Web3🌕Monday Updates: Metaplanet Boosts Bitcoin, China's $295M Crypto Bust, Bitcoin Asia Draws Interest, Degen Chain Downtime

Welcome to a new week in the world of Web3! Today, we embark on a journey through the latest highlights shaping the landscape of decentralized technologies and cryptocurrencies. From significant moves in Japan's financial realm to regulatory crackdowns in China and the vibrant scene at Bitcoin Asia in Hong Kong, there's much to explore. Additionally, we'll delve into the technical hiccup encountered by Layer 3 Degen Chain, shedding light on its implications. Join us as we unravel the latest developments driving innovation, adoption, and regulation in the ever-evolving realm of Web3.

1. Metaplanet Adopts Bitcoin Amid Japan’s Debt Crisis

Metaplanet responds to Japan's economic challenges by adopting Bitcoin as a strategic reserve asset. With Japan's debt-to-GDP ratio exceeding 254%, the move aims to hedge against yen volatility resulting from high government debt and negative real interest rates. Tokyo-listed Metaplanet acquires 117.7 BTC ($7.19 million), following MicroStrategy's strategy, focusing on Bitcoin and commercial real estate. This shift reflects Bitcoin's potential as a hedge against fiscal and monetary imprudence, particularly amidst Japan's fiscal crisis. Metaplanet plans to hold Bitcoin long-term, minimizing taxable gains, and intends to acquire more by issuing long-dated yen liabilities opportunistically.

Metaplanet Makes Bitcoin a Reserve Asset As Japan’s Debt Mountain Grows

The announcement comes as the yen, one of the top five global reserve currencies, bears the brunt of Japan’s fiscal imprudence.

CoinDeskOmkar Godbole

2. China Cracks Down on $295M Crypto-Linked Underground Bank

Chinese authorities cracked down on an underground bank exploiting cryptocurrency for illegal currency exchanges worth $295.8 million. In Jilin province, six suspects were arrested for facilitating unauthorized transactions between the yuan and the South Korean won. Leveraging crypto's anonymity, they conducted over-the-counter exchanges, aiding clients like South Korean agents and e-commerce firms. China's strict capital controls have pushed some to turn to cryptocurrencies, despite regulatory efforts. The case underscores the ongoing challenge of regulating digital finance amid evolving tactics by illicit actors.

China busts $295 million underground bank that used crypto to convert foreign currencies

Police arrested six suspects allegedly using cryptocurrency to conduct illegal exchange operations between Chinese yuan and South Korean won.

The Block[email protected]

3. Bitcoin Asia in Hong Kong Draws Mainland Interest Amid Crypto Ban

Bitcoin Asia conference in Hong Kong attracted a diverse crowd, highlighting growing interest from mainland China. Attendees see Hong Kong's supportive policies and ETF launches as steps towards embracing cryptocurrencies. Despite challenges, industry players are optimistic, eyeing China as a potential market. The event showcased innovations in layer 2 solutions, emphasizing scalability for Bitcoin's wider adoption. While opportunities abound, caution remains amidst the evolving landscape, akin to previous cycles of excitement in the crypto space.

At Bitcoin Asia, crypto enthusiasts look to tap mainland market

A mix of mainlanders and international visitors showed up at Bitcoin Asia amid surging interest owing to a crypto bull market and recently launched ETFs.

South China Morning PostXinmei Shen

4. Degen Chain Halts Block Production for 11 Hours

Degen Chain, a Layer 3 Ethereum-based blockchain for the Degen meme token, experiences operational downtime, ceasing block production and service functionality for over 11 hours. The outage impacts decentralized applications and bridges, rendering them inoperative. The team collaborates with Conduit to resolve the issue. Despite the disruption, the native gas token, Degen, remains unaffected on Base, continuing transactions.

Layer 3 Degen Chain hasn’t produced a block in 11 hours

Layer 3 Degen Chain is experiencing operational downtime and the network has not produced a block for over 11 hours.

The Block[email protected]

As we conclude our exploration of today's Web3 highlights, it's evident that the landscape continues to evolve dynamically, presenting both opportunities and challenges. Stay tuned for more updates and insights as we continue to navigate the exciting journey of Web3. Remember to subscribe for future updates and join us on this transformative journey into the decentralized future.

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