Bitcoin Rebounds Strong after Fake News is Rebuked
MIM #13: Hong Kong set to release crypto licensing guidelines, new institutional custody backed by a16z, and Web3 MMORPG goes mobile
Phew! We had a scare last week, Speedsters. A groundbreaking revelation shook the crypto world on the 26th of April, sending Bitcoin plummeting. Yet, just as quickly as Bitcoin fell, it bounced back after the revelations were proven false.
Last Wednesday, over $200 million worth of Bitcoin was liquidated in under an hour, sending $BTC crashing 8% to around $27,200. This led to a domino effect, causing the entire crypto sector to take a beating.
$70 billion exited the market as total capitalization fell to $1.20 trillion. However, Bitcoin rapidly recovered during the Asian trading session on Thursday, April 27.
The panic selling was caused by fake alerts from blockchain analytics firm Arkham Intelligence. The company tweeted that Bitcoin wallets linked to the US government and Mt. Gox had been revived.
The alerts spread across crypto Twitter like wildfire, with high-profile accounts smearing crypto’s flagship coin’s good name. Thank Satoshi that the news was a false alarm, as Arkham and other crypto traders confirmed.
Bitcoin has recovered almost all its losses in the hours post-clarification. At the time of writing, most other crypto assets were also rebounding, with more than $50 billion returning to the markets and pushing the total cap back to $1.25 trillion.
The story presents a cautionary tale for all investors, not just those interested in crypto. Fake news is no joke and can powerfully impact markets.
It is important to question pervading narratives and dig a little deeper to find the truth behind the curtain. With that being said, here is all the real news from last week.
Last week’s crypto news
- The Hong Kong Securities Futures Commission (SFC) is set to release cryptocurrency exchange licensing guidelines in May. The guidelines will support crypto trading platforms in offering services to retail investors starting from June 1st. The licensing regime received over 150 responses from interested parties during the consultation. Some trading platforms, including OSL and Hashkey Group, have already received licenses.
- Former CTO and CISO of Andreessen Horowitz (a16z), Riyaz Faizullabhoy and Nassim Eddequiouaq, are starting a crypto custody firm for institutions, with the backing of a16z. The two engineering and security experts previously worked on crypto at Anchorage and created the crypto custody infrastructure for Facebook’s Novi wallet before joining a16z. Institutional crypto custody is a competitive field, but the duo’s expertise and a16z’s seed backing could give them an advantage.
- Circle Internet Financial has launched a new method called the Cross-Chain Transfer Protocol (CCTP) to transfer USDC between blockchains. The technology aims to improve the liquidity of the major stablecoin and make transfers faster, safer, and cheaper than existing bridges used in DeFi. Initially, CCTP will be used for USDC transfers between Ethereum and Avalanche blockchains, with more chains coming later in 2023.
- Saxet Infrastructure Group, a new company founded by energy and Bitcoin mining veterans, is building a 300-megawatt hosting site in Corpus Christi, Texas. The hosting site will be connected to the grid and co-located with a 300 MW battery storage facility. Saxet will pass variable energy costs onto its customers and charge a fixed management fee lower than that of many of its competitors. The firm has secured all the capital needed to construct the site from a New York multibillion-dollar private-equity firm and a private investment group. Saxet expects the entire 300 MW of hosting capacity to be up and running by the end of the year.
- Outlanders, a blockchain gaming project, has just announced it is starting work on a mobile version of its Web3 MMORPG. The mobile version is currently in early development, with strategic planning to adapt the PC game to run on all smartphone devices. Users can sync their web-based accounts with their mobile to access their characters and earn rewards.
Magic’s parting thoughts
With Hong Kong opening up crypto to retail investors, Japan proposing regulation to boost crypto, and numerous Web3 gaming platforms releasing mobile games, things are looking very bright for the future of Web3 gaming in Asia. Here are some interesting pieces of evidence that suggest an Asian Web3 gaming boom is imminent
- In a 2022 survey conducted across 26 countries, respondents from India, Hong Kong, UAE, Vietnam, and the Philippines reported the most exposure and knowledge of Web3 gaming.
- The Asian gaming market boasts 1.5 billion players and holds the largest market share globally, and rising GDP across countries in the region leaves ample growth potential.
- Mobile gaming users in Asia total 1.13 billion, indicating a massive untapped market for Web3 game developers to move into.
The legislative shift in Asia has attracted countless leading gaming companies in the region, establishing infrastructure for and expressing interest in Web3 gaming. Asian companies are investing more in integrating blockchain technology, NFTs, and Metaverses into their games.
Web3 gaming platforms like Nakamoto Games are stepping up their marketing in Asia and will push to get their coins listed in regions like Hong Kong. Furthermore, Intellectual property development is more advanced in Asia, contributing to the region’s readiness to embrace Web3 technologies.
All this will create a magic brew of widespread adoption in Asia. So what am I going to do about it? Simple.
Research all the Web3 gaming platforms in Asia or those with eyes to expand into Asia.
Then, Look at the projects’ track record and plans and decide which coins are set to take off in Asia once June hits. I’ll share my insights from this expedition over the coming weeks. Adios, amigos, see you next week!
