Circle CEO Sees Role for Yuan-Backed Stablecoins in Hong Kong

Cake Group co-founder files application to wind up company in SingaporeChua U-Zyn, the co-founder and Chief Technology Officer of crypto firm Cake Group, has officially applied to the Singapore High Court to initiate the winding-up process for the company.A winding-up notice appeared in Singapore’s The Straits Times on Thursday. U-Zyn is being represented by law firm Rajah & Tann on the matter. The court will now decide whether to grant this application, which was filed on Dec. 1.Photo by Kelvin Zyteng on UnsplashFinancial strugglesCake Group is the parent company of the crypto platform Bake, which made headlines last month for announcing significant staff reductions affecting 30% of its workforce. Bake is an automated market maker (AMM) and decentralized exchange (DEX) that revolves around Binance’s BNB Smart Chain (BSC).In existence for some five years, the platform claims to have over 1 million users worldwide, retaining over $1 billion in customer assets and having achieved reward payouts to date of $411 million.Cake Group’s financial struggles have been evident, with its revenue plummeting by over half to $266 million in 2022, while profits experienced a fivefold decrease to $23.5 million during the same period. The company generates income through transaction fees.A hearing for creditors or opposing parties is scheduled for Dec. 22, providing an opportunity for stakeholders to voice concerns or contest the winding-up process.Internal disputeWhile the specifics behind U-Zyn’s winding-up application remain unclear, the decline in financial performance and the recent layoffs are undoubtedly contributing factors.It’s understood that CEO Julian Hosp learned about the filing on Dec. 6 and has since emphasized that the company is actively working with legal counsel to challenge the application. Hosp will challenge this request in court, asserting that the company’s finances are strong and unrelated to the dispute.Taking to the X social media platform on Thursday, Hosp wrote:”Disappointed to see U-Zyn filing a request on December 1st” . . . “For me, it’s selfish that he’s prioritizing his own interests over those of our customers, employees, and partners, instead of resolving it internally.”Hosp added that U-Zyn’s application is unrelated to the company’s finances and that the firm is financially solvent.Former employees, speaking anonymously to Tech in Asia, expressed surprise at the escalating situation, describing the co-founders as emotionally charged and seemingly unable to safeguard their investment.U-Zyn opposed to layoffsThe court filing under Section 125(1)(i) of the Insolvency, Restructuring and Dissolution Act of 2018 adds an element of uncertainty. Unlike other sections that typically specify reasons for winding up, this particular section allows for liquidation if “the Court is of the opinion that it is just and equitable that the company be wound up.”Hosp clarified that the application is not based on Cake Group’s inability to pay its debts, emphasizing that day-to-day operations continue at full capacity.It’s understood that the ongoing dispute between U-Zyn and Hosp stems from internal disagreements, particularly related to cuts within the company’s engineering division. Chua claimed Hosp excluded him from decisions, especially concerning the recent layoffs.Despite the internal discord, Hosp stressed the company’s commitment to resolving the dispute swiftly and maintaining its operational capabilities. Undeterred by his fellow co-founder’s actions, he published a blog post on Thursday, outlining his vision for the Cake Group moving forward.

DBS Introduces Metaverse Game to Tackle Global Food WasteDBS, Singapore’s largest bank, has unveiled an innovative concept within the metaverse for its DBS BetterWorld initiative, focusing on the critical issue of global food waste.In a press release which it published on Thursday, the bank revealed that this “gamified adventure” is designed to showcase the strategies that Businesses for Impact are employing to tackle the ever-pressing global food waste challenge. Businesses for Impact are an initiative driven by the DBS Foundation that champions for-profit enterprises that promote innovative solutions to effect positive environmental or social change.Photo by Joshua Hoehne on UnsplashTackling a global issueData from the United Nations suggests that a staggering 1.3 billion tons of food, equivalent to one-third of the world’s total food production, goes to waste each year. Within this conceptual metaverse, players are tasked with a series of engaging activities inspired by five businesses supported by the DBS Foundation. These entities offer unique approaches to curbing food waste.Project collaborationSingapore-headquartered brewery business Brewerkz is focused on up-cycling brewers’ spent grains as part of the project. Breer, a Hong Kong startup transforming surplus bread into craft beer is also participating. The project also sees participation from another Hong Kong-based business, GreenPrice, which specializes in selling food close to or just past their best-before dates.Edible Garden City, a start-up that aims to make urban farming and edible gardening more accessible in cities, and Rooftop Republic, which converts underutilized spaces into urban farms, complete the list of five “Businesses for Impact” relative to this particular project.Metaverse ESG potentialKaren Ngui, Head of Group Strategic Marketing and Communications at DBS and a board member of DBS Foundation, emphasized the metaverse’s potential to enhance awareness and address crucial Environmental, Social, and Governance (ESG) concerns.Ngui remarked: “With DBS BetterWorld, we have chosen to delve into the challenges of food waste and food resilience, issues that DBS and the DBS Foundation have been championing, in a unique and engaging way.” She added that as metaverse technologies mature, they aspire to bridge virtual initiatives with tangible real-world impacts.Players based in Singapore will be rewarded with exclusive incentives that can be redeemed through special QR codes accessible via DBS PayLah!. This integration of real-world rewards into the metaverse experience adds a new layer of interaction and excitement for participants.Embracing the metaverseThis is not DBS’ first foray into the metaverse. It has collaborated with The Sandbox metaverse platform previously, participating in its Lion City initiative, a virtual metaverse neighborhood modeled on Singapore. Work on BetterWorld has been ongoing in conjunction with The Sandbox development team since last year.DBS’ creative endeavor within the metaverse not only sheds light on the urgent issue of global food waste but also demonstrates how technology and gaming can be harnessed to educate, raise awareness, and drive positive real-world change.As the metaverse continues to evolve, DBS’ initiative will likely serve to inspire other institutions to leverage the metaverse for various initiatives with the objective of achieving real-world impact.

BitMEX Returns to Derivatives Arena with Prediction MarketBitMEX, a name synonymous with the early days of crypto derivatives, has made a return to its core focus with the launch of a prediction market.Through this new product, the company aims to captivate traders by offering them the opportunity to wager on real-world events, effectively extending the boundaries of crypto derivatives trading.Photo by Amjith S on UnsplashBetting on the outcome of real-world eventsThis shift in direction is being overseen by Stephan Lutz who took the helm as CEO and group CFO in 2021.In a blog post announcing the product launch on Tuesday, the firm expressed its vision for the prediction market, asserting that it would introduce an entirely new dimension to crypto derivatives trading.The product is designed to diversify traders’ portfolios and yield returns based on predicting the outcomes of real-world occurrences, an offering that the company feels holds significant promise. Especially in bear markets characterized by subdued volatility, the prediction market could serve as a valuable instrument for traders seeking to enhance their strategies.Novel initial wagersBitMEX’s inaugural move into the prediction market sees the firm offer an array of contracts for traders to explore. Among those initial offerings are contracts enabling wagers on various outcomes, such as the percentage recovery rate of FTX’s bankruptcy claims and the likelihood of the US Securities and Exchange Commission (SEC) approving a Bitcoin exchange-traded fund (ETF) by October 17. These contracts underscore BitMEX’s intent in covering a wide spectrum of topics, with the firm promising to introduce more options in the near future.The prediction market holds the potential to revolutionize the way traders engage with real-world events, introducing a novel form of participation that transcends traditional trading boundaries. This launch has significant potential for BitMEX as it endeavors to reclaim its position in the competitive crypto derivatives market.Change of strategyUnder the stewardship of former CEO Alexander Höptner, BitMEX embarked on a diversification strategy termed “beyond derivatives,” delving into areas like spot trading and exploring new business avenues. However, the departure of Höptner in October ushered in a change in direction for the firm. The introduction of the prediction market now symbolizes BitMEX’s return to its foundational business model, with a renewed focus on derivatives.In May, the Seychelles-headquartered firm introduced perpetual contracts relative to SUI and PEPE tokens. Later that month, it launched a dedicated virtual asset service to Hong Kong-based customers. Hong Kong was its original center of operations when the company was first formed. It has since moved those operations to Singapore while maintaining its corporate presence in the Seychelles.BitMEX’s fresh foray into the derivatives space not only signifies a return to its roots but also presents traders with a means to trade relative to real-world events. By offering an eclectic range of contracts, the platform seeks to attract traders who crave more than conventional crypto trading. This strategic move could serve as a catalyst for BitMEX as it strives to regain its foothold in the competitive crypto sector.