Forkast Labs streamlines operations following merger

Sega Curbs Interest in ‘Boring’ Blockchain GamingJapanese video game behemoth Sega Corp., once an advocate for blockchain gaming, is reevaluating its involvement in the sector as the global crypto industry continues to face challenges.In a recent interview with Bloomberg, Shuji Utsumi, the Co-Chief Operating Officer of Sega, revealed that the company will withhold its major franchises from third-party blockchain gaming projects to protect the value of its content.Photo by Pat Krupa on UnsplashHalting blockchain game developmentAdditionally, Sega is temporarily halting the development of its own blockchain games. These decisions mark a significant shift for the 60-year-old gaming studio, which previously joined other industry players in exploring the potential of blockchain technology to enhance game appeal. However, the recent collapse of the digital currency market has dampened enthusiasm for such initiatives.While Sega withdraws from blockchain gaming, it does plan to allow external partners to utilize its lesser-known characters, such as those from Three Kingdoms and Virtua Fighter, for non-fungible tokens (NFTs). NFTs serve as digital asset ownership certificates.Sega’s intention to venture into the NFT community drew criticism from some gamers who viewed crypto technology as environmentally harmful. Utsumi emphasized the importance of creating enjoyable gaming experiences and expressed his skepticism about the “play-to-earn” model associated with blockchain games, describing such games as “boring.”Reservations on Web3 adoptionIn addition to the uncertainties surrounding blockchain gaming, Utsumi expressed reservations about the adoption of Web3 technology in Sega’s upcoming “super game” initiative. This initiative involves the release of high-budget online multiplayer games starting in 2026. Sega is currently assessing whether the technology will gain traction in the gaming industry before committing to its implementation.Sega’s strategic shift reflects a broader cooling trend relative to the Web3 concept, which implicates an internet built on blockchain technology. Despite attracting significant investments in the past, Web3 has faced criticism and diminishing interest from major players like Ubisoft.However, Sega will continue to offer its lesser franchises to several blockchain games that will be announced later this year. The company also plans to invest hundreds of millions of yen in related projects, as the technology still holds value in enabling the transfer of characters and items between different games. Sega remains open to further involvement in blockchain gaming as the technology matures.Big brand cautiousnessUtsumi acknowledged that the views expressed by blockchain advocates may seem extreme to many in the video game industry. Nevertheless, he recognized the importance of risk-takers who pioneer new technologies, referring to them as the “first penguins” who should not be underestimated.Sega’s cautious approach reflects the need to strike a balance between innovation and maintaining the core aspects of enjoyable gaming experiences, while closely monitoring the evolution of blockchain and Web3 technologies in the industry.It’s also likely that the gaming sector’s most coveted brands will remain cautious on blockchain gaming while newcomers like Animoca Brands can better afford to be the risk takers that drive blockchain gaming forward. Earlier this week, Animoca’s Co-Founder Yat Siu said that he was bullish where blockchain gaming is concerned.

Socket, a cross-chain infrastructure protocol, and its interoperability bridging platform, Bungee, have restarted operations following a temporary pause prompted by an exploit that led to the apparent theft of $3.3 million.Photo by Anna Tarazevich on PexelsSecurity incidentTaking to the company’s Discord, Socket team hospitality lead Taylor Melvin clarified that it had “experienced a security incident which affected wallets with infinite approvals to Socket contracts.” The incident, which occurred on Tuesday, involved an unknown attacker draining millions worth of stablecoins and other tokens from the Bungee bridging aggregator. The attackers targeted wallets with infinite approvals to Socket contracts, exploiting authorizations for blockchain-based tools that allow applications to access tokens in a user's wallet. Security researcher "@speekaway" was the first to flag the exploit on Tuesday. The attacker's wallet, connected to the exploit, held nearly $3 million in ether (ETH) and $300,000 worth of other tokens. By 2:47 p.m. ET, the attack seemed to have ceased, with the researcher recommending users to revoke approvals for Socket to safeguard their assets. Pausing contractsIn response to the security breach, Socket announced the pause of affected contracts on Tuesday at 3:15 p.m. ET. The project's team promptly identified and addressed the issue, taking swift action to mitigate the exploit's impact. @speekaway chimed back in once contracts had been paused, writing:”Think this pause fixed it, very likely no more attacks are possible. So if you are currently freaking out about revoking you can probably relax.” Normal service returnsAs Socket paused activity during the incident, preventing further propagation of the attack, developers worked to fix the issue. Early Wednesday, Socket developers announced that the problem had been resolved, and normal activities had resumed. The team also stated that plans for compensation were in progress. Cross-chain bridges, like Socket's Bungee, facilitate token transfers between different blockchains but remain susceptible to exploitation. Blockchain security and data analytics company PeckShield confirmed that at least $3.3 million had been lost, highlighting the need for enhanced security measures in the rapidly evolving blockchain ecosystem. The exploit involved the exploitation of a recently added route, which has since been disabled. The attacker targeted users who had over-approved Socket, draining funds up to the limit of their approval. This incident follows the $81 million hack of Orbit Chain, a cross-chain bridge connecting Ethereum to other networks, earlier in January. Cross-chain tools' complexity contributes to the frequency of such attacks, emphasizing the importance of understanding the security measures in place when utilizing these bridges. In a message to CoinDesk, Sergey Nazarov, co-founder of Chainlink, emphasized the need for users to scrutinize the security of their chosen bridge, considering the various levels of cross-chain security. With the complexities involved, users are encouraged to be vigilant and informed about the security spectrum of the bridges they employ. Socket was founded by Indian duo Rishabh Khurana and Vaibhav Chellani. In September, the company raised $5 million, with funding coming from Framework Ventures and Coinbase Ventures. 

South Korean authorities will require homebuyers to disclose funds originating from cryptocurrency sales, a move aimed at increasing transparency in the nation's tight real estate market. The new rule is part of a wider government effort to address housing affordability, which is particularly pronounced in Seoul, and to integrate digital assets into its regulatory framework. The change, announced on Sept. 7 as part of new housing supply measures, will alter the mandatory funding plan submitted during property transactions. Proceeds from digital assets will be listed as a distinct category, similar to funds from stocks or bonds. Officials are also expanding loan disclosure requirements to include business loans and overseas borrowing, closing potential financing loopholes.Photo by Traxer on UnsplashImpact of asset volatility on property valuesThe policy follows growing evidence that volatility in assets like cryptocurrency can spill over into the property market. A 2024 study cited by Maeil Business Newspaper highlighted that both the COVID-era stock rally and Bitcoin's 2023 price surge had a discernible impact on housing values. According to Yu Jung-suk, a professor at Dankook University, apartments in Seoul's affluent Gangnam district are particularly sensitive to fluctuations in Bitcoin and the KOSDAQ index. He noted that high-profile property acquisitions by young crypto investors, even if few in number, can significantly sway market sentiment. Professor Yu suggested that regulators may need more comprehensive tools to manage the risks connecting different asset classes. The government's new measures also seek to cool the capital's housing market, where prices have continued to rise despite a slowdown in growth. In contrast, prices in areas outside Seoul have been declining since 2022. To address the supply-demand imbalance, officials plan to begin construction of 1.35 million new homes in the Seoul metropolitan area between 2026 and 2030. Stablecoin regulation and CBDC trials advanceBeyond real estate, officials are developing a formal regulatory structure for stablecoins. The Presidential Commission on Policy Planning is reportedly considering a model where a consortium of banks and fintech firms would be granted rights to issue a won-pegged stablecoin. Supervision for this new system would fall to a proposed Financial Stability Council, a body intended to serve as a central coordinator for financial policy, comprising the finance ministry, the Bank of Korea, and other regulators. The initiative aims to combine the stability of the traditional banking sector with the innovation of non-bank financial companies. The evolving regulatory environment is attracting attention from global industry leaders. Executives from Tether, the issuer of the USDT stablecoin, met with Shinhan Financial Group CEO Jin Ok-dong in Seoul on Sept. 8. While Tether representatives stated they were monitoring the regulatory climate, they confirmed no specific business plans were discussed. Separately, the Bank of Korea is moving forward with digital currency experiments. In partnership with government agencies and six major commercial banks, the central bank will launch a pilot program to test the use of a digital currency for distributing state subsidies and vouchers.