Wu Sang Zhou's Picks: ETH completes Shanghai upgrade, Hong Kong establishes Web3.0 Association, Hashkey issues HSK and News Top 10 (0407-0414)
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This Week's Top 10 News
1.EthereumComplete the Shanghai upgrade
The Ethereum Proof of Stake chain was successfully upgraded to Shapella at 6:30 on April 13 to enable the withdrawal function.
2. Summary of this week's developments in Hong Kong
a. Hong Kong establishes Web3.0 Association
On April 11, Hong Kong Chief Executive Li Jiachao and leaders of the Beijing Central Liaison Office in Hong Kong will attend the inauguration ceremony of the Web3.0 Association at the Hong Kong Stock Exchange today to show the support of the Beijing Central Committee and the SAR government. The Hong Kong Web3.0 Association is chaired by Norman Chan, the former Chief Executive of the Monetary Authority, and Chan Ka-keung, the former Secretary for Financial Services and the Treasury, as the chief financial advisor. The initiators of the Association are China Mobile, China Merchants Bureau, Huawei, and the Hong Kong University of Science and Technology.
b. Hong Kong SFC RequirementsDeFiThe project needs to be licensed and regulated
On April 12, after the US launched the DeFi Risk Report, Choi Chung-hui, interim head of the Intermediaries Department of the Hong Kong Securities and Futures Commission, stated at the “2023 Hong Kong Web3 Carnival” that day that DeFi projects need to be regulated by SFC, and that automated trading services are also subject to SFC supervision. Decentralized exchanges also need to apply for a license if they involve virtual assets; some DeFi agreements are nominally decentralized. In reality, a small number of developers hold a large number of governance tokens, and the substance needs to be analyzed Not a superficial statement.
3. HashKey Weekly News Summary
a. Hong Kong Compliant Exchange HashKey issues Ecosystem Credit HSK similar platform coins
On April 12, HashKey Group announced the launch of the ecosystem credit HSK on Ethereum to incentivize contributors to the HashKey ecosystem, including its users and partners. HSK has a total supply of 1 billion pieces, 65% for ecological growth, 30% for teams, and 5% for reserves. HSK will be distributed as a reward for using the HashKey exchange business, and will be regularly repurchased and destroyed from the circulating supply. HSK holders can enjoy trading fee discounts and withdrawal fee relief on the exchange. HashKey Group holds Hong Kong's second compliant exchange license.
b. Hashkey Group is expected to launch a compliant exchange called Hashkey Pro in the second quarter
On April 12, according to PANews, Hashkey Group is expected to launch a compliant exchange called Hashkey Pro in the second quarter. It will first be open to institutions and qualified investors, and has obtained permission from the Hong Kong Securities Regulatory Commission. The exchange has confirmed banking partners with local Hong Kong and Chinese backgrounds to support USD deposits and withdrawals through direct bank transfers.
c. Hashkey Pro white paper emphasizes not selling to raise funds through private or public sale
On April 12, according to Hashkey Pro's new HSK points white paper on the Hong Kong Compliance Exchange, it was emphasized that it is not sold through private or public sales; the destruction model uses 20% of corporate profits to buy and destroy; the team controls 30% of the 1 billion tokens; 65% is used to reward early users, liquidity rewards, marketing, etc.; it is emphasized that it is a “digital payment token” under Singapore law and is not a “security” under Hong Kong law.
d. Former Huobi Global CEO Mr. Qi joined HashKey Group as Group Chief Operating Officer
On April 13, HashKey Group announced that Livio Weng (Grandpa Qi) joined HashKey Group as the Group's Chief Operating Officer. Livio Weng was CEO of Huobi Global from 2018 to 2021.
e. Hashkey Group stated that HSK's activities will not be open to restricted regions such as mainland China and the United States
On April 14, Hashkey Group announced that HSK is HashKey ecoPoints, which is only used as a gift to ecological contributors and will not be sold; currently, HSK can only be obtained through Hello HashKey's blind box campaign; HSK's activities will not be open to restricted regions such as mainland China or the United States.
f. Hashkey Group launches new division Hashkey Wealth and upgrades OTC services
On April 14, Hashkey Wealth, the new division of the Hashkey Group, launched wealth management services for qualified investors, family offices, and large institutions, and also expanded its OTC services by expanding the liquidity coverage and token range of the spot market.
4.FTXThis week's dynamic summary
a. FTX creditors release first report disclosing multiple FTX issues
On April 10, FTX creditors released their first report disclosing various FTX issues. These include: Singh, Wang, and Elison have reached an agreement with the Ministry of Justice based on a cooperative plea. SBF is considered to have the final say in all major decisions, and the core players have no risk management or operation experience soon after graduating from college; 56 entities within the FTX Group did not prepare financial statements; Singh changed the codebase to allow Alameda to withdraw an unlimited amount of crypto assets from FTX; and modified it a week later to exempt Alameda from automatic liquidation; FTX The Group keeps almost all of its crypto assets in hot wallets (SBF has lied about using cold wallets).
b. FTX has recovered $7.3 billion in assets and is considering reopening the exchange business in July
On April 13, FTX recovered $7.3 billion in assets. This includes $2 billion in cash, $4.3 billion in Class A cryptocurrencies, $300 million in securities, $600 million in investment receivables, and more. FTX is considering reopening exchange operations in July.
5.BinanceThis week's dynamic summary
a. BinanceUS failed to successfully establish direct banking relationships with banks
On April 9, WSJ reported that in recent months, BinanceUS has failed to successfully establish direct banking relationships with banks and is using at least one intermediary, crypto services, and financial technology company Prime Trust LLC to store funds on its behalf, which will slow down the process of sending and transferring funds. As of Friday, wire transfer deposits have resumed, but Apple Pay and Google Pay deposits are “undergoing maintenance,” and debit card services are being “partially interrupted.”
b. Binance Futures U-standard contract Rest service/API issues have now been restored
On April 10, some issues with the Binance Futures U-standard contract Rest Service API affected the UI and API. Among them, coin-based contracts were not affected; only U-standard contracts were affected. The team is working on a fix, and a related announcement will be made soon. The Shi'an Futures UM system has now returned to normal. The previous issues were caused by server issues, and the team has now migrated the affected servers.
6. Summary of this week's developments in Canada
a.dYdXAnnounced that it will withdraw from the Canadian market
On April 7, dYdX officially announced that it would withdraw from the Canadian market. As of April 7, dYdX will stop recruiting new users in Canada, and deals for its existing customers will end on April 14. Starting at 1 a.m. Beijing time on April 15, all Canadian users will switch to a liquidation-only mode, which will only allow them to close positions and withdraw funds.
b. Stablecoin issuer Paxos is exiting the Canadian market
On April 13, stablecoin issuer Paxos told its customers via email that it was exiting the Canadian market. After the Canadian Securities and Exchange Authority issued new regulations in February, several crypto trading platforms have announced their withdrawal from Canada, including dYdX,Deribit、blockchain.cometc. The regulation requires trading platforms to abide by “enhanced investor protection commitments.”
7. Wanxiang Blockchain Chairman Xiao Feng shares five major Web3 industry trends in Hong Kong
On April 10, Wanxiang Blockchain Chairman Xiao Feng shared five major Web3 industry trends in Hong Kong, namely: 1. Industry compliance, with US regulators taking strict regulatory measures first; 2. The Bitcoin two-layer protocol drives the further expansion of the Bitcoin network and applications; 3. Hong Kong's policy of opening up represents Asia's return to the center of the virtual asset market, and stablecoin legislation is in progress; 4. Tokenomics needs to be adapted to Web3 business applications; 5. ChatGPT: The singularity has emerged. GPT4 has reached 100 trillion parameters close to the human brain. Blockchain is the distributed ledger of AGI.
8. Yearn Finance is suspected to have lost more than 10 million dollars due to a flash loan attack
On April 13, the three hacker addresses detected showed that they had made a profit of more than $12.86 million. Paradigm researcher samczsun said that Yearn Finance's USDT Token (yUSDT) is suspected to have been misconfigured when deployed more than 1,000 days ago, and the FulcrumiUSDC deployment was misused instead of Fulcrum iUSDT.
9. Facebook and Instagram will stop supporting NFTs
Facebook and Instagram will stop supporting NFTs on April 11; Instagram says it will no longer maintain a connection or association with third-party digital wallets; and will begin deleting digital collectibles data from our system, including wallet addresses.
10. SushiSwap RouterProcess2 contract was hacked, team released solution
On April 9, the SushiSwap RouterProcess2 contract experienced an approval-related error, causing 0xsifu to lose more than $3.3 million (about 1900 eth). According to @0xngmi, only users who have traded on sushiswap in the past 4 days will be affected by the hack. SushiSwap claims that users' funds were either “cleaned up by white hat security teams” or “stolen by black hat hackers.” If the funds are in a white hat contract, it means that the security team has taken back the funds and users will be able to claim them. On April 12, SushiSwap said it would establish a Merkle Claim contract to return the recovered funds to users' wallets. Users whose funds have been stolen by attackers are required to submit an email to the SushiSwap security team, which includes the transaction ID and blockchain data of the lost funds. The team said the process will take longer to process as manual validation of the data is necessary.
Key financing events
Layer1 public chain Sei raised $30 million at a valuation of $800 million, and Jump Capital, Multicoin Capital, etc. participated
Web3 NFT gaming platform Gameta announced the completion of a $5 million seed roundBinance Labs、Huobi Ventures, Arcane Capital,Ceras Ventures, StartVC and others participated
Mayhem Studios, the studio launched by Indian e-sports platform Mobile Premier League (MPL), announced the completion of a Series A funding round of $20 million, led by Sequoia Capital
Crypto forensics and cybersecurity firm CAT Labs has completed a $4.3 million investment, with Castle Island Ventures and others participating
Bankruptcy claims marketplace Xclaim closes $7 million Series A funding round
For more industry funding events, check out crypto-fundraising.info.
