Original author: Jerry, founder of ThePrimediaDAO

Original author: Jerry, founder of ThePrimediaDAO

On June 1, 2023, Hong Kong, China, the Hong Kong New Deal "Guidelines Applicable to Virtual Asset Trading Platform Operators" came into force. This is destined to become a historical moment in the history of encryption.

All preparations for virtual asset transactions in Hong Kong have already been prepared, and the efforts of the Hong Kong government will promote the integration of tens of billions of off-chain assets into the encrypted economic system. At present, the basic implementation of Web3 is constantly improving, the iteration of AI computing power is accelerating, and the construction of metaverse is steadily advancing. In this context, the layout of virtual assets in Hong Kong, China is promising, and will become an opportunity for this round of bull-bear transition.

As expected in the market, there are many factors that affect bulls and bears, including U.S. stock bond policy, news of interest rate hikes by the Federal Reserve, major power wars and political situations, as well as the periodicity of Bitcoin itself, and the development of Web3 infrastructure and applications.

In the stage of the bull-bear determinants of the Bitcoin cycle and Web3 fundamentals, we believe that this round of bull-bear transition has bottomed out in 2022. In this part of our article "On the Bottom of the Bear Market from the End of Civilization" at the end of the year and the beginning of the year It has been discussed in "Value Logic", so we will not analyze the peripheral information one by one.

In fact, it has been a new round of bulls since 2023, but the market is still in the inertia of a bear market atmosphere. This needs an opportunity - we believe that since the Hong Kong Special Administrative Region government officially issued the "Policy Declaration on the Development of Virtual Assets in Hong Kong" in October last year, coupled with the surge in Hong Kong in April this year, the market's expectation and wait-and-see attitude towards Hong Kong It will become an opportunity factor for a bull market.

Combined with the "Beijing Internet 3.0 Innovation and Development White Paper (2023)" released by the capital on the 27th, it is easier for us to understand the significance of the layout of virtual assets in Hong Kong, China. If you understand Hong Kong, China’s advanced digitalization strategy as a Greater China, there are two positive angles – Hong Kong’s prudent and steady attitude is behind the delayed implementation of the New Deal, and the starting point for regulatory deployment is to ensure the interests of investors. The speculative market for ICO and NFT (PFP) has opened up a new situation; China's embrace of the encrypted world has been implemented from the policy documents of relevant domestic ministries and commissions to the practice in special administrative regions.

Without the layout of the encrypted economy, whether it is Internet 3.0, blockchain, or the deployment and development of the metaverse, it will lose the core soul that most reconstructs the economic relationship and social order of the digital society. Related content has been discussed in the first issue of DcMedia, the industry blockchain media line project, "How Do We Identify the Quality of Metaverse Stocks".

The layout of Hong Kong, China’s ambition to become the center of the global encryption economy unfolded in sequence, and the timing happened to be against the background that the Americans were playing badly - a series of depressing events in the US encryption market, and a series of disappointing regulations by the US government. It is a new vitality for the Chinese encryption circle and even the entire encryption world.

However, there is more to be done for Hong Kong to become the center of the global crypto economy. In April, we analyzed in the "Hong Kong Insights" series of articles - the virtual asset policy conditions in Hong Kong, China If the old currency circle players living in various places gather together and continue to speculate in currency, even if it is good for this round of bull market, but for the central government There will be a gap in expectations for Hong Kong; then, the Hong Kong government must also be aware of it, so the Web3 policy led by the Hong Kong government is largely inclined to traditional technology and traditional finance. Just look at the members of the Hong Kong government's web3 association.

In addition to avoiding being disrupted by harvesters with a sickle and a keen sense of smell, it is also necessary to cross the chain of off-chain assets and directly face the native market of the encrypted economy——with "financial speculation and capital allocation" as the core, DeFi and currency circle capital empowerment web3 The role of the industry, realize the development of the native web3 technology application market, and promote the integration of encrypted economic virtual assets and the real world financial system.