Ornella Hernandez

Instagram has begun testing out its NFT marketplace by offering a select group of US creators on Instagram the opportunity to sell the digital collectibles directly via Meta’s social media platform.



Blockworks spoke to one of those creators, Refik Anadol, whose series of so-called artificial intelligence (AI) data paintings, or software-based artworks, sold out on Monday after only a few minutes.&nbsp;



His collection called Sense of Healing: AI Data Paintings — 20 editions of four collectibles — is one of the first non-fungible tokens to sell on Instagram. In total, the collection raised nearly $80,000 for the Alzheimer’s Foundation.



A Turkish-American Ethereum miner turned NFT artist, Anadol said that <a href="https://blockworks.co/news/meta-pins-web3-hopes-on-instagram-creators-minting-nfts" target="_blank" rel="noreferrer noopener">listing an NFT on Instagram</a> is “as easy as adding a post.”&nbsp;



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Blockworks: Tell us about how the partnership with Meta started and about your new collection.&nbsp;



Refik: I coined the term data painting in 2008, and I’ve been working as an AI artist since 2016 trying to create a social impact as much as possible. When the Meta team and Instagram said, ‘hey, we are doing this new creator economy move,’ of course I said yes to the experiment.


<div class="wp-block-image">
<figure class="alignright size-full"><img decoding="async" loading="lazy" width="300" height="294" src="https://blockworks-co.imgix.net/wp-content/uploads/2022/11/Instagram-nft-300.jpg" alt="" class="wp-image-39886" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2022/11/Instagram-nft-300.jpg?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2022/11/Instagram-nft-300.jpg?w=262 262w, https://blockworks-co.imgix.net/wp-content/uploads/2022/11/Instagram-nft-300.jpg?w=266 266w, https://blockworks-co.imgix.net/wp-content/uploads/2022/11/Instagram-nft-300.jpg?w=223 223w, https://blockworks-co.imgix.net/wp-content/uploads/2022/11/Instagram-nft-300.jpg?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2022/11/Instagram-nft-300.jpg?w=50 50w" sizes="(max-width: 300px) 100vw, 300px" /><figcaption>Refik Anadol &#8220;data painting&#8221;</figcaption></figure></div>


We trained more than one hundred AI models for this project. We worked in collaboration with an amazing neuroscience company called MindMaze to create a dataset representing how the human mind heals. So these are very positive representations of how the human mind becomes better.



This summer, I took this data and created one piece, which was auctioned at UNICEF for 1.7 million euros. For Instagram, I took four still AI data paintings from this unique series using the same technology — <a href="https://en.wikipedia.org/wiki/Functional_magnetic_resonance_imaging" target="_blank" rel="noreferrer noopener">FMRI</a>, DTI and EEG data sets transformed into an AI data painting.



Blockworks: If your collection is resold on a secondary marketplace, 10% of the resale value will go to you. Are you choosing to collect royalties? And what is your take on marketplaces that have gone royalty-optional?



Refik: This drop is completely donated to the Alzheimer&#8217;s Foundation. So I&#8217;m not getting any personal benefit from this. It’s more about transforming this amazing moment to something more powerful than just personal income.



[Meta] allows a creator to select ​their royalties starting from the minimum five percent, which is amazing because the secondary market is another powerful economy. It’s very important for the creators because it&#8217;s where the wider economy shares more directly.&nbsp;



Why do we need this? Because in the last centuries, the entire art market was not based on royalties. The whole movement started because of this powerful chance of getting this income. So it&#8217;ll be very sad to go back to the last century.



Blockworks: Given the current market conditions, what kind of utility are people now expecting from NFT projects?



Refik: When the artist has a journey, his or her life is a utility. For example, when my works are collected by my collectors, I invite them to special openings and special previews — the utility is being special, being a part of the artist’s journey. I think that’s enough as a means of utility. Our idea is to bring more technology and innovation into the metaverse as an experiential world and let our collectors become a part of a new universe that they have invested in.



Blockworks: Do you think that Meta and Instagram are the right platforms to work with in order to accomplish that?



Refik: Meta has this clear vision that they fully believe in the metaverse and that they are creating the metaverse. So I think it&#8217;s a perfect partner for unfolding this narrative to a larger audience. Instagram is a public space. Instagram is truly accessible to the world. I think it&#8217;s a very great time to create these mainstream connections and make people aware of this new movement.&nbsp;



Blockworks: What is your opinion on the future of NFT technology and any benefits it adds to an artist?



Refik: It&#8217;s an incredible technology that will bring a lot of inclusive — hopefully — discussions. First of all, I think NFTs are just a technology, a tool. But I think what we do with that, what we create, instills the value of the art itself. But the technology is incredibly open and very welcoming for anyone, technically, in the world. And that openness, egalitarian side of things is incredibly exciting. There&#8217;s no door or a gate to push open — it&#8217;s just there.&nbsp;



Now it&#8217;s time to dive deep into the art context. It&#8217;s an intellectual time. The question now is —&nbsp;



What else can we do with [the technology]? I&#8217;ve very much been focusing on giving back to charities. We donated more than $5 million in the last two years to charities. But we also do public art free that is open to everyone.



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Q&A: Artist Refik Anadol on AI-based NFTs for Instagram

Sebastian Sinclair

<div id="highlights-block_62ff4cb5b670c" class="highlights">
 <ul>
 <li>Around $54 million from the fund has been spent on rifle scopes, vests, helmets and tactical backpacks</li>
 <li>The lion&#8217;s share, around $11 million, went to unmanned aerial vehicles</li>
 </ul>
 
</div>



One of Ukraine’s nonprofit war funds has spent $54 million of its crypto donations on military hardware as the country enters its 25th week since Russia invaded.



Vice Prime Minister of Ukraine and Minister of Digital Transformation, Mykhailo Fedorov, <a href="https://twitter.com/FedorovMykhailo/status/1559923193581899777?s=20&amp;t=-izR85p4Ojyx5CazByqEfA">tweeted</a> Thursday a breakdown of the fund’s costs on purchases made for helmets and digital rifle scopes, among other equipment.



The lion&#8217;s share, around $11 million, went to unmanned aerial vehicles, followed closely by armor vests, computer hardware and software.



“Thanks to the crypto community for support since the start of the full-scale invasion,” the minister tweeted.



Donations have been made to the nonprofit “Aid For Ukraine” which is operated by Ukraine’s Ministry of Digital Transformation. The crypto payment rails are being facilitated by crypto exchange FTX, Ukraine’s Kuna Exchange and staking provider Everstake. The fund was <a href="https://cms.blockworks.co/ukraine-cancels-proposed-airdrop-after-receiving-record-donations/">first set up</a> in March.



“Despite the &#8220;bear market&#8221; crypto has become an essential tool of Ukraine&#8217;s defense providing flexibility and speed that literally saved our soldiers&#8217; lives,” Alex Bornyakov, Ukraine’s Deputy Minister of Digital Transformation <a href="https://twitter.com/abornyakov/status/1551842998140502017?s=20&amp;t=VwGBfFMn-x8qbnv9whEiZg">tweeted</a> in late July. “Every ‘crypto winter’ leads to a ‘crypto spring’, but the industry is here to stay.”



Donations can be made using bitcoin, ether, USDT, solana and polkadot, among others. Funds raised are directed to humanitarian aid programs and Ukraine’s armed forces.



<h3>Crypto donations background</h3>



The crypto community — which began donating at the outset of the invasion — has so far raised more than $60 million for the fund, according to the nonprofit’s <a href="https://donate.thedigital.gov.ua/">website</a>.



Russia crossed over Ukraine’s territory on February 24 following weeks of troop build-up along the country’s borders, prompting global condemnation against Russia, including economic sanctions spearheaded by the US.



Ukraine, a crypto-friendly nation, <a href="https://cms.blockworks.co/ukraines-president-zelensky-signs-legal-framework-for-crypto/">legalized digital assets</a> this year following Russia’s invasion with the passing of its law “On Virtual Assets” in February that was later ratified by the country’s president, Volodymyr Zelenskyy, in March.



The law set in motion a formal framework for the establishment of a legal market for digital assets and established a licensing regime and regulatory oversight. The law coincides with donations from the crypto community, said to be in the <a href="https://www.economist.com/the-economist-explains/2022/04/05/how-is-ukraine-using-crypto-to-fund-the-war">hundreds of millions</a>.



See-sawing crypto prices have negatively impacted the overall purchasing power Ukraine requires to store up its ammunition and supplies. The country did make a separate $58 million dollar purchase before the latest major “drop” in June, Bornyakov told <a href="https://twitter.com/CoinDesk/status/1552353329602301965?s=20&amp;t=VwGBfFMn-x8qbnv9whEiZg">CoinDesk</a>.



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Ukraine Fund Spends $54M of Crypto Donations on Military Gear

<div id="highlights-block_62de12a0846f0" class="highlights">
 <ul>
 <li>The state of California has overturned a near four-year ban against political crypto donations</li>
 <li>Crypto contributions will need to be verified via a name, address and other revealing details</li>
 </ul>
 
</div>



California&#8217;s political campaign financing watchdog approved measures Thursday allowing state and local offices the right to raise funds using crypto once more.



<a href="https://www.fppc.ca.gov/content/dam/fppc/NS-Documents/LegalDiv/Regulations/Index/Chapter2/18215.4%20Cryptocurrency%20Contributions.pdf" target="_blank" rel="noreferrer noopener">Previous regulation</a> had denied political campaigners the right to raise or receive funds via crypto. The ruling was <a href="https://www.fppc.ca.gov/content/dam/fppc/NS-Documents/LegalDiv/Regulations/ProposedRegs/18215.4ada.pdf" target="_blank" rel="noreferrer noopener">repealed</a> in late May. 



Thanks to a recent vote by California&#8217;s Fair Political Practices Commission (FPPC), those running for office may now receive funding in the nascent asset class — provided it&#8217;s converted to fiat immediately.



The FPPC&#8217;s motion on &#8220;Regulation 18421.2 Cryptocurrency Contributions,&#8221; put forth last month, reverses a ban implemented during crypto&#8217;s prior bear market in November 2018. 



An unrelated <a href="https://www.ncsl.org/Portals/1/Documents/Elections/Contribution_Limits_to_Candidates_2020_2021.pdf" target="_blank" rel="noreferrer noopener">financial limit</a> on campaign contributions remains in place for California, which now joins 12 other states and the District of Colombia in approving crypto donations.



Concerns over how crypto could interfere with campaign transparency led the FPPC to deny its use for political campaigns, though the digital asset industry has since matured significantly since the almost four-year ban.



&#8220;In drafting this legislation, we had to address the inherent concerns with cryptocurrency and the opportunity it presents for illegal contributions,&#8221; FPPC&#8217;s general counsel David Bainbridge said in a live-streamed <a href="https://www.youtube.com/watch?v=0RrKHvIh0W8&amp;t=8321s&amp;ab_channel=CAFPPC" target="_blank" rel="noreferrer noopener">commission meeting</a> on Thursday.



Political donations made using crypto must be conducted via a US-based crypto payments processor or &#8220;other service&#8221; with strict know-your-customer measures and answerable to subpoena requests for records.



Anonymous donations in crypto to political committees will be barred and those individuals contributing will be subject to identification constraints including the collection of names, addresses, occupations, and employers of each contributor at the time the donation is made.



&#8220;The campaign committee is responsible for all reporting,&#8221; an FPPC spokesperson told Blockworks in an email when asked if politicians and political candidates would need to obtain the identification of the donor. &#8220;It would still be required to have the name of the donor who contributed in crypto.&#8221;



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California Overturns Ban on Political Crypto Donations

Ben Strack

<div id="highlights-block_623dfd049bcd4" class="highlights">
 <ul>
 <li>Donations will go to the International Red Cross Red Crescent Movement to be shared with Ukrainians</li>
 <li>Crypto.com will match the total amount in donations, up to $1 million</li>
 </ul>
 
</div>



The crypto company that has been aggressively pushing its brand into the mainstream over the past year is now set to run an advertisement during the Oscars, Blockworks has learned.&nbsp;



Crypto.com has created a television commercial to raise funds for people affected by the crisis in Ukraine. It will air multiple times during the live broadcast of the 94th Academy Awards on Sunday night at 8 p.m. ET.



Ukraine last week <a href="https://cms.blockworks.co/ukraines-president-zelensky-signs-legal-framework-for-crypto/" target="_blank" rel="noreferrer noopener">clarified crypto’s legal status</a> with a new law signed by President Volodymyr Zelenskyy. Ukraine’s “On Virtual Assets” law came as <a href="https://cms.blockworks.co/donations-of-crypto-assets-to-ukraine-reach-19m/" target="_blank" rel="noreferrer noopener">crypto donations</a> have continued to flow into the country following Russia’s military invasion on Feb. 24.



Crypto.com CEO Kris Marszalek said in <a href="https://twitter.com/kris/status/1497422311498027009" target="_blank" rel="noreferrer noopener">a Feb. 25 Twitter post</a> that the company had donated $1 million to <a href="https://www.ifrc.org/international-red-cross-and-red-crescent-movement" target="_blank" rel="noreferrer noopener">the Red Cross Red Crescent</a>. 



“Our thoughts are with the people of Ukraine and innocent bystanders in the ongoing conflict,” he tweeted at the time. “We urge our community to do what they can to support humanitarian efforts.”



As Russia’s attack on Ukraine has escalated, Crypto.com now seeks to raise more funds and awareness to support the organization’s work. Donations will be used to provide food, water, medicine, shelter and other essential items for people in the country.



Viewers of the ad will be directed to <a href="https://crypto.com/donate" target="_blank" rel="noreferrer noopener">the campaign page</a>, where they can donate with crypto, fiat, or by buying an NFT from the campaign collection.&nbsp;



<a href="https://crypto.com/nft/drops-event/48e2851dc9933a736d2c6b83cce57195" target="_blank" rel="noreferrer noopener">The NFT collection</a>, called “The Art of Giving,” features artwork by Crypto.com and 33 independent artists. There are 40 NFTs in total being sold for between $50 and $100.&nbsp;



The campaign runs from March 25 to March 31. Crypto.com will match the total amount in donations, up to $1 million.&nbsp;



The efforts come as Crypto.com’s brand has become more visible in recent months. Founded in 2016, <a href="https://cms.blockworks.co/crypto-com-cmo-on-how-company-went-from-app-to-global-brand/" target="_blank" rel="noreferrer noopener">the company has grown</a> to having more than 10 million customers amid its aggressive marketing spend. 



Crypto.com bought the naming rights to the Staples Center in Los Angeles last November, as part of a 20-year, $700 million deal, and ran an ad <a href="https://cms.blockworks.co/super-bowl-ads-spark-public-interest-coinbase-site-crashes-from-traffic/" target="_blank" rel="noreferrer noopener">during the Super Bowl</a> in February that starred four-time NBA champion LeBron James.



The company <a href="https://cms.blockworks.co/crypto-com-adds-fifa-world-cup-sponsorship-to-sports-marketing-strategy/" target="_blank" rel="noreferrer noopener">announced earlier this week</a> that it would be a sponsor for the 2022 FIFA World Cup, which is set to take place in Qatar in November and December.



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Crypto.com to Run Ad During Oscars in Support of Ukraine

<div id="highlights-block_621c28c83e2bd" class="highlights">
 <ul>
 <li>One NGO is reported to have received a single donation worth $3 million in bitcoin</li>
 <li>Russia is also reportedly using crypto to bypass West-imposed sanctions</li>
 </ul>
 
</div>



Cryptocurrency donations to the government of Ukraine have reached almost $19 million as the country continues to resist an invasion from a much larger Russian state, according to blockchain data analytics firm Elliptic.



Ukraine&#8217;s government and other non-governmental organizations (NGOs) providing military assistance have raised as much as $18.9 million, the firm reported in an updated <a href="https://www.elliptic.co/blog/live-updates-millions-in-crypto-crowdfunded-for-the-ukrainian-military" target="_blank" rel="noreferrer noopener">blog post</a> on Sunday.



Thousands of crypto donations began pouring into Ukrainian coffers amid the onset of the Russian invasion, which sparked a humanitarian crisis and drew condemnation from Western powers, including the US and the EU.



<blockquote class="wp-block-quote">&#8220;Cryptoassets such as bitcoin have emerged as an important alternative crowdfunding method,&#8221; Elliptic said. &#8220;They allow quick, cross-border donations, which bypass financial institutions that might be blocking payments to these groups.&#8221;</blockquote>



Ironically, Washington is also reportedly considering crypto sanctions for fear Russia may use decentralized currencies to <a href="https://cms.blockworks.co/as-ukraine-crisis-underscores-bitcoin-as-risk-asset-volatility-may-be-here-to-stay/" target="_blank" rel="noreferrer noopener">bypass sanctions</a> imposed by Western nations, including the West&#8217;s move on Saturday to boot major Russian banks from the SWIFT interbank network.



<blockquote class="wp-block-quote">&#8220;This isn&#8217;t actually the first time that crypto fundraising has been used in this conflict,&#8221; Elliptic co-founder Tom Robinson told Blockworks. &#8220;Russian fundraising campaigns have requested crypto donations to support separatists in the Donbas region, although they didn&#8217;t manage to raise much.&#8221;</blockquote>



Mykhailo Fedorov, Ukraine&#8217;s vice prime minister and minister of digital transformation, <a href="https://twitter.com/FedorovMykhailo/status/1497922588491792386?s=20&amp;t=Dnpz3_VlavOB59KHqNoJwg" target="_blank" rel="noreferrer noopener">tweeted</a> a request late Sunday urging major crypto exchanges to block addresses belonging to Russian users.



&#8220;It&#8217;s crucial to freeze not only the addresses linked to Russian and Belarusian politicians but also to sabotage ordinary users,&#8221; Fedorov said.



Blockworks attempted to contact Elliptic on that point but did not receive a reply by press time.



On Feb. 24, Russia&#8217;s President Vladimir Putin ordered troops into Eastern Ukraine as part of a &#8220;military operation&#8221; that followed weeks of encirclement by Russian military personnel along Ukrainian borders.



Pleas for financial and military assistance from Ukrainian President <a href="https://edition.cnn.com/europe/live-news/ukraine-russia-news-02-27-22/h_9ffa23d19f5bde298a75a3e2be13e13d" target="_blank" rel="noreferrer noopener">Volodymyr Zelenskyy</a> appear to have been met, in part, by the crypto community seeking to shoulder some of the economic costs of Ukraine&#8217;s armed conflict.



On Saturday, Twitter accounts belonging to the Ukrainian government <a href="https://twitter.com/Ukraine/status/1497594592438497282" target="_blank" rel="noreferrer noopener">appealed</a> to the national community for financial assistance in crypto donations.



&#8220;Stand with the people of Ukraine,&#8221; one official tweet reads. &#8220;Now accepting cryptocurrency donations. Bitcoin, Ethereum and USDT.&#8221; 



Donations to the two addresses provided in the tweet have so far received $12.1 million across 15,947 transactions. 



That figure included a single donation worth $1.86 million from NFT sales originally intended to raise funds for Australian activist Julian Assange, per the post.



A further $4.94 million in donations include those made to Ukrainian NGO Come Back Alive, as well as NFT (non-fungible token) donations such as <a href="https://opensea.io/assets/0x608c2feb6b80993b26ffb6fa84f454ad3ac38bf0/1189" target="_blank" rel="noreferrer noopener">Goat Soup #1189</a>, valued at roughly $293, the firm said. Patreon has suspended Come Back Alive&#8217;s crowdfunding page on Thursday claiming the NGO had <a href="https://www.theverge.com/2022/2/25/22950408/patreon-ukraine-russia-come-back-alive-military-assistance" target="_blank" rel="noreferrer noopener">violated its policies</a> by collecting funds for military activity.



One NGO is reported to have received a single donation worth $3 million in bitcoin, though the firm did not expressly state the recipient organization.



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