Hillstone Finance Weekly Update (Jan 16~20)

Hillstone Finance
3 min readJan 20, 2023

Welcome to the weekly update from Hillstone Finance. We have brought two news for this week:
1. Rayol Hwang participated in the NBN news
2. Duk-hyun Hong participated in the NBN news

NBN News (Jan 16, 2023)

Q. Why should we focus on Dubai and learn about cryptocurrency issues?

A. Currently, Dubai can purchase real estate and cars through cryptocurrency. Dubai has a well-established infrastructure that allows you to live your life with a single cryptocurrency wallet without exchanging money.

Recently, many U.S. blockchain companies are moving to Dubai. Korean blockchain companies should also move to Dubai. Since there are still many restrictions in Korea, Dubai, which is legally free, is the land of opportunity for companies that want to proceed with crypto funds or blockchain funds.

Q. Establishment of Dubai Virtual Asset Regulatory Agency, what kind of organization is it?

A. Companies operating in Dubai must follow the rules of the regulatory agency. In the licensing section related to virtual assets, the legal parts and procedures were clarified by dividing them into five categories.

Each item was established based on business feasibility.

1. Propritary Trading inCrypto commodities

- No exchanges, brokerage services, financial services, banking services, payments or asset storage activities

2. Distributed Ledger Technology Service

- Transactions of cryptographic products, brokerage services, exchanges, financial services, and payment services are not available.

3. NFTs E Marketplace Provider

- Tokens cannot be issued, cryptocurrency products cannot be traded.

4. Metaverse Service Provider

- Tokens cannot be issued, cryptocurrency products cannot be traded.

5. Propritary Crypto Mining

- Exchanges, brokerage, finance, banking, and payment services are not available, and only DMCC free zones can be acquired.

Hillstone also completed the establishment of a corporation in Dubai with these standards. We can help a lot of companies who want to move to Dubai.

Q. Bitcoin’s rise based on onchain data ···· Can I be confident?

A. Bad news has already exploded last year, and now it is a good situation just to maintain it.

After price stabilization, it is meaningful to predict the future through the movement of miners and whales through on-chain data, but if it is not stable as it is now, it is also realistic to maintain and hold long positions.

Therefore, it can be summarized that there is a lack of data that can predict the rise immediately.

Q. New Coin Entry vs. Portfolio Maintenance··· Smart Investment Method?

A. If you judge it as the easiest and most stable, I don’t think it’s bad to go to $21,000 with the intention of enduring a year for the timing of the purchase.

If you have enough cash, I think it is a section that has the advantage of accumulating Bitcoin rather than forcibly approaching Altcoin.

$16,000 to $21,000 range seems best to have a decent long-term investment position.

NBN News (Jan 20, 2023)

Q. Currently, Binance says institutional investors use Binance Custody, which means that they keep assets in cold wallets rather than hot wallets, and open leverage positions on the exchange, what do you think about this?

A. It is positive for Binance and institutional investors, but negative for on-chain data analysts. If positions are newly opened and started to be used as collateral, the reliability of on-chain data may decrease. In many cases, forces or institutions take advantage of information asymmetry to gain their own interests.

There must be a clear reason why institutions are trying to hide on-chain data, and on-chain data, which can predict the movements of forces, is the biggest weapon that ordinary investors can have.

Q. What do you think about the recent rise in cryptocurrency?

A. Currently, a continuous upward trend is taking place at a time when unfavorable factors have decreased. But with the current U.S. debt ceiling approaching, we don’t know what will happen. Therefore, the U.S. should carefully invest while reading the direction of its response to the debt limit and the consequences.