Terraform Labs co-founder Do Kwon sentenced to 15 years for ‘generational’ fraud

Short-Term Crypto Investment Prevails Among Hong Kong’s Retail InvestorsHong Kong’s retail investor interest in virtual assets has experienced a significant surge in recent years, albeit a recent survey suggests that most retail investors take a short-term investment view relative to crypto assets.Photo by Robert Bye on UnsplashIFEC studyThis newfound enthusiasm for virtual assets emerges from a recent study published by the Investor and Financial Education Council (IFEC), a subsidiary of the Securities and Futures Commission (SFC), Hong Kong’s securities regulator. The survey found that 6% of retail investors in the city had entered the virtual asset market in 2023, as compared to merely 1% in 2019.Conducted from June to July of this year, the study encompassed 1,000 individuals aged between 18 and 69. The survey uncovered a trend toward crypto investing among retail investors who’ve been enticed by the allure of the emerging asset class. Intriguingly, every single one of the digital asset retail investors in the study held cryptocurrencies in their portfolios. Non-fungible tokens (NFTs) and stablecoins, while still relatively niche, were also present in the portfolios of 6% and 2% of investors, respectively.11% to invest in crypto within 12 monthsAnticipating a further uptick in interest, the IFEC report posits that 11% of those surveyed have intentions to invest in virtual assets or related products within the next 12 months. This indicates that the allure of virtual assets continues to exert its magnetic pull on investors in Hong Kong.Despite the growing interest, a noteworthy finding in the survey is that 75% of retail virtual asset investors admitted to their primary motivation being the pursuit of short-term gains. Simultaneously, 74% of these investors perceived virtual assets as a prevalent investment trend, and 73% cited the fear of missing out on popular investment opportunities as a driving factor. These statistics underscore the need for enhanced investor education within the sphere of virtual assets.Lack of regulatory awarenessAnother interesting aspect of the data which emerged from the survey was the finding that only 47% of all surveyed investors are aware of Hong Kong’s recently introduced virtual asset trading regulations, which came into effect on June 1.An additional facet of this investor behavior study was illuminated by research conducted by the Department of Applied Social Science at Hong Kong Polytechnic University (PolyU). This research, based on data from a separate IFEC report that surveyed 501 people from November to December of last year, revealed that many retail investors in virtual assets exhibited overconfidence in their judgment.These investors were also found to have a proclivity to overemphasize past information, lean heavily on readily available and easily recalled information, and overestimate personal intuition.With that in mind, Eric Chui, Head of PolyU’s Applied Social Science unit, advised virtual asset investors to adopt a more deliberate and rational approach. Chui emphasized the importance of building financial literacy and collecting high-quality market information to make informed investment decisions, while steering clear of irrational investment behavior and biases.

Metaplanet, a Japanese investment and consulting firm, has recently announced the acquisition of an additional 42.466 Bitcoins, valued at 400 million Japanese yen ($2.5 million). This purchase increases their total Bitcoin holdings to 203.734 BTC, which were acquired at an average price of approximately 10 million yen ($62,000) per coin—about 7% above the current market price. This move reinforces Metaplanet’s strategy to integrate Bitcoin as a central component of its treasury assets. Market impact and future plansDubbed "Asia’s MicroStrategy" for its aggressive cryptocurrency investment strategy, Metaplanet has seen significant market momentum since its initial Bitcoin purchase in April 2024. The firm's stock surged by 90% the day following its initial announcement. However, following a recent downturn in Bitcoin prices, Metaplanet’s stock experienced a 25% decline from its peak in June. Despite this, the stock price remains 344% higher than at the start of 2024. In response to the volatile market, Metaplanet has announced plans to issue 1 billion yen ($6.26 million) in bonds to fund further Bitcoin acquisitions, signaling continued confidence in the long-term value of Bitcoin as part of its investment strategy. 

Parameta and Solbric Korea to Create First Solar Power Plant Security Token Platform in KoreaSouth Korean blockchain company Parameta (formerly known as Iconloop) said Tuesday it entered a business deal with Solbric Korea, a subsidiary of solar energy innovation company Next Solar Energy, to jointly establish the country’s first solar power plant security token platform that allows investors to make fractional investments in solar energy.Photo by Nuno Marques on UnsplashReceiving approval as an innovative financial serviceIn order to establish such a platform that designates solar power plants as underlying assets, they will jointly apply for a financial regulatory sandbox — a program introduced by the Korean government that offers a special and provisional regulatory exemption for financial services that have been recognized for their innovativeness.Once the platform is recognized under the sandbox as an innovative financial service, the two companies will work together on the issuance and distribution of security tokens.Expanding opportunities to invest in solar energyUltimately, Solbric aims to build a platform that brings security token technology to the solar power sector, which, until now, has presented limited investment opportunities for individual investors in Korea. It will allow them to trade securities and make small-scale, fractional investments in solar power plants.To do so, Solbric intends to leverage the knowledge and expertise of its parent company, Next Solar Energy — an experienced veteran in the solar plant industry.As its partner, Parameta will provide the necessary blockchain technology for constructing and managing the platform based on its security token offering service, Parameta S. This service uses tokens to allow fractional management of real-world assets (RWAs), making it easy to invest in and organize them. This offers more liquidity and flexibility compared to traditional investment methods.“We will focus on providing investment returns to platform users as well as the unique experience of owning various solar power plants,” said Kang Jae-won, the CEO of Solbric Korea.Increased institutional supportThis project is made possible by the recent upturn in institutional support from Korean financial authorities that allows more security token offerings. Last month, the Korean Financial Services Commission ultimately granted regulatory exemptions to several fractional investment firms that have successfully completed the business reorganization as requested by the regulator. The Financial Supervisory Service has also decided to allow fractional investment businesses to apply for investment contract securities.Taking advantage of this momentum, Solbric and Parameta plan to continually explore diverse business opportunities to establish their platform.“We are currently working with various specialized companies, including Solbric, to expand our security token businesses in various fields such as solar power plants, mobility, real estate non-performing loans, carbon emission rights, and electric vehicle batteries,” said Kim Jong-hyup, CEO of Parameta.