NFTs Weekly News #71 - Ecosystem: Binance Half Year Report 2023 - Part 2

Are you ready for some NFTs news?

We've prepared a new article that covers the latest news and updates in the world of Web3 and NFTs. Read them below!


📈Macro - Binance Half Year Report 2023. NFTs, part 2;
🗞️ Last week's news - SEC vs NFTs, Darewise Entertainment, Grab, The Sandbox x Unstoppable Domains, LayerZero Labs, Metamask, Magic Eden;
💰Investments/Financing - Blockchain Capital, KBank, Bastion, GamePhilos, Genies;
📣 Projects news/Updates - CoolCats^3, VeeFriends x Crocs, BAYC, Cryptopunks, Mocaverse, Yuga Labs, 0N1 Force;
⚖️ Legal - Metaverse Lawyer writes about how the EU Parliament approves DAC8 for crypto fee reporting;
⚙️NFTility, by Mtk - How LaMello Ball is redefining the interaction between athletes and fans;
📚 Dictionary - Limited edition & open edition;
💸 Sale of the week - CryptoPunk #3609;

📈 Macro

Last week we talked about the Binance Half Year Report 2023. NFTs, part one. We had a Market Review and looked at NFT Marketplace Competition. This week we continue with NFT Lending, and next week with Bitcoin NFTs.

3.NFT Lending

In short the NFT lending action has reached an all-time high. But what is NFT lending? Again in short, it's that moment when you pledge your NFT and take out a loan against it. Basically, taken at face value, this phenomenon shows that NFT holdouts have reached rock bottom, they need cash and, unlike in the classic crypto ecosystem, in NFTs liquidity is even lower, with lending being a more handy option. Primarily because there is "someone" willing to offer you money on your NFT and because from a sentimental point of view you don't want to accept to sell for 0.1 ETH an NFT for which you paid 1 - 2 - 3 ETH in another "life".

At the same time, the image below tells us that this all-time lending high - of $823 million in June, coincides with the launch of Blend in May. Blend is the leading NFT Lending platform launched by the folks at Blur.

Blend is a perpetual NFT lending protocol. What does it mean? It means that loans have no fixed terms and positions are open indefinitely until they are liquidated at a market-determined interest rate.

Since launch, Blend has managed to dominate the NFT lending market, capturing 92.8% of the market:

However, it is important to note that the Blend activity could be inflated by airdrop farming, after the original Blur model. Therefore, it's pretty clear that demand was not 100% organic. But obviously, that doesn't mean we can take away from the merits of Blend, for which the rise has been impressive.

🗞️ News from last week

  • SEC vs NFTs. The SEC's latest action against the Stoner Cats makes many believing NFTs are in trouble. Is this true? Find out more at ⚖️ Metaverse Lawyer, in the next issue.

    In short, Stoner Cats was accused by the SEC of offering $8M worth of unregistered securities in the form of NFTs. Without admitting or denying the SEC's findings, the company behind Stoner Cats TV will pay $1M to the SEC.

  • The growth potential of the Web3 market is estimated at $27.4B by 2027, growing at 42% CAGR in 2023 and a compound annual growth rate (CAGR) of 48% between 2022-2027, a Technavio report shows.

  • Darewise Entertainment, a subsidiary of Animoca Brands, is partnering with Horizen Labs to launch the first metaverse token on BTC Ordinals. The goal is to create a holistic gaming metaverse where in-game assets, from virtual lands to collectibles, can be traded. All on Bitcoin.
  • With about 180M users, Grab (the Asian version of Uber) is working with Circle to test a new Web3 wallet within the app. The collaboration kicked off with the use of SG Pitstop Pack NFT vouchers at popular locations in Singapore during the Singapore F1 Grand Prix.
  • The Sandbox is teaming up with Unstoppable Domains and Smobler Studios to launch new in-game adventures this year. Unstoppable has offered players a 30% discount on Web3 domains for this occasion.
  • LayerZero Labs is working with Google Cloud to secure their cross-chain messaging platform and improve Web3 interoperability.
  • Metamask launches "Snaps", allowing customization of wallets with functionality developed by third parties and audited by Consensys developers.
  • Magic Eden introduces Lucky Buy, whereby an NFT can be purchased for a fraction of its original price. Thus, the chances of buying the NFT are directly linked to the percentage of the NFT price that a user commits to pay.
  • Also MagicEden adds support for cNFTs, i.e. compressed NFTs, which allow creators to cost-effectively produce content at scale.

💰 Investments / Financing

  • Blockchain Capital gets record $580M funding to invest in emerging crypto startups, focusing on Defi, gaming and blockchain infrastructure.
  • Kasikornbank (KBank), one of Thailand's largest private banks, has launched a $100M investment fund to invest in AI. The fund, called KXVC, will target AI, Web3 and advanced technology startups, with a focus on the Asia-Pacific region.
  • Web3 startup Bastion closes $25M funding round led by A16z Crypto. The company wants to bring the corporate sector onto blockchain while complying with global regulations.
  • Studio GamePhilos has secured $8M for its upcoming blockchain game Age of Dino.
  • Genies, a metaverse avatar tech company, has allocated $500k to digital fashion creators on its platform The Workshop. Creators will have the opportunity to collaborate with artists such as Khalid and Banks.

📣 Projects news / Updates

  • CoolCats is running an art contest that you can enter too! The grand prize? A Cool Cat NFT. All you have to do is create a unique artwork with one/all of SideKX: Bones, Milo and Sage. Then post the artwork on X using _#SideKXArtContest _and tag @coolcats. Don't forget to fill out this entry form by September 23. Easy peasy lemon squeezy!
  • VeeFriends and Crocs collaborate to showcase their float at the 50th Annual Halloween Parade in New York City.
  • Bored Ape Yacht Club is hosting the "Yacht Club Open House", an interactive experience for creators, collectors and the crypto curious, on November 5, 2023 in Hong Kong. Tickets went on sale September 18, 2023, and can be purchased here.
  • Cool Cats will be present at the Macy's Thanksgiving Day Parade in November 2023. It will be the first NFT collection to parade in the Macy's parade. In an online contest, Macy's offered the chance for one of five NFT projects (VeeFriends, Boss Beauties, gmoney and SupDucks) to participate in the event.
  • In addition, Cool Cats will launch a select collection of limited edition products available in Macy's stores and online.
  • Cryptopunks has announced a new documentary series entitled "Punks As Told By CryptoPunks". The first episode will be released on October 10, 2023.
  • After Mocaverse raised $20M last week with the help of Animoca Brands, they have announced the upcoming launch of the Moca ID soulbound NFT collection. The NFTs will act as a digital passport to the Mocaverse ecosystem, exclusive access to experiences and earning loyalty points.
  • Yuga Labs has launched Made By Ape "Bodega" on its official website, an official centralizer for all valid and active MBA licenses.
  • 0N1 Force has announced that Animoca Brands and Wreck League will be the primary sponsors for the first season of its points system, with rewards worth over $200k.

EU Parliament approves DAC8 for crypto fee reporting!

The European Parliament recently approved the 8th version of the Administrative Cooperation Directive (ACD), DAC8, which focuses on the reporting of fees and taxes related to cryptocurrencies. The approval came after the adoption of legislation on cryptocurrency markets (MiCA) in May 2023. During a meeting held in Strasbourg, France, on 13 September, DAC8 received strong support, with 535 members voting in favour, 57 against and 60 abstaining.

DAC8 is designed to enable tax authorities in EU member countries to monitor and assess all cryptocurrency transactions by both individuals and businesses. It aims to establish a reporting framework for cryptocurrency service providers, requiring them to report transactions made by EU customers. This is intended to reduce the risk of fraud and tax evasion. Deadly trial, that's the saying.

The European Commission believes that the implementation of this reporting system could potentially increase tax revenues, generating between €1 billion and €2.4 billion annually, according to a report by the European Parliament Research Service (EPRS). DAC8 aligns with the Crypto-Asset Reporting Framework (CARF) and MiCA legislation, covering all cryptocurrency asset transactions in the EU.

⚙️ NFTility

If NFT summer started with PFP projects (developed on ERC-721 standard), industry scaling will most likely be accelerated by dynamic NFTs. Built on the ERC-1155 standard, they have the ability to undergo changes over time, reacting to external stimuli defined in the smart contract.

One such project is LaMelo Ball Collectibles, a collection that records the sports career of basketball player LaMelo Ball. It is divided into 8 different categories, each of which evolves in direct relation to the athlete's on-court activity such as the number of points or rebounds in a season.

Connecting statistics to the blockchain is done via Chainlink Sports Data Feeds, which guarantees the accuracy of the data. Information is assigned to token metadata via Chainlink Automation, an automated smart contract service that is designed to transform the NFT when contract terms are satisfied.

This collection has two values: it "grows" with the athlete's career and creates a direct link between him and his fans.

But the versatility of dynamic NFTs is limited only by our imaginations; from collectibles in video games to recording the maintenance activities of the buildings we live in, the applicability of this technology will surround us sooner than we anticipate.

Until next time, stay dynamic.

📚 Dictionary

  • limited edition. A limited edition is a collection of NFTs for which there is a finite number of NFTs available to be minted. Most collections number 10k editions. We'll most likely be laughing about this in a few years!
  • open edition. An open edition is a collection of NFTs for which an (almost) unlimited number of NFTs can be minted. Almost unlimited because it is not good to confuse "open" with "unlimited". Because most open editions are only available for minting for certain time windows. For example 24-48 hours.

💸 Sale of the week

A zombie CryptoPunk sold for 420 ETH ~ $682,361. Number #3609 was bought by @portlandmedici.

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Creative Tim