Market Update: November 2, 2022

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The Monetary Authority of Singapore (MAS) announced the launch of two new pilot projects to explore the usage of tokens in wealth management and trade finance. The first trades using tokenized versions of the yen and the Singapore dollar were completed successfully. The programme was launched to evaluate the use of DeFi, in which financial transactions are made on a blockchain without the involvement of a third party, in the wholesale finance market. In the wealth management pilot, HSBC, United Overseas Bank (UOB), and Temasek collaborate with Marketnode, a platform for digital assets created by the Singapore Exchange (SGX) and Temasek. Standard Chartered (STAN) is in charge of the first pilot, which looks at using tokens for trade financing, and another pilot, which examines the tokenization of wealth management products.

Kunji market update

Coinbase has asked the judge in ongoing Ripple vs. SEC case for permission to file an amicus brief in support of Ripple Labs. Amicus briefs are legal documents submitted to a court of law that provide information or advice about a case from a party-neutral organisation or individual that acts as the court’s “friend”. The case revolves around alleged violations for selling its XRP token as an unregistered security. The company has gained support from a number of organisations and individuals. It argues that the regulator’s registration requirements for national securities exchanges are “unsuitable” for digital asset platforms. The filing comes two weeks after the exchange backed Grayscale’s fight with the SEC over Bitcoin-related issues.

According to a recent report, 97.7% of the tokens introduced on Uniswap ended up being scams. Only 631 of the almost 27,000 tokens examined were determined to be “non-malicious.” The Multidisciplinary Digital Publishing Institute released the document in March 2022. The dataset was enhanced to include tokens that were on Uniswap V2 through September 3, 2021, but otherwise, the two versions are identical. MDPI’s version is a few pages larger. Between April 5, 2020, and September 3, 2021, Uniswap researchers gathered transaction data for all the tokens listed on Uniswapp V2. According to their findings, “90% of tokens using locking contracts tend to become rug pull or malevolent token at some point.” The research article details the techniques employed to determine market value, including the Herfindahl-Hirschman Index.

That’s it for today, see you tomorrow

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