White Star Capital Digital Assets Fund - Newsletter #129
Beijing opens up to blockchain, releasing a web3 white paper
Beijing Opens Up To Blockchain, Releasing a Web3 White Paper
Blockchain technology’s main application today is cryptocurrencies. But they are not one and the same, as China’s bifurcated approach has shown. Whilst it has a fraught relationship with cryptocurrencies like Bitcoin, it has increasingly actively supported blockchain technology in its national economy.
In 2021, the Chinese government illegalised cryptocurrency trading in China, considering it a threat to its financial control. President Xi Jinping has said, however, that blockchain would play ‘an important role in the next round of technological innovation and industrial transformation.’
And so, over the years, Beijing has pushed for more experimentation with distributed ledger technology and use cases that benefit its national economy, whilst maintaining a ban on cryptocurrencies.
The country’s two main tech industry regulators, the Ministry of Industry and Information Technology (MIIT) and the Cyberspace Administration of China (CAC), have previously published guidelines for the proposed use of blockchain broadly across a range of industries by 2030. The government-based support has lead to a flood of innovation and investment into the space, with over 1,800 blockchain companies registered with the CAC by July 2022, whilst MIIIT officials claimed that China accounts for the most blockchain patent applications of any country (84% of global total.
This has lead to firms such as Alibaba, one of the world’s largest tech firms by market capitalisation, to announce its plans to power node-as-a-service initiatives with Avalanche blockchain.
In February, the Chinese Ministry of Science and Technology even approved the establishment of the National Blockchain Technology Innovation Centre, which is planned to develop both software and hardware technology related to blockchain.
And now, Beijing has released a Web3 white paper to promote the industry’s development. In the paper, released by the Beijing Municipal Science and Technology Commission, it states that Web3 technology is an ‘inevitable trend’, described as a three-dimensional space with immersive and interactive experiences. To that end, it describes its aims to construct Beijing as a global innovation hub, planning to annually spend ¥100m until 2025 on developing the city’s Chaoyang district. Combined with the state broadcaster China Central Television broadcast a cryptocurrency segment this week featuring the Bitcoin logo, which Binance’s CEO Zhao described as a ‘big deal’, it suggests a continued warming up by the state to the blockchain industry.
🔦 White Star & Portfolio Spotlight
Utilize $CAKE Collateral: Access Stablecoin Loans without Liquidation on Thala Protocol
Thala protocol enables users to obtain stablecoin loans using $CAKE as collateral, earning a 20% yield through lending borrowed MOD in the MOD-USDC pool. As Aptos ecosystem grows, it will introduce new collateral types not found in DeFi.
ALEX announces Listing of $OXBT and $TRAC cryptocurrencies
ALEX has listed $OXBT and $TRAC on the B20ByALEX platform, inviting user participation and explaining how to earn the BRC20 token, $B20. It has also introduced permissionless listings for BRC20 tokens and presented the initial set of candidate tokens for this feature.
Exclusible introduces the Metaverse Beauty Week
Exclusible introduces the inaugural Metaverse Beauty Week across multiple metaverse platforms, featuring immersive experiences by brands such as LUSH and Neutrogena. This event seeks to redefine digital beauty standards and explore the convergence of beauty, technology, and community.
Cometh introduces Alembic
Cometh introduces Alembic, an innovative platform streamlining Web3 game and decentralized application (dApp) development. Alembic offers user-friendly features such as zero gas fees, multiple login choices, and credit card NFT purchases, along with developer tools like an NFT Marketplace SDK, built-in Relayer and Indexer, and Modular Account Abstraction, all powered by a scalable and fully EVM-compatible Optimistic Chain.
🏦 Enterprises & Institutions
Mercedes Benz Web3 arm to release NFT Collection with digital art community fingerprints DAO
Mercedes-Benz and Fingerprints DAO Release "Maschine" NFT Collection, Bridging Art and Automotive Concepts. The collaboration with artist Harm van den Dorpel explores generative art inspired by velocity and perception, supported by Mercedes-Benz NXT's Web3 initiative.
Kellogg’s could jump into the Metaverse: 12 Trademark filings reveal NFT interest
Kellogg's has filed trademarks for brands like Froot Loops and Pop-Tarts, suggesting plans to create NFTs using their intellectual property in online virtual worlds. This aligns with the trend of companies, including Mercedes Benz and Fidelity, filing trademarks related to NFTs and the metaverse.
JP Morgan files patent for ChatGPT finance clone, IndexGPT
JPMorgan Chase filed a trademark application for IndexGPT, a finance-themed chatbot designed for advertising, marketing services, securities value indexing, and online financial information and advice. The company emphasizes the significance of implementing AI technologies while acknowledging concerns about unregulated AI and the need for government action.
Coinbase makes International moves as US regulators stall
Coinbase has urged the SEC to provide regulatory clarity and is exploring relocation options outside the US due to regulatory uncertainty. While maintaining a US presence, Coinbase has expanded its international partnerships and operations, praising the crypto-friendly approaches of the European Union and the United Kingdom.
⚖️ Government & Regulation
Beijing releases white paper for web3 innovation and development
Beijing released a white paper to promote web3 industry development, positioning the city as an innovation hub. The timing is noteworthy as Hong Kong's new crypto rules start on June 1st, indicating a potential shift in China's stance on the industry.
Hong Kong and UAE Central Banks explore CBDCs for Cross-Border Trade Settlements
The central banks of Hong Kong and the United Arab Emirates are focusing on cross-border trade settlements and strengthening financial cooperation, signaling the potential use of central bank digital currencies (CBDCs). This could speed up transfers, reduce costs, and lessen reliance on the U.S. dollar. The UAE plans to launch a digital dirham by next year, while Hong Kong is piloting an electronic form of the Hong Kong dollar for various transactions and tokenized assets in collaboration with 16 firms.
India to onboard more Banks for Digital Rupee pilots
India's Reserve Bank (RBI) is expanding its central bank digital currency (CBDC) pilots for the digital rupee, reporting satisfactory results and planning to introduce new use cases. The pilots cover retail and wholesale implementations, aiming to enhance settlement efficiency and reduce transaction costs. India joins other countries in testing CBDCs, while the US considers proposing a Fed-issued digital dollar.
Russia drops plans for State-Run Crypto Exchange
Russian lawmakers have chosen to regulate existing private enterprises in the crypto industry rather than pursue a state-owned exchange. This cooperative approach aims to minimize risks, promote competition, facilitate cross-border payments, and potentially introduce new restrictions.
7 Banks, including Fed, Pen Paper on possible CBDC implementation
Central banks, such as the Fed, Bank of Japan, European Central Bank, and Bank of England, are nearing a decision on whether to proceed with the implementation of central bank digital currencies (CBDCs). While some countries are not yet prepared for implementation, they are actively exploring CBDC use cases and design aspects. Hong Kong is conducting a trial of an e-HKD in a sandbox environment and plans to establish a CBDC expert group to investigate policy and technical considerations.
European Securities Regulator raises concerns over Crypto products ahead of MiCA rollout
ESMA, the European Securities and Markets Authority, has stated that cryptocurrency offerings must be labeled as unregulated until the MiCA framework is implemented, highlighting potential risks in the crypto industry. ESMA emphasizes the importance of investor protection, clear communication, and proper disclosure of regulatory status by investment firms offering crypto-related products or services.
💰 Funding & Exits
Sam Altman’s Crypto project Worldcoin raises $115M, led by Blockchain Capital
Worldcoin, developed by Tools for Humanity, has secured $115 million in a Series C funding round led by Blockchain Capital, alongside a16z, Bain Capital Crypto, and Distributed Global. Worldcoin aims to preserve personal privacy while harnessing AI for financial benefits, with its decentralized protocol and World App crypto wallet already attracting nearly 2 million users.
Transak picks up $20M for its web3 payments and onboarding platform
Transak, a London-based web3 payment and onboarding infrastructure provider, has raised $20 million in a Series A funding round led by CE Innovation Capital. Transak offers solutions to simplify onboarding and transactions between traditional finance and crypto assets, serving leading web3 applications such as MetaMask and AAVE.
Pomerium Secures $20 Million Angel Investment and got listed on Bitget
Pomerium Pte. Ltd., a leading Web3 gaming studio, has secured a $20 million angel investment to expand its blockchain-based game portfolio and drive innovation in the Web3 gaming industry. The funding will accelerate development, attract top talent, and create unique gaming experiences with ownership of in-game assets.
Tabi NFT Marketplace raises $10 Million to develop gaming ecosystem on Layer1 blockchain
Tabi, an NFT Marketplace, has raised $10 million in a funding round backed by Animoca Brands, Binance Labs, and other investors. The funds will be used to build a gaming ecosystem on the Layer1 blockchain, develop an on-chain identity protocol, and establish an "NFT Incubation Fund" to support developers and creators on the BNB Chain.
Burgercities raises $4 million funding round led by Vega Ventures for Web3 gaming and metaverse development
Burgercities secures $4 million funding round led by Vega Ventures to advance its Web3 gaming ecosystem and Metaverse. The investment will fuel the enhancement of the battle system, development of a multi-chain ecosystem, and enrichment of gameplay content, aiming to deliver a distinct Web3 experience within the BurgerCities metaverse.
Web3 creator community App PoPP raises $4 Million
PoPP, a Web3 creator community application, completes a $4 million angel round financing led by Foresight Ventures, with a valuation of $40 million. The funds will support product development, iteration, and creator incentives as PoPP prepares for its global public beta testing on the App Store, aiming to provide an integrated tool for creators and a content deposition application powered by Web3 and AI technologies.
Orbofi AI raises $2.8 Million to democratize AI-Generated content in Web3 applications
Orbofi AI, a leading generative AI engine for web3 applications, secures $2.8 million funding through private and public token sales, with participation from renowned venture capital firms. With partnerships with industry giants like Triller and a mission to democratize AI-generated content, Orbofi AI aims to onboard billions of users into the world of AI creativity, utilizing cutting-edge technology and a talented team.
zkMe raises $2M to revolutionize on-chain credential verifications with zero-knowledge proofs
ZkMe, a zero-knowledge identity oracle provider, raises $2 million in pre-seed funding from Circle Venture, Spartan Group, and other prominent venture capital firms. Their solution enables users to securely disclose credentials, maintaining privacy and control over digital identities, with applications in DeFi and Web3 ecosystems.
GoodGang Labs raises $2 Million for Avatar-Based NFT interaction
South Korean startup GoodGang Labs secures a $2 million investment from Kakao Investment to enable users to interact through animated avatars and NFTs. With support from major companies like Naver, GoodGang's innovative approach conserves network resources and enhances privacy, positioning them for future applications in virtual communication.
🚀 Project Launches & Updates
F1 Ticket provider Platinum Group introduces NFT Tickets for Global Racing Event
Platinium Group, along with Elemint and Bary, is launching NFT race tickets for the Monaco Grand Prix. These Ethereum-based NFT tickets grant access to the event and offer future loyalty rewards, showcasing the increasing use of NFTs in sports and entertainment.
New Sustainability scoring system for Bitcoin Miners
Energy Web has launched Green Proofs for Bitcoin, a certification system to connect sustainable bitcoin miners with interested companies and investors, promoting decarbonization in the industry. The system provides transparency into miners' decarbonization initiatives through a clean energy score based on factors like electricity consumption and procurement methods.
Binance launching NFT Loan feature
Binance is launching Binance NFT Loan, enabling users to borrow crypto by using their NFTs as collateral, starting with ETH loans. The feature supports NFTs from Bored Ape Yacht Club, Mutant Ape Yacht Club, Azuki, and Doodles collections, offering competitive interest rates, instant liquidity, and zero gas fees.
🔥 Other Bits We're Excited About
Roman Coppola: ‘A New Tarantino or Kubrick’ Could Come From Web3 Film World
Decentralized Pictures, headed by Roman Coppola, seeks to democratize filmmaking and foster inclusivity for emerging talent using Web3 technology. The film fund employs blockchain and decentralized governance, enabling funding opportunities through its FILMCredits token and facilitating global collaboration among filmmakers, writers, and technicians.
Meta is training its AI on the Bible and other religious texts
Meta is training its AI on religious texts like the Bible to preserve over 4,000 languages. The project includes recordings from the Bible in 6,255 languages, and Meta is open-sourcing its data and code to improve language accessibility.
Streetwear Brand The Hundreds opens Metaverse Shop with Exclusive Drops
Streetwear brand The Hundreds has launched an immersive 3D store in the metaverse platform some.place, offering exclusive drops and rewards. The virtual store aims to create an interactive and social shopping experience, focusing on community engagement.