Crypto Titans Clash on Elon Musk’s X

CME Group Expands Crypto Reference Rates to Asian MarketsUS derivatives marketplace CME Group is making strides in its efforts to cater to the Asian cryptocurrency market. In collaboration with crypto indices provider CF Benchmarks, the company is set to launch new reference rates for Bitcoin (BTC) and Ether (ETH) aimed specifically at the Asia Pacific (APAC) region.Photo by Pierre Borthiry — Peiobty on UnsplashGoing live next monthThat’s according to a press release published by the company on Wednesday. These new rates, the CME CF Bitcoin Reference Rate APAC and CME CF Ether-Dollar Reference Rate APAC, are scheduled to become available on September 11, according to a joint announcement.This move comes in response to the growing demand from Asian investors and institutions for accurate pricing data during their local trading hours. Currently, a substantial portion of CME Group’s crypto volume, about 37%, occurs outside of US trading hours, with approximately 11% of trades originating from the APAC region. The new reference rates will be published daily at 4 p.m. Hong Kong time, allowing APAC-based participants to align their crypto price risk management more closely with their portfolio strategies.Building upon past effortsCME Group’s efforts to provide accurate and timely reference rates have been ongoing. The company initially introduced its Bitcoin Reference Rate (BRR) in 2016, followed by the Ether Reference Rate in 2018. The BRR calculates the US dollar price of one Bitcoin as of 4 p.m. London time. It leverages the trade flow data from major Bitcoin spot exchanges within a one-hour window to provide an average of volume-weighted medians across 12 five-minute intervals during that period.Notably, the newly announced Asia-focused reference rates will provide a variant to the existing rates tailored for London and New York. Giovanni Vicioso, CME Group’s Global Head of Cryptocurrency Products, emphasized that these APAC reference rates will facilitate more precise risk management for institutional clients utilizing Bitcoin and Ether futures products in their active portfolios or structured products like ETFs.Focusing on AsiaCME Group’s expansion into the APAC region aligns with a broader trend of institutional interest in cryptocurrencies in Asia. The region has seen regulatory developments aimed at providing clarity to crypto businesses over the course of the past twelve months while a lack of regulatory clarity currently prevails in the United States. This move also coincides with the company’s push to further engage with the global crypto derivatives market, which accounts for around 75% of the overall crypto trading volume.CME’s decision to launch Asia-focused reference rates is a strategic move to tap into the growing interest in cryptocurrencies from the Asia Pacific region. By offering accurate pricing information during APAC trading hours, the company aims to provide institutions and investors with better tools to manage their cryptocurrency price risks effectively. From the perspective of crypto market participants more broadly, the move is encouraging given that it comes from the world leader in derivatives markets.

ClearVue Partners-Backed Crypto Startup Fund Closed at $50MThe CVP NoLimit Fund I, a crypto-centric fund established by China’s ClearVue Partners, a private equity specialist, has been closed out, reaching a funding level of $50 million.Photo by micheile henderson on UnsplashFunding target achievedThe closing of the fund was announced recently by No Limit Holdings, an investment partnership specializing in global crypto assets based in Malta. ClearVue had entered into a joint venture with No Limit Holdings in order to establish the fund. No Limit Holdings was founded by former Binance Chief Strategy Officer Gin Chao. Partnering with Chao in that venture is another former Binance executive, Anatoly Kondiyakov, who served as Binance’s Head of APAC Institutional Sales in Singapore for four years.News of the fund first emerged in October 2022, when the fund promoters started to distribute a pitch deck. It’s understood that the fund was targeting investment into layer one blockchains prior to their native tokens going live.Chao made the following statement relative to the closing of the fund:“We are grateful for the confidence and trust that our partners have placed in us for this first fund, particularly given the breadth of industries our LP base represents and the challenging macroeconomic conditions during this period. At the same time, this has created an ideal window to deploy capital into the exciting opportunities that the current market presents.”Web3 “where the Internet was in the late 90s”ClearVue Partners Founder, Harry Hui, said that the firm was “excited to team up with Gin and the NLH team. They have deep sector expertise and an incredible track record of success.” Hui added that “Web3.0 is where the Internet was in the late 90s and as blockchain adoption increases, we believe there will be significant value creation for both for our investors as well as for our consumer and technology portfolio companies.”The CVP NoLimit Fund I has already invested in more than twenty crypto projects located globally. Two of them have been listed on multiple digital asset exchanges. Meanwhile, the fund’s administrators have suggested that it has established a robust pipeline of investible projects, and that it has the expectation to invest in an additional twenty projects over the course of the next twelve months.Seed-stage focusThe fund has been focusing on early-stage projects and strategic funding rounds, with individual investments of between $250,000 and $3 million. Some of the projects it has backed thus far include Binance.US, crypto and blockchain infrastructure firm Mysten Labs, Singapore-based dApp developer Hogwarts Labs, Connext Labs which claims to be the HTTP of Web3, and decentralized digital asset money market, IQ Labs.Venture capital investment into the crypto and Web3 space broke all records during the last crypto bull market. Naturally, it has suffered a huge decline in its wake. However, the closing out of this $50 million fund demonstrates that ultimately new money will return to the sector.This is further exemplified by a recent announcement by Kraken Ventures, the venture investment wing of the well-known crypto exchange business, setting out that it is raising a second $100 million fund, earmarked for investment within the sector.

China’s GAPP proposes ban on gaming crypto token conversionChina’s gaming industry hit a significant speed bump on Friday as the General Administration of Press and Publication (GAPP) unveiled a draft proposing substantial changes to the regulation of in-game tokens, signaling a strategic shift in the country’s stance on digital currencies in gaming.Photo by blurrystock on UnsplashImplementing more stringent controlsThe proposed regulations by GAPP bring about a ban on the conversion of game tokens into physical goods or legal tender. These guidelines, spanning 64 articles, impose stringent requirements on gaming companies. These include mandatory licensing in China, a two-year data retention policy, adherence to national and socialist values in content and the eradication of anonymous user registrations.One significant aspect of the guidelines is Article 23, which specifically addresses the use of game tokens. It proposes restrictions on exchanging them for physical goods, services or legal tender.The regulatory landscape becomes more complex due to the ambiguity surrounding cryptocurrencies, which are not recognized as legal tender in China. Although a warning was issued about the risks inherent in non-fungible tokens (NFTs), they remain legal in China. NFTs feature prominently within blockchain-based gaming.Game providers are also confronted with new limitations on inducements, such as bonuses for registration or daily logins, and are mandated to implement measures against irrational consumer spending.Gaming sector falloutIn the wake of these developments, several Chinese tech giants experienced a significant market downturn in Hong Kong. Tencent, a global gaming powerhouse and one of China’s most valuable companies, saw a 12.4% drop on Friday, marking its worst day since October 2008. This decline erased a massive 367 billion Hong Kong dollars ($47 billion) from Tencent’s market value.NetEase, another gaming giant, witnessed a 25% dive in Hong Kong afternoon trade, recording its most substantial daily loss since its listing in June 2020. Additionally, Bilibili and Kuaishou, prominent players in video-sharing and short-video platforms, experienced declines of 9.7% and 7.2%, respectively, given their involvement in online gaming.Market uncertaintyWith this latest development, the future of gaming crypto tokens remains uncertain in China, with investor confidence having been hit hard. Putting the matter in context on Friday, Stansberry Research Analyst Brian Tycangco took to the X social media platform, stating:”Govt regulation will effectively render prevailing business models irrelevant due to uncertainty regarding monetization. Games are inherently reward-based and if you clamp down on the use of rewards/incentives, you turn an entire industry on its head.”The guidelines, open for public consultation until Jan. 22, 2024, have not yet been legally enacted. This time frame allows for feedback and potential adjustments before enforcement.Notably, the Web3 gaming sector has witnessed substantial activity, with approximately a million unique active wallets engaged daily over the past three months, according to DappRadar. Industry experts, including Yat Siu of Animoca Brands, anticipate a potential surge in user engagement, emphasizing the potential impact of these regulations on the gaming industry’s trajectory.