Pakistan moves towards legalizing & regulating crypto

A Beijing-headquartered venture capital firm has invested $30 million in Hong Kong’s HashKey Exchange. That’s according to a report published by Bloomberg on Feb. 14, citing unnamed sources understood to be familiar with the matter. HashKey’s capital injection has come from Gaorong Ventures.  The Chinese VC firm was founded in 2014, initially known as Banyan Capital before rebranding as Gaorong Ventures in 2018. The VC firm focuses on early and growth-stage investments, with a specific interest in new technology.  Gaorong has 23 IPO portfolios on its books, together with 30 projects valued at in excess of $1 billion. It has been an early-stage investor in Chinese tech firms such as Chinese shopping platform Meituan and online retailer PDD Holdings.  Last year, the company participated in a funding round for Dongchedi, the car information and trading platform belonging to ByteDance, the parent company of TikTok.Photo by Towfiqu barbhuiya on UnsplashBeyond unicorn statusIn this instance, the funds were invested with HashKey Group weighing in with a post-money valuation in the region of $1.5 billion. That puts the company well beyond unicorn status, which it achieved in a previous $100 million funding round over a year ago. At that time, HashKey didn’t disclose the names of investors other than to state that they were “prominent institutional investors” and “leading Web3 institutions.” It’s understood that the round included both existing and new investors. Surging VC investment in crypto startups This latest investment comes amid a backdrop of a surge in venture capital investment into the crypto sector. Well-known American venture investors Sequoia Capital and Andreessen Horowitz (a16z) invested almost $1.2 billion in crypto projects last month.  In 2024, $13.7 billion was invested in crypto and blockchain startups by venture capital firms, marking a 28% increase on the previous year. In Q4 2024, the United States took first place, accounting for 46% of investment into startups across the market in general. Hong Kong weighed in with 17% in second place.HashKey is also playing its own role in crypto and blockchain startup investment. HashKey Exchange’s sister company, HashKey Capital, is an institutional asset manager that also invests in crypto startups. In recent weeks, the company has invested in SignalPlus, a crypto trading software firm focused on the Asian market, and Kelpr, a Cosmos (ATOM) ecosystem wallet project. More crypto VC investment in 2025In January, HashKey Capital CEO Deng Chao told Cointelegraph that he expected more VC capital investment in crypto startups in 2025. He stated: “As we enter into a supportive macro environment driven by stimulative US policies and the formalization of crypto regulatory frameworks, these macro tailwinds are set to drive more VC investments heading into 2025.” Meanwhile, the overarching HashKey Group is positive in its outlook with regard to the crypto and blockchain sector in 2025. Last month, it outlined that it expects Bitcoin and Ethereum to surge in price, the share of the market held by decentralized exchanges (DEXs) to increase, capital inflows into the sector from institutions to grow, the approval of more crypto ETFs and further development of layer-2 networks over the course of the year.

3AC Liquidators Pursue $1.3 Billion from FoundersLiquidators appointed for Three Arrows Capital (3AC), the failed Singaporean cryptocurrency hedge fund, are seeking to recover $1.3 billion from the fund’s co-founders.That’s according to an unidentified source cited by Bloomberg in a report published on Tuesday. The requested amount represents losses incurred by the founders during the months leading up to the firm’s collapse, according to a source familiar with the liquidators’ claims.Photo by Giorgio Trovato on UnsplashLiability allegationsDuring a meeting with the hedge fund’s creditors on Tuesday, the liquidators discussed the allegations against Three Arrows co-founders Su Zhu and Kyle Davies. The co-founders are accused of causing the hedge fund to accumulate significant leverage between May and June 2022, despite already suffering substantial losses from ill-fated Luna tokens and other investments.The liquidators argue that the firm was insolvent at that time. Consequently, they have taken legal action against Zhu and Davies in a British Virgin Islands court to recover the losses on behalf of the fund’s creditors.Lawyers representing Zhu and Davies have not yet responded to requests for comment. However, in a Twitter post last June, Zhu mentioned that their attempts to cooperate with the liquidators were met with resistance.Crypto failure catalystThe failure of Three Arrows Capital coincided with a downturn in the digital currency market, impacting platforms that had exposure to the hedge fund, including crypto lenders BlockFi and Voyager Digital. These platforms subsequently filed for bankruptcy in the weeks following the liquidation of the hedge fund.The liquidators’ allegations against the co-founders represent an escalation of actions taken against Zhu and Davies, whom they have accused of non-cooperation during the investigation. The liquidators, who are partners at the consulting and advisory firm Teneo, were appointed by a British Virgin Islands court last year to recover funds for Three Arrows Capital’s creditors, who are collectively owed approximately $3.3 billion.Earlier this month, the liquidators urged a New York bankruptcy judge to impose a daily fine of $10,000 on Davies. They argue that this substantial fine is warranted because he has failed to respond to a subpoena requesting business records and other relevant information.While the liquidators do not currently know the whereabouts of Davies or Zhu, court documents from earlier this month referenced a New York Times article reporting that Davies had traveled to Bali after the collapse of Three Arrows Capital.Restraining orderIn May Zhu had secured a restraining order against BitMEX Co-Founder Arthur Hayes in a Singaporean court. Hayes believes that he is owed $6 million by the 3AC co-founders. Despite significant adverse publicity within the crypto space, the 3AC co-founders have proceeded to do business within the industry.They’ve established a crypto claims trading platform, OPNX, and alongside that Dubai-based business, they’ve also established a new venture capital fund, 3AC Ventures.The Dubai regulator, the Virtual Assets Regulatory Authority (VARA), has reprimanded OPNX and the business's founders for operating an unregistered digital assets business within the territory.

Axie Infinity Teams Up with CyberKongz in Blockchain Gaming RevivalIn a bid to reinvigorate the world of blockchain gaming, Sky Mavis, the company behind the groundbreaking play-to-earn (P2E) blockchain game Axie Infinity, has announced an exciting partnership with CyberKongz, an Ethereum-based non-fungible token (NFT) collection.Together, they are set to develop a more comprehensive gaming ecosystem for the Ronin blockchain. Sky Mavis originated in Vietnam and came to prominence for developing the first major breakthrough for blockchain gaming within the crypto space. The company’s ties with Vietnam continue although it has since established its headquarters in Singapore.While the announcement, made via a blog post published on Tuesday, has sparked curiosity about a brand-new game on the horizon, specific details remain under wraps. Kathleen Osgood, Sky Mavis’ Head of Business Development, revealed that the upcoming game will be designed to be interoperable, seamlessly integrating with existing Axie Infinity experiences.Photo by Bestami Sarıkaya on UnsplashMoving to the Ronin blockchainBut the partnership goes beyond just creating a new game. It also includes the migration of CyberKongz’s popular Play & Kollect game, which is based on the Polygon blockchain. The move to the Ronin blockchain opens up new opportunities for CyberKongz to expand its user base and tap into Ronin’s thriving gaming community.Axie Infinity first captured the gaming world’s imagination in 2021 when it introduced the “play-to-earn” concept. This groundbreaking model allowed players to earn valuable cryptocurrency tokens while playing the game. It quickly became the leading project by sales volume in the burgeoning NFT space, according to data from CryptoSlam. On the other hand, CyberKongz also made headlines in 2021 when it impressively burned $4 million worth of Ether.However, since the NFT craze of 2021, interest in blockchain gaming has seen a decline, with some crypto-based games, such as Neopets, even transitioning to a non-crypto approach.Play-to-earn deficienciesSky Mavis Co-Founder, Aleksander Larsen, acknowledged earlier this year that the play-to-earn model needed improvement to thrive. He emphasized that games must prioritize fun and feature a robust economic system that enables players to earn rewards. Despite this, Kathleen Osgood remains optimistic that the blockchain gaming space can experience a revival through an experience that truly understands the motivations driving users towards Web3.According to Osgood, many teams in the space have merely attempted to replicate what worked in Web2, which may not be enough to drive explosive growth. Instead, she believes that attracting a massive audience lies in taking an innovative approach to leverage the unique offerings of Web3, appealing to users who are naturally drawn to its decentralized and rewarding nature.Gaming evolutionSky Mavis has started opening up its infrastructure to the Web3 ecosystem through the Ronin blockchain. By doing so, it hopes to create gaming communities that are not only more rewarding but also longer-lasting, fostering an environment of engagement and enthusiasm among players.As blockchain gaming continues to evolve, partnerships like the one between Sky Mavis and CyberKongz signal renewed efforts to iteratively improve on previous blockchain gaming models. With a new game on the horizon and the migration of CyberKongz to the Ronin blockchain, the stage is set for a new era of immersive and rewarding blockchain gaming experiences, building upon past efforts.