NEAR Foundation and Dongdaemun District of Seoul Forge MOU to Boost Web3 Industry

Exploring the motivations behind Crescendo’s multi-million dollar investment in LINE NEXTIn a move that has made headlines as the largest investment made in the Asian blockchain and Web3 industry this year, Seoul-based private equity firm Crescendo Equity Partners has decided to invest $140 million in LINE NEXT, the NFT business arm of Tokyo-based Internet giant LINE Corporation. According to South Korean news outlet DealSite, this can be seen as a strategic decision to leverage LINE’s global network, which dominates the Japanese market. Considering Crescendo’s track record of successful investments in various IT companies, the industry is keen to see whether the firm can replicate this success in the rapidly growing blockchain sector.Photo by Pepi Stojanovski on UnsplashConsortium takes controlAccording to the South Korean Financial Supervisory Service’s (FSS) Data Analysis, Retrieval and Transfer (DART) System on Thursday (local time), Crescendo’s special purpose company (SPC) established to manage the LINE NEXT investment dubbed Ludwig Holdings will act as a third party in the investment by providing KRW 130 billion in paid-in capital. Other financial investors will also contribute KRW 52 billion through a consortium formed with Crescendo, bringing the total investment amount to KRW 182 billion, or approximately $140 million.As a result of this capital increase, 795,401 new shares will be issued. Crescendo’s consortium will thus secure a 50% stake plus one more share, making it the largest shareholder group. However, among individual shareholders, LY Corporation will maintain its position as the single largest shareholder. The existing number of shares was 795,400. Crescendo plans to utilize its third fund, which raised KRW 1.1 trillion in 2021, to provide the funds by next February.Smooth transitionAlthough the consortium has become the largest shareholder group, there is no indication of an immediate change in LINE NEXT’s current management board. This decision is likely because blockchain development companies should be run by executives who are familiar with the unique ins and outs of the blockchain industry. The firm’s current CEO, Ko Young-su, is an IT expert who had been responsible for financial technology (fintech) operations at LINE Corp.Web3 expansionThrough the investment, LINE NEXT plans to popularize Web3 by expanding its global platform and developing new services. This includes DOSI, a global mobile NFT marketplace app for trading digital products, which will be integrated with LINE’s Japanese NFT marketplace LINE NFT. DOSI’s launch is scheduled for January next year.Navigating uncharted territoryMany believe that LINE NEXT’s ambitions for dominating the blockchain sector aligning with Crescendo’s tradition of investing in promising IT companies is sufficient justification for the major funding decision. However, some observers find the development surprising, considering the fact that it is rare for private equity firms in Korea to make such large investments in blockchain firms — an industry that has mostly been an unpopular choice for investors, likely due to its close association with crypto assets. Indeed, Crescendo’s interest in the company may have been partly driven by the fact that it is more focused on blockchain technology itself rather than crypto.“Crescendo seems to have focused on LINE’s global network, which pushed it to invest in its subsidiary. Considering the popularity of NFTs and other related projects last year, expanding this area of business seems plausible,” said an anonymous source from the investment banking industry. “Peter Thiel [the billionaire entrepreneur and venture capitalist who sponsored Crescendo] is known to have a keen interest in blockchain technology and is actively making investments in the sector, which probably made the decision-making process much smoother.”This development signifies yet another shift in the evolving business landscape, where parts of the industry that have not been traditionally associated with blockchain are increasingly recognizing the potential of its role in the future of industry and technology.

Solomon Islands partners with Soramitsu on CBDC pilotCentral bank digital currency (CBDC) development has been ongoing globally at a brisk pace in 2023 and smaller nations, like the Solomon Islands with a population of over 700,000, are no exception when it comes to that process with the introduction of Bokolo Cash.Photo by Gilly Tanabose on UnsplashIntroducing Bokolo CashSolomon Islands Central Bank (CBSI) has officially unveiled the proof-of-concept for its CBDC named Bokolo Cash, with support from Japanese blockchain firm Soramitsu. Bokolo Cash is pegged to the value of one Solomon Islands dollar.The proof-of-concept pilot was launched on Tuesday by way of a keynote speech given by Manasseh Sogavare, the prime minister of the archipelago. In that speech, Sogavare highlighted that the CBDC would lead to reduced transaction costs for citizens and businesses. Users can rely on transactions to be both secure and transparent, given that the network will be blockchain-based.The prime minister also articulated that the CBDC pilot project would be a catalyst for financial inclusion relative to the Island nation’s remotest communities.Pilot scheme use casesParticipants in the project will have the opportunity to use it in various scenarios. From retail transactions in the capital city, Honiara, to person-to-person transfers, the CBDC aims to demonstrate its versatility. The proof-of-concept will also assess wholesale transfers between commercial banks, simulate cross-border payments and examine remittances. To ensure security and compliance, users will undergo a “two-step” Know Your Customer (KYC) verification process, as outlined by Soramitsu.Operating on a customized blockchain based on Hyperledger’s Iroha, Bokolo Cash is designed for local use. However, it will also integrate with Soramitsu’s public Sora blockchain. This connectivity will enable users to engage in transfers using QR codes and the self-custody Fearless Wallet, a creation of Soramitsu.Legislative changeAlthough the project commenced at the beginning of November, the official announcement was made earlier this week. The legislation required to enable the CBSI to issue the CBDC — CBSI (Amendment) Act 2023 — was enacted on Nov. 3.The Solomon Islands, a collection of over 900 islands situated west of Papua New Guinea, now joins a group of island nations, including the Marshall Islands and Mauritius, actively experimenting with CBDC. Palau collaborated with Ripple Labs back in July to introduce the Palau Stablecoin (PSC). Interestingly, Tonga has contemplated adopting Bitcoin as legal tender, while Vanuatu hosts Satoshi Island, known for its Bitcoin-friendly environment. Meanwhile, Eastern Caribbean countries have already implemented an official CBDC called DCash.Soramitsu has been active in collaborating with central banks relative to the introduction of CBDCs, particularly in Asia. It has played a key role in facilitating the issuance of the Cambodian Bakong and the Lao DLak in Laos. Furthermore, it has initiated a project for regional cross-border payments using the Bakong and a stablecoin.In 2022, Soramitsu completed CBDC-related feasibility studies in conjunction with the relevant authorities in Vietnam and the Philippines. The Japanese fintech company has also participated with the Asian Development Bank and Tokyo-based global information technology solutions firm Fujitsu on a Web3 development project.

Haru Invest Considers Server Suspension as Troubles PersistIn the wake of halting withdrawals in June, Haru Invest, a Singapore-headquartered cryptocurrency platform, is contemplating the suspension of its server. This decision is part of the firm’s ongoing efforts to streamline operations and reduce maintenance costs.Photo by David Guenther on UnsplashCost reductionCEO Hugo Lee made the announcement on Monday, underscoring the significant burden of server maintenance costs on the company’s finances. He acknowledged that this cost represents a substantial portion of their fixed expenses and is thus a top priority for the firm.Lee disclosed:“We plan to suspend the service in a few weeks, backing up all member information.”However, he also noted that the company is yet to finalize a concrete plan for the server suspension.The move to shut down the server aligns with Haru Invest’s broader strategy to lower all costs associated with its services. Lee explained:“Some of the current fixed expenditures include the upkeep of Haru Invest services, the cost of workspace like the office, and the cost of communication with our members.”The company is actively seeking ways to reduce these expenses and preserve its assets.Asset distributionAdditionally, Lee assured users that the assets conserved thus far would be included in the distribution to those who have had their funds locked on the platform since June, offering a glimmer of hope to impacted users.Nevertheless, the announcement of the server suspension has raised concerns within the Haru Invest community. Some users have expressed skepticism about the purported high costs of server maintenance, believing the firm’s claim to be exaggerated.One user, voicing this discontent, commented on Haru Invest’s Telegram channel, “Server costs cost nothing.” Another remarked: “Servers are gone soon guys, huge costs, 200 USD a month.” According to industry standards, the maintenance costs for running a server for a small to medium-sized business typically range between $35 to $500 per month.Unhappy platform usersLee’s statement regarding the impending server suspension follows the platform’s earlier decision to terminate deposits and withdrawals in June. This decision was coupled with the closure of Haru Invest’s offices and the dismissal of numerous employees, as reported by local news agencies.Haru Invest attributed these issues to the fraudulent activities of the consignment operator B&S Holdings, formerly known as Aventus. While some investors accused the firm of orchestrating a “rug pull,” Haru Invest denied these allegations and maintained its innocence. One user posted the following claim on X (formerly Twitter) last week: “Rugpull. If justice is served, the scammers will be behind bars.”In a bid to address concerns over its corporate rehabilitation application, Lee appeared in court in September, emphasizing that Haru Invest was actively cooperating with investigating agencies. However, the company has yet to provide a timeline for the recovery of users’ assets as of early October.Lee also addressed the matter in Monday’s statement: “We are also responding to the rehabilitation proceedings that some of our members have filed with the court as mentioned in our previous announcement, in addition to actively cooperating with other authorities’ investigations. ”Haru Invest is reportedly facing a class-action lawsuit with disgruntled investors alleging fraud.