A ‘crypto spring’? Asia’s digital-asset champions hold out hope for a rebound

Asian cryptocurrency firms that survived last year’s industry meltdown are cautiously plotting a recovery from what was dubbed ‘crypto winter’

Many insist digital currencies are here to stay, with increased regulation – even as some academics warn that ‘crypto isn’t the future’

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Observers warn those still tied to notoriously volatile digital assets that the worst may be yet to come, with more businesses and exchanges likely to crumble in the months ahead, extending the prolonged and bitter crypto winter. Photo: Reuters

Published: 8:30am, 28 Jan 2023Updated: 2:05pm, 30 Jan 2023

For Asia’s doyens of digital assets, the quandary is as clear as it is daunting: how to restore faith in cryptocurrencies and spin-offs like non-fungible tokens (NFTs) as their value tanks, while also convincing investors a new financial order is better than the previous unequal, corrupt system.

Yusho Liu, the co-founder of Singapore cryptocurrency exchange Coinhako, a leading trading platform in the city, says the game is far from up for digital coins despite the crumbling value of bitcoin following the bankruptcy of FTX, the world’s third-largest cryptocurrency exchange that had more than 1 million users.

“We acknowledge the waning confidence in the crypto space, but our outlook for 2023 remains bullish,” Liu told This Week in Asia.

Liu pitches a story of optimism – not unexpected for someone whose firm has a trading volume of US$7 billion, more than 380,000 customers, and close to 150 staff.

But he is not alone. While the world keenly watches the free fall of cryptocurrencies, the firms that have survived are cautiously plotting for a recovery.

At Singapore’s Gillman Barracks – a cluster of international art galleries in the southern part of the island state – a recent exhibition sought to reaffirm the value of NFTs.

A ‘crypto spring’? Asia’s digital-asset champions hold out hope for a rebound

Asian cryptocurrency firms that survived last year’s industry meltdown are cautiously plotting a recovery from what was dubbed ‘crypto winter’ Many insist digital currencies are here to stay, with increased regulation – even as some academics warn that ‘crypto isn’t the future’

Asian cryptocurrency firms that survived last year’s industry meltdown are cautiously plotting a recovery from what was dubbed ‘crypto winter’

Many insist digital currencies are here to stay, with increased regulation – even as some academics warn that ‘crypto isn’t the future’