Wemade CEO Encourages Japanese Game Developers to Embrace Blockchain

Amid the ongoing cryptocurrency market slowdown, a South Korean analyst said a rebound will hinge on effective policy measures and sustainable business models.Photo by Kanchanara on UnsplashAnalyst urges policy and profitabilityAccording to an analysis by iM Securities researcher Yang Hyun-kyung, cited by local outlet Etoday, the current downturn stems from several factors: a liquidity crunch in short-term funding markets, a strengthening U.S. dollar, rising risk aversion, and a prevailing narrative of a cyclical correction. Yang noted that a strong dollar typically drains market momentum, as tighter global liquidity prompts investors to deleverage and reduce exposure to risk assets. He added that growing uncertainty over potential U.S. rate cuts in December has further fueled risk aversion among institutional investors, putting selling pressure on both major cryptocurrencies and altcoins. While the expected resolution of the U.S. government shutdown may create a more favorable environment for a modest technical rebound, Yang argued that the crypto sector still needs to develop profitable business models and gain growth momentum through supportive policy measures. Brokerage frames crypto as diversifierDespite the current headwinds, another Korean brokerage firm released a quarterly report framing digital tokens as an emerging alternative asset class. According to Etoday, Hanwha Investment & Securities CEO Jang Byung-ho wrote in the report that the primary goal of retail investment is to preserve purchasing power. He drew a parallel to the U.S. market in the 1980s, when bond investors would have seen their returns erode had they failed to recognize equities as a viable investment vehicle. Citing that lesson, Jang suggested investors consider digital assets as a new pillar for portfolio diversification. Diverging approaches from global central banksThese evolving viewpoints on crypto come against a complex global macroeconomic backdrop. From one perspective, the People’s Bank of China (PBOC) has begun quantitative easing (QE). Otavio Costa, a macro strategist at Crescat Capital, shared a chart on X showing that the value of the PBOC’s balance sheet assets is on track to surpass that of the U.S. Federal Reserve. Costa predicted the Fed would soon follow suit, stressing that investors are underexposed to hard assets. This potential easing contrasts with speculation that the Bank of Japan (BOJ) may raise interest rates next month. One BOJ board member noted at a recent policy meeting that most conditions for a hike have already been met and added that a move is likely once wage negotiations scheduled for spring point to sustained pay growth, as long as the global economy avoids major disruptions. These diverging policy directions have mixed implications for the crypto market. Typically, dovish measures like QE are seen as supportive, as increased liquidity tends to boost risk appetite. Rate hikes, by contrast, withdraw liquidity from the system, limiting the upside for risk assets like digital tokens. As economic conditions evolve and the industry adapts, investors will be watching closely to see how these shifts shape the market’s next moves. 

Japan’s Kumamoto City Bolsters Innovative Blockchain StartupsIn February this year, the city of Kumamoto in Japan organized the Kumamoto City Pitch 2022–2023, an event designed to bring together startups, established companies, and venture capital firms to promote business growth, according to Japanese tech media ASCII STARTUP.Photo by Christian Chen on UnsplashPromoting innovative startupsWith its inception in 2021, the Kumamoto City Pitch has been dedicated to promoting innovative startups with exceptional business models and unique technology. Its objective is to nurture local startups, build communities, and expand business sectors to strengthen the city’s growth.The event featured presentations from ten companies, including four that had been accepted into the Kumamoto City Acceleration Program “HIGO CANVAS.” The program offers support to projects based in Kumamoto that focus on areas such as cryptocurrency, blockchain, and virtual reality. Among the four accepted companies, two were involved in web3 and blockchain, while the others were working on medication guidance support through user-friendly pillboxes and digital transformation of manufacturing factory management.Web3-based marketing toolOne of the two blockchain-focused projects was Warashibe, a developer of Web3-based marketing tools. Its main product is a blockchain-powered marketing tool called “BADGE,” designed to enhance marketing efficiency.BADGE allows users to manage coupons and apps from retail stores in their own wallet. In turn, stores can reduce costs associated with producing and operating coupons and apps. Additionally, stores can analyze spending habits and other data from the wallet to identify target customers for promotions, enhancing the effectiveness of their marketing campaigns.Warashibe has achieved over 20 successful implementations, some of which involved leading manufacturing companies such as Daihatsu Motor, a major automobile engine manufacturer, and Ricoh, a renowned imaging and electronics company. Beyond coupon management, BADGE offers features like membership cards, credentials, and graduation certificates. The company is also currently developing services to analyze target consumers and manage advertising.Blockchain biz challengesIRISA is another startup exploring the blockchain sector. Initially, the company aimed to develop a social media platform incorporating blockchain games. However, the project changed direction due to challenges arising from the limited number of blockchain gamers and the blockchain oracle problem. The latter issue refers to the inherent limitations of blockchains in accessing data outside the network, also known as off-chain data.

Yat Siu: Hong Kong’s Crypto Adoption Sanctioned by the MainlandIn a keynote speech at the Ethereum Community Conference (EthCC) in Paris on Wednesday, Yat Siu, Co-Founder of blockchain gaming and NFT firm Animoca Brands, shed light on Hong Kong’s rapid adoption of cryptocurrencies and Web3 technology, emphasizing its connection to developments unfolding in mainland China.Photo by Serey Kim on UnsplashDriven by the Chinese authoritiesSiu argued that the current crypto trend in Hong Kong signifies more than just the actions of the Chinese autonomous area itself, pointing to a larger agenda driven by China’s aspirations.According to Siu, the Chinese government’s release of its Web3 white paper in May, which positioned Web3 as the future of the internet, carries significant weight. Notably, this announcement came only days after Hong Kong revealed plans to allow retail crypto investments. Siu highlighted that even though China’s white paper did not explicitly mention cryptocurrencies, it is key to acknowledging the country’s commitment to advancing Web3 technologies.The news of Hong Kong’s crypto developments resonated throughout China, capturing attention even on China Central Television, the national TV channel. Siu underscored the broader implications of this coverage, suggesting that the developments in Hong Kong bear the imprint of higher authorities. He made it clear that any actions taken by Hong Kong would require the approval of China.Challenging US global hegemonyBeyond Hong Kong, Siu delved into the broader significance of Web3 as a tool to challenge the United States’ technological hegemony. He expressed concerns about the security risks associated with excessive reliance on tech giants such as Google, Apple, and Facebook. Siu argued that countries like Japan, Korea, and China view Web3 as an opportunity to break free from the dominance of US-centric technologies. This motivation is especially pronounced in China, which is actively pursuing de-dollarization.Reducing dependence on the US dollar represents a key factor driving the adoption of Web3 in these countries. Siu pointed out that the global currency’s position affords the United States significant power and influence, making it crucial for China and other nations to seek alternatives. Embracing Web3 technologies serves as a potential avenue for diminishing reliance on the US dollar and challenging the current financial status quo.While mainland China banned nearly all crypto activities in 2021, the country has remained one of the largest crypto-mining hubs worldwide, despite the prohibition. The proactive stance of Hong Kong in implementing crypto-friendly regulations has sparked hope that it could pave the way for China to eventually lift its long-standing ban.However, prominent figures within the Chinese establishment, such as CPIC Investment Management CEO Chenggang Zhou, have recently reiterated the country’s anti-crypto stance.The rapid adoption of cryptocurrencies and Web3 technology in Hong Kong provides a glimpse into broader developments unfolding in mainland China. Web3 is seen as a potent instrument for challenging US technological dominance, although whether that leads to China lifting its crypto ban is something that remains to be seen.