, disclosed that the illicit activities had been ongoing for an estimated six months, resulting in the arrest of 26 individuals across the ten locations.PLN reassured stakeholders of continued collaboration with the police to prevent further electricity theft and safeguard the national grid from such unauthorized activities. Worldwide concernThe incident in Indonesia reflects a global concern over the energy consumption of cryptocurrency mining operations generally, but also with regard to illegal activity. In recent years, the environmental impact of these operations has become a focal point in public policy debates, with climate activists emphasizing the harm caused. Government officials, on the other hand, express concerns about the potential disruption to the total distribution network if not properly regulated. In September, neighboring Malaysia identified illegal crypto mining activities in the state of Sarawak as the reason for recurrent power disruption. Meanwhile, in Singapore in August, authorities uncovered a crypto mining scam that cheated investors out of $1.3 million dollars. Indonesia joins other countries that have conducted raids on crypto mining operations accused of running large-scale, unregistered facilities. Malaysia has witnessed multiple arrests related to digital asset mines, while in Venezuela, authorities seized bitcoin machines and weapons from a recaptured prison controlled by a criminal gang. Legitimate mining potentialNotably, this marks the first such incident in Indonesia, and energy theft charges in the country are punishable by up to five years in prison or 200% of the stolen energy’s value. Despite these problems, Indonesia also understands the opportunity that exists where legal bitcoin mining is carried out. In May, Ridwan Kamil, Governor of the province of West Java, participated in a fireside chat titled “The Indonesia Bitcoin Mining Campaign.” During that event, Governor Kamil recognized the potential that bitcoin mining offers Indonesia. He stated: “[Indonesia has] the second most geothermal potential in the world — more than 800 rivers with hydropower. As bitcoin allows the transformation of energy into money, bitcoin could be transformative for Indonesia.” The global trend of addressing energy consumption in crypto mining is evident in Kazakhstan, where regulators seek to limit miners’ access to the national grid unless they operate solar-powered mines. Indonesia, with its pro-crypto population, is also moving towards increased regulation, mandating all crypto exchanges to register with the Commodity Futures Exchange (CFX) to continue operations beyond August 2024.