Central Asian republics work towards crypto bank & crypto hub development

Laser Digital, the crypto arm of Nomura, Japan’s largest investment bank and brokerage group, in collaboration with WebN Group, has unveiled Libre, an institutional Web3 protocol powered by Polygon technology. WebN Group is an incubation hub for fintech and Web3 innovators. It’s backed by Laser Digital and Alan Howard, the co-founder of alternative investment management platform, Brevan Howard.Photo by Shubham's Web3 on UnsplashFocusing on asset tokenizationLibre leverages asset tokenization and smart contracts, aiming for regulatory-compliant issuance and management of alternative investments. According to a statement, the protocol is built using the Polygon Chain Development Kit (CDK), facilitating the development of purpose-built, zero knowledge-powered Layer 2 blockchains on Ethereum. Dr. Avtar Sehra, the founder of Libre, has been actively involved in real-world asset (RWA) tokenization since 2014. His previous experience includes founding the UK FCA-licensed tokenization platform Nivaura. The protocol's applications extend beyond primary issuance services, with additional use cases such as collateralized lending and automated rebalancing of private investment portfolios. In a press release which was published on Wednesday, Sehra commented on the project:”While our MVP objective is to increase AUM by launching the primary issuance service and driving distributor integrations, we are also working closely with our partners and clients on our 2024 product roadmap, which includes collateralized lending and automated portfolio rebalancing — building the future of wealth APIs.” Libre's anticipated launch is in Q1 2024, with investment management firms Brevan Howard and Hamilton Lane poised to become the first issuers on the platform. The industry has shown growing interest in leveraging blockchain technology to revolutionize the distribution and accessibility of alternative asset funds. Making blockchains ‘mainstay financial rails’Polygon’s Indian co-founder Sandeep Nailwal outlined on a social media post on Wednesday the relevance of a dedicated network relative to real-world assets. He wrote:”RWAs have the potential to make blockchains mainstay financial rails at a global scale. I have always believed that RWAs would need their own regulated, compliant environment. Public shared chains like Ethereum mainnet, or L2 mainnets are intrinsically permissionless and not the perfect for many types of RWAs.” With that outlook in mind, Nailwal believes that Libre showcases the potential of blockchain technology to unlock new opportunities for investors globally. Natalie Smith, Head of Strategy at Brevan Howard, said, “the tokenization of funds allows us to offer investors a new way to access our strategies, providing them with optionality, and further develops our platform to serve client needs.” Competing projectsLibre is not the sole project exploring the tokenization of funds. In November, JPMorgan's Onyx collaborated with asset and wealth managers WisdomTree and Apollo, along with various blockchain technology providers, on a blockchain interoperability proof-of-concept for investment portfolio management. SC Ventures, the Singapore-based investment and innovation arm of Standard Chartered, also entered the tokenization space by launching Libeara, its tokenization platform. The SGD Delta Fund, a tokenized Singapore-dollar government bond fund, recently received an AA rating from Moody's after becoming the first fund to use Libeara. The first tokenization platforms have tended to be run on private blockchains. It will be interesting to watch the development of Libre as it’s the first time a financial institution-focused layer 2 network is being built, with final settlement on the Ethereum blockchain. 

$100M Pyramid Scheme Linked to Prominent Chinese Filecoin ProjectA courtroom showdown currently playing out in the People’s Court of Pingnan County in northeastern Fujian province in China is laying bare an intricate pyramid scheme entwined with one of China’s flagship ventures in the Filecoin ecosystem.The lawsuit thrusts five defendants into the spotlight, alleging their orchestration of an expansive pyramid scheme under the guise of their enterprise, Shenzhen Space-Time Cloud Company. The operation is purported to have siphoned off millions of dollars, leaving in its wake a trail of financial wreckage.Photo by Traxer on UnsplashAggressive project marketingAccording to a local media report published on Monday, the saga began in June 2018 when Lai Mouhang and Lai Moujun established the Space-Time Cloud Company. Subsequently, co-defendants Hu and Liang joined the ranks in the following months. However, it wasn’t until September 2019 that Lai Mouhang escalated the company’s operations, leveraging the ipfs.cn domain to aggressively market and peddle investments linked to distributed storage technology and Filecoin’s intricate economic model.Central to Filecoin’s model is its block reward system, where miners validating new blocks receive Filecoin tokens (FIL) as a reward. In a stunning revelation, the prosecution claims that Lai Mouhang and his accomplices crafted a scheme mirroring this economic structure.Their brainchild, the filpool.io platform, served as a conduit for joint mining, masquerading as a storage server vending operation for FIL mining. This platform, intrinsically linked to Space-Time Cloud Company, allegedly formed the epicenter of the defendants’ fraudulent maneuvers.Almost 60,000 usersThe gravity of the scheme becomes evident when considering the staggering numbers: a reported 57,122 members registered on the filpool.io platform and an additional 143 partners on the bpool.io platform, a sibling project of Space-Time Cloud Company. These platforms collectively amassed a jaw-dropping RMB 607 million ($83 million), alongside RMB 62 million in diverse cryptocurrencies.The modus operandi of the defendants was rooted in enticing participants with rosy prospects of exponential profits. By acquiring a minimum of 8 terabytes of cloud computing power, individuals could attain bronze membership status or higher, unlocking the ability to further recruit participants. Unsurprisingly, the magnitude of returns correlated directly with the size of investments and the recruitment spree — classic hallmarks of a pyramid scheme.The prosecution contends that the defendants exploited these platforms as bait for participants, perpetuating the myth of high returns. This alleged deception led to substantial financial losses for many unsuspecting victims. Furthermore, these actions purportedly sowed discord and upheaval in both economic and social spheres, potentially transgressing criminal law boundaries.As the investigation into this convoluted case unfurls, its implications resonate far beyond China’s territorial confines. The intertwining of cryptocurrency, blockchain, and pyramid schemes punctuates the ever-evolving narrative of financial crime. The case highlights the importance of vigilance and regulatory scrutiny in an innovative industry that has more than its fair share of bad actors.

Philippine Police Warns of Play-To-Earn DangersThe play-to-earn gaming trend has not only captured the enthusiasm of gamers but has also raised concerns among authorities, prompting a closer examination of the risks inherent in cryptocurrency gaming schemes. The Philippine National Police Anti-Cybercrime Group (PNP ACG) has issued a warning about the potential dangers associated with these enticing gaming models, shedding light on some of the hidden complexities and vulnerabilities within this developing ecosystem.Play-to-earn gaming takes on added significance in the Philippines as it was in the southeast Asian country that the first breakthrough play-to-earn game, Axie Infinity, took hold during the pandemic. Axie Infinity is a metaverse game crafted on the Ethereum blockchain, inspired by the world of Pokemon. Under its play-to-earn model, players are required to acquire a minimum of three Axie characters to embark on their gaming journey.Photo by iSawRed on UnsplashHighlighting game costsHowever, the PNP ACG has raised a red flag concerning the financial commitment demanded from players, with an upfront investment potentially reaching $300. This stands in stark contrast to the traditional gaming industry, where user expenditures tend to average around $100.The PNP ACG’s warning echoes the ethos of cautious investment practices in the crypto sphere. While the security of the underlying blockchain technology may be robust, the operational components of the gaming engines and marketplaces require careful scrutiny. By implication, just as investors are advised to thoroughly research ecosystems and founders before engaging in cryptocurrency investments, gamers must exercise the same due diligence before diving into play-to-earn platforms.BCP partnershipAs part of a broader movement towards fostering the adoption of Web3 technologies in the Philippines, the Department of Information and Communications Technology (DICT) has partnered with the Blockchain Council of the Philippines (BCP). This alliance aims to harness the potential of blockchain startups to serve the public good, reflecting a commitment to sustainable growth and innovation within the sector.It is essential to emphasize that the focus on Axie Infinity doesn’t go so far as to label it a scam. Rather, it spotlights the larger concerns surrounding market volatility and accessibility barriers encountered within certain play-to-earn crypto games. The history of Axie Infinity itself underscores the vulnerabilities faced by such platforms, as exemplified by a significant hack that led to the loss of $622 million in user funds.Iterative improvementAs the gaming and crypto industries continue to intertwine, the path ahead involves careful navigation and a shared responsibility among gamers, developers, and authorities to ensure a secure and enriching experience for all stakeholders. In the overall scheme of things, the advent of Axie Infinity, and the play-to-earn model more broadly, has been a positive development when viewed as an iterative step towards the use of blockchain in gaming.Many in the blockchain gaming space have since expressed the view that the play-to-earn model can be improved upon for the benefit of gamers and developers alike. Blockchain-based gaming developers are now concentrating on engaging gameplay rather than trying to lead primarily with an emphasis on earning through playing.