Hillstone Finance Weekly Update (Feb 20~ 24)

Hillstone Finance
7 min readFeb 24, 2023

Welcome to the weekly update from Hillstone Finance. We have brought three news for this week:
1. Rayol Hwang participated in the NBN news
2. Hillstone participated in World Blockchain Summit Marvels Seoul 2023
3. Duk-hyun Hong participated in the NBN news

NBN News (Feb 20, 2023)

Q. Bitcoin, up 11% from the previous week…What is the background of the recent price increase?

A. It began to rise sharply in January, but it was expected to cause a recession or shock, but it did not come, and Europe and the United States were unexpectedly strong, which led to the January rise.

It can also be seen as an upward trend at a time when purchases continue to be made due to these issues, and in the overall flow, it is expected to be determined by how short the horizontal section at 23k to 24k is cut and goes up.

Q. Where should I pay attention to the future rise in bitcoin prices?

A. For now, the market itself is enduring the 24k range, but it is seeing an increase of up to 35k, but it is unlikely to rise steadily. Therefore, it is recommended to buy again in the 21k section.

In the long-term investment that drew a big picture, it was mentioned from the 16k range that it was not a bad timing, but in conclusion, the current 24k range is also not a bad timing for the purchase.

Q. Storage-related coin upturn, can I invest now?

A. As mentioned last time, circular pumping seems to be occurring by category, which seems to have continued to Old Coins.

The cause of Altcoin’s movement is mainly following Bitcoin’s market price rather than its own service and outlook.

Therefore, there are about one or two opportunities left for NFT and P2E related parts or old coins in China to go back, and it would be good to realize profits in the long run according to the horizon of Bitcoin.

However, it is expected that it will be necessary to quickly cut off or make a profit after being aware of the fact that it is an overpay investment to some extent.

Q. Is Binance considering delisting U.S.-based cryptocurrencies?

A. First of all, referring to WeMade, a domestic news, it continues to show unexpected movements, including withdrawal of litigation, as it was suddenly listed on Coinone.

Currently, the SEC is strongly attacking Binance to check the transfer of domestic funds abroad, and these issues are also issues that occur every few years like a cycle.

From a macro perspective, issues related to the exchange, such as FTX issues, may be linked to the rise of Bitcoin and encounter bad picture news.

So far, it is also a check issue on the rise of Bitcoin, and if there is a big issue, I will mention it right away, but so far, there is no significant concern.

Q. Possibility of fluctuation again after PCE indicators…What is the Bitcoin price forecast?

A. In fact, the current section is holding from a long-term investment perspective rather than a purchase, but it would also be good for those who bought from the bottom line to sort out to some extent and seek a re-entry plan.

Q. What are the main schedules and response strategies to pay attention to this week?

A. As the circulation of altcoins continues to rise this year with the rise of Bitcoin, it will be helpful for long-term investors to grasp and organize it while preparing for the cycle of return without obsessing over what they miss now.

Participated in World Blockchain Summit Marvels Seoul 2023 (Feb 23, 2023)

The World Blockchain Marbles Summit Korea 2023 was held at the Grand Intercontinental in celebration of its 20th anniversary.

As a partner, Hillstone Partners participated in this event. Representative Ra-yol Hwang gave the keynote speech and participated in a panel discussion during Session 1.

During the event, Representative Ra-yol Hwang stated that “wealth is being moved. Digital assets are going through a process of collapsing the boundary between online and offline in the first stage, collapsing the boundaries between nations in the second stage, and collapsing the boundary between reality and virtual reality in the third stage. Hillstone Partners established the Hillstone Finance Foundation and issued HSF Coins, and is making efforts to combine physical assets and virtual assets as a bridge between traditional finance and digital finance, and investing in various virtual assets.”

Later in the award ceremony, Representative Ra-yol Hwang received the award for the Convergence Management category and received applause from many attendees.

NBN News (Feb 24, 2023)

Q. Competition for NFT marketplaces is intensifying. What is the solution?

A. NFT marketplaces, including Opensea and Blur, need to make efforts to modify creator loyalty models or adjust fees in a competitive environment.

Through this, it is necessary to provide a variety of options and present a flexible business model that meets the needs of users.

Since the complete disappearance of royalties can negatively affect creators and the NFT industry as a whole, a system is needed to ensure that royalties are properly charged so that creators can receive fair compensation for their work.

This competition provides better choices and benefits for users and motivates marketplaces to continue to improve and develop technology and business models.

Q. NFT projects are on the rise. It seems that the preoccupation of the NFT market is fierce.

A. Recently, large companies’ interest in the NFT market has been increasing, and Yves Saint Laurent, Absolute Malibu, Hyundai Card, and Lotte Information and Communication are announcing NFT-related trademark applications and business plans.

This is analyzed that large companies are interested in the NFT field as the risk of Defi increases, and NFT is a rising trend because it is easy to create a community and can realize profits.

However, in situations where regulations are not clear, caution is needed in investment, and it is speculated that it is okay to find profits while trekking the NFT of large companies.

Q. The P2E market is very positive. What is the reason?

A. YGG has created a $75 million venture fund to double its Web 3.0 games, and is raising its first fund for this.

The investment will be used to invest in Web 3.0 and game studios and infrastructure, and although the area of work does not overlap with existing YGG, it plans to additionally support game companies while maintaining cooperation and partnership.

Q. Hong Kong is planning to lift the ban on retail cryptocurrency transactions. Why is that?

A. There is a possibility that the ban on retail cryptocurrency transactions will be lifted in Hong Kong, which could have a positive impact on the cryptocurrency market if large market capitalization coin transactions become possible.

Regulators are considering what derivatives to allow for cryptocurrency exchanges, seeking ways to provide more liquidity and diversity to the cryptocurrency market.

However, we should still be careful about changes in regulations and institutions, and we should actively respond to changes.

Although the development of the cryptocurrency market is uncertain, there are currently several factors that can have a positive impact.

Q. The STO guidelines have been announced. How is the domestic movement?

A. STO and ICO have emerged as one of the new funding methods, but as ICOs are carried out in a form that is easily accessible to the general public, many cases of fraudulent ICOs have occurred and have been regulated.

On the other hand, STO combines the existing securities issuance method with blockchain technology and is made in compliance with securities regulations, thereby ensuring investor protection and market stability.

STO is recognized as a legal financing method in Korea, and as the scope of STO has recently expanded in the Supreme Court, it is recognized as a safer financing method.

STO issuers must comply with regulations and precedents, and the financial authorities of the Republic of Korea are responding with a policy of regulating STO.

Q. The ICO was treated differently by the STO. What are the details?

A. Unlike ICOs, STO is one of the legally recognized financing methods in Korea, and has stricter conditions than ICOs in terms of regulation.

Account management institutions, which are issuing institutions that can conduct STOs, and over-the-counter transaction brokers, which can distribute STOs, are divided, and several companies, including NH Investment & Securities, are pushing for STO.

However, there is a concern that STO will be monopolized, so improvement is needed.

In the current regulatory sandbox, if a specific company preoccupies the market, businesses with similar competitive items may not pass through the regulatory sandbox, which may lead to a situation in which various opportunities may be missed.

This part is thought to be a direction to be improved.

That is all for this weekly update.

Thank you.

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