Hong Kong’s Development as Crypto Hub May Soften Chinese Stance on Crypto

South Korean NFT trading platform Eggverse has signed a strategic business agreement with blockchain gaming platform operator Weracle to target the global market for NFT-linked gaming and expand the ecosystem, according to local news site ZDNet on Thursday (KST). The two firms plan to sketch a business model and implement specific strategies to provide differentiated and more convenient gaming experiences for users by making trading NFTs faster and easier.Photo by Choong Deng Xiang on UnsplashCollaborative expansion"With our years of project experience with leading partners in each field and our in-house technology, we expect to create strong synergies in expanding the global gaming ecosystem of both companies," Eggverse said. "Through this collaboration, we will promote various types of Web3 games in new marketplaces. We expect it will yield the biggest progress among the events we plan to organize in the first half of 2024." Popularizing digital assetsBased in Singapore, Weracle provides a variety of services, including swapping its own governance token, Weracle (WERAC), and Weracle Wallet, which allows users to store and manage game NFTs. Eggverse, on the other hand, is known for its Web3-compatible service that allows customers to mint and resell real-life items like hotel vouchers and artwork as NFTs – the first of its kind in South Korea. Last November, the platform signed a business deal with Asian blockchain hub SPLabs to venture into the Southeast Asian Web3 market.

Lotte Data Communication launches NFT donation campaign for children’s rehab centerSouth Korean IT service company Lotte Data Communication is running an NFT donation campaign dedicated to building a children’s rehabilitation center on its NFT marketplace KottonSeed, according to local newspaper The Herald Business on Friday.Photo by Markus Winkler on UnsplashNFTs for charitySponsored by the South Korean Ministry of Health and Welfare, the Korea Disabled People’s Development Institute, the non-profit organization Todag Todag and Hanam City’s Disabled People Family Support Center, the donation campaign will run throughout this month, rewarding every participant with one free “Good Seed NFT”. For each NFT distributed, Lotte Data Communication vowed to donate KRW 1,004 ($0.77). In Korean, the number 1,004 has the same pronunciation as “angel.”The company explained that the project aims to go beyond using NFTs simply as a form of virtual assets, but rather inspire a spirit of giving by showcasing the various ways that NFTs can be used. KottonSeed will also partake in more donation campaigns incorporating Good Seed NFTs in the future to contribute to this objective.“Through this donation campaign, we wanted to demonstrate that there are no limits to the use of NFTs. We hope this becomes an opportunity for many people to feel that positive influences can reach even the places that tend to go unnoticed in our daily lives through NFTs.”Bringing NFTs to various sectorsKottonSeed — currently a beta service — offers NFT marketplace and wallet services that support blockchain networks like Ethereum, Polygon and Klaytn and a variety of payment methods, making it easy for anyone to buy, sell and own NFTs. Lotte Data Communication has been making strides to increase KottonSeed’s presence in the NFT market since its launch earlier this year. It has been incorporating NFTs into various sectors such as proof of participation in activities, product promotion, sports marketing and environmental, social and governance (ESG) efforts.

Illiquid Token Sinks OPNX’s $30 Million Hodlnaut BidThe interim judicial managers overseeing the restructuring process of troubled Singaporean crypto lender Hodlnaut have firmly opposed the takeover offer presented by OPNX, the Dubai-based crypto bankruptcy claims trading platform associated with the founders of the now-defunct hedge fund, Three Arrows Capital.Photo by Image Hunter on PexelsSpeculative token valueIn a report published on Tuesday, Bloomberg referred to a recent court filing in which the administrators of Hodlnaut had characterized OPNX’s $30 million bid in FLEX digital tokens as “illiquid” and bearing “speculative value.” Additionally, a significant portion of Hodlnaut Group’s creditors, representing 60% of the total debt, had also voiced their dissent towards the proposed OPNX deal.Hodlnaut, headquartered in Singapore with operations in Hong Kong, found itself among the casualties of the $1.5 trillion crypto market downturn last year. OPNX had expressed its interest in taking control of Hodlnaut last month.Among the concerns raised by managers were the absence of a cash injection or assets with readily available liquidity, such as Bitcoin or Ether. Furthermore, there was no clear timeline provided for the repayment of creditors’ debts, and the proposal lacked detailed information regarding payments, which are limited to just 30% of liabilities, according to the court-appointed supervisors of Hodlnaut’s restructuring.FLEX token offeringThe FLEX token, associated with the CoinFLEX exchange, whose founders Mark Lamb and Sudhu Arumugam launched OPNX earlier this year, is at the center of the proposal. Currently, it holds a market value of approximately $54.4 million. However, its trading volume remains low. Moreover, its unit value stands at $0.55, marking a substantial 95% decrease from a month ago when the offer was first submitted to the Singapore court, as per data from CoinGecko.The deal would have meant OPNX taking a 75% stake in the business. Previously, Hodlnaut’s founders Simon Lee and Zhu Juntao had put forward a proposal of a business sale rather than liquidating the company as the preferred option.Su Zhu and Kyle Davies, co-founders of Singapore’s Three Arrows Capital, played instrumental roles in the inception of OPNX, joining with the CoinFLEX founders in establishing the bankruptcy claims trading platform. Despite their initial contributions, it’s worth noting that Zhu has previously clarified that neither he nor Davies are involved in the day-to-day management of the exchange.Regulatory sanctionsIn recent developments, Zhu and Davies were sanctioned with a nine-year ban by the Monetary Authority of Singapore due to violations connected to their collapsed hedge fund firm, which operated out of Singapore. Furthermore, in August, authorities in Dubai levied fines against Zhu, Davies, Mark Lamb, OPNX CEO Leslie Lamb, and Arumugam for operating and promoting OPNX without the required local license.The rejection of OPNX’s bid by Hodlnaut’s bankruptcy administrators underscores the challenges implicated by illiquid tokens. The fate of Hodlnaut remains uncertain, pending further developments in the ongoing legal proceedings, and will depend upon its management’s efforts in finding a new buyer for the business.