Daily Web3 Headlines You Need To Know
29 August #GameFi #DeFi&Trading #Policy&Law
GameFi investors now prioritize entertainment over money
Roughly half of the investors initially entered the GameFi space for profit, while 89% of GameFi investors succumbed to Crypto Winter 2022–62% lost more than 50% of their profits. GameFi earnings are falling. However, investors believe the poor in-game economy design is the main reason for their losses…(Read More)
📈 DeFi & Trading
Singapore Plans to Make Crypto Trading More Difficult for Retail Investors
Regulators in Singapore are tightening their grip over crypto trading activities in the country. On Monday, August 29, the chief of Singapore’s central bank said that the city is considering new measures to make crypto trading even more difficult for retail investors…(Read More)
Large XRP Addresses Move More than 150 Million Coins
XRP witnessed a marginal price surge of 1% in the past 24 hours. In terms of weekly performance, the digital asset was down by almost 2%, compared to a dip of approximately 10% in ETH and over 5% in Bitcoin. The movement of XRP coins across the network has increased in the last few days…(Read More)
⚖️ Policy & Law
Do Kwon Accused of Laundering $80M In Latest Lawsuit
Terra executives including Do Kwan have been charged with violating the Racketeer Influenced and Corrupt Organizations Act. Do Kwon has been accused of artificially inflating the price of UST and then publishing misleading information to cover its track…(Read More)
Zipmex Seeks Meeting with Thai Regulator before Closing Funding
Zipmex, a troubled cryptocurrency exchange that suspended withdrawals in July, is asking to arrange meetings with potential investors and Thailand’s Securities and Exchange Commission (SEC) before sealing a funding deal…(Read More)
On July 20, the Southeast Asian cryptocurrency exchange Zipmex officially tweeted an announcement suspending user withdrawals until further notice, explaining that this was due to multiple factors beyond the company’s control including market volatility and the financial distress of some of the company’s key business partners. This comes after several cryptocurrency institutions have taken similar action such as Celsius Network and Vauld.
The Thai exchange Zipmex sought bankruptcy protection against creditors taking legal action. The company last week froze user withdrawals and filed suspension applications in Singapore for various entities. They are Zipmex Asia Pte LTD, Zipmex Company Limited ,and Zipmex Australia Pty LD. Under the country’s laws, the move would give Zipmex protection from claimants continuing or commencing proceedings for 30 days, or until the Singapore court rules on the application.
What is Zipmex?
Zipmex operates across several countries in the Asia Pacific region. However, it is known for its strong footing in Thailand, where it operates with a regulatory license. Additionally, it has a presence in Singapore, Australia, and Indonesia.
Zipmex ran into a liquidity crunch after its exposure to embattled Babel Finance soured, forcing it to halt withdrawals. The Singapore Court grants Zipmex a three months creditor protection until 2 December 2022 that provides it protection from creditors while it finalized investors for fresh funding.
In an attempt to stay afloat, Zipmex has asked for meetings with the Securities Exchange Commission in Thailand, where it runs a licensed-exchange, as well as other government agencies as it works on a recovery plan.
A Victim of Crypto Contagion
Previous disclosures have revealed that Zipmex lent Babel Finance $48 million and Celsius $5 million. Zipmex explain prior to the recent events of crypto winter the financial history of these firms suggested they’d have little issue repaying their respective debts.
However, a Singaporean arm of Zipmex faces a loss on about $100 million of funds lent through a product called “ZipUp” to the now beleaguered, Hong Kong-based Babel. Zipmex made the loan earlier, part of an effort to generate additional yield.
Back in July, Zipmex froze withdrawals citing financial difficulties that linked back to the liquidity crisis faced by two crypto lenders, Babel Finance and Celsius. It has now resumed partial withdrawals from its trade wallet. The latest development comes ahead of a funding deal of $50 million that Zipmex has been anticipating. The exchange has not divulged the names of any investors but has asserted that it was in advanced stages of discussion with two such prospects and is nearing concluding the deal.
But does this mean that the troubled Zipmex will not be troubled?
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