Recently Recap, a crypto tracking and capital gains solution provider, published its report under the title ‘Which Cities are leading the way in cryptocurrency’. 50 cities were put in the report.
As per the report Recap scored these cities based on the following criteria. The first was quality of life score; personally I don’t see how crypto is related to quality of life. For me the most popular crypto enthusiasts and users are usually from cities and countries which have the most unbanked population or live in countries where the financial and economic situation is not that impressive. Examples include Morocco, Lebanon, Turkey, Egypt and others, all by the way not even mentioned in the report.
Their second criterion was crypto specific events! Wow this was a first for me, so if a city carries out a lot of crypto events then automatically it becomes a city leading the way in cryptocurrency. This was actually one of the biggest reasons Kuwait was put on the list, coming in at 16th place, because it had 64 crypto related events!! The funniest thing is that UAE was mentioned as only having 20 crypto events! I mean who are we kidding, even CZ from Binance tweeted the other day that UAE has a crypto event every day! This means that there are 365 crypto events in UAE not 20. Both stretch the truth a bit, but all can agree that the number of blockchain and crypto events in UAE definitely surpass that of Kuwait.
But please let’s not stop there, the third criteria was people working in crypto related jobs! I really don’t know how they even reached that number, but let’s dig into their numbers, so first they mention that London in the UK has the most crypto related job over 2000, while Dubai in UAE has 869 to be exact! But Japan top three crypto cities only have a total of 14 people working in crypto jobs! I mean seriously! While Jeddah in Saudi Arabia has 24 people working in crypto related jobs and believe it or not Kuwait city has 7!
Can someone tell me where is Bahrain in all of this? Bahrain which has Binance, CoinMENA, Rain, crypto payments and an ATM or two? Bahrain were crypto growth has skyrocketed.
Even If were naïve enough to believe this, given that both Kuwait and KSA have not even started to regulate crypto how is that possible, and how can Japan which was considered one of the most advanced countries in crypto and blockchain only 14 people working in crypto in its top three cities?!
But Alas comes the number of crypto companies. So please bear with me. In Dubai UAE, there are 867 people working in crypto related jobs and there are 772 crypto companies in Dubai UAE. Amazingly that would mean that there is almost 1.2 employees working across these 772 crypto companies. Even UAE Based crypto Oasis has calculated that there are 1,600 blockchain and crypto related entities in the UAE.
Skipping down to the most interesting part, the ownership of crypto in each country,. According to Recap 34 percent of the population living in UAE own crypto, how is that possible when UAE was the number third country in MENA in terms of crypto movement into the country as per Chainalysis. What’s even funnier is Kuwait which took 16th position beating KSA, Recap has 0 percent of people owning crypto in Kuwait! You read it right zero percent of people in Kuwait own crypto but they all go to the 65 crypto events happening in the Kuwait city! Surprisingly Saudi Arabia has 20 percent ownership of crypto among its population but comes in at number 22!
Anyhow I will stop here. To go any further with analyzing their data would be a waste of time! I am not contending that Dubai is not the number two city in the world leading crypto, but I would not use Recap report to make that point! The whole report is nonsensical.
But what really bothers me, is that a lot of media actually published and picked up this report and used their data. Where is the world coming to?!
The Ultra-Abu Dhabi, the premier EDM music festival taking place on March 4th and 5th 2023 will be powered by NFT (Non fungible token) tickets developed by BNB Chain, smart contract blockchain and Fellaz, a Web3 entertainment ecosystem.
The cutting edge ticketing solution powered by BNB Chain will verify the authenticity of tickets, ensuring legitimacy. The collaboration will allow for a more seamless and secure ticketing experience for Ultra Abu Dhabi fans using NFT ticketing while providing a new blueprint for Web3 fan engagement specializing in the music industry.
BNB Chain was originally initiated by Binance but has since grown to become a community-driven, permissionless, and decentralized blockchain ecosystem. Binance is now one of the many contributors operating within the BNB Chain ecosystem rather than some kind of dominant force wielding unilateral power over it.
Alvin Kan, Director of Growth and Ops at BNB Chain said, “The new NFT ticketing solution will allow the use of NFTs to provide a secure and tamper-proof way to verify the authenticity of tickets and offer a convenient and seamless experience for the fans. We believe that this collaboration represents a major step forward in the use of mainstream blockchain technology in the entertainment industry, and we are confident that it will set a new standard for Web3 fan engagement and entertainment applications in both IRL and Metaverse environments.”
Bobby Bhatia, CEO of Fellaz, said, “We are excited to partner with BNB Chain to bring our NFT ticketing to this global EDM music festival. Fellaz NFT Tickets powered by BNB Chain will provide a more secure and engaging ticketing experience for fans. We are thrilled to be at the forefront of this technology in the entertainment industry with global brands like Ultra.”
“We are thrilled to partner with Fellaz on this groundbreaking initiative,” said Dudley Chou, Managing Partner of UC Global, the organizer behind many Ultra events in Asia, including Ultra Abu Dhabi. “The use of NFTs for event ticketing is a growing trend in the entertainment industry, and our partnership with Fellaz and BNB Chain is a major step forward in bringing this technology to the mainstream. With its seamless integration and unmatched security, Fellaz’s NFT ticketing solution will provide a new level of convenience and engagement for fans and event organizers alike.”
Integrating NFTs into the ticketing process offers several advantages over traditional ticketing systems. NFTs offer a reliable and secure means of verifying ticket authenticity, guaranteeing entry access exclusively to those with legitimate tickets. This helps to combat the issue of ticket fraud, which has long been a problem in the music industry.
Also, it allows for greater flexibility and convenience in the ticket-purchasing process. Ticket holders can easily transfer their tickets to friends or resell them on the secondary market without paying a fee to a reseller. This allows for a more seamless and hassle-free experience for music fans. Furthermore, the use of NFTs in the ticketing process enables the implementation of innovative features such as personalized and interactive festival experiences.
As per Bloomberg Kraken, crypto exchange based out of Abu Dhabi UAE has closed its office while Chainalysis lays off 4.8 percent of its global workforce, but continues to hire in the MENA region.
Kraken has closed its third office in less than a year. The first one was its headquarters in San Francisco, then Japan and now UAE.
Kraken had received a full license to operate in the UAE in April 2022. With these closures have come layoffs. Kraken announced back in November 2022 that it would be laying off 30 percent of its workforce, equivalent to 1,100 employees.
As per Bloomberg, Kraken laid off the majority of its team in the MENA region, a total of 8 people. Benjamin Ampen, managing director for the region, will stay with the firm. On the Abu Dhabi market registry, Kraken is no longer listed as an active exchange.
In addition the exchange has suspended support for transactions in the AED, but clients in the region will still be able to use other products and services. That doesn’t require a local license, the spokesperson said.
In parallel, Chainalysis which last year had hinted to opening an office in the UAE hiring many employees as a prelude, also lays off part of its workforce globally but not in the UAE nor in the MENA region. Actually while Chainalysis is laying off about 44 of its 900 employees, 4.8% of its workforce, it is continuing to hire for its operational expansion in the MENA region.
Sources close to Chainalysis within the UAE told LaraontheBlock that Chainalysis are actually hiring in the MENA region given the growth of crypto in countries such as Morocco with the potential to see KSA and Qatar on boarded into the crypto ecosystem in the future.
In an official statement, Chainalysis confirmed that it did not open its office in the UAE yet. It also stated with regards to the layoffs, “Chainalysis announced reorganization primarily impacting our go-to-market team – in order to meet new challenges and opportunities in the market. As a part of this reorg, some folks will have new roles, responsibilities, and reporting lines. Unfortunately we will also part ways with some incredibly talented people within our team. Chainalysis is well capitalized and will continue to hire and build out teams aligned with our refocused strategy in 2023.”
In July 2022, The UAE’s Ministry of Artificial Intelligence, Digital Economy and Remote Work Applications signed a preliminary agreement with blockchain data platform Chainalysis to provide virtual training programs for the country’s government entities.
So while some crypto entities close their offices and lay off employees in the MENA region, others continue to hire because the MENA region is a crypto growth market! So is it really the fault of the crypto winter or is it the fault of internal organizational issues and maybe even slow crypto regulation?
Whatever the case while we say goodbye to Kraken, we welcome Chainalysis and many others to come!
UAE Abu Dhabi University (ADU) signed a Memorandum of Understanding (MoU) with 5ire, a fifth generation blockchain ecosystem, to strengthen blockchain education, research and entrepreneurship. both parties will identify and support compelling projects on blockchain technology, with a specific focus on sustainability and accessibility.
As part of its commitment to expand the course offerings, ADU will work closely with 5ire to build a comprehensive framework that will provide educational opportunities for students, including courses and workshops focused on blockchain technology and its applications. In addition, 5ire will provide financial sponsorship for ADU’s UAE national students, who have met the criteria and are interested in obtaining professional certifications or pursuing degrees focused on blockchain courses. The criteria include but are not limited to academic performance, financial need and demonstrated interest in blockchain technology.
Furthermore, the partnership will focus on providing resources to support students and researchers that are interested in developing and commercializing projects based on blockchain technology. ADU and 5ire will work on a business plan to launch a blockchain academy with a profit-sharing model to offer professional certifications accepted within the UAE and throughout the region.
The parties will organize a hackathon hosted at ADU for both school and university students, as well as offering hands-on training and mentorship to the hackathon participants. A training program will also be arranged to ensure that they have the necessary skills and knowledge to advance and commercialize projects focused on 5ire’s blockchain technology.
5ire will offer ADU faculty and staff members comprehensive training and a “train-the-trainer” certificate program, to enable them to effectively support future training efforts and integrate 5ire technology into the curriculum for undergraduate and post-graduate programs. The University students and faculty will also be provided with access to both 5ire’s software and hardware technology and curriculum for teaching and research purposes.
Prof. Ghassan Aouad, Chancellor of Abu Dhabi University (ADU), said: “We are thrilled to be partnering with 5ire to further advance our programs and offer our students a well-rounded technological experience that builds on their skillset required for the career market. This collaboration aligns with our mission to continuously develop our programs and offerings to empower our students to grow, succeed and prepare them for their future careers and leadership roles in their respective fields. At ADU, we strive to be up to date with the latest advancements across all sectors, we believe that blockchain technology has the potential to transform a wide range of industries and we are delighted to be at the forefront of this transformation.”
Pratik Gauri, Co-Founder and CEO of 5ire, said: “We are delighted to be working with Abu Dhabi University (ADU) to advance blockchain education, research and entrepreneurship in the UAE. Our technology is designed to address the problem of low blockchain adoption due to sustainability and accessibility challenges. By partnering with ADU, we will be able to provide students and researchers with the necessary skills and knowledge to develop and commercialize projects that can have a positive impact on society and the environment.”
ADU and 5ire will work-hand-in-hand to explore the potential uses and benefits of 5ire’s blockchain technology. In addition to establishing collaborations with companies and organizations in the region that are working on related projects and could benefit from 5ire’s technology. The collaboration will also yield the development of case studies presenting the application of 5ire technology in areas such as sustainability, supply chain and logistics.
Recently a press release came out discussing the launch of the Gulf Crypto bank which is espoused to be an integrated banking system for both fiat currencies and digital currencies.
As per the release users can withdraw, deposit, swap, do external and internal transfers immediately, securely and with minimal fees. Users will also be provided with a visa or mastercard that can be used at any ATM or online. Another noteworthy feature is the ability to withdraw crypto assets to any external wallet by creating a wallet inside your bank account. The Bank will also offer personal and corporate loans based on the Islamic laws.
They state that they are participating in the Fintech Crypto Summit in Bahrain as a diamond sponsor and are seeking investment for their coin, GulfCoin. The only summit being mentioned in Bahrain on February 15th is the Fintech and Crypto Summit. Their website doesn’t mention any speakers or sponsors and the event is supposedly only two weeks away!
Looking further into their whitepaper they claim that they are licensed and registered in England, Georgia, Estonia, UAE and Singapore! As they state “Indeed, it is an actual bank project with all the licenses and capital officially registered in England. The Gulf Crypto Bank is registered and licensed in all countries that allow the exchange and circulation of cryptocurrency, such as Georgia, Estonia, the United Arab Emirates, and Singapore.”
Red signs, first they are definitely not regulated in the UAE because the UAE has not regulated crypto banks as of yet! Secondly in their whitepaper and on their website there are no mentioning of who the team members are which is a big red flag! Finally they don’t have any social media channels! But most importantly where are their financials for this project!?
There is another GulfCoin project that also seems iffy. The CEO of that project is Hani Asfar. Yet even this project has the last dated press release as March 2022. In an interview he notes that GulfCoin is being used in 500 locations in the UAE! As stated in the article Asfar says, “Speaking specifically of Dubai, there will be more than 500 locations where token holders can spend Gulf Coin. Plans are underway to make Gulf Coin available in other countries very soon.”
Always do your research because scammers are everywhere! Just because they can pay for a press release or a story on a media outlet does not mean they are legit. Plus just because they say they are licensed in certain countries does not mean they are. Check the licensing authorities ask around.
UAE based International Financial Centre (DIFC), has launched its “DIFC Metaverse Platform” and the first phase is a metaverse accelerator program where it will choose 50 metaverse projects to help develop the metaverse sector in UAE.
The platform is part of a comprehensive strategy being developed by Dubai International Financial Centre (DIFC) to accelerate Dubai’s status as a global metaverse leader.
The DIFC Metaverse Platform is aligned with the Dubai Metaverse Strategy, which aims to add $4 billion to Dubai’s GDP, support 40,000 virtual jobs by 2030 and attract 1,000 companies specialized in blockchain and metaverse technologies. The platform also supports the objective of the recently launched Dubai Economic Agenda D33 to generate economic value worth AED100 billion from digital transformation annually.
The Metaverse Accelerator Program, the first initiative to be launched under the umbrella of the platform, will start accepting applications this month. In the coming years, the program seeks to attract more than 500 applications, identify 50 of the most promising graduates from the program and stimulate investment opportunities that will help the sector grow.
The Metaverse Accelerator Program will run over a period of six months, during which the cohort of start-ups will be introduced to training and workshops to upskill and reskill themselves in both technical and intrapersonal aspects of the metaverse. The program also aims to facilitate partnerships between start-ups and corporates to create proofs-of-concept and new metaverse solutions.
The program demonstrates DIFC’s commitment to support innovative metaverse start-ups by introducing them to the region’s largest players. The program also helps them explore partnerships, gain exposure to investors, access a regulatory sandbox and obtain marketing support.
His Excellency Omar Sultan Al Olama, Minister of State for Artificial Intelligence, Digital Economy and Remote Work Applications, Chairman of the Dubai Chamber of Digital Economy, Vice Chairman of the Dubai Higher Committee for Future Technology and Digital Economy, stated that the UAE adopts advanced technologies in its aim to keep pace with global changes, reflecting the directives of its leadership, in transforming the country and Dubai to become a leading hub for utilizing the best technology and developing capabilities.
H.E Al Olama added that this Metaverse platform is the first in a series of initiatives that aim to strengthen Dubai’s position as a global platform for the latest digital trends and accelerate the pace to achieve the objectives of the Dubai Metaverse Strategy.
Arif Amiri, CEO of DIFC Authority, said: “The Dubai government has shown great foresight in introducing a metaverse strategy that has the objective of making the emirate a global hub for technology and innovation. The development of the integrated DIFC Metaverse Platform will accelerate the achievements of Dubai’s aspirations in this sector. The initiative is a natural extension of our Innovation Hub proposition that has shaped the technology and innovation landscape in the Middle East, Africa and South Asia region.”
The DIFC Metaverse Platform includes three key initiatives. The first is an accelerator program with a dedicated physical studio for metaverse technology that will promote the development of a creator community and venture building. The platform will also address the metaverse policy development and legislation on open data, digital identity and company law frameworks in the metaverse. Further, the initiative will foster the development of a metaverse community that will explore ways to enhance the metaverse experience for customers.
Bahrain real estate developer Bin Faqeeh Real estate Investment Company announced that clients can buy apartments or houses using cryptocurrencies. Bin Faqeeh will be offering crypto payment services with Bahrain financial service provider EazyPay POS terminals.
Binance Co-Founder and CEO, Changpeng Zhao tweeted about Bin Faqeeh Real Estate Company accepting Crypto Payments via Binance Pay through Eazy Financial Services. EazyPay and Binance had signed a partnership in Q4 2022 to offer crypto payment services to EazyPay’s 5000 plus POS terminals.
Prior to this Bahrain CoinMENA crypto broker partnered with Carlton Real Estate, a Bahrain-based real estate agency, allowing clients to buy real estate property using crypto assets. Under the partnership, Carlton real estate would accept stablecoins like USDT and USDC.
The UAE as well has been offering clients the ability to pay for real estate in cryptocurrencies. In May 2022 UAE Properties developer Nakheel and Abu Dhabi based crypto exchange Hayvn partnered to offer crypto payment options for Nakheel clients. Nakheel clients are able to pay for their rent, service fee, and real estate purchases in cryptocurrency.
Other real estate developers in UAE also are offering crypto payment services, such as DAMAC, SAMENA developers and more. In March UAE based Real estate and industry experts estimated that crypto payments for Dubai real estate increased by 300 percent in 2022. Majority of buyers are using stablecoins such as Tether, USDT as well as Bitcoin and Ethereum.
Even UAE Property Consultancy firm, Your place partnered with Utrust, a cryptocurrency payment solution designed to modernize the finance and payments industry offers clients the ability to pay for properties in Dubai UAE using cryptocurrencies. Recently Utrust is now enabling crypto payments for luxury hotels in the UAE. BM Hotels & Resorts luxury hotel chain is accepting digital currencies using Utrust.
In an SEC Filing dated January 27th 2022, USA based Marathon digital Holdings, a digital asset mining entity, announced that it had entered into a shareholder’s agreement with FSI ( FS Innovation), the BTC mining subsidiary of UAE ADQ a sovereign fund, to form an Abu Dhabi, ( ADGM (Abu Dhabi Global Markets) based company.
As per the filing, the joint UAE ADGM based company will establish and operate one or more mining facilities for digital assets. The business entity will be in the field of digital asset/crypto mining.
The initial phase will consist of two digital asset mining sites comprising 250 MW (megawatts) in Abu Dhabi UAE.
Marathon Holdings will own 20% of the joint company in UAE only. The cost of the project will be $406 million.
This new comes after UAE based Phoenix Technology which embarked on establishing a $2 billion crypto-mining farm in the UAE, announced in November 2022, that the biggest crypto mining project in the region will be completed in the next six months, Q2 of 2023. The press release at the time noted, “The project will be finalized within six months, giving the region a taste of technological advancement and development.”
In February 2022 Phoenix had announced it was part of the group of entities developing the UAE crypto mining farm in an interview with well renowned crypto and Blockchain lawyer Irena Heaver.
Crypto mining is an integral part of the development of crypto economies, and the MENA region is opening up to exactly these economies. Already the GCC and MENA region has become an attractive destination for crypto mining.
During Binance Week 2022, Khalifa AlJaziri, AlShehhi, Commercial Affairs Regulatory Sector Projects advisor at the Ministry of Economy in UAE, claimed that the Dubai World Trade Center Authority (DWTCA) would be legislating the crypto mining sector. He stated, “We are setting the guidelines and rules needed to regulate crypto mining within this crypto framework.
The UAE is not the only country that has shown interest in crypto mining. Oman Investment Authority (OIA) took part in a $350mn equity round in Crusoe Energy Systems. The US firm helps oil and gas producers cut flaring by using stranded natural gas to power cryptocurrency mining. Crusoe systems set up operations in Oman as well.
In a recent survey entitled “MENA Investor Survey 2022-2023 for crypto Blockchain sector” carried out by laraontheblock with 83 MENA venture capitalists, fund managers, and family offices, 50% of those surveyed stated they will be allocating more funds to blockchain and crypto projects and entities in 2023. 19% of those surveyed stated in 2022 they had invested more than 50% of allocated capital and funds into crypto and Blockchain projects.
The findings of the “MENA Investor Survey 2022-2023 for crypto Blockchain sector” sheds light on the different areas of interest for MENA investors which will give startups and entities a better view on whom and where capital will be heading by investors in the MENA region.
This comes as cryptocurrency adoption has skyrocketed in the Middle East and North Africa (MENA) region. According to a survey by blockchain analytics platform Chainalysis, MENA countries have the fastest-growing cryptocurrency industry in the world, accounting for 9.2% of global digital currency transactions from July 2021 to June 2022.
Vast Majority of MENA VCs invested in crypto and Blockchain in 2022
75% of survey respondents confirmed that they invested in crypto and blockchain entities in 2022, while only 25% stated they hadn’t. The MENA region has become the center for crypto trading, investing and regulation. The UAE led crypto regulation in 2022 and was the first country in the region to launch a blockchain strategy back in 2017.
The stance taken by MENA investors in the survey is in line with global figures. In 2022, despite the slowdown in crypto VC funding, it exceeded the figure for 2021. Cointelegraph Research’s VC Database showed that a total of $36.1 billion was raised in 2022. This is in contrast to the $30.3 billion worth of funding in 2021.
Crypto projects globally attracted $19.9 billion in venture capital (VC) investments in the first nine months of 2022, 41% higher than a year ago, according to Pitchbook data.
Crypto and Blockchain entities are the Future
54% of respondents replied that they invested in crypto and Blockchain entities because it is the future, while 42% stated it was because these technologies solve real business problems. Only 18% believed that it was because while risky the return on investment was high. ( note that more than one response for some respondents
The MENA region witnessed sizable investments in crypto and Blockchain entities in 2022. For example crypto exchange RAIN received $110 million in investments and included investors from MENA such as MEVP. BitOasis also raised $30 million with UAE based Wamda Capital and others.
Significant developments in the UAE such as the launch of Dubai’s Virtual Assets Regulatory Authority (VARA), and the announcement of the Dubai metaverse strategy, which aims to attract more than 1,000 blockchain and metaverse companies as well as support more than 40,000 virtual jobs by 2030 has also played a role in enticing investors towards blockchain, crypto and metaverse as did the launch of Crypto Oasis ecosystem and the DMCC crypto center bringing in 1400 crypto and Blockchain entities to the
19% of surveyed spent over 50% of their capital on Blockchain and crypto entities
Interestingly when asked what percentage of capital or funds available in 2022 was invested in crypto and blockchain, a whopping 19 percent stated that they had invested more than 50 percent of funds into crypto and Blockchain entities. While the majority 33% invested between 5-15% of their capital into crypto and blockchain entities.
27% invested between 1-5 percent of their capital into crypto and Blockchain, while 21% invested less than 1%.
While the percentages maybe small compared to other areas, Nickel Digital Asset Management noted that UAE institutional investors, family offices, and wealth managers plan to increase their exposure to crypto dramatically by 2023. And while sovereign funds do not yet see digital assets as investable with just 7% of global sovereign investors have any exposure to digital assets through investments in blockchain companies, this is changing.
In May 2022, J.P. Morgan’s global investment strategy outlook elevated digital assets as the preferred alternative asset class alongside hedge funds for 2022. For the first time in history digital assets displaced other alternative strategies. In the report it is noted that digital assets are expected to offer the greatest potential for generating alpha and hedge funds expect as much as 10 percent of their strategy to include crypto.
A PWC Global Crypto Hedge Fund report in August 2022, found that more than a third of traditional hedge funds now invest in digital assets, this was double the figure of 2021
Global crypto leader at PWC left his role to set up a $75 million digital assets fund Nine Blocks Capital in Dubai UAE. Henri Arsalanian, founder noted that it was Dubai’s crypto openness that influenced his decision.
Majority of MENA Investors invested in Blockchain infrastructure
MENA investors surveyed were asked where they allocated funds in 2022. 64% of respondents stated that capital was invested in Blockchain infrastructure projects. Following Blockchain infrastructure was DeFi. 38% of respondents stated they allocated funds to DeFi projects. Equally 33-36% invested in metaverse and crypto assets.
In addition 22% replied they invested in Non-Fungible tokens or NFT projects, while 17-18% of respondents stated investments went into e-gaming, tokenization projects, crypto mining and blockchain crypto payments.
Only 8% stated they invested in decentralized messaging and social media platforms.
The findings of the survey fall much in line with Cointelegraph’ s recent blockchain funding VC report which found that blockchain Infrastructure projects took half the pot of investments in November 2022. While the Web3 sector saw the most deals closed. The global blockchain infrastructure sector secured $483.9 million in venture capital in 2022.
According to Galaxy Ventures, Crypto and Blockchain sector saw $5.5 billion of venture capital invested in Q3 2022 through 518 deals. Despite the QoQ (quarter on quarter) decrease, the $5.5 billion invested in Q3 is $2 billion greater than the 7-year average of $3.1 billion and more than $2 billion higher than the 2020 peak.
MENA investors will invest more in 2023
51% of those surveyed stated they would allocate more funds to blockchain and crypto entities in 2023. Only 15% replied they would not. In addition 33% were unsure. This means that potentially 84% of those surveyed could be investing more in blockchain and crypto in 2023.
Already investment companies such as TradeDog Group, the parent company of TD VC, have launched new funds. TradeDg Group launched their $100 Million Web3 blockchain special situation fund. The fund will re-structure and invest in projects with good products and businesses but struggling token markets.
Even UAE Cypher Capital VC announced in December 2022 the launch of a new $200 million fund which will focus on infrastructure and middleware investments in Web3. At the time they had invested in Rekt Studios and Fenix Games, while UAE Shorooq Partners also announced in March 2022 that they would be investing $150 million in Web3 startups. Many other investors across the MENA region have been following suite including Mubadala and G42 both based out of UAE.
Global players such as Goldman Sachs plans to spend tens of millions of dollars to buy or invest in crypto companies after the collapse of the FTX exchange hit valuations and dampened investor interest. Goldman has invested in 11 digital asset companies that provide services such as compliance, cryptocurrency data and blockchain management.
MENA investors view Blockchain infrastructure as biggest growth sector in 2023
According to 29% of survey respondents, Blockchain infrastructure projects will witness the biggest growth in 2023. Data gathered by BuyShares.co.nz, found that the global spending on blockchain solutions is expected to surge by 235% and reach $14.4bn by 2023.
Following, 21% view metaverse projects as high growth sector technology. This is in line with findings from Grand View Research, which states the global metaverse market is forecast to grow at a compound annual growth rate (CAGR) of 39.4% from 2022 to 2030.
Meanwhile 18% of those surveyed think DeFi will witness strong growth. DeFi has been the largest market cap activity within Web3, with a peak total value locked (TVL) of over $175 billion in 2021 shrinking to $39 billion in 2022. Yet Digital asset research firm Reflexivity Research in its recently published 2022 Annual Year in Review / Forward Outlook 2023 believes that given the blow to trust in CEXs, investors will be drawn to decentralized alternatives. The report believes DeFi TVL could make its way back to $75 billion or $100 billion.
12% of those surveyed view blockchain and crypto payments as one of the growth sectors for 2023. Cross-border payments and settlements are considered the most prominent blockchain use case. According to the IDC Worldwide Blockchain Spending Guide, Blockchain enabled cross border payments accounted for 15.9% of the $4.67-billion blockchain market in 2021. Juniper Research estimates that B2B cross-border payments on blockchain will account for 11% of the total B2B international payments by 2024.
When it comes to investment in tokenization projects 8% of those surveyed believe that tokenization sector will be a growth sector in 2023. 5% of those surveyed believe NFT sector will grow in 2023, only 3% of those surveyed believe crypto mining will be a growth sector.
Conclusion
In conclusion from the responses of 83 VCs, investment funds, across the MENA region that included names such as Oman Investment Authority, Equinox, Synaptech Capital, CypherCapital, Helion Ventures, Carter Capital, AlIImtiaz Investment Group, True Global Ventures, Roshan Investments, Crypto Oasis, Ghaf Capital Investments, Vault Investments, and many more, the reflection is a positive outlook when it comes to crypto and Blockchain and a growing interest in investing in projects. So while 2022 might have been one of the toughest years on crypto and Blockchain, it has not killed the appetite of investors in MENA!
As per an article in Bloomberg, Bitcoin and Ethereum options exchange Deribit, is setting to enter Dubai UAE in Q3 2023, as UAE regulators provide the regulatory environment that will allow them to operate in the country.
As per the report, the exchange plans to open a Dubai office staffed by a team of 10 people composed of both local hires and the company’s existing talent, Deribit Chief Legal, Compliance and Regulatory Officer David Dohmen told Bloomberg. The move could take place as soon as this summer.
The Panamanian exchange is also planning expansion into Brazil, the U.K. and Singapore, said Dohmen.
The total volume of bitcoin options on Deribit rose to $4.25 billion during the week of January 15th 2023, the highest since second week of November 2022.
That’s a 375% rise from the low of $895 million registered in the final week of December, according to data source provider Amberdata. Deribit is the world’s largest crypto options exchange, accounting for nearly 90% of the global trading volume and open interest.
The impressive recovery in volume has mainly been driven by an uptick in demand for call options or bullish bets offering protection against price rallies.
“The share of calls relative to put volume is currently at more than 66%, its highest level in over a year,” analysts at Kaiko Research said in a note to clients on Monday. “This is yet another indicator that sentiment has improved in January.”
The dollar value locked in the number of open options contracts, also known as open interest, has increased to $5.92 billion, the highest since Oct. 27. Bitcoin’s (BTC) price has rallied by nearly 40% this month.
Options are derivative contracts that offer the purchaser the right but not the obligation to buy or sell the underlying asset at a predetermined price on or before a specific date. The call option gives the right to buy, while put options offer the right to sell.
Options are widely used by both institutions and individual investors and often provide an accurate picture of sentiment in the broader market.
