Mark Travoy

Binance, a leading cryptocurrency exchange, is reportedly in the final stages of negotiating the sale of a majority stake in the South Korean exchange Gopax to the local cloud service provider Megazone.

According to a report by South Korea’s news agency The Chosun Ilbo on July 11, Binance is preparing to reduce its 72.6% stake in Gopax to as low as 10%.

An anonymous industry insider related to Gopax indicated that Binance is pushing the sale to enhance its governance structure as requested by local financial authorities.

Initially, Binance announced the acquisition of a 72.26% stake in Gopax in February 2023, aiming to re-enter the South Korean market after ceasing operations there in 2021.

However, the acquisition faced hurdles as South Korean financial authorities blocked the capital injection by denying the change of the largest shareholder.

Additionally, Binance’s regulatory challenges in the United States, including a lawsuit from the US Securities and Exchange Commission, fueled further regulatory skepticism in South Korea.

The recent news about the potential sale comes just weeks before Gopax is expected to renew its real-name account contract with Jeonbuk Bank, which is due to expire on August 11, 2024.

READ MORE: Microsoft and Apple Withdraw from OpenAI Board Amid Regulatory Scrutiny

Jeonbuk Bank and Gopax had signed a two-year real-name account contract in August 2022.

Cointelegraph reached out to Binance for a comment on the sale of Gopax shares but did not receive a response at the time of publication.

Gopax was significantly impacted by the collapse of Sam Bankman-Fried’s FTX crypto exchange in November 2022.

Shortly after FTX’s collapse, Gopax halted withdrawals of principal and interest payments in its decentralized finance service, which included products from the now-bankrupt crypto lending firm Genesis Global Capital.

Before its bankruptcy, Genesis’ parent company, Digital Currency Group, was reportedly Gopax’s second-largest shareholder and a crucial business partner, supplying its GoFi product.

According to The Chosun Ilbo, Gopax’s total debt was 118.4 billion South Korean won ($86 million) as of April 2024.

Binance’s decision to sell the majority stake in Gopax underscores the complex regulatory landscape and the challenges of maintaining operations in the highly scrutinized cryptocurrency market.

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Crypto exchange Bitget reported a notable $700 million capital inflow and a surge in website traffic during the second quarter of 2024.

The company experienced a 50% increase in traffic compared to the previous quarter, attracting 10 million monthly visitors in Q2.

Additionally, Bitget saw 2.9 million new users and a 10% rise in its spot trading market volume from Q1.

Bitget also reported significant growth in its funds.

The company noted that its Bitcoin (BTC), USDT, and Ether (ETH) holdings surged by at least 70%.

BTC holdings grew by 73%, while USDT and ETH holdings saw increases of 80% and 153%, respectively.

This translates to approximately $700 million in capital inflow, according to Bitget.

In Q2 2024, Bitget formed partnerships with three Turkish national athletes: wrestler Buse Tosun Çavuşoğlu, boxer Samet Gümüş, and volleyball player İlkin Aydın.

This initiative is part of a broader campaign featuring football legend Lionel Messi.

Bitget CEO Gracy Chen expressed gratitude for the community’s support, emphasizing the company’s commitment to Web3’s future. Chen stated:

“Q2 2024 has been a pivotal period for Bitget. Our collaboration with Turkish athletes along with significant growth in users and website traffic is a part of our global expansion.”

In collaboration with Singapore-based investment firm Foresight Ventures, Bitget launched a $20 million ecosystem fund in Q2.

READ MORE: Mt. Gox Begins Long-Awaited Bitcoin Repayments, Sparking Market Volatility

This fund aims to support early-stage projects on The Open Network (TON) and foster the development of the TON ecosystem.

The exchange also emphasized its proof-of-reserves (PoR) report, which shows ratios above 100% for all major assets.

Bitget reported holding more than 100% of cryptocurrencies compared to user funds, enhancing trust and security.

Furthermore, Bitget’s protection fund is valued at over $420 million, providing additional security for its users.

To combat the rising threat of deepfake scams, Bitget partnered with Know Your Customer (KYC) verification provider Sumsub.

This collaboration aims to prevent deepfake scammers from completing the KYC verification process on the exchange.

On June 27, Bitget researchers warned that losses from deepfake attacks within the crypto space could reach $25 billion in 2024.

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Central banks globally are increasingly exploring blockchain technology, with the European Central Bank (ECB) being a recent participant.

The ECB recently completed a blockchain experiment for its central bank digital currency (CBDC) with Zama, as announced by Nigel Smart, the firm’s chief academic officer.

During a panel at FHE Summit 2024, Smart stated, “We did one with the European Central Bank on liquidity matching. […] And a number of applications on CBDCs have been actually to remove the central bank out of the equation and replace it with a blockchain.”

Liquidity matching, the process of aligning a bank’s inflows and assets with its outflows and liabilities to ensure sufficient funds to meet obligations, is crucial.

However, Smart highlighted that liquidity matching is challenging for multiple parties transacting on the same blockchain network.

He elaborated, “Then the issue is if you have multiple entities on the blockchain and it’s all encrypted stuff, how do you do liquidity matching? That’s a really big issue.”

Smart, a prominent cryptographer, is developing fully homomorphic encryption (FHE) solutions for blockchain and artificial intelligence at Zama.

FHE allows computations on encrypted data without decrypting it, enhancing data security.

READ MORE: Bitcoin Poised for 300% Gains by 2026 Despite Current Downturn, Analyst Predicts

In early March, Zama secured a $73 million Series A funding round to advance the firm’s FHE stack and provide developers with more tools for data privacy solutions.

Multiparty computation (MPC), which enables multiple parties to compute shared data without revealing the actual data, also shows promise.

Smart noted that the MPC-based experiment with the ECB was successful, but scaling to support the entire European economy will require more time.

He said, “We did an experiment with the European Central Bank where we essentially ran the Finnish economy through an MPC engine, and we could keep track. We could actually keep up with Finland, which is good, but not on the European scale yet.”

Smart added that the financial sector is increasingly exploring MPC technology, which could lead to more use cases for large financial institutions.

This growing interest in advanced cryptographic solutions signifies the financial sector’s drive towards greater security and efficiency through technology.

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Technology giants Microsoft and Apple have decided not to join the board of artificial intelligence firm OpenAI due to increasing regulatory scrutiny.

On July 10, Bloomberg reported that Microsoft had sent a letter to OpenAI announcing its decision to withdraw from the board.

This move came about a year after Microsoft made a substantial $13 billion investment in OpenAI in April 2023.

Following Microsoft’s departure, OpenAI will have no board observers.

In its memo to OpenAI, Microsoft stated, “Over the past eight months we have witnessed significant progress from the newly formed board and are confident in the company’s direction,” adding, “We no longer believe our limited role as an observer is necessary.”

Contrary to earlier reports that Apple would also get an observer role on OpenAI’s board as part of a landmark agreement announced in June, OpenAI confirmed it would have no board observers after Microsoft’s exit.

OpenAI expressed gratitude towards Microsoft, stating, “We’re grateful to Microsoft for voicing confidence in the board and the direction of the company, and we look forward to continuing our successful partnership.”

READ MORE: Bitcoin Poised for 300% Gains by 2026 Despite Current Downturn, Analyst Predicts

Cointelegraph reached out to both Microsoft and OpenAI for comments regarding the board membership but did not receive a response by the time of publication.

This news comes amid growing regulatory pressure on Big Tech firms over their potential impact on AI and industry dominance.

In June, European Union regulators announced that OpenAI could face an antitrust investigation over its partnership with Microsoft.

EU competition chief Margrethe Vestager noted that local regulators would seek additional third-party views and survey firms like Microsoft, Google, Meta, and ByteDance’s TikTok regarding their AI partnerships.

Previously, the European Commission stated that Microsoft could be fined up to 1% of its annual revenue in the EU if it fails to respond to requests for information related to its Bing search engine and associated generative AI services.

In April 2024, Apple and OpenAI were reportedly in active discussions about integrating generative AI technologies on iOS.

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The term artificial intelligence (AI) has been part of mainstream parlance since late 2022. However, whenever discussions surrounding this revolutionary technology surface, the focus seems to primarily be centered on aspects like its use of cutting-edge algorithms and the powerful hardware driving these systems. 

However, an equally crucial component that often flies under the radar is the data sets that fuel these AI models. Over the past year, it’s become increasingly clear that the quality and quantity of information being fed to these complex systems are paramount to the success of AI systems. But who collects this data, and how can we ensure it is diverse, accurate, and ethically sourced?

Traditionally, AI data collection has been the domain of experts and specialized teams. This approach, while undoubtedly producing high-quality datasets, often leads to bottlenecks in the AI training process, especially when it comes to the introduction of individual biases. Therefore, it’s not just about having enough data; it’s about having the right data that represents a wide range of perspectives and use cases. 

In this context, discussions pertaining to ‘decentralized AI infrastructures’ are beginning to gain a lot of traction recently, especially since they offer a legitimate solution to democratize AI data collection and accelerate innovation in the field. To this point, NeurochainAI, a ready-to-use AI infrastructure provider, leverages a community-powered module called “AI Mining,” allowing individuals to participate in various data collection and validation tasks — effectively turning its backers into a vast, diverse data collection network.

Simplifying the Complex 

From the outside looking in, the genius of decentralized AI data collection systems lies in their ability to break down complex tasks into manageable, bite-sized pieces that don’t require specialized knowledge. This approach, often referred to as ‘microwork,’ allows virtually anyone with basic training to contribute to AI development.

NeurochainAI’s ‘Data Launchpad’ embodies this approach such that AI developers or companies start by submitting data collection or validation tasks. These tasks are then meticulously broken down into instructions that anyone can follow. Community members, referred to as “AI Miners,” can select tasks that interest them and complete them using their consumer hardware within their respective DePINs (Decentralized Physical Infrastructure Networks) — i.e. localized digital ecosystems leveraging consumer hardware to perform computational tasks, thus distributing the workload across a network of devices.

The collected data is subsequently validated by other community members, ensuring both accuracy and quality. Contributors are duly rewarded for their efforts, fostering a mutually beneficial scenario for both AI developers and the community.

Additionally, NeurochainAI’s model addresses one of AI’s most pressing challenges: its monumental energy consumption. Traditional AI data centers consume vast amounts of power, with some estimates suggesting that by 2027, they could consume as much electricity as the entire Netherlands.

Not only that, a study by the International Energy Agency estimates that these data centers could see their power use increase to between 620 and 1,050 TWh by 2026 — equivalent to the energy demands of Sweden and Germany, respectively. NeurochainAI’s approach distributes this computational load, potentially reducing the overall energy footprint of AI development.

Unlocking New Frontiers 

As things stand, the implications of democratized AI data collection seem to be quite far-reaching and exciting. By removing some of the bottlenecks associated with “expert-only data collection” practices, it is possible that we could witness an explosion of AI applications across fields that have been historically underserved due to a lack of relevant data sets.

For instance, one can imagine AI models that can understand and generate high-quality information in rare languages (thanks to data collected by native speakers around the world). Similarly, novel medical AI use cases can also emerge, such as those that can recognize symptoms of rare diseases, trained on data contributed by patients and healthcare workers globally. The possibilities are literally endless!

Last but not least, this democratized approach could lead to more ethical and transparent AI development. When data collection is a community effort, there’s inherently more oversight and diversity in the process. 

Therefore, as we look toward an AI-driven future, platforms like NeurochainAI are not just changing how we gather information for AI data training; they’re reshaping the landscape surrounding this domain altogether.

The blockchain gaming ecosystem has slowly faded from the spotlight in 2024, as other ecosystems, such as artificial intelligence and memecoins, rise to prominence. Regardless, Web 3 gaming remains a powerhouse in blockchain, with the total market capitalization standing at $15 billion, as of writing. The constant developments across the space majorly influence this – as the once simplistic one-click games become more playable and interactive and can now fairly compete with their Web 2 counterparts. 

Games like Axie Infinity have pushed Web 3 gaming to greater heights, setting the standard on what play-to-earn (P2E) game models should be. As such, new games entering the blockchain gaming realm need to be of a very high standard to capture the attention of players, investors and partners. One such game, My Pet Hooligan, built on Unreal Engine 5, is doing exactly that with its enhanced gaming model that is unique for a blockchain game. 

In contrast to previous Web 3 games, My Pet Hooligan introduces cutting-edge technology, artificial intelligence, AAA-quality gaming models, and an exciting realm that offers better asset rewards. The question that arises is how well My Pet Hooligan will fare in a stacked Web 3 gaming market. 

In this piece, we delve into the technology, gameplay, community, and potential of My Pet Hooligan, comparing it to the best of Web 3 games – Axie Infinity. 

Axie Infinity: The Rise of Playable Web 3 Games

Axie Infinity is a Web 3-based gaming ecosystem that combines the aspects of traditional gaming, crypto, NFTs, and blockchain. Set in a metaverse named Lunacia, Axie Infinity allows players to buy, breed and battle creatures (Axies) for an opportunity to earn real money rewards. The game utilizes an in-game cryptocurrency called AXS, which allows players to purchase and trade Axies and use them in battles to earn rewards. 

The play-to-earn game was launched in 2018 by Trung Nguyen, Aleksander Leonard Larsen, and Jeffrey Zirlin. 

The associated assets and transactions are conducted via the Ronin sidechain, a Layer-2 EVM-compatible blockchain built to scale Axie Infinity. Ronin is home to most digital assets used in the Axie Infinity ecosystem, and the project team is expanding the network to allow third-party game development studios to launch additional games.

Strengths

• Marketplace: Axie Infinity includes its marketplace that allows players to directly purchase and sell items, as well as collectible digital creatures. 
• Unique Gameplay: Players in the game can buy, earn and breed their digital creatures to advance in the game. 
• Early-to-market: One of the biggest strengths for Axie Infinity is launching in 2018, years before the GameFi craze during the pandemic years. 
• Vibrant community: The game has attracted nearly 1 million community members across its social media pages – X (formerly Twitter), Discord, and Telegram. 

Weaknesses

• Sustainability: As is with early blockchain games, Axie Infinity struggled with inflation as more players joined the game, setting back the price of its $AXS token. 
• Complexity: The game requires prior knowledge in the blockchain space, which provides a barrier for new players, who require a significant amount of time and effort to understand fully. 
• Cost barriers: Axie Infinity requires players to have a starting capital to buy Axies. Some of these digital assets can cost hundreds of dollars. 

Technology & Market Performance

Axie Infinity is a P2E game that uses a delegated proof of stake (DPoS) consensus mechanism, with its assets and transactions housed on the Ronin sidechain. Ronin is a layer 2 EVM-compatible blockchain aiming to scale Axie Infinity and conduct faster transactions with minimized fees. The network is secured by 22 validators, 10 of which are operated by community members with the highest total combined RON stake. The remaining 12 are classified as Governing Validators and are operated by parties selected by the project team. 

The game’s native token, $AXS launched in April 2018 and later was issued via a token sale on the Binance Launchpad in November 2020. Over the past year, the $AXS token has slightly dipped in value – to trade at $5.32, representing a 10% dip since July last year. 

My Pet Hooligan: Building an AI-based Web 3 Gaming Ecosystem 

My Pet Hooligan is the flagship interactive entertainment experience from AMGI Studios. It is a free-to-play Web 3 game that allows multiplayer competitions and socializing. The game involves players creating characters to battle against the evil overlord Metazuckbot, within the Hooliland City metaverse. Players can also fight against each other, destroy buildings and other artefacts, skate like a pro skater, hang out with friends and much more. The game developers confirmed that My Pet Hooligan will be a cross-platform game spanning PC, console and mobile. 

Insert Video: https://youtu.be/dAqHfm3yhQo

Crucially, the game offers gamers several gameplay modes that cater to unique player preferences. The three major player modes include: 

1. Coinpocalypse: This is a treasure hunt game mode that allows players to collect coins from different players and within the game. 
2. Anarchy: This is a PVP game mode that allows players to fight and compete against each other in a designated zone in an elimination battle. 
3. Hang Out: For players who do not want to constantly battle, this mode provides a setting whereby players can explore the city at their leisure, engage in activities like skateboarding, or just chill and watch content in the game’s movie theatre.

Strengths

• AI Innovation: My Pet Hooligan ranks as the first-of-its-kind blockchain game that implements AI technology to enhance the gameplay. 
• AI Entertainment: The game also offers an in-game AI entertainment studio that allows users to stream and create content and interact as their in-game avatars.  
• Team strength: One of the most important factors driving My Pet Hooligan’s growth is the strong team from AGMI Studio that has worked on popular gaming titles such as Toy Story. 
• Next-generation gaming: The game implements next-generation technologies such as AI to help bridge the gap between traditional gaming and Web 3 gaming, building exciting games for all players.

AMGI Studios was co-founded by Roger Paglia, Colin Brady, and Luke Paglia.  

Weaknesses

The only weakness of My Pet Hooligan is that the game is still relatively young in the Web 3 gaming space and hence could be susceptible to a few bugs. Nonetheless, the team works round the clock to ensure the game is running smoothly by removing any critical bugs. 

Technology and Market Performance

My Pet Hooligan is built on the KARRAT Protocol, a decentralized gaming infrastructure layer supported by its native $KARRAT token. The protocol aims to revolutionize Web 3 gaming and entertainment by integrating artificial intelligence technologies into its games. 

By integrating AI, My Pet Hooligan offers players an immersive and exciting experience across Hooliland City, interacting with other gamers and earning rewards in the process. The addition of AI-driven non-playable characters (NPCs) allows gamers to build real-time animation that establishes a living, and breathing world that reacts to player interactions.

The KARRAT Protocol not only provides gaming products but also allows game developers to build products that support other industries including retail, telecom, education, and other industries. The protocol provides tools that support the creation and adoption of these industries within their games. The decentralized communities decide how these are integrated and progressed.

My Pet Hooligan leverages the $KARRAT token within its ecosystem. The $KARRAT token launched in 2024, and despite the recent downturn in crypto market fortunes has performed relatively well. The token currently trades at $0.61, an 8% growth in the past 24 hours, having reached a peak price of $1.18 in June 2024. 

Futuristic Overview & Potential 

My Pet Hooligan development team has a solid roadmap for the coming months, showing its potential to take over Web 3 gaming. The game has introduced AI-integrated NPC characters within its metaverse, actively contributing to the immersive nature of the game experience. Advanced AI NPCs represent the next phase in the evolution of non-player characters. According to its roadmap, the game will also include AI-driven game characters training that will be modeled on organic player behaviour. 

Additionally, the game also includes staking features for NFTs, rewarding stakers with $KARRAT tokens. 

Table comparing features of Axie Infinity and My Pet Hooligan

Features	Axie Infinity	My Pet Hooligan
Barrier to entry	High due to entry costs	Low – Free-to-Play
Blockchain	Ronin	Ethereum
Gaming engine	Unity	Unreal 5
Community	Over 1 million community members	Slightly less than 300K members
Tokenomics (Total supply)	270,000,000 $AXS tokens	1,000,000,000 $KARRAT
Economic Maturity	High	Medium (Growing)

Final Words

The blockchain gaming ecosystem has seen a massive shift in attention over the past two years, with investors and crypto aficionados moving towards new technologies in the space. Nonetheless, the ecosystem continues to thrive in development and innovation. Axie Infinity has laid a strong foundation for play-to-earn models, demonstrating both the potential and challenges of blockchain gaming. On the other hand, My Pet Hooligan is pushing the boundaries with innovative AI integration and a focus on immersive, next-generation gaming experiences.

As the gaming landscape evolves, new technologies employed by projects such as My Pet Hooligan will be important in providing compelling, accessible gameplay that can compete with traditional Web 2 games.