Dacxi Crypto Wealth | This Week in Crypto | 10-17 August

This Week in Crypto | 10-17 August



Aug 17, 2021


Singapore Prefers Ether to Bitcoin

Walmart Looks for Crypto Product Lead to Helm Its Digital Currency Strategy

Polygon Acquires Hermez Network

Hacker Responsible for One of the Biggest DeFi Attacks Ever Returns Nearly All the Funds Stolen

More than half of the 100 Largest Banks in AUM Have Investments in Crypto pr Blockchain Companies

This week’s crypto industry updates once again reflect the growing adoption of crypto and blockchain in the mainstream. More than ⅔-rd of the Singaporeans with any sort of financial investment now hold crypto. On the institutional front, Walmart is looking for a crypto product lead to drive its digital currency strategy forward. Most importantly, 55% of the world’s top 100 largest banks by AUM have crypto exposure in one way or another. 

Singapore Prefers Ether to Bitcoin

Singapore is known for its inclination towards holding crypto assets. As a recent study revealed, more than two-thirds of the Singaporeans who have financial investments hold crypto. The survey was conducted among a sample population of 4,348 Singaporeans, who identified themselves as individuals interested in personal finance and investment products. 

The profile of an average crypto holder in Singapore that came out from the survey was that of a 29-year old male with an average annual household income of about 51,968 Singapore dollars, equivalent to 38,456 US dollars. The gender distribution of the Singaporean crypto owners was heavily skewed towards the male population. Only one in five crypto holders were women. 

Another interesting insight that came out from the survey was the dominance of Ether over Bitcoin. Bitcoin is the most popular crypto asset in the world, which occupies more market share than any other digital asset in the world. The market share it occupies exceeds Ether, the second on the list, by a big margin. 

However, among the Singaporean investors surveyed, 78% held Ether, followed by Bitcoin, Cardano ADA, and Binance Coin, which were held by 69%, 40%, and 31% of the population respectively. 

Walmart Looks for Crypto Product Lead to Helm Its Digital Currency Strategy

In yet another example of mainstream big shots adopting crypto, North American retail giant Walmart is looking to recruit an experienced crypto expert to develop and lead its digital currency strategy and future roadmap. 

The potential employee should have an established track record in leading and scaling businesses. His/her track record should have at least 10 years of experience in product or program management along with robust experience in the commercialization of technology-based products. 

Walmart has also developed a fintech venture called Hazel. It would offer a wide range of financial services integrated into a super app. 

Walmart is not the first major American business powerhouse to show interest in recruiting crypto industry veterans. Apple, too, had posted a job listing for an alternative payments manager recently, with experience in cryptocurrencies. 

Polygon Acquires Hermez Network

Layer-two protocol Polygon has decided to make Hermez a part of its suite of solutions. The new entity would be called Polygon Hermez. Apart from its tech solutions, which include its work on an Ethereum Virtual Machine-compatible solution, 26 people in the Hermez team will also join the new entity. The merging of the Hermez Network into the Polygon ecosystem happened in exchange for $250 million worth of MATIC tokens. 

The native token of the Hermez Network is HEZ. After the acquisition, the holders of HEZ tokens will now be able to exchange the tokens at a rate of 3.5:1 to Polygon’s MATIC. However, HEZ tokens will gradually phase out in the days to come. There is no fixed date though specifying the time of ultimate phasing out. 

As a ZK-rollup project, Hermes leverages zero-knowledge proofs to verify the authenticity of a big batch of transactions. On Hermez Network, a standard transfer of ETH taking 100 bytes on the chain otherwise, would only consume 10 bytes. 

Hacker Responsible for One of the Biggest DeFi Attacks Ever Returns Nearly All the Funds Stolen

The attack on the cross-chain decentralized finance protocol Poly Network had reportedly resulted in a theft of $610 million. In an exciting turn of events, the hacker has now returned almost all the stolen funds. Apart from the $33 million in USDT, which was immediately frozen after the news of the attack became public, all other funds have now been transferred to a multi-signature wallet. 

The wallet is controlled jointly by the project and the hacker. Although the hacker did establish contact through embedded messages in Ethereum transactions with the Poly Network Team and others, it refused the $500,000 bounty offered by the Poly Network. 

More than half of the 100 Largest Banks in AUM Have Investments in Crypto pr Blockchain Companies

Recent research shows that out of the 100 top banks by assets under management (AUM), 55 have some sort of exposure to crypto and blockchain. The exposure could be in terms of banks or their subsidiaries having direct or indirect investments in crypto and decentralized ledger technology firms. 

While banks like Barclays, Citigroup, and Goldman Sachs are the most active backers, others like JPMorgan and BNP Paribas are also serial investors. 

Another crucial insight that emerged from the research was that at least 25 out of the 100 banks by AUM are developing crypto custody solutions, a vital focal point for the banks willing to dive into the crypto space. 

The research could identify a host of motivating factors as to why banks were becoming interested in the crypto space. These three factors were: astounding profits registered by many Crypto startups, the increasing rate of regulatory relaxations, and the accelerating demand among bank customers for exposure to digital assets.