Euroclear takes stake in Marketnode entering Asian market

Korean crypto firms relocating for cheaper rent amid prolonged crypto winterAs the prolonged crypto winter continues to affect the industry, blockchain and cryptocurrency firms in South Korea are under pressure to economize. Faced with a deteriorating business and investment climate, numerous companies are reducing their office space and relocating to areas with cheaper rent, according to a Wednesday (local time) report by local media outlet Bizwatch.Photo by Nastuh Abootalebi on UnsplashReducing operating costsBizwatch reported, citing industry sources, that Parameta (previously Iconloop), a blockchain enterprise, has relocated its headquarters from Seoul’s upscale Signature Towers to a more economical shared office space this year. This strategic move is interpreted as an effort to slash operating costs by choosing a location with significantly lower rental expenses. A Parameta representative confirmed that the relocation was part of measures to reduce costs.Binance-backed Streami, which runs the Gopax cryptocurrency exchange, is also reportedly contemplating an office relocation after downsizing its staff. The company’s workforce has dwindled from over 100 employees earlier in the year to approximately 60 by September. A Streami spokesperson has indicated that they have yet to reach a decision regarding the relocation. Streami’s situation is particularly significant due to its ongoing challenges in securing approval from financial regulators for changes to its executive representatives since Binance acquired a majority stake. Recently, Streami appointed a new CEO from the domestic tech firm CityLabs, which has also purchased an 8.55% stake in Streami and intends to further increase its investment in the exchange operator.Similarly, Korea Digital Exchange, the operator of cryptocurrency-only exchange Flybit, has listed for sale one of its two floors of office space in Seoul’s Seocho district. This move comes nearly a year and eight months after the company expanded into the current premises.Changes in workforce sizesBefore the crypto winter, when the Korean crypto market witnessed unprecedented growth, numerous companies expanded their offices to make room for the growing workforce, bolstered by rising revenues. For instance, Dunamu, which runs Upbit — Korea’s largest crypto exchange — garnered attention for acquiring pricey real estate in Gangnam to construct a new office.However, the boom was short-lived. With the onset of the crypto downturn, numerous companies found themselves having to shut down. Blockchain technology firms are facing similar challenges, with many developers steering away from the sector due to persisting market instability. For many of these firms, the workforce has diminished as they’ve either undergone restructuring or struggled to recruit replacements for departing employees.An industry insider remarked that reducing operating costs is a logical step for companies facing a lack of investment and revenue. They noted that this only applies to those resilient enough to weather the hardship, adding that many cryptocurrency-only exchanges are likely to shut down completely in these challenging conditions.In fact, Cashierest, a crypto-only exchange, recently announced the cease of operations. Concerns about the company had been growing after staff layoffs and the departure of its CEO in July. A thorough analysis by the Financial Intelligence Unit (FIU) of the Financial Services Commission (FSC) found that, of the 21 Korean crypto-only exchanges, 18 are operating with negative shareholder equity as of the first half of this year. Moreover, 10 did not earn any revenue from transaction fees during the same period.Crypto-only exchanges typically see lower trading volumes as they cannot facilitate trades in Korean won. In South Korea, only five trading platforms — Upbit, Bithumb, Coinone, Korbit and Gopax — are officially registered with the financial regulator to conduct fiat-to-crypto transactions.

Huobi Rebrands as HTX to Mark Tenth AnniversaryIn a move marking its 10th anniversary, Seychelles-registered cryptocurrency exchange Huobi has decided to rebrand itself as “HTX.”Rebranding confusionIn crypto-centric discussions on social media, the decision has sparked controversy and raised eyebrows, drawing comparisons to the now-defunct exchange FTX.The announcement of Huobi’s rebranding to HTX was made on Wednesday. According to the company, the new name is a combination of symbolic elements. The “H” represents the first letter of “Huobi,” the “T” is a nod to Justin Sun’s blockchain project Tron, and the “X” stands for the exchange itself.Alternatively, some interpret “HT” as a reference to the exchange’s native Huobi Token (HT), while the “X” symbolizes the Roman numeral for 10, commemorating the company’s 10th anniversary. Huobi’s new slogan accompanying the rebranding is “HTX, Just Trade It.”Before the official announcement, Huobi changed its social media account names to align with the new brand. The exchange’s Twitter handle is now HTX_Global, and its official Telegram group is named “HTXglobalofficial.” As of the time of writing, the website domain still retains the original Huobi name.Photo by Kate Trysh on UnsplashFTX comparisonsThe rebrand immediately drew attention on social media. In one of a range of similar comments, a user lined up the Huobi logo next to that of FTX and wrote: “I think I’ve seen this movie before.” Although a matter of speculation, there has been some chatter on social media in recent weeks, questioning the health of the Huobi business. It didn’t help the firm that in August, rumors swirled that some of the company’s executives were subject to an investigation by Chinese authorities.This isn’t the first time a crypto-related entity has seemingly borrowed part of its name from FTX. In January, the founders of the collapsed cryptocurrency hedge fund Three Arrows Capital announced plans to raise $25 million for a proposed crypto exchange called “GTX.” Huobi’s rebrand has amused some FTX creditors who had faced criticism from some in the crypto sector for wanting to resurrect the business while maintaining the same branding.In early August, Huobi refuted reports suggesting insolvency and the arrest of senior executives by Chinese authorities. Additionally, the exchange had previously been ordered to cease operations in Malaysia following regulatory actions by the country’s securities regulator in May.International marketing effortHuobi’s rebranding to HTX has undoubtedly stirred debate and curiosity within the cryptocurrency community. Justin Sun, an advisor to the project, stated at a media briefing at Token 2049 in Singapore that the HTX brand will be marketed towards Huobi’s international English-speaking users.Sun said: “It’s very hard for foreigners, Westerners, to pronounce ‘Huobi’… It doesn’t make any sense to them,” Sun said, explaining that the word Huobi means fire and coin in Chinese. “That’s why we rebranded as HTX for international branding.”As the crypto industry continues to evolve, it remains to be seen how this new identity will impact Huobi’s reputation and standing in the market. Regardless, the crypto world is known for its surprises, and Huobi’s marketing move serves as a reminder that the industry is in constant flux, filled with unexpected developments.

Upbit Operator Dunamu Assists Indebted Youths in Rebuilding Credit ScoresDunamu, the operator of South Korean cryptocurrency exchange Upbit, has announced an initiative aimed at helping indebted youths rebuild their credit scores. The company will accept applications from July 19 through August 20. Eligible individuals must be residents of Seoul, Gyeonggi-do, or Incheon, aged between 19 and 39, and have successfully completed debt workout arrangements.Photo by Towfiqu barbhuiya on UnsplashGiving backThe project, called Dunamu Next Dream, is part of the company’s efforts to give back to the community by using revenue generated from Luna Classic (LUNC) transaction fees. In September of last year, Dunamu committed to allocating the LUNC transaction fee profits of 239.13025970 BTC to investor protection. After consulting with an external advisory committee, the exchange operator decided to donate around 3 billion KRW ($2.3 million) to public organizations and utilize the remaining funds to provide financial and credit support.To implement the Dunamu Next Dream project, Dunamu entered into a memorandum of understanding (MOU) with the Credit Counseling and Recovery Service (CCRS) and the Social Solidarity Bank (SSB) in April.Two componentsThe project consists of two main components: financial consulting and emergency loans. The initial focus will be on financial consulting, which includes support for living expenses. The aim is to assist indebted youths in developing healthier financial habits. Financial experts will provide six sessions of financial consulting, addressing their recurring indebtedness and fostering financial independence. Additionally, each individual will be granted a living expense of 1.2 million KRW ($950) to ensure they can meet timely interest payments.Dunamu will collaborate with the CCRS and the SSB to conduct a comprehensive review of applicants and select 150 deserving beneficiaries. The selection process will involve thorough evaluation through paper screening and interviews, allowing applicants to demonstrate their dedication and financial responsibility.The second component of the project, emergency lending, will launch in September. It aims to provide interest-free loans of up to 2.5 million KRW to individuals facing immediate needs, such as medical fees.Dunamu CEO Lee Sirgoo highlighted the importance of this project, emphasizing the challenges faced by young people who are the future leaders of society. The economic struggles they encounter can have significant repercussions for society as a whole. Accumulating debts has made it difficult for young individuals to achieve financial stability and advance their careers. Lee stressed the need for public awareness regarding this issue, as it is crucial for young people to establish themselves promptly within society.