Chinese traders withdraw funds from exchanges for DeFi gains
Chinese demand for DeFi continued to grow this week as the term trended on social media platform WeChat, spiking to an all-time high search volume of nearly 900,000 on Sept. 2.
As the price of Ether dropped from $400 this week, and once plummeted to $316 on Sept. 5, Chinese traders withdrew their ETH from crypto exchanges to participate in DeFi liquidity mining. Data from CryptoQuant shows that the amount of ETH held in exchanges has been dropping since early September.
On Sept. 6, it was also reported that users were experiencing difficulty withdrawing ETH and other yield-farming tokens from some exchanges as exchange holdings dropped.
Key takeaways
Despite the surging Chinese demand for DeFi, the recent crypto sell-off led to a $1.8 billion wipeout of total value locked in the DeFi market.
In the pursuance of liquidity mining, automated market-maker SushiSwap remains in the spotlight for Chinese traders this week.
Diginex raised $20 million ahead of planned Nasdaq IPO
Richard Byworth, CEO of Diginex, a company providing digital asset services, revealed that the company raised $20 million from a group of private investors before the planned listing on the Nasdaq stock market in late September.
According to Byworth, the company completed a private placement of convertible notes from investors, including family offices in London and Hong Kong as well as a hedge fund. He added that the $20 million private placement serves as a reference point for investors to assess Diginex’s upcoming takeover by 8i Enterprises Acquisition Corp.
Key takeaways
Diginex provides a diverse range of digital asset services, including a digital currency exchange (EQUOS) and a crypto custodian arm (Digivault).
The $20 million raised will be used as capital expenditure for Diginex. The company plans to shrink and relocate its staff from Hong Kong to Singapore.
The U.S. SEC has already approved the listing of Diginex. The company is expected to list on Sept. 23, once it receives approval from 8i shareholders and Nasdaq.
Bitmain rejected rumors of new mining models presale
Bitmain has released a statement to reject rumors of launching a presale for its latest 5nm mining models.
According to the statement, Bitmain acknowledged that the announcement was planned by its former CEO, Micree Zhan, but clarified that those miners, based on 5nm chips, are still in trial stages and are not expected to be launched in the near future.
Key takeaways
Bitmain ousted Micree Zhan as the CEO in October 2019. This implies that Zhan is no longer the legal representative of Bitmain and its subsidiaries, hence he cannot sign any contracts or initiate business relationships on behalf of the company.
Bitmain’s statement indicates that Zhan’s intention to announce the presale of Bitmain’s latest mining models was a fundraising attempt to deceive customers.
Please visit https://www.okex.com/ for the full report.
Disclaimer: This material should not be taken as the basis for making investment decisions, nor be construed as a recommendation to engage in investment transactions. Trading digital assets involve significant risk and can result in the loss of your invested capital. You should ensure that you fully understand the risk involved and take into consideration your level of experience, investment objectives and seek independent financial advice if necessary. OKEx Insights presents market analyses, in-depth features, original research & curated news from crypto professionals.
was originally published in OKEx Blog on Medium, where people are continuing the conversation by highlighting and responding to this story.
