Tencent

Tencent Cloud signs multiple collaboration agreements with blockchain firms

The Chinese internet giant is launching new Web 3.0 solutions including a Metaverse-in-a-Box product and blockchain API services.

Tencent Cloud has concluded multiple agreements with blockchain firms to support the active development of the Web3 ecosystem, the cloud computing branch of Chinese internet giant Tencent announced in a Feb. 22 press release.

First, Tencent Cloud signed a memorandum of cooperation with decentralized blockchain infrastructure provider Ankr to jointly develop a series of blockchain API services for remote procedure call nodes. The new service will be deployed on Tencent Cloud’s infrastructure and will provide connections to mainstream blockchains building on Web 3.0 games and applications. 

Second, Tencent Cloud said that it reached strategic cooperation agreements with three other blockchain partners, Avalanche, Scroll, and Sui, to accelerate the adoption of Web3 applications. The cooperation between Tencent Cloud and Avalanche will provide developers with efficient and fast node settings. With the help of Tencent Cloud’s infrastructure footprint, the cooperation between Tencent Cloud and Scroll will assist developers with building practical projects on Scroll and expand access to non-blockchain enterprises.

Finally, the cooperation between Tencent Cloud and Sui will provide developers with cloud game development tools and professional support to improve the on-chain game experiences.

The company also introduced a new Tencent Cloud metaverse-in-a-box product for Web3 developers that fully integrates a wide range of infrastructure, high-performance products, out-of-the-box software development kits, and low-code solutions for use in games and media entertainment. Poshu Yeung, a senior vice president at Tencent Cloud International, stated:

“With a transparent digital future ahead, Tencent cloud is prepared to, through its accumulated experience in the field of games, audio, and video, provide strong technical support for Web3. Tencent Cloud will cooperate with industry partners to offer more immersive experiences and cultivate the cultivate Web3 ecosystem.”

Tencent’s upcoming metaverse-in-a-box product. Source: Tencent Cloud

Tencent receives patent for blockchain-based missing persons poster

The simple patent idea took three years to be granted regulatory clearance.

According to local news outlet 36kr.com, Chinese technology conglomerate Tencent recently received a novel patent for a blockchain-based missing person’s poster. The patent took nearly three years to be awarded from the date of its first submission in December 2019.

The patent consists of a data generation request upon user submission that a person has gone missing. The proposal is then unveiled publicly on the blockchain for verification. Once a consensus has been reached regarding the request, it is then stored in the public ledger and forwarded to nodes for broadcasting to a wider audience. Tencent said in the patent application that the design seeks to improve the efficiency of looking for missing persons.

Tencent has been an early experimenter of blockchain technology among big tech firms, especially regarding the exploration of possibilities for integration with payment technology, although its efforts have been impeded somewhat by China’s tough regulation surrounding crypto. Yet, its “FISCO BCOS” coinless blockchain developed jointly with Chinese telecom giant Huawei in 2018 for building decentralized applications remains active until this day. 

In early July, Tencent shut down one of its nonfungible tokens platforms after the Chinese government clarified that it does not allow users to conduct private transactions post-purchase, along with declining sales.

China is currently embarking on a centralized approach to blockchain technology, with policy significantly favoring its digital-yuan (e-CNY) central bank digital currency instead of the digital tokens developed by private firms. Last week, the country rolled out its first-ever e-CNY-enabled Social Security card, which allows welfare to be deposited directly into the recipient’s account in the digital yuan and used for spending. 

Bitcoin traders anticipate new yearly lows after BTC’s $25K rejection — Data disagrees

Should traders expect further downside after BTC failed to hold above $25,000?

Bitcoin (BTC) showed weakness on Aug. 15, posting a 5% loss after testing the $25,000 resistance. The move liquidated over $150 million worth of leverage long positions and has led some traders to predict a move back toward the yearly low in the $18,000 range.

The price action coincided with worsening conditions for tech stocks, including Chinese giant Tencent, which is expected to post its first-ever quarterly revenue decline. According to analysts, the Chinese gaming and social media conglomerate is expected to post quarterly earnings around $19.5 billion, which is 4% lower than the previous year.

Moreover, on Aug. 16, Citi investment bank slashed Zoom Video Communications (ZM) recommendation to sell, adding that the stock is “high risk.” Analysts explained that a challenging post-COVID dynamic, plus additional competition from Microsoft Teams, potentially caused a 20% drop in ZM shares.

The overall bearish sentiment continues to plague crypto investors, a movement described by influencer and trader @ChrisBTCbull, who mentioned that a simple rejection at $25,000 caused traders to post sub-$17,000 targets.

Margin traders remain bullish despite the $25,000 rejection

Monitoring margin and options markets provides excellent insights into understanding how professional traders are positioned. For instance, a negative read would happen if whales and market makers reduced their exposure as BTC approached the $25,000 resistance.

Margin trading allows investors to borrow cryptocurrency to leverage their trading position, increasing returns. For example, one can increase exposure by borrowing stablecoins to buy an additional Bitcoin position.

On the other hand, Bitcoin borrowers can only short the cryptocurrency as they bet on its price declining. Unlike futures contracts, the balance between margin longs and shorts isn’t always matched.

OKX USDT/BTC margin lending ratio. Source: OKX

The above chart shows that OKX traders’ margin lending ratio has remained relatively stable near 14 while Bitcoin price jumped 6.3% in two days only to be rejected after hitting the $25,200 resistance.

Furthermore, the metric remains bullish by favoring stablecoin borrowing by a wide margin. As a result, pro traders have been holding their bullish positions, and no additional bearish margin trades emerged as Bitcoin retraced 5.5% on Aug. 16.

Related: Bitcoin miners hodl 27% less BTC after 3 months of major selling

Option markets hold a neutral stance

There’s uncertainty about whether Bitcoin will make another run toward the $25,000 resistance but the 25% delta skew is a telling sign whenever arbitrage desks and market makers overcharge for upside or downside protection.

The indicator compares similar call (buy) and put (sell) options and will turn positive when fear is prevalent because the protective put options premium is higher than risk call options.

The skew indicator will move above 10% if traders fear a Bitcoin price crash. On the other hand, generalized excitement reflects a negative 10% skew.

Bitcoin 30-day options show 25% delta skew: Source: Laevitas.ch

As displayed above, the 25% delta skew has barely moved since Aug. 11, oscillating between 5% and 7% most of the time. This range is considered neutral because options traders are pricing a similar risk of unexpected pumps or dumps.

If pro traders entered a “fear” sentiment, this metric would have moved above 10%, reflecting a lack of interest in offering downside protection.

Despite the neutral Bitcoin options indicator, the OKX margin lending rate showed whales and market makers maintaining their bullish bets after a 5.5% BTC price decline on Aug. 16. For this reason, investors should expect another retest of the $25,000 resistance as soon as the global macroeconomic conditions improve.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Tencent shuts down NFT platform as gov policy makes it impossible to thrive

While NFTs are not banned in China like cryptocurrencies, the government has warned against fraud risks associated with the nascent sector.

China’s internet giant Tencent has reportedly shut down one of the two nonfungible token (NFT) platforms owing to declining sales aided by the regressive monetary policies of the Chinese government.

Tencent shut down one of its NFT platforms on July 1, while the other one is struggling to remain afloat. A report from a local daily indicates that the wind-down process for the same began in May. The tech giant transferred key executives responsible for managing the NFT platform in the last week of May and completely removed the digital collectible section from its Tencent News app by the first week of July.

The primary reason for the slow down in sales and ultimate closure of Tencent’s digital collectible platform is being blamed on flawed government policy that prohibits buyers from selling their NFTs in private transactions after purchase, which makes these NFTS not so lucrative. The lack of a secondary market kills any chance of making a profit on these digital collectibles.

NFTs gained a lot of traction in China earlier this year, with several tech giants such as Tencent and Alibaba showing interest and even launching their own digital collectible platforms. However, with the rise in popularity, it also got attention from the government, which has warned investors to be wary of frauds associated with these NFTs.

In March, several Chinese social media giants such as Weibo and WeChat started removing accounts associated with digital collectible platforms fearing a government crackdown. In June, Alibaba launched an NFT platform but soon deleted all mentions of it from the internet.

Related: Chinese court rules marketplace guilty of minting NFTs from stolen artwork

While the Chinese government is known for its anti-crypto stance where it has banned all types of cryptocurrency transactions in the country, there is no such outright ban against NFTs. However, big businesses and tech giants still dwell with caution, fearing strict actions from the Beijing government.

Wu Blockchain, a China-focused Twitter handle, told Cointelegraph that citizens still sell their NFTs in the underground secondary markets, but large tech firms such as Alibaba and Tencent can’t afford to do so.

Despite a ban on crypto trading, mining and subsequent warning against NFTs, Chinese traders have always found a way to bypass strict regulatory crackdowns. For example, after the crypto mining ban in the country last year, China’s share of Bitcoin (BTC) miners dropped to zero from 60%. However, recent data suggest that China has climbed back to the second spot again, indicating miners found a way despite strict measures taken by the government. Similarly, the number of NFT platforms in the country grew five times in four months.