For the Love of the Game (Market Commentary) |
Well, there’s no sugarcoating it, this has been an extremely rough week for crypto and NFTs due to the SEC filing lawsuits against Binance and Coinbase. During this new phase of scrutiny on, well, everything on the blockchain, the NFT community has really banded together to support the builders. And make no mistake, there’s plenty of building happening. Bitcoin NFTs are still going parabolic, the Polygon blockchain is teasing something major by having projects tease the number 2, art sales keep
ripping, and there are some major developments coming related to IP licensing for NFT holders. With everything happening in the news these stories were easy to miss, so let’s get you caught up. - Pudgy Penguins’ owner Luca Netz was on the NFT Now podcast and talked about an upcoming new NFT IP licensing platform he’s releasing in the next few weeks called Overpass. Pudgy Penguins holders will be able to connect with entities who want to license their NFT, and with a few clicks of a mouse, will take part in the future of licensing.
- Art remains a hot topic in NFTs over the past few weeks, and this week
is no exception. From some of Tyler Hobbs’ Fidenzas (#545 and #25), which sold for $1.17m and $129k this week, to the sale of XCOPY’s Hackproof 2049 for $73k, collectors are grabbing their art grails. Are they anticipating a run on art, or did they just finally find the liquidity after meme coin season?
- Blur.io cycled in a new group of projects to receive 2x rewards for points farming, and with BAYC included, the race was on. Traders quickly threw their Bored Apes into the Blend lending protocol, and with no creator fees to pay, could buy them back and repeat the cycle
over and over again. This relatively new type of wash trading might have fooled some into thinking NFT sales were starting to take off, but we instead flagged nearly 75% of BAYC as wash trades at their peak.
- Bitcoin had 2 recent noteworthy events with another new BRC-20 drop called $MXRC, and Magic Eden’s first Bitcoin drop on their launchpad called Bitcoin Bears Club. $MXRC wasn’t as smooth as some hoped, and bots seemed to grab up a decent percentage of the
supply.
Bitcoin Bears Club on the other hand was a big success, and in just a few days is the 2nd most traded BTC collection on Magic Eden. - BAYC dropped a teaser video this week that showed off apes, dogs, and HV-MTL characters all being drawn into a puzzle. Between wash trades and maybe some hype, BAYC remains on top.
- DMarket and Gods Unchained at times this week occupied the top 2 spots on the 24 hour rankings. With the SEC
news and some buyers pausing to watch the landscape, it’s possible that gaming NFTs with cheaper assets may be the exact type of projects built to weather the storm.
- Wash trades on Ethereum are trending up, and will probably hang around this level until Blur’s Season 2 rewards are distributed. There are rumors that this is coming up imminently.
- Bitcoin still holds onto number 2 and seems to be on auto-pilot. More traders are being onboarded into the Ordinals ecosystem as the appeal of taking part in the early days of the historic chain’s NFT scene becomes
too big to miss.
- Polygon and Solana are still battling for 3 and 4, but it still remains to be seen if their native tokens being called securities will impact their NFT ecosystems.
NFT Forkast NFTs are still riding their downtrend that started on 6/1 and has yet to react to the SEC’s lawsuits
that were filed against Coinbase and Binance in a noticeable way. I’m curious to watch the Solana, Polygon, and Cardano Composites, as each of these blockchain’s native tokens was named as securities in these lawsuits, while Ethereum was not. Will those chains’ NFTs suffer as a result, and will Ethereum NFTs be more resilient to losses from being omitted? When FUD is running high, I love returning to the Bitcoin whitepaper for inspiration. The document is a work of art and one that serves as the perfect reminder that what we’re building is much bigger than what’s in the news today. Tthe best days of NFTs are still ahead of us, so take a few minutes to read the Bitcoin whitepaper and see why so many people are committed to the blockchain movement. Have a great weekend and a MEGA GM! |
FUD
stands for Fear, Uncertainty and Doubt, and is a term used in the investment world for negative comments. The term FUD may imply that the negative comments are inaccurate or made with the purpose of affecting an asset’s price in a negative way, so these comments are labeled as FUD in a way to discredit them. These days FUD has become a term used commonly as it has been adopted as internet slang. There’s more to learn about the term and how it’s used, so dive in and see the FUD for
yourself. Happy Researching! Received this from a friend? Sign
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Coming up Next on CryptoSlam Clubhouse
Podcast Yohann chats with Edward Lee, a leading legal expert on NFTs and intellectual property.
He is a professor of law and co-director of Illinois Institute of Technology Chicago-Kent College of Law’s Center for Design, Law, and Technology, the first U.S. institution devoted to research of creativity, technology, design, and the law.
In his latest book “Creator take control” Edward offers a compelling new theory to explain the meteoric rise of non-fungible tokens
(NFTs) and their impact on art, business, entertainment, and society, and explains how they are revolutionizing our understanding of ownership.
In this interview they discuss:
- Recommendations for collections owners to legally protect their brands.
- How NFT technology and Web3 is
related to the birth of modern art in the 20th century and what lesson it provides for the 21st century.
- The explosion of AI and ChatGPT and how they are complimentary to NFTs.
- The theory of decentralized IP, or De-IP.
- Smart contracts on Ethereum, and lack of smart contracts on Bitcoin.
- How commercial rights for NFTs
and Bitcoin Ordinals compare to each other.
- What Edward’s favourite brand-able NFT IP is.
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