HKEX to launch digital asset index with real-time pricing within Asian time zone

XPLA joins hands with Carbonated to spearhead mobile Web3 gaming eraXPLA, the layer 1 blockchain mainnet operated by South Korean gaming corporation Com2us Group, said Tuesday (local time) that it has entered into a strategic partnership with game developer Carbonated. Under the new deal, Carbonated plans to onboard its upcoming blockbuster games exclusively onto XPLA, pioneering a new landscape of global Web3 gaming.Photo by Jonas Leupe on UnsplashXPLA expands furtherThe XPLA mainnet hosts a diverse lineup of participants like Oasys, Animoca Brands, YGG, Blockdaemon, Cosmostation and LayerZero. These companies have been continuously onboarding their Web3 games such as Summoners War: Chronicles, Minigame Party, Ace Fishing: Crew, Idle Ninja Online and The Walking Dead: All-Stars. With Carbonated joining as the newest contributor, its portfolio has been further diversified.“Carbonated is a studio with world-class development capabilities,” said Paul Kim, the leader of the XPLA team. “Its upcoming project, with its Web3-optimized gameplay and global appeal, will significantly contribute to the expansion of the XPLA ecosystem.”Harnessing cutting-edge tech for Web3 game developmentEstablished in 2015, Carbonated boasts a team of developers and industry veterans from major gaming companies such as Electronic Arts, Zynga and Blizzard who focus on creating immersive mobile games that are optimized for the Web3 market using artificial intelligence (AI) technology and their own live-ops tech stack called Carbyne. Recognized for this innovative approach to game development, the company received Series A funding worth a total of $8.5 million from several investors like Andreessen Horowitz (a16z) and Golden Ventures. Its newest game, notable for its high-quality graphics and compelling storyline, is scheduled for global release in the first half of next year.

WOO X, a Taipei-based cryptocurrency exchange, has successfully raised $9 million in its latest funding round, with notable investors including crypto market maker Wintermute. Jack Tan, co-founder of WOO, emphasized the significance of this funding in aligning the interests of liquidity providers rather than as a capital-raising exercise. On social media the company wrote that it “welcomes an elite group of liquidity providers to our ecosystem - as our commitment to building the best environment for traders remains steadfast.”Photo by micheile henderson on UnsplashDesignated market makersThe funding comes from designated market makers (DMMs), featuring participants like Selini Capital, Time Research, Pulsar, Efficient Frontier, Singapore’s Amber Group, AlphaLab Capital, Presto Labs and Riverside Hedge. This infusion of capital is expected to enhance liquidity on WOO X, starting with the BTC and ETH perpetual futures markets and later expanding into altcoin perpetual futures and all spot markets. WOO X plans to roll out a designated market maker (DMM) program for its spot markets in the first quarter of the current year. These strategic moves are expected to contribute to achieving a 100% custody ratio by the second quarter of 2024. Business model pivotWOO X underwent a strategic shift in its business model during the third quarter of the previous year. It transitioned to partner with multiple liquidity providers for both spot and perpetual futures markets, moving away from reliance on a single provider, Kronos Research. The decision to diversify followed a security incident in November 2023, where Kronos suffered a hack leading to an estimated loss of $25 million. As a response, WOO X took proactive measures to restructure its operations. As part of that plan to address liquidity, last month WOO X established a significant partnership with Wintermute, the leading algorithmic trading company and liquidity provider with a trading volume of approximately $3.6 trillion. This partnership positions Wintermute as the primary liquidity provider for WOO X, further strengthening the exchange's market presence. News of this development in December led to a marked increase in the unit price of the platform’s WOO token. Over the course of the last two weeks of December, the WOO token price increased from $0.2385 to $0.4718, representing a 98% increase. Contributing to its recent surge is the partnership announcement with Arbitrum by WooFi exchange, a development that attracted attention from potential investors. The exchange implemented various initiatives to fortify its position, including updates to its fee structure, technology infrastructure enhancements to accommodate multiple designated market makers simultaneously, the introduction of a maker rebate in USDT and the launch of the DMM rewards pool to further incentivize liquidity provision on WOO X. Global expansionThe newly secured funds are earmarked for global market expansion and obtaining regulatory licenses, aligning with WOO's vision for sustainable growth. In 2021, Woo Network successfully closed a $30 million Series A funding round. Subsequently, in October of the previous year, the company repurchased its shares and tokens from the bankruptcy estate of Three Arrows Capital, a participant in the Series A round.  

Taiwan to review crypto ETFs amid developments overseasThe Financial Supervisory Commission (FSC) in Taiwan has disclosed its close examination of foreign cryptocurrency futures products and exchange-traded funds (ETFs), signaling a potential shift in its regulatory approach.According to a report in Chinese-language financial newspaper, Taiwan’s Commercial Times, the FSC aims to gradually ease restrictions, aligning its stance with global market conditions.Photo by bordercollie 1712 on UnsplashResponding to crypto ETF activity internationallyThe Taiwanese regulator is carrying out this exploration against the backdrop of significant global developments. The possibility of the Federal Reserve cutting interest rates and the upcoming review by the U.S. Securities and Exchange Commission (SEC) of the spot bitcoin ETF in January next year are key factors influencing the FSC’s considerations.The anticipation surrounding the Bitcoin halving in April, combined with speculation that a spot bitcoin ETF approval is imminent in the U.S., have contributed to a 145% surge this year in Bitcoin’s unit price, adding momentum to that regulatory contemplation in Taiwan. There has been speculation that BlackRock, the world’s largest fund manager, is already preparing for the approval of its iShares Bitcoin Trust ETF.Recognizing the potential impact of a Bitcoin index stock fund, contingent on SEC approval and subsequent public investment permission, the FSC is closely monitoring global trends.Closer to home, it emerged last month that Hong Kong’s Securities and Futures Commission (SFC) is actively exploring the possibility of permitting retail participation in a spot crypto ETF. Domestic investment banks in Taiwan, attuned to these developments, have expressed longstanding interest in introducing similar crypto products.The FSC draws parallels with global counterparts, citing the proliferation of cryptocurrency futures products and ETFs in various markets.Cautious regulatory reviewAdopting a phased approach, the FSC emphasizes self-discipline and standards in relaxing regulations around crypto ETFs. This cautious strategy aligns with Taiwan’s historical prudence, previously observed in the delayed approval of cryptocurrency ETFs and blockchain ETFs due to concerns over volatility and speculative nature.As Taiwan contemplates a significant move into the cryptocurrency ETF domain, industry players remain cautiously optimistic. While some had considered private placements for overseas cryptocurrency ETFs, challenges such as tightened regulatory supervision and concerns over errors and price lags prompted a reevaluation.Earlier this month, ETF issuer ProShares launched its short Ether-linked ETF product on the New York Stock Exchange’s Arca, using the ticker symbol SETH. Spot bitcoin ETFs have been launched in Canada, Germany, Australia and Brazil. The products have also been made available via tax havens such as the Cayman Islands, Jersey, Liechtenstein and Guernsey.The regulator in Taiwan hints at a potential strategy involving “cryptocurrency concept ETFs.” These funds could invest in cryptocurrency-related software and hardware vendors, offering investors exposure to the industry without direct linkage to cryptocurrency price fluctuations.