Canaan’s Record Q2 Revenue Amid Profitability Struggle

American crypto exchange and custodian Gemini announced via its blog on Oct. 29 that it has been awarded in-principle approval for a Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS). In an X post on Oct. 23, Dan Clarke, who worked for Gemini in Singapore in an International Marketing & Operations role in 2021, outlined that back then the company ran the first crypto-related full page ad in the Straits Times with the slogan “We’re in Singapore. For Good.” Fast forward three years and it appears that Gemini is making good on that commitment through this latest regulatory-compliant milestone.Photo by Swapnil Bapat on UnsplashSingapore to play a crucial roleThe MPI license will enable Gemini to offer digital payment tokens and cross-border money transfer services in Singapore. Gemini’s Asia-Pacific (APAC) business is headed up by Saad Ahmed. Ahmed commented that Singapore has been at “the heart” of its operational expansion within the APAC region. Expanding on that further, he stated:“While the United States remains our largest market and global headquarters, Asia and Singapore in particular play a crucial role in our global strategy.”  Ahmed outlined that Singapore represents the company’s second-largest market, with plans to double its current Singaporean workforce and move to a larger office space. The Gemini executive believes that this in-principle licensing approval takes the company one step closer to offering services that cater to the needs of residents of the city-state.  Serving users across the APAC regionIn its blog announcement, the firm said that “since establishing our regional headquarters in Singapore, we’ve focused on expanding our footprint, ensuring that we bring a localized, secure, and compliant trading experience to users across the region.” With the regulatory environment in its home market being currently hostile to crypto, Gemini has pursued a strategy followed by many of its peers in looking for growth opportunities overseas instead. In April of last year, the company announced that it was in the process of opening an engineering center in India.  In June 2023 the company publicized its intention to pursue a crypto trading license within the United Arab Emirates (UAE). At the time the company’s co-CEOs, Tyler and Cameron Winklevoss, referred to the “hostility and lack of clarity” when it came to the regulatory environment within the United States. Regulatory clarity to drive growthAhmed believes that regulatory clarity in Singapore will be a driver of growth, leading to greater adoption across the region. With regard to the U.S., he has the expectation that the crypto industry will grow regardless of whether former U.S. President Donald Trump or Vice President Kamala Harris wins the upcoming presidential election.  Notwithstanding that, Gemini’s Winklevoss twins have donated over $2 million to Trump’s campaign, while also contributing funds to a super political action committee (PAC) supporting John Deaton, a Republican challenger to the Senate seat of fierce crypto critic Senator Elizabeth Warren.  Regulatory conditions in Canada have proven to be too much to handle for the company. At the end of September, Gemini announced that it would close all customer accounts in Canada by December 31 as a direct consequence of new regulations which have been introduced by the Canadian Securities Administrators (CSA).

Web3 Cybersecurity Firm Zyber 365 Raises $100M in FundingZyber 365, a pioneering Web3 startup that combines AI, Web3, and cybersecurity, has recently secured $100 million in funding from the UK-based SRAM & MRAM Group.Photo by micheile henderson on Unsplash$1.2 billion valuationThe substantial investment places Zyber 365’s valuation at an impressive $1.2 billion, while marking a significant milestone for the company, underscoring its promising trajectory.Although now headquartered in London, the company’s origins stem from India with a set of Indian founders, while the firm continues to maintain its strategic operational base in India.The company was founded earlier this year by Pearl Kapur and ethical hacker Sunny Vaghela. The startup stands out for its groundbreaking approach to cybersecurity, offering a decentralized and cyber-secured operating system that upholds the core tenets of environmental sustainability.Indian nucleus of operationsNotably, Zyber 365 has earmarked India as the nucleus of its operations, aiming to harness the nation’s tech talent and vibrant ecosystem to fuel its growth. The recent injection of capital will likely play a pivotal role in amplifying Zyber 365’s expansion initiatives, bolstering its technological capabilities, and cementing its global market presence.The SRAM & MRAM Group, no stranger to the tech investment landscape, has previously demonstrated its confidence in innovative startups. In a similar vein, the group invested $100 million in another India-centric blockchain startup, 5ire, in July of the previous year, valuing it at an impressive $1.5 billion.Broad Web3-based product rangeZyber 365’s portfolio spans a wide spectrum of Web3 products, including Layer-0, Layer-1, and Layer-2 blockchains, decentralized identities, data analytics, a software development kit, a web browser, and even non-fungible token (NFT) marketplaces and initial coin offering (ICO) capabilities.These offerings can be seamlessly integrated as part of a comprehensive Web3 ecosystem or employed as standalone applications tailored to specific user requirements.Sunny Vaghela, the Co-Founder and Chief Product Officer (CPO) of Zyber 365, expressed his enthusiasm about the infusion of capital. He emphasized that this financial boost positions the company to expedite the development of its Web3 and AI products, thereby enhancing its presence in the dynamic tech landscape.Vaghela underscored how Zyber 365’s inventive approach to cybersecurity and its commitment to pioneering technologies set it on a remarkable path toward industry leadership.Mahendra Joshi, Director of the SRAM & MRAM Group, echoed Vaghela’s sentiments, lauding Zyber 365’s exceptional team and disruptive technology. Joshi’s confidence in the investment’s potential to drive outstanding growth and success in the coming years reflects the industry’s anticipation of the startup’s continued evolution.In an era where cybersecurity and innovation are paramount, Zyber 365’s substantial funding from the SRAM & MRAM Group heralds a new phase of growth and advancement. Venture capital investment in the digital assets space has contracted significantly since the last bull market. However, as this deal demonstrates, there are signs of green shoots emerging.With its cutting-edge technology and strategic focus on Web3 and AI, the startup has an opportunity to reshape the landscape of cybersecurity while solidifying its status as an industry trailblazer.

Recent developments relative to governance of the CRO token, a native token belonging to the Cronos blockchain, have proven controversial, with many in the community unhappy with the actions of Singapore-headquartered Crypto.com.Photo by Markus Winkler on UnsplashProposal controversyThe controversy surrounds a proposal put forward by Crypto.com, which originally developed the Cronos blockchain in 2021, to mint 70 billion CRO tokens. The move would effectively roll back a CRO token burn that took place in 2021. The governance process applicable to the proposal meant that CRO token holders could vote on the proposal between March 2 and March 16. For the majority of that voting period, the outcome appeared to be uncertain. The “yes” vote had a narrow lead, but it would have been insufficient to reach the required 33.4% quorum of eligible votes. Exceeding the quorumHowever, at 14:00 UTC on Sunday, a last-minute influx of 3.35 billion tokens tipped the balance firmly in favor of the proposal while well exceeding the minimum turnout as 70.18% of eligible votes were cast. 61.18% voted in favor, with 17.61% against. Many CRO token holders who opposed the proposal are aggrieved at the manner in which this late voting surge came about. It’s understood that these last-minute votes came from blockchain validators controlled by Crypto.com. Crypto.com is understood to hold in the region of 80% of the voting power. In exercising that voting clout, many CRO holders feel that it has undermined the will of the community. Some commentators believe that increasing the token supply will result in a loss of trust in the project, damaging investor confidence going forward. Earlier this month, Crypto.com CEO Kris Marszalek responded to community pushback against the proposal. Marszalek suggested that the proposal ties in with an overall strategy for the success of the Cronos blockchain and its CRO token in the long term.  He pointed to four items that are relevant in achieving success for an altcoin like CRO. These included finding product-market fit, the need to redeploy free cashflows, successfully launching exchange-traded funds (ETFs) and participating in reserve-building initiatives.  ‘Free to vote and free to sell’The strategy relies upon building demand in order to achieve longer-term success. On X, Marszalek wrote: “People who do not agree that this is the right approach are free to vote & free to sell. We will stay laser focused on building towards new ATHs [all-time-highs].” In another X post on March 19, the Crypto.com CEO outlined that the company generated $1.5 billion in revenue in 2024 while servicing the needs of 140 million users on the platform. The company spent $700 million on branding, user acquisition and user incentives in 2024. Its operations turned a net profit of $300 million.  Crypto.com has also made further headway on the compliance front over the course of the past week. The company received licensing approval in Dubai to offer derivatives from the Virtual Assets Regulatory Authority (VARA). On March 17 the company announced that it had successfully achieved Virtual Asset Service Provider (VASP) registration with the Argentine regulator.