CPLABS and Protocol Capital to collaborate on blockchain-enhanced autonomous driving in Qatar

Bitmain Pays Employees Following Salary SuspensionBitmain, the Beijing-based Bitcoin mining equipment manufacturer, has somewhat resolved its cash flow issues, having recently suspended employee salaries in response to ongoing financial struggles and sluggish progress in its mining operations.Photo by Thought Catalog on UnsplashCash flow challengesNews of the payment issue emerged via employee reports online on Monday. The suspension encompassed both performance-based and basic wages, affecting all Bitmain personnel. The dire situation has marked a critical juncture for the ASIC manufacturer, which once held a commanding 70% share of the global Bitcoin mining machine market.Chinese crypto reporter Colin Wu had also outlined the firm’s difficulties on social media. In a subsequent post on X (formerly Twitter), Wu stated:”On the afternoon of October 7, Bitmain has repaid September wages, and stated that it only did not pay the performance salary of some people. It has also been repaid, and the basic salary has been released normally on September 30.”More recent reports by local news media in China indicated that the firm has proceeded to pay part of its staff salaries.Internal conflictsBitmain’s financial woes are not new. The company has been plagued by internal conflicts between its co-founders, Wu Jihan and Zhan Ketuan, resulting in a debilitating power struggle that severely eroded its market dominance. Earlier efforts to restore financial stability included a restructuring of employee compensation in the first quarter of this year. Under this reform, the original fixed salary was divided into a basic salary and a performance-based component linked to rank.Regrettably, these measures have proven insufficient to reverse Bitmain’s fortunes. In a company announcement issued in September 2023, Bitmain acknowledged that its operating cash flow had plunged into negative territory, and the performance of its mining machines fell short of expectations.Consequently, the company suspended employee salaries, with the prospect of resuming payments contingent upon developments after the October 7 holiday.It emerged in April that the firm had been fined for tax code violations in China.Core Scientific dealIn August, Bitmain explored the possibility of acquiring an equity stake in Core Scientific, a prominent North American crypto-mining company, as part of Core Scientific’s bankruptcy restructuring plan. This proposed agreement, pending final documentation and court approval, entails Bitmain acquiring 27,000 S19j XP Bitcoin miners from Core Scientific.The Core Scientific deal represents a potential lifeline for Bitmain. Nevertheless, the suspension of employee salaries underscores the prevailing uncertainty surrounding the company’s future. Whether the completion of the Core Scientific transaction will usher in the much-needed financial turnaround for Bitmain remains uncertain as the company grapples with its ongoing financial challenges.Bitmain’s decision to suspend employee pay highlights the gravity of the situation and the urgency of finding a sustainable solution to its financial woes. The outcome of the Core Scientific deal could determine Bitmain’s fate as it strives to regain its once-dominant position and secure its financial stability. In the meantime, the firm continues to develop the latest generation of Bitcoin mining equipment.

Animoca Brands Secures Funding to Expand Web3 Identity ProjectHong Kong-based Web3 firm Animoca Brands has successfully raised $20 million in a recent funding round, signaling a significant boost for its Web3 identity project, Mocaverse.Photo by Markus Winkler on UnsplashCMCC Global leads funding roundThe funding, announced via a blog post published to the firm’s website on Monday, was spearheaded by CMCC Global, a Hong Kong-headquartered venture capital firm that focuses solely on blockchain-related investments. Additionally, the round saw participation from prominent investors including Kingsway Capital, Liberty City Ventures, and GameFi Ventures.Prominent individuals within the industry also contributed, including Aleksander Larsen, Co-Founder of Sky Mavis, the developer of well-known blockchain play-to-earn game Axie Infinity, and Gabby Dizon, Founder of Yield Guild Games.Mocaverse, Animoca Brands’ ambitious project, is dedicated to the development of Web3-native tools catering to the gaming and entertainment sectors. This funding round points to the growing recognition of Web3’s potential to transform digital identities, particularly so within the areas of gaming, culture, and entertainment.Aiming to redefine Web3 user engagementMocaverse aims to redefine how users engage with these sectors by providing innovative solutions and unique experiences. One noteworthy aspect of this funding initiative is Animoca Brands’ commitment to granting investors “a free-attaching utility token warrant on a 1:1 dollar basis.” This strategic move not only bolsters investor confidence but also aligns their interests with the long-term success of Mocaverse.The injection of capital will be instrumental in advancing the Mocaverse project, with the imminent launch of Moca ID being a key milestone. Moca ID, a non-transferrable NFT collection, empowers users to create and nurture their on-chain identities, offering exclusive access to the Mocaverse ecosystem and the opportunity to earn loyalty points through active participation.Yat Siu, Co-Founder and Executive Chairman of Animoca Brands, who also participated in this funding round on a personal basis, expressed his vision for Mocaverse, stating:“The ongoing evolution of the Internet involves a shift from hierarchical power structures to autonomous ones, and the DAO-based approach of Mocaverse ensures that its community will be focused on driving innovation and collaboration across the broader Animoca Brands ecosystem.”Siu emphasized that Mocaverse’s scope extends beyond individual empowerment. It is poised to serve as a digital identity, reputation, and loyalty system for various decentralized organizations.Web3 thought leadershipThe Animoca Brands Co-Founder is catching the public eye with his commentary and thought leadership relative to the fledgling Web3 sector. In an interview last week, Siu voiced his belief that Saudi Arabia is proactively nurturing blockchain gaming, revealing that Animoca itself has partnered with the Gulf state on a Web3-related project.Giving a keynote speech at the Ethereum Community Conference (EthCC) in Paris in July, he voiced his opinion that Hong Kong’s recent crypto development has been sanctioned by mainland China.The $20 million raised signifies a significant stride toward realizing the potential of Web3 technology in shaping the future of gaming, culture, and entertainment. With Mocaverse at the forefront, Animoca Brands is poised to attempt to create a vibrant ecosystem where users can actively engage, redefine their digital identities, and unlock new economic opportunities, all within a collaborative and decentralized framework.

Bitcoin Miners Likely Selling at $28K Level, Says MatrixportAccording to a report by Singapore-headquartered digital asset financial services provider Matrixport, Bitcoin (BTC) is facing selling pressure at the $28,000 price level, possibly due to miners offloading their newly mined coins.The report, cited by CoinDesk on Friday, suggests that miners are being compelled to liquidate their inventory as profit margins have contracted in recent weeks.Photo by Pixabay on PexelsHashrate all-time highMining has become an intensely competitive and often unprofitable endeavor due to the ongoing rise in Bitcoin miner difficulty. The hashrate, or measure of how easily miners can discover a new block of Bitcoin reached an all-time high earlier this week. Markus Thielen, Head of Research at Matrixport, noted that given the current input cost and potential revenue expectations, most machines produced before 2022 appear to be unprofitable.“At the current input cost and potential output revenue expectations, most of the machines produced before 2022 appear to be unprofitable,” Thielen wrote.Forced sellingConsequently, miners are forced to sell their inventory at the current level rather than holding out for higher prices, which Matrixport anticipates. The report highlights the significant upside potential for miners if Bitcoin prices were to increase by 10% or more, as profitability could quadruple.The narrowing profit margins for miners reflect the challenges they face in a highly competitive market. As mining difficulty continues to rise, miners must allocate more resources and computing power to mine new coins, reducing their profitability. The situation is particularly tough for miners operating older machines, which are less efficient and more costly to run.The selling pressure exerted by miners can have a short-term impact on Bitcoin’s price. However, Matrixport’s analysis suggests that if Bitcoin experiences a notable price increase, miners could see a substantial improvement in their profitability. This potential upside convexity creates an incentive for miners to continue their operations and withstand the current market conditions.Ordinals bring increased feesOn the other hand one recent development that is assisting miners is the increase in transaction fees, with the development of Bitcoin Ordinals and BRC-20 tokens over the course of the past six months. That interest seems to be ongoing, and if anything we’re likely to see further development of tokens running on top of the Bitcoin blockchain. On Thursday, Seychelles-based crypto trading platform OKX proposed a new BRC-30 token standard which would enable staking of those tokens, alongside staking of bitcoin.Singapore-based Matrixport is a portfolio company of crypto investment venture capital firm Foresight Ventures, which is also headquartered in Singapore. The firm provides a suite of products that it is positioning to be innovative and easy to use, offering an all-in-one crypto financial services platform, enabling users to earn, invest, loan, and trade digital assets.The Matrixport report indicates that miners are likely selling their Bitcoin at the $28,000 level due to squeezed profit margins. While this selling pressure may affect short-term price dynamics, the potential for increased profitability if Bitcoin prices rise significantly provides miners with an optimistic outlook for the future.