Blockchain game performance is key to Wemade’s future success

FTX Opts Out of Plan to Sell off FTX JapanThe FTX Debtor that was brought in to manage the bankrupt estate of the failed FTX cryptocurrency exchange has decided to not follow through with a plan to sell off the Japanese business.That’s according to a report by Nikkei on Thursday. In November 2022 a new management team was brought in to restructure the FTX business immediately following the business having filed for Chapter 11 bankruptcy in the courts in Delaware in the United States.Photo by Jezael Melgoza on UnsplashOptimizing value for creditorsThe original plan was to look to sell off subsidiary companies within the group such as FTX Japan, FTX Turkey, and FTX Europe. Those plans have now at the very least been delayed. Nikkei cited an FTX executive who claimed that it’s not so much that plans have been delayed but rather that the FTX Debtor has identified another approach that will likely optimize value for creditors.“They hope to increase the price by selling the entire group, rather than selling subsidiaries in various regions,” Nikkei’s FTX source stated.Rebooting the exchangeThe response from creditors to this news has been largely positive. While the notion of a rebooted FTX business has proven to be controversial within the crypto space, most creditors recognize that the business can provide much greater value for them if it is restarted internationally.Global investment banking firm Perella Weinberg Partners (PWP) was brought in by the FTX Debtor in November 2022 to carry out a strategic review of the assets held by the FTX group. In a recent bankruptcy court hearing in Delaware, one of its partners stated that they are currently in the process of inviting bids from interested parties.At that time, PWP indicated that the Debtor was looking to revive the international FTX business. That would likely mean an entity headquartered outside the United States. It remains to be seen what will happen in the case of the FTX US business. Due to an unwelcoming regulatory approach in the US right now, setting up a crypto business there is seen as having additional risk factors.Asian interestA number of weeks ago, the Debtor filed a list of interested parties. The list included a number of high-profile Asian companies, although it’s not clear if their interest lies in the business in its entirety or specific FTX assets.Among them was Japanese telecoms firm Docomo. Tokyo-headquartered global financial services company Nomura also featured. Japan’s largest Ecommerce company, Rakuten, also signed a letter of intent in expressing its interest. FTX Japan had attracted 41 bidders. It’s being speculated that some of these Japanese entities will now bid on the entire business or join consortiums who will do so.FTX Japan solventCreditors of FTX Japan have fared much better than their international counterparts. In the wake of the collapse of the Mt.Gox cryptocurrency exchange in 2014, the Japanese authorities set to work on providing greater protections for customers. As a consequence, FTX Japan was required to ring-fence customer funds. For that reason, Japanese customers have already been given access to their funds.In a recent exchange on Twitter, well-known American investor Mark Cuban pointed out that Japanese regulators had been successful in protecting FTX investors in Japan. Cuban made the point to former US Securities and Exchange Commission (SEC) regulator John Reed Stark, underscoring the failure of US regulators in doing so.

Malaysian Prime Minister Datuk Seri Anwar Ibrahim has said that Malaysian government agencies and the country’s central bank need to study blockchain and cryptocurrency from a policy perspective so as not to get left behind.Photo by Esmonde Yong on UnsplashConsidering major changesHis comments emerged alongside the news that Anwar had discussed digital finance policy matters with Abu Dhabi government officials and with Changpeng Zhao (CZ), the founder and former CEO of Binance. According to the New Straits Times, an English-language newspaper published in Malaysia, the Malaysian government is homing in on the establishment and adoption of a formal policy relative to digital assets and blockchain.  Anwar confirmed that discussions also related to “digital transformation, data centers and artificial intelligence (AI),” and that the demands that Malaysia now faces require the government to consider major changes. In discussion with local media, Anwar stated: "I proposed several months ago how our agencies, including security, treasury and Bank Negara study how Malaysia can explore this so we aren't left behind. Ensuring that is regulated could safeguard the people's interests and prevent leakages.” Crypto-friendly regulationsAnwar added that a “radical departure from the old ways” would be needed for Malaysia to remain competitive, emphasizing the need for the Southeast Asian country to keep up to speed through the application of crypto-friendly regulations. Addressing the pace of technological change, he stated: “This is an evolution which happens quickly and requires us to be equally fast. We feel that Malaysia should not be left behind while mired in an old financial system.” In moving towards setting out a clear policy relative to digital assets, the Malaysian prime minister is encouraged by his recent dialogue with United Arab Emirates (UAE) government officials. He said that they confirmed that they feel they can forge close cooperation with Malaysia on the matter. Anwar added:“We need to discuss this in detail, leave behind the old business model and give meaning to this digital finance policy.” Taking to the X social media platform, Binance’s CZ described the nature of his discussion with the Malaysian prime minister, stating: “The discussions were not about Binance but about the crypto industry and Malaysia, including regulations, policies, risks, and collaborations between industries and across national borders. Forward!” A pseudonymous crypto investor and programmer, @darren_com_my, responded to CZ’s tweet to explain that the Malaysian government provides support to the digital assets industry via government agencies, but that, on the other hand, it has blacklisted a number of exchanges such as HTX (formerly Huobi) and Binance.  The local regulator has issued licenses to six virtual asset service providers. In recent weeks, Malaysia’s Securities Commission has taken action against global exchange Bybit and crypto app Atomic Wallet, prohibiting them from trading within the jurisdiction due to both companies not having obtained the required licensing.

Meme coin project Floki Inu has implemented restrictions on users in Hong Kong from accessing its staking programs following a warning from the Hong Kong Securities and Futures Commission (SFC). Last week, the regulatory body labeled Floki's staking initiatives as "suspicious investment products'' and urged caution among investors. On Jan. 26, it specifically cautioned Hong Kong users about the Floki and TokenFi staking programs, emphasizing the promised annualized returns ranging from 30% to over 100%. The Commission expressed concern over investment products that make claims of returns deemed "too good to be true."Photo by Jie Yeu Teoh on UnsplashStaking program access block in Hong KongResponding to the SFC's warning, Floki Inu took proactive steps to prevent users in Hong Kong from participating in its staking programs. In an official blog post which was published on Tuesday, the project's team announced the implementation of "practical measures" to block Hong Kong-based users from joining the staking programs. Additionally, prominent warnings have been placed on the Floki and TokenFi staking websites, clearly stating the ineligibility of Hong Kong users to participate. The SFC emphasized that neither of the mentioned investment products holds authorization in Hong Kong, warning that unauthorized schemes provide limited to no protection under its Securities and Futures Ordinance (SFO). Investors engaging in such unauthorized schemes may face the risk of losing their entire investments. Addressing regulatory concernsFloki Inu's team has responded to the regulatory concerns by actively collaborating with legal advisers to address potential regulatory issues associated with the staking project. The team committed to responsible community practices, while affirming its dedication to implementing measures to prevent Hong Kong users from participating in the staking program until regulatory concerns are resolved. As of Jan. 29, there is no record of Hong Kong users joining the staking programs, according to the Floki team. Furthermore, the team revealed that offline marketing activities in Hong Kong had already been halted before the project's launch in December 2023. Clarifying high yieldAddressing the SFC's primary concern regarding the high annual percentage yield (APY), the Floki team provided explanations. They clarified that the rewards are subject to volatility influenced by market dynamics and the value of staking rewards may fluctuate based on the market valuation of the token rewards. The team attributed the high APY for its staking programs to the allocation of the majority of TokenFi's token supply to token stakers, highlighting that the project had not raised venture capital funds or conducted a presale. They noted that market forces beyond their control had significantly increased the TokenFi price from its initial market cap at launch. In response to potential user confusion, the Floki team emphasized the complete decentralization of the staking programs for Floki and TokenFi, assuring users of a clear understanding of how the programs operate. They concluded by expressing their commitment to ongoing collaboration with regulatory bodies to ensure compliance and foster a responsible and transparent environment for users. Community response has been largely positive with one crypto influencer claiming: “You will not find a more legit team in #Crypto than $FLOKI. I’ve known about them for years and everyday they continue to handle themselves in the most informative, structured, and professional way.”