No Offseason for NFTs
Good morning. A lot of readers will be chomping at the bit to see that market update this morning after a very green Monday. In addition to market moves, we've got Ukraine updates, NFL NFTs, a new SF venture fund, and more!
Market Update (as of 7:27am ET):
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Top 5:
1. Ukraine to issue legal demands on crypto exchanges to freeze Russian accounts. The Ukrainian government plans to move forward with legal demands that crypto exchanges freeze Russian users' accounts after previously calling on exchanges to do so voluntarily. Exchanges like Kraken and Binance both refused to do so without being legally required. The freeze would impact all Russian users with funds on exchange platforms. Kraken CEO, Jesse Powell, encouraged users to take their assets off exchange to avoid the freeze.
1/6 I understand the rationale for this request but, despite my deep respect for the Ukrainian people, @krakenfx cannot freeze the accounts of our Russian clients without a legal requirement to do so.
— Jesse Powell (@jespow) February 28, 2022
Russians should be aware that such a requirement could be imminent. #NYKNYC https://t.co/bMRrJzgF8N
2. Hack VC Debuts $200M Early-stage Fund Targeting Crypto, Web3 Startups. The fund will be considered modest by venture capital standards, but it's the continuation of a larger trend in which venture firms are diving into crypto and web3 investments. The fund aims to specialize in "early-stage startups operating in crypto, open-source, fintech, artificial intelligence, machine learning and business software sectors," and recently invested in the extended Series B funding round for Amber Group, a crypto investment platform.
3. Dapper hires two execs as NFL NFT marketplace debuts to $5M in sales. The firm behind NBA Top Shot is bolstering the team with a focus on expanding their NFL NFT marketplace, "NFL All Day". Dapper has hired an SVP of Engineering and a new CFO the week after the NFL All Day marketplace debuted. From Feb 22-24 NFL All Day saw 90,000+ transactions and over $5 million in sales.
Speaking of top plays, Patrick Mahomes II has 3 of the top 4 selling Moments on #NFLALLDAY. 📈
— NFL ALL DAY (@NFLALLDAY) February 28, 2022
Hit the marketplace ➡️ https://t.co/yXgotpcKVM https://t.co/JCy3KtSpEh
4. Key arguments refuting the idea that crypto will allow Russia to avoid sanctions. A really good (and short) thread (8 tweets), but I'll condense even further (3 bullets):
- Crypto is becoming easily trackable by software and governments and many on/off-ramps to crypto are via OFAC regulated financial institutions
- Russia as a country (not individuals) conducts ~$50 billion in daily FX transactions, which would have major impacts on liquidity in crypto markets
- It would be very difficult to onboard the required capital to crypto markets without being noticed by governments implementing sanctions, and even if successful the massive FX trading volumes would have drastic impacts on markets that would likely make this option unsustainable
(thread ahead) In the last few days, we’ve seen some say that Russia could potentially evade sanctions and get around SWIFT using crypto. I outline some of the key arguments refuting this below (and a chart 😄)
— Asheesh Birla (@ashgoblue) February 28, 2022
5. Onboarding the next wave of Metamask users through NFTs. ConsenSys, the company behind MetaMask, sees NFTs as the gateway to web3 for its next "tens of millions of users." The company is planning to leverage its white label NFT platform to offer services to brands, creators, sports franchises, and other companies. The company is also exploring financialization of NFTs including, "collateralization, fractionalization, swapping, borrowing and lending in the segment."
Updates and other stories:
- How musicians are using NFTs to revolutionize fan engagement...Read More
- Heather Morgan in talks with prosecutors to avoid trial...Read More
- Russia could use cryptocurrency to blunt the force of U.S. Sanctions...Read More
Top Sharers of the Crypto Top 5:
1. Donna Y. - Nashville, TN
2. Jake Y. - Greenville, SC
3. Forrest H. - Evansville, IN
External Resources:
1. Cryptopedia from Gemini - if you see a word, acronym, or phrase in this newsletter that you don't understand, there's a good chance you can find an explanation here
2. Crypto Explainer+ - intro level courses on Bitcoin, Ethereum, decentralized finance, NFTs, and more
3. Crypto Jobs! - looking for a new job? Check out this page from Anthony Pompliano with hundreds, if not thousands of listings
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.