Tencent, a Chinese tech giant with a market capitalization of over $460 billion that runs an online payment processor with over 900 million users, has reportedly started forming a digital currency research unit to look into how cryptocurrencies can be used within its platforms.

Initial Exchange Offerings (IEOs) haven’t been too profitable for investors: since they started trading on exchanges most projects saw their value drop by 80% or more, with a few exceptions. Investor protection have played a part in the government of Uzbekistan deciding recently to ban cryptocurrency purchases even though Ukzbekistan was initially considered to be one of the most crypto-friendly nations in Central Asia

Top stories in the Crypto Roundup today:

• Chinese Tech Giant Tencent Reportedly Forming a Digital Currency Research Unit
• Nearly All IEOs Are Down 80% or More, BitMEX Report Shows
• Uzbekistan Bans Cryptocurrency Purchases While Allowing Holders to Sell

At the time of writing, bitcoin (BTC) is trading at $7,238.71 (-0.13%) with a daily Top Tier volume of $1.07 billion. As for ether (ETH), it is trading at $125.49 (-0.02%) with a daily Top Tier volume of $238.75 mn. The MVIS CryptoCompare Digital Assets 10 Index is currently tracking at 2,222.47 (1.06%).

Chinese Tech Giant Tencent Reportedly Forming a Digital Currency Research Unit

Tencent, the Chinese tech giant with a market capitalization of over $460 billion that owns WeChat, is reportedly forming a digital currency research unit. According to local news outlets, Tencent issued an internal notice saying it’s looking for someone to head its digital currency research unit, which will be a part of Tencent’s payments arm.

The digital currency team will look into how cryptocurrencies can be used within its platform, as well as other potential business applications. It’ll also consider their potential use within existing and future regulatory regimes.

The company already runs WeChat Pay, one of the largest payment processors in the world with over 900 million active users per month. Tencent has so far issued three blockchain whitepapers, and is rumored to be a part of China’s pilot digital currency plan in Shenzhen.

Tencent has also received a license from the Hong Kong authority to open a virtual bank and provide financial services using blockchain technology.

Nearly All IEOs Are Down 80% or More, BitMEX Report Shows

A report published by the research arm of cryptocurrency derivatives exchange BitMEX has show the initial exchange offering (IEO) trend was unprofitable for investors so far, as most projects launched on cryptocurrency exchanges saw their prices drop 80% or more since launch.

BitMEX Research analyzed twelve major IEOs launched this year, and found that eleven of these lost most of their value since they started trading, with the exception being Binance’s MATIC, which so far this year went up over 200%.

If investors bought IEOs at the price they were offered by the exchanges and not at the price at which they started trading, investors would be in the green in four out of eleven IEOs, with returns ranging from 7.9% to 490%.

Uzbekistan Bans Cryptocurrency Purchases While Allowing Holders to Sell

The government of Uzbekistan has reportedly banned its residents from purchasing cryptocurrencies, in an abrupt decision that shows the country is turning on digital assets, as the Uzbek government was so far lenient towards cryptos.

Uzbekistan was reportedly a crypto-friendly nation before banning crypto purchases, so much so it legalized trading and introduced licenses to ensure the industry was legal. Cryptocurrency holders were even provided with tax benefits, as income from crypto trading wasn’t taxed.

Uzbek citizens can no longer buy cryptocurrencies from licensed exchanges, although those who hold any tokens are still able to sell their holdings, as long as they go through know-your-customer (KYC) checks. To sell their cryptocurrency holdings, Uzbeks will also have to prove they gained them through legal means, as any asset whose origin cannot be proved will be illegal to both transfer and own.

Some have questioned the effectiveness of the move, as Uzbeks will be able to use virtual private networks (VPNs) to sell their cryptocurrency holdings on exchanges that aren’t licensed by the government, and on decentralized trading platforms.

State of the Crypto by Top Tier Exchange Volume

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