HashKey Group Chairman and CEO Xiao Feng kicked off the 2025 Hong Kong Web3 Festival on Sunday with a keynote address highlighting blockchain technology’s transformative impact on global financial infrastructure.
Speaking to an early morning crowd at the Hong Kong Convention and Exhibition Center, Xiao described blockchain as “a new generation of financial infrastructure” that fundamentally changes how financial transactions are recorded, settled and governed.
“Any industrial revolution must wait for a financial revolution,” Xiao told attendees at the four-day event hosted by his company.
Xiao emphasized historical parallels between technological and financial evolution: banking credit supported the British Industrial Revolution, stock markets enabled the electrical revolution in America, and venture capital fueled Silicon Valley’s information revolution.
“Cryptocurrency finance will become the core financial innovation supporting the fourth industrial revolution.”
The executive highlighted key differences between traditional and blockchain-based finance, including the shift from bank accounts to digital wallets and the move from batch settlement systems to instantaneous transaction completion.
Regulatory Changes and Market Evolution
Xiao noted the significance of the U.S. Securities and Exchange Commission’s recent decision not to classify dollar-backed stablecoins as securities, suggesting this allows more institutions to participate in monetary creation processes.
HashKey Group Chairman and CEO Xiao Feng at Keynote speech of 2025 Hong Kong Web3 Festival. Courtesy of Web3 Festival
He also pointed to major stock exchanges moving toward 23-hour trading cycles, compared to blockchain markets that operate continuously.
“Traditional exchanges will eventually need to adapt to compete with cryptocurrency markets that have operated 24/7 since day one,” Xiao predicted.
Hong Kong’s Strategic Role
The event features several high-profile regulators, including Paul Chan Mo-po, Financial Secretary of the Hong Kong Government; Joseph H. L. Chan, Under Secretary for Financial Services and the Treasury; Christina Choi, Executive Director of Investment Products at the Securities and Futures Commission; and George Chou, Chief Fintech Officer of the Hong Kong Monetary Authority.
While mainland China maintains strict prohibitions on cryptocurrencies, analysts view Hong Kong’s supportive stance as a strategic testing ground for the technology’s potential. This approach effectively creates a regulatory breathing space where blockchain innovations can develop under controlled conditions, potentially informing future policies across the broader Chinese economy.
The Web3 Festival continues through Wednesday with industry panels, demonstrations and networking events, bringing together blockchain developers, investors and technology enthusiasts from around the world.
Virtuals Protocol (VIRTUAL) has recently seen a notable 11% rise in the past 24 hours, bouncing from the support of $1.63 to trade at $1.84.
Despite this upward momentum, the altcoin continues to face challenges from both investor sentiment and market conditions. These factors may impact its potential for sustained growth in the near future.
Virtuals Protocol Loses Investor Interest
After a spike earlier this week, the number of new addresses for Virtuals Protocol has dipped significantly. Currently, new addresses are at a month-and-a-half low, indicating a decline in investor interest.
This suggests that new investors are losing interest in Virtuals Protocol, which could potentially signal a loss of traction for the asset among crypto enthusiasts.
The decrease in new addresses highlights a broader trend that may hinder VIRTUAL’s ability to build sustained momentum. The lack of fresh interest may lead to further consolidation or even price declines.
From a macro perspective, Virtuals Protocol is facing some technical challenges. The Average Directional Index (ADX) is showing a sharp decline, which could indicate weakening momentum.
The ADX remains above the threshold of 25.0, signaling some strength in the current trend.
However, it is at risk of slipping below this level. If this occurs, it could signal that the recent price uptrend is losing its strength. The declining ADX, coupled with lower levels of new address activity, suggests that Virtuals Protocol may soon experience a shift in its price trend.
Currently, Virtuals Protocol is trading at $1.84 after a notable 11.4% rise over the past 24 hours. The price is currently facing resistance at $1.93, which could present a challenge for further upward movement.
While the recent bounce off $1.63 is promising, overcoming the $1.93 resistance remains a crucial test for the altcoin’s near-term price action.
If the factors mentioned earlier continue to impact the market negatively, VIRTUAL may struggle to breach the $1.93 resistance. This could lead to a period of consolidation, with the price likely to remain above the $1.63 support level.
However, if selling pressure intensifies, the price may fall below this support, potentially reaching $1.50 or even lower.
On the other hand, if broader market conditions turn bullish, Virtuals Protocol could push past the $1.93 resistance. Successfully flipping this level into a support floor would be critical for the altcoin to target $2.00.
Beyond that, $2.45 would become the next key resistance, signaling a reversal in the bearish thesis and opening the door for further gains.
The Middle East and North Africa (MENA) region is quickly becoming a notable force in the push for global crypto adoption. With growing participation from institutions and enterprises and supportive regulations for Web3 technology, MENA is set to expand its impact.
BeInCrypto interviewed Stephan Apel, CEO of Outlier Ventures, to explore the characteristics of these tech-driven economies and their anticipated innovations.
Web3 Adoption and Market Growth
MENA has emerged as a significant center for Web3 development, facilitated by a combination of demographic, technological, and cultural factors. The region’s entrepreneurial spirit has also fostered an environment conducive to the adoption of decentralized technologies.
“The MENA market has set a standard for adopting next-gen technologies and using them to boost their economic transformation. This is especially true for Web3 technologies— the region recognised their potential early on, offering the resources needed for these projects to scale and thrive on both regional and global levels,” Apel told BeInCrypto.
Consequently, the region is witnessing an increase in startups, investors, and developers exploring Web3 and its diverse applications.
A 2024 Chainalysis report revealed that MENA was the seventh biggest crypto market worldwide. From July 2023 to June 2024, the region saw $338.7 billion in online crypto transactions, representing 7.5% of all crypto transactions globally.
Share of all cryptocurrency transaction value by region. Source: Chainalysis.
Notably, Turkey and Morocco ranked among the top 30 countries globally in crypto adoption. Turkey secured the 11th spot, while Morocco ranked 27th. These nations alone accounted for $137 billion and $12.7 billion in received cryptocurrency value, respectively.
Furthermore, the MENA region’s crypto activity is predominantly driven by institutional and professional players, as a substantial 93% of all value transferred involves transactions exceeding $10,000.
Meanwhile, Gulf Corporation Council (GCC) members have distinguished themselves through their ambitious technological initiatives.
MENA’s Strategic Shift Towards AI
The onset of artificial intelligence (AI) has prompted governments and businesses within the Middle East to acknowledge the global trend towards related advanced technologies. Countries like Qatar, Saudi Arabia, and the United Arab Emirates (UAE) are considering their strategic position concerning this technological transformation.
According to a report by PricewaterhouseCoopers (PwC), AI could contribute up to $15.7 trillion to the global economy in 2030. The consulting firm predicts that the Middle East will bring 2% of the total global benefits, equal to $320 billion.
MENA’s pioneering role in AI development. Source: PwC.
The PwC report also indicates that Saudi Arabia will see the largest absolute gains from AI by 2030, with an estimated US$135.2 billion added to its economy, or 12.4% of GDP. In terms of GDP percentage, however, the UAE is expected to see the greatest impact, approaching 14% of its 2030 GDP. Meanwhile, for GCC states Bahrain, Kuwait, Oman, and Qatar, AI is expected to contribute 8.2% of their GDP.
Given the region’s latest initiatives and investments in AI innovation, these numbers come as no surprise.
Saudi Arabia’s AI Development Initiatives
In 2016, the Saudi Arabian government launched Vision 2030, a program to promote economic, social, and cultural diversification. Integral to this vision is a strategic shift towards artificial intelligence and data-driven innovation, a key component of the nation’s economic diversification efforts.
Saudi Arabia is making notable advancements in AI. The country aims to reduce its reliance on oil by developing advanced technology sectors through targeted investments, infrastructure development, and workforce training.
“Fueled by its Vision 2030 initiative, Saudi Arabia has already created a thriving startup ecosystem, dedicated significant investment in emerging technologies,and designed policies to attract global talent and entrepreneurship,” Apel told BeInCrypto.
The Saudi Data and Artificial Intelligence Authority (SDAIA) spearheads Saudi Arabia’s push into artificial intelligence, shaping and implementing the country’s national data and AI strategy. The National Data Bank is a cornerstone of their efforts. It is designed as a central hub for data access and analysis, facilitating AI applications across public and private sectors.
Last November, Saudi Arabia also unveiled Project Transcendence. The $100 billion investment initiative focuses on accelerating the integration of AI and advanced technologies.
Similar to its neighbor, the UAE has actively pursued AI adoption.
UAE’s AI Strategy and Investments
In 2017, the UAE launched its National Strategy for Artificial Intelligence, which aims to make the country a global leader in the field by 2031. The UAE AI and Blockchain Council oversees this strategy, which impacts sectors like education, energy, and tourism.
The UAE is already reaping the benefits of its AI initiatives. In April, Microsoft announced a $1.5 billion investment in G42, an Abu Dhabi-based technology holding company. G42 is known for its data centers and the development of Jais, a leading Arabic-language AI model.
In September, G42 and Nvidia partnered to create AI-driven solutions for improved weather forecasting. The collaboration aims to advance climate-related technologies by using Nvidia’s Earth-2 platform, which enables AI-augmented climate and weather simulations.
Three months later, Abu Dhabi-based global technological ecosystem Hub71 partnered with Google to boost startup growth in the UAE. This collaboration will bring Google’s “Google for Startups” program to Abu Dhabi, including a dedicated accelerator for Hub71 startups in 2025.
He also drew attention to the planned convergence of AI and Web3 technologies in these prominent regions.
Convergence of AI, Web3, and IoT
Integrating the Internet of Things (IoT), blockchain, and AI technologies is gaining traction among businesses in the Middle East. By combining these technologies, organizations can access new avenues for growth, increase efficiency, and create novel user experiences.
In 2018, the Dubai Airport Freezone Authority launched Dubai Blink, a platform that integrates AI, blockchain, and virtual licenses to facilitate global trade. This system enhances supply chain innovation through ‘smart commerce’ by expediting trade with a unified online platform. Furthermore, it addressed the cumbersome process of supplier identification by using AI algorithms to streamline and accelerate the validation process.
Ultimately, MENA’s proactive approach to technological advancement, coupled with its strategic focus on Web3 and AI, signals a future where the region will be a pivotal architect in shaping the digital economy.
Despite recent signs of recovery across the broader cryptocurrency market, sentiment around Ripple’s XRP remains bearish. The altcoin continues to struggle below $2.20, as more traders are now betting that the price will dip further.
Traders appear unconvinced that the token will stage a meaningful price surge in the near term, with many continuing to bet against its upside potential.
XRP Traders Eye Further Downside as Sentiment Sours
According to Coinglass, there has been a consistent increase in short positions targeting XRP. The token’s long/short ratio has remained below 1 for nearly two weeks, reflecting a growing preference for short trades. At press time, this ratio sits at 0.93.
The XRP Long/Short ratio compares the number of long positions (bets that the price will rise) to short positions (bets that the price will fall) in a market.
When an asset’s long/short ratio is above 1, there are more long than short positions, indicating that traders are predominantly betting on a price increase.
Conversely, as with XRP, when the ratio is below one, traders are betting on a price decline. The long/short ratio remaining below 1 for some days highlights a prevailing bearish sentiment in the XRP market, signaling expectations of further downside.
Additionally, XRP’s weighted sentiment has stayed in negative territory, reaffirming the bearish outlook. As of this writing, it is at -0.40.
The weighted sentiment analyzes social media and online platforms to gauge the overall tone (positive or negative) surrounding an asset.
When this metric’s value is negative like this, it points to heightened sell-side pressure and fading investor confidence. This puts XRP at risk of extending its price dip.
XRP on the Brink: Could Selling Pressure Push Price Below $2?
With short interest climbing and bearish bias strengthening, XRP risks slipping below the $2 mark. If the current trajectory continues and selling pressure intensifies, a decline under this psychological threshold could materialize in the near term.
In that scenario, XRP’s price could reach $1.99 and fall toward the year-to-date low of $1.61.
However, a resurgence in new demand for the altcoin could invalidate this bearish projection. In that case, XRP’s price could break above $2.29 and trend toward $2.50.
