Hong Kong’s Cryptocurrency ETFs Experience Exhilarating Surge, Crossing the $1.5 Billion Mark in Assets Under Management (AUM); Binance Issues Dire Warning Against Maverick FOMO; Poly Network Suffers Another Devastating Breach
According to data provided by Li, the collective AUM of Hong Kong’s cryptocurrency ETFs has witnessed an astounding 80% growth since December 2022. Impressively, these ETFs boast a staggering daily trading volume of 1.7 billion HKD, accounting for an impressive 6% of the overall daily trading volume of all stocks listed on the Stock Exchange of Hong Kong. Previously, the Special Administrative Region (SAR) struggled to garner substantial interest for the listing of crypto ETFs, but since their introduction in July 2022, their popularity has skyrocketed.
Binance’s Co-founder, the highly respected Yi He, issues a stark warning about the potential perils of indulging in the mania surrounding alternative cryptocurrencies (altcoins). On July 2, He, a former Chinese television host with an exceptional acumen for the crypto industry, cautioned against blindly following trading signals that chase lofty price peaks. She astutely highlighted that major altcoins have recently experienced drastic declines of 80% to 90%. The admonition from He comes in the wake of Binance’s listing of MAV, the native token of the permissionless decentralized finance protocol called Maverick. Moreover, Binance introduced perpetual MAV contracts with leverage of 20x, further intensifying the concerns surrounding excessive speculation.
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Maverick, which entered the scene in March, has been making waves with its cutting-edge automated market maker liquidity provider network. The project successfully secured an impressive funding round of $9 million in June, drawing support from distinguished entities such as Jump Crypto, Pantera Capital, Circle, and Gemini. Since its inception, Maverick has amassed nearly $55 million in total value locked, capturing the attention and enthusiasm of the crypto community.
After its listing on Binance, MAV experienced a meteoric rise to a peak of $1.98 per token before succumbing to a substantial decline, settling at $0.43 at the time of publication. Despite the dip, the token maintains a significantly higher value than its initial listing price of $0.05. He expressed, “In accordance with the historical cycles, an Initial Exchange Offering (IEO) usually yields returns several times over on the first day, but it is not conducive to the current market scenario to inflate it to a return of 10x or 20x. Please conduct your own research (DYOR).”
In the midst of the retail frenzy, Binance’s illustrious co-founder additionally emphasized that the exchange has no control over token prices, as they are subject to the forces of both buyers and sellers. He urged investors to exercise prudence and remain cognizant of the potential risks associated with their investment decisions. Despite a thaw in crypto markets, the combined market capitalization of coins and tokens, excluding Bitcoin, has remained stagnant at approximately $550 billion over the past year.
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While He may not have achieved the same level of popularity as her counterpart, Changpeng Zhao, she is primarily responsible for Binance’s overall marketing strategy and branding, and her instrumental role has significantly contributed to the exchange’s ascension to prominence. Moreover, she assumes the additional role of director at Binance Labs. It is worth noting that He and Zhao share a professional and romantic relationship, with the duo raising two children together.
Chinese Decentralized Finance (DeFi) protocol, Poly Network, once again finds itself at the mercy of hackers. The breach, which occurred on July 2, targeted a staggering 57 different types of assets across 10 blockchains. Security analyst Arhat asserts that the perpetrators exploited a vulnerability in Poly Network’s smart contract, enabling them to generate an unlimited number of tokens from the platform’s multichain pools. Although hackers managed to mint tokens worth an estimated $42 billion, only $5 million has been successfully liquidated so far. Developers of Poly Network promptly responded, stating:
Shortly after the hack, the total value locked in Poly Network plummeted from $277 million to $176 million. Notably, this is not the first time Poly Network has suffered a devastating attack. In August 2021, hackers orchestrated a meticulously planned assault, pilfering at least $600 million from the protocol, an incident that cybersecurity firm SlowMist described as “long-planned, organized, and premeditated.”
Surprisingly, within a mere two days following the breach, the hacker voluntarily returned almost all of the stolen funds and declined a generous $500,000 white hat bounty. The assailant justified their actions by stating that they would restore the funds, emphasizing that the hack was merely executed for amusement, exploiting the current fascination with cross-chain hacking.
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Meanwhile, Hong Kong has taken a significant stride towards embracing emerging Web3 technologies. On June 30, the Special Administrative Region unveiled the establishment of the Web3 Task Force, spearheaded by the esteemed Paul Chan Mo-po, Hong Kong’s financial secretary. This formidable team comprises 15 seasoned industry veterans, along with regulators and government officials, all of whom have committed to a two-year term. The primary objective of the Web3 Task Force is to foster the sustainable and responsible development of emerging Web3 technologies within Hong Kong’s jurisdiction, including the formulation of proposals to be presented to the government.
Chan expressed his vision, stating, “The blockchain technology that underpins Web3 embodies the qualities of disintermediation, security, transparency, and cost-efficiency. It possesses the potential to resolve numerous challenges and pain points in finance, transactions, business operations, and even daily life.” He further emphasized that an international financial center and metropolis like Hong Kong should wholeheartedly embrace the development of Web3, albeit within a suitable regulatory framework.
On July 3, the esteemed CEO of Animoca Brands, Yat Siu, joined the ranks of the task force. Previously, Siu opined that the struggles faced by crypto venture capital are predominantly confined to an American perspective and that the industry exhibits remarkable vibrancy in both the Middle East and Asia.
