NFT Weekly: betting big in the crypto winter

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NFT Weekly: betting big in the crypto winter

Digestible news on the latest developments in Web3, NFT, Blockchain and Metaverse in Greater China and beyond, compiled for you weekly by Pandaily.

This week: Bitcoin mining giant Canaan doubles its profits despite China’s crypto ban, Animoca Brands bets big during crypto winter, metaverse jobs disappear as hiring slows at global tech companies, and more .

Bitcoin Mining Giant Canaan Doubles Its Profits Despite China’s Crypto Ban, Shares Nearly 1%

Chinese crypto-mining rig maker Canaan posted revenue of 1.65 billion yuan ($246.7 million) in the second quarter of this year, up 52.8% from one year to the next. Shares of the company rose 0.77% on Thursday following the news. Cointelegraph and Forkast first reported the story.

  • The company’s net profit reached 608.9 million yuan, compared with net profit of 245 million yuan a year earlier.
  • Despite significant profit growth, Canaan CEO Nangeng Zhang revealed that the second quarter was a tough time for the company. “The COVID-19-related lockdown in key cities across China has also caused severe disruptions to our daily operations and demand for our AI chips,” he noted.
  • The company further disclosed that it lowered the price of its product for spot sales as the price of Bitcoin fell during the quarter.
  • “Looking ahead to the next few quarters, we see a more challenging market environment due to the declining Bitcoin price, overall energy price increase, and various pandemic and geopolitical uncertainties globally, all of which could jeopardize the demand and price of our products,” Forkast wrote, citing Canaan’s earnings report.
  • Despite headwinds in the global crypto market, Canaan continues to expand in North America by building warehouses, logistics and repair units, while exploring opportunities to expand its mining operations in the region, said Thursday the CEO during an earnings call. (Cointelegraph, Forkast)

READ MORE:All our previous articles on Canaan!

Animoca Brands Bets Big During Crypto Winter

The latest digital asset crisis has wiped out $2 trillion from the global crypto market since November. However, Animoca Brands, Asia’s largest game software developer and venture capital firm, is bringing together a large portfolio of 340 gaming, crypto and social media companies in hopes of reviving the industry. Bloomberg first reported the story.

  • According to Yat Siu, co-founder and executive chairman of the company, the goal of the investments is to help people regain ownership of virtual assets from companies such as Microsoft and Meta.
  • The co-founder further said that the strategy was informed by the 2018 crypto crash, which gave him the opportunity to turn his video game studio into a leading venture capital firm focused on the gaming industry. cryptography.
  • The company’s meteoric rise was based on its continued investment in crypto games, such as CryptoKittiesone of the world’s first blockchain games in which virtual cats can be bought and sold with digital currencies.
  • Just four years later, Animoca is one of the most influential investors in the crypto industry, with the backing of Sequoia Capital and George Soros, a legendary hedge fund manager who is widely considered one of of the most successful investors of all time.
  • “If people say it’s a crypto winter, then 2018 was the crypto ice age,” Siu says. “Now is the time to deploy more capital, not less.”
  • Animoca is one of the few companies still investing in the crypto industry. His strategy could seriously backfire if this downturn doesn’t unfold like 2018. (Bloomberg)

READ MORE: All our previous articles on Animoca brands!

Gate.io Group’s Hippo Financial Services Obtains Hong Kong Crypto Custody License

Gate.io’s Hippo Financial Services Limited has obtained a Trust or Company Service Provider (TCSP) license to offer virtual asset custody services in Hong Kong, according to a press release on Monday.

  • The TCSP license is required for any entity that conducts or wishes to conduct a trust or company services business in Hong Kong.
  • “Achieving the TCSP license in Hong Kong allows us to deepen our relationship with global crypto investors as an industry leader. Next, we will set up localized operations to bring our products and services to users of Hong Kong,” said Tom Yang, Executive Vice President of Gate.io Group.
  • With an initial focus on virtual asset custodial services, Hippo FS is devoting resources to building teams to manage local operations, including the security of its service infrastructure and customer assets.
  • “Establishing a custodial business in Hong Kong is a global strategic step for the Gate.io group, not only because Hong Kong is the hub for many financial institutions and investors, but more importantly, the regulatory regime for Hong Kong tip provides additional confidence for investors who place assets in the custody of Hippo FS,” according to Dr. Han Lin, Founder and CEO of Gate.io Group.
  • The Gate.io exchange is now based in the Cayman Islands. He left China after his government issued a blanket crypto ban. (CoinDesk, PRNewswire)

Crypto Exchange Gemini Will Offer Staking Support For Investors

Hong Kong-based crypto exchange Gemini announced on Friday that it will offer support to customers based in the United States, Singapore and Hong Kong to earn and store staking rewards in their Gemini accounts. CoinDesk first reported the story.

  • The company will support MATIC staking on the Polygon network and roll out support for digital assets including ETH, AUDIO, SOL, and DOT over the coming months.
  • The announcement came as crypto firms began expanding their stake offerings ahead of the highly-anticipated Ethereum blockchain merger, which will shift the proof-of-work protocol to a faster and more efficient proof-of-stake model. energy efficient. After years of delay, Fusion is now due to take place on September 15.
  • “It is now clearer than ever that people are interested in staking, especially now that we are on the cusp of the Ethereum merger,” a company spokesperson told CoinDesk. “With Ethereum being a staking option for them on Gemini shortly and post-merger, and with more liquidity and higher returns, staking is becoming more and more attractive to people.”
  • Staking is a process by which crypto owners lock their assets for a set period of time to help support the operation of a blockchain. In exchange for staking crypto, the owner earns more cryptocurrency. Many blockchains use a proof-of-stake consensus mechanism.
  • Staking is only possible through the Proof-of-Stake consensus mechanism, which is a specific method used by some blockchains to select honest participants and verify new blocks of data added to the network. (CoinDesk)

Metaverse jobs disappear as hiring slows at global tech companies

New monthly job postings across all industries with “metaverse” in the title fell 81% between April and June, Bloomberg reported, citing data from Revelio Labs, a workforce research firm. .

  • The drop comes after Metaverse-related jobs increased in the months following Facebook’s rebranding to Meta. The drop also coincides with a broader cooling in the tech sector, which has led to hiring freezes and layoffs.
  • Meta slowed hiring in May, but said it has accelerated in recent months. “After temporarily suspending hiring for some positions within the company, we are excited to resume hiring for some of our highest priority areas,” said company spokesperson Andrea Beasley.
  • Last month, Facebook’s parent company Meta reported a steeper-than-expected decline in revenue, missed out on profits and issued a surprisingly weak forecast, pointing to a second straight year-over-year sales decline. Zuckerberg said on Meta’s July 27 earnings call that he was “slowing the pace” on long-term investing due to the shortfall.
  • Meta shares have lost about half their value since the start of the year, underscoring investor concern about the health of the company’s core online advertising business.
  • Meanwhile, Apple, Meta’s emerging rival in the Web3 space, said on July 28 that it would be “more deliberate” in its hiring. (Bloomberg, CNBC)

FTX Revenues Surge 1,000% During Crypto Craze

Crypto exchange FTX grew its revenue from under $90 million in 2020 to over $1 billion last year as cryptocurrencies hit an all-time high. CNBC first reported the story.

  • FTX rode the crypto craze to $1 billion in revenue last year while expanding its global footprint through a flurry of acquisitions. In June, the company announced that it had reached an agreement to buy Canadian crypto platform Bitvo and was considering buying Robinhood.
  • The company has also reportedly set new fundraising targets, matching those of a January funding round in which the company closed a $400 million round, earning it a $32 billion valuation. dollars.
  • The crypto exchange’s revenue grew by more than 1,000%, from $89 million to $1.02 billion in 2021, according to audited financial data seen by CNBC. (CNBC)

That’s it for this week’s newsletter – thanks for reading! As always, we welcome any feedback on how to improve this newsletter. Write to us at [email protected]. See you next week !

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