Coinbit suspends operations, marking second crypto exchange shutdown this month

OKX collaborates with Polygon Labs on layer-2 network launchSeychelles-incorporated OKX, one of the world’s largest cryptocurrency exchanges, has collaborated with blockchain development firm Polygon Labs to unveil the testnet for its latest zero-knowledge layer-2 network, named “X1.”Photo by Shubham Dhage on UnsplashIntroducing “X1”The company announced initial details on X1 via a press release published on Tuesday. This Ethereum-based ZK network has been constructed using the Polygon Chain Development Kit (CDK), with OKX playing a pivotal role as a core contributor to the CDK. Substantial engineering resources are being invested by OKX to strengthen the Ethereum scaling solution.The new network will serve to bolster the utility of OKX's native token, OKB. OKB will be used for X1’s gas fees. There has been a lot of chatter about the utility of exchange tokens following the collapse of FTX, as that platform was over-reliant on its native token in propping up the exchange. Similarly, critics are speculating that a comparable dynamic may be at play at Binance, relative to its native token BNB.Likely buoyed by news of this development, OKB observed a 10% unit price increase on Tuesday. However, that move has retraced downwards in the meantime.ZK proof technologyX1 has been designed with ZK proofs, a method through which one party can convince another that a particular claim is true without disclosing details of the claim itself. In this way, X1 ensures high security and scalability while mitigating transaction costs. The network seamlessly aligns with Ethereum, facilitating the secure deployment of EVM-based dApps and connectivity with a wide array of smart contracts, wallets and tools. OKX underscores X1’s status as its new native network.Chief Innovation Officer of OKX, Jason Lau, expressed optimism about X1, deeming it integral to the firm’s efforts in guiding users into the realm of Web3. Lau emphasized the scalability and accessibility of X1, especially for developers who can leverage it to construct user-friendly Web3 applications while maintaining interoperability with other networks.The collaboration with Polygon Labs marks another milestone in the evolution of Polygon’s CDK. Launched in August, the CDK enables the development of layer-2 blockchains on Ethereum, emphasizing zero-knowledge proofs. Networks deployed using the CDK gain the ability to connect to a shared ZK bridge, fostering interoperability.Sandeep Nailwal, co-founder of Polygon, underscored the significance of X1’s adoption of Polygon CDK technology, envisioning a future where CDK-deployed chains interoperate and coexist within a larger network of ZK-powered layer 2s in the Polygon CDK ecosystem. The CDK has gained traction, with various Layer 2s, including Immutable zkEVM, IDEX, Palm Network and Astar zkEVM, currently in development using this technology.Industry trendA trend is developing among crypto exchange platforms and their involvement in establishing layer two networks. Earlier this year, U.S. crypto platform Coinbase introduced the Base network, an Ethereum layer-2 network that focuses on offering a safe, low-cost and developer-friendly mechanism to build on-chain.Last week, it emerged that another leading U.S.-based crypto platform, Kraken, is on the lookout for a development partner to enable it in building out its own layer-2 blockchain network. According to those reports, it’s understood that Kraken is considering partnering with Polygon Labs, Matter Labs or the Nil Foundation.As this OKX-Polygon Labs collaboration progresses, the industry will continue to observe how X1, with its innovative technology stack and seamless integration with Ethereum, contributes towards broader Web3 development.

KuCoin Report Points to Marked Increase in Crypto Investors in TurkeyAs part of its “Into The Cryptoverse: Understanding Crypto Users” series, Seychelles-based crypto exchange KuCoin published a report on Thursday that identifies a significant increase in the number of crypto investors in Turkey over the course of the past eighteen months.Photo by Dima Rogachevskiy on UnsplashCrypto adoption surgeThe report, the fifteenth such report produced by KuCoin as part of this series, reveals that there has been a substantial surge in crypto adoption among Turkish adults, with an impressive 52% of the adult population participating in crypto investments.Since November 2021 there has been a 12% increase in the number of crypto investors aged 18 to 60. These statistics underscore the growing interest and acceptance of cryptocurrencies in Turkey. It’s not likely to be a coincidence that this surge in adoption has come about against the backdrop of the local currency, the Turkish lira, losing more than 50% of its value against the US dollar.Here are some of the key insights that the report identified:Growing Crypto Adoption Among Turkish Adults: The survey indicates a significant upswing in the number of Turkish adults investing in cryptocurrencies. The percentage of adults embracing crypto has surged from 40% to 52% over the last year and a half, despite the overall crypto market finding itself in the doldrums within that time frame.Increased Female Participation: While male investors continue to dominate at a rate of 57%, the survey points to a notable trend of increasing participation among women, particularly in the younger age brackets. Approximately 47% of female crypto investors are between the ages of 18 and 30.Youth-Driven Growth: Younger generations are leading the crypto adoption charge, with investors aged 31 to 44 constituting the largest group at 48%. Furthermore, a significant proportion of investors under 30 joined the market within the past year, indicating the influence of youth within the crypto space.Many have expressed the view that crypto adoption will come about through the younger demographic. It’s a factor that has not gone unnoticed by crypto platforms, including fellow Seychelles-based exchange Bitget.Motivations for Crypto Investments: The report delves into the motivations behind crypto investments among Turkish adults. A substantial 58% express the desire to create long-term wealth, transcending generational boundaries. This suggests a widespread belief in crypto’s potential as a tool for financial freedom.Popular Cryptocurrencies: Bitcoin remains a favored choice, capturing 71% of overall investor interest. Ethereum follows closely with 45% interest, while stablecoins garnered the attention of 33% of surveyed participants.Crypto Trading Dominates: A significant 70% of Turkish participants use crypto for trading, indicating the prevalent use of cryptocurrencies as investment instruments. Meanwhile, 22% have ventured into buying NFTs.Influence of Personal Connections: Personal relationships play a pivotal role in driving crypto adoption in Turkey. About 57% of participants learned about crypto through family and friends, highlighting the significance of these connections in introducing newcomers to the crypto world.This finding resonates with a similar finding relative to a recently published report covering crypto adoption in Vietnam.The report has been based upon online surveys carried out by KuCoin between May 5 and May 12 of this year.

Coins.ph leads Digital Asset Exchange Alliance in Southeast AsiaCoins.ph, a leading Filipino cryptocurrency exchange, has taken a step towards promoting responsible and secure cryptocurrency usage in Southeast Asia through the establishment of the Digital Asset Exchange Alliance (DAEA).Photo by Mike L on UnsplashRegional industry partnershipIn a press release published on Friday, the company announced the formation of the industry body. The strategic partnership includes other prominent licensed exchanges in the region, namely Coinhako (Singapore), Indodax (Indonesia) and Bitkub (Thailand).Wei Zhou, CEO of Coins.ph, expressed enthusiasm about the collaborative effort, stating:“Coins.ph is excited to work with our Southeast Asian counterparts in advancing the responsible and secure use of cryptocurrencies and promoting the development of user-friendly and compliant products for users.”Zhou emphasized the belief that the alliance’s combined efforts would contribute to building a more robust and resilient cryptocurrency ecosystem in Southeast Asia.Unifying licensed exchangesThe DAEA represents a milestone in unifying licensed exchanges across the Southeast Asian region, aiming to enhance regulatory advocacy by leveraging the collective expertise and experience of the four founding exchanges. It seeks to foster collaboration by sharing protocols and best practices to elevate service quality and bolster security measures.Educating users about the benefits of trading on licensed exchanges and the importance of following regulatory guidelines is a core commitment of the Alliance. This extends to promoting financial literacy, consumer protection and responsible trading practices in the cryptocurrency space.The cryptocurrency sector has experienced an outsized proportion of scams and fraud. Within that, Southeast Asian crypto users and platforms have been hardest hit, with instances in recent months of malicious activity across the region, from pig butchering scams to exchange hacks and crypto-related phishing. Regulators have started to counteract such problems, but a level of greater organization within crypto through bodies like the DAEA will go some way further towards protecting crypto users.Building a safer ecosystemYusho Liu, CEO of Coinhako, highlighted the significance of the Alliance for the entire cryptocurrency industry, emphasizing the role of licensed exchanges in fostering trust and growth. He stated:“By collaborating with Coins.ph, Indodax, and Bitkub, we are taking a monumental step towards building a safer and more transparent ecosystem for users in the region.”As the blockchain space evolves with a growing emphasis on regulatory compliance, Coins.ph, along with Coinhako, Indodax and Bitkub, has distinguished itself by prioritizing security and trust through obtaining licenses from their respective regulatory bodies.Moving towards self-regulation2022 brought with it some spectacular crypto platform failures such as FTX, which affected locations like Singapore disproportionately. A regulatory backlash has resulted in 2023, and it is amid that backdrop that we are seeing increasing efforts towards better organization and self-regulation within the crypto sector.The formation of the Digital Asset eXchange Alliance in South Korea, involving a consortium of the top five exchange businesses in the country in July of this year, is a stand-out example. In Taiwan, regulators have been actively fostering self-regulation. Those efforts have resulted in the establishment of an industry group of Taiwanese Exchanges.