Columns

US and China try to crush Binance, SBF’s $40M bribe claim: Asia Express

Binance’s future threatened after superpowers try to crush it, SBF accused of massive bribe over trading in China, former OKX exec charged.

Our weekly roundup of news from East Asia curates the industrys most important developments.

Binance’s secret U.S. users

On Mar. 27, the U.S. Commodity Futures Trading Commission (CFTC) charged Binance and its founder Changpeng Zhao with alleged willful evasion of federal law and operating an illegal digital assets exchange. In the 74 page complaint, the CFTC claimed that despite the exchange’s public position of banning U.S. users, internal documents suggest that at least 20% to 30% of the exchange’s traffic came from U.S. customers. That equates to almost three million alleged U.S. users by mid-2020.

Crypto exchanges are required to register with either the CFTC or the U.S. Securities and Exchange Commission before soliciting U.S. customers. However, the CFTC allege that Binance ignored such ruling as its executives claimed that the regulations were “not reasonable” in the context of Binance’s corporate structure and that it was more “profitable” to simply bypass them.

Since the allegations surfaced, Chicago quantitative trading firm Radix Trading has confirmed that it is one of the three high-volume trading firms onboarded by Binance and listed in the CFTC complaint. In an official statement, Binance called the CFTC lawsuit “unexpected and disappointing.”

Founded in China by CZ in 2017, Binance quickly became the world’s largest crypto exchange through its low-fee trading mechanisms and wide range of product offerings. However, the exchange also came under intense scrutiny by regulators over allegedly lax know-your-customer and anti-money-laundering measures. Among many items, the CFTC seeks disgorgement of revenue generated by U.S. users’ trading activities, civil monetary penalties and permanent injunctive relief.

Interestingly, a screenshot cited by the CFTC shows that Binance's top 2019 revenue came from the U.S. and Chinese segments, both being countries where Binance.com is not authorized to operate.
Interestingly, a screenshot cited by the CFTC shows that Binance’s top 2019 revenue came from the U.S. and Chinese geographical segments, both being countries where Binance.com is not authorized to operate.

USA’s unexpected ally in the fight against Binance

From heated diplomatic arguments on human rights issues to ruffling feathers in the South China Sea, the U.S. and China, two major superpower, often find little common ground in everyday global affairs. However, it appears the two have finally found an entity worthy of mutual disdain Binance.

Around the same time the CFTC unveiled its investigation of millions of allegedly undisclosed U.S. users on Binance, a Mar. 23 report by CNBC found that Binance employees or volunteers allegedly shared techniques for Mainland Chinese users to evade the exchange’s KYC verification.

Techniques shared include the use of fake residential addresses, VPNs, non-Chinese affiliated email addresses to create an account and then backlink it to a Chinese national ID.

Cryptocurrency exchanges have been banned in China since 2017 with its websites blocked and major social platforms banning keyword searches containing “Binance.”

The same week, an investigation by The Financial Times alleged that Binance had significant ties to Mainland China despite its relocation in 2017. Speaking on the matter, a Binance spokesperson told Cointelegraph that Binance “does not operate in China nor do we have any technology, including servers or data, based in China,” and “we strongly reject assertions to the contrary.”

Despite their differences, the U.S. and China has finally found common ground in the fight against Binance.
Despite their differences, the U.S. and China has finally found common ground in the fight against Binance. (Magazine via Imgflip)

SBF alleged $40M bribe to Chinese officials

In a new series of indictments filed against Sam Bankman-Fried (SBF), founder of bankrupt cryptocurrency exchange FTX, by the U.S. District Court Southern District of New York, prosecutors alleged that SBF paid $40 million to one or more Chinese government officials to unfreeze accounts related to Alameda Research, which was based in Hong Kong.

In 2021, Chinese authorities alleged froze $1 billion in cryptocurrencies from Alameda Research’s trading accounts on Chinese exchanges as part of an ongoing investigation into a counterparty. Exchanges were banned in China in 2017 but actual enforcement and offboarding of users did not come until a later time.

After months of failed attempts to unlock the accounts, the self-proclaimed effective altruist apparently concluded the wheels of justice needed a little grease. Prosecutors say that under direct orders from SBF, an Alameda employee allegedly transferred $40 million from one of the firm’s accounts to a private wallet in Nov. 2021. Shortly thereafter all Alameda trading accounts were unfrozen and SBF quickly went back to his routine trading activities. The criminal trial for the disgraced crypto executive is scheduled for Oct, 2, 2023 and he faces up to 115 years in prison if convicted on all charges.

Read also
Features

This is how to make and lose a fortune with NFTs

Features

Is Ethereum left and Bitcoin right?

Chinese blockchain executive’s rape charges

According to local media reports on Mar. 28, Jun Yu, founding partner of Web 3.0 fund A&T Capital and former investment director at cryptocurrency exchange OKX, is currently under criminal investigation by Chinese authorities over allegations of sexual misconduct.

Yu has reportedly left his role at A&T Capital following the accusations. According to the criminal complaint, the event started when Yu’s car slammed into a vehicle driven by the alleged victim, Ms. Wan, at an unspecified time during the year in Hangzhou, China. Captivated by her “beauty,” Yu then asked Ms. Wan for her WeChat contact to “discuss compensation”.

Afterwards, Yu repeatedly made requests to ask Ms. Wan out to dinner, to which she agreed. Authorites say that during the meetup, Yu allegedly pressured Ms. Wan into drinking excessive amounts of alcohol whilst bragging about his connections to senior Chinese Communist Party officials. Later Yu called a taxi and took the woman to a nearby hotel where she was allegedly raped.

Yu fled to Singapore shortly after the alleged incident, a country that, perhaps unbeknownst to Yu, has an active extradition agreement with Mainland China. Hangzhou police reportedly found evidence at the scene which resulted in his prompt arrest.

A&T Capital was founded in 2021 and closed $100 million in funding in 2022. The fund has invested in notable crypto projects such as Mysten Labs, or Sui Network, Scroll, and BitKeep.

The firm has since stated it had “zero tolerance” for illicit or immoral activities and will be launching its own independent investigation in addition to cooperating with law enforcement regarding the incident. Jun Yu previously worked at OKX as an investment director from Mar. 2018 to July 2019.

Jun Yu's Twitter account.
Jun Yu’s Twitter account with professional descriptions. (Twitter)

Web3 Gamer: Shrapnel wows at GDC, Undead Blocks hot take, Second Trip

First-person shooter Shrapnel blows gamers away at GDC, Otherside’s Second Trip vs Fortnite, Callan gets killed by zombies over and over.

Shrapnel: The game at GDC everyones talking about

As the annual Game Developers Conference in San Francisco came to a close last week, there was one game that stood out from the rest. Shrapnel, a highly anticipated first-person shooter in the Web3 space, was the talk of the conference thanks to its stunning graphics and immersive gameplay. 

Gamers playing Shrapnel
Select invitees got a first look at Shrapnel at GDC. (Shrapnel/Twitter)

Select visitors were treated to a hands-on experience with the pre-alpha version of the game. Set in the year 2044, Shrapnel takes place in a post-apocalyptic world. Players must navigate the sacrifice zone, where they collect NFT gear and a compound named Sigma. They can win by reaching an extraction point where they can escape with their loot. If they die, they lose their loot. 

Shrapnel founder Mark Long says that for his team, its all about the gameplay first. He added that while the demo took place behind closed doors this time, more people would be able to play Shrapnel next month.

Anyone at ConsenSys will be able to play it on the show floor, he says, referring to the conference in Austin, Texas, in late April.

EVE Online, MapleStory to get Web3 treatment

While Shrapnel was hogging the limelight, EVE Online creators CCP Games announced they raised $40 million in a round led by a16z to develop a new AAA title set in the EVE universe.

EVE Online is a space-themed massively multiplayer online role-playing game (MMORPG). Launched in 2003, its game includes over 7,000 solar systems and two decades of player-created history. Players can choose their own paths and professions in the game, focusing on battles, mining, exploration and industry, as they interact with its complex in-game economy and hierarchy. 

Its not a game for the faint-hearted: some describe playing the game as having a second job. In addition, the increasing cost of playing EVE Online has long been a point of contention between players and CCP Games. 

EVE Online
The complex MMO takes place across thousands of solar systems. (Steam)

As with every time a Web2 game studio expresses an interest in Web3 think Neopets metaverse, for instance the worry among players is that its little more than a cynical cash grab. 

The details of what the blockchain EVE game will look like are still under wraps but the company has made clear its not going to impact EVEs global server, known as Tranquility. Last year, the company came out and said that they had no plans to add blockchain technology to Tranquility.

While we remain intrigued by the technology, for us, NFT stands for Not for Tranquility, company CEO Hilmar Veigar Petursson said at the time. 

Related: What are Web3 games, and how do they work?

The website for this project, which suggests the name is Project Awakening, states the game is separate from current and previously disclosed projects, including EVE Online.

Its not the only traditional gaming brand thats recently announced its jumping on the Web3 bandwagon. Gaming company Nexon is bringing its popular game, MapleStory, to the blockchain. 

MapleStory
MapleStory is a 2D MMO. (Steam)

Claiming over 260 million players, the game allows players to explore deserts, tundras, underwater kingdoms, lost civilizations and more. The South Korean firm follows other players in the region, such as Square Enix and Bandai Namco, that have previously dabbled in Web3. 

Related: Justin Sun vs. SEC, Do Kwon arrested, 180M player game taps Polygon: Asia Express

Bazooka Tango wants to revive indie card game Shardbound

Indie game Shardbound is also getting a Web3 revival, from gaming studio Bazooka Tango. A tactics card game, Shardbound initially launched through Kickstarter. But it never made a full release, and interest faded.

Thats when Bazooka Tango came in and decided to give it a new lease of life, according to the companys co-founder, Stephan Sherman. 

The developers at SpiritWalk had been very close friends of ours and we had always been a fan of the product, Sherman tells Cointelegraph.

Once we had the opportunity, we talked to them about picking up where it left off and bringing it the final mile, so it had a chance to reach a worldwide audience.

The Shardbound beta will be open to the public around mid-year 2023 and available on mobile in 2024.

Shardbound concept art
Shardbound concept art. (Shardbound/Twitter)

Othersides Second Trip to Fortnite

Yuga Labs Otherside returned for its Second Trip on March 25. The event saw over 7,200 concurrent players on the platform, with Improbable, the company behind the tech, once again showcasing its impressive capabilities.

Unlike the First Trip in the summer of last year, the newest iteration had a bit more gameplay beyond avatars running around doing backflips. Participants in the Second Trip teamed up to collect blobs. The winning team, Team Glacia, earned virtual winged helmets.

Second Trip players
Thousands of players joined the Second Trip on Saturday. (OtherGuild/Twitter)

On Crypto Twitter, it wasnt long before the Fortnite comparisons started rolling in, both positive and negative. The company garnered praise for how much it has managed to achieve in such a short space of time this time last year, Otherside was but a rumor, officially launching at the end of April but others quickly fired back that the comparisons were inaccurate and unhelpful. 

Its not yet clear what Yuga Labs has planned for gameplay. But then again, there are only so many ways one can collect virtual objects before it all starts to feel the same. Game Fund Partner Jonah Blake tweeted:

The otherside is not competing with Fortnite creative. They are 2 different things. They both compete for attention, and attention will be whatever is on a Deed or a Fortnite island. The creators will drive that attention. Brands will post on all of them.

Following the Second Trip, Yuga Labs announced several new updates. First, it looks like the company will be teaming up with Gucci for something related to the Otherside.

Its also rolled out Legends of the Mara, which Yuga Labs said is a collection-based 2D strategy game that picks up where the events of Second Trip leave off.

With it, were going to learn more about Kodas, including their origins and their primal relationship with Otherside, encounter some new apprentices in the form of the Mara, and learn more about the story of Otherside throughout LOTM, Otherside tweeted.

Related: Otherside Metaverse demo kicks off with 4,500 participants: highlights

Read also
Features

Porn Payments Were Supposed to be Cryptos Killer App: Why Have They Flopped?

Features

Here’s how to keep your crypto safe

Magic Eden gaming hub

NFT marketplace Magic Eden began pivoting to gaming last year, and this month it finally rolled out its gaming hub. 

The idea, according to its gaming CEO Chris Arkhavan, is to turn the platform into a hub for Web3 gaming where users can find new games, buy NFTs and view leaderboards. Its not hosting games on its platform but has plans for more community-focused integrations in the future.

Magic Eden
Magic Eden is pivoting to gaming.

Hot Take Undead Blocks

So, Bitcoin up today?

Its not the first thing you expect to hear as you walk nervously around the neighborhood of Sanborn, New York, waiting for the zombies to inevitably descend on you, but it helps release a bit of the tension. Your character shouting to the moon as the hordes descend is as good a war cry as any, I suppose. 

zombie hordes
Undead Blocks is described as a kill to earn game.

The beta of Wagyu Games and Kevurus kill-to-earn game Undead Blocks launched last month on ImmutableX. Wagyu Games executive director Grant Haseley is a former Goldman Sachs analyst who set out with the aim of making an easy-to-learn and addictive game that is playable with friends. 

Easy for everyone except me. I have the hand-eye coordination of a drunk three-year-old and am much more at ease pottering around Stardew Valley planting potatoes than trying to survive the apocalypse. 

Being able to control the unwieldy pistol improves slightly when I turn down the mouse sensitivity by about 90%. At least, I stop dying after killing just one zombie.

That said, I can still appreciate that it looks cool. And Ive heard positive reviews from people who have used a game controller you can use the ones for your Xbox or Playstation as opposed to a Mac.

Overall, the look and general playability of blockchain games are so much better than they were a year ago, and Undead Blocks is no exception. It has crisp graphics, a cool soundtrack in the intro and cringe-in-a-mildly-amusing-way musings from the avatar about crypto.

Read also
Features

Green consumers want supply chain transparency via blockchain

Features

Bitcoin 2022 Will the real maximalists please stand up?

Whats Coming Up

Amazon NFT and Gaming platform In January, it was revealed that Amazon was building an NFT and gaming platform. The e-commerce giant has remained tight-lipped about the plans but unconfirmed reports suggest something could be launched on April 24. 

Imposters This Among Us-esque social deduction game will launch a beta for verified holders on March 31. It was delayed from the original date of March 24 due to issues with migrating the game to Unreal Engine 5.1. 

CGC Online The Crypto Gamers Conference is back for another year from April 17-18. Tickets for the virtual event are available free online and the deadline for speaker applications closes April 10. 

Eternal Dragons Blockchain game Eternal Dragons will hold its first official PvP tournament from March 31 to April 2. Theres a prize pool of over $15,000 USDC up for grabs. 

The Glimmering Blockchain-based Dungeons and Dragons game The Glimmering will launch its play platform on March 30. NFT holders will be able to sign up to play games virtually. 

Immutable Passport Immutable is set to roll out its gaming passport in April. The noncustodial wallet and authentication solution aims to streamline user onboarding to its games.

Got tips, questions or comments? Please direct all vitriol, abuse and declarations of love to me on Twitter @quinnishvili.

Crypto Wendy on trashing the SEC, sexism, and how underdogs can win: Hall of Flame

Crypto Wendy built an audience by being herself, defending others, trashing jerks and the SEC, and showing underdogs how to win at crypto.

Name: Wendy O 
Anonymous: No 
Twitter followers: 330,000
Known for: crypto commentary, shitposting, trading analysis and community initiatives

Who is Crypto Wendy anyway? 

Wendy is a former healthcare professional turned crypto trader and content creator, or what she describes as a YouTube shock jock. 

While the switch from health to crypto came about due to a number of reasons, one big factor was that the long commutes and working hours were taking her away from spending more time with her number one asset: her daughter.

For seven years, I worked in infectious disease, HIV/AIDS, and I had a three-hour round trip commute four times a week. I was far from my daughter, and I just wanted to be close to her, she says, adding: 

So then I bought some Bitcoin. And I was like, Oh, God, this is cool. Like, I didnt really know, I just saw a number go up. And I was like, awesome. This is cool. This stands for liberty.

Diving into crypto, firstly via Bitcoin in 2017, Wendy taught herself how to trade and discovered that being able to do so round the clock, 24/7, worked perfectly with having a one-year-old daughter, as she could fit everything around her childs schedule.  

Wendy puts all of her audience growth down to being authentic online, advocating for what she believes in and standing up for the underdog. 

I just was myself, and I was authentic online. I hosted meetups, I defended people, I went after jerks [online]. I trashed the SEC and kind of stood up for the people and powered people, and I just grew my audience organically, she says. 

I just was doing it because I wanted to really help the underdogs and help people who grew up poor, like I did, and people that came from really fucked up backgrounds to know that they can join any industry they want and thrive.

In the early days of her online career, a notable portion of her growth came from hosting free crypto-focused meetups. Wendy said that because the big-name events were too expensive for herself and many others, she started hosting her own gatherings to plug that gap.  

I noticed a need for meetups and events that were affordable because all the crypto events back then, you had to pay like $1,000 to go and I grew up super poor. I didnt have $1,000 [to spare]. I hosted over four dozen free meetups in L.A. County, and you know, across the United States, one in Canada, and then I just created the YouTube channel to livestream those events, she said.  

What can you expect from her on Twitter? 

Wendy spends a lot of her time slamming the hawkish behavior of the United States Securities and Exchange Commission and other villains in the crypto space. 

Apart from that, shes most likely supporting other people and initiatives in the industry, offering trading analysis or partaking in some good old-fashioned shitposting (a recurring theme among many popular crypto influencers.) 

Im very blessed and grateful to have a large audience. And all social media platforms. I think were at 815,000 globally on Facebook, Twitter, TikTok, YouTube and Instagram, she says.

Its really awesome because I get to use my platform to support initiatives like the Digital Currency Traders Alliance; weve raised over $50,000 for a nonprofit called the Self Care lab […] So Ive been able to be a really big advocate for things that are important to me, and its just really awesome. 

The Self Care Lab is a boxing gym located in Pomona, California, that caters to underprivileged and at-risk youth.

Being a longtime client of the gym and a strong proponent of using physical fitness to uplift the youth, Wendy tapped into her network in late 2021 to raise the funds to not only move locations but upgrade various worn-down pieces of equipment. 

Twitter Beefs

Unlike other figures in the Twitter Hall of Flame, Wendy isnt keen to discuss or bring attention to her series of spats with other people in the industry. She puts the emphasis on reconciliation rather than recriminations.

Probably some of my favorite beefs are people that have trashed me on the internet  who have then met me in person and have said, you know, Im sorry for being a dick. Ill just leave it at that, as I feel like thats nice.

But shes not without a bit of edge:

Twitter likes & dislikes

I love Twitter because Im able to connect with so many amazing people on a global scale and from all over the United States. And thats dope.

I like to talk to people who came from where I came from, and who have a passion and are passionate about things that I am. So that part is amazing.

On the other hand: A lot of people arent very nice on the internet. Sometimes everybodys got a voice and an opinion and when you work in a male-dominated industry, there is that reality of getting talked to not very nicely; people sexualizing you, people saying shitty things to you, people calling you dumb because I dont come from money. I dont come from traditional finance, I dont come from a tech background, she says. 

Read also
Features

The best (and worst) stories from 3 years of Cointelegraph Magazine

Features

Unstablecoins: Depegging, bank runs and other risks loom

Looking ahead 

I want to keep growing and I want to be able to include as many underdogs as I can, and let everybody know no matter what background or how different you are from somebody else, that you matter, your voice matters and keep advocating for retail, and let them know that Ill be their voice when needed, she says.

Justin Sun vs. SEC, Do Kwon arrested, 180M player game taps Polygon: Asia Express

Chinese crypto billionaire Justin Sun sued by SEC, Do Kwon busted in Casino Royale location, game with 180 million players embraces Polygon.

Our weekly roundup of news from East Asia curates the industrys most important developments.

Chinese crypto billionaire sued by SEC

The United States Securities and Exchange Commission on March 22 announced charges against Chinese blockchain personality and billionaire Sun Yuchen better known as Justin Sun and three of his wholly-owned companies: Tron Foundation Limited, BitTorrent Foundation Ltd., and Rainberry Inc., a firm formerly known as BitTorrent.

The complaint alleges that Sun and his companies fraudulently manipulated the secondary market for Tron (TRX) tokens through extensive wash trading,” conducting more than 600,000 such trades, and also paid celebrities to promote TRX and BitTorrent (BTT) tokens with zero disclosure.

Multiple prominent American celebrities, including Lindsay Lohan and Jake Paul, were named as defendants for their alleged roles in promoting TRX and BTT without proper disclosure. Some have since settled with the SEC. In addition, the SEC alleges that bounty programs and airdrops used to promote TRX and BTT were unregistered investments. Gary Gensler, the chairman of the SEC, commented:

“As alleged, Sun and his companies not only targeted U.S. investors in their unregistered offers and sales, generating millions in illegal proceeds at the expense of investors, but they also coordinated wash trading on an unregistered trading platform to create the misleading appearance of active trading in TRX.” 

Justin Sun is an active figure in the crypto industry who rose to prominence via the $70 million initial coin offering of Tron in 2017. The ICO was reportedly conducted one day prior to the Chinese governments announcement of a blanket ban on all ICOs within the country. Sun, who reportedly left Beijing shortly after to move to San Francisco, used his newfound wealth from the successful ICO to acquire the peer-to-peer downloading platform BitTorrent.

Sun reportedly laid low while in the U.S. and presented himself as an honest businessman fleeing from the specter of communism. U.S. authorities have heard this sort of rhetoric before, however. On March 15, the U.S. Department of Justice announced that it had arrested Chinese billionaire Guo Wengui over his alleged role in an alleged $1 billion stock and crypto fraud scheme. Just days before his arrest, Guo shilled to his viewers the importance of his crypto exchange, blockchain technology and tokens he had created in the fight against communism.

The interest from U.S. authorities may have been behind Suns decision to move out of the U.S. in 2020 and into the sunny Caribbean island of Grenada. He has since become the countrys ambassador to the World Trade Organization. Aside from foreign relations duties and the bestowment of the fancy title His Excellency,” the role grants Sun a diplomatic passport that theoretically provides immunity against prosecution.

Despite the controversies, Sun appears to be doing quite well in his new home. Last November, Sun reportedly acquired 100% of the co-founders stakes in cryptocurrency exchange Huobi Global even though he publicly claims he is just a humble adviser” in Huobis everyday affairs.

In January, Asia Express reported that many Huobi employees benefits were allegedly axed via direct orders from Sun. In other areas, cryptocurrency exchange Binance has also significantly limited its utilization of Tron Tether (TRC-20 USDT) after regulatory backlash on its own stablecoin Binance USD.

“Thx for your support & advice on how to take #TRON to the next level!,” wrote Sun on Twitter following a $4.5M dinner with American billionaire investor Warren Buffet. Source: Twitter

Do Kwons bad bet at Casino Royale

If Do Kwon has anything in common with James Bond in the 2006 hit filmCasino Royale, it is that both found (or are currently finding) their stay in the beautiful seaside nation of Montenegro to be deeply unpleasant. On March 23, Filip Adzic, minister of the interior of Montenegro, announced that a South Korean national suspected of being the wanted fugitive Terraform Labs co-founder Do Kwon had been arrested at Podgorica Airport over falsified documents.

Shortly after the announcement, South Korean authorities confirmed that the detained individual is, in fact, Do Kwon based on a positive match of name, birth date, nationality and photographic evidence. Police say they are awaiting a fingerprint check from Montenegrin authorities to definitively identify the arrested individual.

Do Kwon is currently wanted by Interpol, as well as South Korean, Singaporean and U.S. authorities, for his role in the collapse of the $40 billion Terra Luna ecosystem in May. Last October, South Korean prosecutors revoked Kwons passport. He was reportedly hiding in Serbia at the time.

Serbia shares borders with Montenegro, a Balkan country that became independent in 2006 and, as a result, has signed few extradition agreements with other nations. However, an extradition agreement merely facilitates the process and is not a requirement for extradition to take place. Interestingly, South Korea does not have an embassy in Montenegro and vice versa.

Kwon had not been seen since late 2022 until news of his reported arrest. If anything, the blockchain executive has proven to be somewhat of a lackluster gambler. Aside from what appears to be a failed attempt to evade arrest and attempts to double down on the Terra Luna (LUNC) ecosystem, Kwon recently, and finally, lost an $11 million bet that the price of LUNC will be above $90 per token by mid-March 2023. LUNCs price was $0.0001259 at the time of publication.

Shortly after an Interpol Red Notice was issued, Do Kwon explained to Journalist Laura Shin that Terra
Shortly after an Interpol Red Notice was issued, Do Kwon explained to journalist Laura Shin in an interview that Terra was never really about money or fame or success.” Source: Unchained

MapleStory moves into GameFi

On a happier note, South Korean gaming giant Nexon announced on March 22 that it had selected Ethereum layer-2 scaling solution Polygon (MATIC) to power the blockchain ecosystem for the multiplayer 2D fantasy role-playing game MapleStory.

According to Nexon, a Polygon supernet created by Polygon Labs will be deployed within Maplestory to allow players to earn and collect in-game items as nonfungible tokens. Ryan Wyatt, president of Polygon Labs, said:

“Nexon selecting Polygon Supernets to power its worldwide hit MapleStory Universe sends a strong message to the entire gaming industry about the future of blockchain gaming.”

Last January, Wyatt announced his resignation as head of gaming at YouTube and joined Polygon Studios as its new CEO.

Created in 2003, MapleStory has immense popularity in the Asia-Pacific region and has surpassed 180 million registered players. In-game items are currently purchased using Nexons currency, NX. The company reported $2.6 billion in revenue in 2022 and has developed over 50 games since its inception.

Maplestory embraces blockchain technology after 20 years. (Nexon)
MapleStory embraces blockchain technology after going strong for 20 years. Source: Nexon

Creating ‘organic’ generative art from robotic algorithms: Emily Xie, NFT Creator

New York NFT artist Emily Xie explores the tension between creativity and “cold and robotic” algorithms. Punk6529 and DC Investor are collectors.

New Yorks Emily Xie is exploring the new frontier of digital art by combining her skills and passion for computer science and generative art. 

In a little under two years, since she minted her first NFT in March 2021, she has caught the attention of prolific collectors, such as Punk6529, DC Investor and Bob Loukas, and recently left her software engineering job to pursue life as a full-time artist. 

I studied art history, took studio art courses, but also studied computational science and engineering. I made all sorts of art growing up, but it was more in a traditional media way. As a software engineer, I was always hoping to combine my love for programming as well as my love for art and creativity, says Xie. 

Generative Patchwork and Bullseye by Emily Xie
Generative Patchwork and Bullseye by Emily Xie. (Hypemoon)

Discovering generative art

I found that desire in generative art in around 20152016. It made a lot of sense making art with code. You dont get any more of a direct and elegant combination than that of those two fields.

Its so full of exploration. Youre engaging with technology in a way thats creative because it exercises both sides of the brain, and thats a rare thing to encounter. 

Xie attributes her love for making generative art to the freedom it gives her to let her creativity loose, and she gets lost in the process. 

Assemblage #6 on Tezos Blockchain by Emily Xie
Assemblage #6 on Tezos Blockchain by Emily Xie. (Objkt)

Generative art is meditative for me. Whenever I made it, I got really sucked into it. The world around me would just disappear, and I would spend hours just programming and seeing what the algorithm might do.

Prior to NFTs, there was not very much opportunity to actually make a living out of it. When NFTs did come along, it was the first time where I actually saw a pathway for myself to be making a living as an artist. 

Inspired by East Asian art, Xies collection Memories of Qilin was launched via Art Blocks a year ago and has now seen over 4,400 ETH ($7.4 million at the current ETH price) in secondary sales.

In July 2022, Xie teamed up with Bright Moments for her 100-piece collection Off Script, which is an algorithmic representation of a 20th-century modern art collage. 

Just recently, the New York resident engaged in a collaboration with the Los Angeles County Museum of Art, and she also has worked with SuperRare and Objkt (Tezos). 

Influences

Xie takes influence from many artists and styles but specifically singles out Japanese ukiyo-e artist Hokusai, best known for the famous big wave woodblock print, and Spanish painter Picasso who revolutionized abstract art with cubism. 

For me, I love abstract expressionists and early modern collage artists, but a few names that come to mind are Hokusai and Picasso, she says, also referencing the Fidenza NFT artist Tyler Hobbs.

Read more: Tyler Hobbs wrote software that generates art worth millions

Theres a lot of generative artists that have inspired me over the years. Tyler Hobbs is one of those. Id also say Zach Lieberman has been a huge inspiration, says Xie. 

In general, the genre influences for me are collage and textiles. I draw a lot of real-world inspiration from them. 

The Great Wave off Kanagawa by Hokusai, 1831
The Great Wave off Kanagawa by Hokusai, 1831. (Metropolitan Museum of Art)

Personal style of generative art

Xies aesthetically pleasing style takes inspiration from traditional East Asian art, and she has a knack for creating pieces that can be studied with the naked eye at length. 

I would say that my personal style is very influenced by textiles, patterns, collage and wallpaper. This idea of bringing together a lot of different patterns and putting them into one piece and seeing how that can create something so cohesive thats really interesting to me, Xie states.

Her work brings human warmth to what could be a sterile nature of computer-generated art. 

I would say that, a lot of times, my artwork tends to have a very organic feel. It explores this tension between what is handmade and appears very human versus what is computational and somewhat cold and robotic.

Its very fascinating to me to bring in a sense of organic and human into a medium thats inherently digital with the code I use. 

Notable generative art sales to date

NFT artists to watch

Xie points out a number of up-and-coming NFT artists shes excited about. 

William Mapan An artist who works with code and has been featured on Art Blocks, Bright Moments and at Sothebys. 

William is an incredible artist. He has all these beautiful, hand-drawn-looking works. His series Anticyclone is just stunning, and Ive collected one. I think he really loves drawing inspiration from traditional media as well. 

Iskra Velitchkova A computational generative artist whos also been featured at Sothebys. 

Her work has a very digital quality to it. Whilst digital, its also deeply atmospheric. Her style is so consistent. If you see an Iskra Velitchkova piece, you know its hers. 

Sasha Stiles A metapoet and AI researcher.

Sasha is doing some amazing work around artificial intelligence and poetry. Its very cutting edge in my opinion. 

Read also
Features

Lushsux: A decade of ass-whoopin and skullduggery in a single NFT

Features

The Road to Bitcoin Adoption is Paved with Whole Numbers

Generative art process 

Using a combination of traditional sketching, photoshop and writing algorithms, Xies process can be quite time-consuming and detailed. 

Programming is a pretty intensive process, so you want to visualize what youre trying to program as concretely as possible before doing it. I typically do that in Photoshop and sketch out what happens if I add a line to a given element. Ill look to see if that makes sense. If it looks good, I will then program it out and see where that takes me, says Xie. 

Often, it starts with a pretty extensive mood boarding process where Ill go and collect a bunch of images that I love that Im inspired by. That gives me an idea of what Im interested in at that moment. Sometimes, I cant articulate or vocalize that myself; its a very subconscious thing. 

Off Script #62 by Emily Xie
Off Script #62 by Emily Xie. (OpenSea)

Once Xie has an idea of what she wants to make, she starts to code to create the output. 

When Ive got my inspiration, I then start tinkering around with algorithms. Sometimes, that means revisiting an algorithm that Ive already written or learned about, for example, flow field. From there, its a matter of trying to draw inspiration from other elements and attempting to recreate them using code.

Typically, what that means is youll lay down some lines of code and then youll see what it produces, and itll render on your screen. From there, it becomes an iterative process of playing with parameters. For example, if you constrained one parameter, you might get wavy lines instead of something else. Youre constantly going back to your code, editing it and rendering it, and then repeating that process over and over again until you get something you like. 

Throughout my programming process, I actually try to prototype rapidly as much as possible because you can also run into the problem where you have an idea and spend all day programming it out, but it looks bad, and youve wasted all that time.

Physical-to-digital art paradigm shift

Xie says that tokenized digital art is turning the traditional relationship between original and reproduction on its head. 

Its interesting because, in the past, the Mona Lisa physical object is the true piece. Then every other picture of it you find floating around on the internet is just a manifestation of it. In this paradigm, its the complete opposite, which is really funny. I think its really important because, for the longest time, the traditional model left digital artists without a real way to assign originality and collectibility to the artwork, Xie says. 

In the past, there wasnt an easy way for my generative art to be collected. How do you collect something that sits on your computer but could be transferred to any computer all around the world with a click of a button? It required a way to assign rarity to a JPEG. NFTs are it. If people really think about it, it makes so much sense, and it opens up digital art to be finally appreciated and collected. 

Favorite NFT you own

I would have to say Anticyclone by William Mapan and Folio #22 by Matt DesLauriers. I love both of those pieces that Ive collected. 

Links: 

Lynkfire: linktr.ee/emilyxxie 

Twitter: twitter.com/emilyxxie 

Memories of Qilin website: memoriesofqilin.com/ 

Chinese billionaire’s $1B fraud charges, Kwon’s $11M bet, Zhu Su and Islam: Asia Express

Chinese billionaire using crypto to fight communism charged over $1 billion fraud, Do Kwon’s $11M bet comes due, Zhu Su bonds with Islam.

Our weekly roundup of news from East Asia curates the industrys most important developments.

Chinese billionaire arrested in U.S. for $1B financial fraud 

According to an announcement published by the U.S. Department of Justice (DOJ) on Mar. 15, Chinese billonaire Ho Wan Kwok (aka Miles Guo and more commonly as Guo Wengui), has been arrested on a total of twelve charges, including wire fraud, securities fraud, bank fraud, and money laundering. Among many items, the DOJ alleges that Kwok/Guo “fraudulently obtained” more than $262 million from victims through cryptocurrency platform Himalayan Exchange. 

The Himalaya Exchange included assets such as Himalaya Dollar (HDO), a purported stablecoin, and Himalaya Coin (HCN), a purported trading coin. According to the indictment, Guo told investors that HCN was 20% backed by gold and that he would personally compensate investors for “100%” of trading losses. 

“If anyone loses money, I can say that I will compensate 100%. I give you 100%. Whoever loses money, I will bear it.”

Guo launched both HCN and HDO coins in an initial coin offering (ICO) around Nov. 1, 2021, when HCN was trading at around $0.10 apiece. Two weeks later, the Himalaya Exchange website stated that each HCN was worth 27 HDO, or $27, and had a total market cap of $27 billion.

Between Sept. 2022 to Mar. 2023, U.S. Authorities subsequently seized $634 million in Guos alleged fraud proceeds, including $278 million from bank accounts held by Himalaya Exchange and related entities. At the time of publication, social accounts and Himalaya Exchange’s website appears to be still online and active.

Guo Wengui promoting the purported benefits of the Himalaya Coin in 2021 (Youtube)
Ho Wan Kwok/Guo Wengui promoting the purported benefits of the Himalaya Coin in 2021 (Youtube)

In another incident, Guo allegedly sold $452 million in common stock in an initial public offering (IPO) to over 5,500 investors for shares of GTV Media Group. The DOJ allege that in both incidents, the entreprenuer misappropriated a substantial portion of investors funds and will seek forfeiture for the seized assets. Back in 2021, the U.S. Securities and Exchange Commission took enforcement action against three of his companies with unregistered ICOs and IPOs. At the time, the firms agreed to pay $486.6 million in fines, prejudgment interest of $17.6 million, and a civil penalty of $35 million combined.

The billionaire is reportedly a close-friend of former White House chief strategist Steve Bannon. Rising to prominence through real-estate and construction in China, he fled the country in 2014 after receiving information of his imminent arrest on charges of bribery, kidnapping, money laundering, fraud and rape. He has since lived in self-imposed exile in the U.S., sought asylum, and is a vocal critic of the Chinese Communist Party (CCP). However, several documents used by Guo to critique the CCP have been alleged to be forged. An Interpol red notice for his arrest has been reportedly active since 2017.

To defeat communism buy my coin

For the Chinese billionaire, “taking down the CCP” is a goal that neatly lines up with the promotion of crypto. In 2020, Guo founded the political movement “New Federal State of China” (NFSC) with the stated aim of overthrowing the CCP alongside the non-profit organization Himalaya Supervisory, which is related to the aforementioned cryptocurrency exchange.

Aside from educating viewers on the evils of communism, Guo also used official NFSC and Himalaya Supervisory branding to shill his followers about the purported benefits of his HDO and HCN coins:

“Himalaya Coin will crush Bitcoin in the snap of a finger if a certain country grants Himalaya Reserve or Himalaya Coin a visual banking license and a virtual banking exchange.”

In another “lecture” dated shortly before his arrest, Guo explained to viewers that the “U.S. and Communist China are fighting over the power to establish blockchain standards that will govern all digital currencies,” but the major takeaway is that the NFSC will be the one to emerge victorious in the struggle:

“In the end, people will have to use digital U.S. dollars, and then, the U.S. will be in charge of setting up the future blockchain standards. However, the U.S. has encountered a rival called the CCP. So when these two tigers are fighting, we [the NFSC] will end up being the winner.”

Guo claims to have invested $100 million into the NFSC movement. However, the source of funds is reportedly under investigation by the U.S. Federal Bureau of Investigation. The Chinese billionaire was arrested on Mar. 15 in New York and shortly afterward, his luxury apartment in Manhattan caught fire. It is not clear if the two incidents are related.

Chinese billionaire Guo Wengui explaining to followers how the NFSC will be the ultimate winner in a global battle between the U.S. and CCP for blockchain supremacy. (Youtube)
Guo explaining to followers, shortly before his arrest, how the NFSC will be the ultimate winner in a global battle between the U.S. and CCP for blockchain supremacy. (Youtube)

Do Kwon officially loses once highly publicized LUNC bet

In March 2022, South Korean Terraform Labs CEO and co-founder Do Kwon accepted two bets from cryptocurrency traders GiganticRebirth (GCR) and Algod, totaling $11 million, wagering that the price of Terra Luna (LUNC) would not be lower than $92.4 and $88 per token, respectively, by March 13, 2023. The bets resulted in a $22 million prize money pool, held in escrow by blockchain personality Cobie.

After LUNC’s price plummeted to near-zero in May 2022 as part of the $40 billion Terra Luna ecosystem collapse, Cobie paid out the bets, purchasing LUNC as a hedge in case its price recovered. However, Cobie’s hedge was reportedly lost when cryptocurrency exchange FTX filed for bankruptcy in Nov. 2022, freezing over one million creditors’ assets and nine million users’ deposits. The current status of the funds remains unclear.

Do Kwon listening intensely as convicted felon Martin Shkreli outlines why
Do Kwon listening intensely in a Twitch stream post-Terra collapse as convicted felon Martin Shkreli explains why “jail’s not that bad.” (UpOnly)

The U.S. Securities and Exchange Commission has since charged Terraform Labs and Kwon with “defrauding investors in crypto schemes,” while the FBI and Department of Justice began investigating the company’s collapse in March 2023.

If losing his nearly entire net worth in the LUNC implosion and being out an additional $11 million from the bet wasn’t enough, Kwon is also reportedly on the run from authorities in Serbia, a country with no extradition agreement with South Korea. Interpol issued a red notice arrest warrant for Kwon in September 2022 at the request of South Korean prosecutors, accusing him of fraud related to Terra Luna’s downfall. South Korean prosecutors have also been in Serbia in search of the blockchain executive since Feb. 2023.

Zhu Su’s spiritual journey through bankruptcy and Islam

Compared to the precarious situation faced by Do Kwon, Zhu Su, and Kyle Davies, both co-founders of the now-bankrupt Singaporean hedge fund Three Arrows Capital (3AC), appear to be doing quite well. Despite being on the run from creditors with a total claim of over $3.5 billion, the two have yet to face any criminal charges over their role in the 3AC bankruptcy that brought down themselves and major counterparties in the centralized finance space such as Voyager Digital and Genesis Global.

Liquidators claim that Davies and Su are located somewhere in Indonesia or United Arab Emirates, where foreign court orders are reportedly tough to enforce. Nowadays, Davies actively shares his views on trending financial stories via Twitter, while occasionally trying to solicit sympathy over the “frustrations” of 3AC’s current bankruptcy process.

Su is also active on Twitter, except his interests have turned from the material world to the much more sophisticated realms of philosophy, religion and, introspection. On Mar. 15, Su quoted Prophet Muhammud (PBUH), the founder of Islam, as follows:

“The Messenger of Allah, peace and blessings be upon him, said, There is no forbearance unless one has blundered, and there is no wisdom unless one has experience.”

Su previously made a similar reference to Islam on Nov. 27, 2022, writing that “Allah does not charge a soul except that which is within its capacity.”

Interestingly enough cryptocurrency and blockchain is currently a matter of intense controversy within Islam circles. Some Islamic scholars have labeled all cryptocurrencies and blockchain-related activity as haram (forbidden), making them prohibited under all circumstances. Others, such as Dubai’s crown prince Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, support the technology and he wants to incentivize at least 5,000 blockchain and metaverse companies to relocate to the United Arab Emirates by 2027.

Thailand’s $1B crypto sacrifice, Mt Gox final deadline, Tencent NFT app nixed: Asia Express

South Korea is throwing another $51 million at the metaverse, Mt. Gox saga is drawing to a close, Canaan BTC miner sales revenue plunges 60%.

Our weekly roundup of news from East Asia curates the industrys most important developments.

South Korea invests another $51M in metaverse tech

South Koreas plans for metaverse domination are gathering pace. A March 8 document prepared by the Ministry of Science and Information and Communication Technology (ICT), the National IT Industry Promotion Agency and the Korea Radio Promotion Association, says the three entities will invest a total of 27.7 billion Korean won ($21 million) in metaverse projects across 13 sectors such as healthcare, tourism and education. One example use case is about telemedicine in the metaverse:

Establish a virtual counseling space and provide mental health recovery and promotion services through expert psychological counseling, healing contents, and community activities.”

The same day, South Koreas Ministry of Science and ICT also announced the creation of a 40 billion Korean won ($30 million) metaverse fund to be operated by local investment management companies. It cited the need to incubate domestic metaverse-related companies to become big enough to compete with global companies through the expansion of business areas and scale.

The South Korean government is betting big on the development of VR (Korean Tourism Organization)
The South Korean government is betting big on the development of VR. Source: Korean Tourism Organization

Mt. Goxs final deadline for claims

Mt. Gox creditors have until April 6 to complete registration to receive repayment, trustees of the bankrupt Japanese cryptocurrency exchange announced on March 9. Mt. Gox was the biggest Bitcoin exchange in the world when it filed for bankruptcy in 2014, after discovering that 850,000 of its customers Bitcoin (BTC) had been stolen via discreet hacks and siphoning over a number of years. The exchange has since recovered around 200,000 BTC. The funds have been held in trust for the creditors, with 162,106 BTC ($3.49 billion) sitting in wallet addresses tracked by Token Unlock.

Over the years, the trustees, attorney Nobuaki Kobayashi and the Japanese Bankruptcy Courts have repeatedly extended the deadline for registration, likely due to the sheer volume of affected users located all around the world and the manual processing needed for every individual involved during such a legal procedure.

Everyone appears well and truly tired of the nine-year-long bankruptcy process and just wants their money back (or to move on to the next case in the judicial backlog). Kobayashi wrote that anyone who misses the deadline is out of luck:

“Please note that, in the interest of making the repayments to rehabilitation creditors as early as possible, unless there are unavoidable reasons, further extension of the Deadline will be difficult.

From one perspective the enforcing hodling could have been a blessing in disguise for some, as Bitcoin was worth around $580 at the time of Mt. Goxs collapse but is now worth more than $20K. Many users will likely see positive returns on investment, even accounting for the fact that the repayment is only a fractional recovery.

Tencent to shutdown NFT app

An in-app message posted on Chinese internet giant Tencents NFT platform Huanhe states that users will have until June 30 to file for a refund before the app goes permanently offline. Dubbed the first digital collectibles App in China,” Huanhe launched in August 2021 and featured both traditional and modern Chinese concept art, video, audio, photos and 3D models. However, Tencent halted all activity on the app on July 1.

Though the company did not explicitly state its reasons, some users have speculated that NFT sales volumes did not meet expectations. The app also didnt offer a secondary market where users could buy and sell collectibles, nor a feature that allowed users to gift their NFTs to others. On Tencents official app store, Huanhe has recorded 134,000 downloads since its inception.

Thai government sacrifices $1 billion to enhance crypto industry

Thailands cabinet has approved a plan to waive corporate income tax and value-added tax for companies that issue digital tokens for investment, according to a March 7 Reuters report. The decision incentivizes companies to raise capital using investment tokens in addition to more traditional methods such as debentures.

A Tencent Huanhe digital collectible. (8btc)
A Tencent Huanhe digital collectible. Source: 8btc

The Thai government estimates that there will be around 128 billion Thai baht ($3.71 billion) worth of investment token offerings over the next two years and the new measures will see it forgo around $1 billion in tax revenue. Cryptocurrencies have gained popularity in Thailand since the Securities Exchange Commission began regulating digital assets. Still, the countrys central bank and other regulators have banned the use of digital assets as a means of payment.

Canaans Bitcoin ASIC sales fall

On March 7, Chinese Bitcoin mining equipment manufacturer Canaan reported its fourth quarter and full-year 2022 financial results. During the final quarter of 2022, Canaan brought in 391.9 million yuan ($56.8 million) in sales, representing a decrease of 59.9% from the previous quarter. The firm attributed the decrease to the ongoing crypto winter.

For the full year, Canaans revenues decreased from 4.986 billion yuan ($715 million) in 2021 to 4.378 billion yuan ($635 million) in 2022.

Going forward, the company expects its total installed mining computing power to be around 5 exahash per second (EH/s) by the end of this quarter. In context, the Bitcoin network currently has a hash rate of around 250 EH/s, an all-time high.

Canaan has also established strategic partnerships with two data center companies, which are expected to provide stable and cost-effective hosting solutions for the companys expanding mining business. For the first quarter of this year, Canaan projects its total net revenues to slightly improve to 450 million yuan ($65 million) but cites continued challenging business conditions.

A Canaan Avalaon ASIC Bitcoin miner (eBay)
A Canaan Avalon ASIC Bitcoin miner. Source: eBay

$54B fund partner runs women-only DAO, LatAm blockchain gaming guild

Clara Bullrich helps run a $54B investment fund, a women-only DAO and she founded a gaming guild to teach gamers in Latin America play to earn.

Clara Bullrich must have cloned herself or possibly invoked dark forces that shouldnt be meddled with. Somehow, shes managed to cram about four careers into one life.

Her main gig is leading her own financial entity, AlTi, managing a whopping investment fund, which grew to $54 billion under management following a recent merger. Thats a big enough job in itself.

A member of Women in Blockchain, she also runs a women-only DAO, Komorebi, that concentrates on funding female and non-gender-specific projects.

Ive seen in crypto that theres very few women, and I really want to push that as much as I can, she says. For me, its always important to have skin in the game.

And if that wasnt enough, shes also the founder of a gaming guild, Ola Guild Games (OlaGG), that hopes to upskill the quarter of a billion mobile gamers in Latin America so they can boost their incomes using play-to-earn blockchain games. 

She tells Magazine she feels lucky to have been involved with cryptocurrencies, DAOs and the metaverse at this early stage.

My sons are nine and 11 and will live through the entire cycle of what blockchain and crypto are creating right now. And I feel super hopeful around that.

Hailing from Argentina, after studying in the United States and Ireland, she worked for a short time for the Spanish Santander bank in the United States. She didnt stay there long. Laboring in the stuffy, conventional world of traditional finance clearly does not float her boat. Her favorite word is disruptive.

Bitcoin is just money supported by math. I came across it about seven years ago. At first, I was very uncomfortable with that, then I thought: The big disruptions are the ones you should walk towards.

Read also
Features

Crypto is changing how humanitarian agencies deliver aid and services

Features

You dont need to be angry about NFTs

Disruptive innovation

After a short stint at Santander, she was headhunted by an Argentine tech company called Collective Mind, which grew rapidly. Then in 2000, she started a family office business for high-net-worth clients under the umbrella of Guggenheim Partners. In those days, family offices werent as prevalent as today.

Over 23 years, she expanded her operations from Latin America to other parts of the world. Three years ago, this fund management business became Alvarium Investment Advisors, managing over $20 billion in investments, then recently merged with two other companies to form Alvarium Tiedemann Holdings, AlTi, with over $54 billion under management.

Bullrich had some challenges persuading her clients to invest in disruptive technology, including Bitcoin, but first, she had to persuade her colleagues of the merits of investing in progress rather than simple money-making schemes. 

My discussions with my partners were very much around: We should be investing in tech with tech expertise, not financial expertise. 

Her intention was to back technology that would have beneficial effects in the longer term, rather than simply looking at a financial balance sheet.

She set up the Digital Assets Committee at Alvarium Tiedemann in 2019.

What you have to realize is that most people there are traditional investors, so the idea of crypto, blockchain, Web3, digital assets these were really foreign to them.

She continues, And so being able to start that committee has allowed me to educate traditional investors about the potential of digital assets and blockchain technology. She continues, I wanted to create that level of expertise to be able to understand trends, why certain disruptions make more sense than others.

She feels the mindset required is more technological and over a longer time span than in conventional finance. This led, in 2016, to her second company, which is called The Venture City.

Venture City
The Venture City is an accelerator to nurture innovative projects. Source: Venture City

The Venture City is an accelerator to nurture innovative projects, so it has the financial backing, expertise and support to reach its potential.

A major impetus behind TVC is to improve access to financial products and services. In some Latin American countries, up to 60%70% of people do not have bank accounts, restricting their ability to improve their situation. Bullrich sees TVCs investments as a means of combining technology and financial expertise with a beneficial social product.

We have already 100 companies who passed through the accelerator, and were actually starting Fund 3. So, we did Fund 1 with $52 million, Fund 2 with $75 [million], and were going in 2023 with the launch of Fund 3. It was an amazing experience. Because very early on, we were talking about community and creating a lot of events and educational sessions around the products.

Here are some examples of the many projects The Venture City has invested in:

Sturdy Exchange: Sturdy.Exchange is an NFT-based Web3 token in the Flow ecosystem. It aims to decentralize music distribution. It is a platform for artists, musicians and entertainers to reach their audiences with a new form of ownership and utility using NFTs. 

Belo: A wallet app that uses Argentine pesos and crypto with a DeFi yield platform built in so users can receive regular returns. It aims to be an accessible cryptocurrency introduction.

Gamer Safe: This is an app to make online multiplayer gaming safer and more pleasant, by removing cheaters, fake and duplicated accounts, and policing toxicity and dishonesty in games. 

Women in Blockchain

She joined Women in Blockchain (WiB) last year and hopes to develop womens skills, opportunities and aspirations in the cryptocurrency sector.

We are providing that platform where women can meet and be part of those conversations and move forward in terms of education, she says. We can become connectors of people needing a certain kind of expertise and people with that expertise can link up with those who need it.

So, WiBs a completely different animal from my Venture City, which is doing that deep dive looking for companies and deciding what companies the fund is going to invest in.

Korembri
Komorebi is a DAO aimed at improving the representation of female and non-binary crypto folk. Source: Komorebi

Diversity in DAOs

Komorebi is a poetic, almost untranslatable, Japanese expression that describes sunlight filtering through trees. It is also a DAO on the Syndicate Protocol, dedicated to increasing diversity and breaking down barriers to entry in the blockchain space.

The thought process behind this was that women-led startups receive only 2.3% of venture funding but perform 63% better than investments with all-male founding teams, according to Venture Capital firm First Round.

Read also
Features

Lushsux: A decade of ass-whoopin and skullduggery in a single NFT

Features

2023 is a make-or-break year for blockchain gaming: Play-to-own

My involvement with Komorebi allows me to support and amplify the voices of women in tech and finance. Im grateful I didnt have as many hurdles of being a woman in finance, but I encountered them more in technology. So, whats crucial for me here is being able to find an opportunity to help women find their voice in blockchain and crypto.

She says adding more diversity to the crypto and blockchain world is a win-win for everyone.

Im not saying womens voices should be dominant over men; its not one or the other. What I truly believe is having diverse perspectives and experiences in decision-making leads to better outcomes, and my role is to provide an additional platform for women to showcase their passion, their vision.

When Bullrich finds a project that interests her team, she brings it to the DAO and everyone votes on whether to back it or not. The DAO is a very interesting angle for allowing people to be part of something bigger, rather than just putting money into it.

Final boss: Making a living in a poor country with P2E

Yield and Ola Guild Games: These are DAOs. Yield Guild Games (YGG) was founded by Gabby Dizon and Beryl Li in 2018 to involve Filipino players in gaming and cryptocurrency. The players can supplement their incomes with P2E winnings. OlaGG is a subDAO, which expands the successful concept geographically to the Hispanic market: Spain, Latin America outside Brazil and Hispanics in the United States.

The idea of Ola Guild Games is to create social and financial inclusion for the Hispanic Community through gaming. Its main platform is Axie Infinity, but there are options to engage with other P2E game systems as well. The concept took off in the Philippines during the pandemic, with users supplementing their tightened budgets or even multiples of the average wage with P2E gaming.

It seems like a good fit as one-third of Hispanic speakers income is $1.90 per day, which the United Nations defines as extreme poverty. Nearly half have no access to banking or financial products. However, more than 58% of the population in Latin America play mobile games, which equates to a user base of over 273 million people.

So, the idea of Ola is how can we engage with people, teach them, educate them on these new tools for Web3 to really create that financial inclusion. It might be through games, and that will be play-to-earn. 

The Guild is also creating educational programs learn-to-earn where users receive payment for educational achievements with the intention of having an employment structure, for example, in games development, to move on to when trained.

Conventional western aid purveyors will probably have heart attacks when they find developing countries blockchain-gaming their way up the development ladder, instead of subsisting on aid packages with strings attached.

While it does have a huge and clearly defined audience, the project is still in its early stages.

Co-founding Ola and working with my team in Latin America represents my desire to give back and provide opportunities in a market that does not have access to the same resources as we have here in the U.S., she says. I want to provide all that education Im seeing here on Web3, structuring DAOs, and help them adopt those technologies and bring it to life. Its not just a nice to have, its a must-have for Latin America.

By sharing my experiences and knowledge of Web3 and decentralized organizations, I hope to bring positive change to my home country [Argentina].

The ‘soft shell taco method’ of becoming a hot new NFT artist — Terrell Jones, NFT Creator 

NFT artist Terrell Jones developed a unique method to attract attention that took him from stacking boxes for FedEx to his own Sotheby’s auction.

Artist: Terrell Jones, Michigan
Date minted first NFT: March 28, 2021
Which blockchains? Ethereum, Tezos

Influenced by classic gangster films, Terrell Jones has a distinctive style that captures imagination and nostalgia. He is about to auction a second piece at Sothebys and has a patented soft-shell taco method to garner the attention of notable collectors. 

Who is he?

From childhood aspirations of being a cartoonist to now being one of the hottest new NFT artists capturing the attention of elite collectors and Sothebys, Terrell Jones is well into his launch trajectory.

Born in Ann Arbour, Michigan, Jones has a visually distinct style. But it is his ability to tell stories through his art such as the collections Evil in Color and Good and Evil that sets him apart. Just in the last two months, Jones has had some of his highest-ever sales, and there is growing interest in his work.

A big thing for me has always been to try to connect my stories and images with a deeper part of everyone. With the way things are moving now and with so many artists, people are probably seeing more art within a day than you probably would have seen within a year. Its been a big shift, Jones says. 

Because we can see so much art, I wanted to have my stuff stick to people in a deeper sense. I want them to remember. 

In a similar vein to Grant Yun (featured last week in NFT Creator), Jones is a big fan of drawing on evocative memories and a sense of longing for the past.

Im definitely trying to connect the viewers and collectors of my art with nostalgia. A lot of the music I listen to is for nostalgic reasons. A lot of the movies and shows I watch are for nostalgic reasons. I lead with nostalgia in a sense with my work, stated Jones. 

Especially with the Evil and Color series, a lot of it does come from old gangster films or old crime films. Theyve been super influential for me and I was very much into them. Im talking about The Sopranos, Goodfellas, Scarface and all those types of classics. 

Despite all of the recent interest, Jones remains firmly grounded. 

I can remember times where people didnt care about what I was doing or what I was minting. Recent times have been a huge contrast to that, and its a big change. Im grateful for it. 

The Getaway
The Getaway, by Terrell Jones, 2022. The Getaway title is a play on the word getaway meaning a vacation but also meaning an escape. Depending on the viewers perspective, the Devilles can be on a Miami vacation or on the run because of their villainous deeds. Source: OpenSea

Influences

Jones singles out American visual artist George Condo as his No. 1 influence. 

Im a fan of a lot of artists, but George Condo is my favorite for sure. A lot of my early work was pretty much Condo-like copies. 

I also have to give shoutouts to Edward Hopper (American realist painter and printmaker), Hiroshi Guy (Americano pop style painter), David Hockney (English painter, printmaker and photographer), Phil Hale (American figurative painter), Yue Minjun (Chinese contemporary artist). 

Youve also got Takashi Murakami and Mpcoz who are doing amazing things in NFTs.

Personal style

Jones style is simplistic yet fascinating. It takes you to places in your mind and draws out memories you may not have thought of for years or even decades. 

Gamble With Your Life
Gamble With Your Life, by Terrell Jones. Source: SuperRare

I describe my style as a kind of a blend of pop art from around the 80s. I was definitely inspired by that a lot. Pop-Precisionism is how I like to speak about it its a sub-genre in a sense.

Im working to capture that feeling of nostalgia and that feeling of imagination, like when kids think anything is possible. I want to attempt to reignite that spark in us as adults now. 

In true Jones style, the devil is very much in the details with a number of his creations. 

I come from a religious background where angels and devils are a thing. Its interesting because I think they exist but for me they dont look or act necessarily anything like we think of them. For example, angels are like angelic figures with wings; theyre perfect, and theyre glowing. And with the devils, they are these red figures with the horns and all that stuff. I dont feel like either of those necessarily look like that if they do exist, says Jones. 

His Joy and Wonder series led to a collaboration with notable NFT project Aku Akutars, founded by former Major League Baseball player Micah Johnson. 

The Akutars collaboration with Micah was great. Before I was connected with Micah, I had lots of people telling me that my space boy character reminded them of the Akutar character. It was an easy yes for me when Micah reached out. I had already been thinking of different concepts and pieces. Really fun to be a part of.

Space Boy
Space Boy: The Voyage, by Terrell Jones. Source: SuperRare

Notable sales

NFT artists to watch out for?

Bringing a massive smile to his face, Jones informs us of three artists we should all be looking into. 

Kodak LDN Animator from Nigeria

Hes a Nigerian artist Ive been aware of for a long time. I think I might have been the first person to buy a piece from him. Hes a super talented animator, and I would love to work with him at some point, Jones says.

I really believe hes one of the greatest animators Ive seen. His work is not like anything else Ive seen whether in the NFT space or out.

Niah Artist from Australia

Theres certain artists where I just cant nail how they created a piece of art, and Niah is one of those. Shes one of those artists where Ill zoom in on her pieces and wonder how she got certain parts so clear even though its so intricate. Niah is just super talented.

Rozwell Creator

I described him as our Steve Jobs. Hes insane. The project that hes about to come out with I believe is going to change a lot of stuff for the NFT space. I think that it will definitely start like a whole new meta. People should definitely keep an eye out for that.

Process

With inspiration recently coming from classic crime and gangster films, Jones creativity is often sparked by watching classic films, and he uses the tool Procreate to help bring his creativity alive. 

When Im watching those movies, Ill start to think of ideas and put them into my notes. Other times, Ill be doing the most random things, and Ill just have an idea pop to mind. From there, Ill start to sketch it out. Ive always said, If I have a good sketch, then I can probably finish a piece in a day or two, Jones shares. 

Following the sketch and if Im happy with it Ill start to block out the colors, and from there, I work in a way where I work on individual characters or crucial aspects of a piece like a car separately. I try to work on separate files and eventually combine all the files. Part of that process is due to file size and layer constraints with Procreate, but overall, I think it makes my art cleaner. 

Soft-shell taco method: Attracting collectors

VincentVanDough was the notable NFT collector whose interest helped Jones rise up the ranks. He credits what he called his soft-shell taco method of subtly getting his art in front of the right people, in contrast to the hard-shell taco method of spamming links to everyone and hassling collectors via DMs.

[Its] more on trying to find ways to put your art in front of peoples eyes in a way that isnt forcing it on them. Youre kind of making them run into your art by accident on purpose, says Jones. 

I kind of soft-shell-tacod Vince at a certain point, and he was made aware of me. He dug into my art a bit more and ended up matching my all-time high sale at the time by purchasing my Birthday Boy piece in late 2021. 

Since then, Vince has helped me go on runs with some of his SuperRare purchases. Were super friendly and talk a lot. Even though hes a busy person, hell often have different advice for me or hell see different things and offer perspective. Im definitely grateful for him. 

The Dead of Night
The Dead of Night, by Terrell Jones. Source: OpenSea

Links: 

Lynkfire: https://lynkfire.com/terrelldom 

Twitter: https://twitter.com/terrelldom

Become a hot new NFT artist via the ‘soft shell taco method’ — Terrell Jones, NFT Creator 

NFT artist Terrell Jones developed a unique method to attract attention that took him from stacking boxes for FedEx to his own Sotheby’s auction.

Influenced by classic gangster films, Terrell Jones has a distinctive style that captures imagination and nostalgia. He is about to auction a second piece at Sothebys and has a patented soft-shell taco method to garner the attention of notable collectors.

Born in Ann Arbour, Michigan, Jones has a visually distinct style. But it is his ability to tell stories through his art such as the collections Evil in Colour and Good and Evil that sets him apart. Just in the last two months, Jones has had some of his highest-ever sales, and there is growing interest in his work.

A big thing for me has always been to try to connect my stories and images with a deeper part of everyone. With the way things are moving now and with so many artists, people are probably seeing more art within a day than you probably would have seen within a year. Its been a big shift, Jones says. 

Because we can see so much art, I wanted to have my stuff stick to people in a deeper sense. I want them to remember. 

In a similar vein to Grant Yun (featured last week in NFT Creator), Jones is a big fan of drawing on evocative memories and a sense of longing for the past.

Im definitely trying to connect the viewers and collectors of my art with nostalgia. A lot of the music I listen to is for nostalgic reasons. A lot of the movies and shows I watch are for nostalgic reasons. I lead with nostalgia in a sense with my work, stated Jones. 

Especially with the Evil and Color series, a lot of it does come from old gangster films or old crime films. Theyve been super influential for me and I was very much into them. Im talking about The Sopranos, Goodfellas, Scarface and all those types of classics. 

Despite all of the recent interest, Jones remains firmly grounded. 

I can remember times where people didnt care about what I was doing or what I was minting. Recent times have been a huge contrast to that, and its a big change. Im grateful for it. 

The Getaway
The Getaway, by Terrell Jones, 2022. The Getaway title is a play on the word getaway meaning a vacation but also meaning an escape. Depending on the viewers perspective, the Devilles can be on a Miami vacation or on the run because of their villainous deeds. Source: OpenSea

Influences

Jones singles out American visual artist George Condo as his No. 1 influence. 

Im a fan of a lot of artists, but George Condo is my favorite for sure. A lot of my early work was pretty much Condo-like copies. 

I also have to give shoutouts to Edward Hopper (American realist painter and printmaker), Hiroshi Guy (Americano pop style painter), David Hockney (English painter, printmaker and photographer), Phil Hale (American figurative painter), Yue Minjun (Chinese contemporary artist). 

Youve also got Takashi Murakami and Mpcoz who are doing amazing things in NFTs.

Personal style

Jones style is simplistic yet fascinating. It takes you to places in your mind and draws out memories you may not have thought of for years or even decades. 

Gamble With Your Life
Gamble With Your Life, by Terrell Jones. Source: SuperRare

I describe my style as a kind of a blend of pop art from around the 80s. I was definitely inspired by that a lot. Pop-Precisionism is how I like to speak about it its a sub-genre in a sense.

Im working to capture that feeling of nostalgia and that feeling of imagination, like when kids think anything is possible. I want to attempt to reignite that spark in us as adults now. 

In true Jones style, the devil is very much in the details with a number of his creations. 

I come from a religious background where angels and devils are a thing. Its interesting because I think they exist but for me they dont look or act necessarily anything like we think of them. For example, angels are like angelic figures with wings; theyre perfect, and theyre glowing. And with the devils, they are these red figures with the horns and all that stuff. I dont feel like either of those necessarily look like that if they do exist, says Jones. 

His Joy and Wonder series led to a collaboration with notable NFT project Aku Akutars, founded by former Major League Baseball player Micah Johnson. 

The Akutars collaboration with Micah was great. Before I was connected with Micah, I had lots of people telling me that my space boy character reminded them of the Akutar character. It was an easy yes for me when Micah reached out. I had already been thinking of different concepts and pieces. Really fun to be a part of.

Space Boy
Space Boy: The Voyage, by Terrell Jones. Source: SuperRare

Notable sales

NFT artists to watch out for?

Bringing a massive smile to his face, Jones informs us of three artists we should all be looking into. 

Kodak LDN Animator from Nigeria

Hes a Nigerian artist Ive been aware of for a long time. I think I might have been the first person to buy a piece from him. Hes a super talented animator, and I would love to work with him at some point, Jones says.

I really believe hes one of the greatest animators Ive seen. His work is not like anything else Ive seen whether in the NFT space or out.

Niah Artist from Australia

Theres certain artists where I just cant nail how they created a piece of art, and Niah is one of those. Shes one of those artists where Ill zoom in on her pieces and wonder how she got certain parts so clear even though its so intricate. Niah is just super talented.

Rozwell Creator

I described him as our Steve Jobs. Hes insane. The project that hes about to come out with I believe is going to change a lot of stuff for the NFT space. I think that it will definitely start like a whole new meta. People should definitely keep an eye out for that.

Process

With inspiration recently coming from classic crime and gangster films, Jones creativity is often sparked by watching classic films, and he uses the tool Procreate to help bring his creativity alive. 

When Im watching those movies, Ill start to think of ideas and put them into my notes. Other times, Ill be doing the most random things, and Ill just have an idea pop to mind. From there, Ill start to sketch it out. Ive always said, If I have a good sketch, then I can probably finish a piece in a day or two, Jones shares. 

Following the sketch and if Im happy with it Ill start to block out the colors, and from there, I work in a way where I work on individual characters or crucial aspects of a piece like a car separately. I try to work on separate files and eventually combine all the files. Part of that process is due to file size and layer constraints with Procreate, but overall, I think it makes my art cleaner. 

Soft-shell taco method: Attracting collectors

VincentVanDough was the notable NFT collector whose interest helped Jones rise up the ranks. He credits what he called his soft-shell taco method of subtly getting his art in front of the right people, in contrast to the hard-shell taco method of spamming links to everyone and hassling collectors via DMs.

[Its] more on trying to find ways to put your art in front of peoples eyes in a way that isnt forcing it on them. Youre kind of making them run into your art by accident on purpose, says Jones. 

I kind of soft-shell-tacod Vince at a certain point, and he was made aware of me. He dug into my art a bit more and ended up matching my all-time high sale at the time by purchasing my Birthday Boy piece in late 2021. 

Since then, Vince has helped me go on runs with some of his SuperRare purchases. Were super friendly and talk a lot. Even though hes a busy person, hell often have different advice for me or hell see different things and offer perspective. Im definitely grateful for him. 

The Dead of Night
The Dead of Night, by Terrell Jones. Source: OpenSea

Links: 

Lynkfire: https://lynkfire.com/terrelldom 

Twitter: https://twitter.com/terrelldom