Jack Kubinec


<p>GameStop is shuttering its NFT marketplace on Feb. 2 due to “the continuing regulatory uncertainty of the crypto space,” the gaming giant announced via a website banner.&nbsp;</p>



<p>GameStop <a href="https://wallet.gamestop.com/">removed</a> support for its NFT wallet in November for the same reason. The news continues a trend of major companies losing interest in NFTs following social media platform X’s decision to end its NFT profile picture feature last week.&nbsp;</p>



<p><strong>Read more:</strong> <a href="https://blockworks.co/news/x-removes-nft-profile-pics">X reportedly no longer supports NFT profile pictures</a></p>



<p>GameStop began <a href="https://twitter.com/finestonematt/status/1397309790964047872">teasing</a> an NFT marketplace in May 2021 — shortly after a retail-led short squeeze ballooned the struggling stock’s price. The platform launched in July 2022, <a href="https://dappradar.com/blog/new-dapps-report-gamestop-marketplace">becoming</a> a top-ten marketplace that summer. It saw $6 million in volume in its first two months.&nbsp;</p>



<p>The traction wasn’t sticky, though: The site has <a href="https://nft.gamestop.com/stats">seen</a> roughly $40,000 in volume over the past month.</p>



<p>As part of its erstwhile NFT push, GameStop received a grant from gaming <a href="https://blockworks.co/tag/layer-2-2">layer-2 </a>Immutable to set up a <a href="https://blockworks.co/news/gamestop-immutable-to-launch-100-joint-fund-for-gaming-nfts">$100 million gaming NFT fund</a>. GameStop <a href="https://twitter.com/Blockworks_/status/1532390672820494338">sold</a> a large number of its tokens from the deal.&nbsp;</p>



<p><a href="https://blockworks.co/tag/gamestop">GameStop</a> was also <a href="https://twitter.com/loopringorg/status/1745888608370749838">integrated</a> with the layer-2 Loopring.</p>



<p>Notably, Blockworks reported this week that despite a down 2023 for <a href="https://blockworks.co/tag/nfts">NFTs</a>, gaming is a promising sector for a future of utility-focused NFTs. GameStop apparently doesn’t agree.</p>



<p><strong>Read more: </strong><a href="https://blockworks.co/news/nft-trading-volumes-fall-from-2022">NFT volume fell $14.5B in 2023: CoinGecko</a></p>



<h2 class="wp-block-heading">Metaverse gaming push continues</h2>



<p>Austin-based gaming platform Nifty Island released the beta version of its open-world game on Wednesday. The game gives users islands where they can <a href="https://store.epicgames.com/en-US/p/nifty-island-faq-501804">play</a> as 3D renderings of their NFT avatars.&nbsp;</p>



<p>Nifty Island is the latest <a href="https://blockworks.co/tag/web3">Web3</a> game to try bringing utility to NFTs — in this case, allowing NFT holders to port their collectibles to the metaverse.</p>



<p>“As you might wear your favorite shirt to express yourself or bring your lucky mitt to play baseball with friends in the real world, I think the same applies in gaming, and we are at the cusp of a paradigm shift which will change the way we play,” Nifty Island co-founder Zunk <a href="https://x.com/ZunkZunkZunk/status/1747408580347629947?s=20">wrote</a> on X following the release.&nbsp;</p>



<p>Nifty Island’s Web3 open-world game comes soon after Warner Bros. Discovery supported the creation of a Ready Player One-style metaverse — a once popular concept in crypto <a href="https://blockworks.co/tag/gaming">gaming</a> that has lately <a href="https://blockworks.co/news/is-metaverse-dead-buzzword">fallen somewhat out of favor</a>.</p>



<p><strong>Read more: </strong><a href="https://blockworks.co/news/ready-player-one-metaverse">Web3 Watch: Ready Player One-style metaverse launches with Warner Bros support</a></p>



<h2 class="wp-block-heading">One interesting stat:</h2>



<ul>
<li>The price floor of Pudgy Penguins NFTs has nearly <a href="https://nftpricefloor.com/pudgy-penguins">doubled</a> since the beginning of January, rising to an all-time high of roughly $47,000 per NFT Price Floor.</li>
</ul>



<h2 class="wp-block-heading">Also of note:</h2>



<ul>
<li>The heist movie Lift starring Kevin Hart released on Netflix. The plot prominently <a href="https://twitter.com/SolanaJax/status/1746484991578530082">involves</a> a high-value NFT seller.&nbsp;</li>



<li>Animoca Brands is <a href="https://www.animocabrands.com/animoca-brands-begins-phased-launch-of-anichess">launching</a> a chess-based strategy game named Anichess in partnership with Chess.com and chess world champion Magnus Carlsen.</li>
</ul>



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Web3 Watch: GameStop waves goodbye to NFT marketplace

James Cirrone


<p>GameStop has set a date for the demise of its crypto wallet program, chalking it up to “regulatory uncertainty.”&nbsp;</p>



<p>The publicly traded GameStop will take its iOS and Chrome wallet extensions off the market by Nov. 1, according to an alert on its <a href="https://wallet.gamestop.com/">website</a>. It had previously told investors on an earnings call that it would wind down the company’s crypto activities.&nbsp;</p>



<p>GameStop advised customers to write down or recover their secret passphrase before Oct. 1.</p>



<p>“Any customer with access to their Secret Passphrase has the ability to recover their account in any compatible wallet,” GameStop wrote. </p>



<p>Metamask and WalletConnect are, for now, compatible with GameStop NFT, its NFT marketplace.</p>



<p>GameStop had been telegraphing its hesitance around digital assets for months. During a December 2022 earnings call, then-CEO Matt Furlong said that crypto has “potential” but not enough to warrant taking on outsized risks with company cash.&nbsp;</p>



<p>“Although we continue to believe there is long-term potential for digital assets in the gaming world, we have not, and will not, risk meaningful stockholder capital in the space,” Furlong said in the Dec. 7 <a href="https://seekingalpha.com/article/4563070-gamestop-corp-gme-q3-2022-earnings-call-transcript">call</a>.&nbsp;</p>



<p>A day before that call took place, <a href="https://blockworks.co/news/gamestop-layoffs-crypto-staff-axed">GameStop axed at least six employees working on blockchain initiatives</a>.&nbsp;</p>



<p>GameStop representatives did not immediately return a request for comment.&nbsp;</p>



<p>GameStop didn’t detail specifics of the regulatory uncertainty that contributed to the move.&nbsp;</p>



<p>But there’s still <a href="https://blockworks.co/news/ethereum-stablecoins-commodities-not-securities-cftc">debate between the CFTC and the SEC over which crypto assets constitute securities</a>. And perhaps more so now with the SEC suing <a href="https://blockworks.co/news/binance-changpeng-zhao-face-sec-charges">Binance</a> and <a href="https://blockworks.co/news/sec-sues-coinbase">Coinbase</a> in June over allegedly unregistered securities offerings.&nbsp;</p>



<p>The most recent crypto regulation wrinkle came Monday, with a <a href="https://blockworks.co/news/judge-denies-terraform-motion-dismiss">judge denying Terraform’s motion to dismiss its case</a> on the grounds that the Ripple decision doesn’t apply to the collapsed firm.</p>



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GameStop to pull support for its native crypto wallets by Nov. 1


<p>GameStop has partnered with the Telos Foundation to pilot a new Web3 game launcher called GameStop Playr.&nbsp;</p>



<p>&#8220;GameStop Playr is marketing/distributing Web3 games that are built using Telos’ blockchain technology,&#8221; Telos Chief Marketing Officer Peter Nguyen told Blockworks. </p>



<p>At present, GameStop Playr hasn’t yet launched and no compatible games have been announced, but interested parties can sign up for a waitlist.</p>



<p>GameStop, long known as a brick and mortar game retailer, pivoted to crypto a year after the infamous r/wallstreetbets short squeeze sent its stock skyrocketing in January 2021. In January 2022, GameStop launched an NFT and crypto division, the Wall Street Journal <a href="https://www.wsj.com/articles/gamestop-entering-nft-and-cryptocurrency-markets-as-part-of-turnaround-plan-11641504417">reported</a> at the time.&nbsp;</p>



<p>Just over a year later, it partnered with Immutable X to <a href="https://blockworks.co/news/web3-watch-gamestop-opens-nft-marketplace-magic-eden-fund-focuses-on-web3-gaming">launch its own NFT marketplace</a>, which reached $1 million in trading volume in its first 24 hours.</p>



<p>For now, games compatible on the Telos blockchain will be able to be distributed via the GameStop Playr, according to a <a href="https://www.prnewswire.com/news-releases/telos-announces-strategic-collaboration-with-gamestop-to-expand-web3-gaming-301839456.html">statement</a> from Telos.</p>



<p>Some games that are compatible or “close to fully integrated” on the Telos blockchain include gambling platforms such as W3Poker and OwlDAO, as well as a mobile game called Monkey Empire.</p>



<p>However, none of these games are guaranteed to be available through GameStop Playr, Nguyen noted.&nbsp;</p>



<p>Head of business development at the Telos Foundation, AJ Dinger, said this partnership will drive new customers into the Web3 gaming space.&nbsp;</p>



<p>“By combining GameStop Playr with Web3 games utilizing Telos&#8217; high performance blockchain infrastructure, we can break down many of the barriers currently deterring Web2 players from embracing Web3,” Dinger said in a statement.&nbsp;</p>



<p>Shares of GameStop (GME) were relatively unchanged by the news.</p>



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GameStop, Telos Team Up to Build Web3 Game Launcher

Sebastian Sinclair

David Canellis


<p>Crypto bank Silvergate (SI) has attracted a ton of short sellers over the past few months, opening up possibility of a short squeeze that could drag its share price upward.</p>



<p>Silvergate stock, which had surged 1,000% across late 2020 and 2021 as crypto markets ripped through their bull market, has sunk nearly 84% over the past year and 65% since the FTX scandal first broke.</p>



<p>SI’s short interest — which measures how much of its outstanding shares are tied to short sales — is now 72.80%, per Seeking Alpha.&nbsp;</p>



<p>That makes Silvergate one of the most shorted stock on US markets, if not the most. It has far more than meme stock Bed Bath and Beyond (47.91%), bitcoin miner Marathon (41.53%), meat substitute startup Beyond Meat (36.88%) and direct rival Signature Bank (36.13%).</p>



<p>About 18 months ago, Silvergate didn’t even <a href="https://seekingalpha.com/article/4438327-the-most-heavily-shorted-stocks-and-our-picks-july-2021" target="_blank" rel="noreferrer noopener">make</a> the top 50.</p>



<p>But such astronomically high short interest suggests the possibility of a squeeze — short sellers could face pressure to buy back shares to cover their shorts if the price rises significantly from here. Essentially, that would mean their bearish bets backfired.</p>



<p>The most famous short squeeze of recent history would be GameStop. A ragtag group of retail investors sought to bankrupt Melvin Capital and Citron Research, who’d heavily shorted the game retailer (GameStop&#8217;s short interest reached 140% during peak short squeeze in Jan. 2021).</p>



<p>Melvin <a href="https://markets.businessinsider.com/news/funds/melvin-capital-shut-down-after-losing-billions-gamestop-short-squeeze-2022-5" target="_blank" rel="noreferrer noopener">eventually</a> closed down, having lost billions after being forced to buy back heavily inflated shares to close its shorts. Citron <a href="https://www.cnbc.com/2021/01/29/citron-research-short-seller-caught-up-in-gamestop-squeeze-pivoting-to-finding-long-opportunities.html" target="_blank" rel="noreferrer noopener">said</a> it would stop publishing short reports to focus on disclosing long theses moving forward.</p>



<p>“When some people think of a short squeeze they immediately think of the GameStop lunacy, but that isn&#8217;t necessarily a good representation of heavy short interest situations because it was the result of massive coordinated buying pressure,” UFD Capital analysts wrote in a recent <a href="https://seekingalpha.com/article/4579803-silvergate-capital-stock-considerable-risk-and-short-squeeze-potential" target="_blank" rel="noreferrer noopener">report</a>.&nbsp;</p>



<p>Short squeezes can be far more boring, they explained, in that the short thesis could simply become less compelling relative to the realities of opening shorts (opportunity cost and borrowing fees).&nbsp;</p>



<p>“Not everyone can cover at once, which can lead to a modest short squeeze. This is what could happen if Silvergate can demonstrate that their business is fundamentally sound,” UFD Capital said.</p>



<p>One way this can happen is if the company, in this case Silvergate, improves their fundamentals.</p>



<h3 class="wp-block-heading">Bear case spurs short squeeze for Silvergate</h3>



<p>As one of the only US banks that can freely move fiat to crypto exchanges, Silvergate supports a raft of companies in the space, including Circle, Coinbase, Binance US and Kraken, via its internal payment rails known as the Silvergate Exchange Network (SEN).&nbsp;</p>



<p>SEN is intended to help such firms process funds round-the-clock, rather than rely on the US’ Automated Clearing House, only available during certain business hours.</p>



<p>Silvergate also serviced FTX, leading to fears of contagion and an influx of withdrawals (Silvergate initially hinted at more than $1 billion kept on FTX at the time of its demise, funds now apparently stuck in bankruptcy proceedings).</p>



<p>At the end of last year, Silvergate managed $3.8 billion in customer deposits, down from $11.9 billion in the third quarter. Its customers had grown concerned about the bank&#8217;s ability to continue facilitating operations without disruption.&nbsp;</p>



<p>To fulfil withdrawals and generate liquidity, the bank was forced to sell assets at an unfavorable time, according to its fourth-quarter earnings report, resulting in a <a href="https://blockworks.co/news/silvergate-stock-surges-20-despite-1b-quarterly-earnings-loss">loss of $1 billion</a>. It also <a href="https://www.businesswire.com/news/home/20230120005474/en/Silvergate-Provides-Statement-on-Limited-Exposure-to-Genesis" target="_blank" rel="noreferrer noopener">reported</a> a loss to bankrupt crypto lender Genesis amounting to $2.5 million, although those funds are small compared to its balance sheet overall.</p>



<figure class="wp-block-embed is-type-wp-embed is-provider-flourish wp-block-embed-flourish"><div class="wp-block-embed__wrapper">
<iframe class="wp-embedded-content" sandbox="allow-scripts" security="restricted" title="Interactive or visual content" src="https://flo.uri.sh/visualisation/12815381/embed#?secret=0xnevmPsm4" data-secret="0xnevmPsm4" frameborder="0" scrolling="no" height="575" width="700"></iframe>
</div><figcaption class="wp-element-caption"><em>A short squeeze on Silvergate could be dampened by its low days-to-cover ratio</em></figcaption></figure>



<p>The US Department of Justice is now <a href="https://www.bloomberg.com/news/articles/2023-02-02/silvergate-faces-doj-fraud-probe-over-ftx-and-alameda-dealings" target="_blank" rel="noreferrer noopener">reportedly</a> probing Silvergate to see if it assisted FTX and Alameda Research in fraudulent activities, such as lending and commingling user funds. Its client Paxos is also coming under increased <a href="https://blockworks.co/news/paxos-to-cease-minting-new-busd-and-end-relationship-with-binance" target="_blank" rel="noreferrer noopener">scrutiny</a> from US regulators over its Binance-branded stablecoin.</p>



<p>All these concerns, tied with <a href="https://www.businesswire.com/news/home/20230111006013/en/Second-Class-Action-Filed-Against-Silvergate-Capital-SI-Contact-Robbins-LLP-for-Information-Regarding-the-Class-Actions-Against-Silvergate-Capital-Corporation" target="_blank" rel="noreferrer noopener">multiple</a> class action <a href="https://www.courtlistener.com/docket/66813826/1/keane-v-silvergate-bank/" target="_blank" rel="noreferrer noopener">lawsuits</a>, have impacted the business’ attractiveness to both customers and investors, leading to a large sell-off in the stock and increased short sales.&nbsp;</p>



<p>The family office of legendary trader George Soros, for one, recently <a href="https://www.bloomberg.com/news/articles/2023-02-14/soros-fund-management-discloses-bet-against-silvergate-shares" target="_blank" rel="noreferrer noopener">disclosed</a> holding put options on 100,000 SI shares worth $1.74 million as of the end of December. Their status and expiry dates remain unknown.</p>



<h3 class="wp-block-heading">Bitcoin buoys Silvergate bull case</h3>



<p>Silvergate has clearly had it rough. But its correlation with recovering crypto markets has pushed its share price up 30% over the past month.</p>



<p>And while high short interest exists, market data indicates those shorts would be quick to cover if a squeeze formulates.</p>



<p>A stock’s “days-to-cover” ratio estimates the number of days it would take for all short sellers to acquire enough shares to return to their lenders. The figure is based on the average daily trading volume of the stock and open short interest.</p>



<p>High days-to-cover ratio, typically over five days, suggests increased potential for a significant short squeeze.&nbsp;</p>



<p>SI’s days-to-cover is currently 2.17 days, according Seeking Alpha data. So, any potential short squeeze would be relatively short-lived, reducing potential upside for squeezers.</p>



<p>Nelson Alves, investment analyst, told Blockworks that he wasn’t completely convinced that Silvergate will undergo a short squeeze any time soon.</p>



<p>“Do I think that Silvergate is going to turn around from its current stock rout? Yes. Do I think it will be due to an incoming short squeeze. It might happen, but not very likely,” Alves said.</p>



<p>He agreed that the amount of short positions is huge relative to the float — and when Silvergate stock goes green, upward movements would be exacerbated by such high short interest. But Alves again highlighted Silvergate&#8217;s small days-to-cover ratio compared to prominent recent short squeezes.</p>



<figure class="wp-block-embed is-type-wp-embed is-provider-flourish wp-block-embed-flourish"><div class="wp-block-embed__wrapper">
<iframe class="wp-embedded-content" sandbox="allow-scripts" security="restricted" title="Interactive or visual content" src="https://flo.uri.sh/visualisation/12815483/embed#?secret=u5N3D8KWEz" data-secret="u5N3D8KWEz" frameborder="0" scrolling="no" height="575" width="700"></iframe>
</div></figure>



<p>“Not saying that a short squeeze can’t happen (in some instances, volume might dry up), just that it is not hard for shorts to solve the problem. If you compare it to the meme stocks, you’ll see that when those squeezes happened, it took several days for shorts to cover,” Alves said.</p>



<p>Meanwhile, <a href="https://seekingalpha.com/author/mike-zaccardi-cfa-cmt" target="_blank" rel="noreferrer noopener">Mike Zaccardi</a>, CFA, CMT and Seeking Alpha analyst, reckons a Silvergate short squeeze is on the table considering bitcoin price action has been rather constructive. This suggests the “pain trade” for Silvergate could be to the upside.</p>



<p>Still, Silvergate’s short interest is “ridiculous,” so it “wouldn’t take much upward momentum to really scare the shorts,” he told Blockworks.</p>



<p>“Technically, I think the $25 level is key. A move to about that could bring about significant short covering. I see the next resistance near $50,” Zaccardi said. Silvergate shares last traded for $18.05.</p>



<p>Zaccardi conceded that he doesn’t see any corporate events for Silvergate that could be the catalyst, but noted that Option Research &amp; Technology Services shows an implied volatility of 191% for Silvergate.</p>



<p>“That’s a one-week expected move of 26% — crazy high.”</p>



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Silvergate Short Squeeze Looks Inevitable — But How Likely Is It?


<p>Meme stocks are once again drawing the attention of traders — coinciding with a 2023 jump in value in meme cryptocurrencies, including sector stalwarts Dogecoin and Shiba Inu.</p>



<p>The emerging sentiment— underscored by amped-up meme asset trading volumes — lingered into Tuesday’s session. The continuing investor interest appears to be bucking a downturn in meme equities late in Monday’s trading session in New York.</p>



<p>Longtime meme stock <a href="https://www.tradingview.com/chart/?symbol=NYSE%3AAMC">AMC</a> finished Monday’s trading session 12% higher at $6.80 — after rising to a peak of $7.26. Most of that double-digit pop was erased on Tuesday as the US movie theater chain’s equity dropped 8%.<br><br>But the NYSE-listed asset was still posting a 57% gain on the year. </p>



<p>Home retailer Bed Bath &amp; Beyond (<a href="https://www.tradingview.com/chart/Nm6c3U35/?symbol=NASDAQ%3ABBBY">BBBY</a>) climbed an eye-watering 92% to $5.85 to start the week — before giving 36% back to hover around $3.70 in Monday’s after-hours trading hours. The stock gave up another 48% on Tuesday.  </p>



<figure class="wp-block-embed is-type-wp-embed is-provider-flourish wp-block-embed-flourish"><div class="wp-block-embed__wrapper">
<iframe class="wp-embedded-content" sandbox="allow-scripts" security="restricted" title="Interactive or visual content" src="https://flo.uri.sh/visualisation/12680954/embed#?secret=SsQUxAtV7B" data-secret="SsQUxAtV7B" frameborder="0" scrolling="no" height="575" width="700"></iframe>
</div><figcaption class="wp-element-caption">A number of meme equities and meme tokens are trouncing the S&amp;P 500 in 2023 so far. </figcaption></figure>



<p>Daily gains were knee-capped in after-hours trade on Monday following an announcement by company executives over their intention to sell convertible shares in order to avoid loan default and <a href="https://www.bloomberg.com/news/articles/2023-02-06/bed-bath-beyond-plans-share-sale-in-effort-to-avoid-bankruptcy">prevent bankruptcy</a>. Still, BBBY is up more than 30% so far this year, marking a notable recovery from its 80% decline since last year’s $30 peak.&nbsp;</p>



<p>Traders also demonstrated a renewed interest in meme stock pioneer GameStop (<a href="https://www.tradingview.com/chart/Nm6c3U35/?symbol=NYSE%3AGME">GME</a>), albeit demonstrated by a relatively smaller pop to start the week. GME jumped 7% higher on Monday to $24.70. Like the others, GME declined 11% Tuesday as traders booked a profit. The equity is still up more than 20% in the new year.&nbsp;</p>



<p>The GameStop short squeeze of January 2021 brought to light stocks with heavy Wall Street short floats —&nbsp; and sparked a movement driven by Reddit traders to drive up similarly beleaguered equities in a show of retail force.</p>



<h3 class="wp-block-heading"><strong>More (meme) bark than bite?</strong></h3>



<p>Meme stocks and coins have gained renewed attention recently as worries about inflation and the macro environment have started to ease, according to Rob Alcorn, Clearpool’s chief executive.&nbsp;</p>



<p>“Meme coins generally distract attention from the real innovation happening in the digital asset space,” Alcorn told Blockworks. “Whilst very speculative, this is an indicator that retail sentiment is turning positive once again following an extended period of selling.”</p>



<p>The recent meme stock surge has mirrored an upward trend in their crypto counterparts. On the year, <a href="https://www.blockworksresearch.com/assets/doge">dogecoin</a> has this week clawed back more than 31% of its losses — and <a href="https://www.blockworksresearch.com/assets/shib">shiba inu</a> has roared back to the tune of 2023 gains of as much as 75%.&nbsp;</p>



<p>For context, both bitcoin and ether have risen by approximately 36% over the same time period.</p>



<p>That’s good news for the majority of dogecoin holders, now in the money or profiting from their original purchase.&nbsp;&nbsp;</p>



<p>Data from crypto intelligence firm <a href="https://app.intotheblock.com/coin/DOGE/deep-dive?group=all&amp;chart=all" target="_blank" rel="noreferrer noopener">IntoTheBlock</a> show, of roughly four million wallet addresses holding the asset, around 62% are in the money. Just 35% of those addresses are posting losses.</p>



<p>A majority of those addresses booking gains bought in at an average price of $0.008. The asset was last seen changing hands for around $0.09, representing a 1020% increase for those who bought then.&nbsp;</p>



<p>IntoTheBlock’s Global In/Out of the Money categorizes addresses by their current profit or loss status relative to the current market price. Addresses are classified as &#8220;in the money&#8221; if they are making a profit, &#8220;at the money&#8221; if they are breaking even or &#8220;out of the money&#8221; if they are underwater.</p>



<p>It’s a little hairier for those holding shib, Shibu Inu’s native token. </p>



<p>Of the 1.2 million addresses analyzed, roughly 44.5% are showing a profit.</p>



<p>An additional 54% have bitten off more than they can chew.</p>



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Dogecoin Owners Back in Green YTD as Meme Stocks Rip

Shalini Nagarajan


<p>GameStop has let go of some employees — including staffers that built its first blockchain wallet — adding to sector-wide layoffs in recent weeks.</p>



<p>Several employees from the e-commerce product team and engineers were laid off, according to a <a href="https://www.linkedin.com/posts/daniel-williams-7b133b187_another-big-round-of-layoffs-from-gamestop-activity-7005557438238072833-ClAy/?utm_source=share&amp;utm_medium=member_desktop" target="_blank" rel="noreferrer noopener">LinkedIn post</a> by a lead software engineer at GameStop, Daniel Williams. The team building GameStop’s blockchain wallet was also impacted, <a href="https://www.axios.com/2022/12/05/gamestop-begins-layoff" target="_blank" rel="noreferrer noopener">Axios</a> reported. </p>



<p>Brandon Jenniges, an iOS engineer working within the blockchain team, confirmed the development on Monday.</p>



<p>“Unfortunately I was impacted by layoffs at GameStop today,” Jenniges <a href="https://www.linkedin.com/in/bjenniges/recent-activity/" target="_blank" rel="noreferrer noopener">wrote</a> on LinkedIn.</p>



<p>“I had a great time getting a deep dive into Ethereum and learning about many new things in the crypto space.”</p>



<p>It isn’t clear how many lost their jobs overall, but at least six employees said on LinkedIn that they had been let go.&nbsp;</p>



<p>The most recent headcount reductions would mark the <a href="https://www.linkedin.com/posts/stephmm_work-at-customerio-activity-7005587400001282049-XAxs/?utm_source=share&amp;utm_medium=member_desktop" target="_blank" rel="noreferrer noopener">fourth round</a> of layoffs for the video game retailer in the last six months, according to a former GameStop employee.</p>



<p>CEO Matt Furlong reportedly notified staff about the layoffs via email, saying the company is “emerging from the rebuilding phase” of its transformation.&nbsp;</p>



<p>“We’ve recently completed several projects that were part of the initial phase of our transformation and enable the business to operate with increased efficiency,” Furlong wrote in the email, as reported by <a href="https://kotaku.com/gamestop-layoffs-meme-stock-crypto-blockchain-1849856122" target="_blank" rel="noreferrer noopener">Kotaku</a>. </p>



<p>Furlong added that the company gained direction regarding the number of corporate staff required to achieve profitability and growth goals. The decision was made partly due to record-high inflation and “weakened consumer confidence” as a difficult job market weighs on sentiment.</p>



<p>“These two factors informed the decision that were taken across the organization,” he said. The email reportedly didn’t mention the degree of the job cuts. Blockworks has reached out for comment on the matter.</p>



<p>GameStop <a href="https://news.gamestop.com/news-releases/news-release-details/gamestop-launches-wallet-cryptocurrencies-and-nfts" target="_blank" rel="noreferrer noopener">launched</a> a self-custodial Ethereum digital wallet in May, allowing users to transact across decentralized apps and buy NFTs on its marketplace. The video game retailer had hired more than 20 people to run its NFT marketplace and set up crypto partnerships, according to the <a href="https://www.wsj.com/articles/gamestop-launches-digital-wallet-for-nfts-cryptocurrencies-11653313751" target="_blank" rel="noreferrer noopener">Wall Street Journal</a>.</p>



<p>GameStop’s share price is down about 32% so far this year, with shares priced at $25.44 at the time of publication. The company is set to report third quarter earnings on Dec. 7 after the close.</p>



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GameStop’s Crypto Staff Axed in 4th Round of Layoffs

Ornella Hernandez

<div id="highlights-block_6319d73558517" class="highlights">
        <ul>
                <li>Metaverse trademark registrations through 8 months of 2022 have eclipsed all of 2021</li>
                <li>ENS is the top ETH collection with the most volume on OpenSea within the past seven days</li>
            </ul>
    
</div>



<p>This week Blockworks looked at <a href="https://cms.blockworks.co/venture-capital-bullish-on-building-gamefi-in-a-bear-market/" target="_blank" rel="noreferrer noopener">the state of the nascent GameFi market</a> and how venture capital is keen on pouring money into it during a bear market.</p>



<p>Additionally, a new Solana NFT collection, y00ts, <a href="https://cms.blockworks.co/latest-solana-nft-collection-gives-ethereum-nfts-a-run-for-their-money/" target="_blank" rel="noreferrer noopener">has already generated</a> over $7 million worth of secondary sales since Monday despite minting delays.</p>



<p>Blockworks recaps other notable stories that caught the eyes of the Web3 Watch.</p>



<h3 class="wp-block-heading">Metaverse trademarks are booming</h3>



<p>4,150 trademarks relating to Web3 and the metaverse have been filed with the United States Patent and Trademark Office (USPTO) so far in 2022. This is slightly more than twice as many as the total metaverse trademark registrations in all of last year — 1866.</p>



<p>Three major brands have put in their own filings in the past week alone, including carmaker Ford, <a href="https://tmsearch.uspto.gov/bin/showfield?f=doc&amp;state=4804:24nzyj.5.1" target="_blank" rel="noreferrer noopener">with 19 trademark applications</a> for virtual cars, trucks, vans and clothing, as well as an NFT marketplace.</p>



<p>Sony Music filed trademarks for its Columbia Records logo to be used in association with NFT-backed media including art &amp; music NFTs, music and podcast production as well as artist management and music distribution services.&nbsp;</p>



<p>Luxury goods retailer Hermes also <a href="https://tmsearch.uspto.gov/bin/showfield?f=doc&amp;state=4804:24nzyj.6.7" target="_blank" rel="noreferrer noopener">filed trademarks</a> for its name to be linked to NFTs, an NFT marketplace, virtual clothing and footwear, fashion shows and cryptocurrencies. It also mentions plans to create game software featuring avatars, alongside plans for user authentication services for e-commerce transactions.</p>



<p>Metaverse and NFT-focused applications are growing all over the world. The European Union Intellectual Property Office (EUIPO) claims to have registered 205 applications using the term “metaverse” in 2022.</p>



<p>The number of NFT-specific applications was 1,277 in 2021, but as of September 2022 there have been 1,157 applications.</p>



<h3 class="wp-block-heading">For hoops fans who fancy NFTs</h3>



<p>The National Basketball Association (NBA) and the National Basketball Players Association (NBPA) <a href="https://www.nba.com/news/nba-nbpa-sorare-fantasy-game-release" target="_blank" rel="noreferrer noopener">teamed up</a> with French startup Sorare to launch a free-to-play fantasy basketball game this Fall.</p>



<p>Sorare is mostly popular in Europe for its NFT-based fantasy soccer game. After partnering with the Major League Baseball (MLB) association in July, it has now turned to basketball fans as it expands within the US.</p>



<p>This partnership makes Sorare the official NFT fantasy partner of the NBA and gives it the rights to use official NBA league and team logos across its products.</p>



<p>The fantasy game will be released in time for the 2022-23 season and plans to enable fans to buy and sell digital NFT cards representing their favorite players and teams, while putting together a line-up that can earn them points based on the real-life performance of NBA players.</p>



<p>The NBA is no stranger to NFTs and already counts on the Dapper Labs-run NBA Top Shot&nbsp; NFT marketplace where sports fans can buy, sell and trade video clips from basketball games.&nbsp;</p>



<h3 class="wp-block-heading">GameStop links up with FTX</h3>



<p>GameStop partnered with FTX, making the video game retailer FTX’s preferred retail partner in the US.</p>



<p>The partnership intends to “introduce more GameStop customers to the crypto exchange’s community and its marketplaces for digital assets,” a press release stated.&nbsp;</p>



<p>While additional details including the financial terms have not been disclosed, one known perk is that GameStop stores will begin selling FTX gift cards.</p>



<p>GameStop recently launched its own NFT marketplace and its own crypto wallet. When the company submitted its Q2 2022 earnings report on Wednesday, however, it noted that any recent financial success may not stem from these new products.</p>



<p>“Revenues earned from our digital asset wallet and NFT marketplace were not material to the condensed consolidated financial statements for the three and six months ended July 30, 2022,” its quarterly SEC filing <a href="https://gamestop.gcs-web.com/static-files/3a9d968d-b9f5-415a-877f-895d5ac83ed3">stated</a>.&nbsp;&nbsp;</p>



<p>Additionally, <a href="https://cms.blockworks.co/ftx-bringing-crypto-swaps-to-reddit/" target="_blank" rel="noreferrer noopener">FTX also recently partnered with Reddit and Arbitrum</a> to allow users to pay gas fees on Reddit’s “Community Points” tokens using fiat currency.</p>



<h3 class="wp-block-heading">New blockchain game alert&nbsp;</h3>



<p>The top Solana marketplace Magic Eden <a href="https://cms.blockworks.co/solana-marketplace-magic-eden-to-offer-ethereum-nfts/" target="_blank" rel="noreferrer noopener">recently expanded to the Ethereum blockchain</a>. One of its first ETH NFT mints on the Magic Eden Launchpad includes a collaboration with Web3 game studio Azra Games.</p>



<p>Azra, which recently closed a $15 million seed round led by Andreessen Horowitz (a16z), announced plans to launch a collection of profile picture (PFP) NFTs called “The Hopeful,” as part of its upcoming “Legions &amp; Legends” game.&nbsp;</p>



<p>This game is an ETH-powered collectible and combat role-playing game (RPG) set in a sci-fi fantasy universe. The company is led by Mark Otero, former General Manager of EA Capital Games, whose credits include Star Wars: Galaxy of Heroes.</p>



<p>Magic Eden recently shifted its focus to gaming by <a href="https://cms.blockworks.co/web3-watch-gamestop-opens-nft-marketplace-magic-eden-fund-focuses-on-web3-gaming/" target="_blank" rel="noreferrer noopener">launching a new venture capital fund</a>, dubbed Magic Ventures, that focuses on investments in Web3 games from third parties as well as its own. </p>



<h3 class="wp-block-heading">Vitalik polls crypto Twitter </h3>



<p>Ethereum co-founder Vitalik Buterin has been <a href="https://twitter.com/VitalikButerin/status/1566763265291681793?s=20&amp;t=tUl1e0BorDII4mHyLfgsCg" target="_blank" rel="noreferrer noopener">tweeting</a> out a slew of polls lately — from personal random questions, like which crypto personality he respects the most, to what a fair price for a 5-letter .eth domain name is. </p>



<p>In response to the latter, 91,130 participants chimed in and around 50% of the crypto community thinks that the fair price for a 5-letter .eth domain name for 100 years is less than $100. The same goes for .eth domain for 10 years.&nbsp;</p>



<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"><p lang="en" dir="ltr">What is a fair price that someone should have to pay to register and unconditionally guarantee ownership of a 5-letter .eth domain for 100 years?</p>&mdash; vitalik.eth (@VitalikButerin) <a href="https://twitter.com/VitalikButerin/status/1566421042872164355?ref_src=twsrc%5Etfw">September 4, 2022</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



<p>At the same time, Buterin has called for Ethereum Name Service (ENS) domain taxation, suggesting a 3% yearly fee on ENS domain names for the highest bidder.</p>



<p>For example, an investor with $500,000 as the highest bid on their domain should pay a $15,000 taxation annually to maintain ownership. According to him, this would demotivate people from hoarding domains they aren’t using.</p>



<p>ENS has been trading at the top of the secondary sales charts on OpenSea, as the ETH collection with the most volume within the past seven days.</p>



<p>It <a href="https://twitter.com/ensdomains/status/1565374366791057409?s=20&amp;t=QtnSDYyIgx2haUUm3qqE1Q" target="_blank" rel="noreferrer noopener">registered</a> 301,000 new .eth domains in August and touts a total of 2.17 million names so far.</p>



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Web3 Watch: GameStop Partners with FTX and Sorare Creates NBA Fantasy Game

<div id="highlights-block_62cf2cefbc39c" class="highlights">
        <ul>
                <li>Crypto Punk #4464 was the top NFT sale of the week, which sold on Tuesday for 2,500 ETH, or $2.6 million</li>
                <li>Ethereum Name Service domain names has the highest sales of any NFT collection in the past 24 hours</li>
            </ul>
    
</div>



<p>A Playboy-themed immersive social and gaming experience is coming to The Sandbox metaverse. Playboy Land will be home to a MetaMansion, inspired by the magazine company’s LA-based Playboy Mansion.</p>



<p>This licensing collaboration plans to include NFT collectibles releases and exclusive events for Playboy’s Rabbitar community — holders of 3D avatar-based NFT collectibles first released in October 2021. Owners will get special access to experiences, quests and giveaways at the MetaMansion and can give input about the mansion’s future.</p>



<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"><p lang="en" dir="ltr">Anybunny home? 🐰👀🏘  We&#39;re teaming up with none other than&#8230;. <a href="https://twitter.com/Playboy?ref_src=twsrc%5Etfw">@playboy</a>! 👯‍♀️<br><br>Together, we will be creating a Playboy MetaMansion social game inside <a href="https://twitter.com/hashtag/TheSandbox?src=hash&amp;ref_src=twsrc%5Etfw">#TheSandbox</a> with <a href="https://twitter.com/hashtag/NFT?src=hash&amp;ref_src=twsrc%5Etfw">#NFT</a> collectibles &amp; special experiences for the Rabbitar <a href="https://twitter.com/PlayboyNFTS?ref_src=twsrc%5Etfw">@PlayboyNFTs</a> community! <a href="https://t.co/3l6Wq6ncvt">pic.twitter.com/3l6Wq6ncvt</a></p>&mdash; The Sandbox (@TheSandboxGame) <a href="https://twitter.com/TheSandboxGame/status/1546479658601938947?ref_src=twsrc%5Etfw">July 11, 2022</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



<p>In addition to hosting parties at the MetaMansion, The Sandbox intends to build the biggest virtual skatepark in the metaverse. Tony Hawk Land will be crafted in partnership with the project&#8217;s namesake and Tom Brady’s NFT marketplace Autograph.</p>



<p>Hawk wants to “bring [skate] culture into the virtual landscape,” the world champion skateboarder said in a statement.</p>



<p>Autograph plans to create avatar NFTs based on Hawk and his most iconic equipment and apparel, including the skateboard he used when he landed the first-ever 900 at the 1999 X Games.</p>



<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"><p lang="en" dir="ltr">Coming soon to The Sandbox: alongside <a href="https://twitter.com/Autograph?ref_src=twsrc%5Etfw">@Autograph</a>, I’m helping to create the biggest skatepark in the <a href="https://twitter.com/hashtag/metaverse?src=hash&amp;ref_src=twsrc%5Etfw">#metaverse</a>. Stay tuned for updates. <a href="https://t.co/0R2ODsR4qt">pic.twitter.com/0R2ODsR4qt</a></p>&mdash; Tony Hawk (@tonyhawk) <a href="https://twitter.com/tonyhawk/status/1547242461218877441?ref_src=twsrc%5Etfw">July 13, 2022</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



<h3 class="wp-block-heading"><strong>Web3 around the world</strong></h3>



<p>Web3 initiatives are heating up across the globe as governments and international companies look to get in on the emerging space.&nbsp;</p>



<p><em>Spain</em></p>



<p>Spain’s government <a href="https://cincodias.elpais.com/cincodias/2022/07/09/economia/1657358931_237839.html" target="_blank" rel="noreferrer noopener">announced</a> it will issue 4 million euros worth of grants and aid for metaverse-related developments. The country’s Ministry of Economic Affairs and Digital Transformation will first evaluate companies and individuals working on gaming and entertainment projects based in the European Union. Women must make up 25 percent of the membership of participating teams.</p>



<p>Additionally, Santander Bank, the largest bank in Spain, is <a href="https://www.santander.com/en/landing-pages/santander-x-global-challenge-blockchain-beyond#introduction" target="_blank" rel="noreferrer noopener">co-hosting</a> a global blockchain competition focused on startups and scaleups. The event will be streamed in Decentraland on July 14. </p>



<p><em>Germany</em></p>



<p>Germany-based telecommunications company Deutsche Telekom is sponsoring an NFT social media campaign to promote volunteering.&nbsp;</p>



<p>The initiative, called WhatWeValue, invites youth volunteers throughout Europe to support existing organizations that Telekom works with or to propose activism and community service projects for a chance to receive funding from Europe’s largest telecommunications provider. Chosen projects will earn a “Value NFT” and added support from Telekom’s digital community.</p>



<p><em>Korea</em></p>



<p>South Korean imported car dealer Han Sung Motor digitized its customers’ digital documents and digital warranty, and minted them as NFTs. The metadata will contain pictures, videos and texts that certify ownership for secondhand cars purchased at the dealer. This move is part of the company’s environmental, social and governance (ESG) campaign, <a href="https://www.koreaherald.com/view.php?ud=20220708000445" target="_blank" rel="noreferrer noopener">according</a> to The Korea Herald, which reported that Han Sung Motor seeks to not only reduce the cost of paper but also attract millennials and Gen Z customers. </p>



<h3 class="wp-block-heading"><strong>GameStop NFT marketplace’s debut </strong></h3>



<p>GameStop launched its NFT marketplace on Monday, just days after the gaming retailer laid off hundreds of employees, including its chief financial officer. Forbes <a href="https://www.forbes.com/sites/paultassi/2022/07/08/gamestop-fires-game-informer-staff-as-it-doubles-down-on-nfts-and-the-blockchain/?sh=5803367f6ae7" target="_blank" rel="noreferrer noopener">reported</a> that the CEO claimed the changes were in pursuit of “new products that empower customers within the digital asset and Web3 gaming verticals.”</p>



<p>By Tuesday afternoon, Gamestop NFT had surpassed 1,028 ETH in volume, reaching at least $1 million, in its first 24 hours. Messari compared GameStop’s results to those of Coinbase’s NFT marketplace, which launched in April and has amassed around 1,699 ETH in volume since then.&nbsp;</p>



<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"><p lang="en" dir="ltr">.<a href="https://twitter.com/GameStopNFT?ref_src=twsrc%5Etfw">@GameStopNFT</a> Marketplace volume surpassed 1028 ETH yesterday afternoon. <a href="https://twitter.com/Coinbase_NFT?ref_src=twsrc%5Etfw">@Coinbase_NFT</a> has amassed around 1,699 ETH in volume since its launch. <br><br>Bullish <a href="https://twitter.com/GameStopNFT?ref_src=twsrc%5Etfw">@GameStopNFT</a> or bearish <a href="https://twitter.com/Coinbase_NFT?ref_src=twsrc%5Etfw">@Coinbase_NFT</a>? <br><br>data via: <a href="https://t.co/wA9iElyK3R">https://t.co/wA9iElyK3R</a> &amp; <a href="https://twitter.com/CryptusChrist?ref_src=twsrc%5Etfw">@cryptuschrist</a>/<a href="https://twitter.com/DuneAnalytics?ref_src=twsrc%5Etfw">@DuneAnalytics</a> <a href="https://t.co/wqfIaXagiB">pic.twitter.com/wqfIaXagiB</a></p>&mdash; Messari (@MessariCrypto) <a href="https://twitter.com/MessariCrypto/status/1547174104628731908?ref_src=twsrc%5Etfw">July 13, 2022</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



<p>@Thrown_eth, the owner of the MetaBoys collection, which is currently <a href="https://nft.gamestop.com/stats" target="_blank" rel="noreferrer noopener">trending</a> at the top of the charts for total volume, <a href="https://twitter.com/Thrown_eth/status/1546994061466226688?s=20&amp;t=-H8PmmsSfjqOTTf-CB6CSg" target="_blank" rel="noreferrer noopener">tweeted</a> about his GameStop marketplace experience. While the layer-2 bridging process was “easily the best” for him, and there was a “seamless ability to transfer NFT to L1 (ETH) and to sell on OpenSea,” the marketplace “obviously needs a lot of work.” </p>



<p>Another user and “big NFT guy” @tropoFarmer also <a href="https://twitter.com/tropoFarmer/status/1547090368679874560?s=20&amp;t=orV3iqBSdxIgneKEyrJk7A" target="_blank" rel="noreferrer noopener">tweeted</a> that as long “as volume is there,” functionality will take a back seat. </p>



<p>At the time of publication, no collection had a floor price over 1 ETH.</p>



<h3 class="wp-block-heading"><strong>Magic <b>Eden&#8217;s</b> exploring Web3 gaming</strong></h3>



<p>Magic Eden, the largest Solana NFT marketplace, <a href="https://www.prnewswire.com/news-releases/magic-eden-launches-magic-ventures-with-focus-on-web3-gaming-301584577.html" target="_blank" rel="noreferrer noopener">launched</a> a new venture capital fund that will focus on investments in Web3 games as well as funding its own games. Dubbed Magic Ventures, it will operate under Eden Games, the company’s internal gaming division, which recently hired former Tencent executive Tony Zhao as head of gaming investments.</p>



<p>Blockworks conducted a Q&amp;A with Zhao and Zhuoxun Yin, Magic Eden’s chief operating officer, to learn more about Magic Ventures and the company’s expansion beyond its core profile picture NFT business.</p>



<p><strong>Blockworks: </strong>What kinds of games or projects is Magic Ventures looking to invest in?</p>



<p><strong>Zhao: </strong>In the first wave of Web3 games, we saw NFT gaming studios trying to directly compete with high-tier game IPs from the Web2 space. More recently, we have seen Web3 gaming projects gain significant market traction not by competing directly with traditional gaming studios to launch high-concept games, but by introducing innovative applications of real-life user interaction and blockchain technologies. Games like <a href="https://stepn.com/" target="_blank" rel="noreferrer noopener">Stepn</a> launched walk-to-earn mechanisms, and Mini Royale with Battle Pass minting have become cases of early NFT gaming innovation. Magic Ventures will be looking at games that demonstrate that same ability to deliver unique gaming experiences that are both immersive and seamless. </p>



<p><strong>Blockworks: </strong>What aspect of blockchain-based gaming is Magic Eden most excited about?</p>



<p><strong>Yin: </strong>Games are a $180 billion market today, with 3 billion players worldwide. We are very excited to be exploring this new frontier with developers and partners to iterate on everything from marketplace infrastructure and tokenomics to games marketing and NFT gaming education for new users coming to the space.</p>



<p>For game developers, we will provide essential tooling and operational support. Unfortunately, games take a long time to develop, and there are many pain points that builders will need to contend with. For example, minting tech, in-game marketplace governance and user acquisition.</p>



<p><strong>Blockworks: </strong>How does the metaverse tie into these plans?</p>



<p><strong>Zhao: </strong>We believe that Web3 games will be an on-ramp for millions of users to blockchain, propelling it into the mainstream and for the technology to be widely adopted. But, gaming and metaverse projects remain at a nascent stage. The biggest challenge to Web3 gaming is simply that we need more amazing, playable, fun games — and that takes time to build.&nbsp;</p>



<p>Despite these challenges, we know that the case for gaming NFTs is strong. We also know that gaming user behavior overlaps with existing NFT communities, such as social, showcasing player status, and digital ownership. Blockchain technology will introduce innovative gameplay utilizing digital ownership through in-game NFT assets, to the benefit of all, including both players and game creators.&nbsp;</p>



<p><em>This interview was edited for length and clarity.</em></p>



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Web3 Watch: GameStop Opens NFT Marketplace, Magic Eden Fund Focuses on Web3 Gaming

<div id="highlights-block_62ab5f236b98c" class="highlights">
        <ul>
                <li>BAYC had the largest increase in floor price in the past 24 hours, peaking at 86.85 ETH, and led the way yesterday in terms of most volume at 2,763 ETH</li>
                <li>Gmoney’s Admit One collection and Doodles followed BAYC in floor price increase at 11.5 ETH and 11 ETH, respectively</li>
            </ul>
    
</div>



<h3 class="wp-block-heading"><strong>Jack Dorsey is building “Web5”</strong></h3>



<p>Jack Dorsey’s Block Inc., formerly Square, is looking to skip from Web3 straight to Web5, a supposed new vision for a decentralized internet. Developed by TBD, the Bitcoin arm at Block, Web5 is built solely on the Bitcoin blockchain.</p>



<p>According to a slide deck tweeted out by the company, the platform focuses on identity management and securing personal data. TBD said the main issue with the current web is that users “are given accounts by companies and their data is held captive in app silos.”&nbsp;</p>



<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"><p lang="en" dir="ltr">this will likely be our most important contribution to the internet. proud of the team. <a href="https://twitter.com/hashtag/web5?src=hash&amp;ref_src=twsrc%5Etfw">#web5</a><br><br>(RIP web3 VCs 🤫)<a href="https://t.co/vYlVqDyGE3">https://t.co/vYlVqDyGE3</a> <a href="https://t.co/eP2cAoaRTH">https://t.co/eP2cAoaRTH</a></p>&mdash; jack (@jack) <a href="https://twitter.com/jack/status/1535314738078486533?ref_src=twsrc%5Etfw">June 10, 2022</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



<p>The Web5 concept has been mocked by industry members active in Web3, calling it a cynical attempt to piggyback on the success of existing smart contract platforms but with a Bitcoin maximalist slant.</p>



<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"><p lang="en" dir="ltr">shocking number of people not getting that that web5 is making fun of web3</p>&mdash; Neeraj K. Agrawal (@NeerajKA) <a href="https://twitter.com/NeerajKA/status/1535634052044185601?ref_src=twsrc%5Etfw">June 11, 2022</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



<p>Last week Dorsey and Jay-Z announced the launch of <a href="https://techcrunch.com/2022/06/09/jay-z-jack-dorsey-bitcoin-academy-marcy-public-housing/" target="_blank" rel="noreferrer noopener">Bitcoin Academy</a> to teach crypto to residents of Marcy Houses, a public housing complex in Brooklyn, the New York City borough where the hip-hop artist grew up. A crypto kids camp is also slated to take place, through which participants will receive a token amount of bitcoin (BTC).&nbsp;&nbsp;</p>



<p>The duo last year invested $24 million to start ₿trust, a fund to help bitcoin development in Africa and India.</p>



<h3 class="wp-block-heading"><strong>Goblintown team doxxes itself</strong></h3>



<p>The team behind one of the most recently hyped NFT projects, Goblintown, <a href="https://twitter.com/goblintownwtf/status/1536755431971987457?s=20&amp;t=0mb4WqMRz0QxVcQZ9cLgSQ">revealed</a> their identity on Tuesday via a video on Twitter. The group, Truth Labs, operates two other projects: IlluminatiNFT and The 187. When the news broke, the IlluminatiNFT collection pumped 200% to a peak floor price of 0.67 ether (ETH).</p>



<p>In the almost four-minute video, the founders said they’ve “come to a point where we feel it would be irresponsible” if they didn’t doxx themselves. Goblins has no roadmap, no Discord server, nor any utility and instead acts as a form of group therapy and comedic relief, they said.</p>



<p>The remaining 1,000 Goblins are set aside for the members of the IlluminatiNFT and The 187 projects, the team announced. And Goblins holders can expect merch to drop during the upcoming NFT.NYC.&nbsp;</p>



<p>Avid NFT collector Andrew Wang reacted to the news:</p>



<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"><p lang="en" dir="ltr">goblintown founders doxxed and turns out they&#39;re the guys from my nba fantasy league. only in web3</p>&mdash; andrew wang (@andr3w) <a href="https://twitter.com/andr3w/status/1536759428074053637?ref_src=twsrc%5Etfw">June 14, 2022</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



<h3 class="wp-block-heading"><strong>Seth Green buys back his Bored Ape</strong></h3>



<p>Actor Seth Green confirmed during a Twitter Spaces session with BuzzFeed News that his stolen Bored Ape Yacht Club (BAYC) NFT “is home.”</p>



<p>After four of Green’s BAYC NFTs (non-fungible tokens) were taken in a phishing scam and sold off, Green <a href="https://www.buzzfeednews.com/article/sarahemerson/seth-green-bored-ape-nft-returned" target="_blank" rel="noreferrer noopener">paid</a> 165 ETH, nearly $300,000 at the time, to get BAYC #8398 back.</p>



<p>BAYC’s license states that the NFT holder owns full usage rights, which sparked a debate over who owns those commercial rights in the case of theft.</p>



<p>The Bored Ape in question was intended to star in &#8220;White Horse Tavern,&#8221; a new television series that Green is producing. The production was put on hiatus due to copyright concerns. Green named the avatar Fred Simian and <a href="https://twitter.com/Fred_Simian?s=20&amp;t=tYHifEromH8c3_GG9ximVw" target="_blank" rel="noreferrer noopener">runs</a> its Twitter account.&nbsp;</p>



<h3 class="wp-block-heading"><strong>Gamestop Wallet x WAGMI Games&nbsp;</strong></h3>



<p>GameStop chose WAGMI Games to be its first wallet integration since launching in May. The blockchain-based gaming publisher’s first release, titled “WAGMI Defense,” is a humans vs. aliens SciFi game for desktop and mobile devices.</p>



<p>Currently in beta for Genesis NFT holders only, the play-to-earn game is the first blockchain game that allows players to connect either their Metamask or GameStop Wallet via browser extension.&nbsp;</p>



<p>Ian Bentley, the chief executive officer of WAGMI Games, stated in a Medium post that to have mass adoption from traditional gamers, “You can’t be a ‘crypto game.’ The blockchain element has to be behind the scenes, and with no financial volatility risk to the gamer.”</p>



<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"><p lang="en" dir="ltr">WAGMI Defense is thrilled to integrate the <a href="https://twitter.com/GameStopNFT?ref_src=twsrc%5Etfw">@GameStopNFT</a> Wallet into our Tower Defense Game.<br><br>Power to the Players!!!<br><br>Check it out @ <a href="https://t.co/rdNP7WcSW3">https://t.co/rdNP7WcSW3</a>. Click the &#39;PLAY NOW&#39; button to view our BETA marketplace (on desktop).<br><br>Download the GME Wallet: <a href="https://t.co/YuA2BKblGI">https://t.co/YuA2BKblGI</a> <a href="https://t.co/5XjKICdp1a">pic.twitter.com/5XjKICdp1a</a></p>&mdash; WAGMI Games | Tower Defense Game (@WagmiGameCo) <a href="https://twitter.com/WagmiGameCo/status/1535245143212793857?ref_src=twsrc%5Etfw">June 10, 2022</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



<h3 class="wp-block-heading"><strong>Web3 funding rolls in despite bear market</strong></h3>



<ol><li>SKNUPS <a href="https://www.businesswire.com/news/home/20220607005674/en/Digital-Fashion-Platform-SKNUPS-Signs-Worldwide-Gaming-Partnership-With-Dolce-Gabbana">raised</a> $3.5 million for blockchain game collectibles and unveiled a partnership with Italian fashion house Dolce &amp; Gabbana. The pre-seed round involved Redrice Ventures, Blue Wire Capital and Adelpha, among others. SKNUPS is a digital collectibles platform for metaverse streetwear and beauty brands.&nbsp;</li><li>Venture capital firm True Global Ventures 4 Plus (TGV4 Plus) <a href="https://www.tgv4plus.com/tgv4-closes-new-us146m-follow-on-fund.html" target="_blank" rel="noreferrer noopener">closed</a> a $146 million funding round, part of its new Follow On Fund. Led by a group of 15 general partners who committed a total of $62 million, investments will go into Web3 companies within TGV’s portfolio and other late-stage Web3 projects.</li><li>Digital asset exchange Huobi Global’s launched a new investment arm, Ivy Blocks, to deploy over $1 billion in cryptoassets under management into decentralized finance (DeFi) and Web3 projects in their seed or growing stages. An incubator and research service will also be part of Ivy Blocks.&nbsp;</li></ol>



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Web3 Watch: Is Web5 Better Than Web3?

<div id="highlights-block_628bfcc6dfb36" class="highlights">
        <ul>
                <li>Milady Maker founder apologizes over “toxic baggage”</li>
                <li>Chinese citizens mint NFTs to beat censorship</li>
            </ul>
    
</div>



<p>Profile picture NFT project Milady Maker is causing a stir on Twitter after its ​​founder was called out for controversial tweets and a shady internet history. Anonymous online collective Remilia created the Y2K Tokyo street fashion-inspired avatars that sold for an average price of $6,000 in April.</p>



<p>The collection has seen consecutive losses in the past few days as Remilia’s CEO, Charlotte Fang, also known as Charlie, stepped down from the project. When crypto Twitter accused Fang of being tied to an account named &#8220;Miya,&#8221; associated with hate speech and cults, the founder initially denied it. On Saturday, however, Fang confessed to being Miya and apologized for trying to hide its “toxic baggage.”</p>



<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"><p lang="en" dir="ltr">OK, full disclosure: I was Miya. And its toxic baggage that’s hurting Milady community &amp; poisoning the vibe. I apologize about trying to hide the past account—Miya has nothing to do with Milady Maker &amp; should stay that way so I’ll be stepping down from the team from here.</p>&mdash; ♡ Charlotte Fang 刹利 🍎 (@CharlotteFang77) <a href="https://twitter.com/CharlotteFang77/status/1527987970862718976?ref_src=twsrc%5Etfw">May 21, 2022</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



<p>It is unclear what the true story behind Remilia and Milady is, but one Twitter user, @0xngmi, claims to have “proof” of the allegations against Miya. The user posted a thread on Sunday night compiling their theories, which quickly spread over Twitter and caused a number of holders to dump their Miladys.&nbsp;</p>



<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"><p lang="en" dir="ltr">megathread on milady and their founders:<br><br>&#8211; miya&#39;s writings<br>&#8211; Grooming<br>&#8211; Gaslighting<br>&#8211; Systemspace and suicide of 17yo teen<br>&#8211; Remilia implication<br><br>proof of everything will be at the end of the thread</p>&mdash; 0xngmi is grazing (@0xngmi) <a href="https://twitter.com/0xngmi/status/1528572556894142464?ref_src=twsrc%5Etfw">May 23, 2022</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



<h3 class="wp-block-heading"><strong>Buterin vs. Bored Apes&nbsp;</strong></h3>



<p>Ethereum co-founder Vitalik Buterin recently published a Twitter thread expressing his conflicted feelings about Web3 and Ethereum use cases that may “contradict” his values.&nbsp;</p>



<p>Among those contradictions is a “dislike of many modern financial blockchain ‘applications’ ($3M monkeys etc), and my grudging appreciation for the fact that that stuff is a big part of what keeps the crypto economy running,” Vitalik wrote.&nbsp;</p>



<p>His reference to Bored Ape Yacht Club (BAYC) NFTs (non-fungible tokens) as “$3M monkeys” incited many users to respond. @just1n_eth <a href="https://twitter.com/just1n_eth/status/1526427070821085184?s=20&amp;t=Zi7oGRhESvHiWx3aaMHQ2w" target="_blank" rel="noreferrer noopener">called on</a> Buterin to “respect” Bored Apes, “instead of consistently taking your shots.” Another user, @OGDeathBot, <a href="https://twitter.com/OGDeathBot/status/1526417041774612480?s=20&amp;t=Zi7oGRhESvHiWx3aaMHQ2w" target="_blank" rel="noreferrer noopener">pointed out</a> that digital collectibles are “fun” and “necessary for mainstream adoption.”</p>



<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"><p lang="en" dir="ltr">Thread: some still open contradictions in my thoughts and my values, that I have been thinking about but still don&#39;t feel like I&#39;ve fully resolved.</p>&mdash; vitalik.eth (@VitalikButerin) <a href="https://twitter.com/VitalikButerin/status/1526378787855736832?ref_src=twsrc%5Etfw">May 17, 2022</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



<p>In other BAYC news, a Singaporean man has won a court injunction that froze his BAYC #2162 NFT, preventing any potential sale or ownership transfer. The NFT is currently pending the resolution of an ownership dispute after it was foreclosed on as collateral for an NFT loan that the owner had taken out against it. The leading counsel for the case, Shaun Leong, <a href="https://www.bloomberg.com/news/articles/2022-05-20/bored-ape-nft-barred-from-sale-by-singapore-court-after-dispute" target="_blank" rel="noreferrer noopener">told</a> Bloomberg: “It is the first decision in a commercial dispute where NFTs are recognized as valuable property worth protecting.&#8221;&nbsp;</p>



<p>On Sunday night, the window to claim Otherdeed for Otherside land for BAYC and Mutant Ape Yacht Club NFT holders officially closed. <a href="https://twitter.com/OthersideMeta/status/1528556346672656385?s=20&amp;t=Ho9oOYC7IBPzgne4xO1Tzw" target="_blank" rel="noreferrer noopener">According</a> to the team, the first tech demo will happen on July 16. Yuga Labs opened the Otherdeed sale on April 30 and has since dropped trailers and teasers of its much-anticipated Otherside metaverse and RPG game.</p>



<h3 class="wp-block-heading"><strong>GameStop and Loopring launch MetaMask-like wallet</strong></h3>



<p>Video game retailer GameStop announced its latest Web3 move, launching the beta version of a self-custodial Ethereum wallet. It uses Loopring, an Ethereum layer-2 solution, that is built to enable cheaper and faster transactions than with Ethereum layer-1 mainnet.</p>



<p>Wallet users can access their assets via a private key and can store and trade ETH, NFTs and ERC-20 tokens through their web browsers. The wallet comes as a browser extension, similar to MetaMask, and is available on Chrome’s web store. The wallet supports cryptocurrencies and NFT operability across multiple decentralized apps (Dapps), including GameStop’s beta NFT marketplace.</p>



<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"><p lang="en" dir="ltr">It’s official! The GameStop Wallet is here.<br><br>Download: <a href="https://t.co/GkxiRaYN7W">https://t.co/GkxiRaYN7W</a><br>Follow: <a href="https://twitter.com/GameStopNFT?ref_src=twsrc%5Etfw">@GameStopNFT</a><br>🧵👇</p>&mdash; GameStop (@GameStop) <a href="https://twitter.com/GameStop/status/1528693604364976129?ref_src=twsrc%5Etfw">May 23, 2022</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



<p>Recently, GameStop partnered with Immutable X, a layer-2 scaling platform built on Ethereum, to power its forthcoming blockchain-based marketplace that will reportedly launch in the second quarter of this year. The two companies also <a href="https://cms.blockworks.co/gamestop-immutable-to-launch-100-joint-fund-for-gaming-nfts/" target="_blank" rel="noreferrer noopener">launched a $100 million joint fund</a> to invest IMX tokens in NFT-focused gaming projects.</p>



<h3 class="wp-block-heading"><strong>NFTs are used to combat censorship in China</strong></h3>



<p>A noteworthy use case for NFTs is becoming increasingly popular in China, where citizens are leveraging NFTs to secure images, videos, audio and social media posts on a blockchain before the Chinese government can get to it.</p>



<p>Since Shanghai mandated its 25 million residents back into lockdown, Chinese internet censors have been scrubbing content from social media that shows any negative images and experiences, <a href="https://www.wsj.com/articles/nfts-are-put-to-new-use-in-china-countering-censorship-during-pandemic-11653134403?mod=Searchresults_pos2&amp;page=1" target="_blank" rel="noreferrer noopener">according</a> to the Wall Street Journal.</p>



<p>For example, one six-minute video clip dubbed “Voices of April” featuring audio recordings of conversations and cries for help from Shanghai residents struggling to access food and medical care went viral on April 22 but was deleted.</p>



<p>In response, internet users minted copies of the <a href="https://opensea.io/collection/voice-of-april" target="_blank" rel="noreferrer noopener">video into NFTs on OpenSea</a>, not necessarily for profit but to preserve history.</p>



<h3 class="wp-block-heading"><strong>OpenSea launches open-source Web3 marketplace protocol&nbsp;</strong></h3>



<p>NFT marketplace OpenSea <a href="https://opensea.io/blog/announcements/introducing-seaport-protocol/" target="_blank" rel="noreferrer noopener">launched</a> on May 20 a new protocol for buying and selling NFTs that will broaden the range of assets that can be traded as well as hand control over the marketplace to developers.&nbsp;</p>



<p>According to the company, the new protocol, known as Seaport, is a “foundation to empower the developer community to work together” to unlock use cases that “keep the community safe.” The protocol is not controlled by OpenSea, and its core smart contract is open to all NFT builders, creators and collectors to optimize.&nbsp;</p>



<p>Users of marketplaces built on the Seaport protocol will be able to offer a range of assets in exchange for an NFT, including ERC-20, ERC-721 and ERC-1155 tokens, in addition to ETH. OpenSea considers this system safer because a user can agree to barter with a combination of tokens as a method of payment.</p>



<p>Additionally, users can specify certain criteria, such as rarities or NFT traits, that they would require to accept an offer. Seaport will even support “tipping,” so long as the amount does not exceed the original offer.</p>



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Web3 Watch: Milady Maker Twitter Storm and GameStop’s Ethereum Wallet

Morgan Chittum

<div id="highlights-block_61fbbb4687251" class="highlights">
        <ul>
                <li>Immutable previously partnered with TikTok for its first foray into NFTs</li>
                <li>Co-founder of Immutable said talks of a partnership with GameStop started over six months ago</li>
            </ul>
    
</div>





<p>GameStop and Immutable are launching a $100 million joint fund to invest in <a href="https://cms.blockworks.co/the-investors-guide-to-gaming-nfts/">gaming NFT</a> projects, according to an announcement on Thursday.</p>



<p>Immutable X, a layer-2 scaling platform built on Ethereum, will also be partnering with the company to power its forthcoming blockchain-based marketplace, co-founder Robbie Ferguson told Blockworks.</p>



<p>“We are going to market to try to bring NFTs to games,” Ferguson said. “The $100 million fund is going to be dedicated to everyone from indie games to AAA publishers who want to come and build on Immutable X and also want to have access to GameStop’s distribution [and] marketplace.”</p>



<p>The carbon neutral layer-2 has zero gas fees and nearly instant trade execution, according to Ferguson. It previously <a href="https://cms.blockworks.co/tiktoks-venture-into-nfts-the-hype-and-alleged-mess/" target="_blank" rel="noreferrer noopener">partnered with TikTok</a> in September for its first foray into NFTs.</p>



<p>“Immutable is not for expensive and luxury JPEGs,” Ferguson said. “What I’m excited about is how we can take NFTs to the masses and actually create better experiences for players.&#8221;</p>



<p>The Sydney-based startup has not officially announced which gaming projects will receive funds, but Ferguson anticipates them to be “mid-market [gaming] studios” that are “looking to go heavily into NFTs.”</p>



<p>The co-founder of Immutable said talks of a partnership with GameStop started over six months ago and that the $100 million capital comes from Immutable’s token funds.&nbsp;</p>



<p>Reports of GameStop dabbling in the nascent NFT space emerged last month, when <a href="https://www.wsj.com/articles/gamestop-entering-nft-and-cryptocurrency-markets-as-part-of-turnaround-plan-11641504417?mod=Searchresults_pos1&amp;page=1" target="_blank" rel="noreferrer noopener">The Wall Street Journal</a> wrote that the retailer would be launching a division to develop a marketplace for the digital collectibles and establish partnerships with cryptocurrency companies. GameStop did not immediately respond to Blockworks&#8217; request for comment on when the marketplace will officially launch.</p>



<p>“We believe our emphasis on the long term is positioning us to build what will ultimately become a much larger business,” GameStop Matt Furlong said on an earnings call in November.&nbsp;</p>


<p>[stock_market_widget type=&#8221;inline&#8221; template=&#8221;generic&#8221; assets=&#8221;GME&#8221; markup=&#8221;{name} ({symbol}) is trading at {price} ({change_pct})&#8221; display_currency_symbol=&#8221;true&#8221; api=&#8221;yf&#8221;]</p>



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GameStop, Immutable to Launch $100M Joint Fund for Gaming NFTs

Sam Martin

<div id="highlights-block_617725d07bf3f" class="highlights">
        <ul>
                <li>Kadena (KDA) is up over 1100% over the last 30 days despite the broader market sell-off</li>
                <li>NFTs continue their battle test during market turbulence</li>
            </ul>
    
</div>



<p>Kadena (KDA), a project backed by the co-inventor of blockchain technology, soars to new heights. </p>



<p>Loopring (LRC) is a zkRollup layer-2 that can achieve security and high throughput at a low cost for decentralized exchanges (DEXs).</p>



<p>NFTs continue their battle test during market turbulence. </p>



<h3 class="wp-block-heading"><strong>Latest in Macro:</strong></h3>



<ul><li>S&amp;P 500: 4,649, +.06%</li><li>NASDAQ: 15,704, +.52%</li><li>Gold: $1,862, unchanged</li><li>WTI Crude Oil: $81.19, unchanged</li><li>10-Year Treasury: 1.57%, unchanged</li></ul>



<h3 class="wp-block-heading"><strong>Latest in Crypto:</strong></h3>



<ul><li>BTC: $65,081, +1.33%</li><li>ETH: $4,738, +3.31%</li><li>ETH/BTC: .0729, +2.25%</li><li>BTC.D: 43.21%, -1.56%</li></ul>



<h3 class="wp-block-heading">Kadena</h3>



<p>Kadena aims to be the first scalable proof-of-work blockchain that leverages a robust smart contract language, Pact. The people behind KDA are Stuart Popejoy, who previously led JPMorgan&#8217;s emerging blockchain group, and Will Martino, who was the previous tech lead for the SEC&#8217;s cryptocurrency steering committee. </p>



<p>The project&#8217;s most notable advisor is Dr. Stuart Haber, the co-inventor of blockchain technology and the most cited author in Satoshi Nakamoto’s renowned 2008 Bitcoin <a href="https://bitcoin.org/bitcoin.pdf" target="_blank" rel="noreferrer noopener">white paper</a>.</p>



<p>&#8220;Our ecosystem powers real-world use cases for enterprises and entrepreneurs, providing the security of bitcoin, virtually free gas (transaction fees), unparalleled throughput, as well as Pact – the most secure smart contract language with built-in bug detection,&#8221; <a href="https://docs.kadena.io/kadena/overview-of-kadena#vision" target="_blank" rel="noreferrer noopener">according</a> to the project&#8217;s website. </p>



<p>Kadena plans to leverage multiple proof-of-work chains to achieve high transaction throughput, somewhat comparable to Polkadot (DOT). A 700 million KDA token pool is to be emitted over the next 120 years to incentivize miners to process transactions and secure the network.  </p>



<p>The KDA price has gone parabolic over the past month, last trading near $26 with a market capitalization of $4.1 billion and a fully diluted value of over $26 billion, according to CoinMarketCap. Kadena is currently the 48th-largest digital asset by market cap. </p>



<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" decoding="async" width="1024" height="601" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/11/KDAUSDT_2021-11-11_15-09-41-1024x601.png" alt="" class="wp-image-11011" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/11/KDAUSDT_2021-11-11_15-09-41-1024x601.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/KDAUSDT_2021-11-11_15-09-41-1024x601.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/KDAUSDT_2021-11-11_15-09-41-1024x601.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/KDAUSDT_2021-11-11_15-09-41-1024x601.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/KDAUSDT_2021-11-11_15-09-41-1024x601.png?w=445 445w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/KDAUSDT_2021-11-11_15-09-41-1024x601.png?w=373 373w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/KDAUSDT_2021-11-11_15-09-41-1024x601.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/KDAUSDT_2021-11-11_15-09-41-1024x601.png?w=1153 1153w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption>Source: Trading View</figcaption></figure></div>



<h3 class="wp-block-heading">KDA token structure</h3>



<p>&#8220;KDA is a digital currency that is used to pay for compute on the Kadena public chain,&#8221; the project&#8217;s website <a href="https://docs.kadena.io/kadena/what-is-kda" target="_blank" rel="noreferrer noopener">states</a>. &#8220;Similar to ETH on Ethereum, KDA on Kadena is the manner by which miners are compensated for mining blocks on the network and is the transaction fee that users pay in order to have their transactions included in a block.&#8221;</p>



<p>The token supply is fixed at 1 billion coins to be emitted over the next 120 years. The initial emissions schedule of tokens can be seen in the photo below, though Martino announced slight changes in a <a href="https://medium.com/kadena-io/update-to-the-kadena-token-economic-model-21e1ec18f099" target="_blank" rel="noreferrer noopener">Medium</a> article. </p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" decoding="async" width="700" height="232" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/11/KDA-emmisions-.jpg" alt="" class="wp-image-11012" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/11/KDA-emmisions-.jpg?w=700 700w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/KDA-emmisions-.jpg?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/KDA-emmisions-.jpg?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/KDA-emmisions-.jpg?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/KDA-emmisions-.jpg?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/KDA-emmisions-.jpg?w=80 80w" sizes="(max-width: 700px) 100vw, 700px" /><figcaption>Source: docs.kadena.io</figcaption></figure></div>



<p>According to a Messari <a href="https://messari.io/pdf/smartcontracts-q3-2020.pdf" target="_blank" rel="noreferrer noopener">report</a> released in Q3 of 2020, Kadena has the second-most community-favorable token distribution among the top 12 layer-1 projects. </p>



<p>However, it is worth noting that 70% of KDA tokens are centrally controlled and subject to change. </p>



<p>&#8220;Kadena will not exceed a platform coin release rate of 22.08M tokens/year and 2M tokens/month,&#8221; Martino wrote. &#8220;Kadena reserves the right to further modify, decrease or increase the platform emission schedule in the future for what Kadena believes is in the best interests of the platform, Kadena, and the ecosystem.&#8221;</p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" decoding="async" width="683" height="558" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-11-at-2.36.35-PM-1.png" alt="" class="wp-image-11040" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-11-at-2.36.35-PM-1.png?w=683 683w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-11-at-2.36.35-PM-1.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-11-at-2.36.35-PM-1.png?w=315 315w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-11-at-2.36.35-PM-1.png?w=319 319w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-11-at-2.36.35-PM-1.png?w=268 268w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-11-at-2.36.35-PM-1.png?w=80 80w" sizes="(max-width: 683px) 100vw, 683px" /></figure></div>



<h3 class="wp-block-heading">Roadmap and critics</h3>



<p>The project&#8217;s plans include wrapped KDA to bring the asset to the Ethereum ecosystem, NFT projects and lending platforms. </p>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="621" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-11-at-3.33.45-PM-1024x621.png" alt="" class="wp-image-11014" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-11-at-3.33.45-PM-1024x621.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-11-at-3.33.45-PM-1024x621.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-11-at-3.33.45-PM-1024x621.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-11-at-3.33.45-PM-1024x621.png?w=424 424w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-11-at-3.33.45-PM-1024x621.png?w=431 431w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-11-at-3.33.45-PM-1024x621.png?w=361 361w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-11-at-3.33.45-PM-1024x621.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-11-at-3.33.45-PM-1024x621.png?w=1145 1145w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption>Source: https://kadena.io/roadmap/</figcaption></figure>



<p>CTO Larsson Founder Anders Larsson recently <a href="https://www.youtube.com/watch?v=I3BEUqRfr78" target="_blank" rel="noreferrer noopener">posted</a> a video on YouTube where he tries to deploy a smart contract on Kadena&#8217;s testnet, though he was unable to do so. Larsson said in the video that Cardano was able to achieve a $90 billion market cap without any functionality, adding that anything is possible for the KDA price.</p>



<h3 class="wp-block-heading">Loopring</h3>



<p>Loopring (LRC) is an Ethereum token that describes itself as “an open-sourced, audited, and non-custodial exchange protocol.” It aims to allow anyone to build non-custodial, order book-based exchanges on Ethereum by leveraging zero-knowledge proofs, according to the asset&#8217;s Coinbase <a href="https://www.coinbase.com/price/loopring" target="_blank" rel="noreferrer noopener">description</a>. </p>



<p>According to the project&#8217;s official <a href="https://loopring.org/#/" target="_blank" rel="noreferrer noopener">website</a>, Loopring is a zkRollup layer-2 that can achieve security and high throughput at a low cost. </p>



<p>Centralized exchanges lack transparency, have high fees, and carry custodial risk, according to the project&#8217;s <a href="https://loopring.org/resources/en_whitepaper.pdf" target="_blank" rel="noreferrer noopener">white paper</a>. There has been a boom in the use of decentralized exchanges (DEXs) such as Uniswap (UNI), but they are often less efficient and have fragmented liquidity.  </p>



<p>Loopring will manage orders in a more centralized manner but settle the trades on-chain, the research adds. By combining up to 16 orders into circular trades instead of allowing strictly one vs. one trading pairs, Loopring expects to increase the efficiency of order execution, as well as enhance the liquidity of DEXs. </p>



<p>LRC can be earned through a process called &#8220;ring mining.&#8221; Because orders are not matched up in pairs like a standard DEX, the protocol can mix and match up to 16 orders for different cryptocurrencies in a circular trade called an &#8220;order ring.&#8221; Ring mining is essentially combining individual orders into these order rings, the white paper says.</p>



<p>The token distribution can be best explained by the following photo:</p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" decoding="async" width="675" height="641" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-11-at-4.25.37-PM.png" alt="" class="wp-image-11017" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-11-at-4.25.37-PM.png?w=675 675w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-11-at-4.25.37-PM.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-11-at-4.25.37-PM.png?w=271 271w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-11-at-4.25.37-PM.png?w=275 275w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-11-at-4.25.37-PM.png?w=231 231w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-11-at-4.25.37-PM.png?w=80 80w" sizes="(max-width: 675px) 100vw, 675px" /><figcaption>Source: https://medium.com/loopring-protocol/lrc-tokenomics-v2-1e6fd99e9e9c</figcaption></figure></div>



<p>LRC has been on an absolute tear, last trading near $3.35 and up 728% over the last 30 days.</p>



<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" decoding="async" width="1024" height="601" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/11/LRCUSD_2021-11-11_16-08-43-1024x601.png" alt="" class="wp-image-11015" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/11/LRCUSD_2021-11-11_16-08-43-1024x601.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/LRCUSD_2021-11-11_16-08-43-1024x601.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/LRCUSD_2021-11-11_16-08-43-1024x601.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/LRCUSD_2021-11-11_16-08-43-1024x601.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/LRCUSD_2021-11-11_16-08-43-1024x601.png?w=445 445w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/LRCUSD_2021-11-11_16-08-43-1024x601.png?w=373 373w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/LRCUSD_2021-11-11_16-08-43-1024x601.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/LRCUSD_2021-11-11_16-08-43-1024x601.png?w=1153 1153w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure></div>



<h3 class="wp-block-heading">Non-Fungible Tokens (NFTs)</h3>



<p>Trading data from <a href="https://opensea.io/rankings" target="_blank" rel="noreferrer noopener">OpenSea</a> and <a href="https://solanalysis.com" target="_blank" rel="noreferrer noopener">Solanalysis</a> of some of the top Solana and Ethereum projects can be found below:</p>



<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" decoding="async" width="1024" height="332" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-11-at-4.28.31-PM-1024x332.png" alt="" class="wp-image-11018" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-11-at-4.28.31-PM-1024x332.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-11-at-4.28.31-PM-1024x332.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-11-at-4.28.31-PM-1024x332.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-11-at-4.28.31-PM-1024x332.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-11-at-4.28.31-PM-1024x332.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-11-at-4.28.31-PM-1024x332.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-11-at-4.28.31-PM-1024x332.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-11-at-4.28.31-PM-1024x332.png?w=1224 1224w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption>Top Ethereum Projects</figcaption></figure></div>



<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" decoding="async" width="1024" height="284" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-11-at-4.28.40-PM-1024x284.png" alt="" class="wp-image-11019" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-11-at-4.28.40-PM-1024x284.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-11-at-4.28.40-PM-1024x284.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-11-at-4.28.40-PM-1024x284.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-11-at-4.28.40-PM-1024x284.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-11-at-4.28.40-PM-1024x284.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-11-at-4.28.40-PM-1024x284.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-11-at-4.28.40-PM-1024x284.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-11-at-4.28.40-PM-1024x284.png?w=1205 1205w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption>Top Solana Projects </figcaption></figure></div>



<p>If you made it this far, thanks for reading! I am looking forward to catching up tomorrow.</p>



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