The Future of Entertainment, With Pete Holmes

Non-fungible tokens (NFT) have exploded in popularity in the past year. But what are they, really?

“NFT All-Stars,” CoinDesk’s new animated series, brings together a star-studded panel of investors, curators and innovators to debate, explain and laugh about all things NFTs. The hosts are the true OGs of NFTs: Blockade Games CEO Marguerite deCourcelle; EDM innovator, DJ and NFT artisan BT; ClubNFT CEO Artnome; and Highstreet co-founder Jenny Guo.

Joining this episode is Pete Holmes, stand-up comedian known for « The Pete Holmes Show » and « Crashing.” Holmes and the hosts imagine the possibilities for NFTs in the entertainment industry. Last year, Holmes embarked on a NFT-comedy fusion exploration with « Non-Fungible Jokin’, » the world’s first live NFT comedy special.

NFTs were all the rage in 2021, with digital collectibles like Bored Apes and CryptoPunks rapidly becoming status symbols for the new rich. Then the digital and traditional art worlds collided head-on when a Beeple collection sold for millions of dollars at Christie’s.

NFT visionaries have since pushed the boundaries of what is possible with the new technology, creating NFTs for almost every creative project imaginable. What’s next?

Watch the full episode here.

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First Mover Asia: Crypto Prices Rise With Investors’ Appetite for Risk

Good morning. Here’s what’s happening:

Market moves: Bitcoin opened February higher; China’s crypto community remains active after all.

Technician’s take: Sideways trading between $35K-$40K BTC could persist this week as long-term momentum fades.

Catch the latest episodes of CoinDesk TV for insightful interviews with crypto industry leaders and analysis.

Prices

Bitcoin (BTC): $38,818 +0.9%

Ether (ETH): $2,800 +4.3%

Top Gainers

Asset
Ticker
Returns
Sector
Solana
SOL
+13.5%
Smart Contract Platform
Filecoin
FIL
+11.5%
Computing
Polkadot
DOT
+10.4%
Smart Contract Platform

Top Losers

« 

There are no losers in CoinDesk 20 today.

« 

Markets

S&P 500: 4,546 +0.6%

DJIA: 35,405 +0.7%

Nasdaq: 13,346 +0.7%

Gold: $1,801 +0.2%

Market moves

Bitcoin started February, a seasonally strong month for speculative assets, in green, as investors seemed ready to increase their exposure to risk assets.

At the time of publication, the oldest cryptocurrency was trading at a little below $39,000, up about 1% over the past 24 hours, according to CoinDesk data. Ether, the second-biggest cryptocurrency by market capitalization, was up to $2,800, a more than 4% gain over the same time period.

According to Danny Chong, co-founder of Binance Smart Chain-based yield-enhancing asset tracker Tranchess, new investors, whether retail or institutional, may have entered the crypto market amid the lower prices in recent weeks.

“Compared to the traditional financial market, the crypto market is significantly smaller in market [capitalizations], enabling modest changes to create a more noticeable impact,” Chong said via a representative. “With rapid support at current levels as well as added liquidity from new and current users, a market rebound can happen relatively quickly as market sentiments turn positive. »

Data compiled by CoinDesk shows that bitcoin’s trading volume across major centralized exchanges on Tuesday was slightly lower than a day ago. As mentioned in previous First Mover Asia columns, major Asian markets are expecting a slowdown this week because many traders and investors are taking time off for the Chinese New Year/Lunar New Year celebrations.

While crypto trading and mining are banned in China, a well-known actor in China mentioned a random token during China’s Spring Festival Gala – reportedly the world’s most watched television program – and the token’s price rose by as much as 10 times within hours. Its price since then has dropped significantly.

The occurrence shows that despite many crypto observers believing China’s market is dead, especially after exchanges such as Huobi removed mainland China users, many people in China are still active in the crypto community.

Technician’s take

Bitcoin Rangebound Near Support; Resistance at $40K-$43K

Bitcoin (BTC) is holding support above $37,000, albeit within a narrow trading range.

The cryptocurrency is up slightly over the past 24 hours, up 3% over the past week.

Buyers will need to make a decisive move above the $40,000 resistance level in order to pause the intermediate-term downtrend from November.

For now, the relative strength index (RSI) on the four-hour chart is approaching overbought territory, which typically precedes a brief pullback in price. Additionally, the downward sloping 100-period moving average on the four-hour chart could limit price gains over the short term.

On the daily chart, however, the RSI continues to rise from oversold levels, which means buyers could remain active above the $35,000-$37,000 support zone. The wide range of support suggests sideways trading could persist this week, especially given weak momentum on longer-term charts.

Important events

9 a.m. HKT/SGT (1 a.m. UTC): OPEC meeting

10 a.m. HKT/SGT (2 a.m. UTC): Eurostate consumer price index (Jan. YoY preliminary)

10 p.m. HKT/SGT (2 p.m. UTC): Australia industry group performance of construction index (Dec.)

10 p.m. HKT/SGT (2 p.m. UTC): Commonwealth Bank of Australia bank services PMI (Jan.)

11:50 p.m. HKT/SGT (3 p.m. UTC) Japan foreign investment in Japan stocks (Jan. 28)

CoinDesk TV

In case you missed it, here is the most recent episode of « First Mover » on CoinDesk TV:

India Edges Toward Crypto Rule With 30% Tax and Announces Digital Rupee Launch, SEC Approves New US Exchange BSTX to Incorporate Blockchain Technology

CoinDesk regulatory reporter in India Amitoj Singh joined « First Mover » hosts to discuss Indian government’s plan to place a 30% tax on crypto transactions and the announcement of the timeline for digital rupee. Ian Lee, co-founder of Syndicate, shared his views on the state of DAOs. Will Peck, head of digital assets at WisdomTree shared details behind the launch of the latest digital wallet WisdomTree Prime.

Headlines

Jack Dorsey Touts Bitcoin’s Virtues at MicroStrategy Conference: The Block CEO and Twitter co-founder cites the crypto’s transparent fees.

Tom Brady Retires to Focus on Family, NFT Startup: The legendary quarterback retires after a 22-year career in the NFL, with seven Super Bowl rings and a startup, Autograph, that just raised $170 million.

Hackers Move $3.55B Worth of Bitcoin From 2016 Bitfinex Hack: Bad actors will have a tough time cashing out the stolen bitcoin because most of the coins are blacklisted.

India Edges Toward Crypto Legalization With 30% Tax, Announces Digital Rupee: Finance Minister Nirmala Sitharaman noted the moves during the country’s annual budget speech to Parliament.

Address Linked to Wonderland’s Sifu Cashes Out $5.5M Worth of Ether: Sifu is an alleged serial scammer who has previously been convicted.

Diem Confirms Shutdown as Silvergate Acquires the Project’s Assets: Facebook (now Meta) is officially winding down the stablecoin project it announced in June 2019.

Longer reads

NFTs, Celebrities and Perverse Deal-Making: As crypto company MoonPay continues its marketing push, it’s unclear whether celebrity enthusiasm for NFTs is real.

Today’s crypto explainer: Minting Your First NFT: A Beginner’s Guide to Creating an NFT

Other voices: Three key cryptocurrency trends family offices should be aware of (EY)

Said and heard

“As I talk to participants in the economy, what I hear is they actually want us to do something now about inflation. They’d like us to get back to at least a normal interest-rate posture and not be simulating more demand on top of normal levels,” he said. “So, I don’t hear much resistance to that.” (Richmond Federal Reserve President Thomas Barkin on CNBC) … « The cathartic feeling of knowing something before it becomes cool or mainstream, regardless of how annoying it can be, is in fact valuable to some degree. Whether we like it or not. » (Wachsman Marketing Associate Aziz Alangari for CoinDesk) … « A lot of you wrote in last week to say that you have been a bit embarrassed about not understanding what cryptocurrency, NFTs and blockchain are exactly. That shame is not for regular people to carry. Speculative financial technologies like these derive a lot of their cultural power from being hard to define. Clear definition is usually a sign that an instrument is well regulated. » ( New York Times columnist Tressie McMillan Cottom) … « We’re the closest we’ve ever been to having a native currency for the internet with bitcoin. » (Twitter co-founder and former CEO Jack Dorsey at MicroStrategy Bitcoin for Corporations conference)

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With ‘NFT All Stars,’ Two Crypto Art Veterans Take the Conversation Further

Today, CoinDesk launches “NFT All Stars,” a new animated series and podcast spotlighting some of the most influential artists and thinkers in the world of crypto art. Hosted by the developer and entrepreneur Marguerite deCourcelle (also known as Coin Artist), along with Jason Bailey, who’s spent years chronicling the development of the digital art space on his blog, “Artnome,” “NFT All Stars” takes a holistic approach to an industry that seems to grow and change every other day.

NFT All-Stars, CoinDesk’s new animated series, premieres Tuesday, Feb. 1 at 4 p.m. ET. Watch it weekly on Twitter, Facebook, YouTube, LinkedIn, Twitch, Theta.TV and CoinDesk.com.

None of it is precisely scripted. The conversations, with the likes of Roc-A-Fella Records’ Dame Dash, the artist FEWOCiOUS and the DJ Deadmau5, are lively and free-flowing, meant to educate as much as entertain. It’s informed by deCourcelle and Bailey’s backgrounds in blockchain – they’ve dealt with this stuff long enough to know the difference between a fad and a genuine movement.

Both are also investors, too: deCourcelle’s company, Blockade Games, builds puzzles and games built around NFTs. Bailey’s is ClubNFT, an all-purpose NFT company dedicated to “building the next generation of solutions to discover, protect, and share” these tokens.

Other “NFT All Stars” panelists include BT, a composer and arranger who’s worked with the likes of Death Cab for Cutie, Madonna, and Britney Spears; Jenny Guo, co-founder of the tech company Highstreet; and Anand Venkateswaran, also known as Twobadour, the official “steward” of the firm that paid $69 million for a Beeple NFT at Christie’s last year.

Our conversation with the show’s two co-hosts, edited and condensed for clarity, is below.

How did the show come together?

Jason Bailey: There wasn’t ever a scripted thing. In fact, it was almost like an anti-script, where Adam [Levine, the show’s producer] was like, “I want it to feel like a casual conversation.” And we knew that we had a target audience that we couldn’t get overly technical with, which is hard, because I think both Marguerite and I are nerds, in different ways. An audience that we had to maybe assume was new to NFTs.

Read more: 5 Ways to Earn Passive Income From NFTs

As we were recording these episodes, where the world really was opening up the floodgates to NFTs. And as part of that growth, it caught the eye of a lot of celebrities, musicians, comedians and all sorts of different folks that we were able to interview. Our job was really to try to get them to talk about what that experience has been like for them, and sort of facilitate the conversation and share some of our perspective.

Marguerite deCourcelle: I really enjoyed the process of coming together and learning in real time about these incredible people and what they were excited about exploring, what they were looking forward to, where they found themselves in the NFT space – a lot of them coming from very authentic places of excitement, and not just here to flip JPEGs.

Why animation?

MdC: The experience of watching it this way, it really has that metaverse feel to it. It’s an alternate reality. Actually, it reminds me of one of those old school MTV shows, it has a real sense of character to it. It’s saturated with creativity, and so I think it was important for it to be so thoughtful and colorful.

JB: I remember Ali [Powell, a producer on the show] compared it sometimes to “Space Ghost Coast to Coast,” as sort of an inspiration. Sometimes these conversations can get overly serious, about art or blockchain or culture. And I think it adds some levity to the whole thing. You took a wrong turn if you can’t laugh a little bit about NFTs. Especially in the art space, even the most ardent collectors and proponents like myself … we know that it’s also kind of absurd. Like, you’re buying JPEGs you can see for free. And I know it’s more than that, but there’s an element of humor and lightheartedness that you need to have about all of this.

You mention “JPEGs you can see for free” – what’s your take on NFT skepticism?

JB: I think we’re seeing maybe an all-time high right now. I’ve actually been referring to it as a moral panic that people are having around NFTs, like the Satanic Panic in the ‘80s, when people started accusing each other of being satanists. Or it’s like Reefer Madness. There’s just this illogical, outsized concern about NFTs right now. I’m open to criticism and think we need criticism in order for the space to move forward, but I think we’re seeing more criticism than ever before.

At the time that we initially recorded these [episodes], I think we were still a little bit more in the honeymoon period of the world figuring out what these things were. We kept it light, and it was sort of intentionally meant to be light.

MdC: Coming from the Bitcoin space, too, it’s such a contrast – I felt like I couldn’t really talk about things if I wasn’t a cryptographer. And as a creative, I spent a lot of time being like, ‘how do I get to participate in this really tech-centric, totally male dominated, and sometimes unfriendly space?’

Read more: Minting Your First NFT: A Beginner’s Guide to Creating an NFT

When I went to the first Ethereum conferences, I was kind of surprised about the effort that that community was making for inclusivity. I hadn’t seen that level of commitment for inclusivity ever before. And it’s true that the more perspectives and voices you have around, the more culture you can create.

Do you feel encouraged by the direction of the space right now, in regard to diversity and inclusion?

MdC: I feel like the NFT space is going through an identity crisis, and I don’t align with a lot of things that are happening. I don’t really enjoy – and it took me a while to figure this out – but I don’t enjoy the party culture, to the extreme, without real purpose or intention. Just people showboating money or NFTs.

When you get into these VIP parties, and everyone there’s a crypto-influencer, and then you’re in the back channels with a lot of them, and everyone’s pumping their bags, or their projects. It gets this really skeezy feeling to it.

And while it’s fun for some of the people at the top, look at the backlash everywhere. If you look at mainstream people who are not fully educated, or haven’t really been introduced in a friendly way to NFTs, it’s insanely polarizing. And that’s because we built this culture that’s exclusive.

Real artists – people who have chosen a path in which they want to create art and meaningful experiences – are not going to prioritize taking care of collectors and making them more rich, versus their opportunity and freedom to create expressive artwork. When I think of Rothko, I don’t think of [him] because he had the highest-selling artworks. It’s because I liked how he challenged the art space.

Granted, sometimes these things go hand in hand. But the fact is we don’t have people here actually appreciating the artwork. We have a culture of speculators and artists trying to figure out their place in it. And it’s just not friendly for a lot of people that truly have wonderful ambitions. And it’s just gonna take time.

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Tom Brady’s NFT Platform Autograph Raises $170M

Autograph, a non-fungible token (NFT) platform co-founded by National Football League star Tom Brady, has closed a $170 million Series B funding round that was co-led by Andreessen Horowitz (a16z) and Kleiner Perkins.

Other participants in the round included Nicole Quinn, a general partner at Lightspeed Venture Partners, and the new venture firm from a16z alum Katie Haun.As part of the investment, Haun, a16z general partners Arianna Simpson and Chris Dixon and Kleiner Perkins partner Ilya Fushman will join the Autograph board of directors.Founded in July, Autograph has launched NFT collections featuring Brady, Tiger Woods, Naomi Osaka, The Weeknd, Simone Biles, Tony Hawk and Darek Jeter. Brady and The Weeknd are also members of the Autograph board. »We’re in the midst of an exciting moment in the evolution of the next generation of the internet, » Haun said in a press release. « Autograph has assembled a world class team that understands how to build trusted, delightful product experiences that will accelerate the mainstreaming of crypto. »Last month, Haun announced that she was leaving a16z to start her own crypto-focused venture capital firm. Haun is reportedly looking to raise $900 million for a pair of funds.

web3 isn’t just a tech movement. It’s a cultural one.

That’s why I’m excited to announce we’re co-leading a Series B investment in @TomBrady’s @Autograph. My partner @AriannaSimpson will be joining the board, and I’m joining the board of advisors.

— cdixon.eth (@cdixon) January 19, 2022

Read more: Tom Brady’s NFT Platform Autograph Partners With Lionsgate and DraftKings

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What ‘Line Goes Up’ Gets Wrong (and Right) About NFTs

Dan Olson, the Canadian videographer behind the “Folding Ideas” YouTube channel, has an important message for the world: NFTs are all fundamentally flawed. More so, crypto, Web 3 – those umbrella trends often discussed in hurried tones – would be a huge step back. Last week, Olson published a 137-minute documentary, “Line Goes Up – The Problem With NFTs,” going through the myriad issues crypto-based tech faces and creates.

This article is excerpted from The Node, CoinDesk’s daily roundup of the most pivotal stories in blockchain and crypto news. You can subscribe to get the full newsletter here.

The video already has 3.7 million views, making it Olson’s most popular release yet, and likely one of the most consumed individual pieces of media about crypto ever. It has been shared widely in broader tech circles. It’s not hard to see why. Olson tells a convincing story about the perils of market speculation and greed – it’s real, human drama. He starts off discussing mortgage-backed securities and the cascading market failure in 2008, the context in which Bitcoin and Ethereum were created, and shows how that capitalistic mindset rhymes with modern speculative subsectors like NFTs and DAOs.

Has crypto recreated the system it meant to circumvent?

For Olson, crypto is even worse. The technology is broken, he says, but, even if it worked, it would be net negative. His arguments are well researched and justifiable. Although there are a few factual inaccuracies (about Ethereum’s energy use, for instance), it’s tough to object to his overall point. Saying crypto fosters scammers and has real privacy issues and environmental concerns isn’t a matter of opinion. Still, there are gradations and contexts to consider, all of which could be a topic for a competing YouTube takedown video – a blog will have to do.

One of Olson’s most salient points is that people in crypto rarely take criticism well. This is fair. It was certainly on display in reaction to his video. Even industry leaders often fall back on responding to negative news or comments by labeling it FUD (fear, uncertainty and doubt). Olson’s video found an audience because his concerns resonate with people. Crypto would do well by actually watching and listening to the video.

Even though crypto personalities can be abrasive or borderline antisocial, it’s worth noting they’re often self-aware and ironic. Take “right-click save,” the rallying cry of both NFT notables and critics. It’s an obvious line of attack to say supposedly “scarce” digital goods are infinitely reproducible by right-clicking and saving that JPEG. However, NFTs have utility by giving digital goods unique identities and that identity a market price … sharing an image across the web and giving it virality in some sense only makes it more valuable. But it’s an idea you sort of have to lean into.

The Defiant’s multimedia guru Robin Schmidt published a 10-minute video response to Olson, arguing that NFTs are really just a glorified file format. There’s good and bad with any technological standard, and the societal concerns Olson raises are just as easily applied to any social media environment. Casey Newton, writer of “The Platformer” Substack, similarly noted that Olson’s hatred of crypto is as a vector of “rising inequality, pandemic-era isolation and loneliness, self-dealing venture capitalists, and a desperate sense among young strivers that the future is only ever getting smaller.” Again, those issues do not belong to crypto alone.

For as substantial as Olson’s video is, he doesn’t really present any solutions. And who can blame him? We’re talking about rewriting the rules of the internet and society so speculative bubbles like NFTs wouldn’t be so attractive in the first place. Digital scarcity, empowering people to create markets for anything and letting people monetize their digital lives is a massive sea change – and one that comes with its own benefits. If there is a critical flaw in Olson’s video, it’s that he never truly considered the other side.

See also: ‘Probably Nothing’: Why People Still Hate Crypto | The Node

People young and old are excited about crypto because it presents an alternative to the current economic system. Just to say one thing: Those bankers Olson discussed at the beginning of his documentary, the ones that turned the U.S. housing market into a casino and blew up the economy – what happened to them? Did Jimmy Cayne go to jail? Did Lloyd Blankfein lose his job? I don’t bemoan wealth or value creation, but I’m a little perturbed that there’s a yacht shortage today. Crypto doesn’t fix all of that, it may even make it worse. But at least, if done right, it eliminates moral hazard. Crypto puts responsibility on the individual – and if they lose their keys, or lose their savings, that’s on them. It’s a high degree of responsibility and no one forces you to buy a JPEG.

Olson argues that NFTs are particularly perverse because they act as the top of the funnel to the crypto market. They’re one of the few things you can do with ETH or SOL, and have easy cultural tie-ins. He sees brands issuing NFTs, or brands being born from them, and thinks this is a pipeline to the larger crypto ecosystem. This appears bad if you think crypto is bad in itself, rather than just another potential avenue for monetization. The digital economy today is fundamentally broken. There are plenty of people who would willingly trade their personal data for free services, but we shouldn’t bemoan an alternative. Online payments are surveillance and can be censored – why not have an alternative?

Digital media likewise struggles. Streaming companies are unprofitable and likely unsustainable. Journalism is in crisis. NFTs are not the perfect or only solution, but they present an alternative. Just today, legacy magazine Sports Illustrated announced an NFT marketplace. Digital artist Pak is issuing NFTs to benefit WikiLeaks founder Julian Assange. The Associated Press is auctioning historic photographs from its collection, with the profits going to support AP’s journalism. Despite being plagued by scams, crypto provides real avenues to assist real people.

There are moments in “Line Goes Up” that truly soar. Calling NFTs the “aesthetically vacuous representations of the dead inner lives of the tech and finance bros behind them” is poetry because it’s true. He goes on, calling them “the vanguard for a new system,” one that’s littered with pyramid schemes and “fugly” cartoon apes. “A different system does not inherently mean a better system. We replace bad systems with worse ones all the time,” Olson said. (He didn’t return a request for comment, by the way.)

The question I’d ask is how much of the new system is really the old?

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Pour le PDG de Brave, la folie des NFTs ressemble aux débuts d’Internet

Le PDG et fondateur du navigateur Brave, Brendan Eich, compare le secteur des tokens non fongibles (NFTs) aux débuts d’Internet. Ce dernier estime que les escroqueries autour des NFTs sont un mal nécessaire et font partie de l’évolution du Web.

L’article Pour le PDG de Brave, la folie des NFTs ressemble aux débuts d’Internet est apparu en premier sur Cryptoast.

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Coachella Music Festival to Launch Solana NFTs in Deal With FTX

The Coachella Valley Music & Arts Festival, set to return this April after a two-year hiatus, has announced a series of NFTs (non-fungible tokens) offering on-site perks and VIP access to the event.

It’s part of a “long-term” partnership with FTX, festival officials said in a press release. FTX is the crypto exchange helmed by billionaire Sam Bankman-Fried that recently snagged a $32 billion valuation (and an $8 billion valuation for its U.S. arm).

Coachella is launching three collections at different price points, all of which are built on Solana, a relatively eco-friendly blockchain with lower fees than Ethereum. FTX introduced a Solana-based NFT marketplace last October.

The first set, called the Coachella Keys Collection, consists of just 10 tokens, each offering lifetime festival access and other VIP goodies (among them, a “celebrity chef dinner”). There’s also the Desert Reflections Collection – 1,000 tokens priced at $180 each, which buyers can redeem for a physical copy of a Coachella photo book – and the Sights and Sounds Collection, which mostly just gets you the token and audiovisual accompaniment. The Sights and Sounds NFTs are priced at $60 each, and will launch in an edition of 10,000.

“Only blockchain technology can give us the unique ability to offer tradeable lifetime passes to Coachella for the first time ever,” Coachella Innovation Lead Sam Schoonover said in a statement.

Coachella – headlined this year by Harry Styles, Billie Eilish and Kanye West – isn’t the first music festival to experiment with crypto. This past year, New York’s Governor’s Ball offered NFTs through a partnership with Coinbase.

According to a press release, an undisclosed portion of the proceeds from Coachella’s NFTs will go to three charities: GiveDirectly, Lideres Campesinas and Find Food Bank.

In an attempt to get ahead of anticipated backlash, FTX has also purchased 100,000 tons of carbon offsets.

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Diem May be Gone, but Its Legacy Lives On

The Diem Association will wind down its operations in the coming weeks after selling its assets to Silvergate Bank. It’s time to revisit the chief legacy it leaves behind: A more involved regulatory framework than it may have intended.

You’re reading State of Crypto, a CoinDesk newsletter looking at the intersection of cryptocurrency and government. Click here to sign up for future editions.

Bonum noctis

The narrative

The Facebook-backed Diem Association is shutting down operations, just two and a half years after it was revealed to the world as Libra.

Why it matters

We’re talking about Diem again, not because it is interesting – I’m not saying it isn’t,  that’s just not the point of today’s newsletter – but because the regulations that will potentially be implemented as a result of this project are fascinating to think about.

Breaking it down

Where do I even start?

Diem, formerly known as Libra, has reached an untimely end. It announced last night that it will begin unwinding its businesses days after various news outlets reported that it was in talks with Silvergate Bank to sell off its assets and technology to repay investors. Silvergate confirmed the deal last night.

Under the terms of the deal, Silvergate paid $50 million in cash and gave another $132 million in Class A shares, which Diem will use to repay investors. In turn, Silvergate will get all of Diem’s intellectual property and technology tooling, which it will use to help launch a stablecoin by the end of the year.

I wrote a complete timeline documenting Diem’s history back in April 2020, and it’s updated through this week’s news. You can read it here.

For a project that never got off the ground, Libra has a remarkable legacy. Arguably, every major piece of stablecoin regulation or legislation proposed over the past two and a half years has been tinged with the idea that a company, somewhere, might decide to create its own stable value currency based on blockchain technology. We’ve seen this in recommendations from the Bank for International Settlements to China’s central bank digital currency to the U.S. President’s Working Group for Financial Markets report on stablecoin regulation.

The House Financial Services Committee and Senate Banking Committee both plan to hold hearings on the PWG report this month. While we don’t have a lot of details yet, it’s safe to say the hearings will be a prelude to legislation on stablecoins. Elsewhere in the world, we’re seeing regulators start to implement rules on stablecoins.

Diem engaged with regulators throughout its life.

« As we undertook this effort, we actively sought feedback from governments and regulators around the world, and the project evolved substantially and improved as a result, » Diem CEO Stuart Levey said in a statement announcing the shutdown. « In the United States, a senior regulator informed us that Diem was the best-designed stablecoin project the U.S. government had seen. »

Levey also mentioned the PWG report, saying it validated the project’s « code design features, » including how it addresses stablecoin transfer risks.

The thing is, the original Libra vision of a basket-backed stablecoin was dead long before the association rebranded to Diem. Today, one could draw a comparison to tether (USDT) or US dollar coin (USDC) in that they are now backed by baskets of assets, though not baskets of currencies. They aren’t quite the same, but they are probably similar enough. The chief concerns were how the libra stablecoin might affect financial stability, how it might be used and whether users were protected. The same questions apply to stablecoins backed by baskets containing securities or other cryptocurrencies.

The big difference –  and I want to revisit this more in depth in a future issue – is that Facebook was involved. Lawmakers and regulators were aware of stablecoins, but didn’t really care about them as an imminent threat.

Facebook announced Libra in a carefully managed press event. Reporters flew to San Francisco for embargoed briefings, press releases and technical documents were shared under prearranged agreements not to publish before a specific time, and swarms of reporters spent time trying to unpack what was being announced.

Libra, and later Diem, was never able to overcome Facebook’s shadow, however much everyone involved with the project tried to draw a clear distinction.

For a parting thought, imagine how much regulatory brain power has been dedicated to this project over the past 30 months. It’s a lot! Surreal to imagine almost.

The FinCEN rule rises

The infamous unhosted wallet rule is once again on the Treasury Department’s radar. The department published its semiannual agenda over the weekend, detailing its priorities over the next six months.

The unhosted wallet rule first proposed in December 2020 was on the document, implying that Treasury (or the Financial Crimes Enforcement Network, the ostensible sponsor) is looking at the rule.

At first blush, this would seem to be another attempt at bringing forth know-your-customer rules for self-hosted/user-hosted/what-have-you wallets. Treasury, however, may just be keeping the rule alive just in case it does want to eventually get back to wallet rules.

The rule appears in previous semiannual agendas as well, but Treasury didn’t make any move on the rule last year.

The important details: Treasury bifurcated the rule in early 2021. The rule received enough comments the last time that a whole new comment process may need to kick off before Treasury can finalize or adopt the counterparty data collection provision or the overall rule as originally proposed. If Treasury just wants to adopt the currency transaction report provision (which would bring crypto reporting rules in line with current cash rules), there may not be much opposition.

What’s more, I’m told FinCEN may still not want the counterparty provision in its current form.

Long story short, this rule has made a reappearance, but there’s no real sign it will move forward just yet.

Biden’s rule

Changing of the guard

The Senate Banking Committee will hold a nomination hearing for Federal Reserve Board nominees Sarah Bloom Raskin, Lisa DeNell Cook and Philip Nathan Jefferson on Thursday.

It’s also the last week for Jelena McWilliams, chairwoman of the Federal Deposit Insurance Corp. (FDIC), who announced on New Year’s Eve that her resignation would be effective on Feb. 4.

Elsewhere:

Mastercard’s CipherTrace Used ‘Honeypots’ to Gather Crypto Wallet Intel: Crypto analytics firm CipherTrace said it uses “honey pots” in a slide deck Chief Operating Officer Stephen Ryan emailed to former Treasury Secretary Steven Mnuchin in 2020, according to emails obtained through a public records request. My colleague Danny Nelson digs in as part of CoinDesk’s Privacy Week series.How Binance, Coinbase and 22 Other Crypto Exchanges Handle Your Data: Another excellent Privacy Week story, this one by my colleague Anna Baydakova, looked at the privacy policies of 24 different crypto exchanges. In particular, she looked at what exchanges say about how they store personal financial data, what data they provide to third parties, what they share with governments, how long they store data and how they protect data, among other issues.Anchorage Closes in on FDIC Crypto Custodian Deal, Documents Show: Crypto custodian Anchorage is in the final stages of bidding for a contract with the FDIC to act as the custodian and disposal vendor for digital assets held by failed banks covered by the FDIC’s insurance, according to a Freedom of Information Act request filed by CoinDesk’s Sam Reynolds.

Outside CoinDesk:

(Blockworks) Twitter rolled out its NFT (non-fungible token) integration a few weeks ago. Blockworks’ Morgan Chittum found that the integration checks only if someone is connecting an actual NFT, i.e. something listed on OpenSea as being a receipt on Ethereum pointing to something. It does not check to see if the NFT is an original, or if someone just saved the image of an NFT, minted it as a new NFT, and connected that.(The New York Times) The New York Times’ Emily Flitter asks if crypto is in a bubble and whether it might burst. The analysis and the data are worth a read.(Eyewitness News Bahamas) Deltec National Bank and Trust, Tether’s bank, has bought another bank: Ansbacher Ltd., the Bahamas’ oldest bank, according to a local news outlet.(The New Yorker) I mean, Alex isn’t wrong.

Here’s the deal with Tom Brady: he will not retire until his successor is confirmed by the Senate.

— Jeff Greenfield (@greenfield64) January 29, 2022

If you’ve got thoughts or questions on what I should discuss next week or any other feedback you’d like to share, feel free to email me at nik@coindesk.com or find me on Twitter @nikhileshde.

You can also join the group conversation on Telegram.

See ya’ll next week!

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Why India Isn’t Buying NFTs (Yet)

2022 is expected to be the year of non-fungible tokens (NFTs). At $40 billion, the global market capitalization for NFTs is inching closer to the entire global art market cap of $50 billion. However, one of the potentially largest markets for NFTs – India – is facing teething troubles.

Indian experiments with NFTs have grown rapidly in the last eight months or so. In June 2021, WazirX, India’s largest cryptocurrency exchange, launched an NFT marketplace predominantly for Indian artists. In the time since, multiple Bollywood celebrities and sports stars have launched NFTs. The largest global NFT sale to date, the $69 million Beeple sale, was incidentally also purchased by a buyer of Indian origin, Vignesh Sundaresan, also known as MetaKovan. But oddly enough, Indians have not started buying into NFTs just yet.

The supply and demand gap

There is a fairly large supply and demand gap in the Indian NFT market. NFT creators here are proliferating while collectors remain nonexistent. Both sides paint a different picture of how they see the NFT opportunity in India.

From the creator perspective, opportunity abounds. The talent landscape for art and digital art in India is vibrant – from graphic designers and illustrators, to specialized visual effects (VFX) artists working for Hollywood and Bollywood, to a rich traditional art heritage spanning many diverse styles. The young and savvy have already taken to the NFT space and the numbers are growing. WazirX has an active Indian creator community of 1,300 artists and has a waitlist of 20,000 artists waiting to be onboarded into the marketplace.

SamosaRani is one such successful creator with over 18 NFT sales and three collections under her belt across OpenSea and other markets. An art therapist and artist for two decades, she has found a great niche for her art in the NFT space. However, none of her dedicated collectors are Indian, and only a small fraction of her one-off buyers are from India. « Finding collectors is a difficult task for most Indian artists, » she told me.

Read more: India Edges Toward Crypto Legalization With 30% Tax, Announces Digital Rupee

Interestingly, Indian NFT creators have migrated into becoming NFT collectors and traders. CreatiWitty, a top performer on the Kalamint platform, started off as a creator but now spends 100% of his time flipping NFTs. His story is the kind that motivates many artists across the country to enter the NFT space. He used to be a freelance graphic designer in a small town in the Indian state of Gujarat, designing logos and branding for companies. “It used to take me three days to design logos with customers complaining and constantly needing changes. Now, in a matter of minutes, I can flip an NFT and earn two times, three times what I used to make with three days of effort,” he said in an interview.

From a mass adoption perspective, however, NFT collectibles are not quite finding a product market fit in India. A limited set of Indian collectors leverage NFTs for speculative uses. This small Indian collector community cites a preference for high liquidity NFTs, with PFP (photo for profile) art and photos as the best performing categories.

Sandeep Sangli, the founder of NFT platform Kalamint said: “Historically Indians have not been collectors. Art is something Indians haven’t really warmed up to as an asset class. For NFTs to work in India they need to have utility.”

Indeed, different players in the market are coming to terms with the real value in India being for utility-based NFTs. Sangli said one of the higher performing segments in Kalamint is for brands and entrepreneurs to cross promote and sell NFTs that can be redeemed on their site for goods. WazirX experimented selling NFT tickets for a music festival in its marketplace. These sold out in record time.

Enter Bollywood

It is not for lack of trying that NFT collectibles have not taken off. Bollywood and cricket are two rich cultural categories, and it was only natural that celebrities in both spheres gravitated towards NFTs. Between June and December 2021, several movie stars and cricket players released NFTs. But these launches saw a relatively lukewarm response.

Amitabh Bachhan, Bollywood’s biggest superstar, affectionately known as “Big B,” launched an NFT collection with several thoughtful collectibles, including poem readings and even a Big B CryptoPunk. The entire collection sold for just under $1 million. While this is not bad, it does not compare to big ticket NFT sales we have seen around the world, especially given that Big B is India’s biggest superstar by a mile with cross-generational appeal. Single CryptoPunks (the original must-have NFTs) have sold for many multiples of this, from $3 million to $12 million. The sale also pales in comparison to NFTs by other celebrities. Mila Kunis’ Stoner Cats collection, which gave access for a series that has not even launched, pulled an easy $8 million.

Celebrities are now expanding beyond pure NFTs into full metaverse plays. One of the first to experiment deeply with this has been Bollywood star Kunal Kapoor who is now building out the LoveABot/LABverse project. “I wanted to do something to change the narrative around the tech dystopia and a tech-driven future that we fear,” he told me. He is on a mission to build a creative metaverse for technologists where a tech-positive narrative can be created.

Another actor, Rana Daggubati, of the iconic “Baahubali” movie franchise, is venturing into an ambitious Indian metaverse, with the Ikonz project. CEO Abhinav Kalidindi believes that “we need to drive a change in mindset, but with it, India would be one of the largest metaverse and NFT markets in the world.”

Read more: India’s Millennials Embrace Digital Gold Despite Proposed Bitcoin Ban

It has placed a bet on a unique metaverse with Indian characteristics, having secured IP rights to the “Baahubali” franchise, as well as widely read and loved Indian comic brands, “Tinkle” and “Amar Chitra Katha.” But in line with experience from other Indian projects, Kalidindi said “building NFTs with utility at value-conscious price for Indians” will be key to their success.

Name of the game

With this backdrop to India’s budding NFT sector, all stakeholders are now looking to India’s gaming sector for that ultimate product market fit with NFTs. India’s gaming sector has exploded in the last year, recording 170% growth between 2020 and 2021 alone, and the market is expected to triple by 2025. With over 450 million gamers, industry players are betting this will create the right growth market for NFTs.

Indian creators and collectors have started looking into gaming NFTs. Some interviewees have already started experimenting with gaming skins and related NFTs. They often presell NFTs that will be used in games as a form of fundraising. “With enough hype around these games, we see a lot of collectors buying ahead and flipping these NFTs,” said Kalamint’s Sangli. He believes a gaming and content utility might be the most preferred by Indians.

Ikonz’s Kalidindi put it accurately when he said, “NFT collectibles may have value globally but not for Indians. Crypto gaming is massive and in India play-to-earn games do really well. This is where India might find the right product market fit for NFTs.”

As experimentation in the country accelerates, it will be interesting to see how Indian attitudes to NFTs evolve.

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Le bitcoin (BTC) grimperait à 406 400 dollars d’ici à 2030

Selon un communiqué de presse publié par le site de comparaison Finder.com le 27 janvier, 33 spécialistes du domaine de la FinTech, des cryptomonnaies et des NFT « pensent que le BTC culminera à 93 717 dollars en 2022 en moyenne, avant de terminer l’année à 76 360 dollars ». Un pic à plus de 93 000 dollars est espéré Si en début d’année, les […]

L’article Le bitcoin (BTC) grimperait à 406 400 dollars d’ici à 2030 est apparu en premier sur Cointribune.

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