UBS Pioneers Tokenized Money Market Fund on Ethereum

Leading crypto exchange platform OKX has disclosed plans to discontinue its mining pool services, marking a strategic shift for the platform.Photo by engin akyurt on UnsplashService shutdown within one monthThe move, outlined by the firm in a notification to platform users on Friday, involves ceasing new user registrations effective immediately. Existing users will be granted access to the mining pool until Feb. 25. All mining pool-related services on OKX will be completely halted by Feb. 26. Mining Pools data reveals that OKX holds the 36th position among the top 70 bitcoin-focused mining pools, boasting a total hash rate slightly exceeding 496 TH/s. The decision to phase out mining pool services was attributed to "business adjustments," as communicated by OKX, though further details were not provided regarding the specific nature of these adjustments. Previously, OKX's mining pool supported various proof-of-work cryptocurrencies and offered staking services. However, over recent years, many supported assets had been terminated. Presently, the website only displays bitcoin, litecoin and ethereum classic pool services. Once accounted for 5% of all BTC blocks minedOKX's bitcoin mining pool had once accounted for around 5% of the blocks mined on the network. However, a setback occurred on October 16, 2020, when the crypto exchange temporarily suspended withdrawals due to one of its private key holders “cooperating with a public security bureau in investigations.” This led to a significant drop in hashpower connected to the pool, from 9,000 PH/s to 20 PH/s. The pool's current 528 TH/s now represents less than 0.0001% of bitcoin’s total hash rate. Industry trend formingThis strategic move by OKX reflects the evolving landscape of the crypto industry and the challenges faced by mining pools, particularly in the context of regulatory and operational adjustments within the market. The decision may even amount to a formative trend, given that global crypto exchange platform rival KuCoin made a similar move back in August. At the time, KuCoin outlined its plans to temporarily suspend its bitcoin and litecoin mining pools. Although it suggested a temporary halt to such services, there was no indication of when such mining-related services would resume. A company spokesperson stated:“We will see if it is needed to restart based on the market and users’ demand in the future.” Bitcoin halving pressuresOKX’s decision to discontinue mining pool services comes ahead of bitcoin's anticipated fourth halving in April, which is expected to reduce miner rewards from 6.25 to 3.125 BTC. The halving is casting a shadow over the mining sector. Miners' business cost per bitcoin mined is going to increase significantly. Some industry commentators speculate that the break-even point for miners will reach an unsustainable level. NASDAQ-listed Riot Blockchain, in particular, is being singled out as potentially being susceptible due to its cost structure. Miners have had a difficult couple of years, working their way through the bear market component of the last market cycle. That period saw leading miner Core Scientific declare bankruptcy. The company has since restructured and has been relisted on the NASDAQ.  

Hana Securities Opens Doors to Fractional Investments in Digital ComicsHana Securities announced yesterday that the South Korean securities company signed a memorandum of understanding (MOU) with digital comic platform Webtoonall. The purpose of this collaboration is to offer investors fractional investment opportunities.Photo by Yulia Matvienko on UnsplashFractional investments in digital comicsThrough the partnership, the two companies are set to open up the avenue for fractional investments in webtoons, a form of digital comics that originated in South Korea. Webtoonall will take the lead in developing and providing a platform for trading these products, while Hana Securities will handle the necessary account management and trust services required for these transactions.IP rights related to webtoonsWebtoonall is engaged in the development and operation of a digital trading platform that specializes in the trading of intellectual property (IP) rights associated with webtoons. Besides webtoons, the company also ventures into various content domains, such as movies and TV series. Furthermore, Webtoonall extends its portfolio by featuring content for experiential exhibitions through augmented reality technology. Moreover, the company is actively involved in the creation of educational solutions that harness the power of webtoons generated with the assistance of artificial intelligence.Film and TV adaptationIm Sang-soo, Vice President of Hana Securities, stated that numerous movies and TV series inspired by webtoons have enjoyed significant success in recent years, driving up interest in webtoons to unprecedented levels. Through this MOU, Hana Securities seeks to open up an opportunity for customers to invest in the works that have long piqued their interest.So far, Hana Securities has been actively establishing partnerships with various companies, including Print Bakery, Itcen, and Danal Entertainment. These collaborations aim to develop fractional investment platforms and security token projects, leveraging a wide range of underlying assets, such as artworks and mobile content.

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.