HeyBit to Cease Virtual Asset Deposit Services in October

LINE NEXT and Sega Join Hands to Develop Web3 Games with NFTsLINE NEXT, the NFT business arm of Tokyo-based messaging app developer Line Corporation, has announced the signing of a memorandum of understanding (MOU) with Japanese game company Sega. This partnership will see LINE NEXT acquiring intellectual property (IP) licenses of Sega’s video game franchises for the purpose of jointly developing Web3 games.Renowned for its iconic Sonic the Hedgehog franchise, Sega boasts studios in Japan and abroad. The Japanese game publisher produces games of various genres on different platforms, including arcade machines, desktop computers, and mobile phones. Sega has gained recognition for creating generational games for international users through innovative ideas and outstanding game development skills.Photo by Shubham’s Web3 on UnsplashWeb3 game popularizationThrough this collaboration, LINE NEXT will introduce Sega-licensed games on its NFT-based gaming platform, GAME DOSI, with the aim of popularizing Web3 games. GAME DOSI will provide functionalities such as NFT creation, easy payment, and marketing. While the specific lineup of games and their details will be revealed at a later date, LINE NEXT CEO Ko Young-su expressed his belief that this MOU with Sega will bring new elements of joy to global gamers, emphasizing that the NFT company is dedicated to delivering readily enjoyable Web3 content not only to Sega fans but to everyone through GAME DOSI.Launched in May, GAME DOSI focuses on user-oriented games with the slogan “Gamer First, Web3 Next.” The platform has recently unveiled several new games, including Sweet Monster Guardians (a village defense game); Vestria the Last Order, also known as V.L.O, (a roguelite role-playing game); and KEROZ (a hack and slash game). Additionally, GAME DOSI is actively involved in Project GD, an initiative aimed at developing a diverse range of games based on its own intellectual properties.LINE NEXT’s NFT endeavorsIn its efforts to attract NFT enthusiasts, LINE NEXT has undertaken various projects. Last month, it introduced DOSI Land, a program that rewards users with the FINSCHIA token (FNSA). FNSA is currently listed on crypto exchanges Bithumb, Bittrex, Huobi, and Gate.io, according to crypto market data website CoinMarketCap.Sega’s blockchain hesitancyMeanwhile, it was reported earlier that Sega has been rethinking its involvement in blockchain gaming. Shuji Utsumi, the Co-Chief Operating Officer of Sega, recently stated in an interview with Bloomberg that the company intends to protect the value of its content by withholding from participating in third-party blockchain gaming projects. Utsumi expressed his belief in the importance of the fun element in games, while he described “play-to-earn” (P2E) blockchain games as “boring.” P2E games refer to those that enable players to earn tokens as rewards for completing specific tasks or winning battles against other players.

Taiko Labs Raises Funding to Build Ethereum-Equivalent zkEVMTaiko Labs, a crypto startup focused on scaling the Ethereum blockchain, has successfully raised a total of $22 million in two funding rounds.According to a blog article published to the startup’s website on Thursday, the first funding round, a $10 million seed raise, was led by Sequoia China and concluded in the third quarter of 2022. The second round, a recent pre-Series A round, raised $12 million and was led by Generative Ventures, according to co-founder Daniel Wang.Photo by cottonbro studio on PexelsBroad investor participationNotable investors in the two rounds include IOSG Ventures, GSR, and GGV Capital, as well as angel investors like Patricio Worthalter, the Founder of the Proof of Attendance Protocol (POAP), Tim Beiko from the Ethereum Foundation, and Anthony Sassano, Co-Founder and COO of the decentralized virtual world, The Sandbox. Taiko Labs has not disclosed its valuation.Scaling EthereumThe primary focus of Taiko Labs is to develop a scaling solution for the Ethereum blockchain that closely adheres to Ethereum’s design and ideology. The company refers to its product as a Type 1 zero-knowledge Ethereum Virtual Machine (zkEVM).Vitalik Buterin, the inventor of Ethereum, emphasized the importance of Type 1 zkEVMs for scaling the Ethereum layer 1 in a blog post. Taiko Labs aims to extend Ethereum’s capabilities by sticking to the Ethereum Virtual Machine (EVM) specification and leveraging its best properties, as explained by Matthew Finestone, co-founder of Taiko Labs.On Wednesday, Taiko Labs released its latest version, its alpha-3 testnet, Grímsvötn, marking a significant milestone on its path to a decentralized and Ethereum-equivalent ZK-EVM.Taiko backstoryThe journey towards Taiko Labs began when Daniel Wang and Matthew Finestone worked together at Loopring Foundation, a trading and payment protocol based on zk-rollup technology. Wang served as the founder and CEO of Loopring Foundation from July 2017 until November 2021, while Finestone worked as the head of business for three years.Wang initially intended to build a decentralized social network but encountered a major obstacle — the lack of infrastructure and scalability. This realization led to the birth of the idea for Taiko Labs.Wang commented on the funding milestone, stating: “We believe that we are now on the cusp of having a truly decentralized Ethereum-equivalent ZK-rollup. This is our core mission at Taiko and we are incredibly proud to partner with leading investors who share our uncompromising vision.”The successful financing rounds will enable Taiko Labs to ensure a successful launch of its mainnet. However, the company is considering raising additional capital, partly to establish an ecosystem investment fund that will attract decentralized applications (dApps) and developers to the ecosystem.In terms of organizational structure, Taiko Labs plans to follow in Ethereum’s footsteps. Wang told The Block: “We are going to quickly convert the organization into a non-profit one. Ideally, we’ll operate very similarly to the Ethereum Foundation.”These successful funding rounds provide a solid foundation for Taiko Labs’ future endeavors, and the company is aiming to make a meaningful impact on the global adoption of blockchain technology with its focus on scaling.

South Korea is building payment rails for a tokenized won on two tracks, one led by banks extending a central bank digital currency pilot, the other by card issuers testing stablecoins, with no law yet to govern either. The Korea Internet & Security Agency and the Ministry of Science and ICT said last week they had begun a project to extend the Bank of Korea's CBDC pilot, Project Hangang, into retail payments, according to a report by local outlet Digital Asset.Ilustration generated with ChatGPTThe Korea Financial Telecommunications and Clearings Institute, which operates the country's interbank payment network, will lead the consortium of nine commercial banks, eight payment gateways and two large organizations that will pilot the payments. It will connect existing payment infrastructure to Project Hangang on a 9.6 billion won ($6.6 million) budget. The pilot tested deposit tokens, a tokenized form of commercial bank deposits backed by a wholesale CBDC. The design avoids building anything new. Consumers would pay through bank-issued deposit token wallet apps, with a physical card under consideration, and merchants would keep their existing terminals. The stated aim is faster settlement and lower fees for small merchants. The government also plans to use deposit tokens for public spending, starting with a pilot for official expenses and later a treasury model linked to dBrain, the nation’s digital budget accounting system. Card issuers defend the railsSeparately, Newspim reported the Credit Finance Association and nine card issuers, including Samsung Card, Shinhan Card, KB Kookmin Card and Hyundai Card, on July 22 concluded a joint proof of concept for won-denominated stablecoins. Run on a test network, it examined whether authorization, settlement and cancellation functioned when a won stablecoin was routed through existing card rails, and whether smart contract-based terminals and QR payments could also handle loyalty points and government-issued vouchers. The tests come as the card business faces mounting pressure. Net income at the eight card companies fell 8.9% last year to 2.36 trillion won ($1.6 billion), as merchant fee income declined despite rising card spending. With 3.09 million merchants, or 95.7% of the total, on preferential fee rates in the first half, and wallet-based stablecoin payments raising the prospect of transactions that bypass card networks altogether, issuers have reason to secure a role in whatever comes next. Their pitch is that they already own the hard part. "Issuers would have to build payment infrastructure from scratch to circulate a stablecoin," a card industry official said. Bolting a settlement function onto existing card rails, the industry argues, would also let issuers apply the fraud detection and anti-money laundering systems already running on those networks. Legislation still stalledDigital assets featured in a reform agenda announced last week by Kim Min-seok, a lawmaker and former prime minister running for leadership of the Democratic Party. "I believe we need financial reform, and one of its key aims should be to establish our sovereignty over digital assets," Kim told a news conference, according to another Digital Asset report. His agenda included passage of the Digital Asset Basic Act, a legal framework for won stablecoins, rules for issuing and trading security tokens, and investor protection. The act, covering stablecoin issuance and digital asset service providers, is targeted for passage this year. Work on the bill had been due to start after party and government consultations in March but was postponed indefinitely, with the crisis in the Middle East among the reasons cited.