Crypto exchange Foblgate unites with HKVAC to expand global reach

Bithumb Shuts Down Crypto Research Center Amid Trading Volume SlumpBithumb, a cryptocurrency exchange based in South Korea, is shutting down its research center less than a year after its launch, according to a report by news agency Newsis. The closure is seen as a strategic move to enhance business performance in response to the recent decline in trading volume.Photo by Kelly Sikkema on UnsplashCostly research centersEstablished on June 8 last year, the Bithumb Economic Research Institute is reportedly ceasing operations tomorrow. Research centers are often perceived as costly endeavors, particularly when the company is experiencing poor financial performance. In the traditional financial sector, small and medium-sized securities firms typically prioritize restructuring their research divisions when dealing with profitability challenges.Relevance of research hubsAn official from a Korean cryptocurrency exchange told Newsis that research centers can be a financial burden during times of low trading volumes and subpar performance. Nonetheless, the official underscored the need to furnish investors with refined information through these research hubs, encouraging exchanges to cultivate an environment conducive to informed decision-making based on high-quality data.Since its inception, Bithumb’s research organization has published 55 reports aimed at forecasting cryptocurrency market trends using comprehensive macroeconomic and crypto data analysis. These reports have contributed to drawing investors to the sector.Global restructuring trendThe wave of workforce reductions in the crypto industry isn’t isolated to South Korea; it’s a global phenomenon. Chinese reporter Colin Wu, known for his crypto news platform Wu Blockchain, shared via Twitter that Binance, the world’s largest cryptocurrency exchange, is planning to lay off roughly 20% of its staff, totaling about 8,000 employees.In response to these concerns, Binance CEO Changpeng Zhao, also known as CZ, wrote a tweet yesterday. According to CZ, employee layoffs are a weekly occurrence within the company, based on considerations such as alignment with corporate culture. As an example, he mentioned the remote work environment and how it may not be suitable for everyone. However, CZ reassured that Binance remains engaged in hiring, with a focus on enriching its talent pool.

In the aftermath of the massive $235 million hack of the WazirX cryptocurrency exchange on July 18, users and stakeholders are grappling with its devastating consequences. The breach, which compromised a significant portion of the exchange’s reserves, has led to a series of legal, financial and security-related challenges, leaving millions of users uncertain about the future of their funds. The hack and its aftermathWazirX, once a leading Indian cryptocurrency exchange, lost approximately $235 million due to a breach in one of its multi-signature wallets. This included significant amounts of Shiba Inu (SHIB), Ethereum (ETH) and other assets. The hack crippled the exchange, forcing it to temporarily shut down operations and seek a restructuring process under Singapore's insolvency laws. The WazirX hacker has since begun laundering the stolen assets through Tornado Cash, a crypto mixer known for obscuring transaction details. According to blockchain security firm Cyvers, the hacker transferred over 5,000 ETH (approximately $12 million) to a new wallet and laundered $10 million in Ethereum through Tornado Cash. This mirrors the tactics of the North Korea-backed Lazarus Group, which has used similar methods in past high-profile crypto thefts. Photo by GuerrillaBuzz on UnsplashUsers seeking redress and government interventionAs the victims of the hack face uncertainty, over 4 million active WazirX users are expected to suffer a loss of at least 43% of their funds due to the restructuring process. Frustrated by the lack of action from Indian authorities, many users have sought help from Indian Prime Minister Narendra Modi, who was visiting Singapore at the time. Users took to social media to air their grievances and demand justice, urging the government to intervene. WazirX co-founder Nischal Shetty, who is based in Dubai, added to the confusion by stating that he does not know who is responsible for safeguarding user crypto funds on the platform. His statement has fueled outrage among users, who feel abandoned by the exchange’s management. Legal and ownership disputesAmid the chaos, WazirX is also battling a legal dispute over its ownership with Binance, the world’s largest cryptocurrency exchange. Shetty has repeatedly claimed that Binance acquired WazirX, granting it significant control over the platform's operations. However, Binance founder Changpeng Zhao (CZ) refuted these claims in 2022, stating that the acquisition deal was never completed. The uncertainty surrounding the ownership of WazirX has further aggravated users, many of whom are demanding a clear statement from Binance. So far, Binance has remained silent, neither confirming nor denying its involvement. This ambiguity has intensified calls for clarification, with users fearing that a lack of transparency may worsen their chances of recovering their funds. Partial withdrawals and restructuring effortsIn response to the crisis, WazirX has initiated phased withdrawals for users, allowing them to access 66% of their Indian Rupee (INR) token balances. Initially set for September 9, the withdrawal window was moved forward, offering some relief to users. However, many are dissatisfied with the partial access to their funds and are questioning when full crypto withdrawals will resume. WazirX’s legal team has indicated that users may recover only 55% to 57% of their crypto holdings, sparking further discontent. Meanwhile, the exchange has filed a moratorium application in the Singapore High Court, seeking a six-month reprieve from legal actions as it works on a restructuring plan. Looking aheadAs the WazirX saga unfolds, the future of the exchange and its users remains uncertain. The legal battles, ownership disputes and the ongoing laundering of stolen assets pose significant challenges to the platform's recovery. For now, users can only hope that the restructuring process will bring them closer to recovering their lost funds and that authorities will step in to provide clarity and resolution. 

OmniBOLT to Support BRC-20 Tokens on LightningSingapore’s OmniBOLT, a project that’s developing technological solutions within bitcoin’s layer two network environment, has outlined that it will support BRC-20 tokens on Lightning Network.Before we consider precisely what OnmiBOLT's decision to support BRC-20 tokens means, let’s cover the backstory.Photo by Sander Weeteling on UnsplashBRC-20BRC-20 is an experimental token standard which was created by an anonymous developer with the handle “Domo”, and username ‘@domodata’ on Twitter. A token standard governs how and where a cryptocurrency can be used. The approach has been pioneered by developers on the Ethereum blockchain who created the ERC-20 standard a number of years ago, relative to the Ethereum network.A bitcoin evolutionIn this instance, BRC-20 is a fungible token standard designed for the bitcoin blockchain. Bitcoin development is very slow and conservative, and deliberately so, in an effort to put network security first. However, it has had two major upgrades over the course of the last few years, namely SegWit and Taproot.Many in crypto have been critical of the bitcoin project on the basis of it being a pet rock that lacked features and the flexibility to use it in other ways aside from as a store of value or means of exchange. However, those protocol upgrades have led to further development that is expanding bitcoin’s use case and versatility.SegWit and Taproot enabled the development of Bitcoin Ordinals in January 2023. Ordinals provide a means to create Bitcoin non-fungible tokens (NFTs), by attaching data to individual satoshis, the smallest denomination of Bitcoin. NFTs created this way are immutable as they’re not created on side chains but on the bitcoin blockchain itself.In a fast moving scenario, the development of Ordinals led two months later to the emergence of the BRC-20 standard. BRC-20 tokens can be stored on the bitcoin base-chain, built with the assistance of Ordinals. BRC-20 is an exciting development as it stands to enable smart contract capabilities relative to bitcoin.Solving the bitcoin fee issueMany see this development as a solution for the longer term fees issue that the bitcoin blockchain will have to overcome. Bitcoin miners are compensated in mining rewards but the level of rewards is being cut in half every four years. The concern is that in the longer term, there may not be enough revenue for miners to continue to secure the network effectively.With the development of Bitcoin Ordinals, more fees are generated, and so this is seen as a means through which the network can sustain itself over the longer term.Mempool backlogSo what’s not to like? The issue that has arisen over the past few days is that bitcoin transaction fees have hit a two year high. Over the past few days, there have been in excess of 400,000 unconfirmed bitcoin network transactions sitting in the mempool. The mempool is a mechanism within the bitcoin protocol that stores the data relative to a queue of transactions that are waiting to be confirmed.Relieving pressure on bitcoinThat brings us back to the significance of the Singaporean team of developers at OmniBOLT deciding to support BRC-20 tokens on the lightning network. That move can relieve the pressure on the bitcoin mainnet. The project is being backed by Waterdrip Capital, Danhua Capital, Redline DAO and others.Bitcoin has been a boring protocol and many have celebrated that fact as a feature and benefit for a network that serves a couple of vitally important use cases exceptionally well. However, development never stops and it’s fascinating to see another side to the protocol unfold, and all the while, it’s not entirely clear where it will end.