China disrupts massive crypto-related laundering operation

Kyrgyzstani President Embraces Hydro-Powered Crypto MiningIn a move that signals the Republic of Kyrgyzstan’s growing interest in cryptocurrency mining, President Sadyr Japarov has given the green light to establish a crypto mining farm at a hydroelectric power plant within the Central Asian country.The ambitious project, set to be built at the Kambar-Ata-2 hydropower plant, has been allocated a budget of up to $20 million, as reported by Kyrgyzstan’s national news agency, Kabar, on Thursday.Photo by Collab Media on PexelsMore efficient use of powerThe primary motivation behind this endeavor is to address energy losses linked to non-utilized power from the Kambar-Ata-2 plant, which has been operational since 2010. According to President Japarov, approximately 6.8 billion kilowatt-hours (kWh) of energy have been wasted due to this issue. By harnessing the excess energy for cryptocurrency mining, the Kyrgyz government aims to optimize resource usage and bolster the country’s budget.President Japarov emphasized that the profits generated from the mining farm would directly benefit the people, particularly the power engineers who are responsible for the plant’s operations. He asserted that the earnings would be meticulously controlled and allocated, with complete automation and oversight.Energy grid challengesHowever, this recent decision appears to contradict the state of emergency announced by President Japarov in Kyrgyzstan’s energy sector on July 24. The emergency status, which will be in effect from August 1, 2023, until December 31, 2026, is attributed to climate challenges, insufficient water inflow into the Naryn River basin, and a lack of generating capacity due to escalating energy consumption.Despite these apparent contradictions, President Japarov affirmed that crypto mining at the hydro plant would be subject to the highest tariff in Kyrgyzstan, amounting to approximately 5 Kyrgyz soms ($0.057) per kW.As early as March 2022, Kyrgyz lawmaker Karim Khanjeza urged the government to legalize the cryptocurrency industry during a parliamentary committee meeting, citing the rapid expansion of the crypto space. Although Kyrgyzstan introduced some regulations for crypto exchanges in 2021, it has not yet enacted specific laws governing cryptocurrencies.The integration of hydro-powered crypto mining presents both opportunities and challenges for Kyrgyzstan. If executed strategically, the venture could harness underutilized energy to boost the national economy and provide benefits to the people.Learning from KazakhstanThat said, the Central Asian country would do well to pay heed to events that unfolded in neighboring Kazakhstan relative to crypto mining over the course of the last few years. Following a major crackdown on crypto mining activity in China, many miners upped and moved their operations to Kazakhstan. That sudden unplanned and unregulated upsurge destabilized the country’s power grid, forcing the government to crack down on mining. It has since regulated the activity in order to accommodate it without it having a detrimental effect on the energy grid.As developments unfold, Kyrgyzstan’s foray into cryptocurrency mining will undoubtedly be closely monitored by industry observers and stakeholders. President Japarov’s vision to distribute the earnings to ordinary citizens brings an element of promise to the project. Crypto mining can be a positive development for the country, leading to more efficient energy use, so long as the authorities plan accordingly.

Bitget Report Finds Gen Z Dominates Crypto Copy TradingA recent report by Bitget, the Seychelles-headquartered crypto exchange, sheds light on the growing trend of copy trading among younger investors, particularly Gen Z.Photo by rc.xyz NFT gallery on Unsplash44% under 25The report, released on Thursday, reveals that an impressive 44% of all copy traders on the platform are under the age of 25, indicating a strong inclination among this generation towards this type of investment and trading strategy.Copy trading, or social trading, involves emulating the trading activities of established investors. Bitget’s findings indicate that the younger demographic is more receptive to this approach, with individuals aged 25 to 35 constituting just under one-third of all copy traders. Comparatively, individuals aged 35 to 55 represented 17% of copy traders, while those over 55 constituted a mere 7%.Reliance on influencersInterestingly, this trend aligns with Generation Z’s penchant for seeking advice from social media influencers. Bitget’s report highlights that Gen Z’s tendency to turn to these influencers for investment decisions could be a driving factor behind their affinity for copy trading.A survey by Forbes Advisor in January found that approximately 80% of both Gen Z and millennials rely on financial advice from social media platforms. Notably, platforms like YouTube, Reddit, and TikTok have gained their trust, with half of the respondents claiming to have profited from advice received.The report also reinforces crypto’s status as the preferred investment choice among Gen Z. A joint study by the CFA Institute and the Financial Industry Regulatory Authority (FINRA) Foundation in May revealed that crypto was the most popular investment option for Gen Z in the United States, a striking 44% of Gen Z investors initiated their investment journey with cryptocurrencies, surpassing the 35% of millennials who did the same.Geographical differencesThe trend extends beyond the US, with 43% of British and 35% of Canadian Gen Z investors indicating crypto as their inaugural investment.Geographically, Bitget’s report showcases intriguing patterns among its copy-trading user base. While nearly a third of users hail from Western Europe, almost half originate from East or Southeast Asia. This distribution highlights the global reach of the platform and the appeal of copy trading across diverse regions.Of note, despite constituting only 1% of Bitget’s global copy traders, a remarkable 62% of African users expressed interest in copy trading. This proportion stands as the highest among all regions surveyed, reflecting a growing appetite for innovative investment methods on the African continent.Bitget’s report underscores the evolving landscape of investment practices, with Generation Z at the forefront of embracing new approaches like copy trading. It also builds on prior initiatives and research undertaken by the firm. In May Bitget launched a corporate social responsibility (CSR) project titled “Blockchain4Youth.” That initiative revealed that Bitget understands that the younger generation is where the greatest opportunity for mass market adoption lies for crypto and Web3.As the influence of social media on financial decisions continues to rise, the crypto industry may see further shifts in investment patterns and strategies among different demographic groups.

Param Labs, a modular gaming ecosystem, has announced the successful completion of a $7 million investment round, with Animoca Brands, a prominent crypto venture capital firm, leading the charge.Photo by Precondo CA on UnsplashOversubscribed funding roundJoining Hong Kong-headquartered Animoca Brands in this oversubscribed round were Delphi Ventures, Cypher Capital, P2 Ventures (formerly Polygon Ventures), Mechanism Capital, Merit Circle, TRGC Capital, Double Peak Group and MH Ventures. Anthony Anderson, CEO of Param Labs and Kiraverse, highlighted the significance of modular gaming ecosystems like Param in laying the groundwork for the next era of Web3 games. In an exchange with Cointelegraph, Anderson stated: “Unlike most Web3 studios that focus on developing single game titles, modular ecosystems offer a variety of products and components. This allows developers to build their own games from these modules and provides essential tools for other developers to utilize and integrate into their projects.” The timing of this funding round coincides with significant growth milestones for the Param Gaming Platform, which recently surpassed 300,000 daily active users. Additionally, the platform's X page boasts over 2.5 million followers, underscoring its growing popularity. Strategic investments from luminaries such as Yat Siu, co-founder of Animoca Labs, and Banks, founder of Face Clan, further underscore the potential of Param Labs, which is based in the United Arab Emirates (UAE), in realizing the vision of an open metaverse. In a statement published to the Animoca Brands website, Yat Siu expressed enthusiasm about the collaboration, stating: "This collaboration aligns with our shared vision to redefine the gaming landscape, ensuring that gamers are the true owners of their digital assets." Focusing on infrastructureThis injection of capital is poised to address a critical deficiency in the realm of Web3 gaming: the lack of foundational infrastructure. Addressing precisely that challenge which is hindering mainstream adoption, Anderson emphasized the pivotal role of infrastructure: “Focusing on infrastructure is crucial, as it not only addresses the challenges in the games we’re developing but also has the potential to be applied to hundreds, if not thousands, of other experiences. This will significantly contribute to the adoption of blockchain gaming.” The UAE-based company is currently working on producing a number of products. These include its Game Launcher and Pixel to Poly, an offering that converts 2D images into 3D assets within games. While those are in the product pipeline, it has already launched Kiraverse, an online multiplayer game where the gameplay incorporates players competing to earn digital assets.  Param Labs has also sought to broaden the technical expertise available to it, with the hiring of Steve Young, a former head of consumer products at renowned American video gaming firm Activision Blizzard. Young has come in as a strategic advisor at Param. The company plans to launch its native token, PARAM, shortly to enable governance of the ecosystem that it is putting together.