Seagate Faces Complaints Over Used Hard Drives
A recent investigation by the German news outlet Heise has uncovered a rising number of customer complaints regarding Seagate hard drives, with many consumers alleging that the drives they purchased as new are, in fact, used. The investigation suggests that these drives may have previously been utilized in Chia mining operations in China and subsequently resold as new products. Seagate has reportedly informed Heise that these used drives are being distributed through unofficial channels and not through its authorized retailers. As a result, mining equipment from Chinese Chia farms is re-emerging in the market disguised as brand-new Seagate items.
Chia farming, which was launched by the Chia Network in 2021, represents a unique approach to cryptocurrency mining that relies on hard drive storage. In essence, miners earn rewards based on the amount of storage capacity they possess. This method gained significant traction, particularly in China, where the demand for both hard disk drives (HDDs) and solid-state drives (SSDs) surged, resulting in supply shortages for manufacturers like Seagate. Due to the intensive nature of Chia mining, which caused rapid wear on SSDs, HDDs became the preferred option for long-term farming endeavors. Although Bram Cohen, a co-founder of Chia Network, asserts that Chia mining causes minimal damage to hard drives, the profitability of Chia farming has declined significantly. The native cryptocurrency, XCH, is currently trading at approximately $13, a stark contrast to its all-time high of $1,645 in 2021. The issue of used drives is no longer confined to Germany, as reports have emerged from Thailand, Australia, and Japan detailing similar concerns.
Japanese Company Gumi Invests in Bitcoin
Gumi, a blockchain gaming firm based in Japan, has made headlines with its announcement of a 1 billion yen ($6.5 million) investment in Bitcoin. This strategic move aims to bolster its node operation business by utilizing staking methods for the cryptocurrency. In a statement released on February 4, the Tokyo-listed company revealed that its board had approved the investment as part of a broader strategy to allocate excess funds toward Bitcoin. Gumi plans to stake its holdings through a platform called Babylon, which would enable the company to generate additional revenue from staking rewards, validator incentives, and the potential appreciation of Bitcoin’s value.
The interest in Bitcoin and blockchain technology is growing among Japanese gaming firms. Gumi has been actively engaged in the blockchain gaming sector and formed a partnership with Sui Network in August 2024 for the development of the game “Brave Frontier Versus.” The company also has its own gaming ecosystem cryptocurrency named Oshi. Following the Bitcoin investment announcement, Gumi’s stock price experienced a remarkable increase of over 40%, although the Oshi Token did not see a similar rise. Gumi’s proactive stance mirrors that of Metaplanet, a Tokyo-based company recognized for its aggressive Bitcoin acquisition strategy, which has also resulted in significant stock appreciation. The trend of gaming firms in Asia gravitating towards Bitcoin and blockchain technology is becoming increasingly apparent, with companies like Nexon boasting the second-largest Bitcoin holdings among publicly listed firms in Japan, thanks to its 1,717 BTC purchase in 2021. Additionally, major players like Sony have recently launched their own Ethereum layer-2 network, and Boyaa Interactive has emerged as Asia’s largest publicly listed Bitcoin holder. The embrace of Bitcoin as a reserve asset is also gaining traction beyond Japan, as evidenced by India’s Jetking Infotrain, which revealed it holds 12 BTC.
South Korea Eases Crypto Trading Restrictions for Institutions
South Korea’s Financial Services Commission (FSC) has announced a new roadmap aimed at relaxing restrictions on corporate cryptocurrency trading. Universities in South Korea will be among the first institutions granted permission to engage in crypto transactions. After several months of discussions, the FSC has outlined a phased approach to implement these changes. By the first half of 2025, various entities, including law enforcement agencies, charity organizations, universities, and cryptocurrency exchanges, will be permitted to open real-name accounts for the sale of their crypto assets. These accounts must be linked to the legal identities of South Korean residents and are essential for applying for fiat-to-crypto accounts at licensed exchanges. Previously, institutions faced a de facto ban on opening such accounts due to stringent Anti-Money Laundering regulations. The absence of corporate participation has led to a crypto economy in South Korea that heavily relies on retail investors.
In the latter half of the year, the FSC plans to launch a pilot program allowing select institutions to open real-name accounts. This initiative will be available to approximately 3,500 publicly listed companies and professional investors. In October, the FSC established a crypto committee tasked with exploring the possibility of lifting restrictions on corporate accounts and crypto-focused exchange-traded funds (ETFs). While ETFs are currently prohibited under the Capital Markets Act, advocacy from the domestic finance industry association is growing in favor of their approval, arguing that they could provide a safer investment option for senior investors, who are increasingly interested in cryptocurrencies.
Coinbase Eyes Return to India Amid Regulatory Changes
Coinbase is reportedly in negotiations with India’s Financial Intelligence Unit (FIU) as the exchange considers re-entering the Indian market. The potential comeback comes after Coinbase exited the Indian market when regulators suspended its access to the Unified Payments Interface (UPI), the primary payment system in the country. The UPI is managed by the National Payments Corporation of India and operates under the oversight of the Reserve Bank of India (RBI). Authorities previously contended that cryptocurrency exchanges utilizing services linked to the RBI were not legally recognized. However, recent developments indicate a shift in India’s regulatory landscape.
The government’s economic affairs secretary has recently suggested that the Indian authorities are reassessing their stance on cryptocurrencies, potentially aligning with international regulatory trends. Additionally, the RBI has seen a change in leadership, with former governor Shaktikanta Das, a well-known critic of cryptocurrencies, stepping down. Coinbase has been actively expanding its global presence, having recently obtained regulatory approval in the United Kingdom. The CEO of Coinbase, Brian Armstrong, has been exploring further opportunities for international bases, including discussions with officials from the Philippines during the World Economic Forum in Davos.
