Stock of game company triples post purchase of Bitcoin, Hong Kong ETF: Asia Express

Stephen Chow NFTs plummet 70% post-launch, Bybit cautioned by Hong Kong regulators, Boyaa Interactive to inject $200M into crypto, and more!

Hong Kong gaming firm to double down on $100 million crypto investment

Shares of Boyaa Interactive, the renowned Hong Kong online gaming firm, have experienced an astounding surge of 318% in the last month. This unprecedented rise follows the bold decision of the company to commit $100 million towards cryptocurrency investments. With $45 million allocated to Bitcoin (BTC), $45 million to Ether (ETH), and $10 million to stablecoins like Tether (USDT) and USD Coin (USDC), Boyaa Interactive has positioned itself at the forefront of the evolving financial landscape.

Announcing this strategic move on March 8, the company disclosed its acquisition of 1,110 Bitcoin at an average unit price of approximately $41,790, alongside 14,855 Ether with an average unit price of approximately $2,777, and around 8,000,000 units of Tether. Not content with their initial investment, Boyaa Interactive is doubling down on their crypto venture with an additional $100 million injection.

Beyond its groundbreaking foray into cryptocurrencies, Boyaa Interactive boasts a robust gaming business, raking in an impressive revenue of 100 million yuan ($13.90 million) and earnings of 32.05 million yuan ($4.46 million). This success underscores growth rates of 6% and an astonishing 72%, respectively. Notably, amidst a bearish stock market climate in China, many firms are sitting on substantial cash reserves, presenting prime opportunities for strategic investments. Boyaa Interactive’s confident strides into both gaming and cryptocurrency markets reflect its unwavering commitment to innovation and growth.

‘Nobody’ buying Stephen Chow NFTs right now

The 10,000-profile picture collection dubbed “Nobody,” curated by the esteemed Hong Kong director Stephen Chow, has witnessed a remarkable shift in its floor price, plummeting over 70% in just the past month.

OpenSea data reveals a stark decline in the lowest floor price of a Nobody NFT, now standing at 0.22 Ether per piece, a significant drop from its peak at 0.99 ETH recorded on Feb. 5.

Despite robust promotional endeavors, including exclusive autographs from Chow himself, enticing perks for NFT holders in his upcoming cinematic ventures, and strategic collaborations with renowned artists, the traction seems to have hit a plateau following an initial surge during the launch phase. At its peak, Nobody NFTs had surpassed a trading volume of 10,000 Ether.

In a notable transaction on Feb. 8, Ray Chan, the co-founder and CEO of the prominent Hong Kong entertainment platform 9GAG, secured the rare “Monkey King” Nobody NFT for a remarkable 19.52 Ether, marking a staggering 3,155% premium over the collectible’s then-floor price. Presently, the highest bid for this coveted asset stands at 0.63 Ether, underlining the dynamic nature of the NFT market.

No more Bruce Lee NFTs?

“No other NFT collection is exempt from the aftermath of a bull run fueled by speculation and euphoria. In April 2023, the Bruce Lee Foundation, led by Shannon Lee, daughter of the Kung Fu legend, joined forces with NFT video platform Shibuya to introduce The House of Lee collection, commemorating her father’s enduring legacy. Despite the initial buzz surrounding the release, the collection has experienced a staggering 87% decline in Ether value from its peak.

Touted as ‘Your ticket to the House of Lee,’ these NFTs were expected to be the precursor to a broader Web3 collaboration, yet the Bruce Lee Foundation has not unveiled any further NFT initiatives following the Genesis collection.”

A platypus rollercoaster for Wassies

Witness the classic narrative of hype followed by recalibration with Wassies By Wassies, an avant-garde NFT profile picture collection steeped in platypus aesthetics, championed by none other than the illustrious DeFi investigator, ZachXBT. Embarking on a journey that began with the inauguration of a pop-up-themed oasis in the heart of Singapore, Wassies soon captivated the market with promises of a meme-token airdrop slated for the near future, much to the delight of NFT aficionados. The consequence? The valuation of Wassie Avatars surged astronomically, catapulting from a modest 0.33 ETH to a staggering 2.5 Ether.

Yet, as the dust settled post-airdrop snapshots for Wassie NFT holders, the valuation underwent a course correction, settling around a commendable 0.75 Ether—an impressive return for early investors, nonetheless.

Between 2020 and 2021, the NFT realm experienced an unprecedented surge, culminating in monthly trading volumes reaching an unprecedented $1 billion. While the current landscape exhibits signs of resurgence amidst the prevailing crypto bull market, it’s evident that NFTs are yet to reclaim their former pinnacle of glory.

Bybit reprimanded in Hong Kong

The past week has seen a flurry of activity within the Hong Kong crypto sector, with both firms and regulators making significant moves.

On March 14, the Securities & Futures Commission (SFC) of Hong Kong took decisive action by placing Bybit, a prominent crypto exchange, and 11 of its associated investment products under official investment warning. These products, ranging from futures and options to leveraged tokens and lending services, were flagged due to concerns regarding their offering to Hong Kong investors. The SFC emphasized that no entity within the Bybit group holds the necessary licenses or registrations to conduct regulated activities in Hong Kong.

In Hong Kong, the regulatory landscape for crypto-related products is clear: offerings such as futures contracts or securities fall under the scrutiny of the Securities and Futures Ordinance (SFO). Engaging in the dealing or marketing of such products within or towards Hong Kong requires proper licensing from the SFC, barring any exemptions. The SFC reiterated the severity of non-compliance, stating that conducting regulated activities without proper authorization constitutes a criminal offense.

Despite a subsidiary of Bybit, Spark Fintech Limited, having applied for a retail crypto trading license in February, Bybit’s parent company currently lacks registration to operate in Hong Kong. With the February 29 deadline for crypto exchanges to seek regulatory approval having passed, remaining firms are now obliged to vacate the city by May 31.

Hong Kong’s ‘in kind’ Bitcoin ETFs

Gary Tiu, the executive director at licensed Hong Kong crypto exchange OSL, confidently disclosed that a potential spot Bitcoin ETF in Hong Kong would boast a distinct structure compared to its United States counterparts upon approval.

During a March 14 Bloomberg interview, Tiu emphasized that the Hong Kong operating model would enable the fund to directly receive BTC from subscribers and distribute Bitcoin directly to investors in case of redemptions, thereby reducing trading execution costs significantly. Tiu articulated:

“The overwhelming support we’ve garnered from issuers and the entire ecosystem for Hong Kong products suggests we should anticipate highly competitive market-maker behavior in Hong Kong, rendering the product far more appealing to investors.”

Responding to inquiries regarding the likelihood of an Ethereum spot ETF, Tiu highlighted that the U.S. is yet to greenlight any products in this domain.

“There’s undoubtedly a heightened global competition to be the first to bring such a product to market,” he asserted. “Being the pioneer holds paramount importance for the entities currently investing in this space.” As of January 29, the Securities and Futures Commission (SFC) of Hong Kong has received its inaugural spot Bitcoin ETF application from Chinese asset manager Harvest.


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