Analysts expect crypto market cap to triple or more next year

Metalpha Technology Holding Limited, based in Hong Kong, has strategically invested in NextGen Digital Venture Limited, aiming to enhance institutional participation in the digital asset space. This move is part of Metalpha's broader effort to bridge the gap between traditional finance (TradFi) and the crypto sphere.Photo by cottonbro studio on PexelsBuilding on Next Generation FundNews of the collaboration broke via a PR Newswire press release published by Metalpha on Monday. The deal builds upon a previous partnership struck by the two companies in April of last year, which resulted in the creation of Next Generation Fund I. This fund is specifically tailored to leverage Grayscale Investments LLC's suite of products, with Grayscale being one of the world’s largest crypto asset managers. Notably, the fund has demonstrated solid performance, surpassing bitcoin's annualized return by 35%. This success has instilled confidence in Metalpha, fostering optimism for the fund's future achievements. NextGen Digital is a Hong Kong-based investment company that aims to provide cryptocurrency and Web3 exposure to institutional clients in the conventional finance realm. Alongside its previous partnership with Metalpha, the firm has invested directly in Web3 startups such as iZumi Finance, a liquidity-as-a-service DeFi protocol. In announcing the Metalpha investment, NextGen founding partner Jason Huang said that the company “is committed to providing secure, compliant cryptocurrency investment opportunities and is always focused on achieving alpha returns.” The company is leveraging its Hong Kong Type 9 license, while aspiring to deliver secure and compliant cryptocurrency investment opportunities. Adrian Wang, president and director of Metalpha Technology Holding, expressed enthusiasm about the partnership, stating: "The launch of the NextGen fund marks the first step for both parties to jointly develop compliant products with generous returns. We look forward to establishing a more solid partnership in the future.” Wang had previously stated that clients of the Next Generation Fund were overseas Chinese institutions. “Some of them are family offices, some of them are public companies,” he stated. On-boarding TradFi investmentPositioned as a notable platform in Asia, NextGen aims to facilitate traditional finance's seamless entry into the realm of cryptocurrencies. This strategic investment by Metalpha underscores the evolving landscape where traditional financial institutions increasingly embrace the potential of digital assets. Metalpha, recognized as one of Asia's leading providers of crypto derivatives solutions, collaborates closely with traditional financial entities, including family offices and crypto mining firms. Holding both Type 4 and Type 9 licenses from the Securities and Futures Commission (SFC) of Hong Kong, Metalpha is authorized to advise on securities and engage in real estate investment scheme management or securities and futures contracts management. In May of last year, Metalpha secured a $5 million investment from leading crypto mining equipment manufacturer, Bitmain. Metalpha counts hybrid crypto exchange GRVT among its portfolio of investments. In September it emerged that it had invested in ParaX, a Web3 super app developed by Parallel Finance. In February 2023, the Litecoin Foundation partnered with Metalpha in an effort to provide environmentally friendly mining techniques to the Litecoin ecosystem.

NEOPIN and Finschia Foundation to jointly launch Finschia’s first decentralized exchangeCentralized decentralized finance (CeDeFi) protocol NEOPIN and blockchain developer Finschia Foundation have teamed up to launch Finschia Network Swap (FNSwap) — the first automated market maker (AMM) decentralized exchange on Finschia’s public blockchain — in the first quarter of next year, according to an announcement on Finschia’s official website last Friday (KST).Photo by Chris Liverani on UnsplashRevolutionizing DeFiNEOPIN has taken over the development of FNSwap, which will employ a pricing algorithm as an AMM decentralized exchange to set the prices of assets, thus increasing liquidity in liquidity pools. The platform will support crypto deposits, including those made in FNSA and NPT — Finschia and NEOPIN’s respective governance tokens — along with other stablecoins. The list of supported cryptocurrencies will be expanded later on as the mainnet grows, Finschia said.“As Finschia’s first decentralized exchange, Finschia Network Swap is expected to make it more convenient for many users to use crypto services,” said Kim Yong-gi, CEO of NEOPIN. “We plan to actively expand the number of cryptocurrencies supported on the platform in line with the expansion of the Finschia ecosystem.”Ecosystem expansionFNSwap will also be centered around its community of users, providing lucrative DeFi products and incentives like token swapping, staking and rewards, thus establishing a secure and convenient blockchain ecosystem.The two firms committed to exploring other endeavors as well, such as discovering promising Web3 projects through events like hackathons; facilitating interaction between their respective partner firms; and conducting joint promotional campaigns to expand the Finschia ecosystem.“We are pleased to work with NEOPIN to launch the first decentralized exchange of the Finschia ecosystem,” said Ko Young-soo, Chairman of the Finschia Foundation. “We will consistently provide the technical support that NEOPIN needs to successfully launch the Finschia Network Swap.”

Korean Cafe Attracts Customers with NFTsA South Korean cafe owner has employed non-fungible tokens (NFTs) as an ingenious marketing strategy to attract customers.©Pexels/Leeloo ThefirstNFT holder benefitsIn an interview with Korean crypto news outlet Digital Asset, Yoo Hyun, the entrepreneurial business owner, explained that he was seeking a strong marketing tool to capture the attention of the NFT market. Yoo was interested in seeing if his cafe could remain profitable while also offering substantial benefits to its customers.Since April 2022, Yoo has released a total of 50 Ethereum-based NFTs related to his cafe, Hide Me, Please (HMP), in two separate batches of 25 each. The first set of NFTs grants holders a free cup of coffee or drink daily for life, while the second set offers an extra drink or dessert with each drink purchased.Increased revenueThis unique NFT initiative has led to increased revenue for the cafe. Kim Dae-sung, the CFO of HMP, explained that the cafe’s monthly revenue increased by 15% compared to the same period last year.HMP is currently selling 500 NFTs as a third set and plans to release more depending on demand. Yoo highlighted the importance of an appealing interior design and tempting desserts, as NFT holders visiting for a free coffee may be enticed to purchase a dessert as well.Regular customersYoo asserts that the food and beverage industry hinges on retaining regular customers and believes NFTs can help achieve that objective. HMP aspires to become a community-based platform, and according to Kim, many digital artists are interested in the space that the cafe provides because it enables them to connect with clients. Collaborations often take place, and while the cafe charges for food and drinks, it does not charge for space rental. This approach fosters a positive impression and contributes to a strong brand image.High-quality cafeAt present, about 5% of HMP’s customers hold NFT memberships. Yoo and Kim plan to increase this number to 10% but no higher, as excessive reliance on NFT members could jeopardize the business. They underlined the significance of remaining a high-quality cafe, staying true to the core foundation of their enterprise. As they anticipate the growth of the Web 3.0 ecosystem, Yoo and Kim believe that with continued efforts, HMP will gain even greater value.