The Hong Kong Web3 Festival commenced this week amidst a backdrop of declining global markets and falling cryptocurrency prices, as reported by the South China Morning Post. Despite the economic turbulence, officials and industry representatives at the festival expressed cautious optimism, pointing towards potential policy changes in the United States as a beacon for future growth. The festival, organized by crypto exchange HashKey and Wanxiang Blockchain Labs, occurred shortly after the introduction of new US tariffs that negatively impacted both stock and cryptocurrency markets.
Bitcoin, typically seen as a market barometer, saw another drop; it was trading close to $77,000, significantly lower than its peak of over $109,000 in January. Concurrently, Hong Kong’s Hang Seng Index experienced its most significant single-day decline in over 27 years. In his opening remarks, Hong Kong Financial Secretary Paul Chan Mo-po reiterated the city’s commitment to fostering Web3 development, pointing out its regulatory framework aims to balance oversight with innovation.
He highlighted that innovation comes with risks and underscored the necessity of not hindering progress. Christina Choi Fung Yee, the Securities and Futures Commission’s executive director, encouraged businesses to consider establishing their Web3 initiatives in Hong Kong. The festival also focused on recent shifts in US crypto policy, with speakers emphasizing the Trump administration’s more favorable attitude towards digital assets as a potential catalyst for long-term growth.
Despite this positivity, analysts remain wary. While gold prices have climbed 14% this year, Bitcoin continues to align closely with stock market trends, highlighting its susceptibility to broader economic changes. This year’s festival featured fewer headline speakers than previous editions, with notable attendees including Ethereum co-founder Vitalik Buterin and Binance co-founder He Yi participating through video.
In her closing remarks, He Yi reflected on the resilience of Chinese entrepreneurs in navigating geopolitical challenges. She expressed hope that these entrepreneurs would pursue new opportunities despite the complexities of the global landscape.