Hillstone Finance Weekly Update (Mar 6 ~ 10)

Hillstone Finance
7 min readMar 10, 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 (Mar 6, 2023)

Q. What’s the situation with Altcoin?

A. The IMF’s forecast for Korea’s economic growth in 2023 is upward, which is holding China’s reopening.

However, it can be seen as a double-edged sword because it means that if there is no positive effect or achievement, it can return to the economic downturn.

Changes in China’s real estate policy are expected to have the biggest impact on the global market.

If real estate rebounds, there will be an overall rise, but if real estate prices in China fall, Chinese consumption will also fall, so they are more expecting consumption in China’s cryptocurrency market than in production markets such as consumer goods and logistics.

If China’s real estate and consumer markets hold out well, it is expected that the overall stock market will rise as well as the cryptocurrency market will rise.

Q. Is there any good news that will make a strong rise in the coin market?

A. March indicators showed that the global recession will be somewhat prevented from a macro perspective, and the economic downturn we expected will not come.

As a result, it was judged that there was a possibility of an issue for an increase, but no significant increase or decline has yet been made.

If there was a very large drop, the coin market would have been shaken, but it is not expected to fall significantly because the rise and fall are small.

The assumption that there is no issue of economic recession is expected to rise upward.

However, among the various factors, many psychological conditions, such as issues from China and online data, have tilted toward buying rather than selling, so I think it has affected the rise to some extent.

Q. What is the overall market situation ahead of the Shanghai update?

A. As can be seen in two to three cycles, most circulation pumping was caused by the rise of Bitcoin.

So far, altcoins are still tied to Bitcoin.

However, there are individual rising issues, which have risen sharply in the case of DEX, tied to NFT.

Looking at individual issues, it would be better to pay attention to NFT-related issues that are gradually moving by large companies.

Q. How will the Bitcoin NFT issue affect the market?

A. NFT is an asset type, and people are beginning to realize that there are not many parts of transactions as the issue of art and other storage has emerged.

Therefore, polygons, a network that can actively move NFT, have been activated, and the stability related to Bitcoin has changed to some good flow.

Since it is a new NFT, it is expected to move toward a more suitable network.

Q. What is the atmosphere of the industry following the implementation of the STO bill?

A. STO is currently the hottest issue.

In fact, the guidelines from finance are not clear yet.

It can be said that while creating its own Korean rules, token securities and STOs have been changed into narrow and limited opportunities with strict laws.

However, on the contrary, I think it is a good opportunity to use or utilize it to try new things.

However, if these parts are simply viewed in the domestic market, they will be negative, but if they are viewed in a global way, it will be a good opportunity.

NBN News (Mar 10, 2023)

Q. What’s the overall market for cryptocurrency today?

A. The stock market suffered from Fed Chair Powell’s remarks about a possible rate hike, and the cryptocurrency market performed well.

Interest rates are likely to rise or at least remain stable in the near future.

Conservative investors are taking a wait-and-see approach to how the market will fit Powell’s remarks.

Despite the possibility of a rate hike, the cryptocurrency market continues to be strong without responding to short-term cuts.

Q. What is the meaning of the research result of “Leading the Asian Game Market, Korea, China, and Japan”?

A. The Asian game market, including China, Japan, and Korea, is a large and active market with 62 Korean, Chinese and Japanese game companies among the top 100 game companies in market capitalization.

Blockchain games utilize decentralization technology to allow owners to own and trade game items directly, providing autonomous and transparent game operation.

In order to convert the game market into a blockchain, advertising and transaction fees must be activated, and royalties for game items such as NFT must be maintained.

If these factors are satisfied, there is a possibility that blockchain games will be more active.

Q. What are the advantages of revitalizing the blockchain game market?

A. The game industry’s blockchain technology enables autonomous and transparent game operation and enables direct ownership and trading of game items through NFT.

These innovations provide benefits such as high security, improved transaction processing speed, and scalability.

Successful blockchain games can generate new revenue models through royalty income of valuable items traded in the game, which can lead to positive changes in the profit structure of the game industry.

Q. What do you think about the suspension and liquidation declaration of “Silvergate”?

A. Silvergate Bank’s announcement of suspension and liquidation is expected to have a significant impact on the cryptocurrency market following similar events with FTX and Genesis.

As a result, concerns have been raised about the possibility that cryptocurrency spot ETFs will also be affected.

Q. Silvergate liquidated. Is it the aftermath of the FTX?

A. Following similar incidents with FTX and Genesis, Silvergate Bank’s announcement of suspension and liquidation has caused regulatory shocks.

There are concerns that stronger regulations such as safeguards guidelines are needed to reduce risks related to the connection between cryptocurrency and banks.

Some U.S. Democrats stress the need for a strong regulatory response to mitigate these risks.

Q. DVT technology, Can it acting as a distributed virtual machine?

A. Distributed Virtual Machine (DVT) is a technology used to execute smart contracts on a blockchain.

Unlike conventional POS methods, DVT has increased the stability and speed of block creation by running smart contracts in distributed virtual machines.

DVT technology is highly secure and can execute a variety of previously impossible smart contracts.

However, it is also an experimental technology that requires adoption by large node vendors to enhance safety and functionality.

Q. The Obol protocol is collecting Ethereum verifiers.

A. The Obol protocol recognizes the importance of DVT technology and collects Ethereum validators for distributed validator systems that will be open to everyone after six months of testing.

The importance of DVT technology in decentralization and enhanced security has been felt by many cryptocurrency projects and large node companies since the transition to POS.

DVT technology is expected to play an important role in matching the interests of individuals and groups in distributed systems.

Q. After the bankruptcy of the FTX exchange, a lot of flow has shifted to DEX…What’s the flow?

A. Many transactions are moving to DEX decentralized exchanges, but UI/UX is still inconvenient compared to centralized exchanges, so there are fewer users.

Nevertheless, Coinbase has doubled Uniswap’s trading volume and returned to the lead over the past year.

The total DEX trading volume exceeded 1 trillion won in May 2021, but it may be difficult to pass it this month.

Until DEX with the same convenience as the centralized exchange is created, the centralized exchange is expected to continue to be used as an essential element in the trading field.

However, DEX has many advantages and is expected to grow, which can benefit investors investing in emerging DEX exchanges or exchange behavior, similar to early Uniswap.

Q. Forbes report on the transfer of $18 Binance USDC collateral, refutation from Binance…What are the consequences?

A. Forbes claimed that Binance transferred $1.8 billion in customer collateral without proper approval.

Binance CSO defended the company’s actions, saying that using multiple wallets is not a problem.

However, if it is found that customer collateral assets have been used for profit, Binance risks being attacked by the SEC.

Binance also faced earlier criticism, including the SEC’s claim that BUSD is a securities and acknowledging that there have been cases in which BUSD 1:1 peg assets have not been maintained.

As a result, Binance is vulnerable to SEC attacks and concerns about a lack of transparency with customers exchanging stable coins.

Despite these problems, the cryptocurrency market is maturing and is expected to have a positive impact in the long run.

That is all for this weekly update.

Thank you.

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