Wemade Reports Loss of $30.6M Despite All-Time High Quarterly Revenue

Korean Crypto Exchange Giants Lead Market Expansion With Increased ListingsSouth Korea’s top three cryptocurrency exchanges Upbit, Bithumb and Coinone have all increased the number of cryptocurrencies they listed for trading this year compared to last year, making them responsible for leading the market’s activity and expansion.Photo by Maxim Hopman on UnsplashDynamic shifts in listing and delisting trendsA recent analysis by local news outlet News1 on the number of cryptocurrencies listed and delisted this year on the country’s major fiat-to-crypto exchanges Upbit, Bithumb, Coinone, Korbit and Gopax — listed in order of market share size — revealed that Upbit and Coinone have increased their number of listings and delistings compared to last year.The remaining three exchanges, on the other hand, showed differing results. Bithumb increased its number of listings by 47 compared to the number listed last year, while delistings decreased by three, and Gopax listed eight fewer tokens and delisted one more token. Meanwhile, Korbit’s listings decreased by 37 tokens, while delistings decreased by only one.Among the five exchanges, Bithumb listed the highest number of new cryptocurrencies this year, with 80 new currencies in total added as of Monday (local time). This represents a more than double increase compared to the 33 currencies added last year. It is also 18 more than Coinone’s 62 new currencies and 50 more than Upbit’s 30.Differing approaches based on situational factorsGopax and Korbit have taken a more conservative approach compared to Upbit, Bithumb, and Coinone, which have been more aggressive in their listing strategies. In particular, as of Oct. 4, Bithumb has also been offering free transaction fees in an effort to regain its market share. This aggressive approach can be interpreted as an effort to weather the recent crypto winter, although it hasn’t been very successful.Conversely, the exchange that delisted the most cryptocurrencies this year was Coinone, with 38 taken down as of Monday, marking a significant increase compared to last year when it delisted 26. This can be accredited to the platform’s efforts to improve its reputation and operating system following an incident earlier this year where two former employees were booked for taking bribes in exchange for listing certain cryptocurrencies. Coinone CEO Cha Myung-hun subsequently issued an apology and pledged to take proper measures to prevent such an event from recurring. Since then, the exchange has been actively looking into carrying out delistings tied to issues like the amount of currency in circulation or market price manipulation.Bithumb and Upbit came in second and third for most delistings this year, with 22 and 18, respectively.However, Korbit showed the least fluctuation in the number of listings and delistings this year — nine and three, respectively — among the five exchanges. This is a sharp contrast owing to its conservative listing policy. Speculation suggests that the platform might adopt a more aggressive stance if market conditions improve in the second half of the year.On the other hand, Gopax listed 10 tokens and delisted eight tokens. The exchange has notoriously been dealing with operational difficulties due to regulatory roadblocks despite optimistic outlooks after its acquisition by Binance, one of the world’s most prominent exchanges. Along with the recent appointment of Cho Young-joong as the new CEO of CityLabs, the company that acquired an 8.55% stake in Gopax, the exchange has been working on resolving regulatory issues and improving the state of operations.

OKX collaborates with Polygon Labs on layer-2 network launchSeychelles-incorporated OKX, one of the world’s largest cryptocurrency exchanges, has collaborated with blockchain development firm Polygon Labs to unveil the testnet for its latest zero-knowledge layer-2 network, named “X1.”Photo by Shubham Dhage on UnsplashIntroducing “X1”The company announced initial details on X1 via a press release published on Tuesday. This Ethereum-based ZK network has been constructed using the Polygon Chain Development Kit (CDK), with OKX playing a pivotal role as a core contributor to the CDK. Substantial engineering resources are being invested by OKX to strengthen the Ethereum scaling solution.The new network will serve to bolster the utility of OKX's native token, OKB. OKB will be used for X1’s gas fees. There has been a lot of chatter about the utility of exchange tokens following the collapse of FTX, as that platform was over-reliant on its native token in propping up the exchange. Similarly, critics are speculating that a comparable dynamic may be at play at Binance, relative to its native token BNB.Likely buoyed by news of this development, OKB observed a 10% unit price increase on Tuesday. However, that move has retraced downwards in the meantime.ZK proof technologyX1 has been designed with ZK proofs, a method through which one party can convince another that a particular claim is true without disclosing details of the claim itself. In this way, X1 ensures high security and scalability while mitigating transaction costs. The network seamlessly aligns with Ethereum, facilitating the secure deployment of EVM-based dApps and connectivity with a wide array of smart contracts, wallets and tools. OKX underscores X1’s status as its new native network.Chief Innovation Officer of OKX, Jason Lau, expressed optimism about X1, deeming it integral to the firm’s efforts in guiding users into the realm of Web3. Lau emphasized the scalability and accessibility of X1, especially for developers who can leverage it to construct user-friendly Web3 applications while maintaining interoperability with other networks.The collaboration with Polygon Labs marks another milestone in the evolution of Polygon’s CDK. Launched in August, the CDK enables the development of layer-2 blockchains on Ethereum, emphasizing zero-knowledge proofs. Networks deployed using the CDK gain the ability to connect to a shared ZK bridge, fostering interoperability.Sandeep Nailwal, co-founder of Polygon, underscored the significance of X1’s adoption of Polygon CDK technology, envisioning a future where CDK-deployed chains interoperate and coexist within a larger network of ZK-powered layer 2s in the Polygon CDK ecosystem. The CDK has gained traction, with various Layer 2s, including Immutable zkEVM, IDEX, Palm Network and Astar zkEVM, currently in development using this technology.Industry trendA trend is developing among crypto exchange platforms and their involvement in establishing layer two networks. Earlier this year, U.S. crypto platform Coinbase introduced the Base network, an Ethereum layer-2 network that focuses on offering a safe, low-cost and developer-friendly mechanism to build on-chain.Last week, it emerged that another leading U.S.-based crypto platform, Kraken, is on the lookout for a development partner to enable it in building out its own layer-2 blockchain network. According to those reports, it’s understood that Kraken is considering partnering with Polygon Labs, Matter Labs or the Nil Foundation.As this OKX-Polygon Labs collaboration progresses, the industry will continue to observe how X1, with its innovative technology stack and seamless integration with Ethereum, contributes towards broader Web3 development.

SEC seeks summary judgment against Terraform LabsThe U.S. Securities and Exchange Commission (SEC) is making a strong push for a summary judgment in its ongoing legal battle against Singapore’s Terraform Labs and its co-founder Do Kwon. Such an outcome would spare the need for a protracted trial.According to a motion filed by the SEC on Thursday, the record shows that there is “no genuine dispute as to any material fact and that the moving party is entitled to judgment as a matter of law.”Photo by Caleb Fisher on UnsplashRelying on the Howey TestThe SEC’s filing underscores its central argument that Kwon and Terraform Labs were involved in the sale of securities. The document categorically states:“There is no dispute that purchasers made an investment of money, either through fiat currency or crypto assets, for each crypto asset — LUNA, wLUNA, MIR, and UST, thereby satisfying the first prong of Howey.” The Howey Test refers back to a U.S. Supreme Court case — SEC v. Howey — which took place in 1946. The case set a precedent and has subsequently become the cornerstone of determining what is or is not a security in the United States.This argument hinges on the idea that funds were pooled in a common enterprise with the expectation of profits primarily derived from the efforts of the promoters.Citing fraud as well as unregistered securitiesThe SEC’s assertion is two-fold, contending that not only did Terraform and Kwon engage in selling securities, but they also engaged in fraudulent activities and disseminated misleading information. The SEC reiterates these claims in its filing, emphasizing that the defendants committed fraud by duping investors about the stability of UST.They allegedly falsely attributed the algorithm for price stabilization while orchestrating clandestine third-party interventions. This purported deception made their claims regarding the algorithm’s effectiveness deceptive and involved the omission of crucial information. The fallout from Terra’s collapse in May of the previous year resulted in the destruction of substantial investor wealth, totaling billions of dollars.Similar defense team filingThe SEC’s move to seek summary judgment comes in the wake of a similar filing by Kwon’s defense team last Friday. Kwon is currently serving a sentence for document forgery in Montenegro, a situation stemming from his arrest at an airport with forged passports.Notably, Terraform’s co-founder, Daniel Shin, who is currently on trial in South Korea, has attributed the collapse of Terraform Labs to Kwon’s mismanagement. Shin has claimed his separation from the company and its activities occurred two years before its eventual collapse.In this legal battle that holds significant implications for the cryptocurrency and blockchain space, the SEC continues to emphasize its position, asserting that Kwon and Terraform Labs engaged in the sale of securities through deceptive means. The outcome of this case could have far-reaching consequences, setting precedents for future regulatory actions in the industry.