HK crypto ETFs on fire, Binance warns on Maverick FOMO, Poly hack: Asia Express

The rise in popularity of Hong Kong cryptocurrency ETFs

During an interview on June 28 with Hong Kong's public broadcasting agency, Radio Television Hong Kong, Hang Seng Investment Management CEO and board member Peishan Li revealed that digital asset ETFs trading in China's special administrative region have surpassed $12 billion Hong Kong dollars ($1.532 billion) in assets under management. Li noted:

“At present, there is no clear objective [from our firm] to create a virtual asset-themed ETF, but has paid close attention to developing related asset classes and is examining the possibility of implementing virtual currencies into existing investment products.”

According to figures provided by Li, the total AUM of Hong Kong cryptocurrency ETFs grew by 80% compared to December 2022, with a daily trading volume of HKD 1.7 billion. This represents 6% of the daily trading volume of all shares on the Hong Kong Stock Exchange. The SAR previously allowed the listing of crypto ETFs in July 2022, which initially had trouble gaining traction.

Binance Co-Founder Warns of Altcoin Defeat

On July 2, Binance co-founder and former Chinese TV host Yi He warned, "Don't trust trading signals from the community blindly chasing higher prices," noting that the price of major altcoins "has fallen by 80-90%" of late. The warning came just days after the exchange listed MAV, the Maverick permissionless decentralized financial protocol token, and offered perpetual MAV contracts with 20x leverage.

Launched in March, Maverick boasts an advanced network of automated market maker liquidity providers, securing a $9 million funding round in June. The protocol is backed by prominent names like Jump Crypto, Pantera Capital, Circle, and Gemini. Since its launch, the protocol has reached nearly $55 million in total value locked.

Shortly after listing, MAV spiked to $1.98 a piece on Binance before falling to $0.43 at press time, which is still significantly higher than its initial listing price of $0.05. . He wrote:

“Based on the history of previous cycles, the first day of an IEO yields several times [return]and it is not in line with the current market situation to raise it to 10x or 20x [return]. Please DYOR."

Amid the retail frenzy, the Binance co-founder also warned: “Binance does not control the price of tokens. The price is affected by both buyers and sellers. Pay attention to investment risks.” Despite a thaw in the crypto markets, the market capitalization of coins and tokens, excluding Bitcoin, has remained stagnant over the past year at around $550 billion.

Although not as popular as his counterpart, Changpeng Zhao, He is responsible for Binance's overall branding and marketing strategy and is credited with the exchange's rise to prominence. She now also serves in the additional role of director of Binance Labs. She is also Zhao's partner, both business and romantic, and the two share two children.

Chinese DeFi protocol hacked once again

On July 2, the Chinese DeFi Poly Network protocol Announced it had been hacked yet again, and the breach affected as many as 57 different asset types across 10 blockchains.

According to Arhat, a DeFi security analyst, the hackers allegedly exploited a smart contract vulnerability that allowed them to mint an unlimited number of tokens from Poly Network's multi-chain pools. Tokens worth an estimated $42 billion were minted, though only $5 million has reportedly been minted. The developers wrote:

“We kindly request the assistance of cybersecurity professionals and people with relevant knowledge. If you have any information that may help us in this effort, we encourage you to actively contact us."

Shortly after the hack, the total value locked in the Poly Network plummeted from $277 million to $176 million. Previously in August 2021, hackers stole at least $600 million of the Poly Network in what cybersecurity firm SlowMist called "a long-planned, organized and prepared attack."

However, just two days later, the hacker returned almost all of the stolen funds and refused a $500,000 white hat bounty, saying, "I'll give you all your money back," and that the hack was just "for fun" because "crossing -Chain piracy is in fashion”.

Hong Kong launches Web3 Task Force

On June 30, Hong Kong Announced the establishment of a Web3 working group headed by Paul Chan Mo-po, financial secretary of the SAR. The team is made up of 15 industry veterans, along with regulators and government officials, all with two-year terms. According to the officials, the Web3 Working Group will be dedicated to the sustainable and responsible development of emerging Web3 technologies in Hong Kong, along with submitting proposals to the government.

Chan commented, “The blockchain technology behind Web3 has the characteristics of disintermediation, security, transparency, and low cost, and it can solve many difficulties and pain points in finance, transactions, business operations, and even life.” He went on to say that "an international financial center" and a "metropolis" like Hong Kong should embrace Web3 development, albeit under "proper regulation."

July 3, Yat Siu, CEO of Animoca Brands was appointed to the task force. Previously, the crypto exec stated that crypto VC is only struggling “from an American perspective” and that the industry is actually “very vibrant” in both the Middle East and Asia.