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Web3 Festival opens in Hong Kong as markets react to US tariffs – Crypto News

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7 months ago

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The Hong Kong Web3 Festival kicked off this week as global markets declined and cryptocurrency prices continued their downward trend, according to the South China Morning Post.

Despite the backdrop of economic uncertainty, officials and industry representatives at the event remained cautiously optimistic, highlighting policy shifts in the United States as a potential turning point.

Organised by crypto exchange group HashKey and blockchain research institute Wanxiang Blockchain Labs, the event comes just days after new US tariffs rattled both stock and crypto markets. Bitcoin, which has often been viewed as a market bellwether, dropped again over the weekend, trading near US$77,000—well below its January peak of more than US$109,000. At the same time, Hong Kong’s Hang Seng Index posted its steepest one-day loss in over 27 years.

In his opening remarks, Hong Kong Financial Secretary Paul Chan Mo-po described the city as supportive of Web3 development, emphasising that its regulatory framework aims to strike a balance between oversight and innovation. “After all, innovation entails risks,” he said, noting the importance of not stifling progress.

Christina Choi Fung Yee, executive director at the Securities and Futures Commission, encouraged businesses to consider Hong Kong as a base for their Web3 initiatives.

Recent developments in US crypto policy also drew attention at the event. Speakers pointed to President Donald Trump’s administration, which has expressed a more favourable stance toward digital assets, as a potential catalyst for long-term industry growth.

Kevin Goldstein, co-founder of Kee Global Advisors, compared the administration’s tariff moves to earlier economic shifts, including interest rate hikes under former US Federal Reserve Chair Paul Volcker. “They’re trying to restructure and reset an existing order that was not sustainable,” he said. “I’m well aware of what bitcoin did overnight, as we all are, but I would say please be patient, please keep the faith.”

David Zell, co-president of the Bitcoin Policy Institute, referenced an executive order that formally positioned bitcoin as a “strategic reserve” and described it as “digital gold.” He noted the importance of how the administration’s language frames the asset.

However, analysts remain cautious. While gold has climbed 14% this year to US$3,024 per troy ounce, bitcoin continues to move in step with stock markets, showing its vulnerability to broader economic shifts and its ongoing reputation as a speculative asset.

Compared with previous years, the 2024 Web3 Festival had fewer headline speakers. Binance co-founder Zhao Changpeng, popularly known as CZ, did not attend in person, though co-founder He Yi spoke with attendees via video. CZ, who recently completed a three-month sentence in the United States on money laundering charges, has resumed public appearances in Hong Kong, including events with Ethereum co-founder Vitalik Buterin and Tron founder Justin Sun.

Buterin, who wasn’t initially listed with a set agenda, made a surprise appearance, echoing his last-minute involvement in last year’s edition of the event. On the same day, CZ joined Sun at a Binance gathering. Sun has also faced legal scrutiny but remains active in the industry. In November, he invested US$30 million in Trump’s World Liberty Financial project. A fraud probe against him was paused earlier this year by the US Securities and Exchange Commission.

In her closing remarks, He Yi reflected on the resilience of Chinese entrepreneurs amid ongoing geopolitical shifts. “No matter the framework, I believe Chinese entrepreneurs can break new ground and achieve success,” she said. “I also hope our entrepreneurs won’t let the world’s ever-shifting dynamics make them feel that there are no opportunities, or feel that an era has ended because of geopolitical divides.”

(Photo by Unsplash)

See also: Cryptocurrency stocks fall following US tariff escalation

Want to learn more about blockchain from industry leaders? Check out Blockchain Expo taking place in Amsterdam, California and London.

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Tags: blockchain, cryptocurrency, Web3

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