AndUs to implement ZK rollups on Its public permissionless blockchain

Hong Kong's debut of Bitcoin and Ether exchange-traded funds (ETFs) faced a tough start on their first day of trading, with volumes falling far below the record-breaking figures seen in the United States earlier in January 2024. Tough act to followThe launch of six spot Bitcoin and Ether ETFs, managed by prominent firms including China Asset Management, Harvest Global, Bosera and HashKey, marked a significant milestone for Hong Kong's cryptocurrency market. However, initial trading volumes indicated a notable contrast with the groundbreaking volumes witnessed during the debut of spot Bitcoin ETFs in the United States. On their inaugural day, the total trading volume of the six new crypto ETFs in Hong Kong amounted to 87.58 million Hong Kong dollars ($12 million). This figure, while significant, paled in comparison to the $4.6 billion trading volume recorded for U.S. spot Bitcoin ETFs on their first day, making the U.S. investment funds a tough act to follow. Despite the disparity, industry experts like Justin d'Anethan, head of APAC business development at crypto market maker Keyrock, viewed the Hong Kong ETFs' performance positively within the local market context.Photo by Simon Zhu on UnsplashAbsence of stakingD'Anethan told The Block that while the trading volume in Hong Kong didn't match the U.S. debut, it reflected a noteworthy level of investor interest, particularly considering the market dynamics in Hong Kong, which lacks access to mainland China investors. Bloomberg ETF Analyst Eric Balchunas suggested on X that people expected too much and that in reality, it was a good first day’s trading. In an interview with Bloomberg, China Asset Management CEO Yimei Li stated that the products open the door “for a lot of RMB holders.” They didn’t show up on day one as d’Anethan pointed out, and he further noted that the absence of staking rewards for Hong Kong's spot Ether ETFs was a notable factor affecting investor decisions. Data from the Hong Kong Stock Exchange (HKEX) cited by Cointelegraph illustrated the relatively subdued performance of the newly launched ETFs. Among them, the Bosera HashKey Bitcoin ETF and Ether ETF recorded modest trading volumes, while the China Asset Management (CAM) Bitcoin ETF demonstrated stronger traction, attracting significant trading volume by the closing bell. Prior to trading, CAM's subscription size for its spot Bitcoin and Ether ETFs drew substantial interest, totaling $140 million during the initial offering period. This heightened anticipation was further fueled by the success of HKEX's cryptocurrency futures ETFs, which garnered $529 million in net inflows in the first quarter of 2024. Fee exemptionsIn an effort to stimulate investor participation, local fund managers and brokerages in Hong Kong offered fee exemptions for the new crypto ETFs. Harvest waived its management fee for six months, while Bosera extended a fee waiver period of four months. Despite the optimism surrounding the launch, potential access to the ETFs by mainland Chinese investors remains uncertain, subject to Know Your Customer (KYC) policies. Meanwhile, the Securities and Exchange Commission's (SEC) stance on Ether ETFs in the U.S. complicates the prospects of listing such products in the near future. While Hong Kong's debut of Bitcoin and Ether ETFs faced challenges in matching the fervor witnessed in the U.S., it nevertheless represents a significant step forward for the region's cryptocurrency market, signaling growing interest and participation in digital asset investments.

Korean Game Developers to Benefit from Higher NFT Trading VolumeKorean game companies preparing to launch web 3.0 games are expected to benefit from the higher non-fungible token (NFT) trading volume, according to Korean news outlet Financial News.©Pexels/Tony LitvyakA report from decentralized app analytics platform DappRadar states that the NFT trading volume reached $4.7 billion in the first quarter this year, up 137.04% from the previous quarter. This volume is the highest since the second quarter of 2022.This year’s strong NFT market so far is good news for Korean game developers, which were negatively affected by a slowdown in the crypto industry last year due to various factors, including the Terra USD collapse and the bankruptcy of crypto exchange FTX.In fact, many game and content companies are expanding their ecosystems by tokenizing their game items and intellectual property (IP) rights.NexonOne such example is Nexon, the developer of the massively multiplayer online role-playing game MapleStory. Based on its IP rights, Nexon is creating the MapleStory Universe, an NFT-based blockchain ecosystem. The MapleStory Universe will enable trading of NFTs, which users can obtain while hunting or accomplishing quests. Its first major project, a personal computer game named “MapleStory N,” will be launched to attract gamers worldwide.NetmarbleNetmarble, another Korean game company, will launch Modoo Marble 2: Metaworld on Wednesday for global gamers. The popular mobile board game will be rolled out on the MBX ecosystem operated by Netmarble’s blockchain subsidiary Marblex. Participation in the board game and involvement in the Metaworld would allow users to earn Meta Cash as rewards, which can then be swapped for different virtual assets. The trade of buildings and land within the game would likely be facilitated through the use of NFTs.Com2uS HoldingsCultural content company Com2uS Holdings is also making its own efforts to expand its blockchain ecosystem. Its subsidiary Com2uS Platform recently forged a partnership with animation firm Daewon Media to strengthen its NFT business based on Daewon’s popular IP rights.A game industry official said NFT trading can address issues that caused concerns for gamers who doubted the legitimacy and price of items they traded. The official further elaborated that incorporating elements like NFTs and the metaverse would enhance the gaming experience and excitement for gaming enthusiasts.

Hong Kong Crypto Exchange Contemplates Sale at HK$1 Billion ValuationHong Kong’s BC Technology Group is reportedly considering the sale of its crypto platform, OSL, with a suggested valuation of approximately HK$1 billion ($128 million).Photo by Samuel Chan on UnsplashDiscussions with potential buyersThat’s according to a report published by Bloomberg on Monday. OSL holds the distinction of being one of only two exchanges alongside competitor HashKey licensed under the digital asset regulations introduced by the city of Hong Kong in June. Bloomberg cited anonymous sources familiar with the matter having revealed that BC Technology has initiated discussions with potential buyers, including industry players and funds.OSL’s platform encompasses prime brokerage, exchange services, and secure custody solutions for the cryptocurrency markets. Furthermore, OSL plays a pivotal role in facilitating financial institutions’ access to virtual asset trading. Rather than a complete sale of the company, BC Technology is considering the possibility of divesting specific parts of the business, according to these sources.It’s important to note that these deliberations are ongoing, and there is no guarantee that they will culminate in a final deal, as highlighted by the insiders. In response to an inquiry from Bloomberg News, a representative from BC Technology stated:“We are a highly transparent and regulated company. We do not comment on market rumors and speculations.”Valuable trading licenseOSL's regulatory licensing is likely to add considerably to its value. Earlier this year it emerged that digital asset sector firms were shelling out a range between HK$20 million and HK$200 million in their efforts to secure crypto trading licenses in Hong Kong.In May the company obtained Type 1, 4, and 9 licensing from Hong Kong’s Securities and Futures Commission (SFC) through its OSL Asset Management (OSLAM) business. Following the acquisition of licensing, the firm moved to launch its first fund, concentrating on blockchain, artificial intelligence (AI), and Web3 technologies.Hong Kong’s crypto hub challengesHong Kong enabled retail-level crypto trading on June 1, with the aim of further establishing the city as a hub for the cryptocurrency sector. The regulatory change enabled retail investors to trade larger tokens such as Bitcoin and Ethereum on licensed exchanges. Despite these efforts, demand for cryptocurrencies remains lackluster due to the lingering effects of last year’s wave of crypto sector bankruptcies.To compound matters, Hong Kong is also grappling with the repercussions of the JPEX exchange scandal, an unlicensed Dubai-headquartered entity that further tarnished the reputation of the digital asset industry in the region.BC Technology’s market value has shown substantial growth, surging to almost HK$1.9 billion from its low point earlier in the year. However, the company’s shares remain down by 80% from their peak in June 2021, which coincided with the cryptocurrency market’s frenzy during the pandemic.In response to market developments, OSL has withdrawn its application for a digital asset license in Singapore and it is preparing a revised submission. It’s worth noting that certain clients from Singapore are being transitioned to the exchange in Hong Kong.