Hillstone Finance Weekly Update (Mar 13~ 17)

Hillstone Finance
8 min readMar 17, 2023

Welcome to the weekly update from Hillstone Finance. We have brought two news for this week:

  1. DMCC Made for Trade Live held with Hillstone
  2. Rayol Hwang participated in the NBN news
  3. Duk-hyun Hong participated in the NBN news

DMCC Made for Trade Live held(Mar 14, Mar 16)

Ahmed Sultan Bin Suleyam, chairman of the DMCC, called Crypto’s Mecca, visited Korea. It is known that he visited Korea to encourage DMCC to enter domestic companies, and a DMCC Made for Trade Live event was held for him.

The DMCC is a 100% government-owned free trade zone located in Dubai, offering various benefits and infrastructure, including corporate tax exemptions, to companies in the center, including business infrastructure that is efficient at market access and cost. Currently, there are about 22,000 companies, and in 2021, Binance, the world’s largest cryptocurrency exchange, also established a holding company in DMCC.

The event was held twice on March 14 and 16. The event was held with the support of Hillstone Partners and the Korea Blockchain Industry Promotion Association, and was held at Pangyo Techno Valley in Seongnam, Gyeonggi-do on the 14th and at the Federation of Korean Industries Plaza in Yeouido, Seoul on the 16th.

Seongnam Mayor Shin Sang-jin attended the event held at Pangyo Techno Valley on the 14th to establish a network of relations between DMCC and companies in Gyeonggi Province and promise continuous exchanges. Later, at the Yeouido event on the 16th, Kim Hyung-joo, president of the Blockchain Industry Promotion Association, and Yang Hyang-ja, a lawmaker, attended and signed an MOU with DMCC to establish a cooperative relationship. Representative Hwang Ra-yol participated in the panel discussion of the two events and conducted the discussion.

A total of 500 officials from various blockchain-related companies and institutions participated in this event. It is expected to have been a great help to domestic companies and institutions to enter the DMCC. In particular, after the event, the DMCC will set up a Korean representative to help Korean companies enter Dubai. To this end, Hillstone Partners was introduced as a Korean partner during the event. Hwang Ra-yol, CEO of Hillstone Partners, said local companies will act as bridgeheads to make inroads into Dubai without difficulty.

NBN News(Mar 13)

Q1. What is the current bitcoin market situation?

A1. Currently, the price of Bitcoin has almost returned to its original point, and it can be seen that it has been affected by the SVB crisis.

However, it is judged that it may be a direction that can see a positive direction.

Q2. What is the current situation of SVB?

A2. As existing interest rates were raised, deposits began to be withdrawn, and the withdrawal had a structure in which the bank had to be sold at a loss.

Recently, through the Silver Gate incident, anxiety has been amplified and it has become unaffordable like a bank run, leading to bankruptcy.

On the cryptocurrency side, it can be that there is a picture that can act as a more favorable factor.

Q3. Why Bitcoin Rises Despite SVB Crisis?

A3. The Fed’s rate hike has caused a lot of damage so far, with several non-tech companies making strides.

Many said that it would be difficult to raise interest rates through the stance of a rebound against the economic downturn mentioned in various indicators.

Therefore, it can become a positive factor for the cryptocurrency market.

Q4. USDC Defeging Deepens Due to SVB Crisis…Will it be okay like this?

A4. In the case of Terra Luna, a stable coin project that was a major evil in the cryptocurrency camp in the past, there was a big collapse in which the prices of other coins also fell.

However, in the case of USDC, since the real asset, the dollar, is pegged, the broken 0.8 pegging could be an opportunity for the management to reverse 25% profits by maintaining a 20% drop from the dollar.

The recovery process is shown in real time, and if you check into the algorithm, it is also more stable than the existing collapsed projects.

Q5. Paycoin, which penetrates overseas, enters the Japanese market

A5. First of all, it is very difficult to solve compliant or registration, so it is not possible to solve the deposit withdrawal-related part in Korea.

Rather than trying to penetrate this, it is the right direction to look abroad.

As we always say, coin and blockchain already have no borders.

Paycoin also has a solid infrastructure like WeMade on the game side, so it is considered the right way to proceed overseas.

We see this as the right direction.

Q6. Like Lion, last year’s operating profit was 15 billion…”The best performance ever”.

A6. They can be seen as close to NFT Metacongz, but they were not actually closely related.

In the case of CEO Lee Doo-hee, there was also a picture leading Metacongz, so this part was discordant.

Looking at the results of the trial not long ago, they were resolved neatly, and they were continuing to build their performance as original educational companies.

If you look at the demand or needs of the NFT market, it still exists very large and is also conducting NFT education and content business based on this.

Therefore, it can be seen as a signal for an increase in the overall NFT market.

Q7. Neopin Launches New CEDeFi…What does it mean?

A7. The atmosphere for the industry to re-energize has been re-established, but players have moved away from the traditional direction.

Companies with larger infrastructure and a solid business structure are expected to actually revitalize and take action in the blockchain industry.

Q8. Will the Korean company entering Dubai proceed smoothly?

A8. With the recent relocation of headquarters to Dubai Crypto Center by Binance, Crypto Dotcom, OKEx, and L-Bank, the flow of exchanges and blockchain projects is heading to Dubai because most blockchain networks have been opened to Dubai Crypto Center.

Domestic projects are also very positive that an environment is being created to turn their attention to overseas projects rather than simply obsessed with upbit and Bithumb listing.

NBN News(Mar 17)

Q1. Bitcoin 24K…What is the main cause of this?

A1. The recent rise in bitcoin prices was driven by positive news, but uncertainties still exist in the mid- to long-term.

Factors such as the U.S. consumer price index, interest rate determination, and inflation problems can affect the market.

It is important to monitor these variables and market conditions.

Q2. US bank intervention and inflation issues…What’s your personal opinion?

A2. The intervention of U.S. banks to stabilize the market is welcome, but the long-term impact of current inflationary measures must be taken into account.

There are concerns that the market could experience a big bear market again when inflation needs to be controlled.

It is important to have an investment strategy that considers these factors.

Q3. Euler Finance flash loans, massive hacking attacks?

A3. Euler Finance platform was hacked by $197 million, and $136 million worth of stETH and $34 million worth of USDC were stolen during the flash loan process.

There are many emerging protocols in the DeFi market with various risks, and users should be aware of these risks if full security is not provided.

Early investors unfamiliar with this should avoid using emerging protocols and stick to safe and proven basic DeFi.

Q4. What are the actions that DiFi users take to protect their assets from hacking attacks?

A4. Investors considering investing in DeFi and protocols should identify protocols with proven safety, understand and diversify risks, take sufficient security measures to protect privacy and assets, and investigate them before investing in new protocols.

By following these steps, the loss caused by hacking can be minimized.

On-chain data analysis is also important for effective risk management of DeFi or new protocols.

Q5. Is on-chain data important as a way to distinguish the new Defina protocol?

A5. On-chain data analytics can provide insight into DeFi or protocol liquidity and security and help make investment decisions.

Short position and long position analysis through checking the liquidity of the Dax Exchange and token contract can be performed using on-chain data.

Initial Coin Offering (ICO) and pre-sale are often used to make profitable investments in tokens listed on Dax Exchange before being listed on the central exchange.

On-chain data analysis is also useful for filtering out potential fraud.

Q6. Cryptocurrency capital outflow?

A6. According to the CoinShare Cryptocurrency Fund Report, cryptocurrency has leaked significantly this week, mainly Bitcoin.

In the U.S., $10 million flowed in, and in Canada, it recorded 20 outflows.

The report shows that investors are cautious about Bitcoin, but still remain interested in other cryptocurrencies, and that the total assets under management have returned to early 2023 levels.

Recently, the market has become unstable due to the USDC Defegging and Silvergate crisis, causing investor judgments and outflow and inflow of cryptocurrency funds.

Considering the recent rise in the prices of Bitcoin and Altcoin, a large inflow of funds is expected next week.

Q7. Recently, the New York Minister of Justice sued Kucoin…Background of the incident and what is the problem?

A7. Cryptocurrency trading platform Kucoin has been sued by the New York Minister of Justice for operating as an unregistered securities and asset trading platform in the United States.

The lawsuit has been criticized by some for treating Ethereum transactions as securities transactions.

If it turns out to be true, Cucoin and related exchanges will be held legally responsible.

This incident could lead to stricter regulations on tokens in Layer 1, 2 and Dapp fields.

Investors and holders must be aware of the changing regulatory environment when making investment decisions.

That is all for this weekly update.

Thank you.

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