Busan signs MOU with BDX Consortium to launch Busan Digital Asset Exchange

Zero Two Enters Into JV to Develop First Middle East Mining OpZero Two, a digital assets development company based in Abu Dhabi in the United Arab Emirates (UAE), has partnered with leading North American crypto miner Marathon Digital in a joint venture that will result in the development and operation of the Middle East’s first large-scale crypto mining facility.Photo by Manuel Geissinger on PexelsInitial capacity of 250 MWIn a press release issued on Tuesday, Marathon Digital outlined that the venture is focused on accelerating the global digital economy while also supporting Abu Dhabi’s power grid.To progress the project, the two companies have formed the Abu Dhabi Global Markets JV Entity (AGDM Entity). Initially, two digital asset mining facilities, with a combined capacity of 250 MW, will be developed.One site, at Masdar City, Abu Dhabi, will account for 200 MW of that capacity. The remaining 50 MW capacity will be developed at a site located in the port area of Mina Zayed. The strategy of the firms is to exploit excess network energy in Abu Dhabi. The firms see this as a win/win as increasing the base load of the Abu Dhabi power grid will result in a more sustainable grid. The companies intend to supplement any use of non-sustainably produced energy with carbon offset certificates.80/20 equity splitThe two firms have agreed upon an 80%/20% equity split, with Zero Two being the lead investor. In the initial development period for the venture during 2023, both entities will contribute resources to the joint venture in proportion to the equity division, in the form of capital, equipment and infrastructure.Zero Two and Marathon had previously collaborated on a pilot project with the objective of determining the feasibility of building a large-scale facility. Air-cooled miners have not proven to be a success in hot arid climates like that of the Rub Al Khali Middle Eastern desert.The upshot of the pilot program was a determination that a custom-built immersion-cooled system would be feasible. Mining equipment for the facilities is already on order while construction at the two sites is underway. Both sites are expected to go online before the end of the year with a combined hashrate of 7 EH/s.Ahmed Al Hameli commented on the joint venture: “This alliance leverages Zero Two’s regional expertise, expansive relationships, and growing blockchain infrastructure development and operational capabilities, with Marathon’s technical prowess in developing digital asset sites and innovative mining technologies.These synergies create a powerful combination and lay the groundwork for the success of this pioneering project in the Middle East. Marathon shares our commitment to actively supporting Abu Dhabi’s power grid and developing global digital assets infrastructure. We look forward to working with them on this venture.”Jurisdictional arbitrageMarathon’s CEO Fred Thiel said that Zero Two’s regional relationships were an optimal compliment. It may be both a timely and shrewd move by Marathon to develop this project in the Middle East region. In recent weeks the Biden administration floated the idea of a 30% crypto mining tax. Crypto mining is a global endeavor.That type of additional overhead would make it very difficult for North American miners to remain viable. By opening up new working relationships in other regions, the company may be in a better position to pivot should North America and the firm’s Montana-based mining facility become unsustainable.

OKX Burns $244M $OKB in Record Exchange Token Supply CutSeychelles-headquartered OKX, the world’s second largest cryptocurrency exchange, has conducted its largest-ever burn of its exchange token, $OKB, according to on-chain data.Approximately 5.5 million OKB tokens, equivalent to around $244 million, were removed from circulation. This record-breaking burn represents a significant milestone for OKX, surpassing the previous burns conducted since the monthly program’s inception.The burn was valued at approximately $258 million when calculated based on a 90-day average price, as reported by OKX. Chinese reporter Colin Wu highlighted that this burn marked another significant milestone in terms of the value of OKB tokens burned.Taking to Twitter on Thursday, Wu wrote: “The OKX exchange carried out the 20th OKB repurchase and burning on June 8, with a total of about 5.5 million OKB, or about 244 million US dollars, which once again set a new record for the value of OKB burning. OKX previously stated that it will burn OKX according to the seasonal market and operating performance, but has not disclosed the specific rules.”Photo by Jens Mahnke on PexelsBuy-Back & Burn program$OKB is described by OKX as a “global utility token issued by the OKX Blockchain Foundation,” offering holders various benefits such as discounts and exclusive access. The global exchange initiated the first Buy-Back & Burn program in May 2019. Since then, it has burned a total of 64,042,314.70 tokens as part of that ongoing burning process. Despite this significant development, the price of OKB has remained relatively stable, experiencing a slight increase of 0.29% on OKX. At the time of publication, the token was trading at a unit price of $44.97.Exchange token concernExchange tokens have recently garnered attention following the United States Securities and Exchange Commission’s (SEC) lawsuit against global crypto exchange Binance. The SEC has levied charges related to the sale of unregistered securities, resulting in a steep decline of nearly 15% in the value of Binance’s exchange token, BNB, over the past week.That scrutiny is likely to have followed the collapse of Bahamas-based cryptocurrency exchange FTX in November. At that time, it became apparent that the exchange was using its exchange token, $FTT, to prop up the business. FTX had issued $FTT tokens and used them as collateral, a dangerous act given that exchange tokens have no real-world asset backing and limited token utility.As the crypto market continues to face regulatory scrutiny and legal challenges, the burn of $OKB by OKX stands as a noteworthy event within the industry. The burn not only reduces the supply of $OKB tokens but also underscores OKX’s commitment to managing and enhancing the value of its exchange token. Market participants will undoubtedly monitor the implications of this burn and how it may influence OKB’s future performance in the evolving cryptocurrency landscape.Exchanges like OKX are likely to carefully manage the supply levels of exchange tokens, given market perceptions in relation to the extent of the utility of such tokens, the scrutiny of regulators, and the problems caused in over-extending supply in the case of other exchanges in the past.

Korean Financial Authority Installs Report Center to Counter Crypto ScamsThe Korean Financial Supervisory Service (FSS) announced today that it has installed a dedicated report center aimed at combating investment fraud related to virtual assets. From June 1 through to the end of this year, the report center will run a reporting campaign.Photo by Katrin Hauf on UnsplashSurge in crypto fraud casesWhile the National Assembly is working on the legislation of the Virtual Asset User Protection Bill, there has been a surge in fraudulent activities exploiting regulatory loopholes. According to the FSS, the number of reported cases of crypto fraudulent activities in Korea surged by 67.2% last year, reaching 199, compared to the previous year’s 119.In a proactive response to this rising concern, the FSS has set up a report center, designed to staunch the escalating tide of fraud.Coordinated efforts against financial fraudUnder the guidance of the Anti-Financial Fraud Office, the report center will operate collaboratively with other relevant departments, such as the Consumer Finance Department and the Asset Management Examination Department. Reports can be filed either via landline or through the FSS website.Swift actions on detected fraudAs part of its policy, the FSS will swiftly inform investigative agencies, like the prosecutors’ office, if an issue raised via the report center is deemed severe or contains specific facts that necessitate further scrutiny.The financial watchdog emphasized its commitment to issuing financial consumer warnings whenever potential fraud is detected and poses a risk to investors. This strategy is designed to safeguard investors and impede the spread of damages.