Four in 10 wealthy UAE investors hold crypto, survey finds

NVT Ratio Signals Overvalued BTCThe network value to transaction (NVT) ratio of Bitcoin, which has been staying at a high level since the beginning of the year, has signaled its overvaluation, according to Yonhap Infomax.However, some argue that this will not necessarily lead to a crypto winter, considering that the nature of Bitcoin as an asset has changed and there is no sign of overheating in other indicators.©Pexels/PixabayPrice and NVT ratio correlationYonhap Infomax found out that the correlation between the NVT ratio and the price of Bitcoin over the past six years is -0.35. A value of 1 represents a completely positive correlation, while a value of -1 represents a completely negative correlation.Extending this period to 2010 makes the correlation close to 0, but during the early years, NVT ratios showed high volatility, shooting up to four digits. Such a high volatility doesn’t suggest much correlation. Until 2021, there was a high correlation of up to -0.44.The NVT ratio is calculated by dividing the market cap by the transacted volume. Conceptually, it is similar to the price-to-earnings ratio for the stock market.In 2017, when the crypto market was bullish, the average Bitcoin NVT ratio was 7.3. This number became 8.7 in 2021 when the market experienced a similar pattern. In retrospect, single-digit NVT ratios usually hint at bullish markets.This year so far, Bitcoin has been relatively overvalued, given that the average NVT ratio is 23.6.BTC price recoveryWhen the crypto market sentiment lost its confidence due to the FTX bankruptcy last year, the price of Bitcoin went down to $15,000. It later recovered to the near $30,000 level. The Bitcoin price once had reached an all-time high in 2021, surpassing $65,000.The years that manifested similar patterns as this year were 2018 and 2019. In those years, the Bitcoin NVT ratio plateaued around 20.Uncertain outlookThe NVT ratio itself could point to a possible crypto winter, but researchers say it’s hard to say.Jang Kyung-pil, a research analyst at crypto data platform Xangle, said that people now consider Bitcoin as a store of value rather than a means of transactions, pointing out that BTC’s market value to realized value (MVRV) ratio has hit the bottom at 0.84 and now reached 1.4. According to Jang, MVRV values under 1 indicate undervaluation and those above 3 indicate overvaluation.Jung Seok-moon, head of the research center at crypto exchange Korbit, said that the current NVT ratio signals BTC overvaluation. He added that the Fed is likely to turn dovish in its monetary policy, which would prompt a strong BTC uptrend.

Korean Blockchain Fund Supports Web3 Game Developer Growth in Southeast AsiaHashed, a Seoul-based blockchain venture fund, has spearheaded a seven-figure investment round for Decentralised Gaming Ventures (DGV), a Web3 game development support entity primarily serving Southeast Asia (SEA), according to a press release. This funding will help DGV in its mission to foster the growth of promising game developers in the region.Photo by Timo Volz on PexelsSEA as a Web3 Game HubDGV has set its sights on making SEA a hub to nurture game developers and bolster the Web3 game sector. The company has already established a studio in Singapore, where 32 talented game developers work in eight different teams, providing them with the necessary resources to design and introduce new gaming titles. Over the past year, DGV has supported the release of 15 games.Studio in SingaporeDGV further plans to help game developers in the region through alliances with renowned entertainment intellectual property (IP) owners. In the past, the company has teamed up with Singapore-based designer toys and art collectibles studio Mighty Jaxx, and recently appointed gaming veteran Derrick Sim as its Chief Operating Officer. Sim has expertise in collaborating with major entertainment IPs, including Marvel, StarCraft II, and FIFA Online 2.DGV CEO Samson Oh articulated the firm’s aspiration to forge an environment that empowers developers in SEA to create blockchain-powered Web3 games, anticipated to be the gaming industry’s future. With the support from Hashed, DGV looks to reinforce the region’s reputation as a fertile ground for innovative game developers.Hashed’s Co-Founder Ryan Kim commended DGV’s effective leadership, SEA governmental backing, and firm groundwork for expansion in the Web3 gaming industry. The investment in the firm signals the Korean fund’s belief in DGV’s seasoned team and its mission to leverage IP accessibility to advance its digital ownership initiative in the gaming realm.

Taiwan police uncover $320M crypto money laundering operationTaiwan police have recently exposed the largest cryptocurrency money laundering case in the nation’s history, involving 320 million USDT (approximately 10.5 billion New Taiwan dollars).Photo by DrawKit Illustrations on UnsplashCross-border laundering operationIt emerged on Tuesday that the Electronic Investigation Team of the Criminal Bureau initiated their probe after uncovering a fraudulent scheme related to a counterfeit Taishin Securities mobile software last year. This led them to a merchant with the surname Qiu, the alleged mastermind behind this operation who was suspected of laundering substantial sums through virtual currency.Qiu is believed to have maintained connections with overseas gambling and fraud groups, engaging in cross-border communication with illicit organizations in countries including Hong Kong, Malaysia and the Philippines.Their investigation revealed that Qiu had been conducting transactions involving 320 million Tether US dollar stablecoins since February of the previous year. In June, law enforcement apprehended Qiu during one of his visits to Taiwan, along with four alleged accomplices.High value goodsDuring the operation, authorities seized high-value assets from Qiu, including a Lamborghini Urus, a Lexus LM and three Audemars Piguet watches, with a combined market value exceeding TWD 13 million. The lavish lifestyle maintained by Qiu, evident from his luxury cars and high-end watches, serves as a stark reminder of the extensive underground economy driven by money laundering.Evidence from the operation suggested Qiu’s involvement in handling illicitly obtained Tether coins worth approximately TWD 70 million. Further investigations uncovered that Qiu regularly sold virtual currency and converted it into cash to effectively obscure the money’s origins, accomplishing the goal of laundering.In piecing the activities of the group together, police determined that victims were instructed to transfer their funds to fictitious accounts. In that way, the money found its way to crypto exchanges and individual crypto traders under the direction and control of the group.Qiu would also retain a 1% profit margin from the laundered amount. Several other individuals were implicated in this extensive operation, including a foreign affairs officer named Liao and two other individuals named Chen and Huang. Each of these individuals is presently under investigation, with varying levels of bail and restrictions imposed.The intricate web of transactions and the substantial amount laundered by Qiu have surpassed previous records held by the Electronic Investigation Team. As investigations continue, law enforcement is determined to uncover the full extent of this operation and trace the entirety of the money flow.Taiwan’s legislators are currently working on producing a regulatory framework for crypto in the country. The only regulatory aspect that is covered right now is oversight relative to anti-money laundering (AML) and know-your-customer (KYC) regulation. In 2018 Yang Chin-long, Taiwan’s central bank Governor, called for a need to regulate crypto on the basis of existing AML rules, with the authorities subsequently following through on that measure.In July 2022, the country’s Financial Supervisory Commission (FSC) penned a letter to the banking sector, banning the purchase of digital assets via credit cards.