South Korea crypto market cools as Kimchi Premium turns negative

BIT Exchange Unveils XRP Options TradingBIT Exchange, a cryptocurrency derivatives platform, has announced the introduction of XRP options trading in a move that provides for more advanced trading dynamics within the digital assets space.The development, disclosed via a blog post published to the company’s website on Thursday, offers users the unprecedented opportunity to engage in XRP options trading without the need to possess the actual cryptocurrency.Photo by Kanchanara on UnsplashUS dollar settlementA distinguishing feature of this initiative is that profit and loss settlements will be conducted in US dollars. To ensure a seamless experience, BIT Exchange has partnered with OrBit Markets to maintain robust order book liquidity. This expansion of offerings complements the exchange’s existing suite, which already includes stalwarts like Bitcoin (BTC), Ether (ETH), Cardano (ADA), Toncoin (TON), and Milady (LADYS).Facilitating hedgingFor the uninitiated, options are derivative contracts that empower the holder with the right to buy or sell the underlying asset at a predetermined price before a specified date. Call options grant the holder the buying privilege, while put options provide the selling prerogative. Typically deployed for hedging purposes, options play a pivotal role in mitigating bullish or bearish risks, and they can also act as a supplementary revenue source when traders “write” options alongside their spot market holdings.Justin Buitendam, BIT Exchange’s Global Head of Institutional Sales, remarked on the milestone, stating: “We’re excited to be among the early platforms offering XRP options trading to institutional and retail traders, providing both long and short options trading opportunities.”XRP boostAs of now, XRP boasts a market capitalization of $26.5 billion, positioning it as the world’s fifth-largest cryptocurrency. Notably, XRP, akin to several other alternative cryptocurrencies, exhibits greater volatility compared to the more established Bitcoin and Ether.The native token of the Ripple global payments network has experienced a market resurgence in recent weeks, following a positive outcome to a lawsuit taken by the Securities and Exchange Commission (SEC) against Ripple Labs in the United States. In the wake of that decision, many cryptocurrency exchanges that had delisted the token immediately reinstated it. BIT Exchange’s strategic move to introduce XRP options aligns with those recent legal developments.Ripple, as the issuer of the XRP token, garnered a partial victory in its ongoing legal battle against the SEC. The court ruled that XRP is not classified as a security when traded on centralized exchanges. However, a different classification may apply when XRP is directly sold to institutions.The matter is far from settled, however. More recently, the SEC has sought permission to challenge the court’s verdict, underscoring the dynamic and evolving landscape of cryptocurrency regulations.BIT Exchange was spun out of Singapore-based crypto financial services platform, Matrixport. Both have been co-founded by Jihan Wu, better known for having founded leading Chinese crypto mining outfit Bitmain.

Korean Cafe Attracts Customers with NFTsA South Korean cafe owner has employed non-fungible tokens (NFTs) as an ingenious marketing strategy to attract customers.©Pexels/Leeloo ThefirstNFT holder benefitsIn an interview with Korean crypto news outlet Digital Asset, Yoo Hyun, the entrepreneurial business owner, explained that he was seeking a strong marketing tool to capture the attention of the NFT market. Yoo was interested in seeing if his cafe could remain profitable while also offering substantial benefits to its customers.Since April 2022, Yoo has released a total of 50 Ethereum-based NFTs related to his cafe, Hide Me, Please (HMP), in two separate batches of 25 each. The first set of NFTs grants holders a free cup of coffee or drink daily for life, while the second set offers an extra drink or dessert with each drink purchased.Increased revenueThis unique NFT initiative has led to increased revenue for the cafe. Kim Dae-sung, the CFO of HMP, explained that the cafe’s monthly revenue increased by 15% compared to the same period last year.HMP is currently selling 500 NFTs as a third set and plans to release more depending on demand. Yoo highlighted the importance of an appealing interior design and tempting desserts, as NFT holders visiting for a free coffee may be enticed to purchase a dessert as well.Regular customersYoo asserts that the food and beverage industry hinges on retaining regular customers and believes NFTs can help achieve that objective. HMP aspires to become a community-based platform, and according to Kim, many digital artists are interested in the space that the cafe provides because it enables them to connect with clients. Collaborations often take place, and while the cafe charges for food and drinks, it does not charge for space rental. This approach fosters a positive impression and contributes to a strong brand image.High-quality cafeAt present, about 5% of HMP’s customers hold NFT memberships. Yoo and Kim plan to increase this number to 10% but no higher, as excessive reliance on NFT members could jeopardize the business. They underlined the significance of remaining a high-quality cafe, staying true to the core foundation of their enterprise. As they anticipate the growth of the Web 3.0 ecosystem, Yoo and Kim believe that with continued efforts, HMP will gain even greater value.

PantherTrade applies for Hong Kong trading licensePantherTrade (Hong Kong) Limited, a subsidiary of Futu Holdings, had been reported last month as being in the process of preparing a licensing application to trade in Hong Kong. According to recent reports in local media, it appears that the company has now submitted such an application to the Hong Kong authorities.Photo by Simon Zhu on UnsplashKey appointmentsThis move aligns with the broader trend, as a total of six companies have submitted applications to the Securities and Futures Commission (SFC) of Hong Kong. It’s understood that PantherTrade submitted its application on Nov. 15. The move follows a similar application made by Hong Kong-based Meex Holdings on Oct. 12.Key strategic appointments within PantherTrade underscore the company’s vision for its virtual asset trading venture. Chen Zhihu, former Investment Director at Huobi Asset Management (Hong Kong), has joined as a director. The corporate establishment of PantherTrade in March also saw the addition of Hong Yimin, while the initial director, Fang Xingzhi, has a background with Jingdong Securities Co., Ltd.Interest from mainland ChinaRegulatory attention has intensified on PantherTrade and another applicant, Yax, affiliated with Tiger Brokers employees, according to reports from Nikkei Asia. Yax is another platform with mainland China ties, which was reported in October as intending to apply for a license to trade within Hong Kong.It’s understood that the local entity of Chinese enterprise blockchain firm OK Group, OKX Hong Kong FinTech Company Limited, submitted its own trading license application on Nov. 16.Licensing uptakeHong Kong’s regulatory environment has undergone a significant shift, with the city granting the first licenses to cryptocurrency companies under a new framework in August of the current year. The regulatory changes, effective in 2023, allow retail investors to trade crypto on exchanges licensed by the SFC. Importantly, the city has removed the restriction on crypto trading, no longer confining it to professionals with a minimum of $1 million in bankable assets.This regulatory evolution is part of Hong Kong’s broader strategy to position itself as an international hub for cryptocurrencies. The city aims to attract fresh capital and talent, especially in the aftermath of the pandemic. The licensing race among virtual asset trading platforms signifies a pivotal phase in Hong Kong’s vision to lead the digital asset industry in Asia.There had been some short-lived concern that momentum was moving against Hong Kong’s efforts to further the Web3 sector when it emerged recently that crypto derivatives platform Bitget was exiting the Hong Kong market and abandoning efforts to secure a trading license. That concern dissipated when Bitget’s motivations became clearer, following BGX, a related Bitget entity, making an investment into BC Technology Group, the owner of the already Hong Kong-licensed OSL exchange.PantherTrade’s application for a virtual asset exchange license in Hong Kong adds momentum to the city’s evolving crypto landscape. The strategic hires and the broader industry trend highlight the growing significance of Hong Kong in the global digital asset arena. As the regulatory framework becomes more conducive, the city aims to foster innovation and become a key player in the international crypto space.