Hillstone Finance Weekly Update (Jan 25~27)

Hillstone Finance
3 min readJan 27, 2023

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

NBN News (Jan 27, 2023)

Q. Domestic cryptocurrency exchanges are trying to ease investors’ information asymmetry by strengthening research work. What do you think?

A. Until now, we had no choice but to do analysis based on information from foreign media. If we can get accurate information faster through research of domestic exchanges, it will be very helpful for domestic investors to invest.

Q. The Financial Supervisory Service said, “The most asset risk, now we will play a role,” how will it affect the cryptocurrency market?

A. Currently, the Financial Supervisory Service has established an obligation to disclose the accounting notes related to possession when issuing cryptocurrency. In addition, we have developed a virtual asset risk prevention monitoring tool. It seems that a lot of efforts are being made to regulate cryptocurrency and protect investors in Korea. Through these actions, we can see that it is proceeding in the direction of recognizing cryptocurrency, not rejecting cryptocurrency. I think it will have a positive effect on the development of blockchain in Korea.

Q. I heard that there are guidelines related to STO, a securities token, recently, so can I get more information?

A. A securities token refers to a system that raises necessary funds by issuing tokens linked to real assets owned by a company or individual. Investor protection regulations under the Capital Markets Act are applied, and intrinsic value linked to real assets is secured to reduce investor damage caused by value fluctuations. It is expected to announce the confirmation of the guidelines by the end of February, identify problems through sandboxes, and open an over-the-counter exchange for ST transactions.

Q. I heard that the blockchain industry’s interests are changing these days. What is it?

A. Blockchain industry’s interest is shifting to practical business-enabled models. Therefore, I think it is good to increase interest in cryptocurrency projects that are applied to real business and are generating real demand.

Q. Genesis Capital eventually filed for bankruptcy protection. How will it affect the cryptocurrency market?

A. Genesis Capital’s bankruptcy is almost confirmed. Digital Current Group says Genesis Capital is a separate company and is unlikely to provide support. If the digital currency group falters, it could bring major negative factors to the market. But now only Genesis Capital is likely to collapse, and the bankruptcy of Genesis Capital seems to have already been reflected in the market.

Q. Can you explain the Ethereum Shanghai upgrade?

A. Staking withdrawal will be activated in March with the Ethereum Shanghai upgrade, and public test net will be executed before the end of February. However, since it takes more than six months for all of the stocking withdrawals to proceed after the upgrade, it can be dangerous to proceed with the investment based on the judgment that the price will drop sharply.

That is all for this weekly update.

Thank you.

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