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Shanghai Man: Chainlink hackathon, OKExChain nets $2B TVL, and Tencent unveils ‘magic’ NFT platform


This weekly roundup of stories from Mainland China, Taiwan, and Hong Kong makes an attempt to curate the industrys most necessary information, together with influential tasks, adjustments within the regulatory panorama, and enterprise blockchain integrations.

A lot like final week, Chinas minor COVID flareups dominated the headlines because the nation seeks to keep away from extra critical lockdowns. Cryptocurrency managed to remain out of the information, which contemplating the regulation just lately, can solely be considered as a very good factor.

A lot love for the layer-twos

On August 3, IOSG Ventures and Chainlink hosted the Demo Day of the Layer-Two Hackathon in Shanghai. The occasion aimed to assist builders engaged on scaling options for Ethereum and was backed by main tasks comparable to Polygon, Close to, The Graph, and Matter Labs. The successful staff, which gained bounties and mentorship, was a Synthetix-based asset administration undertaking. The winners referred to as themselves ObjK and used querying know-how from The Graph to tug knowledge from Synthetix, reaching an automatic cross-pool portfolio rebalance.


Various layer two protocols attended the hackathon. Chinas growth group maintains a really cohesive and collaborative perspective. (Supply: IOSG Ventures)


Layer-twos have at all times been standard in China, notably as customers really feel much less involved about custodial dangers and decentralization. Final week, OKEx formally launched OKExChain, which is an EVM-compatible layer-two community much like what different giant exchanges have launched.

That is of curiosity because of OKEx’s giant userbase, which ranks second solely to Binance when sorted by quantity. Layer-two networks launched by exchanges typically lack a few of the technical strengths of the devoted layer-two networks however have a large benefit in entry to customers, property, tasks and communities.

OKExChain was proof of this because it amassed over $2 billion in property within the first week. About $350 million of that’s on AMM CherrySwap, which seems to be fairly liberally based mostly on BSC’s PancakeSwap. That TVL would rank across the thirtieth largest DeFi app on all networks, across the dimension of OlympusDAO on Ethereum and BakerySwap on BSC. KSwap, one other AMM platform on OKExChain, racked up over $684 million in 24-hour commerce quantity on Thursday, which places it second behind Uniswap V3 for the busiest dApp within the business. After all, the problem shall be on the functions and community to take care of these early numbers after the beneficiant APYs have been decreased to extra sustainable numbers.

Monitoring adoption elsewhere

Regardless of declining DEX buying and selling quantity on each BSC and Huobi Eco Chain, BSC just lately noticed an explosion in exercise round CryptoBlades, an NFT sport that accounted for greater than thrice the transaction quantity of the whole Huobi Eco Chain on Thursday.

In the end, for chains like Huobi ECO or OKExChain to compete with different layer-two networks, they have to discover a option to recruit distinctive app builders to their ecosystems, relatively than counting on ports or forks from different networks. As Axie Infinity has proven, any blockchain community can develop into loaded filled with transactions and customers if the fitting utility is deployed on it.




China’s personal shadowy super-coders

In line with a Chainanalysis report, greater than $2.2 billion price of cryptocurrency had been despatched from Chinese language wallets to addresses related to illicit exercise within the two-year interval between April of 2019 and this summer time.

The majority of that is associated to the notorious PlusToken ponzi rip-off that occurred in late 2019. Since then, the variety of addresses partaking in scams and criminality has shrunk dramatically, indicating that Chinese language clampdowns are having some influence on shopper protections.

Regulators appear to be taking satisfaction of their victories, as evidenced by an article from a Folks’s Financial institution of China working convention final week, the place the digital foreign money crackdown was talked about in an inventory of 2021 efforts up to now.

Tech giants eyeing up the NFT house

Crypto firms aren’t the one ones feeling the wrath of Chinese language regulators nowadays. Over the previous week, a whole lot of billions of {dollars} have been wiped from Chinese language tech shares together with on-line schooling, supply, and video gaming.

Tencent, which invests in quite a few main sport publishers, suffered a greater than 17% drop in inventory worth this month alone. Nonetheless, that didn’t cease it from asserting this week thatit would launch an NFT buying and selling platform that roughly interprets as “Magic Core”. Third events can reportedly launch NFT paintings on the platform, and it’s designed by simply certainly one of a number of groups inside Tencent which can be growing NFT associated providers. As a consequence of China’s strict regulatory insurance policies, many of the NFTs launched by the foremost web firms are constructed on personal chains or consortium chain know-how. Alibaba additionally launched an NFT platform in late June.