Weekly Highlights | Ethereum has completed the Shanghai upgrade, and users can now withdraw staked ETH and related earnings; Hong Kong will invest over 700 million HKD to accelerate the development of the digital economy

Organizer: Xiangxiang Xi, ChainCatcher

Important News

1. Ethereum has completed the Shanghai upgrade, users can now withdraw staked ETH and related earnings

According to ChainCatcher, data from OKLink shows that Ethereum has completed the Shanghai upgrade (Epoch 194048). This upgrade includes: upgrades to the execution layer (Shanghai upgrade), upgrades to the consensus layer (Capella upgrade), and changes to the engine API. Previously, in September 2022, Ethereum successfully transitioned to a proof-of-stake (PoS) consensus mechanism, allowing users to become validators by staking 32 ETH. The Shanghai upgrade adds withdrawal functionality, enabling users to withdraw staked ETH and related earnings. (Source link)

2. Hong Kong Chief Executive John Lee: Over HKD 700 million will be invested to accelerate digital economy development

According to ChainCatcher, at the 2023 Digital Economy Summit, Hong Kong SAR Chief Executive John Lee stated that over HKD 700 million will be allocated in this year's budget to accelerate the development of the digital economy, along with over HKD 9 million for a series of international initiatives and measures. He emphasized the promotion of Hong Kong's virtual asset industry, noting that Web 3.0, representing the third generation of the internet, has tremendous growth potential. (The Paper)

3. FTX has recovered $7.3 billion in assets and may consider restarting trading operations

According to ChainCatcher, lawyers from Sullivan & Cromwell stated at a court hearing on Wednesday that FTX is considering reopening its trading platform at some point in the future. One possible option is for FTX's creditors to convert their claims into shares of the trading platform after it restarts. The lawyers informed the court that a restructuring plan will be submitted in July, which may be confirmed in the second quarter of next year. However, restarting still requires significant fundraising, and there is internal debate about whether the funds should come from FTX's assets or third-party capital.

Additionally, the lawyers stated that FTX has currently recovered approximately $7.3 billion in assets, which is higher than the $1.9 billion reported in January.

Following this news, FTT prices surged, with a 24-hour increase of over 75%, currently reported at $2.41. (Source link)

4. Twitter will support users in trading cryptocurrencies, stocks, and other financial assets through a partnership with eToro

According to ChainCatcher, CNBC reports that Twitter will allow its users to access stocks, cryptocurrencies, and other financial assets through a partnership with social investment platform eToro. Starting Thursday, the Twitter app will launch a new feature that allows users to view market charts; buy and sell stocks and other assets from eToro; and access market data for more financial tools. (Source link)

5. Total locked value of Ethereum Layer 2 surpasses $10 billion for the first time

According to L2BEAT data, the total locked value (TVL) of Ethereum Layer 2 has surpassed $10 billion for the first time, currently around $10.29 billion, setting a new historical high. Among them, Arbitrum's TVL is approximately $6.83 billion, and Optimism's TVL is about $2.13 billion. (Source link)

6. EOS launches EOS EVM mainnet test version

The EOS Foundation has deployed the EOS EVM test version on its mainnet, following the launch of the testnet at the end of last month.

Yves La Rose, founder of the EOS Network Foundation, stated: "Our goal is to create an interoperable future that bridges the gap between blockchains, developers, and users. With EOS EVM, Ethereum developers and users can now more easily leverage the low fees, ultra-fast speeds, and reliability of the EOS network. EOS EVM is an important milestone that represents our commitment to a multi-chain future."

It is reported that EOS EVM aims to be the highest-performing and most compatible EVM in the industry. Additionally, EOS Network Ventures recently announced a $20 million investment in GameFi and EOS EVM projects. (Source link)

7. zkSync ecosystem DEX project SyncDex Finance suspected of running away

According to ChainCatcher, the zkSync ecosystem DEX project SyncDex Finance is suspected of running away, with its official Twitter account and Discord channel both closed.

Users have disclosed that they staked over 100 ETH and 98,444.8 USDC in the project. The staking pool is currently locked, and users can no longer withdraw funds. (Source link)

8. HashKey launches ecological token HSK, with a total supply of 1 billion

According to official news, digital asset financial service provider HashKey has launched the ecological token HSK on Ethereum, aimed at incentivizing contributors to the HashKey ecosystem, including its users and partners. The total supply of HSK is 1 billion, with 65% allocated for ecological growth, 30% for the team, and 5% for reserves. HSK will be distributed as rewards for using HashKey exchange services and will expand to more business line reward programs in the future. HSK will be regularly repurchased and burned from the circulating supply to offset the dilution effect of reward distribution. (Source link)

9. ZA Bank in Hong Kong will provide cryptocurrency to fiat currency exchange services through licensed exchanges

According to Bloomberg, Ronald Iu, CEO of ZA Bank in Hong Kong, stated in an interview on Tuesday that ZA Bank will provide cryptocurrency to fiat currency exchange services through licensed exchanges. Ronald Iu mentioned that ZA Bank will act as the settlement bank for customers, allowing them to withdraw in Hong Kong, Chinese, and US currencies after depositing cryptocurrencies at the exchange.

Ronald Iu also stated that this business model has been operating with HashKey and OSL, which are currently the only two licensed cryptocurrency exchanges in Hong Kong. ZA Bank will also provide the same services to other licensed exchanges. (Source link)

10. Q1 2023 crypto industry financing reached $2.3 billion, the lowest level since Q4 2020

According to RootData, from January to March 2023, the crypto industry disclosed a total of 309 project financing events, with a total financing amount of $2.317 billion, far below the $12.48 billion in Q1 2022, a year-on-year decline of about 81%. Compared to the $3.463 billion in Q4 2022, there is also a significant decline, with a quarter-on-quarter decrease of 33%.

Among them, the number and amount of financing in the infrastructure track were the highest among the nine major tracks, with an average single financing amount exceeding $10 million; the DeFi track ranked second in the number of financing events and fourth in financing amount; the gaming and social entertainment tracks ranked third and fourth in the number of financing events, respectively. (Source link)

11. Hong Kong SFC requires DeFi projects to be regulated and apply for licenses

At the "2023 Hong Kong Web3 Carnival," the acting head of the Intermediaries Division of the Hong Kong Securities and Futures Commission, Choi Chung-fai, stated today that DeFi projects need to be regulated by the SFC, and automated trading services also fall under SFC regulation. Decentralized exchanges that involve virtual assets also need to apply for licenses. Some DeFi protocols are nominally decentralized, but in reality, a small number of developers hold a large amount of governance tokens, and their substance rather than superficial claims needs to be analyzed. (Source link)

12. Hashkey Group's compliant exchange Hashkey Pro is set to launch

According to ChainCatcher, Hashkey Group will soon launch a compliant exchange named Hashkey Pro, expected to go live in the second quarter of this year, and has obtained permission from the Hong Kong Securities and Futures Commission. After Hashkey Pro launches, it will first be open to institutions and qualified investors. The exchange has confirmed partnerships with banks that have local and Chinese backgrounds, supporting USD deposits and withdrawals through direct bank transfers.

Earlier today, Hashkey Group announced the launch of ecological token HSK. According to the white paper, early users who register, trade, and provide liquidity on HashKey PRO can receive ecosystem rewards. Additionally, HSK can enjoy trading fee discounts, with Maker trading fees settled in HSK potentially being completely waived; waivers for withdrawal fees on specific assets; early trading of newly listed assets; and access to new products and upgraded features. (Source link)

13. Bank of America and Fidelity both have indirect Bitcoin exposure through increased holdings in MicroStrategy stock in Q1

Bank of America and Fidelity both held significant amounts of MicroStrategy stock on their balance sheets in the first quarter, indicating institutional interest in indirect Bitcoin exposure. As of the end of March, Bank of America reported purchasing 86,147 shares of MicroStrategy (MSTR) in Q1. According to a filing with the SEC, Fidelity increased its holdings by 97,199 shares during the same period.

Since MicroStrategy began holding Bitcoin as a reserve on its balance sheet, the company's stock price has closely tracked the price of Bitcoin. Many traders still view this stock as one of the closest publicly traded proxies for Bitcoin spot exposure. As of April 4, MicroStrategy holds 140,000 Bitcoins.

ChainCatcher previously reported, that BofA Securities, Inc. and Fidelity Management & Research Company were both among the top 10 shareholders of MicroStrategy in Q1 2023. (Source link)

Important Financing/Venture Capital News

1. Sei Network completes $30 million financing at an $800 million valuation, with participation from IOBC Capital and others

Sei Network announced the completion of a $30 million financing at an $800 million valuation, with participation from IOBC Capital, Distributed Global, Multicoin Capital, Asymmetric Capital Partners, Flow Traders, Hypersphere Ventures, Jump Capital, and Bixin Ventures. The funds will be used for development and marketing in the Asia-Pacific region.

It is reported that Sei is still in the public testing network phase and plans to launch its mainnet later this year.

Additionally, according to crypto data platform RootData, Sei Network previously completed $5 million in financing, with past investors including Multicoin Capital, Coinbase Ventures, GSR, Flow Traders, and Hudson River Trading. The new round of financing brings Sei Network's total financing to $35 million. (Source link)

2. Sei Labs ecological fund completes $50 million new round of financing, with participation from Bitget and Foresight Ventures

According to Fortune, after announcing a financing round valued at $800 million, Sei Labs has completed a new round of financing of $50 million for its ecological fund, with participation from Bitget and Foresight Ventures. To date, the company's total financing has reached $120 million. (Source link)

3. Hong Kong Web3Hub ecological fund officially launched, with a scale of $10 million

During the sub-forum "MetaEra x BitMart: Where are the Opportunities in the Metaverse" at the "2023 Hong Kong Web3 Carnival," Mr. Zhang Guojun, Deputy Secretary for Justice of Hong Kong, delivered a speech announcing the launch of the Hong Kong Web3Hub ecological acceleration plan, with a scale of $10 million, aimed at incentivizing more enterprises to settle in Hong Kong.

Combining blockchain skills and artificial intelligence to provide a convenient and cost-effective security platform, looking ahead, Hong Kong aims to better develop its unique advantages under "one country, two systems," driving high-quality development through technological innovation while attracting talent from home and abroad.

4. Indian venture capital fund pi Ventures secures $12 million investment commitment from SIDBI Bank

Indian early-stage venture capital fund pi Ventures announced that it has received an investment commitment of 1 billion Indian Rupees (approximately $12 million) from the startup fund (FFS) managed by the Small Industries Development Bank of India (SIDBI). The fund has also received support from investors such as BII, Nippon India Digital Innovation AIF (NIDIA), Accel, Colruyt, and Binny Bansal, Varun Alagh, among others. Pi Ventures announced that it will use this funding to invest in deep tech startups across industries such as artificial intelligence and blockchain.

Currently, pi Ventures' investment portfolio in the crypto and blockchain industry includes Web3 cybersecurity company Silence Laboratories, industrial technology company SwitchOn, and blockchain B2B currency supply chain management platform OweMe, among others. (Source link)

5. Web3 game studio Mayhem Studios completes $20 million Series A financing, led by Sequoia Capital

Indian P2E game development company Mobile Premier League (MPL) announced that its studio Mayhem Studios has completed $20 million in Series A financing, led by Sequoia Capital, with participation from Steadview Capital, Truecaller, and others.

It is reported that MPL launched the NFT marketplace Good Game Exchange (GGX) last month and also initiated a Web3 gaming strategy based on play-to-earn (P2E) as part of its group development plan. (Source link)

6. Zero-knowledge proof L2 project CryptoGPT completes $10 million financing at a $250 million valuation, led by DWF Labs

According to CoinDesk, the zero-knowledge proof Layer 2 network CryptoGPT has completed $10 million in financing at a $250 million valuation, led by DWF Labs. CryptoGPT aims to allow users to monetize data from areas such as fitness, dating, gaming, and education to earn money, while planning to launch NFTs that store owner activity data.

It is reported that CryptoGPT recently launched a Web3-focused AI assistant named "Alex" and is developing its ZK Rollup-based Layer 2 blockchain and AI engine, which will collect, encrypt, and transmit data for commercial applications. (Source link)

7. Financial service company Tradier, providing cryptocurrency trading, completes $24.6 million Series B financing, led by PEAK6 Strategic Capital

Financial service company Tradier, which offers retail cryptocurrency trading, announced the completion of $24.6 million in Series B financing, led by PEAK6 Strategic Capital, with participation from Prime Capital and KF Business Ventures.

It is reported that Tradier's full-featured platform supports cryptocurrency, stock, and options trading, allowing users to seamlessly navigate between Tradier Brokerage and crypto accounts. The company plans to use the new funds to expand its product range, enhance its API, and improve global debit financing, futures, and cryptocurrency segments. (Source link)

8. Bankruptcy claims trading platform Xclaim completes $7 million Series A financing

Bankruptcy claims trading platform Xclaim announced the completion of $7 million in Series A financing. Xclaim allows trading of major bankruptcy creditor claims, including those from FTX, Genesis, and BlockFi. Currently, the claim price for FTX is 19 cents, up from 13 cents earlier this year, while Genesis is at 52.5 cents and BlockFi at 18 cents. (Source link)

9. NFT social platform HUG completes $5 million financing, led by DIGITAL

NFT social platform HUG has completed $5 million in seed round financing, led by DIGITAL, with participation from OKX Ventures, L'Oréal's BOLD corporate venture fund, Venrex, Jae Holdings, Cryptology, Samara, and Aa Sons. HUG aims to create a social marketplace that connects digital art and NFT creators with existing and potential collectors. (Source link)