Growing Concerns about Single Crypto Exchange Listings in Korea

Asian fund acquires majority stake in The BlockIn the wake of certain difficulties experienced following the FTX collapse, prominent crypto publication The Block has secured its future through a strategic sale to Singapore-based venture capital group Foresight Ventures.Taking to the X platform on Monday, The Block’s CEO Larry Cermak announced the acquisition, with Foresight Ventures taking a majority stake in the publication. The deal results in a valuation of the US media group at $70 million. Cermak stated:”This [transaction] gives The Block a fresh start ahead of the bull market and provides us with more capital to build out new exciting products and expand our footprint into Asia and the Middle East.”Cermak also thanked New York-based investment bank Moelis & Company for its help in running the process.Photo by Kelly Sikkema on UnsplashFTX controversyThe sale should allow the firm to move on from a difficult situation which saw it implicated in the activities of convicted fraudster and former FTX CEO Sam Bankman-Fried (SBF). The fallout from the collapse of the FTX exchange in November of last year included the revelation that The Block had relied on undisclosed loans from SBF to sustain its operations.Michael McCaffrey, the former CEO of The Block, resigned last December after it was disclosed that he had borrowed $43 million from SBF’s Alameda Research, a crypto trading company. This financial arrangement was allegedly aimed at supporting the media company and facilitating property acquisitions.Following the conviction of SBF on charges of fraud and money laundering in New York earlier this month, The Block faced challenges and turned its focus towards building a more robust institutional customer base. The media group has been actively engaged in compiling industry deals and offering subscription-based news services.McCaffrey had taken loans totaling $27 million to buy out shareholders and support the media group, with an additional $16 million used for property acquisition in the Bahamas. The financial arrangement with Alameda was undisclosed to the broader team at The Block, as revealed by Bobby Moran, the company’s chief revenue officer at the time.It’s still unclear if McCaffrey has repaid these loans to the FTX Debtor that is currently managing the FTX business. FTX filed for Chapter 11 bankruptcy in November 2022 and with that, it is in the process of being restructured.$56 million investmentAs part of the deal, Foresight Ventures will invest $56 million, securing an 80 percent stake in The Block, according to a source cited by the Financial Times (FT). The investment is a strategic move, especially considering the recent slowdown in venture capital investment in the crypto market.While investors injected approximately $30 billion into crypto projects in both 2021 and 2022, the figure plummeted to $7 billion by the end of September of this year, according to PitchBook.Foresight Ventures CEO Forest Bai confirmed to the FT that The Block will continue to operate as an independent business. Bai stated: “We think The Block is one of the crown assets in the crypto media space. Our view is that the media aspect will continue to drive education and adoption in the space.”

Libeara gears up to offer tokenized Singapore dollar government bondsStandard Chartered’s fintech investment subsidiary SC Ventures has unveiled Libeara, a platform set to cause a stir with the introduction of the first-ever tokenized Singapore-dollar government bond fund.Once launched, the offering would provide for a significant departure from traditional bond funds, offering a sleek and digital twist to the stable investment option. There’s no fixed date for the product offering as yet, as it will need to be approved by the local regulator, the Monetary Authority of Singapore (MAS).Photo by Zhu Hongzhi on UnsplashGreater accessibility and liquidityLibeara’s emergence signifies yet another instance of the convergence of traditional financial instruments in combination with blockchain technology. Through the tokenization of government bonds, Libeara not only aligns with the evolving preferences of modern investors but also promises greater accessibility and liquidity in the bond market.Within Libeara’s distributed ledger-based innovation, each token mirrors a unit of the bond fund, embodying its value and ownership rights. This approach streamlines the investor experience, ensuring a seamless process from onboarding to subscription and redemption of tokenized units. Libeara’s model addresses historical inefficiencies, enhancing the efficiency, transparency and security of bond trading that has long been plagued by cumbersome processes and intermediaries.Aaron Gwak, Founder and CEO of Libeara, provided further details on the new startup’s market offering:“This will be the first time a Singapore-dollar government bond fund will be offered in token format. At Libeara, we care deeply about not only creating a token representing an asset but also about how close the token is to the actual asset. Ensuring that FundBridge’s investors can buy native tokens, where each token represents a unit of the fund, is central to the infrastructure of the tokenisation solution that we have created for FundBridge.”Catering to accredited investorsLibeara’s product proposition caters to accredited investors and is positioned as a collaborative effort with industry leaders. The new start-up is emerging in Singapore, wholly owned by SC Ventures while partnering with FundBridge Capital, both headquartered in the city-state.The firm has partnered with enterprise-grade platform Fireblocks for digital asset infrastructure. There’s further Singaporean involvement by way of partnerships with local entities such as digital assets services group Fazz and digital asset payments infrastructure firm StraitsX for crypto-to-fiat conversions. Chainalysis has been contracted for its on-chain AML capabilities, Hong Kong’s Chekk for KYC solutions and local firm Letsbloom for cloud deployments and compliance.Sue Lynn Lim, CEO and COO of FundBridge Capital, emphasized the transformative potential of the venture, stating:“By partnering with Libeara, we are ensuring that we can provide additional investment opportunities enabled by lower operating costs, higher transparency and higher operational efficiency.”The move not only involves creating a digital representation of an asset but reimagining the asset itself in a digital format for increased accessibility, ease of trade and potential profitability.

South Korea to Revive Tech Exports with Metaverse, BlockchainThe South Korean Ministry of Science and ICT revealed today a strategy to enhance the country’s tech exports. The plan includes leveraging the potential of the metaverse and blockchain as promising export items.Photo by Pixabay on PexelsEmphasis on the digital sectorIn response to the recent decline in exports, the strategy seeks to establish new sources of growth by prioritizing the digital sector, which has historically been a key driver of Korea’s exports. Recognizing the complex challenge posed by the global economic slowdown and other factors, all government ministries are collaborating to counteract the export slowdown.The plan leverages South Korea’s digital capabilities and implements proactive measures to adapt to evolving export trends, including the recent advancement of generative artificial intelligence (AI) tools and the acceleration of digital transformation. By tapping into emerging markets and nurturing innovative companies, the government strives to diversify its export portfolio and strengthen its position in the global market.Despite achieving a record high of $248.8 billion in tech exports in 2022, Korea has faced year-on-year declines since July 2022 due to the global economic downturn. The semiconductor sector, which accounts for more than half of the nation’s tech exports, has been particularly sluggish. Nevertheless, the rise of new tech markets driven by significant technological advancements, such as ChatGPT, and the global push for digital transformation offer opportunities to overcome the current export slump.Emerging marketsAgainst this backdrop, the government is committed to backing the development of products that resonate with the evolving export landscape. It is eyeing emerging markets, notably the Middle East, Southeast Asia, and Latin America, recognizing their fertile grounds for the swift adoption of evolving tech trends, fueled by their substantial youth populations. Furthermore, the government plans to provide policy-level support to tech companies.Government supportUnder this plan, the government will identify promising companies and offer assistance, including consultation and guidance on product commercialization. It will also support metaverse companies participating in overseas projects by covering localization development costs.In the blockchain field, comprehensive support, including technology verification, consulting, and marketing, will be provided to those working towards international standardization for NFTs and their overseas commercialization.As part of this initiative, exhibition rooms will be established on metaverse platforms like ZEPETO and IFLAND in September. These platforms will provide opportunities for innovative firms to showcase their products. At the same time, the plan will facilitate interaction between Korean companies and overseas buyers through online and offline events to boost exports.