Shalini Nagarajan

<div id="highlights-block_6344051f1cd17" class="highlights">
 <ul>
 <li>The impacted Dapper accounts haven’t been closed but services are restricted</li>
 <li>Dapper’s move is in line with the EU’s tightening Russian crypto ban</li>
 </ul>
 
</div>



Dapper Labs, the Web3 startup behind <a href="https://cms.blockworks.co/nba-top-shot-creator-raises-725m-fund-to-grow-flow-blockchain-usage/" target="_blank" rel="noreferrer noopener">NBA Top Shot</a>, has imposed a near-complete ban on Russian users in a bid to stay inline with fresh sanctions on the country.



“It is now prohibited to provide cryptoasset wallet, account, or custody services of any value to accounts with connections to Russia, irrespective of the amount of the wallet,” Dapper Labs said in a <a href="https://support.meetdapper.com/hc/en-us/articles/5486302427795-Restrictions-Affecting-Collectors-in-Russia" target="_blank" rel="noreferrer noopener">statement</a> last week.



The Vancouver-based blockchain company said the move was a result of a directive from its payment processing partner, which is subject to European Union regulations. 



On Oct. 6, the EU confirmed a <a href="https://ec.europa.eu/commission/presscorner/detail/en/ip_22_5989" target="_blank" rel="noreferrer noopener">sweeping ban</a> on providing crypto services to Russia as part of its eighth round of sanctions against the country for its aggression in Ukraine. 



The Dapper wallet is a custodial wallet for digital assets on Dapper Labs’ Flow blockchain, originally launched in 2020 as a gaming-focused network but now underpins a raft of NFT-centric projects.



The wallet supports NFT offerings NBA Top Shot, Allday, UFC Strike, CryptoKittes, which implies they will all be affected by the ban.&nbsp;



Under new measures, the bloc tightened a previous rule that restricted crypto payments to and from Russian accounts up to 10,000 euros ($9,727). The threshold has now been removed, banning all cryptoasset wallets, accounts or custody services.



<h3 class="wp-block-heading">Dapper Labs NFTs still ‘belong’ to Russians — they just can’t move them</h3>



Despite Dapper Labs stating it could no longer offer custody services to Russia-based users, the firm says those affected can still view and access their NFTs via its wallet, as it has only suspended accounts — not deleted them.



Dapper Labs says this means any NFT previously purchased by an affected Russian user still belongs to them. 



Blockworks has reached out to Dapper Labs to confirm whether the Flow blockchain itself would actively censor Russia-based users and will update this piece as we hear back.



“Any Moments you own and any Dapper Balance continue to be your property,” the company said in its blog post, referring to the blockchain-based collections that users hold.



But they can’t buy, sell or gift any NFTs, even by using their existing account balances.



The EU believes its crypto clampdown is warranted as the previous 10,000 EUR cap wasn’t effective. Its sanctions are “imposing a direct cost on Russia for its war of aggression and damaging Russia&#8217;s industrial and economic ability to wage war, manufacture more weapons, and repair existing weapons systems.”



Although Western powers have adopted several rounds of sanctions since Russia invaded Ukraine in February 2022, Moscow has not indicated a possible diplomatic solution. 



On Monday, <a href="https://www.aljazeera.com/news/2022/10/10/explosions-rock-ukraine-capital-kyiv-in-apparent-missile-strikes" target="_blank" rel="noreferrer noopener">massive explosions</a> shook Ukraine&#8217;s capital Kyiv and other cities in apparent revenge attacks.



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Dapper Labs NFT Wallet Restricts Russian Users After EU Sanctions

<div id="highlights-block_62fdf3f6f32c7" class="highlights">
 <ul>
 <li>Flow expects to launch its business in 2023</li>
 <li>a16Z previously invested in Neumann’s blockchain-based carbon credits platform Flowcarbon</li>
 </ul>
 
</div>



Adam Neumann’s striking return to the real estate market has sparked controversy over whether the infamous WeWork founder deserves a second chance.



But this time, his new billion-dollar venture Flow has scored a prominent backer: venture capitalist Marc Andreesen. And the company intends to dabble in cryptocurrencies.



Flow, which scored a <a href="https://www.nytimes.com/2022/08/15/business/dealbook/adam-neumann-flow-new-company-wework-real-estate.html" target="_blank" rel="noreferrer noopener">$350 million</a> investment from a16z, plans to launch a digital wallet that can hold cryptoassets — as well as currencies, including the US dollar — <a href="https://www.forbes.com/sites/davidjeans/2022/08/17/adam-neumanns-flow-a16z-crypto/?sh=3b6aec523a28" target="_blank" rel="noreferrer noopener">Forbes</a> reported on Wednesday. The company’s real estate management software will also function on the wallet.



The plans for the wallet remain unspecified for now. A Flow spokesperson, Davidson Goldin, told Forbes that it won’t be used to make rental payments using crypto for apartments managed by the firm, but can be used for external purchases, like other wallets.



Goldin’s comments suggested that Flow won’t be heavily involved with cryptocurrencies, nor would the firm be a leader in the implementation of blockchain. Still, he added that Flow could use crypto for a tokenized rewards program.



Flow doesn’t yet have an established website — it merely <a href="https://www.flow.life/" target="_blank" rel="noreferrer noopener">displays</a> is an expected launch in 2023 and a general contact option.  



<h3 class="wp-block-heading">Flow isn’t linked to Web3 startups</h3>



The WeWork founder is no stranger to real estate, but that’s not the only sector he’s tried his hand in. After building shared-office spaces around the world, and doing so while burning money rapidly, he was ultimately <a href="https://www.nytimes.com/2019/09/24/business/dealbook/wework-ceo-adam-neumann.html" target="_blank" rel="noreferrer noopener">forced to step down</a> from the company he started.



Neumann subsequently founded Flowcarbon, which surfaced earlier this year, aiming to issue cryptocurrencies backed by carbon credits. Andreesen participated in a <a href="https://www.flowcarbon.com/knowcarbon/flowcarbon-raises-70m-to-tokenize-carbon-credits-and-build-an-on-chain-market" target="_blank" rel="noreferrer noopener">$70 million round</a> towards the platform in May, as part of its <a href="https://cms.blockworks.co/andreessen-horowitz-launches-largest-crypto-fund-ever/" target="_blank" rel="noreferrer noopener">$4.5 billion venture fund</a>. 



But the crypto market downturn <a href="https://www.wsj.com/articles/crypto-crash-stalls-wework-founder-adam-neumanns-climate-venture-11657963804?mod=hp_lead_pos3" target="_blank" rel="noreferrer noopener">stymied</a> that ambition, with CEO Dana Gibber saying it would “wait for markets to stabilize” to launch a token.



On the face of it, Flowcarbon and Flow don’t appear to be affiliated except for sharing a co-founder. Intriguingly, <a href="https://a16z.com/2022/08/15/investing-in-flow/">a16z’s blog</a> calls Flow, Neumann’s “first venture since WeWork.”



There is also <a href="https://cms.blockworks.co/nba-top-shot-creator-raises-725m-fund-to-grow-flow-blockchain-usage/" target="_blank" rel="noreferrer noopener">the unrelated blockchain project</a> from Dapper Labs which already uses a token with the ticker FLOW, the price of which briefly spiked due to confusion over the name.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"><a href="https://twitter.com/search?q=%24FLOW&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$FLOW</a> jumps 4.20% on news that a16z has invested in Adam Neumann&#39;s new real estate co with the same name <a href="https://t.co/yTZgJdJ04v">pic.twitter.com/yTZgJdJ04v</a>&mdash; db (@tier10k) <a href="https://twitter.com/tier10k/status/1559147500199714817?ref_src=twsrc%5Etfw">August 15, 2022</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



So the latest investment is Andreesen’s <a href="https://cms.blockworks.co/andreessen-horowitz-launches-largest-crypto-fund-ever/" target="_blank" rel="noreferrer noopener">second bet</a> on Neumann since WeWork. The venture firm is backing Flow because Neumann “revolutionized” commercial real estate through WeWork and “fundamentally redesigned the office experience,” Andreesen said. 



Lifestyle changes brought on by the COVID-19 pandemic have led to more people working remotely and will make them “experience much less, if any, of the in-office social bonding and friendships that local workers enjoy,” he said.



The blog didn’t detail what specific problems Flow is setting out to solve, but said it’s a “direct strike” on the current housing market crisis.  



Flow’s spokesperson didn’t return Blockworks’ request for comment by press time.



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



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A16z-backed Real Estate Firm to Dabble in Crypto: Report

Ben Strack

<div id="highlights-block_627a8bb968baa" class="highlights">
 <ul>
 <li>The fund is the largest joint commitment made toward any blockchain ecosystem, according to the company</li>
 <li>The Flow blockchain has more than 7,000 developers </li>
 </ul>
 
</div>



Dapper Labs, the Web3 platform powering blockchain-based trading card platform NBA Top Shot, unveiled a $725 million ecosystem fund in a bid to spur community growth.&nbsp;



The fund is the largest joint commitment made toward any blockchain ecosystem, the company said in a statement Tuesday. Participants include venture capital firm a16z, Coatue, CoinFund, Greenfield One, Liberty City Ventures, Digital Currency Group and Union Square Ventures.



&#8220;As [Web3] accelerates and sophisticated app developers search for the best platforms, Flow is perhaps the best decentralized blockchain built for the scale, security, and ease of use most modern startups need to succeed,&#8221; CoinFund Managing Partner David Pakman said in a statement.&nbsp;



The fund will offer existing and future developers support to build applications on Flow blockchain through investments and FLOW token grants. It will focus on support for gaming, infrastructure, decentralized finance, content and creators, and the capital may also be used for team expansion, user acquisition and general operating expenses.&nbsp;



A spokesperson for the company did not immediately return a request for comment.&nbsp;



Originally developed by Dapper Labs, Flow is a blockchain built for consumers that has had daily transactions triple since September 2021, according to the company.



Flow has more than 7,000 developers building on the blockchain. The protocol has roughly 1,000 active projects and 175,000 monthly active users. The Web3 platform powers <a href="https://nbatopshot.com/?c=BS_HP&amp;gclid=Cj0KCQjwmuiTBhDoARIsAPiv6L-FFjSIRpXDXLPG42G8C9B1eDZzbN5KHBcYDl_wgMVfAhiAYc7uxJgaAs_HEALw_wcB&amp;gclsrc=aw.ds" target="_blank" rel="noreferrer noopener">NBA Top Shot</a>, which allows users to own, sell and trade NFTs of NBA and WNBA plays and players, as well as <a href="https://nflallday.com/" target="_blank" rel="noreferrer noopener">NFL All Day</a>, which offers licensed NFL video NFTs (non-fungible tokens).



FLOW has a market capitalization of roughly $1.5 billion, according to Blockworks data. The price was up 8.2% to trade at $3.999 in the last 24 hours as of midday Tuesday.&nbsp;



Dapper Labs <a href="https://cms.blockworks.co/dapper-labs-closes-250m-round-bit2me-ico-raises-23-4m/" target="_blank" rel="noreferrer noopener">closed a $250 million round</a> in September, which the company said would be used to support additional brand-driven sports-, entertainment- and music-based products. Coatue and a16z had invested then, as well.



The investment is the latest in a string of digital asset investments for a16z, which recently launched <a href="https://a16z.com/2022/04/21/announcing-a16z-crypto-research/" target="_blank" rel="noreferrer noopener">a crypto research lab</a>. The firm was <a href="https://cms.blockworks.co/what-does-binances-investment-in-twitter-mean-for-the-social-networks-future/" target="_blank" rel="noreferrer noopener">one of 18 investors</a> backing Elon Musk’s $44 billion bid to purchase Twitter, pledging $400 million. It also <a href="https://cms.blockworks.co/a16z-leads-25m-raise-for-nft-focused-cocreate-protocol/" target="_blank" rel="noreferrer noopener">led a $25 million seed round</a> to fund the launch of the NFT-focused Co:Create protocol.



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