WazirX ‘coordinates’ $235m loss, $10B equity reverse plan to backfire: Asia Express

Asia's weekly news roundup reviews the industry's most important developments.

Can Metaverse Solve Japan's “Hikikomori” Problem?

Research and consulting firm Yuri Group estimates that Japan could pump about $10 billion a year into its economy if even 10 percent of its 1.5 million hikikomori were engaged in the metaverse workforce.

“Hikikomori” is a Japanese term for individuals who seek extreme isolation by staying at home and withdrawing from social life. It is a complex social problem that reduces the country's manpower and affects the mental and physical health of the society.

In the year By 2023, government research shows that 1.5 million people in Japan will live as hikikomori. This is approximately 2% of the working age population.

The Japanese government is investigating Metaverse applications to address various social issues such as hikikomori, the Ministry of Communications noted in its Metaverse white paper.

But Yuri Group researcher Will Fee tells the magazine there isn't much meat on the proposal's bones. “There's a lot of stake and a lot of stake in Web3 in Japan, with little detail on how these plans are going to be implemented on the ground as government statements at the national level,” he said.

There are already some local government policies. In the year By mid-2022, Idogawa Ward in Tokyo has confirmed that one of its 76 residents will live as a hikikomori. One of the solutions developed by the ward is the Hikikomori Metaverse space, although Pay describes the project as “very weak”.

Although the Japanese coined a word for it, the phenomenon is not unique to the country. In February, San Mateo County in California declared loneliness a public health crisis. Virtual worlds can at least ensure closure and human contact.

WazirX's controversial 55/45 strategy

Wazir X In the year On July 27, he announced a “community loss” strategy in response to the $235 million hack on July 18, which amounts to 45% user fund.

The strategy is for each client to lock up 45% of their money and the remaining 55% available, splitting losses between them.

Under this strategy, investors are given two options.

Option A allows users to access 55% of their assets but not withdraw them. In turn, they will be prioritized in the distribution of future recovery funds, if the efforts are successful, ie.

Option B allows users to earn and spend 55% of their money, but it falls behind the priority list in the recovery distribution compared to those who chose the second option.

WazirX has revealed that it plans to launch its operation after allowing users to vote on the polls. Customers have an August 3 deadline to respond.

The exchange drew public opposition from its users and even from rival exchange executives.

CoinDCX CEO Sumit Gupta said: “I hate to say this, but the way @WazirXIndia is handling this whole situation is not community first and this will not bode well for them IMO.”

WazirX CEO Nishal Shetty responded to the criticism of X and explained that the social loss strategy was chosen as the first option because it was the “fastest way to launch the platform”.

The WazirX exploit accounted for most of the hacking losses in July, totaling $266 million.

Philippines SEC smells end of Binance era but Apple is silent.

The Philippine Securities and Exchange Commission hopes that Google and Apple will heed their calls to remove crypto exchange Binance from their local app markets.

SEC Commissioner McGill Bryant Fernandez told Local News in a July 29 report that discussions with Google have been ongoing since they began in April.

“I think they're just asking for some documents, but I don't think a ban is a reservation for them,” Fernandez was quoted as saying. The commissioner did not provide an update on Apple's response.

Magazine confirmed on August 1 that the apps are still accessible in both markets.

In November, the SEC warned the public against investing in or using Binance, stating that the exchange is not licensed to sell “securities” to the public.

In March, the National Telecommunications Commission instructed internet services not to access Binance's website.

Thousands of South Koreans rush to crypto trading competition, says winner 1Bitcoin.

More than 113,000 investors participated in Upbit's first crypto trading competition, winning a top-performing 1,345.39% profit margin, the South Korean exchange announced on July 31.

The tournament lasted for two weeks from July 2 and was divided into two categories. The “whale league” was for big investors with a starting capital of at least 10 million Korean won (about $7,318). Those who did not qualify for the Whale League competed in the “Shrimp League”.

The top whales recorded a profit of 88.24% to earn themselves a reward of 1 BTC. The winner of the Shrimp League who had the highest profit margin in the tournament was awarded 0.15 BTC.

Shrimp averaged an initial capital of 2,979,014 won, while whales averaged 78,590,355 won. Both leagues had about the same win/loss ratio at the end of the tournament, around 63% in green and 37% in red.

The contest provided a demographic sample size of traders in the Korean won, the most traded fiat currency on crypto in the first quarter of 2024.

Investors in their 20s had the highest average profit percentage at 3.94%, although the age bracket accounted for only 10.87% of all participants. Only investors over the age of 60 had a lower participation rate of 5.22 percent.

Investors in their 50s had the second highest average return of 2.37 percent. They ranked third in participation among five age brackets at 18.96 percent.

Meanwhile, investors in their 40s took the largest share of the participant pie, 34.44%, and had the third highest percentage of gains, 1.84%.

Only investors above 80 had a negative performance. They are down 5.73% in the competition.

John Yun

Yohan Yun is a multimedia journalist who has been reporting on blockchain since 2017. He has contributed as an editor to crypto media outlet Forkast and covered Asian technology stories as an assistant reporter for Bloomberg BNA and Forbes. He spends his free time cooking and experimenting with new recipes.