Hong Kong's VSFG eyes spot ether ETF application in Q2

Korean Metaverse Platforms Face Uncertain Future Amidst Mounting ChallengesSeveral Korean metaverse platforms, which had promised to usher in a new world bridging online and offline experiences, have found themselves in premature jeopardy, according to industry observations. Various companies that had earmarked metaverse platforms as their future growth driver failed to establish an effective revenue structure to bring this to fruition, leading to speculation that there are limits to successfully developing this branch of business.Photo by GuerrillaBuzz on UnsplashDwindling popularityMetaverse platforms first garnered significant attention during the COVID-19 pandemic, but interest has waned since then — in Google Trends, the keyword “metaverse” has been showing a clear decline since reaching its peak in November of 2021.The actual usage rates of such platforms have also been low. According to the Korea Information Society Development Institute, last year’s usage rate was a mere 4.2%, and some local government-funded platforms had only about 200 daily visitors despite considerable budget sizes.As a result, companies struggling with financial difficulties have opted to downsize their operations, strategizing for mid- to long-term approaches to improving efficiency until an era of metaverse popularization arrives.Roadblocks for small and large companies alikeAccording to industry sources on Friday, platforms like Cytown, developed by social networking space Cyworld, have shut down after just a year, while Kakao Games’ collaborative metaverse venture Colorverse and Com2us Group’s Com2Verse have entered into restructuring phases.Com2verse’s decision comes just two months after the official release of its all-in-one metaverse platform. The company plans to provide three months’ salary to those applying for voluntary resignation and prioritize hiring new faces when expanding the workforce in the future. The scale of voluntary resignation has not been disclosed.The restructuring process will affect all employees except those involved in core functions such as development and services. Employees opting for voluntary resignation will also have the option to transfer to other subsidiaries under Com2us Group.Founded in April of last year, Com2Verse recorded an operating loss of KRW 8.3 billion (approximately $6.2 million) in the first half of this year. Its parent company, Com2us, also recorded consecutive deficits, starting with an operating loss of KRW 19.4 billion in last year’s fourth quarter, followed by losses of KRW 14.8 billion and KRW 5.6 billion in this year’s first and second quarters, respectively. Despite maintaining a stable revenue in its game business, the company faced challenges due to the poor performance of its subsidiary companies and the mounting labor costs needed for accelerating new business endeavors.Com2us has thus determined that it would be difficult to boost revenue and improve cost structure in the short term. Hence, the company chose to restructure its organization while retaining key personnel working under the Convention Center, an event platform on Com2Verse, which is expected to drive the business forward.Com2us emphasized that its commitment to the metaverse market remains unchanged, stating, “Given the current situation of local and international metaverse industries, we believe that significant time and investment will always be necessary. Therefore, we have decided that choosing our priorities and focusing on them is the best way to respond to long-term market changes.”Similarly, Kakao Entertainment had signed a memorandum of understanding (MOU) last year with Neptune, a game developer in which Kakao Games owns a 35% share, and Colorverse, a metaverse company in which Neptune owns a 44% share, to jointly work on an open three-dimensional metaverse platform also called Colorverse. However, Colorverse has also undergone restructuring since earlier this year to reduce its workforce after it posted an operating loss of KRW 11.5 billion last year.Industry analysts have attributed Colorverse’s business slump to the departure of Namkoong Whon, the former CEO who had pinned his hopes on a metaverse as one of the conglomerate’s promising enterprises.Korean game developer NCSOFT had also said that it is building its own metaverse platform dubbed “Miniverse,” which allows various types of online gatherings from community meetups and study groups to remote classes and work. The company had even conducted a welcome presentation for new employees through Miniverse, but news regarding the project has been scant since then.As these major corporations have been struggling to overcome such hurdles, smaller startups have undoubtedly been facing increasingly dire circumstances as well, with some even resorting to unexpected suspensions of service operations without prior notice. Others have promoted themselves as metaverse platforms and issued virtual assets that can be used within the virtual world, but in many cases, these assets have proven to be of little benefit or use.“A revenue structure that can generate income from metaverse platforms has not yet been established. With the gradual decline in remote education, meetings, and telecommuting after the easing of the pandemic, the value of metaverse platforms has also decreased. Also, factors like increased information technology (IT) labor costs and the overall state of the global economy are influencing business momentum,” an industry insider commented.

Lillius and Crypto.com Team Up for NFT Collaboration and Global MarketingLillius, a Korean artificial intelligence (AI) sports challenge app, has signed a business deal with global crypto trading platform Crypto.com to collaborate on a non-fungible token (NFT) project and global marketing strategies. The two companies will work together to promote Lillius’ platform mainly by issuing and distributing NFT rewards within the app.Elevating fitness with AILillius, set to launch its open beta service this month, is a mobile app where users can participate in exercise challenges that use AI motion detection technology to analyze their form while doing the movements. After they complete a given challenge, they can receive rewards based on the score they earn. Some of these challenges feature lessons from Korean Olympic medalists like taekwondo athlete Lee Dae-hoon, fencer Nam Hyun-hee, and wrestler Jung Ji-hyun.Photo by Huckster on UnsplashTo grow its platform, Lillius has also minted NFT figurines for iconic athletes such as table tennis player Ryu Seung-min, swimmer Park Tae-hwan, and archer Joo Hyun-jung, among others.Unlocking global Web3 sports experiencesUnder the new partnership, Crypto.com will be responsible for leveraging its global infrastructure to support Lillius’ broader global expansion and various marketing endeavors.“Our partnership with Crypto.com will expand access to Web3-based sports experiences for users around the world and serve as an important milestone in advancing our Web3 sports ecosystem,” said Julia Kim, CEO of Lillius. “We plan to enhance Lillius’ global competitiveness and lead the Web3 sports industry.”Crypto.com has consistently been participating in sports-related marketing projects and investing in such businesses as well. In 2021, it signed a naming rights agreement to change the name of the world-renowned sports and entertainment arena, the Staples Center, to Crypto.com Arena. It also became the first virtual asset platform to sponsor the 2022 FIFA Qatar World Cup. Furthermore, the platform has worked with some of the world’s biggest sports associations such as the UFC and Paris Saint-Germain F.C., playing a key role in bridging the gap between blockchain and sports. Its latest business agreement with Lillius comes as part of more concentrated efforts to enter the Korean market.“Through this partnership, we will cultivate the merging of sports and blockchain technology by providing Crypto.com’s 80 million users with a unique sports-related consumer experience,” said Patrick Yoon, CEO of Crypto.com Korea.

Thailand’s Incoming Prime Minister Signals Crypto EmbraceIn a recent parliamentary decision on August 22, real estate magnate Srettha Thavisin emerged as Thailand’s forthcoming Prime Minister. Thavisin, acclaimed for his prior role as the CEO of Sansiri — one of Thailand’s major real estate developers — has a history entwined with the cryptocurrency sector, hinting at potential ramifications for the nation’s crypto landscape.Photo by Markus Winkler on UnsplashParliamentary selection winThe appointment came under the banner of the Pheu Thai Party, with Thavisin securing 482 votes out of 747 in the parliamentary endorsement.Thavisin’s ascent to power could potentially herald a significant shift in Thailand’s approach to cryptocurrencies, leveraging his involvement with Sansiri’s foray into the digital asset domain. Departing from his role as Sansiri’s CEO in April, Thavisin relinquished his 4.4% stake in the company, setting the stage for him to pursue a career in politics.Crypto firm investmentSansiri, under Thavisin’s leadership, undertook active participation in the country’s digital asset arena. Notably, in 2021, the company participated in a substantial $225 million fundraising round for XSpring Capital, a crypto-friendly investment management firm. This strategic partnership paved the way for XSpring to launch a fully integrated cryptocurrency trading platform in 2022, with aspirations to establish a presence among the top crypto exchange companies by 2025.Thavisin’s impact on the crypto sector goes beyond investment. His company also introduced the “SiriHub Token” via XSpring in 2022, presenting a real estate-backed initial coin offering (ICO) that extended 240 million tokens to the public. This duality of involvement from crypto firm investment to token issuance, demonstrates that the new Thai premier has not been afraid to get involved with crypto innovation at an early stage.Crypto airdrop proposalIt appears that Thavisin’s affinity for cryptocurrency transcends corporate endeavors, as his political affiliation with the Pheu Thai Party, which he joined in November 2022, introduced a novel proposition. The party proposed disbursing 10,000 Thai baht (approximately $300) to citizens, executed through digital currency transactions. The synergy between his cryptocurrency background and this proposal raises questions about the potential influence of his past on Thailand’s future crypto policies.As Thavisin’s administration prepares to assume office by the end of September, the extent to which his crypto engagement shapes the nation’s policies remains a topic of speculation. However, the confluence of his real estate expertise and cryptocurrency ventures offers a unique blend of experiences that might foster innovative approaches.Notably, Thavisin’s journey isn’t the sole instance of Thailand’s government engaging with the crypto industry. Earlier in 2023, Thailand’s cabinet introduced tax breaks for companies issuing investment tokens. These measures, announced in March, aim to generate 128 billion baht ($3.7 billion) from investment token offerings over the next two years.Political importanceThavisin’s perceived embrace of cryptocurrency in Thailand comes at a time when crypto and blockchain innovation is being supported by political candidates in multiple jurisdictions. In the United States, the Republican Party is holding a debate on Wednesday between its eight candidates for the presidential nomination, with several of them being pro-crypto.On the Democratic Party side, Robert F. Kennedy is pro-bitcoin, having recently stated that bitcoin is an exercise in extending civil liberty. Meanwhile, in Argentina, Javier Milei, a libertarian pro-bitcoin candidate, topped the poll in the country’s recent presidential primary.