Overview of Hong Kong Crypto Market
In a cryptocurrency adoption rate report by Finder, Hong Kong has the highest cryptocurrency adoption rate in Asia, ranking in the Top 5 globally. Among them, the cryptocurrency adoption rate in 2022 was 16%, searches for cryptocurrency increased by 209%, while 7.6 cryptocurrency-related articles were published per 100,000 people, and cryptocurrency ATMs increased by 152%.
A report from Chainalysis shows that Hong Kong is a very active cryptocurrency market in terms of raw trading volume, with an estimated $64 billion in cryptocurrencies received between July 2022 and June 2023. Although Hong Kong’s population accounts for 0.5% of mainland China, it is even more impressive compared with China’s $86.4 billion in the same period. What’s important is that Hong Kong’s population base and industrial structure are more about replicating its model and framework as the world’s top three financial centers in the field of encryption. This is similar to Singapore and London, but it is significantly different from Dubai, Turkey and even the United States. .
Judging from the data on tourists visiting Hong Kong, as the COVID-19 epidemic recedes, the number of tourists visiting Hong Kong will begin to grow rapidly from the beginning of 2023, with China accounting for about 80%. In addition, the government has created a good business environment and living environment for the encryption industry. According to Hong Kong Crypto physical store data and feedback from practitioners, OTC transactions will increase by about 25% in the first half of 2023, and are expected to continue in 2-5 years. substantial growth.
In terms of transfer scale, large institutional transactions account for a larger share of the transaction volume. Among transfers greater than $10 million, Hong Kong ranks first with 46.8%, which is higher than the global average of 45.7%; retail transfer ratio The global average is slightly lower. Much of this is driven by Hong Kong’s very active over-the-counter trading market, where over-the-counter or over-the-counter “trading desks typically provide large transfers for institutional investors and high-net-worth individuals.”
Compared with other regions in East Asia, Hong Kong shows a unique segmentation in the most commonly used encryption platform types, especially in DEX, which accounts for a very high proportion, exceeding Taiwan by 2 percentage points and exceeding the global average by about 14 percentage points. The main reason is that OTC transactions account for a higher proportion of this.
Characteristics of encryption users in the Hong Kong market
The exact number of cryptocurrency owners in Hong Kong is difficult to determine, but what is certain is that an increasing number of individuals and companies are involved in cryptocurrency trading, investment and blockchain technology development.
According to the “2023 Retail Investor Study” conducted by the Investment Committee, 75% of virtual asset investors surveyed are pursuing short-term gains. Furthermore, 74% of cryptocurrency investors believe in the enduring trend of virtual assets, while 73% are concerned about missing out on profitable opportunities.
In other words, although investors have good financial knowledge, their financial management behaviors still need to be strengthened. The disconnect between knowledge and practical application highlights the importance of a comprehensive investment strategy approach.
In a cryptocurrency adoption report by Finder, the top 5 are all in Asia, with Hong Kong residents owning 26% of crypto assets. Considering Hong Kong’s status as a global financial center, this number is not surprising. Surprisingly, Hong Kong actually has the highest proportion of Bitcoin owners (18%) and ranks second overall, behind Vietnam (20%).
By age group, 18–24 year olds are most likely to own cryptocurrencies at 35%, followed by 35–44 year olds at 30%, 25–34 year olds at 28%, and a whopping 23% of those over 65 years old. %, 19% of those aged 55–64, and 16% of those aged 45–54.
Crypto users in Hong Kong are mainly concentrated among Generation Z, and the ownership rate is very high, which is consistent with a study on the investment preferences of Generation Z by the University of Hong Kong. Compared with older age groups, Generation Z in Hong Kong is more aware of the importance of financial management, has a higher deposit rate in banks, and has a higher investment and holding ratio in crypto assets.
From a gender perspective, Hong Kong is consistent with global trends. There are more men than women among crypto users. 30% of men hold cryptocurrency in Hong Kong, while the proportion of women is 23%. The main reason is that men’s income is relatively higher and men are more interested in encryption and Web3.
Hong Kong’s Web3 project
As a financial center, Hong Kong is vigorously promoting the implementation, compliance, and introduction of resources and talents in the Web3 and encryption industries. However, due to natural limitations, there are not many Web3 projects in Hong Kong, and some of them will use their technologies. The team or marketing team is outsourced to Shenzhen or Kuala Lumpur.
MAMORI
Mamori is a smart contract audit system based on the Web3 algorithm. It mainly focuses on zero-day economic vulnerabilities and MEV, and solves the problems of scalability, automation, vulnerability detection relevance and performance in the field of Web3 security. Their goal is to apply interdisciplinary techniques and protect against “unknown unknown” vulnerabilities. To achieve this goal, they use algorithm parsing technology to build smart contract sequences, leverage reproducible stateful computing technology, and integrate innovative, customizable algorithm feedback mechanisms.
Ladder
Ladder is a decentralized automated market maker protocol (AMM) that specializes in providing instant exchange services for NFTs using liquidity pools. Although Ladder is primarily geared toward the GameFi space, they support all major token standards, including ERC-721, ERC-1155, ERC-3525, ERC-20, and more.
Yuliverse
Yuliverse is a blockchain-based play-to-earn game that combines elements of GameFi and SocialFi with its NFTs and cryptocurrencies, ARGs and ARTs. It provides players with a gaming experience with a “money-on-demand” mechanism. The game is designed to promote social engagement and interaction, providing players with opportunities to explore the real world and connect with local businesses. By completing tasks and challenges, players can earn two native tokens, which play an important role in the Yuliverse ecosystem.
Conflux Network
Conflux is a high-performance Layer 1 blockchain designed for dapps that require massive speed while ensuring decentralization. Conflux’s tree graph structure can confirm multiple blocks at the same time. This parallel processing of blocks and transactions reduces confirmation time and greatly improves transaction throughput. As a compliant and permissionless public chain in China, Conflux is building a borderless transaction and technology ecosystem for globally minded crypto projects, expanding from China to North America, Russia, Latin America, Europe, Africa and other parts of the world .
Element
Element is a multi-chain aggregation NFT market that aims to build a community-driven integrated market with the best trading experience and the lowest entry barriers. Element provides partners with exclusive pages, collection certification and launchpad services to promote project development and participation. Element has been deploying the Hong Kong market for a long time, and many multinational consumer goods company headquarters have the need to issue NFTs.
The Sandbox
Founded in 2012, The Sandbox is one of the leading metaverse concept projects. It is a decentralized, community-driven game ecosystem where players can create NFTs, upload them to the in-game market and transfer them into the game. . The project has raised a total of 2 rounds of financing, with a total financing amount of US$95.1 million. The main investors are SoftBank Vision Fund, Animoca Brands, Blue Pool Capital, Polygon Labs, Liberty City Ventures, Samsung Nex, etc.
Disclaimer:
This article is not the official content of the HTX community.
The above content is for reference only and does not constitute any investment advice.
This article is originally in Chinese, translated by Google translate.
The post first appeared on HTX Square.
