Bitmart’s $150 million theft, the “Metaverse” trend, Hong Kong tycoons build in the sandbox – Cointelegraph Magazine


This weekly news summary from China, Taiwan, and Hong Kong attempts to plan the most important news in the industry, including influential projects, changes in the regulatory environment, and enterprise blockchain integration.

Bad news for Evergrande

Even after all the regulatory crackdowns, China will not let 2021 slip away without causing more blows to the crypto market. On December 9, it was reported that the large real estate developer Evergrande Group defaulted on interest and its credit rating was downgraded.

Subsequently, the crypto market fell sharply, which worried investors who were already complaining about the unemployment rate and new variants of COVID. On the bright side, if Evergrande’s situation gets worse, financial regulators will be overwhelmed, and as the last month and a half of the lunar calendar approaches, they will have less time to focus on eradicating cryptocurrencies.

Bitmart rebounds

Bitmart unfortunately became the victim of a large-scale hacking attack on December 5, when 150 million US dollars were stolen from Ethereum and BSC hot wallets. CEO Sheldon Xia quickly jumped on Twitter and announced that the hot wallet only carries a small part of the assets on Bitmart, and the exchange is conducting a comprehensive security review.

Although many Tier 2 exchanges may be unresponsive, Bitmart’s credit is that it communicates very frequently throughout. The next day, Xia returned to Twitter to announce that other Bitmart assets are safe and the exchange will use its own funds to compensate affected users. For a mature exchange, this loss will not be too serious, especially if the remaining users do not immediately exit all.

After the news came out, the Chinese community immediately showed resilience. It is not so much pain as it is the support of many voices, including competing exchanges such as MEXC, KuCoin and Coinex. Most of them have left encouraging comments on Twitter, and also stated that they will work with Bitmart to identify funds from stolen accounts and blacklist them. Famous investors Fenbushi Capital also expressed their support, and auditors Certik, Peckshield and Hacken also expressed their support.

Trends on social media

Sequoia Capital is one of the world’s largest venture capital companies, with more than US$5 billion in asset management. On December 8th, it changed its Twitter profile to a native encrypted language.

“Mainnet faucet. We helped the bold buidl legendary DAO from idea to token airdrop. Landfill.”

Soon after, a screenshot of the head of Sequoia Capital China appeared, saying that the company was fully committed to cryptocurrency. Feng Bo, managing partner of Dragonfly Capital, praised the move and pointed out its incremental approach.

Although companies like Sequoia are actually unlikely to go all out, it is no secret that many large venture capital firms have recently achieved great success through crypto-related investments. Perhaps the bigger problem is which user leaked a screenshot of this seemingly private large Chinese whale group chat.

Although very interesting, Sequoia changed back to Twitter the next day.

Also very popular on Chinese encrypted social media is the eloquent Brian Brooks from BitFury. His panel fragments at the U.S. Congress hearing on digital assets have attracted widespread attention, especially when he explained the differences between Web 1.0, 2.0, and 3.0. When dealing with mediocre politicians, the Chinese community seems to appreciate his demeanor and concise character.

For a bit of light-hearted humor, a picture of Zhao Changpeng’s famous tweet “If you can’t persist, you won’t be rich” posted on the back seat of the Meituan takeaway car is circulating. Meituan food delivery is generally considered a low-paying form of employment. When the industry suffers, members of the crypto community may be forced to return, similar to McDonald’s in the West. It also made fun of the famous orange vehicle driven by early Bitcoin whales in China, with the same message on the side door.

A picture of a famous CZ tweet posted on the food delivery truck shows the current market situation

Crazy for Metaverse

Projects and events related to Metaverse have appeared all over China. However, it is not clear whether these are really focused on building Metaverse, or just a sneaky way for crypto projects to disguise themselves as something else to avoid the wrath of regulators.

The People’s Bank of China has captured this trend and is now monitoring the Metaverse and NFT fields. The central bank’s guidance or policy may be similar to the existing digital currency policy, which means that strict regulations have little room for interpretation.

The Director of the Anti-Money Laundering Department of the People’s Bank of China speaks at the Financial Security Summit Mention Metaverse and NFT discuss the need to strengthen digital transaction monitoring. He also pointed out the need for a regulatory sandbox, which is a popular idea, but it is unlikely to provide a lot of flexibility for a truly decentralized product.

These rumors did not prevent People’s Daily from joining the “Yuan Festival” A list One of the top ten hot words of 2021 on December 8. Most other words are related to social issues, such as overworked students or young people who don’t want to try to compete and succeed. Metaverse stands out among many words and is one of the only words related to technology and innovation.

On Hong Kong Island, Zheng Zhigang, CEO of Hong Kong real estate giant New World Development, announced that he would dive into The Sandbox’s premium real estate. Zheng announced that he would use 10 different companies to develop virtual land and establish an innovation center to showcase the development of Hong Kong, Macau and various nearby Chinese urban areas.


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