The News
It’s inevitable in the world of crypto: increased adoption leads to more risk.
Last week, a token issued by a Hong Kong blockchain company backed by Abu Dhabi’s Shorooq Partners plunged 90% in just a few hours, wiping out $5 billion in market value. The company had previously signed a $1 billion tokenization deal with Dubai property developer DAMAC Group. Around $250 million worth of the token was sold in the week leading up to the crash — Shorooq denied selling, news site AGBI reported.
Just days earlier, Abu Dhabi regulators fined crypto platform Hayvn $12.5 million and banned its CEO for “unlicensed financial services activity.” No client funds were lost.
Still, the UAE remains bullish on the space. MGX — backed by Mubadala and AI firm G42 — recently invested $2 billion in the world’s largest crypto exchange Binance. And Abu Dhabi-based DWF Labs disclosed a $25 million purchase of tokens tied to US President Donald Trump’s crypto venture, becoming one of its biggest holders.