Blockchain
Saudi Arabia Explores Web3 and Blockchain Gaming to Fuel Economic Diversification
In a determined effort to reduce its reliance on oil and diversify its economy, Saudi Arabia has taken significant strides into the world of emerging technologies like blockchain and artificial intelligence (AI). Additionally, the kingdom has ventured into the thriving gaming industry as part of its ambitious Vision 2030 plan. While Saudi Arabia has yet to make a substantial global impact in game and AI development, experts in the Web3 sphere believe that the nation’s investments in gaming could have far-reaching implications.
Yat Siu, co-founder of Animoca Brands, revealed that Saudi Arabia is showing a keen interest in Web3 technology. He emphasized the kingdom’s efforts to explore the next generation of the internet, with a particular focus on Web3 gaming and blockchain-based ownership of in-game assets. Siu stated, “I think Saudi Arabia understands the principle that Web3 gaming or blockchain gaming—the one that we actually prove the owner assets—is going to be the future of gaming.”
Saudi Arabia, along with the United Arab Emirates, is driving the growth of the Middle East’s gaming market, thanks to its young and tech-savvy population. According to a report by Boston Consulting Group, the kingdom accounts for 45% of the gaming sector in the region, with a value exceeding $1.8 billion. Additionally, Saudi Arabia boasts one of the highest game revenues in the Middle East.
The Saudi Esports Federation, established in 2017, reflects the kingdom’s commitment to regulating and developing its gaming industry. In April, Bloomberg reported that Saudi Arabia, through its Public Investment Fund, invested a substantial $38 billion in the sector, aiming to establish itself as a global gaming hub.
While the Saudi government comprehends the high-level concept of Web3, its potential, and its alignment with esports, Siu noted that uncertainties remain regarding how it will integrate these technologies into gaming due to the absence of clear regulations concerning cryptocurrencies and virtual assets. Siu mentioned, “Cryptocurrency is something that is still to be explored. It’s being investigated. I think [Saudi Arabia is] quite forward about how to deal with it. But they haven’t come up with anything yet.”
In contrast, regions like Hong Kong, Japan, and the UAE have more clarity regarding the use of crypto and Web3, allowing them to formulate comprehensive strategies.
While the exact nature of Saudi Arabia’s Web3 gaming applications remains uncertain, the kingdom is actively engaging with experts and exploring opportunities in various markets. Animoca’s Yat Siu mentioned, “That’s why they’re talking to us. Because they want to know what the best practices are and how they can learn. There are very few places in the world that we’ve seen such a hunger and desire to sort of be at the cutting edge.”
John Linden, CEO of Mythical Games, observed that Web3 adoption in the gaming sector is underway, albeit at a gradual pace. He emphasized that the focus should be on enhancing the user experience rather than solely providing income-generating capabilities.
Linden pointed out, “Web3 gaming developers have to focus on new game models. When you start doing that, it introduces the creator economy, digital supply chain, ownership of guilds, and the ability to come up with your own theory within the game itself.”
Linden predicts that the Web3 gaming segment could attract 50 to 100 million players within the next two years, with their own titles targeting 10 million players by the end of 2023. This shift represents a significant evolution in the gaming industry and holds the potential to reshape the way gamers interact with virtual assets and in-game economies.
Blockchain
US GAO Issues Key Recommendations to SEC Prior to Historic Spot Bitcoin ETF Approval
Blockchain
Bitcoin ETFs Witness Surge in Trading Activity as SEC Approves 11 Products
In a significant development for the cryptocurrency industry, the U.S. Securities and Exchange Commission (SEC) recently approved 11 spot Bitcoin exchange-traded funds (ETFs). This approval comes after a decade-long struggle between regulators and the digital asset industry, marking a watershed moment for the acceptance of digital assets as mainstream investments. Among the approved ETFs are BlackRock’s iShares Bitcoin Trust, Grayscale Bitcoin Trust, and ARK 21Shares Bitcoin ETF.
Unprecedented Inflows:
On the first day of trading, these ETFs saw impressive activity, with $4.6 billion worth of shares changing hands across all the products, according to LSEG data. Bitwise, a crypto asset manager, reported that its spot Bitcoin ETF alone attracted $240 million, making it the most popular among the newly introduced products. Grayscale, BlackRock, and Fidelity dominated total trading activity, according to the LSEG data.
Also Read: Grayscale Court Decision Crucial in SEC’s Approval of Bitcoin ETFs, Says Chairman Gary Gensler
Bitwise’s Chief Investment Officer, Matt Hougan, expressed optimism about the future, stating, “We think that this will become a market measured in the tens of billions of dollars.” This surge in interest highlights a growing acceptance of Bitcoin and other cryptocurrencies among traditional investors.
Competition and Fee Wars:
The SEC’s approval has sparked intense competition among issuers to gain market share. Franklin Templeton, reacting swiftly, slashed the fee for its Bitcoin ETF to 0.19 percent, the lowest in the market. Additionally, the company waived fees entirely on the product’s first $10 billion in assets under management until August. Valkyrie, another player in the space, reduced its fees to 0.25 percent after its ETF started trading. This fee war is indicative of the fierce competition among ETF issuers to attract investor capital.
Grayscale’s Transition to ETF:
Grayscale, a prominent player in the cryptocurrency investment space, received approval to convert its existing Bitcoin trust into an ETF. This move instantly made it the world’s largest Bitcoin ETF, managing over $28.6 billion in assets. Despite this success, the ETF experienced outflows of $95 million on the first day of trading. The ability of Grayscale to navigate this transition will be closely watched, as it sets a precedent for other trusts considering a similar shift.
Regulatory Caution:
While the SEC’s approval is a significant step forward, it is important to note that SEC Chair Gary Gensler emphasized that the decision should not be interpreted as an endorsement of Bitcoin. Gensler referred to Bitcoin as a “speculative, volatile asset,” highlighting ongoing concerns about investor protection. The regulatory nod indicates a willingness to explore the potential of digital assets, but caution is warranted as the market continues to evolve.
Conclusion:
The approval of 11 spot Bitcoin ETFs by the SEC marks a turning point for the cryptocurrency industry. The influx of billions of dollars within the first day of trading demonstrates a growing acceptance of digital assets among traditional investors. The fee wars among ETF issuers and Grayscale’s transition into an ETF further highlight the competitive dynamics and challenges in the market. As the cryptocurrency market matures, ongoing regulatory scrutiny and investor sentiment will play crucial roles in shaping the future of these innovative financial products.
Blockchain
Tether CEO Advocates for Real-World Use Cases in Crypto Without Blockchain or Tokens
In a recent exclusive interview with Cointelegraph, Tether CEO Paolo Ardoino has voiced his belief that the future of the crypto industry lies in providing real-world use cases without necessarily relying on tokens or blockchain technology. Ardoino argues that the next breakthrough in the industry should focus on the fundamental value proposition offered by cryptography, emphasizing peer-to-peer transactions and privacy protections.
“Crypto doesn’t need a blockchain. It doesn’t need a token,” Ardoino stated, challenging the conventional reliance on these technologies. He proposes that the industry should shift its focus towards practical applications that offer tangible benefits to users.
Ardoino suggests that potential killer apps in the crypto space could take the form of everyday solutions, such as a booking system or a competitor to ride-sharing services like Uber. The key, according to him, is to leverage the core strengths of cryptography in facilitating secure and private peer-to-peer transactions.
One of the primary concerns raised by Ardoino is the centralization and regulatory scrutiny associated with token issuance. He argues that introducing a token creates a centralized point of failure, increasing the likelihood of regulatory challenges. Ardoino notes that many projects that issued tokens are currently under the scrutiny of regulatory bodies like the U.S. Securities and Exchange Commission (SEC).
“To be decentralized, this system wouldn’t need blockchain technology, which is slow and requires a global shared state,” Ardoino explained. He cited BitTorrent as an example of a decentralized system that achieved success without relying on blockchain technology.
The Tether CEO contends that departing from the conventional blockchain and token model could lead to more innovation and adoption in the crypto industry. By focusing on the core principles of cryptography, projects can potentially avoid regulatory challenges and offer solutions that resonate with a broader audience.
Also read:Bitcoin-Centric Firms Surge in Pre-market as BTC Soars Past $45K
As the crypto industry continues to evolve, Ardoino’s perspective challenges the status quo, encouraging a shift towards real-world applications that prioritize user experience and practicality over traditional blockchain and token-centric approaches.