This weekly roundup of stories from Mainland China, Taiwan, and Hong Kong makes an attempt to curate the business’s most essential information, together with influential initiatives, modifications within the regulatory panorama, and enterprise blockchain integrations.
A lot like last week, China’s minor COVID flareups dominated the headlines because the nation seeks to keep away from extra critical lockdowns. Cryptocurrency managed to remain out of the information, which contemplating the regulation just lately, can solely be considered as factor.
A lot love for the layer-twos
On August 3, IOSG Ventures and Chainlink hosted the Demo Day of the Layer-Two Hackathon in Shanghai. The occasion aimed to help builders engaged on scaling options for Ethereum and was backed by main initiatives comparable to Polygon, Close to, The Graph, and Matter Labs. The profitable staff, which received bounties and mentorship, was a Synthetix-based asset administration undertaking. The winners known as themselves ObjK and used querying expertise from The Graph to drag knowledge from Synthetix, attaining an automatic cross-pool portfolio rebalance.
Layer-twos have at all times been well-liked in China, notably as customers really feel much less involved about custodial dangers and decentralization. Final week, OKEx formally launched OKExChain, which is an EVM-compatible layer-two community much like what different giant exchanges have launched.
That is of curiosity as a result of OKEx’s giant userbase, which ranks second solely to Binance when sorted by quantity. Layer-two networks launched by exchanges usually lack among the technical strengths of the devoted layer-two networks however have an enormous benefit in entry to customers, belongings, initiatives and communities.
OKExChain was proof of this because it amassed over $2 billion in belongings within the first week. About $350 million of that’s on AMM CherrySwap, which seems to be fairly liberally based mostly on BSC’s PancakeSwap. That TVL would rank across the thirtieth greatest DeFi app on all networks, across the measurement of OlympusDAO on Ethereum and BakerySwap on BSC. KSwap, one other AMM platform on OKExChain, racked up over $684 million in 24-hour commerce quantity on Thursday, which places it second behind Uniswap V3 for the busiest dApp within the business. After all, the problem shall be on the purposes and community to keep up these early numbers after the beneficiant APYs have been decreased to extra sustainable numbers.
Monitoring adoption elsewhere
Regardless of declining DEX buying and selling quantity on each BSC and Huobi Eco Chain, BSC just lately noticed an explosion in exercise round CryptoBlades, an NFT recreation that accounted for greater than 3 times the transaction quantity of all the Huobi Eco Chain on Thursday.
In the end, for chains like Huobi ECO or OKExChain to compete with different layer-two networks, they have to discover a approach to recruit distinctive app builders to their ecosystems, somewhat than counting on ports or forks from different networks. As Axie Infinity has proven, any blockchain community can grow to be loaded filled with transactions and customers if the best software is deployed on it.
China’s personal shadowy super-coders
In line with a Chainanalysis report, greater than $2.2 billion price of cryptocurrency had been despatched from Chinese language wallets to addresses related to illicit exercise within the two-year interval between April of 2019 and this summer time.
The majority of that is associated to the notorious PlusToken ponzi scam that passed off in late 2019. Since then, the variety of addresses participating in scams and criminal activity has shrunk dramatically, indicating that Chinese language clampdowns are having some affect on client protections.
Regulators appear to be taking satisfaction of their victories, as evidenced by an article from a Folks’s Financial institution of China working convention final week, the place the digital foreign money crackdown was talked about in an inventory of 2021 efforts up to now.
Tech giants eyeing up the NFT area
Crypto firms aren’t the one ones feeling the wrath of Chinese language regulators today. Over the previous week, hundreds of billions of dollars have been wiped from Chinese language tech shares together with on-line schooling, supply, and video gaming.
Tencent, which invests in plenty of main recreation publishers, suffered a greater than 17% drop in inventory value this month alone. Nonetheless, that didn’t cease it from saying this week that it would release an NFT trading platform that roughly interprets as “Magic Core”. Third events can reportedly launch NFT paintings on the platform, and it’s designed by simply one in all a number of groups inside Tencent which are creating NFT associated providers. As a consequence of China’s strict regulatory insurance policies, many of the NFTs launched by the foremost web firms are constructed on personal chains or consortium chain expertise. Alibaba also launched an NFT platform in late June.