Banking Difficulties Remain in Hong Kong for Crypto Start-Ups

Blockchain Solutions Provider Block Odyssey Launches NFT Ticket Service, “MakeDrop”Korean blockchain solutions startup Block Odyssey said Monday it is launching an NFT-based ticket issuance service dubbed “MakeDrop” in an effort to revolutionize ticketing and event services in the era of Web3.Photo by Andrey Metelev on UnsplashLimitations of traditional digital ticketsUntil now, major ticket reservation platforms have made it challenging for event organizers to streamline the ticketing process for events such as corporate or campus gatherings, concerts, festivals, and more.Event organizers have thus had to manually send notifications via text messages and emails, print paper tickets, and directly manage overall ticket sales and distributions. The absence of tools to identify ticket holders from attendees also makes it difficult to accurately determine participation and contribution ratios.Blockchain meets ticketingBut with the rapid advancement of digitized ticket issuance, NFT tickets have been gaining traction as a transparent and secure solution to such challenges. These tickets are verified and stored on a blockchain, setting them apart from traditional forms of digital tickets such as barcodes.About MakeDropBlock Odyssey’s MakeDrop is an open service that allows anyone to easily create, issue, and manage one-of-a-kind NFT tickets with individual ownership rights and transaction history. If secondary ticket transactions occur, all ownership changes can be verified on the blockchain, making it possible to block attempts at fraudulent or repetitive secondary trading.The service is particularly convenient for users, as they can automatically generate a wallet address for storing their NFTs by logging in to social media accounts without having to install a separate cryptocurrency wallet.As for event organizers, they can swiftly issue mobile tickets without using third-party ticket reservation platforms. Ticket invitations are sent to recipients via KakaoTalk, South Korea’s most popular messaging app, making the service more accessible as well. Those who have not received an invitation can still apply for participation if the event is public. Upon acceptance by the organizer, they will receive an approval notification through KakaoTalk, Block Odyssey explained.Participants can then present the NFT ticket’s QR code on the day of an event, and organizers can conduct real-time validation using the QR check feature provided by MakeDrop.Notably, while traditional ticket reservation platforms often do not share ticket holder information with event organizers, MakeDrop allows independent information management for all events. This allows organizers to identify low-engagement or idle members and offer more benefits to loyal participants.As part of its website launch promotion, MakeDrop is currently holding an event to distribute 100,000 free NFT tickets. The company also plans to release a mobile app in the future after incorporating user feedback and enhancing functionalities.

Bit Origin, the Nasdaq-listed (BTOG) pork processor turned crypto mining infrastructure firm, has acquired 40.5 million Dogecoin (DOGE), the company’s first purchase of the world’s largest memecoin by market cap since it announced that it was establishing a Dogecoin treasury. In a press release published on July 17, the Singapore-headquartered company with operations in the United States, Canada and China, set out that it would become the “first publicly listed company on a major US exchange to accumulate Dogecoin as a core asset.”Photo by Kanchanara on Unsplash$500 million treasury fundingThe firm outlined that it had entered into agreements with accredited investors, implicating the sale of $400 million in Class A ordinary shares in the company. An additional $100 million unlocked via convertible debt brought funding for its Dogecoin treasury to $500 million. Jinghai Jiang, Bit Origin’s CEO and Chairman, asserted that “what started as a joke has evolved into a globally liquid asset with a payments utility.” Jiang asserted that very few digital assets match the settlement speed and scale of community that Dogecoin offers. X Money potentialIn particular, he singled out the potential use of DOGE for X Money, a new payment system that is in the process of being established by Elon Musk’s X social media platform. Alongside many proponents of the cryptocurrency, Bit Origin is hoping that Musk will implement the use of DOGE to power X money. Jiang added:“In an age of broken institutions, Doge embodies a shared culture of optimism and resilience that transcends existing political and financial systems.” On social media, the company outlined that it believes in “Dogecoin not just as a meme, but as a future payments backbone.” Having utilized the services of Chardan Capital Markets as a placement agent, the company has already completed an initial closing of $15 million under the convertible debt facility that has been established.  On July 21, Bit Origin published another press release, detailing the acquisition of 40,543,745 DOGE with the memecoin holding having been purchased at an average acquisition cost of $0.2466 per DOGE.  Nearing inflection point for paymentsCommenting on the development, Jiang stated:“From our experience in mining, we understand the tradeoffs that define proof-of-work systems. We see Dogecoin’s utility potential for micropayments nearing an inflection point, driven by renewed developer activity and broader institutional interest in tokenization.” Dogecoin emerged in December 2013 having been developed by Jackson Palmer and Billy Markus as a joke. The project borrowed much of its code from Bitcoin. Despite having originated as a joke, the project has developed a sizeable community. The digital asset currently holds a market capitalization of $40.5 billion, according to CoinMarketCap data.  Bit Origin rebranded from China Xiangtai Food Co., Ltd. in April 2022. Up until that point, it had been involved in the pork processing business. The company pivoted to crypto mining, partnering with MineOne on a Wyoming mining facility in the United States. The facility was ordered to be shut down by the former Biden administration on the basis of it being a national security risk to have a Chinese project located within a mile of a U.S. Air Force base that houses nuclear intercontinental ballistic missiles.

Coinbit suspends operations, marking second crypto exchange shutdown this monthCoinbit, a South Korean cryptocurrency exchange operated by blockchain service provider AXIASOFT, has suspended its services according to an official announcement on its website posted on Thursday (local time). This development comes just over a year after it became a virtual asset service provider (VASP) on Sept. 1 last year. It is also the second crypto exchange in the country that has ended its operations after Cashierest on Nov. 6, indicating that troubled predictions previously projected by industry sources are becoming a reality.Photo by Andrew Winkler on UnsplashBusiness transitionCoinbit explained that, despite its efforts to create an environment optimized for transparent crypto transactions, it was pushed by ongoing changes in regulatory policies to make changes to its business. It intends to shift its focus to establishing a securitized transaction system.Membership registration and deposits will no longer be allowed starting at 5 p.m. next Friday. Transactions and withdrawal services will be suspended from 1 p.m. on Dec. 29. The exchange advised its users to withdraw their virtual assets accordingly.Earlier, it was reported that Coinbit was facing difficulties maintaining smooth operations due to its exceedingly low trading volume. Industry sources believe that the realization of the previously speculated closure of coin market exchanges.More shutdowns to come?“Much of the workforce at crypto exchanges have been taking hits, leading to challenging business conditions,” stated an unnamed industry expert, proposing conjecture that more announcements of service suspensions may be imminent. According to a survey conducted earlier this year by the Financial Intelligence Unit (FIU), 10 out of 21 crypto exchanges reported zero revenue from transaction fees, and 18 were in a state of complete capital impairment.