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- Taiwan's Crypto Experiment: Will It Work? 🇹🇼🔬
Taiwan's Crypto Experiment: Will It Work? 🇹🇼🔬
Hackers drain $7 million in latest exploit. Oman introduces a crypto mining center.
Manan Vora
August 21, 2023
Snapshot Web3
August 21, 2023
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Regulatory and Legal Updates
Taiwan is considering a draft amendment to establish a new category for crypto-related businesses, enabling self-regulation in the country's crypto sector. The proposed "digital asset services" category aims to foster industry associations that develop voluntary guidelines and standards. This collaborative approach reflects support for responsible crypto growth and strikes a balance between government oversight and innovation. The success of self-regulation hinges on effective industry-government partnership.
Oman's Ministry of Transport has opened a new crypto mining center valued at over $350 million. It's the country's second major facility, following one in November 2022. This initiative aims to boost Oman's digital economy, generate jobs, and establish the nation as a global mining hub. The project, led by Exahertz International, is already operational with plans to expand its capacity. Additionally, Kyrgyzstan has invested $20 million in a hydroelectric-powered mining center near Kambar-Ata-2 Hydro Power Plant.
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Innovation and Launches
API3's latest project phase introduces managed aggregated data feeds, enhancing transparency and reliability. This approach uses nodes operated directly by data providers, ensuring tamper-proof data. Users can define parameters like deviation thresholds. This innovation bolsters the integrity of DeFi by providing accurate and decentralized oracle data. The oracle landscape is evolving to balance decentralization, security, speed, and cost.
South Korean telecom giant KT and global information management company Iron Mountain are partnering to use blockchain for expanding electronic document management. KT's blockchain platform will digitize Iron Mountain's physical documents, targeting the Asia-Pacific market. This collaboration aims to drive digital transformation in document management and generate new value in the broader Asian digital industry landscape.
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NFT and Metaverse
The annual Web3 event, The Gateway: Korea, is set to take place in September during the sixth annual Korea Blockchain Week. Organized by nft now and co-hosted by FactBlock, the event aims to connect Web3 technology and Korean culture, featuring interactive experiences, immersive galleries, keynote speeches, and an exhibition of works by renowned digital artists like Beeple. The event seeks to foster global expansion and innovation in the Web3 field.
Recur, known for partnerships with Hello Kitty and Nickelodeon, is shutting down its Web3 platform due to challenges in the NFT space. Users will lose core features like NFT withdrawals and trading. The company plans to move NFT data to IPFS and Filecoin. Recur was valued at $333 million after a $50 million funding round and had backers like Gary Vaynerchuk and the Winklevoss twins.
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Scams and Hacks
Hackers drained $7 million from DeFi lending protocol Exactly through an exploit, highlighting growing vulnerabilities in DeFi bridges. Exactly's bridge on the Optimism Ethereum network was targeted. Despite pausing transactions and withdrawals, the incident impacted the protocol's total value locked, underlining the need for robust security measures such as audits, bug bounties, and insurance funds. While self-regulation might mitigate risks, users should remain cautious with unaudited DeFi projects. The incident emphasizes the necessity of security in the rapidly evolving DeFi landscape.
The Harbor protocol on the Cosmos network suffered an exploit, with funds drained from multiple asset vaults. The new president of Cosmos' Interchain Foundation, Brian Crain, was announced on the same day. The impact on ATOM's price might be influenced by both the exploit news and Crain's appointment, though its price is attempting to bounce from recent lows. Despite ongoing bearish sentiment, ATOM's on-chain volume indicates potential accumulation.
North Korean hacker groups have stolen about $180 million in the first half of 2023, focusing on digital assets and employing sophisticated strategies. The Lazarus group is notably active, targeting platforms like Euler Finance and Atomic Wallet. The stolen funds are reportedly being used to fund North Korea's nuclear program. Despite UN sanctions, these cyber thefts persist, with hackers using complex money laundering techniques.
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Resource of the Day
Bitcoin halving is a fundamental event embedded in Bitcoin's code that ensures its scarcity and affects its monetary policy. Introduced by Satoshi Nakamoto, Bitcoin halving controls inflation and ensures only 21 million Bitcoins exist. Every 210,000 blocks, the block reward halves, leading to reduced rewards for miners and potential miner adaptations. This event counteracts inflation, historically leading to price surges, increased market sentiment, and broader cryptocurrency awareness. While historical halvings were followed by significant price increases, the future post-final halving is anticipated to rely on transaction fees to incentivize miners. Institutional players bring stability to the market, while retail investors focus on potential price surges. However, investors should conduct thorough research before making decisions based on halving predictions or any other market factors.
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Quick Links
Friend.tech, a new decentralized social network, generated over $1 million in fees within 24 hours of its beta launch on August 11, surpassing Uniswap and Bitcoin networks. The platform allows users to tokenize their social connections by buying and selling "shares," enabling private messaging. Built on Coinbase's layer-2 Base, it charges a 5% fee on transactions. Since launch, it has generated $2.8 million in fees, targeting crypto influencers and Web3 projects. However, analysts are discussing its revenue model and potential price manipulation concerns.
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Interesting Reads
Central bank digital currencies (CBDCs) are expected to grow drastically, with transactions rising by 260,000% from 2023 to 2030. However, this raises the question of whether CBDCs provide convenience or enhance government surveillance. While 105 countries explore CBDCs, only a few have implemented them. CBDCs allow central banks to monitor user identities and spending, potentially granting more control. This could reshape spending habits and even enable restrictions. Privacy concerns are significant, with some proposals aiming to balance anonymity and oversight. For successful CBDC adoption, designs should prioritize public interest, striking a balance between privacy, oversight, and innovation.
CoinGecko's recent report highlights significant global disparities in Bitcoin mining profitability due to varying household electricity costs. While producing one Bitcoin costs $208,500 in Italy, it's only $266 in Lebanon. Although 34 of 65 profitable countries for solo miners are in Asia, the global average electricity cost for mining one Bitcoin is $46,291.24. Cheaper electricity may attract miners, but feasibility challenges like shortages, equipment access, and legal restrictions also matter. These disparities could drive mining innovation for efficiency and geographic balance. Miners might adapt by relocating, joining pools, using energy-efficient equipment, or exploring alternative cryptocurrencies.
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The information provided in this newsletter is for informational purposes only and should not be interpreted as investment advice, endorsement, or recommendation. Cryptocurrency investments carry significant risk due to their volatility. You should consider your financial situation, investment goals, and risk tolerance before making any investments. We strongly recommend consulting a qualified financial advisor before making any investment decisions. Past performance is not indicative of future results.
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