Author: Phil Stafford

Phil is a long-standing Australian journalist with specialised experience in business, finance, travel and popular culture.

Categories
Australia Crypto News Surveys

Australia Ranks 4th in ‘Most Crypto Obsessed’: Study

Australia is the fourth most crypto-obsessed country in the English-speaking world, according to a new study conducted by cryptocurrency price tracker CoinGecko.

The research underpinning the study examined Google Trends data of search terms frequently used by people interested in cryptocurrency. These terms were then tallied to give each English-speaking nation a “total search score” to ascertain which of them had been the most interested in cryptocurrency since the recent market decline, which began in April 2022.

Top 5 English-speaking countries ranked for their interest in crypto. Source: CoinGecko

Nigeria, Kenya Lead African Charge

With a total search score of 371, Nigeria topped the list for its population registering the highest search levels for the phrases “cryptocurrency”, “invest in crypto” and “buy crypto” worldwide. Additionally, the third-highest number of searches for “Solana” were also made from within Nigeria. This was not surprising considering the West African nation’s central bank ordered financial institutions to ban crypto firms from the banking sector in February last year.

Kenya was the highest-ranking English-speaking country in Africa after Nigeria, with a score of 143 placing it at number 15 overall.

UAE, Singapore Top UK, US Well Down the List

Crypto hotspot the United Arab Emirates (UAE) ranked second in the study with a total search score of 270 – more than 100 points behind Nigeria. The UAE edged out Singapore for its searches of “cryptocurrency” and “invest in crypto”.

Singapore had the third-highest level of searches for the term “buy crypto” and its citizens searched for “Ethereum” more than anyone else, with the South-East Asian city state recording a total search score of 261. Australia (218) crept into fourth spot with a strong showing in the search terms “invest in crypto” and “buy crypto”.

Next in the rankings was the UK (198), with the US surprisingly well down the list in 12th place overall (total score 157), ranking 10th in search levels for the term “buy crypto” and sixth in its interest in “Solana”. As for the UK, Bitcoin, Ethereum and Polygon were the highest trending crypto terms.

Bobby Ong, chief operating officer and co-founder of CoinGecko, noted a major correction from previous bull cycle highs, resulting in what he termed significant price drawdowns in an unforgiving macroeconomic environment.

This study provides interesting insight into which countries remain most interested in cryptocurrency in spite of market pullbacks. The countries at the top of this list appear to be keenest to buy the dip and highlight their long-term outlook for cryptocurrencies.

Bobby Ong, chief operating officer and co-founder, CoinGecko

 

Topsy-Turvy Results on Surveys Front

To compare and contrast, it’s interesting to note Australia’s performance in two other recent crypto surveys, results of which were published last month:

  

Categories
Crypto News Metaverse

Tinder Nervous About Making Moves in the Metaverse … For Now

Online dating app Tinder has gone cold on its plans to hook up with the metaverse – at least temporarily – after parent company Match Group recorded “disappointing” second quarter earnings.

In-App Currency Also Shelved

Match Group is also shelving its plans to offer in-app Tinder Coins currency, while in another corporate blow, Tinder CEO Renate Nyborg has announced she will be leaving the company after less than 12 months in the job.

With Tinder’s Q2 share price down 22 percent, Match Group’s 2021 acquisition of artificial intelligence and augmented reality firm Hyperconnect has resulted in an operating loss of US$10 million.

Although year-on-year growth in total revenue increased by 12 percent, earnings failed to meet analysts’ expectations. Nyborg had unveiled the firm’s ambitious ‘Tinderverse’ project after acquiring Hyperconnect, but Match Group CEO Bernard Kim said the dating app would be treading carefully in light of uncertainty in the space.

“I believe a metaverse dating experience is important to capture the next generation of users and Hyperconnect has been innovating in this area,” Kim said.

However, given a more challenging operating environment, I’ve instructed the Hyperconnect team to iterate but not invest heavily in [the] metaverse at this time.

Bernard Kim, CEO, Match Group

As for the Tinder Coins initiative, first floated in October last year, the idea was to encourage users to spend more time swiping, scrolling and subsequently spending real money on Tinder, at least initially in the US.

The in-app currency was part of Tinder’s efforts to create an experience beyond its traditional “swipe left or right” signature interactive method. The feature was soft-launched in February this year but its future is now uncertain.

We’ll continue to evaluate this space carefully, and we will consider moving forward at the appropriate time when we have more clarity on the overall opportunity and feel we have a service that is well-positioned to succeed.

Bernard Kim, CEO, Match Group

Another Romantic Entanglement

Last year, Tinder and other dating apps Bumble and Grindr were targeted by a crypto-related trading scam known as CryptoRom. A Bitcoin wallet belonging to the attackers, as detected by cybersecurity firm Sophos with the aid of one victim, revealed that nearly US$1.4 million in cryptos had been harvested by the scam as at October 2021.

Categories
ASX Australia Blockchain Crypto News

ASX Taps IT Consulting Giant to Review Progress on Delayed Shift to Blockchain

ASX Prices Climb as Bitcoin Price Plummets On Anzac Weekend
A board displaying stock prices is seen at the Australian Securities Exchange (ASX) in Sydney, Australia, February 9, 2018. REUTERS/David Gray

The Australian Securities Exchange’s blockchain replacement for clearing system CHESS (Clearing House Electronic Subregister System) has been delayed for a fifth time, with tech consultants Accenture engaged to conduct an independent review.

The review is at the behest of new ASX CEO Helen Lofthouse, who succeeded Dominic Stevens on August 1.

Helen Lofthouse, newly appointed ASX CEO. Source: asia.nikkei.com

“More development is required than previously anticipated to meet ASX’s scalability and resilience requirements for the application,” an ASX spokesperson said this week.

Five Years, Five Delays

The latest delay comes less than six months after the fourth setback in March was blamed on Digital Asset (DAM), the New York-based firm building the software. At that point the upgrade had already cost a rumoured A$187 million since DAM began development of the project in late 2017.

The CHESS replacement underwent initial testing in December 2021, with the clearing and settlement system at that point set to go live in 2023. ASX has now revised that prediction to late 2024 “at the earliest”, with a more specific date to be determined following Accenture’s review, which is expected to take 12 weeks and will be released publicly.

The review will closely examine the CHESS application software provided by Digital Asset, though the blockchain platform provided by VMware and other infrastructure that underpins the CHESS replacement system will not be included in the review.

Potential Conflict of Interest?

Curiously, Accenture is an investor in Digital Asset, contravening the stated purpose of the review – which is an independent set of eyes. On the other hand, the two parties need to be seen to work together for the review to succeed.

Categories
Australia Crime Cryptocurrencies Cryptocurrency Law

Victorian State Parliament Moves to Give Police Sweeping Powers to Seize Crypto

The Australian state of Victoria has this week introduced new laws allowing the seizure of assets including crypto if criminals are caught with guns or drugs.

Police Invested with ‘More Power’

The Justice Legislation Amendment (Police and Other Matters) Bill 2022, tabled in Victoria’s Parliament, will tighten the state’s confiscation laws and give authorities more power to investigate and impound proceeds of crime.

Under the legislation, a conviction for possessing a trafficable quantity of firearms, as well as drug and sexual offences, will trigger the automatic forfeiture of assets, including cryptocurrencies.

A year ago, Victoria Police took possession of what they claimed at the time was the largest quantity of crypto (A$8.5 million worth) ever seized in connection with an Australian crime.

Jaclyn Symes, Attorney-General of Victoria. Source: bendigoadvertiser.com.au

According to Victoria’s Attorney-General, Jaclyn Symes, the proposed new legislation will “better reflect the realities of modern policing”.

These reforms will provide law enforcement with greater opportunities to confiscate proceeds of crime, ensuring there’s no payday for criminals.

Jaclyn Symes, Attorney-General, Victoria

Crypto Exchanges Forced to Provide Customer Information

Cryptocurrency exchanges will be compelled to hand over information about suspects much in the same way as banks are able to seize digital wallets. Powers to obtain electronic data from computers and storage devices, and authorising specialised tradespeople such as locksmiths to search a criminal’s property, will also be facilitated.

Intelligence officers would also no longer need the approval of the Chief Commissioner of Police to investigate online predators, making it easier for police to assume fake identities to infiltrate online child grooming profiles.

Court oversight of search warrants would be streamlined under the reforms, though Victoria Police has issued assurances that “safeguards would remain in place”.

These would include court directions that seized items – including cryptocurrencies – be returned to owners. Victims of crime will also be eligible for more compensation from the proceeds of forfeited property. Whether that also includes crypto was not specified.

Categories
Australia Crypto Exchange Crypto News Huobi Regulation

Huobi Global Exchange Gets Green Light to Operate in Australia

Former China-based crypto exchange Huobi Global is free to offer its services Down Under after successfully registering as a digital currency exchange provider with the Australian Transaction Reports and Analysis Centre (AUSTRAC):

Global Expansion Plan Moves Ahead

After also obtaining licences in New Zealand and the United Arab Emirates in June, Huobi is now eyeing a move into the US market. An American subsidiary, HBIT, was established last month and Huobi has already received a Money Services Business licence with the intention to launch full exchange services in the US down the line.

Following China’s most recent crypto crackdown in late 2021, Huobi was forced to relocate to Gibraltar. The company has since opened offices in Japan and South Korea, though it has struggled to obtain a foothold in Thailand, having to shut down after failing to comply with Thai Securities and Exchange Commission regulations.

Last month, Huobi was given permission to operate in Dubai. The Hong Kong Securities and Futures Commission also granted the exchange a trading licence two weeks ago.

Huobi Starts With OTC Services in Australia

In Australia, Huobi will initially offer fiat to cryptocurrency trading. Lily Zhang, the company’s chief financial officer, stated that the local office would concentrate on OTC services:

We have always made security and compliance our highest priorities, as we believe that only under this principle can we grow alongside the industry to provide professional and secure services to our users.

Lily Zhang, CFO, Huobi Global

Since it was founded in 2013, Huobi has been delivering digital asset services to more than a million customers worldwide. That number is set to expand exponentially should the US open its doors.

Categories
Crypto Exchange Crypto News Cryptocurrency Law Zipmex

Crypto Lending Woes Continue as Zipmex Files for ‘Bankruptcy Protection’

Singapore-based multinational crypto exchange Zipmex has revealed it is seeking bankruptcy protection against legal action from creditors.

The embattled company, which froze user withdrawals last month, has submitted moratorium applications relating to its five component entities, including Zipmex Australia:

Zipmex Buys Time ‘For Up to Six Months’

The latest legal move automatically grants Zipmex protection from the continuation or commencement of proceedings by claimants for 30 days, or until after a Singapore court makes a decision on the applications – whichever comes first.

According to Zipmex’s legal team, however, its five applications filed on July 22 seek moratoriums to prohibit legal proceedings against the company for up to six months.

After initially pausing all trading and withdrawals on July 20, Zipmex has since resumed withdrawals from its trade wallet but its popular Z-Wallet remains disabled pending the outcome of discussions with partners.

Zipmex plans to use the time allowed by bankruptcy protection to resolve its liquidity issues, create a restructuring plan, and secure new investments to support its operations going forward. It also claims to have received “formal, registered interest” from potential investors to help shore up its finances.

Categories
Australia Blockchain Crypto News Gaming Immutable X

Australian Blockchain Company Immutable X Cuts Staff Amid Crypto Crunch

Melbourne-based Australian crypto gaming startup Immutable has this week laid off at least 20 staff, many of them core members of its NFT trading card game, Gods Unchained.

News of the redundancies hit social media when one of the game’s original developers, James Wakeham, tweeted he’d been tapped on the shoulder and was now looking for work:

The layoffs, which affect an estimated 6 percent of Immutable X’s total workforce, were jointly announced by recently appointed chief studio officer Justin Hulog and Immutable CEO and co-founder James Ferguson. Staff on leave were given just 24 hours’ notice to attend a meeting at which the pink slips were handed out.

Exponential Growth Gives Lie to Layoffs

Despite the layoffs, Immutable X appears to be growing exponentially. A spokesperson for the company said it had more than doubled its full-time headcount from 120 at the beginning of the year to 280, with plans to reach 360 by the end of the year.

Regarding this week’s layoffs, the spokesperson added that the company had “made a difficult choice” in conducting “a small reorganisation within Gods Unchained to help better enable us to achieve our goal of creating the next generation of Web3 games”.

That said, Gods Unchained’s player base has more than halved since early April from 22,000 unique players logged into the free-to-play game down to 10,000, as per data from Cards Unchained, a privately run site tracking the game. Immutable’s cryptocurrency token, IMX, which is used to trade assets in Gods Unchained, has also seen its value fall from about US$11 in November 2021 to just above $1.

However, according to a bullish internal memo circulated among Immutable staff this week, a reallocation of resources would see the company investing in roles to enable Gods Unchained to scale “to millions of players over the next year”.

Immutable X Still Aggressively Hiring

Post-redundancies, the only remaining workers on Gods Unchained are junior and C-suite staff. However, Immutable is looking to hire a creative director and UI (user interface) designer specifically for the project, as well as listing 22 other general vacancies for remote workers across Australia.

In February this year, Immutable X partnered with retail game giant GameStop to create its new NFT marketplace, as well as establishing a US$100 million fund to support innovation in the NFT space. And just over a month ago, the company launched a US$500 million developer and investment fund.

Categories
Australia Blockchain Crypto News

Aussie Blockchain Firm ‘Security Matters’ Lists on Nasdaq in $518 Million Merger

Anti-counterfeit tech company Security Matters will delist from the Australian Securities Exchange and merge with a SPAC (special purpose acquisition company) on the Nasdaq in a deal that will increase its value more than 14-fold:

The soon-to-be merged Security Matters and Nasdaq-listed Lionheart III, a new company to be known as SMX, will be registered in Ireland. Together, both companies command a pro forma equity value of US$360 million (A$518 million).

As part of the deal, Security Matters was valued at US$200 million on a pre-revenue basis – a huge increase on its A$18.3 million (US$12.7m) market capitalisation on the ASX.

Specialist in Digital Markers

Originally a blockchain startup focusing on traceability for recycling and the circular economy, Security Matters has developed a molecular marker that permanently marks solids, liquids and gases to enable identification. That marker then allows a digital twin to be stored on the blockchain, which can be used for authenticating products or providing traceability.

The company has also developed conveyor belt technology to read digital markers for sorting and recycling facilities. Its previous joint ventures include assisting Western Australia’s Perth Mint to track gold and ensure the supply chain is ESG-compliant.

Nasdaq Places Higher Value on SMX

Security Matters CEO Haggai Alon said the business had been undervalued by local investors, who still favoured natural resources-based companies. “The Nasdaq, perhaps the most liquid market in the world, emphasises technology and other high-growth sectors like ours,” Alon told the Australian Financial Review.

We are on the precipice of commercialising our technology across a number of large global markets – from gold to food and wine, to fashion, rubber and plastics – and the valuation reflects that.

Haggai Alon, CEO, Security Matters

In February this year, ASX chief executive Dominic Stevens predicted that more crypto companies would list on the Australian sharemarket. Security Matters would appear to be at least one outlier swimming against the tide.

Categories
Bitfinex Crypto News Payments Social media Tether

Tether and Bitfinex Launch P2P Video Chat App ‘Keet’

Tether and Bitfinex have joined forces with software company Hypercore to launch a fully encrypted, peer-to-peer video chat application.

Keet is the first app to be built on Holepunch, a platform that allows developers to incorporate Web3 applications. It will initially only be available on desktop, though all three companies predict there will soon be a mobile app featuring “amazing” video quality:

Payment App Also in the Works

Holepunch, which is closed-source but expected to become open-source later this year, doesn’t run on a blockchain but uses the Lightning Network, a “second-layer solution” that speeds up Bitcoin transactions while reducing costs.

This would enable a payment app to be built on Holepunch, with the Tether stablecoin (USDT) supporting a default payment system. In late May, USDT was integrated into Polygon, enabling 19,000 decentralised applications (DApps) on the ecosystem to use it.

More Investment Dollars to Come

Tether, Bitfinex and Hypercore have already poured US$10 million into Holepunch, which could see tens more millions of dollars in further investments, they added.

The Keet app, like Holepunch, is free to use and is expected to be more private and secure than Web2 centralised peers such as Zoom or Google Meet. This is because Keet users can make calls directly to another individual’s computer, with nothing stored on a server.

As Holepunch CEO Mathias Buus has said, “This app is for everyone.”

Categories
Crypto Exchange Crypto News Zipmex

Zipmex Resumes Trade Withdrawals Amid Rescue Talks

Singapore-based crypto exchange Zipmex has resumed withdrawals from its trade wallet but transfers and deposits from its Z-Wallet will continue to be disabled pending the outcome of discussions with two of its partners.

One Party Offers Bailout Terms

In a July 24 Twitter post, Zipmex also revealed that it had received an offer regarding a potential rescue deal. One party had offered bailout terms in a confidential memorandum of understanding (MOU), though Zipmex neither identified the party nor specified whether the offer might be an investment or a buyout proposal:

On July 21, Zipmex halted all customer withdrawals on its platform, citing “financial difficulties” relating to two of its partners. The exchange disclosed a US$48 million exposure to Babel Finance and US$5 million to Celsius, two lenders that have defaulted on loans after accruing crippling losses in the crypto market.

In an official statement, Zipmex said it had already been “in discussion” with Babel Finance when news broke regarding the exchange pausing withdrawals last week.

Zipmex to ‘Write Off’ Celsius Loss

“These discussions are ongoing, and we are evaluating our options based on the outcomes of these negotiations. Our loan to Celsius Network was minimal and we intend to write off this loss against our own balance sheet.”

The statement concluded:

Zipmex is exploring all available channels. This includes capital raises and internal restructuring. For the moment, Zipmex continues to operate the Trade Wallet, NFT platform, and other products as normal.

Zipmex official statement

Native Token Down 40%

Zipmex operates in four countries – Singapore, Australia, Indonesia and Thailand – and offers both spot trading for cryptocurrencies and interest on deposits. The platform’s native token, ZMT, has declined by nearly 40 percent to US$0.343 from US$0.5637 on July 20, according to data from CoinMarketCap.

At the time of writing the exchange had seen nearly US$4 million in trading volume over the previous 24 hours, with almost 60 percent of all trades coming from ZMT.