Metaplanet boosts Bitcoin holdings during economic uncertainty

Crypto Winter Halves Korean Bank Fee ProfitsLast year, Korean banks collected only half the amount in fees from crypto exchanges compared to the previous year, according to Korean news agency News1.©Pexels/PixabayDeclining bank fee profitsFiles submitted by the Korean Financial Services Commission to Yun Chang-hyun, a member of the ruling People Power Party, revealed that the five major Korean crypto exchanges paid 20.4 billion KRW (~$15.6 million) in fees to banks last year, which is a 49.4% decrease from the previous year’s 40.3 billion KRW (~$30.7 million). These exchanges (Upbit, Bithumb, Coinone, Korbit, and Gopax) have established agreements with banks to hold real-name bank accounts, which is a legal requirement for exchanges that wish to conduct trades in Korean won.Banks that have provided real-name accounts to crypto exchanges saw an increase in fee profits from 2019 to 2021. However, due to a decline in market sentiment last year, trade volume decreased, resulting in a reduction of bank fees. Last year’s crypto winter is attributable to various factors, including uncertainties in the global economy and collapses of crypto enterprises such as Terraform Labs and FTX.Fees by exchangesIn terms of fees paid to banks by exchanges last year, the largest exchange, Upbit, paid 13.9 billion KRW (~$10.6 million) in fees to Kbank, a mobile banking service provider. Bithumb and Coinone paid 4.9 billion KRW (~$3.7 million) and 989 million KRW (~$750,000) in fees to NH Bank, respectively. It is worth noting that Coinone switched its bank from NH Bank to Kakao Bank last November, paying 72 million KRW (~$55,000) to Kakao Bank in the fourth quarter. Korbit paid 486 million KRW (~$370,000) and 19 million KRW (~$14,500) to Shinhan Bank and Jeonbuk Bank, respectively. Gopax partnered with Jeonbuk Bank to obtain its real-name accounts in April last year.Lawmaker Yun said it was apparent that partnerships were being forged between only a handful of banks and crypto enterprises. Current regulations have to be reviewed to encourage more banks to participate in various blockchain businesses, he added.

DeSpread, a Korea-based consulting firm specializing in Web3 and blockchain, announced today its partnership with Arbiturm, a Layer 2 network built on the Ethereum blockchain. This news was reported by local media outlet Etoday. Through the partnership, DeSpread aims to create an ecosystem for Arbitrum developers, seek collaboration with Korean enterprises and attract more onchain users. Photo by Sigmund on UnsplashArbitrum is one of the largest Layer-2 blockchains operating on the Layer-1 Ethereum network, designed to address the scalability issue of the ETH network. DefiLlama, a DeFi total value locked (TVL) aggregator, shows that Arbitrum has the fourth largest TVL among all chain networks, and the largest TVL among ETH-based Layer 2 networks. To foster Arbitrum-based services, DeSpread plans to distribute research content and development guides to Korean developers in an effort to bring down the language and cultural barriers when working with Arbitrum. Regular events featuring Arbitrum experts are also in store, set to be held both online and in-person formats. These efforts are intended to help companies seeking to adopt blockchain technologies collaborate with Arbitrum.   Forging an ecosystem within the Korean ETH communityJeff Kim, Head of operation at DeSpread, expressed his excitement about the partnership with Arbitrum, saying that Arbitrum is the network showing the strongest performance among all Layer 2 solutions on the ETH network. He added that Despread plans to support Arbitrum so that it can create its ecosystem within the Korean Ethereum community and raise its brand awareness. Nina Rong, Head of Ecosystem Development at Arbitrum, stated that Arbitrum has long been keeping an eye on Korea’s blockchain ecosystem. The partnership will help Arbitrum strengthen its position in the Korean market and shape a developer-friendly environment for individuals and businesses, she said.

Report: Vietnamese Crypto Investors Rely Heavily on ReferralsWhile Vietnam has been leading the way in terms of cryptocurrency adoption among ordinary people, the decision-making process of Vietnamese crypto holders also sets them apart, according to a new report.The report, a collaboration between Vietnamese venture capital firms Kyros Ventures and Coin68, in association with Hong Kong-based Web3 firm Animoca Brands, reveals a striking trend. 76% of Vietnamese crypto holders base their investment choices on recommendations from friends and acquaintances.Photo by Silver Ringvee on UnsplashThe importance of referralsReleased on Wednesday, the report relied upon a survey involving 3,300 participants. A staggering 75.5% of respondents admitted that their crypto investment decisions were significantly “influenced by recommendations or referrals.” This figure stands at 2.5 times the equivalent percentage reported in the United States.Aside from word of mouth, Vietnamese crypto investors rely heavily on self-study, community groups, and media news as primary sources of information relative to crypto. Nearly 50% of survey participants indicated their reliance on these methods for staying informed about the crypto market.Market sentimentThe “Vietnam Cryptocurrency Market Report” for the first half of 2023 also sheds light on the sentiments of the crypto community. It indicates that 70% of survey participants believed that the bear market has already concluded or is approaching its end.Notwithstanding that, another data point could be interpreted such that market participants are still exercising an abundance of caution. Around 60% of respondents confirmed that they hold stablecoins as a significant constituent of their portfolios. Stablecoins are widely used by traders when exercising risk-off positioning.Interestingly, another finding of the report is the fact that an overwhelming 75% of respondents expressed a desire for increased regulatory intervention within the crypto sector. It’s unlikely that this is coincidental, given the number of high-profile crypto platform failures that took place in 2022.Vietnam leading adoptionChainalysis data confirms Vietnam’s dominant position globally in terms of crypto adoption and its impressive second-place ranking in decentralized finance (DeFi) adoption. Remarkably, more than 19% of adults in Vietnam own digital assets while Vietnam ranks among the top five countries when it comes to trading volume on global crypto platform Binance.However, this level of adoption stands in contrast with the limited educational infrastructure supporting it. Only nine educational institutions in the country offer blockchain courses.The survey also probed into user behavior within various crypto domains. The findings show a significant engagement in DeFi activities, with nearly 90% of respondents participating. By the end of 2022, there were in excess of 200 active blockchain projects in operation within Vietnam.GameFi, non-fungible tokens (NFTs), centralized finance (CeFi), and SocialFi are also popular among the Vietnamese crypto community, with engagement rates of between 55% and 91%. The research also found that users maintain a balanced preference between centralized and decentralized exchanges.The report concludes by highlighting the rapidly evolving local tech landscape and its synchronization with global trends. Largely, the report points to a positive sentiment in Vietnam relative to the future of cryptocurrency and Web3 innovation in the country.