India’s CoinSwitch Trims Workforce Amid Market Downturn

Hong Kong-based blockchain gaming and venture capital firm Animoca Brands has revealed a positive set of financial results in a recently published report.  In an investor update published to its website on March 5, the firm revealed key unaudited financials and business highlights for Q4 2024 and the previous 12 months ending on Dec. 31, 2024. Whereas other sectors report actual revenue figures, the gaming sector relies upon “bookings,” a measure of total sales and income generating activity of the company. The firm reported bookings of $314 million for last year. Compared with 2023, when Animoca reported bookings of $280 million, the firm has achieved a year-on-year increase of 12%.Photo by Lukas on PexelsAdvisory business growthThe company broke that financial measure down further, indicating that of the $314 million in sales and other income-generating activity, its Digital Asset Advisory (DAA) business accounted for $165 million of the overall amount. This disclosure is notable given that it represents a 116% increase, demonstrating a considerable growth in the firm’s advisory business and a diversification of its revenue streams. Animoca’s DAA business offers Web3 projects access to token advisory, and more specifically, consultation regarding tokenomics, marketing and listing. The business also consults in relation to node operation and trading services. Given that the company reported that bookings related to Web3 businesses weighed in at $110 million, Animoca’s advisory business has overtaken the contribution made by its Web3 businesses.  Contributing Web3 businessesAmong the Web3 businesses that made the greatest contributions were The Sandbox, Moca Network, Anichess, Gamee, nWay, Open Campus, TinyTap, Animoca Brands Japan, Eden Games, Blowfish Studios, Pixowl and Crazy Defense Heroes (TOWER). Bookings also included revenue generated via portfolio investments and partnerships. The company recorded $39 million, achieved through investment activities. In discussion with Cointelegraph, Animoca Brands co-founder and executive chairman, Yat Siu, said that the positive bookings numbers were a consequence of the firm’s ongoing efforts to innovate. He stated: “In 2024, we placed less emphasis on the US market, owing to various regulatory struggles experienced by other companies, and we also became more focused on providing support to the companies in our portfolio.” Animoca’s balance sheet holdings were robust in 2024, with $293 million in stablecoins and cash and $538 million in digital assets. Additionally, $538 million in off-balance sheet token reserves was reported. Stablecoin initiativeThe firm has developed a particular interest in the stablecoin sector through a partnership with British multinational financial services firm Standard Chartered and telecommunications firm HKT. That initiative involves the formation of a joint venture company which will go forward to issue a Hong Kong dollar (HKD)-backed stablecoin once a license has been secured from the Hong Kong Monetary Authority (HKMA). Siu identified real-world asset (RWA) tokenization as another growth area for the company. The Animoca Brands co-founder outlined that he expects the firm to record further growth as 2025 progresses. Notwithstanding that, he warned that such expectations may be affected by adverse economic developments and risks, including the tariffs policy being pursued by U.S. President Donald Trump. 

One of South Korea's prominent cryptocurrency exchanges, Bithumb, has doubled down on its effort to solidify its position as a leading crypto trading platform in the country. Bithumb has recently announced its policy to offer the lowest withdrawal fees among all local crypto exchanges, while enhancing its user experience by upgrading the user interface (UI) and adding more features to its app, according to the local media outlet Kyunghyang Games.  Already one of the few qualified fiat-to-crypto exchanges in Korea and a member of Digital Asset eXchange Alliance (DAXA) – a consultation group of the top five local crypto exchanges – Bithumb aims to further strengthen its competitiveness in the market. Photo by Traxer on UnsplashLower withdrawal fees with trading fees already at 0.04%According to the press, Bithumb has announced to offer the lowest withdrawal fees in the local crypto scene to win the hearts and minds of investors. Under the updated fee policy, users are now charged 0.0008 BTC for withdrawing Bitcoin and 0.009 ETH for Ether. The exchange has also been known for offering one of the lowest trading fees at 0.04%.  Making the deposit limit increase easierBithumb has long been getting complaints from users over its relatively unfavorable user experience and cumbersome processes required to increase the deposit limit of their real-name accounts. In response, Bithumb has introduced a new in-app feature that simplifies such procedures, so that users can raise their deposit limit with ease.  Among users who joined Bithumb in March, those whose initial deposits have passed 30 days and who purchased crypto assets valued at over KRW five million ($3,700), are now eligible for the deposit limit raise, allowing them to deposit and withdraw up to KRW 500 million per day.  Enhanced user interface and user experience One of the newly added features is the "Even Faster Chart," which provides users with four times faster response times following its transition from "Web view" to "Native view."  Bithumb's Chief Operating Officer (COO), Moon Seon-il, stated that the exchange is improving its service in multiple ways, including offering the lowest fees, supporting multichain transactions and enhancing UI for users.  

Japan is taking steps to approve exchange-traded funds (ETFs) tracking spot cryptocurrency prices, a regulatory shift that could take effect as early as 2028, according to a CoinPost report citing a Jan. 25 article by Nikkei.Photo by Jezael Melgoza on UnsplashThe timeline reflects the legislative steps required before retail investors can access digital assets through traditional brokerage accounts. Japan’s financial regulator, the Financial Services Agency (FSA), plans to amend investment regulations to permit cryptocurrencies as eligible assets for investment trusts. SBI, Nomura prepare crypto productsAccording to the report, major financial heavyweights, including SBI Holdings and Nomura Holdings, are already developing products in anticipation of regulatory approval. If cleared by the Tokyo Stock Exchange, the listings would allow Japanese investors to trade Bitcoin products alongside standard stock or gold ETFs. Institutional interest appears robust. A Nikkei survey conducted in November identified six major firms weighing the development of crypto investment trusts: Nomura Asset Management, SBI Global Asset Management, Daiwa, Asset Management One, Amova, and Mitsubishi UFJ. These companies are reportedly exploring products tailored for both retail and institutional clients. However, the 2028 target is largely dictated by the pace of tax reform. Government plans call for crypto profits to be taxed at a uniform 20%, replacing the current progressive system and putting digital assets on the same footing as equities and foreign exchange. The revised tax treatment would also apply to crypto ETFs and derivatives. At present, crypto gains are treated as miscellaneous income, leaving investors subject to progressive tax rates that can climb to roughly 55% once local levies are included. Crypto market slides amid volatility As Japan maps out its long-term regulatory course, recent market activity has been volatile, tied to potential currency interventions and U.S. political uncertainty. Bitcoin briefly surged to $91,000 over the weekend, a move CoinDesk reports some traders attribute to suspected Japanese intervention in the foreign exchange market. The theory suggests a transient reversal in the yen’s recent weakness forced an unwinding of leveraged carry trades, temporarily boosting the world’s largest cryptocurrency. However, the momentum was short-lived. Bitcoin is currently trading near $87,500, down 1.45% over the previous 24 hours. Market sentiment has been dampened by fears of a U.S. government shutdown and renewed trade tensions. On the prediction market platform Polymarket, participants have priced in a 78% chance of another government shutdown by Jan. 31. Compounding investor anxiety are President Donald Trump’s tariff threats. Trump recently warned he would impose 100% tariffs on Canada should the U.S. neighbor sign a trade deal with China. Canadian Prime Minister Mark Carney has since announced that Ottawa has no plans to forge such an agreement, according to CNBC. Monetary policy remains a headwind for risk assets. Ahead of the Federal Reserve’s interest rate decision this week, the CME FedWatch Tool indicates traders expect the central bank to hold rates steady in the 3.5% to 3.75% range at the Jan. 28 meeting. Markets are pricing in only a 2.8% chance of a 0.5% cut. The prospect of rates remaining unchanged offers little incentive for investors to pivot aggressively toward riskier assets like crypto. Gold, silver reach record levels This risk-averse environment has funneled capital into precious metals, driving prices to record levels. Both gold and silver have hit all-time highs, surpassing $5,000 per ounce and $106 per ounce, respectively. Amid the uncertainty, retail investors in neighboring markets are showing caution. In South Korea, a weekly survey by CoinNess and Cratos of 2,000 respondents found that 43.2% of investors are holding existing crypto positions without making additional purchases. Another 22.7% said they are actively trading, while 21.4% reported having no current position and waiting for a more favorable entry point. The remaining 12.7% said they are staying out of the market entirely.