Koscom Partners with LG CNS to Develop Joint Security Token Platform

DWF Labs, a Singapore-based crypto sector investment firm and market maker, has decided to move its headquarters to Abu Dhabi in the United Arab Emirates (UAE). Alongside its current offices and headquarters in Singapore, the company has established offices in Dubai, Hong Kong, Switzerland, South Korea and the British Virgin Islands (BVI).Photo by Adnan Uddin on PexelsFocusing on MENA growthIn an X post published on Dec. 2, DWF Labs Co-Founder Andrei Grachev announced the change of headquarters location from Singapore to Abu Dhabi, stating: “In order to build a strong presence in the Middle East and run more RWA [Real World Assets] and financial services there, @DWFLabs is moving the headquarter to Abu Dhabi.” Grachev added that more news in this regard will be announced soon, advising stakeholders to stay tuned regarding the matter. In the past, the DWF Labs founder has highlighted the significance of the Middle Eastern market.  Earlier this year, he suggested that the Middle East and North Africa (MENA) market is “one of the fastest growing markets in the world,” while commenting on the firm’s partnership with the Dubai Multi Commodities Centre (DMCC), a Dubai-based ecosystem for blockchain and distributed ledger technologies.  That isn’t the firm’s only partnership within the UAE. In September, it emerged that it had partnered with Abu Dhabi-based Web3 venture capital firm Klumi Ventures. The firms intend to collaborate in relation to the offering of strategic crypto advisory services in the UAE, investments and market making, market education and in the facilitation of over-the-counter (OTC) deals and crypto asset options. Strategic positioningAt the time, Grachev said that the two firms were “strategically positioned to drive the digital transformation in the UAE,” with the ability to empower both new market entrants and established institutions to succeed within the digital assets arena. It appears that Grachev has been spending a significant amount of time in Abu Dhabi of late. On Sept. 25, he posted on X that he had arrived in Abu Dhabi and was “cooking something special for the industry.” He followed up on that more recently, posting a selfie on X on Nov. 25 with the caption “Chef cooking in Abu Dhabi.” The authorities in both Dubai and Abu Dhabi, as well as Singapore, have all been working towards attracting crypto startups to their cities. All of them have had some success in that regard, although DWF Labs’ move away from Singapore indicates how competitive this environment is and how mobile crypto startups are. ADGM crypto hubIn the case of Abu Dhabi, most crypto sector activity has happened within the city’s international financial centre (ADGM), which has attracted projects such as the Kaia DLT Foundation, stablecoin issuer Paxos, blockchain infrastructure firm Blockdaemon, crypto custodian Liminal, crypto venture capital fund Token Bay Capital and many others. DWF Labs was first founded in Singapore in 2022. It has established ecosystem funds and grants relative to projects such as EOS, Floki, Gala Chain, Klaytn and TON. Additionally, the firm has just announced the launch of a $20 million fund focused on meme coin projects.

Crypto.com, the Singapore-headquartered cryptocurrency exchange platform, has outlined that it has seen significant growth thanks to high-profile sports sponsorship and advertising. Reaping the rewardsThe company has established advertising partnerships with Formula 1 (F1) motor racing and the Ultimate Fighting Championship (UFC). These lucrative sponsorship deals have propelled the exchange into the spotlight of two massive fan bases, contributing to its expansion. In an interview with Cointelegraph last week, Eric Anziani, president and chief operating officer of Crypto.com, discussed the company's successful advertising campaigns with F1 and the UFC, as well as its naming rights deal for the Crypto.com Arena in downtown Los Angeles. In 2021, what was then the Staples Center was renamed to the Crypto.com Arena in a $700 million naming rights deal. Anziani expressed gratitude for these partnerships, emphasizing the importance of staying top of mind for users in the competitive cryptocurrency market.  That same year, the company signed a multi-year partnership deal with leading French football club Paris Saint-Germain (PSG), rolling out various PSG-related marketing activities since then.Photo by Austin Loveing on UnsplashBrand recognition benefitsMarket surveys conducted by Crypto.com indicate a high level of global awareness and brand recognition among retail cryptocurrency users. The exchange's logo prominently displayed during F1 races and UFC events has helped it reach millions of fans worldwide. ESPN reports an average of 1.11 million viewers per race for the 2023 F1 season in the United States alone, with global viewership exceeding one billion over the entire race calendar. Similarly, the UFC boasts a global audience, with some of its biggest fights attracting millions of pay-per-view viewers. Anziani highlighted the effectiveness of these partnerships in bringing people into the cryptocurrency space.  User base approaching 100 millionThese partnerships have significantly contributed to Crypto.com's growing user base, which is approaching 100 million users in 2024, up from an estimated 80 million in the previous year. Anziani discussed the factors that drive users' choice of exchange platforms, emphasizing the importance of compliance, security, convenient access to cryptocurrency and competitive fees. He noted that different users prioritize different aspects based on their trading preferences and requirements. The firm is not alone in pursuing high-profile sports sponsorship deals. Rival platform OKX has an ongoing sponsorship deal in place with Manchester City Football Club in the English Premier League (EPL). It also has doubled down recently on the sponsorship of F1 racing team McLaren. Other notable partnerships include crypto gambling platform Stake.com’s sponsorship of Sauber F1, crypto exchange platform Kraken’s deal with Williams F1 and BingX’s sleeve sponsorship agreement with Chelsea football club in the EPL. High-profile marketing initiatives are alive and well, although in a much more sober way than in 2022 when six crypto companies featured in Super Bowl advertising in the United States. Kraken’s chief marketing officer, Mayur Gupta, recently stated that the Super Bowl is no longer an effective means of promotion for crypto companies.  

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.