China dominates Bitcoin hashrate despite mining ban

South Korean blockchain solutions provider Seoul Labs has released SLUSH, an innovative launchpad built on its SASEUL blockchain designed to streamline and enhance the Web3 experience, according to a post on CoinMarketCap on Tuesday (KST).Photo by Shubham's Web3 on UnsplashPromoting sustainable ecosystem growthSeoul Labs explained that SLUSH is a solution to the setbacks of existing Web3 services and the difficulties that come with providing a comprehensive experience. As a hub within the SASEUL ecosystem, the launchpad allows users to access and manage a variety of services on a single platform. It will also serve as a medium for finding and supporting groundbreaking Web3 projects, offering safe and attractive investment opportunities in response to the current challenges posed by limited investment options and instabilities in digital asset trading. With a focus on long-term growth, SLUSH is designed to present users with tangible projects within the SASEUL ecosystem. Token sale successSLUSH is already off to a strong start, selling out one million SL tokens – Seoul Labs’ native token – in just 3 hours during its first pre-sale round on Jan. 16 and demonstrating investors’ interest in the service. The next round opened yesterday at an exchange rate of 1 SL to 0.1 USDT. Although the results have not been disclosed yet, if the second round also yields one million sold tokens, Seoul Labs will initiate a third. These pre-sales are expected to pave the way for onboarding various Web3 products and services onto the launchpad. The Seoul Labs team emphasized its commitment to funding blockchain projects, particularly dApps and Web3 projects, on SASEUL, thereby expediting their entry into the market. As the ecosystem’s growth accelerates, the team also plans to implement features like token swaps, NFTs and more.

Beijing-headquartered crypto mining equipment manufacturer Canaan recently revealed its financial results for the fourth quarter of 2023, demonstrating that it continues to struggle with profitability despite positive numbers relative to revenues and growth.Photo by Sasun Bughdaryan on UnsplashIncreased revenues and salesAccording to the company’s filing, during the last quarter of 2023 Canaan reported a surge of 45.7% in total computing power sold compared to the preceding quarter, reaching 5.5 million Thash/s. This ascent, which reflects a 191.9% increase from the same period in 2022, signifies not just a recovery but a robust resurgence in demand and operational ability. The company's dispatch of 19.6 million Thash/s throughout the year, marking a 29.6% leap from 2022, aligns with the rebound in bitcoin prices observed in Q4 2023, a pivotal factor shaping Canaan's operational revitalization. 47% growth on previous quarterA closer examination of the financials reveals not only surpassing total revenues but also a notable 47.3% quarter-over-quarter growth. Canaan's foray into international markets, bolstered by securing substantial orders from esteemed public company clients, underscores a buoyant sales performance and a positive outlook for the computing sector. Despite the buoyant sales and revenue figures particularly in the mining machine market, the sector has faced ongoing regulatory uncertainties and market fluctuations. Nonetheless, the company's strategic initiatives, alongside the positive market effects of the approval and listing of spot bitcoin exchange-traded funds (ETFs), have been positive. Moreover, Canaan's investments in wafer supply capabilities and strategic financial maneuvers garnered approximately US$136 million through at-the-market (ATM) programs and preferred shares. Recording a lossYet, the company’s journey in 2023 was not without its hurdles. Q4 2023 witnessed a significant increase in product revenues from the previous quarter but a decline from Q4 2022, attributed to dwindling sales prices as the halving event loomed, underscoring the volatility inherent in the cryptocurrency market. Results published last year are indicative of the company’s difficulty. In Q2 2023, revenues were strong, yet the company wasn’t turning a profit.With Q4 results, it’s now clear that the firm lost $421 million in 2023. In Q4, Canaan recorded a net loss of $139 million. That compares with a loss of $91 million in Q4, 2022. The company also expects tough market conditions in 2024. In its forward-looking outlook, it stated:”For the first quarter of 2024, and the second quarter of 2024, the Company expects total revenues to be approximately US$33 million and US$70 million, respectively, considering the challenging market conditions across the industry. This forecast reflects the Company’s current and preliminary views on the market and operational conditions, which are subject to change.” The crypto mining sector remains a very challenging market. With the upcoming Bitcoin halving event set to occur in April, it’s expected that as much as 20% of mining capacity could be forced offline, as some equipment would simply fail to mine on a profitable basis. Indicative of the challenges within the sector, crypto miner Core Scientific was forced into bankruptcy due to market difficulties in December 2022. It has only recently exited that bankruptcy process and now expects to generate revenues of $600 million in 2024. Another Bitcoin miner, Riot Platforms, has warned that profitability may be difficult to achieve in 2024 due to chip shortages.   

Uniswap Competitor Maverick Protocol Raises $9M in FundingMaverick Protocol, a Singapore-centric DeFi project which aims to disrupt Uniswap’s dominance, has announced a fresh capital funding round.On Wednesday, Maverick announced that it successfully raised $9 million in a seed funding round led by Founders Fund. Prominent participants in the round include Binance Labs, Coinbase Ventures, Pantera Capital, and Apollo Crypto.It’s not clear what Maverick’s current valuation stands at, and in discussion with Fortune, Alvin Xu, one of the co-founders of Maverick Protocol, refrained from disclosing that valuation.Photo by Towfiqu barbhuiya on Pexels“Surgical approach to DeFi”Joey Krug, a partner at Founders Fund, expressed confidence in Maverick’s potential to contribute to the growth of the DeFi industry through its “surgical approach to decentralized finance.” Krug added that “Maverick has quickly established itself as a hub for liquid staking token trading whilst having greater capital efficiency for liquidity providers.”The injection of capital into Maverick comes at a time when crypto enthusiasts are seeking alternative platforms for purchasing and exchanging tokens. This shift in interest was sparked by the Securities and Exchange Commission (SEC) in the United States filing lawsuits earlier this month against two prominent centralized crypto exchanges, Binance and Coinbase.Following the news of the lawsuits, both Binance and Coinbase experienced significant outflows of cryptocurrencies. Simultaneously, the trading volume on decentralized exchanges, which are characterized by their lack of central ownership, surged from $1.2 billion the day before the Binance lawsuit was filed to $3.1 billion on the day the suit was made public, according to data from DefiLlama. These events occurred during the early afternoon when the SEC unveiled its charges.Crypto industry OGAlvin Xu has been actively involved in the crypto industry since 2018 when he joined the Tron Foundation and subsequently BitTorrent. For a time, he worked at Ethereum-centric blockchain infrastructure firm, ConsenSys, contributing to the development of the MetaMask wallet.In 2021, Xu embarked on the creation of Maverick Protocol, an automated market maker. Typically, market makers like Citadel Securities play a crucial role in traditional finance, matching buy and sell orders for stocks. In the crypto realm, where trading operates 24/7, Uniswap has gained popularity as it automates market making for a wide range of tokens.Xu believes that his new protocol can challenge Uniswap’s dominant position, stating: “That’s definitely our goal.” However, he acknowledges the substantial advantage Uniswap holds as a first-mover in the crypto world.Since its launch in March, Maverick Protocol, currently employing nine individuals, has set its sights not only on competing with Uniswap and other automated market makers but also on surpassing centralized exchanges such as Binance and Coinbase. Xu acknowledges that achieving this goal will require time and further development, stating: “I think it’s still early.”Maverick Protocol’s recent funding round provides a strong boost to its ambitions, stoking further competition with market leader Uniswap, while playing a role in shaping the future of DeFi.