Digestible news on the latest developments across the Web3, NFT, Blockchain and Metaverse fields in China and beyond, compiled weekly by Pandaily.
This Week: U.S. Game Developer Unity Spins Off Its China Division To Cultivate The Country’s Metaverse Market, Chinese Bitcoin Mining Rig Maker Canaan Considers U.S. Expansion Despite Crypto Winter, People’s Daily Announced NFT research projects that will lead the development of the industry.
US game developer Unity spins off China division.Investors betting on the metaverse
US game developer Unity is in talks to spin off its China division as it seeks to expand in the world’s largest gaming market. Reuters first reported the story.
- The San Francisco-based company is looking for strategic investors with an enterprise value of over $1 billion, sources said. Unity’s stock rose more than 5% after Tuesday’s news.
- The report comes at a time when strained relations between China and the United States are prompting global tech companies to reassess their positions on doing business in China. In the meantime, the metaverse and web3 technologies have captured the attention of game developers and investors.
- Unity entered the Chinese market in 2012 and is behind many of China’s most famous games, including ‘Honor of Kings’ and ‘Genshin Impact’.
- The company also hopes the spin-off will lead to broader application of its software in China in areas such as smart city modeling and the metaverse. It is also said that
- Unity believes the spin-off will help expand in China and give the unit more autonomy and control over how it operates in the country. (Reuters)
Chinese Bitcoin Mining Rig Maker Canaan Expands Despite Crypto Winter
Canaan Inc., one of the world’s largest manufacturers of cryptocurrency mining equipment based in China, continues its global expansion despite the cryptocurrency market cooldown. Forkast first reported the story.
- In November 2020, it became the first cryptocurrency company to list on the Nasdaq with a valuation of $1.35 billion.
- The company plans to launch its own cryptocurrency mining in the US this year, with a focus on expansion plans in the US, either with partners or alone, according to company CEO Edward Lu. I’m planning to do it.
- Since China outright banned cryptocurrency mining last September, the United States has seen an influx of Chinese miners, with Texas being one of the most popular destinations.
- Canaan reported revenue growth of 236.7% to RMB 1.36 billion ($213.9 million) despite logistics issues and supply chain disruptions during the pandemic. Net profit expanded from 1.2 million yuan to 441.6 million yuan ($69.7 million).
- “The US market is very friendly in terms of policies towards the crypto mining business, so this is a key consideration for why we chose the US market,” said the CEO.
- “The U.S. infrastructure is excellent, and our power grid provides a combination of green energy that is important to the environment. [aspect] of mining. To be recognized by mainstream industry, we need to be environmentally conscious,” he added. (Forst)
read more: See our previous article on Canaan.
Tai Group acquires social media product Huobi Chat
Tai Group, a Hong Kong-based investment holding group that invests in blockchain, metaverse and related technologies, last week announced the acquisition of Huobi Chat, the social media product of leading cryptocurrency exchange and financial services provider Huobi Group. announced that it was completed. Pandaily first reported the story.
- With this acquisition, Tai Group hopes to turn Huobi Chat into one of the world’s first NFT social platforms and promote the development of China’s Metaverse infrastructure.
- In addition to investing in the metaverse and blockchain, Tai Group also operates a digital collectibles platform to facilitate the digitization and distribution of brands and local IP. The company reportedly partners with Beijing, Chongqing, Xi’an and Hunan Culture and Tourism Bureaus, as well as brands such as: JD.comGree Electric, and HTC.
- Launched in 2018, Huobi Chat is an instant messaging app for the blockchain and cryptocurrency community. Huobi Chat invests hundreds of millions of RMB in research and development every year.
- As of July 2022, the platform has gained over 7 million users, making it one of the best-known and most popular instant messaging apps among blockchain enthusiasts.
- According to local reports, China’s digital collectibles market is expected to exceed 70 billion yuan ($10.35 billion) by 2026. As of August 2022, he has over 1,000 new digital collectibles companies registered in the sector. (bread daily)
NFT Research Project Leading People’s Daily Industry Development
People’s DailyThe state-run newspaper and spokesperson for the Chinese Communist Party launched an NFT research project to “guide the orderly development of digital art” as the industry’s rules remain unclear. The SCMP first reported the story.
- The People’s Lingjing Research Institute was established as a joint venture between the paper’s corporate entity and Sinofaith, a Shanghai-based intellectual property firm. The Academy will focus its research on legal issues, technical standards, and regulatory models for the ‘process of digitizing works of art’. People’s Daily.
- People’s Daily It opened the lab in January as a way to promote its own digital collectibles, China’s answer to restrictions on building digital assets on decentralized blockchains. Unlike standard his NFTs, which are built on public blockchains and backed by cryptocurrencies, digital collectibles are built on centrally managed blockchains and backed by fiat currencies.
- According to the SCMP, the Academy’s research projects and publications must pass through China’s digital publishing system and censorship mechanisms.
- Lingjing focuses on exploring the “content regulation model” for publishing digital art, guiding the “orderly development” of the market. People’s Daily. In addition, we will consider issuing digital collectibles abroad as a means of promoting Chinese culture. (SCMP)
Schwab Launches Crypto ETF on NYSE
Last week, multinational financial services firm Charles Schwab launched the first crypto-themed ETF on the New York Stock Exchange (NYSE). CoinDesk and his Investopedia were the first to report the story.
- The ETF trades under the ticker symbol STCE and tracks Schwab’s Crypto Thematic Index. It is “designed to provide global exposure to companies that may benefit from the development or exploitation of cryptocurrencies (including Bitcoin) and other digital assets. It is connected to blockchain and other distributed ledger technologies, according to.
- In other words, rather than investing directly in crypto, ETFs provide exposure to the crypto ecosystem through companies that make crypto part of their business activities.
- According to the company’s official press release, the fund will also track companies that may benefit from verification of consensus mechanisms, cryptocurrency mining, digital asset trading and brokerage services.
- Annual operating costs are the lowest at 0.30%, according to Charles Schwab.
- The decision to launch a cryptocurrency ETF is a dramatic shift for Charles Schwab, whose CEO Walt Bettinger has repeatedly expressed his concerns about crypto assets. However, in January 2022, the CEO said cryptocurrencies were “hard to ignore.”
- Schwab joins BlackRock (BLK) and Fidelity as financial institutions launching crypto-related exchange-traded products this year. (CoinDesk, investedia)
Coinbase shares surge 10% on boost from meme traders
Bankrupt cryptocurrency exchange Coinbase Global shares rose 10% on Thursday after the company said it would allow institutional investors to buy bitcoin after announcing a partnership with BlackRock. CNBC and Barron’s first reported the story.
- Coinbase’s unusual rally could be the result of a “short squeeze” that occurs when the stock price rises, prompting traders who bet that the price will fall to buy it to avoid bigger losses. be urged.
- Coinbase opened Monday at $60.96 per share and traded above $116 as of early Thursday. That’s a staggering 90% jump.
- Coinbase will provide a primary service to institutional investors in Aladin, BlackRock’s portfolio management platform, the company said in a blog post. Coinbase offers crypto trading, custody, prime brokerage and reporting capabilities.
- “Our institutional investors are increasingly interested in gaining exposure to the digital asset market and are looking to invest in these assets,” said Joseph Charom, Global Head of Strategic Ecosystem Partnerships at BlackRock, in a statement. Focusing on how to efficiently manage the investment lifecycle, the partnership will enable “managing bitcoin exposure directly in existing portfolio management and trading workflows.” (CNBC, Barons)
That’s it for this week’s newsletter. Thank you for reading. As always, we welcome your feedback to make this newsletter better. Please contact [email protected]See you next week!