HashKey Group, the parent company of Hong Kong cryptocurrency exchange HashKey Exchange, announced today at the Hong Kong Web3 Carnival event that it will launch the Ethereum Layer 2 network, “HashKey Chain”.
According to officials, HashKey Chain will adopt ZK zero-knowledge proof technology, providing users with a low-cost, efficient, and developer-friendly on-chain solution, while incentivizing contributors to the ecosystem through the platform token $HSK.
Following the footsteps of Coinbase’s Base Chain and OKX’s OKB Chain, HashKey Exchange has become another exchange that develops its own public chain. It is evident that issuing their own public chain has become a popular choice for various exchanges.
Token Economics of $HSK
It is understood that HashKey plans to launch the platform token $HSK in mid-2024. The initial empowerment includes exchange fees, exploration and empowerment of the RWA market, ecological business rights, and other diverse uses. Currently, these are also expected to become important application scenarios for HSK.
According to the whitepaper, the total supply of HSK is 1 billion tokens, and the token distribution is as follows:
– 650 million tokens for ecological growth distribution
– 300 million tokens for team distribution
– 50 million tokens for reserve distribution
HSK’s token distribution with a total supply of 1 billion tokens
Just yesterday (8th), HashKey Group announced that it has obtained the “Comprehensive License for Digital Asset Investor Protection System” in Bermuda and officially launched the HashKey Global international trading platform.
Weng Xiaoxi, the Chief Operating Officer, stated that HashKey Exchange has approximately 170,000 customers, and the potential customer base that is interested but does not meet the requirements is four times that of existing customers. This potential cannot be realized through Hong Kong operations, so the establishment of the HashKey Global platform allows direct trading with stablecoins such as USDT and USDC.
The two platforms under HashKey Group have different positioning:
– HashKey Exchange, licensed in Hong Kong, focuses on the Hong Kong and surrounding markets, as well as institutional clients.
– HashKey Global serves retail investors who cannot enter the Hong Kong market, but it excludes countries such as mainland China, Hong Kong, the United States, and countries that explicitly prohibit operating virtual asset platforms. The main customer sources are expected to be overseas Chinese and users from Southeast Asian countries.
Weng Xiaoxi stated that the Hong Kong platform adopts the highest standards for user protection, while the global platform can experiment with innovative features. The aim is to summarize the experience and then promote the development of Hong Kong.
Weng Xiaoxi mentioned that at this stage, they hope that the Securities and Futures Commission will approve the trading of futures. However, they believe that the Hong Kong Securities and Futures Commission considers the risks to be significant. But assuming they have tested on the global platform for half a year to a year, with low leverage such as 2 or 3 times for Bitcoin and Ethereum, and report the relevant data and experience to Hong Kong, this move is expected to promote regulatory development in Hong Kong.
Looking ahead, HashKey will continue to carry out exchange operations in a licensed manner. Weng Xiaoxi revealed that they are also in communication for two additional licenses. In the next five years, they will focus on Hong Kong and the Asia-Pacific region, aiming to obtain licenses in different regions globally and establish interactive relationships by summarizing operational experiences in various regions.
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