Ornella Hernandez

The 2022 FIFA World Cup kicked off in Qatar, but whether various NFT projects score with the public is another matter. Lionel Messi’s non-fungible token drop with Ethernity and Cristiano Ronaldo’s collection with Binance took two of the world’s biggest stars <a href="https://blockworks.co/news/messi-ronaldo-world-cup-nfts">to the blockchain last week</a>.



Aside from World Cup fever, there’s plenty more going on in the world of Web3. Blockworks spoke to one of the artists behind an artificial intelligence-based NFT collection that sold out via <a href="https://blockworks.co/news/qa-artist-refik-anadol-on-ai-based-nfts-for-instagram">Instagram’s recently launched NFT marketplace</a>.



Here are some other notable stories that caught the eye of the Web3 Watch.&nbsp;



<h3 class="wp-block-heading">NFT royalties recap</h3>



While Instagram’s NFT marketplace requires creators to set 5% minimum royalty fee in case their NFTs are sold in the secondary marketplace, many other marketplaces have been <a href="https://blockworks.co/news/nft-royalties-sometimes-they-work-sometimes-they-dont">eliminating royalties or going royalty-optional</a>.&nbsp;



This has caused controversy within the NFT community because royalties or residuals were considered a cornerstone of NFT technology — a key (and to many, definitive) use case that enables artists to garner recurring income when their works are resold.&nbsp;&nbsp;



OpenSea, the largest NFT marketplace, almost made creator fees optional for traders on existing collections, while it also launched a tool that would let creators of new Ethereum NFT projects block marketplaces that don’t fully honor royalties.&nbsp;



Due to community pushback, OpenSea backtracked in a matter of days and <a href="https://twitter.com/opensea/status/1590466334814785537?s=20&amp;t=7Vd8x1xcmW6Dd0iV1fURsA">tweeted</a> that it would continue to enforce creator fees on all existing collections. They cited that the economic downturn was a major factor: “Those looking to sell their NFTs are trying to sell them for as much as they can. Moving their listings to marketplaces that don’t enforce fees is one way to do this.”



Marketplaces such as Magic Eden, the top Solana NFT market, gave customers the choice of whether to pay the creator&#8217;s fee when they buy an NFT. The theory behind this model is that it encourages collectors to keep using the site because of the lower fees. The worry is that it sets a bad precedent for creators.



LooksRare also eliminated creator royalties, but buyers can still opt-in to pay royalties at checkout if they wish. The marketplace will instead share 25% of the LooksRare protocol fee with creators and collection owners.



SuperRare, on the other hand, has a mechanism that gives collectors the same opportunity to receive royalties-based rewards as artists do. And X2Y2 recently announced that it would start enforcing creator royalties.



In reaction to OpenSea’s “part-solution,” Michael Powell, product marketing lead at layer-2 blockchain scaling solution Immutable, told Blockworks that “While this particular situation was resolved in favor of artists and communities, there are always risks of Web3 losing its vision and core principles, shifting it much closer to traditional centralized frameworks that are not so fair toward content creators and fans.”



He added that supporting creators will win out in the long run against “what can quickly become a race to the bottom to drive short-term user acquisition.”



Immutable’s response to the debate was to <a href="https://blockworks.co/news/immutable-alex-connolly-on-protecting-nft-creator-royalties">enforce royalty payouts</a> and guarantee that creators can always add royalties to their collections rather than letting traders decide.&nbsp;



<h3 class="wp-block-heading">ApeCoin DAO launches marketplace; geo-blocks US APE stakers</h3>



ApeCoin DAO, the decentralized autonomous organization made up of ApeCoin (APE) holders, launched its own NFT marketplace for Bored Ape Yacht Club (BAYC), Mutant Ape Yacht Club (MAYC), Bored Ape Kennel Club, Bored Ape Chemistry Club and Otherdeed for Otherside NFTs.



The marketplace, which is not officially associated with Yuga Labs, was built by NFT&nbsp; infrastructure company Snag Solutions. The company’s founder Zach Heerwagen <a href="https://twitter.com/ZHeerwagen/status/1595462170996711433?s=20&amp;t=hhL1iqfTZ4pJxCtAtYMk7Q">tweeted</a> that the platform includes “unique features built specifically for the BAYC and Otherside communities, including ApeCoin staking and NFT metadata integrations.”



He also added there is a reduced fee scheme for sellers: 0.5% fees on ETH sales, 0.25% fees on ApeCoin transactions, and the platform retains 0.25% of each sale in a multi-signature wallet to fund future DAO initiatives.



ApeCoin, BAYC’s Ethereum-based governance and utility token, launched in March but staking will go live on Dec. 5, the ApeCoin DAO confirmed on Nov. 24.



However, the US was added to a list of regions geo-blocked from using the APE staking service ApeStake. Canada, North Korea, Syria, Iran, Cuba, Russia and the Russian-controlled areas of Ukraine, Crimea, Donetsk and Luhansk are also on the block list.



The DAO claimed that due “today’s regulatory environment, we had no good alternative.”



<h3 class="wp-block-heading">Mattel Creations — another day, another marketplace </h3>



Mattel, the toy manufacturer behind brands like Barbie and Hot Wheels, has also released its own NFT marketplace. Mattel Creations is built on the Flow blockchain, which also powers the NBA Top Shot project and is backed by Dapper Labs. The direct-to-consumer platform will not require users to use cryptocurrency to buy the NFTs.&nbsp;



The first NFT collection to drop will be a new series of the Hot Wheels NFT Garage project on Dec. 15, <a href="https://corporate.mattel.com/news/mattel-creations-launches-digital-collectibles-marketplace">according</a> to the company. This includes digital collectibles of 60 popular cars from McLaren, Chevrolet, Honda, Aston Martin and other brands. Holders of the rarest NFTs will be able to redeem physical die-cast replicas.



Mattel claims it is the first toy company to launch NFTs. Previous NFT projects include Barbie’s collection of digital collectibles in collaboration with fashion house Balmain, as well as the Barbie collab with the Boss Beauties NFT community.



The goal of the marketplace is to “to translate iconic Mattel IP into digital art,” stated Ron Friedman, Vice President at Mattel Future Lab. Other Mattel intellectual property includes Fisher-Price, American Girl, Thomas &amp; Friends and UNO.

Web3 Watch: NFT Royalty Roundup, Ape Stakes, And Digital Hot Wheels

The crypto industry, especially the centralized finance (CeFi) sector, has been <a href="https://blockworks.co/news/genesis-halts-lending" target="_blank" rel="noreferrer noopener">spun into chaos</a> following the revelation of FTX’s major market fraud. The bankrupt crypto exchange’s former CEO <a href="https://blockworks.co/news/what-do-tom-brady-steph-curry-and-naomi-osaka-have-in-common-an-ftx-lawsuit" target="_blank" rel="noreferrer noopener">Sam Bankman-Fried is now being sued for $11 billion</a> in damages.



An NFT-related casualty is the collection of Coachella NFTs stuck on the NFT marketplace without the option to withdraw or transfer them. The lifetime passes that generated $1.5 million in sales are now stuck on the custodial platform, <a href="https://twitter.com/_Kaspar__/status/1592542238361669632?s=20&amp;t=Qi1RMApzAjDzYC7C6pdGxw" target="_blank" rel="noreferrer noopener">currently disabled</a>.&nbsp;



Nevertheless, Web3 companies keep on trudging and building through this crypto winter. And a few winners of the week emerge, mainly Yuga Labs, Nike and Azuki.



Here are some notable stories that caught the eyes of the Web3 Watch.&nbsp;



Yuga Labs has been busy



The parent company behind Bored Ape Yacht Club (BAYC) <a href="https://news.yuga.com/yuga-labs-acquires-wenew-10ktf-figge" target="_blank" rel="noreferrer noopener">announced</a> on Monday its acquisition of WENEW Labs, an NFT venture co-founded by Mike “Beeple” Winkelmann. This new addition to the Yuga Labs family included the NFT collection 10KTF — a digital fashion shop in a “New Tokyo” universe.&nbsp;



Beeple has also joined the Yuga team as an advisor on the project, and Michael Figge, former WENEW CEO, is now Yuga’s chief content officer.&nbsp;



10KTF joins BAYC, Mutant Ape Yacht Club (MAYC), Bored Ape Kennel Club, Otherdeed for Otherside, CryptoPunks and Meebits collections.&nbsp;



The 10KTF shop is run by artisan Wagmi-san and offers metaverse-ready accessories and digital wearables from the top Ethereum NFT collections, from BAYC to Moonbirds and Nouns. The store has also collaborated on special merch with brands such as Louis Vuitton, Playboy, Wimbledon, Gucci, Puma and others.&nbsp;



Yuga’s metaverse, Otherside, hinted at a possible collaboration with 10KTF, <a href="https://twitter.com/OthersideMeta/status/1592165612721426433?s=20&amp;t=VShuBxK3wC9xoIkYSgVTEw" target="_blank" rel="noreferrer noopener">tweeting</a> “Welcome to the Otherside, Wagmi-san.” Following the Monday announcements, four Yuga Labs NFTs still top the volume charts on OpenSea at the time of writing — BAYC, MAYC, Otherdeed for Otherside and CryptoPunks.



While BAYC has seen the most trading volume in ETH over the past seven days on OpenSea, its floor price briefly fell by more than 20% this week. After hovering around 60 ETH for the past couple of weeks, the floor price fell to 48 ETH, the lowest it has been since December 2021.&nbsp;



This allowed CryptoPunks to flip BAYC’s floor price. The current lowest priced punk available is for 66.79 ETH ($79,537), while the cheapest Bored Ape is going for 62.05 ETH ($73,559). CryptoPunks’ floor price has remained neutral to market conditions since early 2022 and seemingly unaffected in the aftermath of FTX.



Bored Ape NFTs, on the other hand, may have been affected by a rush of buyers on peer-to-peer lending platform BenDAO. It allows users to borrow up to 40% of an NFT’s floor price, and if the loan repayment fails, then the NFT will go on sale in a 48-hour auction.



Concerns over buying interest on BenDAO may have “pummeled the floor,” as punk9059 <a href="https://twitter.com/punk9059/status/1592670164453306368?s=20&amp;t=jTX6iDiBqFrzxhDby18rXA" target="_blank" rel="noreferrer noopener">tweeted</a>, and led to higher than average daily trades this week.&nbsp;&nbsp;



Nike’s new NFT world



Nike, who already owns the popular RTFKT NFT project, launched an NFT marketplace called .Swoosh — yes, with the dot — built on Polygon. The sports apparel company <a href="https://blog.swoosh.nike/what-just-happened-74f854d6c00f" target="_blank" rel="noreferrer noopener">described</a> it as “our own special place on the internet where you can collect and help shape Nike virtual creations.”



Users can trade virtual apparel, sneakers, accessories and other collectibles to dress up an avatar and also unlock access to in-real-life products and events. Benefits could range from preordering a physical item, chatting with the shoe designers or even athletes that Nike sponsors.



The first collection will drop closer to the New Year, and the idea is for the community to be involved in future drops. It will host creator challenges where users can earn a royalty from the virtual products co-created with Nike.&nbsp;



Users will be able to create their own .Swoosh IDs as free NFTs minted on Polygon, which are necessary in order to access the platform. It’s like Nike&#8217;s proprietary version of the open Ethereum Name Service (ENS).



Registrations for .Swoosh ID&#8217;s start on Nov. 18, and once a user claims their ID they will be given a BitGo wallet.



Nike’s Web3 plans include an educational aspect. The company plans to go on a tour across the US, starting in Austin, TX, hosting tutorials and workshops on how their products work.



The brand works with some of the top athletes and celebrities in the world, such as Cristiano Ronaldo, Lebron James, Michael Jordan and Serena Williams to name a few. This means that any potential .Swoosh drop from one of them could likely help to onboard millions of new users into the space — similar to how Reddit’s NFT market onboarded nearly 3 million non-native users in only a few months due to its easy-to-understand language.&nbsp;



Nike also hinted at the possibility of video games and immersive experiences that may be coming soon. Nike <a href="https://blockworks.co/news/web3-watch-crypto-gaming-console-in-the-works-nikes-metaverse-plans" target="_blank" rel="noreferrer noopener">filed a trademark application</a> for “video game integration” of NFTs in June with the United States Patent and Trademark Office.



Azuki to Race in F1



The Formula 1 season finale is coming up in Abu Dhabi this weekend, and Azuki holders and fans may be in for a big surprise.&nbsp;



Oracle Red Bull Racing, its main crypto sponsor Bybit and Azuki creator Chiru Labs have emblazoned Lei the Lightning Azuki #8494 on the side of a race car. 


<div class="wp-block-image">
<figure class="aligncenter size-large"><img decoding="async" loading="lazy" width="1024" height="683" src="https://blockworks-co.imgix.net/wp-content/uploads/2022/11/Bybit-Azuki-NFT-1024x683.jpg" alt="" class="wp-image-39556" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2022/11/Bybit-Azuki-NFT-1024x683.jpg?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2022/11/Bybit-Azuki-NFT-1024x683.jpg?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2022/11/Bybit-Azuki-NFT-1024x683.jpg?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2022/11/Bybit-Azuki-NFT-1024x683.jpg?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2022/11/Bybit-Azuki-NFT-1024x683.jpg?w=2048 2048w, https://blockworks-co.imgix.net/wp-content/uploads/2022/11/Bybit-Azuki-NFT-1024x683.jpg?w=386 386w, https://blockworks-co.imgix.net/wp-content/uploads/2022/11/Bybit-Azuki-NFT-1024x683.jpg?w=392 392w, https://blockworks-co.imgix.net/wp-content/uploads/2022/11/Bybit-Azuki-NFT-1024x683.jpg?w=329 329w, https://blockworks-co.imgix.net/wp-content/uploads/2022/11/Bybit-Azuki-NFT-1024x683.jpg?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2022/11/Bybit-Azuki-NFT-1024x683.jpg?w=50 50w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption>Lei the Lightning Azuki #8494 on Red Bull Racing&#8217;s car | Source: ByBit</figcaption></figure></div>


Racers Max Verstappen and Sergio Perez will get to ride in the NFT-adorned car during the Grand Prix. Red Bull Racing and Verstappen dominated the F1 season this year.



Christian Horner, CEO of Oracle Red Bull Racing, stated that being “the first to put a blue-chip NFT on a Formula One car is a tremendous feat.”



F1 fans may get a chance to own a limited-edition version of the Lei the Lightning Azuki #8494 on a first come, first served basis to be minted on Tezos for free.&nbsp;



Azuki founder Zagabond said that “Lei the Lightning Azuki reflects the passion, precision, and raw power” and that F1 is now part of Lei’s story.&nbsp;



Along with Tezos as a sponsor, the cryptocurrency exchange Bybit is a principal team partner of Oracle Red Bull Racing since February 2022. The Formula 1 industry has been a big proponent of the cryptocurrency space, however, reputation means everything.&nbsp;



Another F1 team, Mercedes-AMG Petronas, decided to terminate the sponsorship agreement it had with FTX since September 2021 following the bankruptcy saga.



Web3 gaming awards



A new Web3 gaming awards event hosted by Polkastarter Gaming is set to round out the year next month. The Gam3 Awards, as it’s called, <a href="https://polkastarter.gg/news/gam3-awards-announcement/" target="_blank" rel="noreferrer noopener">intends</a> to recognize 2022’s best Web3-based games.



<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">Awarding the best gam3s 🎮 16 categories. 30+ industry leaders. $300k prizes. 📅 15 December 2022. Save the date. Voting starts soon ⬇️<a href="https://t.co/p0niqHYzHw">https://t.co/p0niqHYzHw</a> <a href="https://t.co/8n0ArqZXS1">pic.twitter.com/8n0ArqZXS1</a>&mdash; GAM3 AWARDS | 15th Dec 🏆 (@PolkastarterGG) <a href="https://twitter.com/PolkastarterGG/status/1592160570794704899?ref_src=twsrc%5Etfw">November 14, 2022</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



A 30-person jury, along with the crypto gaming community, will judge over 100 games nominated across 16 different categories to vote on the best ones.



Some of the categories include game of the year, best graphics, best mobile game, best shooter game and best multiplayer game. There’s even a category for most anticipated game because video games take a long time to build and creating anticipation for one is important for its success.&nbsp;



The event plans to broadcast across Polkastarter Gaming’s Twitch, YouTube and Twitter channels. Winners of the first GAM3 Awards can earn a share of $300,000 worth of prizes from sponsors such as Immutable X, Blockchain Game Alliance, Machinations, Naavik and Ultra.



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Web3 Watch: Yuga Labs Adds to Portfolio, Nike Creates NFT Marketplace

<a href="https://cms.blockworks.co/art-gobblers-reddit-nfts-and-other-winners-of-october-nft-market/" target="_blank" rel="noreferrer noopener">Art Gobblers became the talk of the NFT community</a> this week after raking in over $20 million in the project’s first 24 hours on the Blur marketplace. 



The Paradigm-backed collection also generated controversy for its association with Justin Roiland, co-creator of animated show Rick and Morty.



<a href="https://cms.blockworks.co/meta-pins-web3-hopes-on-instagram-creators-minting-nfts/" target="_blank" rel="noreferrer noopener">Instagram, meanwhile, said the social network plans to become an NFT marketplace</a> as part of the Meta subsidiary’s plan to attract more users to the creator economy. Starting with a select group of US creators, Instagram will soon permit users to mint and sell digital assets directly.



Here are other notable stories that caught the eyes of the Web3 Watch.&nbsp;



<h3 class="wp-block-heading">Europe’s first NFT vending machine in London</h3>



The 2022 NFT London conference kicked off this week with a neon-purple NFT vending machine greeting attendees outside of the Queen Elizabeth II Centre. Users can pay 10 British pounds ($11.37) for an NFT that could be worth up to 1,000 pounds.


<div class="wp-block-image">
<figure class="alignright size-medium"><img decoding="async" loading="lazy" width="263" height="300" src="https://blockworks-co.imgix.net/wp-content/uploads/2022/11/NFT-vending-machine-1-263x300.jpg" alt="London's New NFT Vending Machine" class="wp-image-36954" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2022/11/NFT-vending-machine-1-263x300.jpg?w=263 263w, https://blockworks-co.imgix.net/wp-content/uploads/2022/11/NFT-vending-machine-1-263x300.jpg?w=225 225w, https://blockworks-co.imgix.net/wp-content/uploads/2022/11/NFT-vending-machine-1-263x300.jpg?w=228 228w, https://blockworks-co.imgix.net/wp-content/uploads/2022/11/NFT-vending-machine-1-263x300.jpg?w=192 192w, https://blockworks-co.imgix.net/wp-content/uploads/2022/11/NFT-vending-machine-1-263x300.jpg?w=70 70w, https://blockworks-co.imgix.net/wp-content/uploads/2022/11/NFT-vending-machine-1-263x300.jpg?w=44 44w, https://blockworks-co.imgix.net/wp-content/uploads/2022/11/NFT-vending-machine-1-263x300.jpg?w=700 700w" sizes="(max-width: 263px) 100vw, 263px" /><figcaption>Photo by Ornella Hernandez for Blockworks</figcaption></figure></div>


Customers select an envelope within the display and key in the code provided like any other vending machine. After payment has been made via Apple Pay, Google Pay or credit card, customers receive an envelope that contains a QR code on it. They either use an existing wallet to receive their NFT or set up a new one.



Supported NFTs include the projects Dr. Who Worlds Apart, Thunderbirds, and Delft Blue Night Watch.



The proceeds from the vending machine will be donated to charity in a split between Giveth, an organization that funds services and education in developing nations, and Roald Dahl&#8217;s Marvellous Children&#8217;s Charity.



Back in February, Solana blockchain-based NFT marketplace Neon set up the first NFT vending machine in New York.&nbsp;



<h3 class="wp-block-heading">NFTs by the numbers, DappRadar report</h3>



DappRadar’s latest <a href="https://dappradar.com/blog/october-blockchain-industry-report/#1.18-Million-unique-traders-enter-the-NFT-market" target="_blank" rel="noreferrer noopener">industry report found</a> NFT trading volume in October decreased by 30% from September to $662 million — the lowest monthly volume yet this year.



While Ethereum and Solana recorded the steepest declines, Polygon’s trading volume and sales increased by 770% from September, likely driven by the success of Reddit’s NFT collections. Polygon and BNB Chain also increased their sales count by 60% over the same period.&nbsp;



Even still, competition between NFT marketplaces has increased. Newcomer Blur launched in October — with at least $14 million in funding from venture capital firm Paradigm, plus additional unspecified backing from NFT-native investment fund 6529 and digital art collector Cozomo de’ Medici.



The hype surrounding Blur was in large part due to the overnight success of the Art Gobblers project. After four days on the market, the collection has an ether (ETH) volume of $61.9 million at the time of publication.&nbsp;&nbsp;



Nevertheless, OpenSea maintains its nearly 50% share of the entire market. In October, OpenSea marketplace dominance decreased by 8.3% compared to August, and NFT trading volume decreased 12.1% ($313 million) month over month — the lowest trading volume registered since July 2021.



<h3 class="wp-block-heading">OpenSea’s new anti-theft features</h3>



As the largest NFT marketplace, OpenSea also typically has the greatest number of scams and thefts. It’s now turned its attention to address the challenge and <a href="https://opensea.io/blog/announcements/our-efforts-to-prevent-nft-theft/" target="_blank" rel="noreferrer noopener">introduce a new system</a> in a bid to ward off bad actors.



OpenSea can now proactively scan URLs shared on its platform against a blacklist of known malicious sites. It can also analyze interactions and transactions with new URLs to identify malicious behaviors such as signature farming and wallet draining. OpenSea will suspend accounts of known scammers.



The marketplace’s second update aims to stop additional resales of potentially stolen digital items. It hopes to start training the system to more effectively detect NFT theft.



OpenSea’s goal, <a href="https://opensea.io/blog/announcements/our-efforts-to-prevent-nft-theft/" target="_blank" rel="noreferrer noopener">according to a company blog</a>, is “to help make the ecosystem safer by reducing the downstream sales of stolen items – both using OpenSea and elsewhere in the NFT ecosystem – and thus reduce the incentive for NFT theft in the first place.” 



<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">1/ Stolen items and scams are big issues in the NFT space. So, we’ve been hard at work on 2 new solutions to address both on OpenSea: Introducing Malicious URL Detection and Removal 🚫 and Theft Detection and Disablement 🔐&mdash; OpenSea (@opensea) <a href="https://twitter.com/opensea/status/1587829879923302400?ref_src=twsrc%5Etfw">November 2, 2022</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



<h3 class="wp-block-heading">Y00ts NFT images ‘finally’ revealed</h3>



After nearly two months, creators of the Solana collection “y00ts mint t00b” have revealed the project art. Those who purchased a t00b, essentially a vial, can burn it to mint a y00t NFT.&nbsp;



Dust Labs, the company behind the project, never gave a reason for the delay. But in early October, one of the artists from the popular DeGods collection and y00ts departed from the project. He <a href="https://twitter.com/SCUMSOL/status/1579979374987968512?s=20&amp;t=f-E5fyuI75rrgw2KtFjrGg" target="_blank" rel="noreferrer noopener">tweeted</a> that he planned to focus on 1:1 art space instead of PFPs. 



Holders have been sharing their new NFTs to crypto Twitter. One user <a href="https://twitter.com/Solana_Baddie/status/1588564188200591360?s=20&amp;t=kjvK8efi1IhPFmCOKLdwtg" target="_blank" rel="noreferrer noopener">commented</a> that she is “finally y00ted,” and others <a href="https://twitter.com/Marquel_Martin/status/1588568031080644608?s=20&amp;t=ku7z9z0T1UH_7XlG-3nYtw" target="_blank" rel="noreferrer noopener">claimed</a> that it was worth the wait for some “amazing” art.



The collection — a total of 15,000 NFTs — centers around a sheep avatar. Dust Labs plans to experiment with a <a href="https://docs.google.com/document/d/1X3BiIeoiLxVYhJ9zB7SDx7IsVoB36wuS9fzWPx63-is/edit" target="_blank" rel="noreferrer noopener">new model of copyright</a> and intellectual property (IP) licensing. 



The NFTs’ IP rights aren’t specific to one holder. Rather, the rights will exist in a registry where anyone who is approved to use an NFT&#8217;s IP is publicly known. It will use the ⓨ symbol instead of the standard ⓒ copyright symbol.



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Web3 Watch: New OpenSea Security Features and London’s NFT Vending Machine

<div id="highlights-block_635c2589cdb9b" class="highlights">
 <ul>
 <li>Smartphone maker Vertu launches Web3 Android to rival Solana Saga phone</li>
 <li>LooksRare plans to divert 25% of protocol fees directly to creators</li>
 </ul>
 
</div>



Reddit’s nascent NFT marketplace made a splash in the digital collectibles market by <a href="https://cms.blockworks.co/reddit-makes-pfp-nfts-cool-again-marketplace-trading-volume-surges/" target="_blank" rel="noreferrer noopener">onboarding nearly 3 million</a> new users to Web3 by pitching NFTs to users — rivaling OpenSea’s numbers in the process.



And for those who own a Bored Ape or a CryptoPunk NFT and live in Switzerland, fintech bank <a href="https://cms.blockworks.co/swiss-bank-seba-now-custodies-blue-chip-ethereum-nfts/" target="_blank" rel="noreferrer noopener">SEBA offers to custody those NFTs</a> just like any other customer deposit. This will test if users prefer to trust a bank with their NFTs, instead of keeping them in their own wallets.&nbsp;



Here are other notable stories that caught the eyes of the Web3 Watch.&nbsp;



<h3 class="wp-block-heading">Twitter’s potential crypto wallet&nbsp;</h3>



Twitter is officially in the hands of Elon Musk, who formalized his new role by changing his Twitter bio to “Chief Twit” after a <a href="https://cms.blockworks.co/crypto-faithfuls-await-elon-musks-blockchain-plans-for-twitter/" target="_blank" rel="noreferrer noopener">$44 billion acquisition</a>.



In the lead up to the takeover, researcher Jane Manchung Wong tweeted out some juicy developing details about Twitter’s potential plans to launch a crypto wallet.



<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">Twitter is working on a “wallet prototype” that supports “crypto deposit and withdrawal”&mdash; Jane Manchun Wong (@wongmjane) <a href="https://twitter.com/wongmjane/status/1584616567530483712?ref_src=twsrc%5Etfw">October 24, 2022</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Wong is known for testing out tech products and new features on social media platforms, including the Twitter edit button for Twitter Blue members.&nbsp;



Since reporting on Oct. 24 that Twitter may be working on a wallet prototype that supports crypto deposits and withdrawals, no other details have been made available.



Musk previously <a href="https://cms.blockworks.co/elon-musk-teases-crypto-integration-at-his-first-twitter-all-hands/" target="_blank" rel="noreferrer noopener">said</a> that “it would make sense to integrate payments into Twitter so that it’s easy to send money back and forth, and if you have currency as well as crypto,” during his first Twitter all-hands meeting in June.



<h3 class="wp-block-heading">The royalties domino effect</h3>



First, X2Y2 and SudoSwap NFT marketplaces made the move toward optional creator <a href="https://cms.blockworks.co/nft-royalties-sometimes-they-work-sometimes-they-dont/">NFT royalties </a>during the summer. 



Then, Solana giant Magic Eden <a href="https://twitter.com/MagicEden/status/1581101016686399491?s=20&amp;t=yLNKcqyOxYxi4zGVRpq34w" target="_blank" rel="noreferrer noopener">followed</a>, because “royalties are not enforceable on a protocol level,” and due to shifting market dynamics. Notably, <a href="https://pro.nansen.ai/nft-trends?platform=MagicEden&amp;network=solana" target="_blank" rel="noreferrer noopener">Nansen data shows</a> that there’s been a slow exodus of return Magic Eden buyers per day, while the number of first-time NFT buyers has increased since the announcement on Oct. 15.



Read more: <a href="https://cms.blockworks.co/nft-royalties-sometimes-they-work-sometimes-they-dont/">How NFT Royalties Work – And Sometimes Don’t</a>



Now rival NFT marketplace LooksRare has also eliminated creator royalties, but buyers can still opt-in to pay optional royalties at checkout.



The marketplace will instead share 25% of the LooksRare protocol fee with creators and collection owners. It claimed to be the first zero-royalty marketplace to do so.



In a blog post, LooksRare <a href="https://docs.looksrare.org/blog/looksrare-offers-zero-royalty-trading-shares-protocol-fees-with-creators-instead" target="_blank" rel="noreferrer noopener">acknowledged</a> that the trend of zero-royalty marketplaces has “eroded the general willingness to pay royalties throughout the NFT space.” While this may be good for traders, most creators are left without an important source of passive income, it said.&nbsp;



The plan to divert protocol fees directly to creators hopes to achieve 0% seller fees through a rebate on protocol fees paid.&nbsp;



Protocol fees were previously 2%. Now, 1.5% of each trade goes to LOOKS stakers and 0.5% goes to collections if they’ve set up a receiving address.&nbsp;



Additionally, the trading rewards distribution ratio has been updated so that 95% of trading rewards go to sellers and 5% to buyers. As for listing rewards, the leaderboard now ranks by OpenSea rolling 24-hour volume only.



Time will tell if killing royalties, a revenue stream for many creators, disincentivizes them from providing ongoing utility. What would motivate them to add value to their NFTs if they can’t benefit when new buyers enter?



<h3 class="wp-block-heading">The latest Web3 smartphone</h3>



Would you buy a $41,000 phone? The latest Web3-marketed phone can cost as much as that.



Smartphone maker Vertu <a href="https://medium.com/@republicofvertu/vertu-is-ready-to-start-a-new-journey-37b4551f0b22" target="_blank" rel="noreferrer noopener">launched</a> its latest Android device called Metavertu that can run its own blockchain node and turn photos and videos into NFTs “with one click.”



Metavertu runs on the standard Android operating system while enabling users to switch to Web3 mode. Some benefits of Web3 mode include “instantaneous NFT generation, self-contained peer-to-peer encrypted communication” and access to decentralized applications (dapps), Vertu said.



<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">What makes the world’s first METAVERTU so unique? Take a look at it now! A quick view to know <a href="https://twitter.com/hashtag/METAVERTU?src=hash&amp;ref_src=twsrc%5Etfw">#METAVERTU</a> and <a href="https://twitter.com/hashtag/VERTU?src=hash&amp;ref_src=twsrc%5Etfw">#VERTU</a> is ready to start a magical journey into the world of Web3. <a href="https://twitter.com/hashtag/web3phone?src=hash&amp;ref_src=twsrc%5Etfw">#web3phone</a> <a href="https://t.co/IcQj4m2pS6">pic.twitter.com/IcQj4m2pS6</a>&mdash; REPUBLIC OF VERTU (@republicofvertu) <a href="https://twitter.com/republicofvertu/status/1585587113252118529?ref_src=twsrc%5Etfw">October 27, 2022</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Additionally, Metavertu has a concierge service that offers an NFT membership pass with access to blockchain courses and early access to a high-value whitelist.



The entry-level model is priced at $3,600 and comes with a carbon fiber finish, 12GB RAM and 512GB internal storage. The high-end model, on the other hand, has 18GB RAM and 1TB storage, and comes wrapped in &#8220;Himalaya Alligator leather,&#8221; 18K gold and diamonds for $41,000.&nbsp;



Previously, Solana Labs’ subsidiary Solana Mobile <a href="https://cms.blockworks.co/solana-branches-out-to-hardware-development-with-web3-mobile-phone/" target="_blank" rel="noreferrer noopener">launched</a> its own Android-powered smartphone — Saga — in June that is integrated with the Solana blockchain network. The Solana Saga costs $1,000, in line with the price of an iPhone, and plans to deliver in early 2023.



<hr class="wp-block-separator">
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<hr class="wp-block-separator">

Web3 Watch: Twitter’s Potential Crypto Wallet, and a Royalty-optional LooksRare

<div id="highlights-block_63516e691fd01" class="highlights">
 <ul>
 <li>Rarible 2.0 includes an aggregated NFT marketplace and RARI token locking and rewards program</li>
 <li>The APE DAO is looking to delay its APE token-locking scheme pending a closer look at security</li>
 </ul>
 
</div>



“What is an NFT?” is the Internet’s most Googled NFT question.



It is searched an average of 948,000 times each month around the world, CoinGecko research has revealed. The second-most-searched NFT question is: “How do you create an NFT?” — Googled an average of 287,000 times per month. 



Despite its search popularity, the NFT market took a heavy hit in Q3. CoinGecko <a href="https://www.coingecko.com/research/publications/q3-2022-cryptocurrency-report?utm_source=web&amp;utm_medium=notification&amp;utm_campaign=Q3+2022+report" target="_blank" rel="noreferrer noopener">reported</a> a 77% fall in total trading volume from Q2 to Q3 across the top five NFT marketplaces — OpenSea, Magic Eden, LooksRare, X2Y2 and CryptoPunks.



Another NFT marketplace, Rarible, is revamping its own offerings by launching a version 2 and integrating sustainable token incentives to boost its trading volume.&nbsp;



Those are among the notable stories that caught the eyes of the Web3 Watch crew.



<h3 class="wp-block-heading">Rarible gets an upgrade</h3>



NFT marketplace and protocol Rarible has updated its ecosystem to introduce Rarible 2, an aggregated marketplace that pulls Ethereum listings from OpenSea, LooksRare, X2Y2 and Sudoswap.&nbsp;&nbsp;



The goal of aggregated NFT listings, according to the company, is to create a one-stop-shop for NFT collectors to find the best prices.&nbsp;



Rarible.com users can also now add multiple NFTs to their carts and purchase various Ethereum ERC-721 NFTs in a single transaction.



Additionally, the Rarible community — made up of RARI governance token holders and RARI DAO members — recently voted in favor of implementing a RARI locking feature as part of the Rarible 2 update.&nbsp;



Locking is the process of sending RARI to a token-locking contract in exchange for rewards. Token holders who lock up their RARI may receive more voting power in the protocol and get “veRARI” in return.



“Ve” stands for “vote-escrowed.” Rarible claims it is the first NFT company to integrate a vote-escrowed model (ve-model) approved by the RARI DAO.&nbsp;



Users who lock at least 100 RARI will have the ability to vote on Rarible’s weekly featured RARI rewards collections, govern the Rarible Protocol through the RARI Foundation, and benefit from 0% trading fees on items listed on Rarible.&nbsp;



The RARI DAO also approved a rewards program for traders. Rarible.com users who buy NFTs can receive RARI based on the royalties users pay for an item, also known as royalties cash back. Those who make an NFT listing from the weekly featured RARI rewards collection will be eligible to receive RARI.



Those who bought more than three NFTs from Rarible.com from July 1 to Sept. 30 may be eligible to receive 100 RARI via a retroactive airdrop.



<h3 class="wp-block-heading">ApeCoin staking delays</h3>



The ApeCoin DAO is considering whether to push back the launch of NFT and ApeCoin (APE) staking to allow for a bug bounty program.&nbsp;



A <a href="https://forum.apecoin.com/t/aip-draft-bug-bounty-program-for-aip-21/8792" target="_blank" rel="noreferrer noopener">proposal would allocate 1 million APE</a>, or $4.5 million, to potential bounties that will last two to four weeks. The idea was put forward by ApeCoin DAO special council member Maaria Bajwa on the project’s governance forum.



Staking is tentatively scheduled to go live on Oct. 31, however, if this proposal passes, the launch may be delayed yet again.



Horizen Labs, the company leading the development of ApeCoin DAO’s staking system, <a href="https://docs.apestake.io/#/README" target="_blank" rel="noreferrer noopener">released a seven-part document</a> this week that outlines the plan.



The document laid out the four staking pools that will be live when APE staking begins. There is a general ApeCoin pool in which anyone holding APE can stake. The total staking allocation for the ApeCoin pool is 30,000,000 ApeCoin.



No NFTs are required, but there is a Bored Ape Yacht Club (BAYC) pool for BAYC holders where collectors can stake up to 10,094 APE per Bored Ape they own. Mutant Ape Yacht Club (MAYC) holders will have their own pool and be able to stake up to 2,042 APE per owned Mutant.



There will also be a paired pool for those who want to stake a Bored Ape Kennel Club NFT (BAKC). Because a BAKC cannot stake ApeCoin alone, it must be combined with a Bored or Mutant Ape.



Horizen Labs also warns users who stake their Ape NFTs, any APE earned will live in the NFT, so if they sell an NFT with APE in it, they will lose their earned APE.



“Think of your BAYC or MAYC like a box that holds your ApeCoin,” Horizen Labs wrote. “If you sell the box, the new owner gets the box plus all of its contents. So, if you’re about to sell your BAYC or MAYC, WE STRONGLY RECOMMEND THAT YOU UNCOMMIT YOUR NFT PRIOR TO THE SALE.”



No word on whether the staking delay is related to the <a href="https://cms.blockworks.co/web3-watch-sec-probes-yuga-labs-degods-eliminates-nft-royalties/" target="_blank" rel="noreferrer noopener">SEC’s probe of BAYC progenitor Yuga Labs</a>.



<h3 class="wp-block-heading">Embed your NFTs in a tweet</h3>



Twitter Blue subscribers have had the option to link their Ethereum wallets to their account and <a href="https://cms.blockworks.co/twitter-integrates-nfts-with-new-profile-picture-feature/" target="_blank" rel="noreferrer noopener">display their digital collectibles or avatars as their profile pictures</a> since the beginning of the year. 



Now another pilot will allow select NFT marketplaces to test out the Tweet Tiles feature, a tweet format that allows users to display their NFTs directly within tweets, alongside title and creator metadata.



OpenSea, Rarible, Magic Eden, Dapper Labs and GuardianLink’s Jump.trade marketplaces are the first five with the ability to embed NFTs. If the pilot proves successful, it could be rolled out to all Twitter users and NFT collectors.&nbsp;



Originally, Tweet Tiles was tested with publications such as the New York Times, the Wall Street Journal and The Guardian, so any tweeted links or images appeared more visually appealing and mobile-browser friendly.



Twitter’s move follows Meta’s rollout of <a href="https://cms.blockworks.co/meta-to-expand-nft-feature-to-select-facebook-instagram-users-this-week/" target="_blank" rel="noreferrer noopener">NFT display features on Instagram and Facebook</a>. Creators and businesses around the world are able to connect their digital wallets and share NFTs on both social media platforms since August. 



<h3 class="wp-block-heading">Guinness’ ‘Cryptomania’</h3>



The 2023 edition of Guinness World Records included a record for CryptoPunks as the most expensive NFT collectible after entrepreneur Deepak Thapliya acquired CryptoPunk #5822 for 8,000 ether, or $23.7 million, in February this year.



Manchester City’s token, launched in 2021, was recorded as the most valuable fan token, and filed under its own fan tokens category in the book.



<hr class="wp-block-separator">
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<hr class="wp-block-separator">

Web3 Watch: Rarible Revamps Marketplace, ApeCoin DAO Adds Bug Bounty

<div id="highlights-block_63487cbfa516b" class="highlights">
 <ul>
 <li>Yuga Labs gives back to Miami students and forms Ape Community Council</li>
 <li>Actor Anthony Hopkins&#8217; NFT collection became the fastest primary drop in OpenSea’s history, selling out in 7 minutes</li>
 </ul>
 
</div>



<a href="https://cms.blockworks.co/opensea-adds-avalanche-marketplace-avax-traders-shrug/" target="_blank" rel="noreferrer noopener">OpenSea this week added support to the Avalanche (AVAX) chain</a> — its seventh blockchain for NFT transactions. AVAX traders, however, appeared indifferent, considering the token continued its steady decline in an uneven week for digital collectible markets.&nbsp;



And for gamers out there, the upcoming first-person shooter multiplayer Web3 game <a href="https://cms.blockworks.co/blockchain-game-shrapnel-aims-for-aaa-status-in-web3/" target="_blank" rel="noreferrer noopener">Shrapnel recently released its economic white paper</a> outlining its gameplay and in-game assets after dropping a movie-like game trailer.



Here are other notable stories that caught the eyes of the Web3 Watch, starting with <a href="https://cms.blockworks.co/french-authorities-charge-5-over-theft-of-bored-ape-nfts/" target="_blank" rel="noreferrer noopener">Yuga Labs</a>, the creator of Bored Ape Yacht Club (BAYC) NFTs.&nbsp;



<h3 class="wp-block-heading">The SEC wants a closer look at the Apes</h3>



The SEC has made Yuga Labs its latest target in a series of probes into crypto and Web3 companies.&nbsp;



The investigation will determine whether sales of its digital assets violate federal securities law. The brand portfolio includes BAYC, Mutant Ape Yacht Club, CryptoPunks, Meebits, the Otherside metaverse and the ApeCoin (APE) token.&nbsp;



“We hope to partner with the rest of the industry and regulators to define and shape the burgeoning ecosystem,” Yuga Labs <a href="https://www.bloomberg.com/news/articles/2022-10-11/bored-ape-creator-yuga-labs-faces-sec-probe-over-unregistered-offerings" target="_blank" rel="noreferrer noopener">said in a statement</a>.



Whatever the outcome, Yuga Labs is the highest-valued NFT company — and the SEC’s decision will likely set an industry precedent.



ApeCoin’s upcoming staking plans on Oct. 31 may have piqued the regulator’s attention. Asked to comment on staking, Yuga Labs told Blockworks that while it was an initial launch contributor of ApeCoin, it is not involved in the independently-run ApeCoin DAO, “so there’s not much we can say on the matter.”&nbsp;



Within an hour of the SEC’s announcement, APE’s price fell from $5.16 to $4.77 and has continued to decline.&nbsp;



Yuga, however, keeps trudging through The Swamp and has since <a href="https://yuga.com/blog/miami-arts-education-initiative/" target="_blank" rel="noreferrer noopener">announced</a> its commitment of $1 million to supporting education and art initiatives in Miami — the hometown of its co-founders and CEO.



Additionally, Yuga Labs recently <a href="https://yuga.com/blog/bayc-community-council/" target="_blank" rel="noreferrer noopener">assembled</a> the BAYC and MAYC Community Council — made up of seven of the earliest Ape holders. The idea is to keep ears to the ground and compile feedback from the community to relay back to the leadership team.&nbsp;



<h3 class="wp-block-heading">DeGods joins the zero-royalties club</h3>



DeGods, the most popular NFT project on Solana, tweeted that it is updating all of its NFTs to 0% royalties. DeGods collection will go from featuring 9.99% royalties to zero.&nbsp;



This “experiment” was done in the name of business. DeGods did not provide additional details.&nbsp;



<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">As this tweet goes live, the metadata for the DeGods collection royalties are being updated from 9.99% to 0%. Next, <a href="https://twitter.com/y00tsNFT?ref_src=twsrc%5Etfw">@y00tsNFT</a> (t00bs).&mdash; DeGods (@DeGodsNFT) <a href="https://twitter.com/DeGodsNFT/status/1579018798187044864?ref_src=twsrc%5Etfw">October 9, 2022</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Other Dust Labs owned collections, y00ts and t00bs, will also have their royalties updated soon, according to the company.&nbsp;



The team has yet to reveal its artwork for y00ts, over a month after the initial mint. And the artist behind it and the greater DeGods ecosystem, known as SCUM, recently <a href="https://twitter.com/SCUMSOL/status/1580280071356440576?s=20&amp;t=0-A72s6BntHEBbCZ7OfheA" target="_blank" rel="noreferrer noopener">left</a> the project.



The decision to eliminate the royalty structure calls into question the importance of royalties in the NFT space. <a href="http://Read more: How NFT Royalties Work – And Sometimes Don’t">Royalties</a> are the payment, denominated in percentages, that NFT creators get every time somebody sells their digital asset. 



For traders, this means lower flipping costs and added incentive to transact. Creators usually get to set their cut taken per sale.



Read more: <a href="https://cms.blockworks.co/nft-royalties-sometimes-they-work-sometimes-they-dont/">How NFT Royalties Work – And Sometimes Don’t</a>



Twitter users reacted with skepticism with <a href="https://twitter.com/ElMarcSuarez/status/1579019022032855040?s=20&amp;t=hFcHSLrg3k0CXqWf5YnyQw" target="_blank" rel="noreferrer noopener">questions</a> like, “But how will team make money?” to <a href="https://twitter.com/goku_nft/status/1579092815833083908?s=20&amp;t=hFcHSLrg3k0CXqWf5YnyQw" target="_blank" rel="noreferrer noopener">comments</a> like “How about you pay everyone royalties for having your pfp?”&nbsp;



Founder Frank DeGods <a href="https://twitter.com/frankdegods/status/1579592433834545152?s=20&amp;t=YqLW4RX12ihWTvzuaZv6sA" target="_blank" rel="noreferrer noopener">responded</a> by acknowledging how people had been labeling them a “dead project &amp; a rug” for months. He stated that: “If royalties go away…I think the space will be more open to redefining what ‘rug’ means.”&nbsp;



Back in August, NFT artist Beeple weighed in, <a href="https://twitter.com/beeple/status/1558573319347179520?s=20&amp;t=0GHLhx0r7SRFAw_BSzk_XA" target="_blank" rel="noreferrer noopener">tweeting</a>, “Creators will have to build a collector base that WANT to honor these royalties.” Treating holders “right” will likely lead to increased support.



<h3 class="wp-block-heading">Q&amp;A with Unstoppable Domains</h3>



Unstoppable Domains, founding member of the Unstoppable Women of Web3 (UWoW3) education group, announced on Tuesday its commitment to onboard over five million women across Latin America into Web3 by 2030 and to accordingly distribute $25 million worth of free NFT domains.&nbsp;



UWoW3 partnered with Latin America-based organizations CryptoConexión and H.E.R. DAO LATAM to create free educational courses in English, Spanish and Portuguese, along with workshops and hackathons, so female developers can transition to Web3.&nbsp;



Unstoppable Domains also recently ran a <a href="https://cms.blockworks.co/unstoppable-domains-gifted-blockchain-domain-names-to-1m-women-in-abu-dhabi/" target="_blank" rel="noreferrer noopener">giveaway in collaboration with Abu Dhabi firms</a> to ensure each woman residing in the Emirati capital receives a decentralized domain name.&nbsp;



Blockworks connected with the company’s Senior Vice President Sandy Carter to discuss Unstoppable Domain’s education initiatives.



Blockworks: Unstoppable Domains recently launched a set of online courses. Why would a student choose UWoW3 educational streams over other academic platforms?&nbsp;&nbsp;



Carter: UWoW3 educational streams are completely free and feature content from leaders across Web3. For university students, they can be a great resource to immerse themselves in the blockchain space and a supplement to any blockchain-focused academic content.&nbsp;



Blockworks: Why is UWoW3 now turning to Latin America? Which specific countries are being targeted?&nbsp;



Carter: When we launched our educational streams, one of the top requests we got was to provide content in Spanish. We’d also heard from Monica Talan, founder of CryptoConexión, who was excited to partner with Unstoppable Women of Web3 to bring our mission into Latin America. All universities that meet a set criteria will be eligible for free domains. Our first hackathons will take place in countries in Latin America with larger populations, and we’ll work with local partners to hold events in other countries.&nbsp;



Blockworks: While Latin American countries have embraced crypto largely due to necessity amid unstable economies, what specific skills or fields within the blockchain industry does Unstoppable Domains think that users in Latin America should focus on?



Carter: There are a wide range of topics in Web3 that are worth exploring, from how to mint your first NFT to developing for the blockchain. Our Web3 courses in Spanish offer topics at a range of levels, so we can support people on their journey whether they’re just learning about Web3 or are ready to start building in the space.



<hr class="wp-block-separator">
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<hr class="wp-block-separator">

Web3 Watch: SEC Probes Yuga Labs, DeGods Eliminates NFT Royalties

<div id="highlights-block_62fe795827f63" class="highlights">
 <ul>
 <li>Polygon leads $25 million fund for Web3 venture studio SuperLayer</li>
 <li>Art Block’s collection, Portal &#8211; Art Blocks Playground, saw the largest rise in floor price in the past 24 hours, going from 39 ETH to 300 ETH on OpenSea</li>
 </ul>
 
</div>



This week blue chip NFT projects CryptoPunks and Meebits <a href="https://cms.blockworks.co/from-moonbirds-to-cryptopunks-terms-of-service-are-changing/" target="_blank" rel="noreferrer noopener">changed their terms of service</a> to give holders more commercial use rights, a few weeks after Moonbirds switched to a Creative Commons zero (CC0) license.



In funding news, crypto investment firm <a href="https://cms.blockworks.co/coinfund-on-the-lookout-for-promising-web3-companies-after-300m-raise/" target="_blank" rel="noreferrer noopener">CoinFund raised $300 million</a> for a venture fund that plans to invest in companies after the seed stage.



Blockworks recaps other notable stories that caught the eyes of the Web3 Watch.



<h3 class="wp-block-heading">Layering on cash</h3>



Ethereum layer-2 scaling platform Polygon announced a strategic partner role in the Web3 venture studio SuperLayer after a $25 million investment.



The venture capital firm supports late stage projects and is led by gaming entrepreneurs <a href="https://www.linkedin.com/in/kevinchou/" target="_blank" rel="noreferrer noopener">Kevin Chou</a> and <a href="https://www.linkedin.com/in/maheshvellanki/" target="_blank" rel="noreferrer noopener">Mahesh Vellanki</a>, founders of various Web3 companies, including Rally.io, a creator economy protocol on the RLY network as well as the blockchain gaming publisher Forte.



The funding will be used to support and scale SuperLayer’s ecosystem of projects, according to the company, which intends to invest in and build new Web3 products for rapid mass adoption.



SuperLayer launched in October and is backed by several high-profile investors such as Animoca Brand’s founder Yat Siu, <a href="https://cms.blockworks.co/celebrities-shilled-crypto-at-the-top-can-they-learn-for-next-cycle/" target="_blank" rel="noreferrer noopener">celebrity Paris Hilton</a> and Andreessen Horowitz (a16z) partner Chris Dixon.&nbsp;



<h3 class="wp-block-heading">Unstoppable Domains goes mobile</h3>



IPhone users can now download the Unstoppable Domains mobile app to manage any owned NFT domains.



This means users can easily buy and mint domains directly from the mobile app, instead of on a computer browser. Users can connect the following crypto wallets to the app: MetaMask, Rainbow, Trust Wallet, Ledger Live, AlphaWallet and MathWallet for now.



Domain names can be backed up manually or stored as an encrypted copy on the iCloud in the case the phone is lost or stolen.



 Because decentralized domain names are minted as NFTs (non-fungible tokens), the Unstoppable Domains app lets users choose a Web3 identity card with a profile picture that can be shared via social media.



Users can also log in to hundreds of WalletConnect-enabled apps, along with 180+ apps, metaverses, and games that have integrated login with Unstoppable single sign-on service. The perk is no more passwords to remember.



<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">Introducing the <a href="https://twitter.com/unstoppableweb?ref_src=twsrc%5Etfw">@unstoppableweb</a> mobile app! 📱✨ Your identity and login for Web3, securely managed at your fingertips Thread 👇 (1 of 23) <a href="https://t.co/jD5C59wBR7">pic.twitter.com/jD5C59wBR7</a>&mdash; eddiee.nft (@eddiee_nft) <a href="https://twitter.com/eddiee_nft/status/1560001299084869632?ref_src=twsrc%5Etfw">August 17, 2022</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



<h3 class="wp-block-heading">NFT Art as jewelry&nbsp;</h3>



On the heels of the <a href="https://cms.blockworks.co/tiffany-co-turns-cryptopunks-into-12-5m-luxury-jewelry-sale/" target="_blank" rel="noreferrer noopener">Tiffany &amp; Co.’s NFTiff collection of CryptoPunks jewelry</a>, the jewelry NFT market is undeniably growing. Auction house Sotheby’s is the next to jump on this trend of allowing collectors to wear their art.


<div class="wp-block-image">
<figure class="alignright size-medium"><img decoding="async" loading="lazy" width="300" height="168" src="https://blockworks-co.imgix.net/wp-content/uploads/2022/08/Screen-Shot-2022-08-18-at-4.11.33-PM-300x168.png" alt="" class="wp-image-28475" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2022/08/Screen-Shot-2022-08-18-at-4.11.33-PM-300x168.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2022/08/Screen-Shot-2022-08-18-at-4.11.33-PM-300x168.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2022/08/Screen-Shot-2022-08-18-at-4.11.33-PM-300x168.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2022/08/Screen-Shot-2022-08-18-at-4.11.33-PM-300x168.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2022/08/Screen-Shot-2022-08-18-at-4.11.33-PM-300x168.png?w=466 466w, https://blockworks-co.imgix.net/wp-content/uploads/2022/08/Screen-Shot-2022-08-18-at-4.11.33-PM-300x168.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2022/08/Screen-Shot-2022-08-18-at-4.11.33-PM-300x168.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2022/08/Screen-Shot-2022-08-18-at-4.11.33-PM-300x168.png?w=50 50w, https://blockworks-co.imgix.net/wp-content/uploads/2022/08/Screen-Shot-2022-08-18-at-4.11.33-PM-300x168.png?w=1438 1438w" sizes="(max-width: 300px) 100vw, 300px" /><figcaption>Sotheby&#8217;s 18-karat gold and emerald ring | Source: Sotheby&#8217;s</figcaption></figure></div>


A physical 18-karat gold and emerald ring and corresponding NFT called Ethereum Expedition will be part of Sotheby’s first auction dedicated to artist-made jewelry, titled “<a href="https://www.sothebys.com/en/buy/auction/2022/art-as-jewelry-as-art" target="_blank" rel="noreferrer noopener">Art as Jewelry as Art</a>.” Its form was inspired by geodesic domes and intercontinental rocket launches.



Metagolden, a digital gallery selling NFT art tokenized by 18-karat gold jewelry, designed this piece for this upcoming September sale.&nbsp;



The buyer will be able to wear the ring in real life — in the metaverse, avatars can wear the digital wearable, the value of which is independent of the physical item.



The auction will also include jewelry pieces such as pendants by Picasso, earrings designed by Dalí and a piece by Man Ray.



<h3 class="wp-block-heading">Speaking of phygitals</h3>



Cult &amp; Rain is a phygital (physical/digital) Web3 fashion brand co-founded by fashion creative director George Yang. It creates both physical and digital projects such as luxury sneakers and most recently varsity jackets paired with NFTs. 


<div class="wp-block-image">
<figure class="alignright size-medium"><img decoding="async" loading="lazy" width="300" height="199" src="https://blockworks-co.imgix.net/wp-content/uploads/2022/08/Cult-Rain-1-300x199.png" alt="" class="wp-image-28478" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2022/08/Cult-Rain-1-300x199.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2022/08/Cult-Rain-1-300x199.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2022/08/Cult-Rain-1-300x199.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2022/08/Cult-Rain-1-300x199.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2022/08/Cult-Rain-1-300x199.png?w=387 387w, https://blockworks-co.imgix.net/wp-content/uploads/2022/08/Cult-Rain-1-300x199.png?w=393 393w, https://blockworks-co.imgix.net/wp-content/uploads/2022/08/Cult-Rain-1-300x199.png?w=329 329w, https://blockworks-co.imgix.net/wp-content/uploads/2022/08/Cult-Rain-1-300x199.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2022/08/Cult-Rain-1-300x199.png?w=50 50w, https://blockworks-co.imgix.net/wp-content/uploads/2022/08/Cult-Rain-1-300x199.png?w=2034 2034w" sizes="(max-width: 300px) 100vw, 300px" /><figcaption>Cult &amp; Rain luxury sneakers | Source: Cult &amp; Rain</figcaption></figure></div>


The brand recently launched its own metaverse called CULTR WORLD that plans to transform phygital fashion and commerce.&nbsp;



Blockworks spoke to Yang, a luxury fashion veteran who started Cult &amp; Rain because he thought “the system of fashion was broken.”



Blockworks: You’re known for selling phygital products via NFTs. Tell me more about the phygital market.



Yang: Version 1.0 is actually putting a chip in a shoe and tying this physical shoe to the blockchain for authentication and ownership transferring. But as the NFT market started to heat up, we saw a huge opportunity, which was to create phygital products and sell these 3D animated NFTs that have the physical counterpart and the physical twin tied to it.&nbsp;



We&#8217;re all about luxury. We&#8217;re all about scarcity, and we&#8217;re producing all of our physicals in Italy. Our sneakers are produced at the same factory that produces for LVMH and Kering.



I knew that digital fashion was the future, and I knew that metaverse digital wearables, phygitals, and this completely new transformation into Web3 would become the foundation of how different luxury brands would enter into the next phase.



Blockworks: Why start your own metaverse?



Yang: We know that the metaverse and avatars are where [the industry] is headed. So we know that we want to build an environment where you&#8217;re going to be able to connect your avatar into our metaverse and be able to go cross-platform into other metaverses in the future. That&#8217;s how people are going to go around in their alter egos, and they will need digital wearables to flex in. They&#8217;re also going to need space to hang out at, their own home to invite their friends over to. So we&#8217;re trying to jump ahead of that.



We also wanted to create a completely new experience based on photorealism, as opposed to the gamification of The Sandbox and Decentraland. A photorealistic view is hard to distinguish between whether it&#8217;s a game or it&#8217;s real life.



Blockworks: Can you talk to me a bit about the pain points of the traditional fashion industry?



Yang: There&#8217;s a tremendous amount of usage and waste — usage of time, energy, water. Take denim, for example. Denim&#8217;s one of the most toxic garment dye processes that&#8217;s really hard on the environment. So there&#8217;s a huge amount of environmental impact and this is why a lot of the professional brands are all talking about sustainability for a long time, because no one quite realizes that impact.



 So with this model we eliminate the wastage. We go directly to the consumer. This is almost like the ultimate direct-to-consumer model. We allow the consumer to shop on a website or shop in the metaverse.



Your digital asset that we sold you as an NFT becomes the ultimate Soho House membership card. And it&#8217;s going to have a bunch of utilities attached. The main utility is the matching physical luxury product, so it&#8217;s like two for the price of one.



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<hr class="wp-block-separator">

Web3 Watch: From Jewelry to Fashion, Phygitals May Be Here to Stay

<div id="highlights-block_62f40e403f915" class="highlights">
 <ul>
 <li>Krapopolis to be first blockchain-based animated series on broadcast television</li>
 <li>Moonbirds’ floor price has dropped 20%, from 18 ETH to 14 ETH in the past week since its move to a CC0 public license</li>
 </ul>
 
</div>



This week, Nas Academy partnered with Invisible College and its NFT project Decentralien to <a href="https://cms.blockworks.co/nas-academy-to-launch-token-gated-web3-courses/" target="_blank" rel="noreferrer noopener">token-gate online courses focused on Web3</a>.&nbsp;



In funding news, Andreesen Horowitz (a16z) invested <a href="https://cms.blockworks.co/funding-wrap-gaming-startups-still-a-hot-item-for-venture-capitalists/" target="_blank" rel="noreferrer noopener">$6 million into Web3 startup Halliday</a>, while NFT (non-fungible token) distribution platform Pinata <a href="https://www.pinata.cloud/blog/funding-announcement" target="_blank" rel="noreferrer noopener">raised</a> $21.5 million in funding rounds led by Greylock, Pantera and Offline Ventures.



Blockworks recaps other notable stories that caught the eyes of the Web3 Watch.



<h3 class="wp-block-heading">Top Drops of the Week:</h3>



<h4 class="wp-block-heading">“Krap Chickens” NFTs</h4>



“Community” and “Rick and Morty” creator Dan Harmon is behind <a href="https://www.youtube.com/watch?v=OD9U5zWHJL0&amp;feature=emb_logo" target="_blank" rel="noreferrer noopener">Krapopolis</a>, a new NFT-powered animated comedy show, produced in partnership with Fox Entertainment’s Web3 media and creative technology arm, Blockchain Creative Labs.&nbsp;



Krapolopolis is set in mythical ancient Greece and tells the story of a dysfunctional family of humans, gods and monsters. Scott Greenberg, CEO of Blockchain Creative Labs, told Blockworks that Krapopolis is the first animated series premiering on broadcast television to use blockchain technology “at the heart of the process.”&nbsp;



The NFT marketplace Rarible is powering Krapopolis’ own custom NFT marketplace for the Krap community to buy, sell and trade Krap Chicken NFTs, launching on Aug. 11 in tandem with the Krap Chickens NFT drop.&nbsp;



“Through the show, we&#8217;re inviting animation fans and creators to connect more closely with the series, with Dan and with each other, opening up a new and innovative entry point for viewers into Web3,” Greenberg said.



The Krap Chickens will give collectors access to exclusive content and private screenings, meet-and-greets with cast and producers. Holders are granted show voting rights, enabling fans to give feedback in real time.



<h4 class="wp-block-heading">Lamborghini’s “Epic Road Trip”</h4>



With its third and latest NFT collection, Lamborghini promises to take collectors on an epic road trip “to the moon and beyond.”&nbsp;



The Italian sports car manufacturer will drop a series of four NFTs throughout one week each month for the next eight months. The NFTs are available for only 24 hours and sold over four consecutive days. The first three NFTs of each month are unlimited, while the fourth will come with a supply cap.



There’s a puzzle: Holders of the unlimited mints can reveal a silver puzzle piece each month; collectors with all 4 NFTs will reveal the gold puzzle piece.&nbsp;



At the end of the journey, ending March 2023, those who have completed the puzzle will unlock a hidden NFT — a bid to ensure long-term commitment to the project.



<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">Claim what is yours.<a href="https://twitter.com/NFTPRO_?ref_src=twsrc%5Etfw">@nftpro_</a> <a href="https://twitter.com/INVNTGROUP?ref_src=twsrc%5Etfw">@INVNTGROUP</a> <a href="https://twitter.com/hashtag/Lamborghini?src=hash&amp;ref_src=twsrc%5Etfw">#Lamborghini</a> <a href="https://twitter.com/hashtag/TheEpicRoadTrip?src=hash&amp;ref_src=twsrc%5Etfw">#TheEpicRoadTrip</a> <a href="https://twitter.com/hashtag/LamborghiniNFT?src=hash&amp;ref_src=twsrc%5Etfw">#LamborghiniNFT</a> <a href="https://twitter.com/hashtag/NFT?src=hash&amp;ref_src=twsrc%5Etfw">#NFT</a> <a href="https://twitter.com/hashtag/NFTCollection?src=hash&amp;ref_src=twsrc%5Etfw">#NFTCollection</a>&mdash; Lamborghini (@Lamborghini) <a href="https://twitter.com/Lamborghini/status/1557320858586099712?ref_src=twsrc%5Etfw">August 10, 2022</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



<h4 class="wp-block-heading">[ Ledger ] Market x BRICK&nbsp;</h4>



Hardware wallet manufacturer Ledger recently launched its <a href="https://cms.blockworks.co/crypto-wallet-maker-ledger-sells-nfts-becomes-top-opensea-project/" target="_blank" rel="noreferrer noopener">NFT distribution platform called [LEDGER] Market</a>, or [L] Market for short, and its Genesis Pass NFTs topped OpenSea sales charts in its first 24 hours.



Its second collection, BRICK NFTs, dropped this week in partnership with Brick, a physical Los Angeles-based music venue by night and community-run space by day. It was founded by Lee Spielman and Garrett Stevenson, members of the band Trash Talk and creators of the streetwear brand Babylon LA.



BRICK NFT holders will get voting rights on programming and free access to the space, which plans to host live concerts, comedy shows, music lessons with major artists and even crypto workshops from Ledger. For members not in LA, Brick will buy land in the metaverse and stream concerts and classes. Digital merch and tour posters may also be airdropped.



<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">[ Ledger ] Market is dropping exclusive, NFT heat 🔥 with a custom, secure, <a href="https://twitter.com/ONEWORDBRICK?ref_src=twsrc%5Etfw">@ONEWORDBRICK</a> collab. The allowlist registration for the BRICK drop is now open. [ L ] Market Pass holders – you’re guaranteed one mint! Join the allowlist here: <a href="https://t.co/G0ifmejJQa">https://t.co/G0ifmejJQa</a> <a href="https://t.co/qgY54SpTrH">pic.twitter.com/qgY54SpTrH</a>&mdash; Ledger (@Ledger) <a href="https://twitter.com/Ledger/status/1557011492192518144?ref_src=twsrc%5Etfw">August 9, 2022</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



This type of NFT-based membership, that token-gates artistic and educational platforms, is becoming increasingly popular.



<h3 class="wp-block-heading">Web3 app spotlight: Raelic</h3>



Pictures may be worth a thousand words, but according to Andrea Castiglione, the founder of venture capital and advisory firm Silent Unicorn, they are also temporary.



That’s why Castiglione, alongside co-founder ex-pro footballer Alessandro Del Piero, created Raelic (pronounced relic) — a peer-to-peer NFT-based social networking mobile app. Think Instagram meets Patreon. 


<div class="wp-block-image">
<figure class="alignright size-medium"><img decoding="async" loading="lazy" width="159" height="300" src="https://blockworks-co.imgix.net/wp-content/uploads/2022/08/Raelic-159x300.png" alt="" class="wp-image-26280" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2022/08/Raelic-159x300.png?w=159 159w, https://blockworks-co.imgix.net/wp-content/uploads/2022/08/Raelic-159x300.png?w=544 544w, https://blockworks-co.imgix.net/wp-content/uploads/2022/08/Raelic-159x300.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2022/08/Raelic-159x300.png?w=816 816w, https://blockworks-co.imgix.net/wp-content/uploads/2022/08/Raelic-159x300.png?w=1088 1088w, https://blockworks-co.imgix.net/wp-content/uploads/2022/08/Raelic-159x300.png?w=137 137w, https://blockworks-co.imgix.net/wp-content/uploads/2022/08/Raelic-159x300.png?w=139 139w, https://blockworks-co.imgix.net/wp-content/uploads/2022/08/Raelic-159x300.png?w=116 116w, https://blockworks-co.imgix.net/wp-content/uploads/2022/08/Raelic-159x300.png?w=42 42w, https://blockworks-co.imgix.net/wp-content/uploads/2022/08/Raelic-159x300.png?w=27 27w, https://blockworks-co.imgix.net/wp-content/uploads/2022/08/Raelic-159x300.png?w=1277 1277w" sizes="(max-width: 159px) 100vw, 159px" /><figcaption>Raelic </figcaption></figure></div>


Raelic users can mint photos or videos as tradeable NFTs in the app for a gas fee and post them to a scrollable feed reminiscent of Instagram’s user interface. NFTs can be minted on Ethereum, Klaytn, Polygon or Binance Smart Chain.



Blockworks participated in an early access app test and spoke to Castiglione to learn more about Raelic’s ambitions.



Blockworks: Tell me about some of the pain points of Web2 that you are trying to tackle through Raelic.



Castiglione: First of all, it&#8217;s always been very difficult to interact with decentralized applications and for people to understand that they need to install a browser plugin. Then they have to put some money on that plugin. And to do that, you have to get an exchange account on Coinbase or Binance or any other exchange, and load it. Then you can use the dapp [decentralized app]. That&#8217;s only step one. Everything is very web based and it&#8217;s not very mobile friendly.



And the ability for people to produce content from their phone was what enabled the internet to explode, and TikTok and Instagram. So you need a social layer that allows people to easily create from their phone. But in order to be true to Web3, it needs to be noncustodial.



Another big issue was the disconnect between existing social networks like Twitter, Instagram or TikTok where people discover NFTs and particular communities. Then they have to go to OpenSea or LooksRare to buy it. After they go to Discord, full of scammy little bots, to talk with other people within the same collection. So you go to three platforms to do something that you can do on a mobile phone.



Blockworks: So Raelic is like a one-stop shop. Can you give me some examples of unique use cases?



Castiglione: I don&#8217;t think we have really tapped into the creator economy yet. For example, photo reporting. Take a picture, mint the moment, block the moment, and then write the story&nbsp; underneath in the description. You could sell that to the local newspaper or outlet later.&nbsp;



Or let’s say you&#8217;re a busker in London. You&#8217;re always singing and you used to post to your Instagram account, but people that go to your Instagram can only follow you. Now you can go to a social media account [Raelic] where you start building your followers who can also buy a video of that song that you sang beautifully.



Blockworks: Is Raelic considered a decentralized social media (DeSoc) platform?



Castiglione: I would say it&#8217;s a hybrid because we are a centralized service, it&#8217;s a brand. But every interaction is peer-to-peer. So you buy and sell completely peer-to-peer. We don’t get any info of that transaction and we don&#8217;t take any fees. You can create on the blockchain with complete autonomy and things are completely noncustodial.



But the governance right now is in our hands. So it&#8217;s a centralized service provider that is creating tools that are noncustodial and true to Web3. Going forward maybe one day we will decentralize the ownership with a governance token or DAO [decentralized autonomous organization].&nbsp;



But we’re taking it one step at a time. So today we ask — How do we bring the next billion people into the world of Web3 in such a way that they can create content that they actually own and can interact with people?



<hr class="wp-block-separator">
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<hr class="wp-block-separator">

Web3 Watch: New NFTs from Lamborghini and Ledger, Fox To Air First Blockchain-based Show

<div id="highlights-block_62bb694e03e53" class="highlights">
 <ul>
 <li>“Bill Murray 1000,” a collection of biographical NFTs, depict acrylic-on-canvas paintings of Murray</li>
 <li>FLUF world and Ripple establish new blockchain The Root Network</li>
 </ul>
 
</div>



<h3 class="wp-block-heading">Bill Murray’s NFT fan club&nbsp;</h3>



Startup Project Venkman wants to transform how brands use loyalty and rewards points to drive consumer retention — from tokenizing rewards points to conferring NFT (non-fungible token) status, from airlines to fintech companies.



Gavin Gillas, Project Venkman’s CEO, told Blockworks the key to building an NFT brand is to ask potential buyers to “invest in a membership.” Perks, such as exclusive event access and intellectual property rights, should be built in collaboration with the community and founders, he added.



He likened blue chip NFT community Bored Ape Yacht Club (BAYC) to a top-tier members-only social club.



“This is your new alumni association or your new trade association,” he said.&nbsp;



Project Venkman is launching an NFT collection on Coinbase’s nascent new marketplace featuring actor Bill Murray in collaboration with media company theCHIVE. 



“Bill Murray 1000,” a collection of biographical NFTs, depict acrylic-on-canvas paintings of Murray. Each NFT includes stories Murray personally recorded about his life — from his love for the Cubs baseball team to his meeting former President John F. Kennedy. Holders get access to in-person events with Murray and exclusive merchandise.



<h3 class="wp-block-heading">FLUF World&nbsp;</h3>



The FLUF World NFT project and its parent company Non-Fungible Labs are hoping to inspire NFT creators through their newly launched Futureverse Foundation, a charitable endeavor partnering with actor Keanu Reeves and artist Alexandra Grant.&nbsp;



The Futureverse Foundation aims to provide grants to artists around the world and exhibit their work on digital and physical platforms. Grant winners will be selected through a nomination process, and Reeves and Grant will act as advisors.&nbsp;



Additionally, Ripple (XRP) invested in FLUF World to develop a new decentralized blockchain, The Root Network, through which creators can utilize smart contracts without having to write and implement the contracts themselves.



The Root Network was built alongside the XRP Ledger (XRPL) that Ripple contributes to. XRP will be the default digital asset for transaction activity in the network&#8217;s multi-token gas economy, giving the XRP community access FLUF NFTs. Bridges to ETH networks via the Ethereum virtual machine (EVM) can also run on the Root Network.&nbsp;



The Root Network will provide the infrastructure for The Open Metaverse project that enables other projects to mint, buy, sell, or trade in-network tokens on chain.&nbsp;&nbsp;



<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">1) Today <a href="https://twitter.com/hashtag/FLUFWorld?src=hash&amp;ref_src=twsrc%5Etfw">#FLUFWorld</a> is excited to announce an unprecedented partnership with <a href="https://twitter.com/Ripple?ref_src=twsrc%5Etfw">@Ripple</a> to bring the <a href="https://twitter.com/hashtag/OpenMetaverse?src=hash&amp;ref_src=twsrc%5Etfw">#OpenMetaverse</a> to life via The Root Network! Here&#39;s how Ripple and the XRP Ledger (XRPL) will open up a world of possibility for our blockchain and communities 🧵👇 <a href="https://t.co/SptyKeu9qQ">pic.twitter.com/SptyKeu9qQ</a>&mdash; FLUF (@flufworld) <a href="https://twitter.com/flufworld/status/1537782733774389251?ref_src=twsrc%5Etfw">June 17, 2022</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
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<h3 class="wp-block-heading">It’s a MADworld out there</h3>



NFT platforms MADworld and Ucollex announced a partnership with Animoca Brands Japan and publishing company Kodansha to bring the popular manga series “Ghost in the Shell” and “Fairy Tail” to Web3 life.



The collaboration, announced at NFT.NYC last week, includes licensing the intellectual property (IP) rights of these series via NFTs to onboard more “culture collectors” and “uninitiated fans” into Web3, according to Robert Tran, CEO of MADworld and Ucollex.



Asked about the challenges of IP licensing when it comes to NFTs, Tran said despite the complex, expensive, and sometimes challenging-to-identify legitimate copyright and IP licenses in NFT projects, the opportunity is enormous, especially for anime creators.



“As the global market demand grows, NFTs provide a means to level the playing field for creators since most anime artists work on project basis and receive less than 10% of revenue brought in. In fact, our market intelligence indicates that a sizable number of Japanese manga artists have an average monthly pay of $1,000 &#8211; $1,500 per month,&#8221; he said in an email.



<h3 class="wp-block-heading">Cold security in tumultuous times</h3>



Blockworks connected with Ruben Merre, CEO of crypto hardware wallet maker NGRAVE, about the importance of cold security in light of recent crypto market conditions.



Blockworks: How has the market downturn affected NGRAVE’s business?&nbsp;



Merre: Crypto holders across the board have come to the widespread consensus that ownership of crypto on either a centralized exchange or through a broker is something more relative than we might have initially thought. Accordingly, there has been a pointed increase in both interest and demand for self custody solutions and hardware wallets.



Recent events have served as a serious wake up call and have definitely re-incentivized individuals to ask crucial questions surrounding ownership and decentralization of key players in the industry. All in all, I don’t expect to see people abandoning exchanges and brokers altogether, but going forward, a larger proportion of each individual’s funds will now be kept in cold storage.



Blockworks: What has been the consumer sentiment when it comes to people moving off-exchange to protect their digital assets?&nbsp;



Merre: We’ve had users tell us that putting their holdings on their hardware wallet has quite literally allowed them to sleep soundly at night in these tumultuous times; safe in the knowledge that their holdings are truly offline.&nbsp;



When the whole Celsius situation happened, people in Europe and North America were shocked to see their access to funds being blocked, because for quite some time, these regions have, for the most part, enjoyed stable banks and financial institutions.



In some developing economies, however, this news was perhaps not quite as startling. Traditional banks in certain other economies have not necessarily been as consistently stable, so the public seemed to have a better understanding that this possibility existed when dealing with brokers and indeed exchanges too.



Blockworks: What are the current problems with security that would prompt a user to want to safeguard their NFTs?&nbsp;



Merre: Security issues range from phishing messages in hacked Discord groups, to hacked wallets, to leaks of private keys. We have already seen the number of NFT hacks increase at an alarming rate from last year, with financial losses up to May of this year.



You would not store an invaluable work of art somewhere without first investing in top tier security measures such as safes, cameras, or even security staff, so why should it be any different when it comes to your NFTs?



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Web3 Watch: ‘Ghost in the Shell’ and Bill Murray Get New NFT Collections

<div id="highlights-block_629e677028fba" class="highlights">
 <ul>
 <li>Binance and The Weeknd collab on the first crypto-powered world tour</li>
 <li>Miami Fashion Weeks goes virtual in Decentraland</li>
 </ul>
 
</div>



<h3 class="wp-block-heading">Gala Games&#8217; Grit is bringing NFTs to the Epic Games Store</h3>



Epic Games, the video game publisher behind Fortnite, <a href="https://venturebeat.com/2022/06/06/gala-games-blockchain-game-grit-will-debut-on-the-epic-games-store/" target="_blank" rel="noreferrer noopener">intends</a> to list Web3 gaming company Gala Games’ wild west shooter GRIT as the first NFT-based game on the Epic Games Store.&nbsp;



A free-to-play online multiplayer game for Windows PC players, GRIT is set to launch later this year on Epic Games&#8217; own Unreal Engine. It will also feature user-owned NFT (non-fungible token) assets that can be bought and sold within the game.



Gala Games recently committed <a href="https://cms.blockworks.co/gala-games-to-plow-5b-into-nft-expansion-efforts-in-year-ahead/" target="_blank" rel="noreferrer noopener">$5 billion</a> to expand its NFT offerings between gaming, music, movies and theme park NFTs. Among them: the Gala Music platform and the launch of the NFT esport platform Spider Tanks.



Monday marked the beginning of the three-day Galaverse event in Malta, during which Gala plans to put the “The Gunslinger Box” for sale and unlock one of 10,000 GRIT avatars.&nbsp;



<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">It’s official! GRIT will be the first Gala game on the <a href="https://twitter.com/EpicGames?ref_src=twsrc%5Etfw">@EpicGames</a> store 🔥<a href="https://twitter.com/hashtag/IntoTheGalaverse?src=hash&amp;ref_src=twsrc%5Etfw">#IntoTheGalaverse</a> <a href="https://twitter.com/hashtag/Galaverse?src=hash&amp;ref_src=twsrc%5Etfw">#Galaverse</a> <a href="https://t.co/yR8YtgemMp">pic.twitter.com/yR8YtgemMp</a>&mdash; Gala Games (@GoGalaGames) <a href="https://twitter.com/GoGalaGames/status/1533783142364073986?ref_src=twsrc%5Etfw">June 6, 2022</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



<h3 class="wp-block-heading">Miami Fashion Week</h3>



The Decentraland metaverse hosted virtual events throughout Miami Fashion Week during the past few days. In conjunction with the physical shows that took place from May 31 to June 5, fashion shows with avatar models took over the Luxury Fashion District in Decentraland.&nbsp;&nbsp;



Attendees could buy virtual goods on the marketplace, while designers, models, stylists and photographers had access to a new NFT members fashion club, L&#8217;Atelier. Members could register for a whitelisting spot for “The Key” NFT, redeemable for physical and digital wearables.



Miami Fashion Week is the second event hosted on the Fashion Estate this year after Metaverse Fashion Week in March.



<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">&quot;We&#39;re all live in the Metaverse today.&quot;<a href="https://twitter.com/MiamiFashionWk?ref_src=twsrc%5Etfw">@MiamiFashionWk</a> pushing the boundaries of fashion from the physical to the digital, with the support of <a href="https://twitter.com/metav3rsegroup?ref_src=twsrc%5Etfw">@metav3rsegroup</a>, <a href="https://twitter.com/meta_archs?ref_src=twsrc%5Etfw">@meta_archs</a> and <a href="https://twitter.com/decentraland?ref_src=twsrc%5Etfw">@decentraland</a>.🔥 <a href="https://t.co/uTBZ9rW6I5">pic.twitter.com/uTBZ9rW6I5</a>&mdash; Miami Fashion Week (@MiamiFashionWk) <a href="https://twitter.com/MiamiFashionWk/status/1533499995760087040?ref_src=twsrc%5Etfw">June 5, 2022</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



<h3 class="wp-block-heading">The Weeknd x Binance to go on tour</h3>



Last week, Binance <a href="https://www.binance.com/en/support/announcement/9e921334f2db4b23b75c3581d37efdad" target="_blank" rel="noreferrer noopener">announced</a> it will sponsor its first global music tour: The Weeknd&#8217;s &#8220;After Hours Til Dawn&#8221; tour that begins in July. The crypto exchange intends to integrate Web3 technology “for fans to experience crypto within a creative avenue while supporting a good cause,” according to The Weeknd.



That good cause is the XO Humanitarian Fund, administered by World Food Program (WFP) USA and founded by the artist, who is also a United Nations WFP global goodwill ambassador. At the start of the tour, Binance will donate $2 million to the fund.



Five percent of sales of a NFT collection designed in collaboration with incubator HXOUSE will be donated to the fund as well. Concertgoers can also gain access to commemorative NFTs.



<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">Excited to partner with <a href="https://twitter.com/binance?ref_src=twsrc%5Etfw">@Binance</a> and <a href="https://twitter.com/BinanceUS?ref_src=twsrc%5Etfw">@BinanceUS</a> for my After Hours Til Dawn tour !!! We&#39;ll use innovative Web 3 tech to connect with you in NEW creative ways and collaborate on charitable efforts to provide food to those in need. <a href="https://t.co/x7zH9rg0Wq">pic.twitter.com/x7zH9rg0Wq</a>&mdash; The Weeknd (@theweeknd) <a href="https://twitter.com/theweeknd/status/1532384133359763459?ref_src=twsrc%5Etfw">June 2, 2022</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



<h3 class="wp-block-heading">Top NFT drop announcements:</h3>



<ol><li>Gap <a href="https://www.gapinc.com/en-us/articles/2022/06/gap-expands-nfts-with-demit-omphroy-and-dogami" target="_blank" rel="noreferrer noopener">collaborated</a> with the petaverse game DOGAMÍ for a July launch of digital Gap logo hoodies specifically designed for DOGAMÍ virtual pets. The Gap Threads marketplace and DOGAMÍ are both built on Tezos.</li><li>The intellectual property of Warner Bros.’ Looney Tunes characters will soon be on sale on the Nifty NFT platform. The collection, “<a href="https://www.hollywoodreporter.com/business/digital/looney-tunes-nft-tweety-warner-bros-1235156577/" target="_blank" rel="noreferrer noopener">Looney Tunes: What’s Up Block</a>?,” will start with Tweety Bird, who will turn 80 this year, and later feature Bugs Bunny and Marvin the Martian. </li><li>Mariah Carey <a href="https://www.rollingstone.com/music/music-news/mariah-carey-nft-songwriters-hall-of-fame-1361982/" target="_blank" rel="noreferrer noopener">launched</a> her first NFT on Geojam and designed it as a boarding pass. The winning bidder of the NFT will fly with Carey to New York and attend the ceremony with the artist, where she will be inducted into the Songwriters Hall of Fame.</li></ol>



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Web3 Watch: Epic Games Store Adds First NFT Game, Binance Sponsors The Weeknd Tour

<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>



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.



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.”



<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">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.&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>



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;



<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">megathread on milady and their founders: &#8211; miya&#39;s writings &#8211; Grooming &#8211; Gaslighting &#8211; Systemspace and suicide of 17yo teen &#8211; Remilia implication proof of everything will be at the end of the thread&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">Buterin vs. Bored Apes&nbsp;</h3>



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;



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;



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.”



<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">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.&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>



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;



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.



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



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.



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.



<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">It’s official! The GameStop Wallet is here. Download: <a href="https://t.co/GkxiRaYN7W">https://t.co/GkxiRaYN7W</a> Follow: <a href="https://twitter.com/GameStopNFT?ref_src=twsrc%5Etfw">@GameStopNFT</a> 🧵👇&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>



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.



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



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.



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.



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.



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.



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



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;



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;



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.



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.



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