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WazirX

Our weekly roundup of news from Asia curates the industrys most important developments.
<h2 class="wp-block-heading" id="can-the-metaverse-solve-japans-hikikomori-problem">Can the metaverse solve Japans hikikomori problem?</h2>
Research and consulting firm <a href="https://www.yuri-group.co.jp/gxxd" target="_blank" rel="nofollow">Yuri Group</a> estimates that Japan can inject about $10 billion a year into its economy if even 10% of the nations 1.5 million hikikomori re-engage in the workforce via the metaverse.
Hikikomori is a Japanese word for individuals who seek extreme isolation by staying home and withdrawing from social life. Its a complex social problem that has reduced the nations workforce while damaging the mental and physical health of those living reclusive lives.
In 2023, a state survey estimated that 1.5 million people in Japan live as hikikomori. Thats roughly 2% of the working-age population.&nbsp;
The Japanese government is exploring metaverse applications to address <a href="https://cointelegraph.com/news/japan-village-nfts-help-aging-population" target="_blank" rel="nofollow">various social issues</a> like hikikomori, as the communication ministry noted in its <a href="https://www.soumu.go.jp/main_content/000892205.pdf" target="_blank" rel="nofollow">metaverse whitepaper</a>.
But Will Fee, a researcher at Yuri Group, tells Magazine theres not a lot of meat on the proposals bones. Like national-level government pronouncements on all things Web3 in Japan, theres a lot of sizzle and not much steak, with little detail on how these plans might be put into practice on the ground, he says.
There are some local government policies already in place. In mid-2022, Edogawa Ward in Tokyo found that <a href="https://www.asahi.com/ajw/articles/14642030" target="_blank" rel="nofollow">one in 76 </a>of its inhabitants are living as hikikomori. One of the solutions developed by the ward is the <a href="https://translation2.j-server.com/LUCAIEDOGA/ns/tl.cgi/https://www.city.edogawa.tokyo.jp/e091/kenko/fukushikaigo/hikikomori/onlineibasyo.html?SLANG=ja&amp;TLANG=en&amp;XMODE=0&amp;XJSID=0" target="_blank" rel="nofollow">Hikikomori Metaverse Place</a>, though Fee describes the project as fairly underwhelming.
Although the Japanese have coined a term for it, the phenomenon isnt unique to the country. In February, San Mateo County in California declared loneliness a public health crisis. Virtual worlds could at least help ensure shut-ins get some human contact.
<figure class="wp-block-image aligncenter size-full is-resized">
 <img decoding="async" width="731" height="312" src="https://s3.magazine.cointelegraph.com/magazine/wp-content/uploads/2024/08/Hikimori-Japan.jpg" alt="Graphic displays that the hikikomori is not unique to Japan." class="wp-image-34793" style="width: 100%;height:auto" srcset="https://s3.magazine.cointelegraph.com/magazine/wp-content/uploads/2024/08/Hikimori-Japan.jpg 731w, https://s3.magazine.cointelegraph.com/magazine/wp-content/uploads/2024/08/Hikimori-Japan-300x128.jpg 300w" sizes="(max-width: 731px) 100vw, 731px">
 <figcaption class="wp-element-caption">
 Hikikori isn’t just Japan’s problem. (Yuri Group)
 </figcaption>
</figure>
<h2 class="wp-block-heading" id="strong-wazirxs-controversial-55-45-strategy-strong">WazirXs controversial 55/45 strategy </h2>
WazirX <a href="https://cointelegraph.com/news/wazirx-socialized-loss-strategy-230m-hack" target="_blank" rel="nofollow">announced</a> a socialized loss strategy on July 27 in response to the <a href="https://cointelegraph.com/news/indian-crypto-exchange-wazirx-hack-235m" target="_blank" rel="nofollow">$235 million hack</a> it suffered on July 18, which equaled 45% of user funds.
The strategy proposes each customer locks up 45% of their funds while the remaining 55% becomes available, essentially distributing losses among them.
<figure class="wp-block-image alignright size-large is-resized">
 <img decoding="async" width="1024" height="576" src="https://s3.magazine.cointelegraph.com/magazine/wp-content/uploads/2024/08/Nischal-Shetty-1024x576.jpg" alt="Nischal Shetty addresses public backlash in an X video." class="wp-image-34796" style="width: 100%;height:auto" srcset="https://s3.magazine.cointelegraph.com/magazine/wp-content/uploads/2024/08/Nischal-Shetty-1024x576.jpg 1024w, https://s3.magazine.cointelegraph.com/magazine/wp-content/uploads/2024/08/Nischal-Shetty-300x169.jpg 300w, https://s3.magazine.cointelegraph.com/magazine/wp-content/uploads/2024/08/Nischal-Shetty-770x433.jpg 770w, https://s3.magazine.cointelegraph.com/magazine/wp-content/uploads/2024/08/Nischal-Shetty-1536x864.jpg 1536w, https://s3.magazine.cointelegraph.com/magazine/wp-content/uploads/2024/08/Nischal-Shetty.jpg 1920w" sizes="(max-width: 1024px) 100vw, 1024px">
 <figcaption class="wp-element-caption">
 WazirX CEO Nischal Shetty addresses public backlash. (Shetty)
 </figcaption>
</figure>
Investors were given two options based on this strategy.
Option A lets users access 55% of their assets but not withdraw them. In exchange, they are granted priority in the distribution of future recovery funds, if efforts are successful, that is. 
Option B allows users access to 55% of their funds and withdraw them, but falls behind the priority list in recovery distribution compared to those who opt for the first option.
WazirX states it plans to reopen its business after polling users on their preferred options. Customers have an Aug. 3 deadline to respond.
The exchange drew public backlash from its users and even from executives of rival exchanges.&nbsp;
Hate to be saying this, but the way @WazirXIndia is handling this entire situation isnt community first and this IMO wont go down well for them, <a href="https://x.com/smtgpt/status/1817844272064012304" target="_blank" rel="nofollow">said</a> Sumit Gupta, CEO of CoinDCX on X.
Nischal Shetty, the CEO of WazirX, <a href="https://x.com/NischalShetty/status/1817908466033312183" target="_blank" rel="nofollow">responded</a> to criticism on X and stated that the socialized loss strategy was selected as the first option as it is the fastest way to reopen the platform.
The WazirX exploit accounted for the majority of hacking losses in July, which totaled&nbsp;$266 million.
<figure class="wp-block-image alignright size-large is-resized">
 <img decoding="async" width="497" height="1024" src="https://s3.magazine.cointelegraph.com/magazine/wp-content/uploads/2024/08/Binance-Apple-497x1024.jpg" alt="Image shows BInance application on Philippines App Store." class="wp-image-34794" style="width: 100%;height:auto" srcset="https://s3.magazine.cointelegraph.com/magazine/wp-content/uploads/2024/08/Binance-Apple-497x1024.jpg 497w, https://s3.magazine.cointelegraph.com/magazine/wp-content/uploads/2024/08/Binance-Apple-146x300.jpg 146w, https://s3.magazine.cointelegraph.com/magazine/wp-content/uploads/2024/08/Binance-Apple-770x1587.jpg 770w, https://s3.magazine.cointelegraph.com/magazine/wp-content/uploads/2024/08/Binance-Apple-745x1536.jpg 745w, https://s3.magazine.cointelegraph.com/magazine/wp-content/uploads/2024/08/Binance-Apple.jpg 947w" sizes="(max-width: 497px) 100vw, 497px">
 <figcaption class="wp-element-caption">
 Binance app in Philippines’ App Store on Aug. 1.
 </figcaption>
</figure>
<h2 class="wp-block-heading" id="strong-philippines-sec-smells-the-end-of-the-binance-era-strong-but-apple-has-been-silent">Philippines SEC smells the end of the Binance era but Apple has been silent</h2>
The Philippines Securities and Exchange Commission remains hopeful that Google and Apple will heed its call to remove crypto exchange Binance from their local app markets.&nbsp;
SEC Commissioner McJill Bryant Fernandez told <a href="https://www.philstar.com/business/2024/07/29/2373645/sec-remains-optimistic-removal-binance-google-apple-app-stores" target="_blank" rel="nofollow">local news</a> in a July 29 report that discussions with Google continued since the <a href="https://cointelegraph.com/news/filipinos-face-higher-fees-after-binance-ban" target="_blank" rel="nofollow">initial request</a> in April.&nbsp;
I think they are just asking for some documentation but I dont think it is really a reservation for them to block, Fernandez reportedly said. The commissioner did not provide an update on Apples response.
Magazine confirmed on Aug. 1 that the applications are still accessible on both markets.
In November, the SEC <a href="https://www.sec.gov.ph/wp-content/uploads/2023/12/2023PressRelease_SEC-warns-public-against-Binance-mulls-blocking-access-in-the-Philippines-11292023.pdf" target="_blank" rel="nofollow">warned</a> the public against investing in or using Binance, stating that the exchange is not authorized to sell securities to the public.
In March, the Nationale Telecommunications Commission instructed internet services to block access to Binances website.&nbsp;
<h2 class="wp-block-heading" id="thousands-of-south-koreans-rush-into-crypto-trading-competition-winner-claims-1-bitcoin">Thousands of South Koreans rush into crypto trading competition, winner claims 1 Bitcoin</h2>
Over 113,000 investors took part in Upbits inaugural <a href="https://upbit.com/trading-league" target="_blank" rel="nofollow">crypto trading competition</a>, with the top performer bagging a 1,345.39% profit margin, the South Korean exchange announced on July 31.
The competition ran for two weeks, beginning on July 2, and was divided into two categories. The whale league was for larger investors with at least 10 million Korean won (about $7,318) in starting capital. Those that didnt qualify for the whale league competed in the shrimp league.
The top whales recorded 88.24% in profits to earn themselves a 1 BTC reward. The winner of the shrimp league, who had the largest profit margin in the competition, was awarded 0.15 BTC.
Shrimps had an average starting capital of 2,979,014 won, while whales had an average of 78,590,355 won. Both leagues had nearly identical profit and loss divisions at the end of the competition, with around 63% in the green and 37% in the red.
<figure class="wp-block-image aligncenter size-large">
 <img decoding="async" width="1024" height="323" src="https://s3.magazine.cointelegraph.com/magazine/wp-content/uploads/2024/08/Upbit-Trading-Competition-1024x323.jpg" alt="Upbit Trading Competition" class="wp-image-34795" srcset="https://s3.magazine.cointelegraph.com/magazine/wp-content/uploads/2024/08/Upbit-Trading-Competition-1024x323.jpg 1024w, https://s3.magazine.cointelegraph.com/magazine/wp-content/uploads/2024/08/Upbit-Trading-Competition-300x95.jpg 300w, https://s3.magazine.cointelegraph.com/magazine/wp-content/uploads/2024/08/Upbit-Trading-Competition-770x243.jpg 770w, https://s3.magazine.cointelegraph.com/magazine/wp-content/uploads/2024/08/Upbit-Trading-Competition.jpg 1292w" sizes="(max-width: 1024px) 100vw, 1024px">
 <figcaption class="wp-element-caption">
 From left to right, the average rate of return by age group, age proportion, and gender proportion. (Upbit) 
 </figcaption>
</figure>
The competition provided a sample size of the demographics of traders in Korean won, which was the <a href="https://cointelegraph.com/news/korean-won-most-traded-fiat-crypto-traders" target="_blank" rel="nofollow">most traded fiat currency</a> against crypto in the first quarter of 2024.
Investors in their 20s had the highest average profit percentage with 3.94%, though their age bracket only made up 10.87% of all participants. Only investors above the age of 60 had less participation than them with 5.22%.
Investors in their 50s had the second-highest average profit, 2.37%. They ranked third in participation among five age brackets, with 18.96%.
Meanwhile, investors in their 40s made up the biggest portion of the participants’ pie, with 34.44% and had the third-highest profit percentage, with 1.84%.
Only investors over 80 had a negative performance. They were down 5.73% throughout the competition.

Backlash as WazirX ‘socializes’ $235M loss, $10B metaverse plan for shut-ins: Asia Express

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