Klasha and FOMO Pay join forces on cross-border payments

Intella X Explores Ways to Integrate YGG’s Soulbound Reputation Tokens into Its WalletIntella X, a South Korean Web3 gaming platform, has announced its partnership with Yield Guild Games (YGG), a leading DeFi-powered gaming guild.Photo by Shubham Dhage on UnsplashBoosting Intella X’s global presenceThis collaborative effort is expected to boost Intella X’s presence in the global Web3 sector. YGG, boasting a membership base of over 450,000 worldwide and collaborating with more than 80 gaming companies, recently launched Superquest, a new way to earn in-game rewards. Superquest awards soulbound reputation tokens to gamers based on their level of community engagement and contributions. The two organizations will explore ways to integrate YGG soulbound reputation tokens into Intella X Wallet (IX Wallet), a Web3 wallet designated for the Intella X platform.In an attempt to expand its ecosystem, Intella X has soft-launched the Android and web versions of IX Wallet. Furthermore, the Korean Web3 platform in February joined forces with IndiGG, a sub-decentralized autonomous organization of YGG in India.Neowiz’s Q2 financialsIn the midst of these developments, Neowiz, the parent company of Intella X, last week disclosed its financial performance for the second quarter. The company garnered revenues amounting to KRW 70.1 billion ($52.7 million), signifying a year-on-year decrease of 0.2%. Neowiz incurred an operating loss of KRW 4.9 billion during the same period, venturing into negative territory in Q2. This setback can be attributed to escalated marketing expenditures associated with the launch of the mobile role-playing game “Brown Dust 2” and the third-year anniversary celebration of the MMORPG title “Kingdom.” The latter is the brainchild of game developer FOW Games, a company Neowiz acquired in May.Meanwhile, Neowiz’s Q2 net income recorded an 8% year-over-year increase, totaling KRW 22.4 billion. This one-time gain is due to the sale of certain shares the company owned in another entity as part of the wider FOW Games acquisition strategy.Path to recoveryIn the latter half of this year, Neowiz is gearing up for recovery, channeling its focus into in-house developed titles. A key highlight among these is the imminent launch of “Lies of P” on September 19. As the launch date of this soulslike video game, inspired by the narrative of Pinocchio, draws near, the company is poised to offer game packages for pre-sale commencing September 17. These packages will be accessible both online and in-person through the e-commerce platform SSG.com and the warehouse chain E-Mart Traders. An extensive global marketing campaign is also in the works, with Neowiz set to participate in Germany’s Gamescom 2023 later this month.

Canaan’s Record Q2 Revenue Amid Profitability StruggleCanaan, a Singapore-based player in the Bitcoin mining sector, has reported a remarkable surge in its Q2 Bitcoin mining revenues, reaching an all-time high of $15.9 million despite continuing to struggle to achieve profitability.The growth, a 43.3% increase quarter-over-quarter, is attributed to the heightened sale of computing power in comparison to Q1, as indicated by the company’s unaudited second-quarter results, which were released on Tuesday.Photo by Rifath @photoripey on UnsplashRevenues boosted by multiple factorsThis surge in revenues was propelled by a range of factors, including the recovery of Bitcoin’s price, amplified computing power, and increased rewards. Notably, Canaan managed to sell 6.1 million TH/s worth of computing power. This marked 44.2% growth when compared with the previous quarter and an 11.7% surge from the same period last year.Despite this surge, Canaan’s overall financial status continues to exhibit challenges in terms of profitability. The company encountered $30.6 million in mining costs during the second quarter, which significantly contributed to a total net loss of $110.7 million for the same period. This net loss reflects a considerable increase from the $84.4 million reported in Q1 and starkly contrasts with the net profit of $90.1 million achieved in the corresponding period of the previous year.Inventory write-downs and impairment chargesThese losses can be attributed to several factors, including an inventory write-down and impairment of property and equipment. Nangeng Zhang, Canaan’s Chairman and CEO, addressed the complexities the company faces in the current market.He noted: “Admittedly, we are still facing a market that has yet to recover with soft purchasing power on the demand front, generating continued pressure on our sales.” Zhang also acknowledged that the company faced challenges stemming from regulatory changes and contractual breaches from a particular partner.Bitcoin mining difficulty and hash rates also proved to be a challenge for Canaan. The Bitcoin network hashrate currently stands at 326.26M by comparison with 226.91M a year ago. An ever higher hashrate is ordinarily a bullish sign for Bitcoin. However, Canaan has to deal with the higher cost of mining even though the Bitcoin unit price has not responded proportionally to meet that all-time high hashrate.While Canaan’s Q2 performance reflected resilience and expansion into new mining projects in Africa and South America, the company’s financial struggles underscore the ongoing volatility and uncertainty in the cryptocurrency space.In terms of cryptocurrency holdings, Canaan disclosed that it held 1,125 Bitcoin with a total carrying value of $28.8 million as of June 30. This inventory included both company-owned Bitcoin and those received from customer deposits. The company also noted an impairment on its cryptocurrency holdings in Q2, amounting to $2.4 million.Looking ahead, Canaan projected its Q3 total revenues to approximate $30 million, acknowledging the persistently challenging market conditions that are prevalent in the industry. The company remains vigilant about its financial outlook as it strives to navigate through the evolving landscape of the cryptocurrency market.In a recent announcement, Canaan unveiled plans to introduce a “groundbreaking, industry-redefining product that will shape the future of Bitcoin mining.” The debut is scheduled for September 12, coinciding with a gala event that commemorates the company’s 10th anniversary.

SEC Opposes Motion to Dismiss Terraform Labs LawsuitLawyers representing the United States Securities and Exchange Commission (SEC) have responded to a motion to dismiss the lawsuit filed by Dentons, the lawyers representing Singapore-based Terraform Labs and its Founder Do Kwon.Photo by Miguel Á. Padriñán on PexelsCourt filingAccording to its arguments, set out in a court filing lodged to the District Court of the Southern District of New York on Thursday, the SEC’s counsel claims that the additional documents provided by Dentons lack sufficient grounds for dismissing the case.It claims that the internal SEC emails presented by Dentons are irrelevant to the current lawsuit. The SEC asserts that the parameters of an “investment contract” are clearly defined by the Howey test and argue that TerraUSD ($UST) should be classified as a security.The reliance by US regulators on the Howey test, a legal test case that implicated citrus grove contracts that date back to 1946, has proven to be controversial. Naturally, there could have been no consideration of the digital innovation that digital assets present today almost eighty years ago. Notwithstanding that, the SEC maintains that the principle factors of what constitutes an investment contract are covered by the case regardless.During the court hearing held on June 15, Dentons submitted supplementary documents to strengthen their motion to dismiss the lawsuit. The primary focus of the hearing was to determine whether the digital assets developed by Terraform Labs should be categorized as securities based on the criteria of an “investment contract.”Dentons maintains that the algorithmic stablecoin, $UST, should not be considered a security and emphasizes its practical purpose rather than its classification as an investment contract. To support their motion, Dentons included additional documents such as the US House Financial Services Committee hearing on digital asset regulation and stablecoin issuance, the SEC’s request for a restraining order against Binance.US, and the Hinman emails from the SEC vs. Ripple lawsuit.Judge to decideThe defense lawyers highlighted what they perceive as a “regulatory gap” in classifying crypto assets as securities, particularly as the US Congress engages in discussions about regulatory frameworks for digital assets and stablecoin issuance. Furthermore, they argued that the SEC is exceeding the scope of securities laws and relying on internal emails related to “investment contracts” to determine the security status.A decision on the motion to dismiss will be arrived at by July 14. Judge Jed Rakoff, who is presiding over the case, will be responsible for that, once he’s weighed up the merits of the arguments presented by both parties.It is noteworthy that Dentons has previously represented Kwon in challenging the US SEC’s subpoena during the investigation of the Mirror Protocol in 2021, as well as in a class-action lawsuit in the Singapore High Court in 2022. The law firm also provides representation to Terraform Labs in other legal matters.In a separate development, the Basic Court in Podgorica, Montenegro, has granted bail for Kwon and former Terra Chief Technology Officer Han Chang-joon. However, Kwon has recently been taken into custody for extradition in Montenegro while the court deliberates on South Korea’s extradition request for the Terra founder.As the legal proceedings continue, the outcome of the motion to dismiss will have significant implications for the ongoing dispute between Terraform Labs, Do Kwon, and the SEC.