I Bought 1,008 Books and All I Got Were These Lousy NFTs
Good morning. Today we've got SEC subpoenas, genius IQ marketing strategies, infrastructure bill news, and more. Don't miss the offer in story #3.
What this is:
A "Top 5" of crypto, digital asset, and other blockchain related news sent to your inbox on a daily basis
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Top 5:
- Crypto Miner Marathon Tumbles After SEC Subpoena Disclosed
Marathon Digital Holdings stock (MARA) dropped 27% after disclosures by the company that it had received a subpoena from the SEC related to a partnership agreement for a Hardin, Montana data facility. The SEC asked Marathon to provide documents and communication records with Beowulf Energy, the other partner in the venture to develop the Bitcoin mining operation. In addition to the subpoena, Marathon announced a $500 million private offering of convertible securities that will be used to by Bitcoin and additional mining equipment. I guess you could say they're in it for the long run (sorry). - Buy 12 Books, Get an NFT: How One Author Got Orders for a Million Books
Gary Vaynerchuk, co-founder of restaurant reservation software Resy, sold $1 million books in 24 hours, by promising an NFT for every purchase of 12 books. Vaynerchuk said the idea came to him after hearing about fans who regretted not investing in his other NFT collection VeeFriends, which has a current market value of ~$500 million. The idea proved to be a massive success with an average order size during the 24-hour advance order period of 36 books per customer. One voracious reader/speculator purchased 1,008 books for more than $25,000. It is currently unclear what the NFTs will be, but Vaynerchuk says he will airdrop them into customers' wallets after the return period closes for most retailers. To test this galaxy brain marketing strategy our newsletter will be offering an NFT for every 12 new subscribers that an existing subscriber gets signed up over the next 24 hours (beginning at 8:30 ET). - How a VR Company Became the Airbnb for NFTs
Spatial used to be a company that worked with the likes of Microsoft and Pfizer to convince clients that it was beneficial to put on a virtual reality headset and host meetings in their VR application. The company has since "evolved," responding to the explosion in demand for NFTs and digital art by building "one-click" options for artists to integrate Ethereum wallets and have their NFTs displayed in one of Spatial's virtual galleries. The move seems to be the right one as 90% of Spatial's users are NFT artists using the platform to exhibit their art. Even well-known corporate stiffs like the Utah Jazz have gotten onboard by creating a virtual locker room that was used as a team meet and greet for fans that purchased NFTs. “The trends we care about are the creator economy and creators getting paid for their work and the general trend of creators getting access to a market that’s not gate-kept by Sotheby's or Christie’s," says Spatial's head of business development. - Senators Seek Crypto Reporting Fix as Biden Signs Infrastructure Bill
Yesterday, President Biden signed into law the infrastructure bill which includes new tax-reporting requirements for digital currencies. The now law makes an amendment to tax code section 6050I to require recipients of digital assets (in the course of business or trade) valued over $10,000 to report the sender's name, address, and Social Security number to the government. In response, a bi-partisan group of senators is introducing a stand-alone bill to narrow the scope of the tax code to exclude cryptocurrencies and "protect American innovation." It is not known when this bill could come up for a vote, but there is a provision that would make it retroactive to the signing of the infrastructure bill. - Crypto VC firm Paradigm debuts monster $2.5 billion fund
Venture capital firm, Paradigm, has a launched a $2.5 billion fund to focus on crypto investments making it the largest crypto-specific fund ever. The firm was founded by Fred Ehrsam (Coinbase co-founder) and Matt Huang (former Sequoia Capital parter) in 2018 and has already invested in firms like FTX (cryptocurrency exchange), BlockFi (crypto lending platform), and Uniswap (DeFi protocol).
Top Sharers of the Crypto Top 5:
1. Cameron S. - New York, NY
2. Jake Y. - Greenville, SC
3. Lauren A. - Nashville, TN
Disclaimer: The information contained in this newsletter shall not be understood or construed as financial advice. I am not an attorney, accountant or financial advisor, nor am I holding myself out to be, and the information provided is not a substitute for financial advice from a professional who is aware of the facts and circumstances of your individual situation.