Blade Entertainment partners with Cardo to venture into tokenized securities industry

Korea’s Busan City to Develop Blockchain-Based Carbon Neutrality PlatformBusan Metropolitan City, known for being home to South Korea’s largest port, announced today that its consortium won the bid for the 2023 new local energy facilitation project offered by the Korea Energy Agency, an organization under the Ministry of Trade, Industry, and Energy (MOTIE). The consortium consists of five entities, including Busan City, tech solution provider Nuri Flex, and gas distributor Busan City Gas. As the winning bidder, Busan City and its collaborators will proceed with the development of a blockchain-based platform that promotes carbon neutrality.Photo by BERK OZDEMIR on PexelsCarbon neutralityThe primary aim of this project is to create a system that leverages surplus renewable energy to achieve carbon neutrality in the city’s port and industrial infrastructure. The initiative includes providing eco-friendly renewable energy to port and industrial facilities, establishing a blockchain-based carbon credit system to support businesses in joining the global corporate renewable energy initiative RE100, and facilitating the trading of surplus electricity. These measures are intended to save energy, enhance power system stability, and create greater value.Boosting green energy proportionThe project is set to take place from June 2023 to December 2024, with an estimated cost of 3 billion KRW ($2.3 million). The national and local governments will each finance 25% of the project, while the private sector will cover the remaining 50%. Upon completion of the project, Busan aims to increase the proportion of renewable energy within the city. Leveraging surplus energy and engaging in carbon credit trading, Busan expects to gain a competitive edge in the carbon-neutral sector.

NVT Ratio Signals Overvalued BTCThe network value to transaction (NVT) ratio of Bitcoin, which has been staying at a high level since the beginning of the year, has signaled its overvaluation, according to Yonhap Infomax.However, some argue that this will not necessarily lead to a crypto winter, considering that the nature of Bitcoin as an asset has changed and there is no sign of overheating in other indicators.©Pexels/PixabayPrice and NVT ratio correlationYonhap Infomax found out that the correlation between the NVT ratio and the price of Bitcoin over the past six years is -0.35. A value of 1 represents a completely positive correlation, while a value of -1 represents a completely negative correlation.Extending this period to 2010 makes the correlation close to 0, but during the early years, NVT ratios showed high volatility, shooting up to four digits. Such a high volatility doesn’t suggest much correlation. Until 2021, there was a high correlation of up to -0.44.The NVT ratio is calculated by dividing the market cap by the transacted volume. Conceptually, it is similar to the price-to-earnings ratio for the stock market.In 2017, when the crypto market was bullish, the average Bitcoin NVT ratio was 7.3. This number became 8.7 in 2021 when the market experienced a similar pattern. In retrospect, single-digit NVT ratios usually hint at bullish markets.This year so far, Bitcoin has been relatively overvalued, given that the average NVT ratio is 23.6.BTC price recoveryWhen the crypto market sentiment lost its confidence due to the FTX bankruptcy last year, the price of Bitcoin went down to $15,000. It later recovered to the near $30,000 level. The Bitcoin price once had reached an all-time high in 2021, surpassing $65,000.The years that manifested similar patterns as this year were 2018 and 2019. In those years, the Bitcoin NVT ratio plateaued around 20.Uncertain outlookThe NVT ratio itself could point to a possible crypto winter, but researchers say it’s hard to say.Jang Kyung-pil, a research analyst at crypto data platform Xangle, said that people now consider Bitcoin as a store of value rather than a means of transactions, pointing out that BTC’s market value to realized value (MVRV) ratio has hit the bottom at 0.84 and now reached 1.4. According to Jang, MVRV values under 1 indicate undervaluation and those above 3 indicate overvaluation.Jung Seok-moon, head of the research center at crypto exchange Korbit, said that the current NVT ratio signals BTC overvaluation. He added that the Fed is likely to turn dovish in its monetary policy, which would prompt a strong BTC uptrend.

South Korea is set to allow initial coin offerings (ICOs) next year, easing a ban on crypto fundraising that has been in place since 2017. A draft of the Digital Asset Basic Act, prepared by the Financial Services Commission, would allow domestic sales of digital assets if issuers meet disclosure requirements, the Maeil Business Newspaper reported. The measure is intended to address concerns about tokens that are initially listed on overseas exchanges before becoming available to South Korean investors. The legislation outlines tougher accountability standards for crypto issuers. Projects that provide false information or fail to disclose material details in their whitepapers ahead of an ICO could be held liable for investor losses. Liability would also extend to other parties substantially involved in an offering, including outsourced operators and market makers.Photo by Y K on UnsplashStablecoin issuers need Korean presenceSeparate provisions set out rules for stablecoins, barring tokens issued by entities without a physical presence in South Korea from domestic trading, a restriction that would apply to widely used stablecoins such as USDT and USDC. Issuers would be required to fully back stablecoins with reserves such as cash or government bonds held at banks or financial institutions and would be prohibited from paying interest to users. The proposal reflected the FSC’s position on the second phase of digital asset legislation focused on stablecoin issuers. The issue remains subject to inter-institutional debate, with the Bank of Korea pressing for a bank-led consortium model for stablecoin issuance. The ruling Democratic Party of Korea (DPK) is expected to review a consolidated bill combining proposals from the government and the National Assembly next month, with plans to advance the legislation during the regular parliamentary session in the first quarter of 2026. The FSC’s focus on consumer protection is also reflected in its plans to introduce a Digital Finance Security Act, detailed in a recent report to the presidential office. According to Digital Asset, the proposed legislation would establish rules for traditional financial institutions as well as electronic financial businesses and virtual asset service providers. The move came after a 44.5 billion won ($30 million) hacking incident last month at Upbit, the country’s largest crypto exchange. Existing regulations under the Virtual Asset User Protection Act do not contain provisions specifically covering such cases. Separately, the FSC is working to strengthen its response to emerging forms of financial crime, including transnational offenses and crypto-enabled money laundering. It said measures under consideration included adding state-level criminal organizations to the list of entities barred from financial transactions, improving anti-money-laundering (AML) rules to better align with international standards, and expanding the scope of the travel rule. On the supervisory side, the commission intends to make the Virtual Asset Division a permanent unit after initially establishing it as a temporary body, News1 reported. The Virtual Asset Inspection Division within the Financial Intelligence Unit is also set to become a standing unit. Price declines weigh on exchangesThe stepped-up regulatory focus has coincided with a broader downturn in the crypto market. Bitcoin is trading below $89,000, about 30% below its all-time high of $126,000 set earlier in October. CoinGecko data cited by IT Chosun showed average daily trading volume across South Korean exchanges falling to $2.95 billion in November from $4.41 billion in August, with trading fees accounting for about 98% of exchange revenue. The broader market weakness has also been accompanied by declines in altcoins. South Korean crypto investors attributed the recent drop in altcoin prices to capital flowing into major cryptocurrencies such as Bitcoin and Ethereum. A weekly survey conducted by CoinNess and Cratos showed that 41.7% of the 2,000 respondents cited capital concentration in leading tokens as the primary factor, followed by the growing number of altcoins at 31.6%, their limited practical value at 14.7%, and technical factors such as chart patterns at 12.1%.