Columns

Web3 Gamer: Apple to fix gaming? SEC hates Metaverse, Logan Paul trolled on Steam

Apple finally makes a play for gamers, SEC takes aim at Metaverse tokens, CryptoZoo trolled on Steam, memestock lord is GameStop’s new CEO.

Gaming on Macs to suck less

Is Apples reign as the worst platform for gaming coming to an end?

Amid all the hype about their long-rumored VR/AR headset, which is slated for release in early 2024 (queueing outside the Apple Store starts in October), there are other signals that Apple might finally be sorting out its subpar gaming offering. Its also releasing software that will make it easier to play Windows games on Mac.

Gaming on a Mac really sucks. Lots of games particularly indie and early release ones are not compatible. Keyboard mapping can be funky. To this day, I have been unable to attach special tackles to my fishing rod (no, that is not innuendo) on the Mac edition of Stardew Valley.

With VR games, its even worse. If you want to spend hours watching YouTube videos, you can get most VR headsets to somewhat work with a Mac. But right now, the only one that is really officially compatible seems to be the HTC Vive.

A man uses Apple Vision Pro
Are headsets the future of surfing the web? (Apple)

The downside of an Apple-native product is it comes with an Apple price tag: a hefty $3,499. Its hard to justify that much money for exploring the empty, laggy metaverse when you could spend a few months traveling and seeing some of the coolest places in the actual world for the same price.

The endless legal wrangling over in-game virtual assets

The Sandbox, Decentraland and Axie Infinitys tokens SAND, MANA and AXS, respectively made cameo appearances in the United States Securities and Exchange Commissions June 5 complaint against crypto exchange Binance.

The complaint against the crypto exchange contains 13 charges, including that Binance sold unregistered securities. The SEC counted SAND, MANA and AXS among such securities meaning it considers them to be types of investments, not currencies.

Speaking at the Non Fungible Conference in Lisbon, Portugal on June 7, The Sandbox chief operating officer Sebastien Borget said that his team was aware of the litigation but that they are not themselves subject to any.

We do not necessarily agree with the characterization thats been put in that litigation, including the qualification of SAND as a security there, he said, adding that it would not change the companys day-to-day business.

Since the announcement, eToro has said it will delist several tokens, including MANA, for US-based customers.

Making in-game currencies securities is a new twist in the mess that is bridging the gap between virtual gaming currencies and real-life money.

Its not a new thing. The debate over the legal status of in-game currencies precedes even the invention of Bitcoin. Second Life got its first millionaire in 2006, and the question of who owes what to who has continued, exacerbated by the fact that many developers and creators already feel they pay large taxes” to platforms.

Yet previous conversations have mostly been centered around making sure those that sell virtual assets or developer games on platforms are taxed correctly, not about investment and likely because Web2 digital currencies act more like, well, currencies.

At last check, the U.S. Internal Revenue Service doesnt seem to be too concerned with digital currencies if they dont leave a game.

Read also
Features

Cryptocurrency trading addiction: What to look out for and how it is treated

Features

Best and worst countries for crypto taxes plus crypto tax tips

Avalanche wants to help Web2 gaming leaders go Web3

The quest by blockchains to convert gaming companies to the dark side continues with Ava Labs launch of Arcad3, a program to help Web2 gaming giants launch powerful blockchain deployments.

Ava Labs, which has supported gaming companies in building out more than ten gaming subnets on Avalanche and over 100 Web3 games, will work with teams on game monetization, marketing, user acquisition and risk management.

Among the first companies taking part are Tokyo-based firms Gumi and GREE (not to be confused with the Chinese aircon giant GREE Electrics), as well as Shrapnel, DeFi Kingdoms and Gunz Chain by Gunzilla.

Shrapnel
The team behind Shrapnel is among those taking part in the program. (Shrapnel/Avalanche)

GREEs senior vice president for metaverse, Eiji Araki, said that he believed the program would help the company stay ahead on Web3 gaming and develop relationships with the studios who are experimenting in and building the space. Its currently working on its first Web3 game, Project INCURSION.

I cant share any details other than the project code yet, but it will be a breakthrough title that successfully combines our nearly 20 years of mobile game development knowledge with the new essence of Web3, he added in a statement.

GameStops CEO replaced by meme stock trading billionaire

So long, Matt Furlong.

The GameStop CEO and former Amazon exec was axed on June 7 following the end of his 24-month contract with the gaming retailer. During that time, he oversaw GameStops transition from a primarily brick-and-mortar retailer into a more internet-focused firm.

Ryan Cohen will replace Furlong. Cohen made his fortune founding online pet supplies retailer Chewy but is perhaps better known for his involvement with meme stocks. He successfully rallied people to invest in companies like Bed, Bath and Beyond and GameStop itself, causing their stock prices to skyrocket. Critics say hes pumping and dumping.

He joined the board of GameStop in January 2021, became chairman of the board that same year and owns around 12% of the company.

Gamestop
Ryan Cohen is the new CEO of GameStop (Ryan Cohen/Twitter)

It seems much of GameStops subsequent forays into crypto came from Cohen. In February this year, it inked a deal with Immutable to build out GameStops NFT marketplace, due to debut later this year.

Read also
Columns

Socios boss goal? To knock crypto out of the park

Features

Safe Harbor, or Thrown to the Sharks by Voatz?

Hot take: Crypto-themed games on Steam

Given a lack of interesting Web3 games that have landed on my desk over the past few weeks, lets talk about non-blockchain-based games that are about crypto.

Steam may not allow crypto games, but it can do little about trading simulators and Bitcoin mining tycoon RPGs. None are hits. Most seem tongue-in-cheek.

Take Coin Invaders, for instance, which tells players they must save Bitcoin by destroying altcoins. Its basically Space Invaders with extra steps, notes one reviewer.

A promotional still from the game Coin Invaders on Steam.
Coin Invaders is one of several crypto-themed games on Steam. (Steam)

Or perhaps youll enjoy Crypto is Dead, in which an attack has crippled the world economy and physical currency has returned. Its up to you to determine which bills are genuine and which are fake. Gripping stuff.

Then you can choose from the half-a-dozen-odd mining tycoon simulators, which require you to build mining rigs and businesses to cash in on cryptocurrency to varying degrees of complexity. One version even has a simplified edition for kids.

But perhaps the award for most amusing crypto-themed non-crypto game goes to CryptoZoo, which came out this February. I know what youre thinking, and the answer is no: Logan Paul hasnt yet made good on his promise of reviving the zombie project that earned him a whole series on crypto sleuth Coffeezillas YouTube channel.

Instead, the task of creating a CryptoZoo game was taken up by Rye Bread Games, who describes themself on Steam as a trader who makes games for fun.

A promotional still of the game CryptoZoo
Logan Paul getting trolled on Steam is an adage to the old saying, “If you want something done, do it yourself. (Steam)

According to its deck, CryptoZoo is the best CryptoZoo on the market the best of its kind the best there ever will be

It may not involve NFTs, but at least players are getting their long-awaited chance to breed animals in scientifically impossible pairings.

Read also
Features

Retire early with crypto? Playing with FIRE

Features

Joe Lubin: The truth about ETH founders split and ‘Crypto Google’

Other Stuff

Heroes of Mavia will release the first phase of its Beta game for Land NFT owners on June 30. The larger community will be able to play the game in the second phase from Sept 1 to Oct 31.

Amazons Prime Gaming partnerships with Web3 companies continue. Its gearing up for another deal with Mythical Games Blankos Block Party, whereby Prime members will be able to claim exclusive bundles for use in the game.

Ahead of the expected launch of Otherside: Legends of the Mara this summer, Yuga Labs is ramping up the merch machine with KodaPendants for holders of Otherside Kodas and Vessels. The pendants are the first relic in the Otherside Relics by Gucci collection.

Korean crypto contagion, Bank of China on Ethereum, HK’s exchange red carpet: Asia Express

Hong Kong lays out welcome mat for exchanges, Korean crypto lender contagion, Do Kwon banged up abroad, Bank of China’s Ethereum debt note.

Hong Kong lays out the red carpet for crypto exchanges

While some jurisdictions (cough: America) have adopted a regulation-by-enforcement approach toward crypto, others are doing the opposite. According to a June 15 report from the Financial Times, the Hong Kong Monetary Authority is pressuring major financial institutions to accept crypto clients. But its not just regulators laying down a red carpet to boost the special administrative regions Web3 industry. For example, Johnny Ng Kit-Chong, a member of the Legislative Council of Hong Kong, wrote on June 10:

“There have been a lot of news about international virtual asset exchanges in the past two days. I send forth an invitation to welcome global virtual asset exchanges, including @coinbase, to come to Hong Kong, apply for a compliant exchange, and negotiate a listing plan. I am willing to provide assistance!”

Similarly, Joseph Chan Ho Lim, Hong Kong’s under-secretary for financial services and the treasury, revealed in an interview that the Hong Kong Monetary Authority has conducted public consultations on the launch of stablecoins and is in the process of establishing a regulatory framework by the end of the year. “Hong Kong will continue to support the development of the industry in the future and welcomes the industry and talents to come to the SAR,” the politician said.

The Hong Kong Web 3.0 Festival gallery hall (Twitter)
The Hong Kong Web3 Festival gallery hall (Twitter)

On June 1, Hong Kong Securities Regulatory Commission issued regulations stipulating the requirements for cryptocurrency exchanges to apply for a license to operate in Hong Kong. For regulated trading platforms, a license application must be submitted to the Securities Regulatory Commission within nine months, or before Feb. 29, 2024. If not, their business in Hong Kong must be terminated before May 31, 2024.

Bank of China mints debt notes on Ethereum

On June 12, BOCI, the investment banking subsidiary of Bank of China, revealed the tokenization of 200 million Chinese yuan ($28 million) in digitally structured notes on the Ethereum blockchain. The move is reportedly the first act of a Chinese financial institution tokenizing a security in Hong Kong. The notes are governed by both Hong Kong and Swiss law as per their origination by the Swiss investment bank UBS. Ying Wang, the deputy CEO at BOCI, commented:

“Working together with UBS, we are driving the simplification of digital asset markets and products, for customers in Asia Pacific through the development of blockchain-based digital structured products. We are encouraged by the evolution of Hong Kong’s digital economy and are committed to promoting the digital transformation.”

Previously, UBS had issued a $50 million tokenized fixed-rate note in December 2022. Meanwhile, the government of Hong Kong issued an 800 million Hong Kong dollar ($100 million) tokenized green bond on Feb. 16, underwritten by four banks and priced with a yield of 4.05% per annum.

Do Kwon: In and out of jail

On June 15, The High Court of Montenegro in Podgorica ordered Terraform Labs CEO Do Kwon and chief financial officer Han Chang Joon back to jail pending extradition proceedings to South Korea for charges relating to their role in the $40 billion collapse of the Terra Luna ecosystem.

Earlier this month, Kwon and Joon were released on 400,000 euros bail each in their ongoing passport fraud case after a Montenegrin Basic Court dismissed an appeal by prosecutors.

Their brief period out on bail was not a happy time either. During their respite from prison, South Korean prosecutors announced they would apply to freeze Kwon and associates $13 million held in Swiss bank accounts. A new hearing on charges of falsifying documents is scheduled for June 16 in the same Basic Court.

Do Kwon
Do Kwon faces a long stretch in jail in a number of countries.

According to local sources, Kwon and Joon will be detained for a period of six months as the court decides on their extradition case. Kwon and Joon also face extradition to the U.S. on 11 charges relating to fraud, breach of trust, and embezzlement. 

And if that wasnt enough, there is yet another legal proceeding against Kwon. On June 16, Kwon will be questioned by the Special State Prosecutors Office for a letter he sent from detention to government officials, disclosing his connections with the leader of the Europe Now Movement (PES), Milojko Spaji.

Read also
Features

Working with the Hydra: Providing Services to Decentralized Organizations

Features

DeFi abandons Ponzi farms for real yield

According to the country’s National Security Council, Kwon and Spaji have been friends for five years, and last met in Belgrade in December 2022. Investigators claim there is evidence of financing the PES campaign from Kwon’s laptop. If convicted, Kwon not only faces further jail time in Montenegro but could also serve up to 40 years in a South Korean prison, and even more jail time potentially awaits in the U.S.

Korean blockchain firms daisy chain contagion

On June 14, South Korean yield platform Haru Invest filed a criminal complaint against its consignment operator, B&S Holdings, alleging “fraudulently provided management reports containing false information.”

Haru had paused deposits and withdrawals the day before, stating, “We have discovered through our internal inspection process that certain information provided by a consignment operator was suspected to be false.” Previously, concerned investors took pictures of allegedly empty corporate offices and accused the firm of orchestrating a “rug pull,” which Haru says is inaccurate.

Photo allegedly showing empty Haru Invest corporate offices after the announcement. (Telegram)
Photo allegedly showing empty Haru Invest corporate offices after the announcement. (Telegram)

The move immediately affected South Korean Bitcoin lending firm Delio, which quickly announced the temporary suspension of customer withdrawals “in order to safely protect the assets of customers currently in custody,” citing issues at Haru Invest. Delio is one of the largest such entities in South Korea, holding an estimated $1 billion in Bitcoin, $200 million in Ether and $8.1 billion in other altcoins.

A curious commentary regarding the matter came from Jun Du, the co-founder of cryptocurrency exchange Huobi Global, who wrote: 

“With the detonation of Delio, the thundering of [crypto] lending platforms is basically over.”

However, Du warned that contagion related to centralized trading platforms, which started with FTX, is just the beginning. “Not only the newcomers are confused, but also the OGs in the industry. When will the thundering of the black box of centralized crypto entities end?” the former blockchain executive asked, while also expressing his doubts on whether the industry will witness a “slump or be “ushered into a new bull market” after such issues are resolved.

Last year, Huobi co-founders Jun Du and Leon Li reportedly sold 100% of their stake in the exchange to an entity controlled by Chinese blockchain personality and Tron founder Justin Sun. The latter claims that the exchange is now profitable after a period of reorganization, which by the way, included crushing an employee revolt. 

‘Holy shit, I’ve seen that!’ — Coldie’s Snoop Dogg, Vitalik and McAfee NFTs: NFT Creator

NFT art pioneer Coldie creates crypto culture time capsules about Buffett, Buterin and McAfee — and writes lyrics for Snoop Dogg.

Coldie is a real one. Best described as a mixed media artist, the Californian resident is a true OG of the NFT scene, with his work dating back to 2018, including the iconic themed Decentral Eyes, Sellout and, more recently, a collaboration with Snoop Dogg. 

His distinct 3D stereoscopic work jumps off the screen, and, similar to the likes of Josie Bellini and Trevor Jones, Coldie leans into crypto culture the good, the bad and everything else in between. 

Decentral Eyes Vitalik Buterin Variant 02 by Coldie
Decentral Eyes Vitalik Buterin Variant 02 by Coldie (SuperRare)

Art is history. Its visual history. As I got deeper into the crypto culture on my journey, I was trying to be somewhat of a historian of the time, creating pieces that were contextual to what was going on, whether it was Vitalik [Buterin] or John McAfee. Or later on, [Edward] Snowden and [Warren] Buffett. To me, it was like a time capsule I was trying to create in real-time. 

When I look back to 2018, I remember Andreas Antonopoulos doing speaking tours and McAfee talking about eating his junk. That was amusing to me, so it made it easy to make art about. It was a lot of fun. 

Coldie says it didnt take long to understand the basic fundamentals of NFTs and blockchain technology. Then he discovered you could put art on it.

Then the whole unlock of royalties and provenance. Those two things alone are revolutionary. I didnt know if it was going to hit or not, but I felt it was going to give digital artists a chance, and if collectors could understand it, too, then there was a viable chance that it could take off, says Coldie. 

Paying homage to other early motion experimenters, Josie Bellini and Trevor Jones, Coldie also emphasized the impact of Beeples NFTs. 

Since Beeple came in, theres been so much stuff popping up. That was a major inflection point where there was a lot more motion graphics than the early days where it was more like animated GIFs. Today, theres more long-form storytelling. I guess its just an evolving space. 

Proof of Work Variant 1 by Coldie.
Proof of Work Variant 1 by Coldie (SuperRare)

Personal style

Coldie pioneered 3D stereoscopic work, and the iconic Coldie signature is instantly recognizable. 

I consider myself a mixed media artist, but its collage art. Im always searching for the illusion of depth in my art. Ill be layering things but then taking it from the flat plane and then spacing it out so you can get a depth.

A lot of my early stuff I did, I did things with 3D glasses, but when I came into the NFT world, most people didnt have 3D glasses at their computer. So, I kind of evolved my art into 3D animated motion to show people the movement without them having to put the glasses on. 

Just two weeks ago, Coldie did a collaboration drop with ClickCreate titled Flow State, which sold out 180 pieces as a relatively inexpensive entry to collecting Coldie art (between 0.042 ETH and 0.069 ETH), but it was a mad dash to the finish line with an impending deadline. 

I spent about four hours and retooled the whole thing. Its like a puzzle, you know, so its always evolving, but with a deadline, its great because you have to get it done. This allows for a kind of loose and organic result, says Coldie. 

Decentral Eyes Dogg

In the mad celebrity rush to get a piece of the NFT action in 2021 and early 2022, many athletes, musicians and entertainers fell on their faces, damaging their reputations in the process by deploying misguided cash grabs from fan bases. 

There were, however, a handful of celebrities who got it, and one of those was rap legend Snoop Dogg. Snoop and his inner circle, including his son, Champ Medici and manager Nick Alder, have been big proponents of Web3 culture. 

When Coldie was put in touch with Snoop, they vibed, and their values aligned, and as a result, the Decentral Eyes Dogg collaboration was born in November 2021. After some intense bidding on SuperRare, it sold for a staggering 188.8 ETH ($754,300) on Dec. 4, 2021. 

Snoop wanted to do a one-of-one piece of art, and I had got in touch with them it was a very copacetic relationship. To that point even back then, there had been cash grabs with celebrities who just wanted to get a million dollars and leave, Coldie stated. 

I told Snoop how I work and wanted none of what had happened with other celebrities previously, and he was totally cool with it. I did the animation in the piece and ended up writing the lyrics for the audio component of the artwork as well. When I look back, it was crazy, what an opportunity that I got to write lyrics for Snoop Dogg. 

It was a great way to get my artwork in front of a lot more people. I run into people randomly that arent associated with NFTs necessarily and tell them I was behind the Snoop piece, and they normally respond holy shit, Ive seen that! so that tells me this artwork found itself outside of the ecosystem bubble that we all live in.

Notable sales to date

Decentral Eyes Dogg
Decentral Eyes Dogg sold for 188.800 ETH ($754,300 equivalent on the date of sale) on Dec. 4, 2021 (SuperRare)
Almost There by Coldie
Almost There sold for 135 ETH ($417,639 equivalent on the date of sale) on Aug. 26, 2021 (SupeRare)
Dalai Lama
Dalai Lama Decentral Eyes Variant 01 sold for 120 ETH ($372,200 equivalent on the date of sale) on Aug. 13, 2021 (SuperRare)

Influences

Coldie has his own flavor but cites traditional artists Andy Warhol (American visual artist, producer, and leader in the pop art movement) and Robert Rauschenberg (American painter and graphic artist, pop movement) as having had some influence on his career to date, as well as notable NFT artist and the creator of Gazers, Matt Kane (artist and coder). 

Im rooted in and love collage. Artists like Robert Rauschenberg and Andy Warhol, those people who were making pop art, had a pretty big influence on me.

Im a kid in the 90s, and thats a lot of my influence, too. I grew up with grunge music and design. Those types of things were always super important to me. I think I identify with that style gritty and distressed imagery.

I also have to specifically mention Matt Kane; he is just a master of color and movement, and I think hes on his own level.

Read also
Features

Here’s how Ethereums ZK-rollups can become interoperable

Features

Decentralized social media: The next big thing in crypto?

The evolution of use cases

Always one to be thinking at a deep level, Coldie continues to be bullish on blockchain use cases despite overall market sentiment being in somewhat of a lull. 

I really think NFTs are like an attention marketplace, and its a way to reward customers and people who engage with you. We saw early on that art NFTs proved the thesis of peer-to-peer transactions on the blockchain.

But when you take a step back, you realize there could be a whole range of other things like rewards and ticketing. There are companies working on NFT ticketing right now. Well probably end up sidestepping the word NFT, and itll just be your digital ticket thats on the blockchain. 

Coldie also weighed in on the future of music incorporating blockchain tech: I collected a lot of vinyl records when I was younger, so Im a fan of the album itself. I think that we lost that once we went digital. The demand for album liner notes and awesome packaging is gone currently. 

Theres certain forerunners like Snoop Dogg who was doing his cc0 music [creative commons], where you could download his music and use it all you want. Hes taken Death Row records fully on the blockchain. To me, thats a signal right?

But that signal takes time to create the ripple. If Snoop Doggs doing it, then other people start saying, Whats this all about? I think its going to bring in different mechanics with royalties and rewards where if you own the NFT, you can get into a show or theres a meet and greet. Theres all kinds of possibilities. 

Trust Your Intuition by Coldie
Trust Your Intuition by Coldie (OpenSea)

Hot NFT artists to pay attention to 

Sutu Artist, writer, director, collector and founder of Neonz.xyz

This guy did the CGI for the Ready Player One movie, and that alone was like, this guy is literally designing the art for our future. Hes doing augmented reality, and his artwork is like Blade Runner on steroids, and its freaking fantastic. Hes wonderful and heavily slept on. I scream it from the mountain tops, and Ill continue to do so. 

Die with the most likes Artist from Indiana with his work featured in the first-ever digital art exhibition in Milan. 

Die [with the most likes] and I actually just got to hang out recently at VeeCon in Indianapolis. His stuff is so raw. The social context of his art, when you look at it, its kind of gruesome, but theres so much humor baked into it. Its just perfect. 

Coldies favorite collector

Basileus Basileus is a longtime supporter and early collector. Hes just a wonderful, kind person with a savvy eye. 

Sellout by Coldie
Sellout by Coldie (SuperRare)

Twitter: twitter.com/Coldie 

Instagram: instagram.com/coldie3dart/ 

Website: coldie3d.com/ 

Binance humilated, HK needs 100K crypto workers, China’s AI unicorn: Asia Express

Hong Kong needs 100K crypto people STAT, AliExpress’ NFT drop censored, Binance humiliated on China TV, AI unicorn grows in 100 days.

Alibaba NFTs censored?

On June 8, AliExpress, the online retail subsidiary of Chinese tech conglomerate Alibaba, announced that it had joined forces with Web3 developer The Moment3! to create a series of NFTs based on shopping themes.

The upcoming collection will feature 5,555 NFTs and is scheduled to debut on June 25, 2023. Less than one day after the announcement was made, AliExpress’ tweet was deleted. Nevertheless, AliExpress’ dev partner, posted a statement confirming the drop.

While no reason has been provided for why AliExpress deleted its original announcement, Chinese authorities have been cracking down on anything crypto-related and forcing firms to remove keywords related to “nonfungible tokens” from their products.

In April, Bitcoin price quotes were added to Douyin, which is the Chinese version of TikTok with over 1 billion users, for less than 48 hours before it was removed by authorities. Cryptocurrencies-fiat transactions, mining, and exchanges (but not outright ownership) are currently banned in China.

The deleted AliExpress NFT announcement (PANewsLab)

Binance humiliated on Chinese TV

If there is anything that the U.S. and China, the world’s two largest competing superpowers, have in common, it is their mutual hatred for cryptocurrency exchanges. On June 6, one day after the U.S. Securities and Exchange Commission sued Binance over allegations of operating an unlicensed exchange and selling unregistered securities in the U.S., Chinese Central Television (CCTV) reported on the lawsuit for its one billion viewers noting that Bitcoin and Binance’s BNB token had fallen sharply due to the regulatory action. CCTV rarely covers anything to do with cryptocurrency. Curiously, the broadcast also acknowledged for the first time that Binance is the world’s “largest cryptocurrency exchange.”

The CCTV segment on the SEC lawsuit against Binance (Binance ZH)

Previously, CCTV broadcast a program about new cryptocurrency exchange rules in China’s special administrative region of Hong Kong that took effect on June 1. The segment was notable for not having anything particularly negative to say about crypto in a country where it is currently banned, which is probably why it’s believed that authorities took down the segment just one day later. Given Chinese authorities’ contempt for crypto exchanges such as the likes of Binance, it is likely that this report will stay up for good.

Hong Kong needs 50K-100K Web3 professionals

In a June 7 fireside chat between local news outlet Chaincatcher and Johnny Ng Kit-Chong, a member of the Legislative Council of Hong Kong, Ng said that the SAR would need at least 50,000 to 100,000 Web3 positions to be filled in the next few years based on conservative estimates.

During the interview, Ng revealed that Hong Kong’s plans to incubate 1,000 Web3 firms in three years have already exceeded expectations, with more than 400 firms registering at the time of publication, four months since its launch. Speaking with regard to Hong Kong’s new crypto rules, Ng said:

“So, in fact, Hong Kong’s policies are relatively open. If you plan to make a game and issue a Token, there is no problem in Hong Kong. The key is whether the form of token sale involves securities or futures’ components, and this part will be regulated. In fact, Hong Kong’s supervision has always existed and is relatively clear, with almost no gray areas.”

Ng first became an investor in the Web3 space in 2010. He came in contact with Satoshi Nakamoto’s Bitcoin white paper seven years later and “completely understood blockchain’s functions and its core values” shortly thereafter. Ng became a member of the Legislative Council of Hong Kong in January 2022 and has since pushed for pro-Web3 regulations in the SAR.

Do Kwon vs. the world

When a man is having a hard time, it’s usually not cool to punch down. However, for law enforcement officials across multiple jurisdictions, as well as hundreds of thousands of investors/victims of last year’s $40 billion Terra Luna collapse, the last thing they probably want to see is for Terraform Labs co-founder Do Kwon to get back on his feet again.

Earlier this week, Kwon scored a minor victory in his ongoing passport fraud case in Montenegro after an appeals process by prosecutors was dismissed by a Montenegrin court, setting himself and former Terraform Labs CFO Han Chang-Joon back out on 400,000 euros bail each once again. But before the two had time to celebrate, South Korean prosecutors announced that they would apply to freeze Kwon and associates’ $13 million held in Swiss Bank accounts.

Read also
Features

Tiffany Fong flames Celsius, FTX and NY Post: Hall of Flame

Features

DeSci: Can crypto improve scientific research?

Around the same time, a scandal broke out in Montenegro relating to Kwon’s alleged connections to the Balkan nation’s former minister of finance, Milojko Spaji. According to local news outlet Balkan Insight, Kwon sent a hand-written letter to Montenegro’s incumbent prime minister, Dritan Abazovi, claiming that he had financed the “Europe Now” opposition party movement led by Spaji. The move came just days before Montenegro’s scheduled parliamentary elections on June 11.

Anyways, Kwon’s troubles in Montenegro are just the beginning. The blockchain executive faces criminal proceedings from both U.S. and South Korean authorities for his role in the Terra Luna implosion and could serve 40 years if convicted, in South Korea alone, before extradition to the United States.

Chinese AI startup reaches unicorn status in less than 100 days

On June 5, Huiwen Wang, co-founder of Chinese food delivery giant Meituan Dianping, raised $230 million at a $1 billion valuation for his AI startup Guangnian Zhiwai, or “Lightyears Away.” The round was led by notable Chinese venture capital firm along with Chinese internet conglomerate Tencent. According to media reports, Lightyears Away seeks to become the OpenAI of China, mirroring the success of its American counterpart.

If anything, the raise taught us that ambition and reputation triumph all. The firm achieved its unicorn status just 100 days after its debut and does not appear to have a minimum variable product. In its last update before the fundraising announcement on May 5, the firm is still seeking core front-end and back-end developers and interns.

6 Questions for Thiago Cesar of Transfero

Transfero’s Thiago Cesar says when he started buying Bitcoin in 2012 he knew it had amazing potential for “internationalizing money.”

Thiago Cesar is the 34-year-old co-founder of Transfero, a company helping to make crypto more accessible for Brazilians with BRZ, the first stablecoin pegged to the Brazilian real. 

Cesar grew up in southern Brazils Pindamonhangaba municipality before making the 90-mile trek to Sao Paulo for college. He graduated from Fundao Armando Alvares Penteado, and it wasnt long, Cesar says, before he became infatuated with Bitcoin as a graduate student at the University of London.

By 2014, Id been convinced that Bitcoin and cryptocurrencies, in general, were going to be a big thing, Cesar says, leading him to author his graduate thesis on the competitive and comparative advantages that Bitcoin could bring to a business.

In 2015, Transfero was born.

Crypto became a hit in subsequent years: A 2022 Chainalysis report gave Brazil the top rank of any country in South America on its annual crypto index and No. 7 globally. Cryptos surging popularity is one reason why Rio de Janeiro announced in October it would begin accepting crypto for tax payments, with Transfero facilitating settlements.

What inspired you to start Transfero?

Transfero was a joint dream between me and my four Brazilian co-founders. We met in Rio de Janeiro just after I returned from the University of London in 2015, where coincidentally, I wrote my masters thesis about Bitcoin.

Thiago
Cointelegraphs Rudy Takala, Transferos Thiago Cesar and Tezos co-founder Kathleen Breitman. (Thiago Cesar)

One of my co-founders Marlyson Silva had previous experience in the payments industry and developed a payment gateway that could also process Bitcoin transactions. The system immediately converted Bitcoin into reais, so merchants didnt have to worry about price fluctuations.

Being a crypto-native group, our idea was to leverage everything that a borderless and permissionless asset class could provide. Brazil and other neighboring countries were always financially limited in some way: be it due to inflation-inducing economic policy like in Argentina or a rigid FX market with some degree of capital controls like in Brazil.

Crypto can fill multiple gaps for citizens coming from emerging markets. Asset protection, international remittance rails, portfolio diversification and so on. Transfero builds on top of legacy financial technologies in LATAM such as PIX in Brazil and combines the abovementioned crypto elements to deliver products and services that solve real-world pains that are common in emerging markets.

What are the biggest things Transfero is doing?

Transfero is one of the largest fiat ramps in Brazil and Argentina. Multiple international businesses crypto and non-crypto related use Transfero to receive deposits and perform payments within the Brazilian and Argentine banking systems. 

Also read: Bitcoin is on a collision course with Net Zero promises

Transfero is also the issuer of BRZ, a stablecoin for BRL. Thats the basis for our stablecoin settlements for flows between the United States, Europe, Asia and Latin America. It is a synthetic representation of BRZ, as the actual BRL currency is non-deliverable. That means international companies cant carry it unless they have bank accounts in Brazil.

You also started the Transfero Academy. Whats its goal?

Transfero Academy is an educational program for Brazilians from vulnerable neighborhoods. We offer a full-time blockchain technical course, which prepares students for a career in crypto. We have a 95% employment rate for students who have graduated.

Transfero Academy changed the lives of hundreds of students; now were partnering up with governmental and private educational groups throughout the country.

Cryptocurrency has a higher adoption rate in Brazil than any other country in Latin America. Why are Brazilians so interested in crypto?

Crypto opened up the international financial world to Brazilians. Not a lot of people know, but in Brazil, you can only have bank accounts denominated in BRL, and retail traders can only trade stocks on a local exchange called B3.

When Bitcoin, Ethereum and stablecoins arrived, Brazilians could finally access international platforms and open up their financial horizons. Crypto is not only a different asset class but also an international financial rail for Brazilians.

What brought you to crypto?

Back in 2012, when I was working for a South Korean company, a friend told me about some type of internet money called Bitcoin that was used for deep web transactions. I became interested in the subject and started my own research.

Read also
Features

Who takes gold in the crypto and blockchain Olympics?

Features

Powers On… Top 5 crypto legal and regulatory developments of 2021

As with most people, I didnt understand much at the time, even after reading the white paper. But when I started buying Bitcoin at the end of 2012, I was amazed by the potential it had for internationalizing money. Coming from Brazil, the idea that I could carry a United States dollar-priced asset that could move or be sent anywhere was groundbreaking for me.

By 2014, Id been convinced that Bitcoin and cryptocurrencies, in general, were going to be a big thing. That led me to focus on crypto for my masters thesis at the University of London.

What are your hopes or goals for Transfero on a five to 10 year time horizon?

Transfero is expanding throughout LATAM. Right now, we provide services in Brazil and Argentina, but our main goal is to be the main issuer of stablecoins and fiat ramp for the region, operating a settlement network between emerging markets.

Heilpern loves Bitcoin, hates bullshit… was a China state media journo: Hall of Flame

Layah Heilpern has attracted a big following for her no-bullshit take on Bitcoin. Weirdly, in a former life she worked for China state media.

Author of Undressing Bitcoin: A Revealing Guide to the Worlds Most Revolutionary Asset and host of The Layah Heilpern Show.

Author, podcaster and crypto influencer Layah Heilperns unapologetic and sometimes controversial tweets have amassed her an impressive 606,900 Twitter followers.

She tells Hall of Flame she fearlessly speaks the truth about things and admires others who do likewise. 

Unlike many influencers represented by fancy talent agencies, Heilpern decided to keep it all in the family by hiring her brother Gideon as her manager.

Theres no one I trust more in this world than my brother. I can rely on him 100%, Heilpern says.

Heilpern says she has great parents and isnt shy about letting the world know her mother is more attractive than Madonna. (Although thats no longer as impressive as it once was.)

Laylah 1

Before achieving fame in the world of crypto, she had an interesting stint working as a journalist for Chinese state media, when she briefly became a business and finance correspondent for a China Central Television offshoot in 2019.

I used to work with Chinas Global TV network, so I actually used to be a journalist for the Chinese government, she reveals, adding that working there took micromanagement on an entirely new level:

I did one report on Huawei technology. I had all the Chinese people around me checking what I was saying and what I wasnt saying. So, were instructed to make it a fluff piece rather than an actual good report. 

However, she threw her career in state-sponsored journalism out the window when she fell down the crypto rabbit hole.

Heilpern became obsessed with the subject and even published a book called Undressing Bitcoin: A Revealing Guide to the Worlds Most Revolutionary Asset in 2021 despite admitting she was always terrible at English in school.

As for her career highlight so far? She says nothing has topped interviewing the big wig of the worlds largest crypto exchange. [Hall of Flame interviewed Heilpern prior to the SEC’s recent slew of allegations about CZ and Binance.]

[A career highlight for me is] interviewing CZ at the Binance blockchain event in Dubai where I was the host and MC for the whole conference. CZ is one of the most powerful people in crypto and one of the greatest innovators. Interviewing him on stage was incredible.

It seems that Heilpern made a positive impression on CZ, too, as they often can be seen engaging in banter on Twitter.

Laylah 2

What led to Layah Heilpern’s Twitter fame?

Heilpern has been on Twitter for over a decade and explains there is no shortcut to growing a fanbase other than actually putting in the work.

When you tweet every day, you tend to build a following. I think its also because I speak the truth about certain things. I think people are thirsty for the truth whatever the truth might be.

She explains that the more followers you have, the easier it is to build more followers because you have credibility.

I can gain 50,000 followers in one month, whereas that could take somebody like two years to do. So, it sort of becomes quite rapid growth eventually, she says.

But the fame side of things doesnt really excite Heilpern.

Laylah 3

What can you expect on Heilpern’s Twitter account?

Heilpern doesnt want to sugar-coat it: Her content is not for everyone.

Its very much freedom orientated. Its very much anti-system, Bitcoin-focused, uplifting, and positive, personal responsibility, she explains.

She doesnt feel the need to appeal to everyone either.

I speak very unapologetically; I think there is just a gap in the market for that. So, people just run to you, she says.

Heilpern says that, as her audience grows, she does have to be more cautious about the impact of her words and to be more mindful of her safety.

My words have more weight, so I cant make as many jokes anymore. But I still try not to censor myself too much. I also have to be careful about sharing personal information, which I will be doing less of.

That being said, Heilpern has no problem taking shots at multibillion-dollar corporations.

laylah 4
Read also
Features

You dont need to be angry about NFTs

Features

You Say You Want a Revolution: What Blockchain Can Learn from One Mans Attempt to Save the World

What Heilpern enjoys on Twitter

Heilpern enjoys like-minded people on Twitter who speak the truth about things whether that is in crypto or politics she just craves honesty and hates bullshit. 

I like people who call out the bullshit that we see in the system. I dont like people who pander to their audience. I like people who are unapologetic and say things how they are.

laylah 5

Layah Heilpern’s price predictions

Heilperns Bitcoin price prediction for the remainder of 2023 isnt exactly going to have you jumping out of your seat.

Over the next six months towards the end of 2023, I would say were just going to continue to move sideways. I dont think were going to go any higher than $34,000$35,000, she says.

However, she is optimistic about Bitcoin over what the next 1224 months can bring.

I mean, maybe at the end of 2024, we could potentially reach all-time highs, again around $69,000, but that is not financial advice, she says.

Heilpern says Bitcoin could hit $100,000 in early 2025.

Laylah 6

While Heilpern cant remember if it was Bitcoin or XRP that she bought first, she does admit that she sold the XRP immediately.

I dont really have any predictions for the other [cryptocurrencies]. I just think theyre all very unpredictable shitcoins, she states.

As for Ethereum, Heilpern doesnt see the price dropping anytime soon but has no interest in it.

The price of Ethereum will continue to rise in my opinion, given how much is being built on it. However, I dont like Ethereum, as I think its controlled by the elites and not decentralized.

Laylah 7

Web3 Gamer: GTA 6 crypto rumors, Dr Who/Sandbox, Thai tourist NFTs review

GTA 6 crypto and NFT integration speculation mounts, Top Gear and Dr Who in The Sandbox, and Thailand’s rubbish NFT hunt for tourists.

Grand Theft Auto VI crypto rumors

Rumors that the upcoming Grand Theft Auto VI will incorporate cryptocurrency and nonfungible tokens have once again surfaced, sparking speculation among fans.

Posts shared on Twitter suggest that GTA 6 will be a play-to-earn game and that in-game items such as cars and weapons will be NFTs.

GTA creator Rockstar Games is yet to weigh in on whether theres any truth to these claims, but there seems to be little solid evidence backing the rumors.

The company cracked down on the use of crypto in GTA in November last year and sent cease and desist letters to companies running public servers with blockchain integrations a blow to several game makers that had built their games on the platform.

A lambo from GTA 5
A Lambo from GTA 5. (Steam/Rockstar Games)

Given that GTA 5 has sold over 180 million copies and generated a staggering $8 billion in revenue since its 2015 release, it seems unlikely that Rockstar would drastically alter the successful formula of the franchise, the latest installment of which is expected next year or in 2025.

Of course, there could be a crypto element, but not necessarily the one crypto bros want. Game Rant suggests that it is more likely for Rockstar Games to use crypto as the butt of its in-game jokes.

Doctor Who, Top Gear join The Sandbox

Sci-fi series Doctor Who and British motoring show Top Gear, both popular BBC franchises, will enter the metaverse via The Sandbox after announcing a collaboration with the virtual world platform.

The partnership with Web3 company Reality+ is set to launch the space later this year.

Nicki Sheard, the president of brands and licensing with BBC Studios, believes that while the metaverse is still in its infancy, it may shape how we consume and experience entertainment in the future.

Dr Who
Jodie Whittaker as the Doctor in the hit sci-fi series Doctor Who. (BBC)

“Im looking forward to seeing how fans interact with our brands in this space. This project forms part of BBC Studios’ broader ambitious plans to grow our brands into new categories, with innovative technology and platforms forming an integral part of this, she said.

BBC Studios, which is a commercial production company under the BBC umbrella, will join 400 other entertainment brands that The Sandbox has worked with, including Warner Music Group, Ubisoft, Gucci, The Walking Dead and Adidas.

Read also
Features

Fan tokens: Day trading your favorite sports team

Art Week

Immutable Trash: Crypto Art Revisits Arguments on Censorship and Meaning

STEPN integrates Apple Pay for its NFTs

Move-to-earn app STEPN is making it easier to buy NFTs for its game by adding an in-app Apple Pay payment option.

Users will be able to buy SPARK credits using fiat, with ten spark credits being equivalent to 1 USDC, which can then be used to purchase the NFTs.

It eliminates the need to connect a separate crypto wallet and streamlines the payment process, making it easier than ever for our community to access our offerings, STEPN said on Medium.

STEPN
STEPN users will be able to pay with Apple Pay. (STEPN)

The catch is that purchasing sneakers with fiat will be more costly, which STEPN attributes to the taxation on each in-app purchase.

Onboarding has long been a challenge for the wider adoption of Web3 games, and STEPN is not an exception. Its onboarding process is cumbersome, and users have to buy the sneaker NFTs working out which one is best for you is a task and a half itself from a marketplace and transfer it into the in-wallet app.

But the company could have more in the works when it comes to making onboarding easier.

Our integration with Apple Pay is just the beginning of our vision to make Web3 technology accessible to all, it added.

Battle of Titans dev competition back for second season

MatchboxDAO is bringing its Battle of Titans Web3 racing game back for a second season this week.

Beginning on June 4, dev teams from over 60 Web3 companies, including Immutable, Starknet and Fantom, will compete in a fully on-chain Mario Kart-style game.

Polygon car
The Polygon dev teams car. (MatchboxDAO)

Each car is a smart contract that must be programmed to get to the end of the track while factoring in attacking and defending against other players using bananas, shells and shields.

The first edition of the game in January included teams from Ledger, Polygon, Near, Yield Guild Games and more, with a dev team from Uniswap emerging as the winners.

The new season will also add a community component where viewers will be able to vote for their favorite team.

Read also
Features

DeFi abandons Ponzi farms for real yield

Columns

Helping Ukraine without donating: Lauras DeFi staking plan

Captain Tsubasa Web3 game debuts governance token

Captain Tsubasa Rivals, a football game based on the popular manga Captain Tsubasa, has launched a governance token.

Web3 companies Thirdverse Group and BLOCKSMITH&Co debuted the game in January. Players can train characters from the manga and play against each other in matches.

Game producer Shun Fujiyoshi, who currently heads BLOCKSMITH&Co, said that various mechanisms are in place to maintain the value of utility tokens.

These measures include in-game consumption points and mechanisms to control price fluctuations caused by speculative trading, he said in a statement.

Created in 1981 by Yoichi Takahashi, 70 million copies of the original Captain Tsubasa manga have been sold in Japan alone. It has been translated into over 20 languages.

Illuvium raises additional $10M in funding

Crypto venture firm Framework Ventures has invested $10 million in gaming studio Illuvium, which will be used to accelerate the development of the Illuvium Universe.

Australia-based Illuvium said that the new funding would give it a comfortable runway through the launch of the open beta and beyond.

It is planning an upcoming open beta featuring its city builder Zero, open-world monster hunter Overworld and auto battler Arena.

The company previously raised $5m in a Framework Ventures-backed seed round in March 2021. It also made $72 million during an NFT land sale in June last year.

Hot take: Collecting NFTs for a tiny bit of Thai chicken

In this edition, I caught a Web3 project in the wild.

Queueing for tickets to go up the MahaNakhon, Thailands tallest skyscraper, a poster off to one side next to a coffee advert and emergency defibrillator caught my attention: Amazing Thailand NFTs season 2. Travel to earn amazing expat NFTs.

NFT advert in Bangkok, Thailand. (Callan Quinn)

Easily persuaded, I downloaded the app.

In mid-April this year, the Tourism Administration of Thailand (TAT) launched the second round of NFTs for an NFT tourism project its piloting. Using an app called YAK, tourists can check in at various locations around the country and, in return, receive a travel NFT.

PokemonGo for backpackers and passport stamp addicts sounds appealing. The reality is a bit more frustrating.

Crypto folk wont like how much personal info you have to put in to get set up. Not just an email, but also your phone number and a one-time passcode.

The app and I disagreed several times as to whether I was within the required radius of the sites I visited. While the MahaNakhon NFT was obtained without fuss, I somehow acquired an NFT for Pattaya City and Phuket, even though I didnt go to either.

Amazing Thailand NFT. (Amazing Thailand/YAK App)

The idea is that you earn while traveling by getting discounts depending on how many NFTs you get. In many cases, getting the offer seems to require buying something else, such as getting two free pieces of chicken if you spend over 1,000 Thai baht ($29) in a restaurant a tall order in a country where you can have a nice meal for a fifth of that.

In fact, many of the offers didnt seem to be exclusive to the NFT app at all and were applicable without the app.

Now, apparently though it didnt say so on the poster the game was only supposed to run until the end of April, so maybe all the good offers were gone; I cant be sure.

But for me, the biggest question was how to get the NFTs out of the app. They seem to be on a native chain of the Thailand-based cryptocurrency platform Bitkub. As far as I could tell, it required creating a Bitkub account to move them, which in turn required a Thai phone number to receive the one-time passcode.

Overall it needed a bit of tweaking, but I liked the concept of being able to collect POAPs for places Ive visited as a tourist. The discounts were lousy but not really necessary: if you actually got the NFT corresponding to the place you visited, collecting for the sake of collecting would have been enough.

A revamped, global version would be nice, please.

Other stuff

Gods Unchained unveiled a new roadmap on May 23. Among its plans are some for new game modes, a creator program, a soft launch for mobile and new card sets.

Blockchain gaming platform Gala Games will launch a Web3 poker platform with PokerGO, with a beta slated for release in June.

Game retailer GameStop will distribute Telos-based games on its upcoming Web3 gaming launchpad GameStop Playr.

Gaming metaverse Star Atlas launched the latest version of its showroom on June 1 with new flyable ships, single-player ground racing and an updated dogfighting arena.

Web3 game publisher Fenix Games is teaming up with platform Immutable to help game studios by curating, advising and publishing best-in-class live services to Immutables ecosystem of games.”

Nikes NFTs will start being incorporated into EA Sports games, according to a June 1 statement from the company. No word yet on which titles.

Yuan stablecoin team arrested, WeChat’s new Bitcoin prices, HK crypto rules: Asia Express

Chinese RMB stablecoin issuer’s Shanghai office reportedly deserted after police raid, and WeChat offers Bitcoin prices — but for how long?

Yuan stablecoin team reportedly arrested

On May 31, local news outlet PANewsLab reported that the developers for the offshore Chinese yuan and Hong Kong dollar stablecoin issuer CNHC had lost contact or had been taken away by law enforcement officials. A photo shows what appears to be an empty office building at CNHC’s Shanghai division with the following message posted:

“The building’s assets have been seized by law enforcement; vandalism is prohibited.”

In March, CNHC raised $10 million in its Series A, led by KuCoin Ventures, Circle and IDG Capital. The team said back then that it planned to use the funds for “expansion in the Asia Pacific Region” and was in the process of moving its headquarters from the Cayman Islands to Hong Kong.

The reported move appears to be part of a wider crackdown on cryptocurrencies by Chinese authorities. On May 24, Asia Express reported that tokens of Singaporean inter-blockchain communications protocol Multichain had plunged 30% on a delayed backend upgrade and rumors of Chinese police arrest of its core developers.

Though Multichain says that it is still operational, it stated on June 1 that it is still unable to contact CEO Zhaojun and obtain the necessary server access for maintenance,” and as a result, the protocol would need to suspend a number of affected cross-chain services.

Hong Kong opens up retail crypto licensing

Despite censorship and bans in mainland China, the adoption of cryptocurrency exchange regulation in Hong Kong has proceeded as scheduled. On May 31, the Hong Kong Virtual Asset Consortium was formed to approve the top 30 cryptocurrencies by market cap for listing and to conduct quarterly reviews of registered digital asset exchanges to ensure compliance with licensing regulations that took effect on June 1.

On another front, according to a research report published by multichain wallet provider BitKeep, notable crypto projects such as Avalanche, Conflux, EOS and Fantom have all joined Hong Kongs Web3Hub ecosystem fund unveiled in April. With a budget of $10 million, the fund will incentivize Web3 projects to set up subsidiaries or headquarters in the special administrative region of China. The fund is headed by Paul Chan Mo-Po, financial secretary of Hong Kong SAR.

Despite the growing traction, BitKeep researchers reminded that HK regulations remain strict for the time being:

The new regulations clearly limit the types of tokens that can be traded and the types of services that exchanges can provide. Cryptocurrencies must meet the Securities and Futures Commission (SFC) strict regulations, which emphasize that only non-security tokens can be traded, have a history of at least 12 months, and the token has been included in two cryptocurrency indices.

In addition, exchanges are prohibited from providing wealth management products, as well as the provision of lending and deposit services, along with derivative transactions such as perpetual crypto contracts. “However, the regulator recognizes the importance of derivatives trading in the encrypted market and will conduct further research and consideration,” researchers noted.

WeChat allows BTC price quotes

As of June 1, WeChat, Chinas largest social media app with over 1 billion users, has indexed Bitcoin price quotes in its search queries. The move is significant, considering that China has pretty much banned all crypto-related activities such as exchanges, crypto mining, and fiat-crypto on-ramping since 2021.

However, if history is any guide, the WeChat Bitcoin search query probably won’t last for long. Formerly, billion-user platforms China Central Television and Chinese TikTok variant Douyin have allowed something similar, only to have authorities pull them down just days after launch.

Bitcoin price quotes are now publicly available (WeChat)

All Nippon Airways launches NFT marketplace

On May 30, All Nippon Airways (ANA), the largest airline in Japan with over $12.2 billion in revenue in the last fiscal year, launched an aeronautical-themed NFT marketplace dubbed “ANA GranWhale.” Developers wrote:

“NFTs have been used mainly in fields such as art and music as a technology for expressing ownership of digital assets. This time, the ANA Group will apply NFT to the aviation industry.”

As its inaugural step, ANA GranWhale will debut aerial photographer Luke Ozawas first-ever digital photo in his career as an NFT with an asking price of 100,000 yen ($719). The second installment, starting on June 7, will feature a 3-D model NFT conversion of the first special paint Boeing 787 aircraft launched by ANA. The NFT marketplaces development began last August as part of ANA’s vision of building a Web3 virtual travel platform.

“With a view to commercializing NFTs as specialty products from various parts of Japan, we aim to improve the value of customer experience, including local and overseas, through the ‘GranWhale NFT marketplace.’”

An ANA GranWhale NFT (All Nippon Airways)

Fed inspires Astar Network to revamp tokenomics

On May 28, Sota Watanabe, the founder of Japanese blockchain Astar (ASTR) Network, expressed his desire to revamp the protocols tokenomics, saying that even the United States government was targeting an inflation rate of 2%, compared to levels of around 8.4% currently. Drawing further inspiration from the Federal Reserve, Watanabe proposed mirroring the Feds meeting decisions every quarter or every six months and updating the blockchains token inflation rate on a variety of factors, writing:

“Decentralizing one of the roles of the FED can be a challenge but also an interesting trial.”

The crypto executive said he wished to either fix ASTRs total supply and make the inflation rate smaller and smaller such as in Bitcoin, or automatically decide the inflation rate based on network usage, as in Ethereum, or use a mix of both models.

A multichain decentralized application proposal, Astar recently launched the second iteration of its smart contracts, supporting both Ethereum Virtual Machine (EVM) and WebAssembly Virtual Machine (WASM VM) on its mainnet for developing new cross-chain apps.

Read also
Features

Is Ethereum left and Bitcoin right?

Features

Block by block: Blockchain technology is transforming the real estate market

BitFlyer and the Travel Rule

According to a recent announcement, Japanese cryptocurrency exchange bitFlyer will comply with the countrys Financial Services Agencys new Travel Rule starting June 1. The Travel Rule states that a crypto asset exchange operator sending crypto assets at the request of a user shall provide specific information about the sender and the recipient to the exchange operator receiving the transfer.

In addition, further restrictions are imposed on crypto transfers to any of the 21 countries, including Japan, Switzerland, Canada, Bahamas, Hong Kong, and the U.S., utilizing the Coinbase-led Travel Rule Universal Solution Technology (TRUST).

BitFlyer clients who wish to transfer crypto to any of the 21 TRUST countries can only send Bitcoin or Ethereum and select ERC-20 tokens. Such requirements do not apply to transfers to addresses identified with any of the remaining non-TRUST countries. As told by bitFlyer:

“The purpose of the travel rule is to prevent the ability for terrorists and other criminals from using digital fund transfer systems as well as track unauthorized use.”

BitCulture: Fine art on Solana, AI music, podcast + book reviews

Universal’s U-turn on AI music won’t please Ice Cube, former MOMA curator collects fine art on Solana, Edge of NFT podcast + Crypto Titans.

BitCulture explores arts, culture, music and media in blockchain and Web3.

Fine art on the blockchain

Exchange.art head curator Haley Karren came to Web3 from some of the worlds leading art institutions and says that working with 14,000 artists on Solanas fine art marketplace has broadened her tastes. 

Exchange.arts head curator Haley Karren
Exchange.art head curator Haley Karren (Supplied)

I have a new appreciation for pixel art, voxels and things that really are very much native to this space. Its been fascinating to see the difference between what I was more interested in two years ago and what Im interested in now.

Formerly a curator at New Yorks Museum of Modern Art and the Peggy Guggenheim Collection in Venice, Karren says her role has always been as a conduit between contemporary artists and the rest of the world. Even more so now that shes connecting traditional artists to a space that utilizes blockchain, NFTs and artificial intelligence.

Digital art and traditional art spaces are moving together more and more. Thats a big push for us at Exchange.art, but there is still a little bit of a divide, she says. 

Theres just a little bit of a bias against the blockchain in a sense, and I think it’s a little bit of not understanding it. 

She says often, collectors are unaware that the blockchain can be used for provenance, and artists dont realize that NFTs can be programmed to collect royalties each time a piece is sold. 

Its shifting some established norms in the art world that didnt give artists enough ownership over their work, she says.  

I try to help onboard people as well as artists or traditional art collectors. It is a process, you know, understanding what crypto is, understanding what a wallet is. 

In the traditional art world, galleries are the gatekeepers. For artists to sell works, galleries need to display them for buyers, taking commissions of up to 50% for doing so. 

NFTs help replace these gatekeepers, giving control back to artists. 

Its a huge shift in terms of sovereignty and shifting it back toward artists. It places much more responsibility on them to also market their work, to talk about their work and to present it coherently.”

Lisanne Hack artwork
Incorporating aspects of physical art (Lisanne Hack, Aspire, 2022)

Karren sees her current role as a sounding board for artists to think through how a series should be presented, and put out in the world, how many, how often, in which order? 

One such artist Karren highlighted is Lisanne Haack and her Synergy series (pictured left). Haack is a digital painter who creates in a style that resembles oil painting, as well as charcoal and pastels.

In a fascinating departure from physical art, she varies the texture of the support between canvas and paper, Karren explains, adding that digital tools enable Haack to cut, paste, rework and repeat sections to create digital pieces of fine art.  

Emerging trends in the space include artists working with different AI programs and incorporating it into their creative process to then push themselves in a way that they wouldnt have been challenged previously.

She also points to conceptual art being put on the blockchain directly, as well as the emergence of illustration as a fine art. 

Finally, in this space, it has been given its due. Its been fascinating to watch and learn more about this art form that has a long history and has not been considered a fine art form in the traditional art world.

Musicians vs AI

AI has been causing a stir across the world with its ability to remix and create “new” works based on existing artists. Musicians and major record labels have taken wildly varying stances on this. 

Dance/electronica musician Grimes was a trailblazer, offering to split 50% of the royalties with any successful AI-generated song that uses her voice. She said she finds it cool to be fused with a machine and is in favor of open sourcing all art and killing copyright.

But rapper Ice Cube, who rose to fame in the late 80s with N.W.A., said in a recent interview he would sue anyone producing AI tracks mimicking his voice and any platform that offers the track. 

Its like a sample. Somebody cant take your original voice and manipulate it without having to pay. I think AI is demonic, I think AI is going to get a backlash from organic people.

Universal Music Group famously ordered streaming services like Spotify to ban AI from being able to train on the labels content. However, last week the label signaled it’s not opposed to the technology if used in the right way, announcing a partnership with the wellness sound app Endel to create ethical AI music that respects artists rights.

UMG artists will use Endels AI technology to create science-backed soundscapes, designed to enhance listeners wellness, including both new music and new versions of catalog music.

Read also
Features

Space invaders: Launching crypto into orbit

Features

Why Grayscale’s New Digital Currency Ad Could Bring Crypto Investing To Millions

Michael Nash, the labels chief digital officer, said, At UMG, we believe in the incredible potential of ethical AI as a tool to support and enhance the creativity of our artists, labels and songwriters, something that Endel has harnessed with impressive ingenuity and scientific innovation.”

Is this a cautious green light for AI creators from one of the music industrys most powerful players? 

Stay up to date:

`The Web3 Foundation partners with legacy music festival

On May 31, the Web3 Foundation, which is behind the Polkadot blockchain, announced a new partnership with Primavera Pro to create the inaugural Web3 Music Summit in Madrid this June. Primavera Pro is known for throwing some of Spains largest festivals, with hundreds of thousands in attendance. The conference focuses on blockchain technology, experiential events, and discussions on the future of music in the digital age. 

DJ Agoria gives NFT owners 100% of recording royalties 

The French DJ Agoria announced his entrance to the NFT scene via the NFT music platform Bolero. Agoria revealed that his fans who collect his music as NFTs would see 100% of the royalties redistributed to them. He said its about time to give back to fans and also sees it as a sincere and legitimate opportunity for my traditional partners to step into our ecosystem. 

Elons cryptic meme about AI

Tesla CEO Elon Musk has a love-hate relationship with AI. While he helped found OpenAI, creates robot armies and is buying up GPUs to create his own generative AI tool, he has also warned about its destructive capabilities. Last week the billionaire tweeted a cryptic meme about people entering the AI space, going from everyday-looking people to corpse-like zombies.

Podcast review: Edge of NFT 

The Edge of NFT podcast explores the intersection of emerging technologies and culture, exploring everything from art to gaming and animation.

Edge of NFT
Edge of NFT podcast logo.

Hosted by Eathan Janney, Jeff Kelley, and Josh Kriger three industry insiders and founders of Web3 advisory MainChain Venture the show racked up more than 100,000 listeners in the last year. 

This podcast goes beyond technology and looks at the human element of how NFTs change the way we interact with communities and industries. Ranging from 30-60 minutes, each show features a guest interview and explores topics like building better Web3 games, the importance of culture and royalties to Web3, and even tax loss harvesting of NFTs. 

Read also: Top 10 crypto artist Trevor Jones on being rich, rekt and rich again: NFT Creator

Big-name guests theyve had on the show include Dim Mak founder and DJ Steve Aoki, The Sandbox founder Sebastien Borget, VeeFriends creator Gary Vaynerchuk and Filecoin Foundation President Marta Belcher. The presenters also regularly travel to high-profile events like Consensus and ETHDenver to conduct interviewees and help give listeners a sense of the flavor of the event.

In last weeks episode, they covered an event in New York at Christies art gallery featuring a 152-piece generative art collection of physical hand-drawn monoprints paired with NFTs.

Book review: Crypto Titans, by Markus Thielen

Crypto Titans
Crypto Titans was released in May.

Subtitled How trillions were made and billions lost in the cryptocurrency markets, this 405-page book is out now. Crypto Titans recounts the last 15 years of the cryptocurrency industry starting from the publishing of Satoshi Nakamotos Bitcoin white paper in 2008 to the ongoing banking crisis and the U.S. crypto crackdown of 2023. 

More than just a history, Crypto Titans reveals the interconnectedness of everyone and everything in crypto. How regulatory action in one country led to a massive crypto boom in another. Where some crypto empires were built, and others turned to rubble in a few days.

If youre looking for a gripping edge-of-your-seat read, though, you may want to stick to fiction. This book focuses on being objective and fact-based with plenty of references to boot: 631, in fact.

This means that unless youre a history buff, it can get a little dry just talking about fact after fact. The book overcomes this with plenty of chapters and sections meaning you can easily dip in and out, picking it back up with a fresh mind.

Theres even a handy little index at the back, in case you want to get a quick refresher on a specific company or person. Sam Bankman-Fried gets 68 mentions; the Securities and Exchange Commission, 41.

The book is great for anyone with an interest in the history of crypto. Readers need not be familiar with crypto or financial lingo to enjoy it, though a basic understanding will certainly help. 

Memes for the road:

Mad scientist’s NFTs degrade when they’re traded: 0xDEAFBEEF, NFT Creator

Self-proclaimed tinkerer 0xDEAFBEEF has hit it big with audiovisual NFTs that slowly degrade in quality every time they’re traded.

When NFTs first took off, it was Beeples digital art, CryptoPunks and Bored Ape Yacht Club PFPs that dominated the headlines and top sales but one individual bucked the trend in a unique way, garnering attention with generative audiovisual art using just a C compiler. 

That individual was 0xDEAFBEEF, an artist and engineer based in Toronto, Canada whos spent over 20 years experimenting with art, technology, music, generative art, computer animation, blacksmithing and sound recording. 

Using low-level computer code and a minimal toolset to craft raw information into audiovisual artworks has proven more popular than you might expect. A collection of six of 0xDEAFBEEFs sold for $6.8 million in August 2021, and two weeks ago, Series 1: Angular – Token 134 fetched $241,300 at Sothebys. It was auctioned during part 1 of Grails, a collection of highly desirable NFTs originally owned by the now-insolvent 3AC (Three Arrows Capital).

Trained on classic piano as a kid and somewhat of a mad scientist when it came to audio equipment, discovering a programmable blockchain in Ethereum was a revelation.

Id describe myself as a tinkerer, jumping around between many fields, overlapping art and technology. It just happened that the project that I commenced before I knew anything about NFTs, doing audiovisual work with code, happened to align with things that were happening within Ethereum, 0xDEAFBEEF says. 

It was great timing. When I look back, had I missed that window in 2021 by three to six months, things might have looked much different. 

But like so many successful NFT artists that have emerged in the explosion of the new digital art era, not planned is a common theme. 

In March 2021, his Synth Poems were born, inspired by the sound of analog synthesizers. These short generative music pieces are stored fully on-chain. 

NFTs that degrade in quality 

NFTs have been a playground for experimentation, and 0xDEAFBEEFs work Entropy is unique in that the tokens degrade in quality each time they are traded. 

Entropy is thematically about permanence, and permanence is a theme of on-chain generative art. Its a theme of crypto in general with things being permanent and immutable, says 0xDEAFBEEF. 

It was interesting to me. Theres a narrative of on-chain art being more permanent than other NFTs where the files are stored on another server and have the potential to disappear. But I asked myself the question of how immutable it is through Entropy. 

Using the Entropy artwork to paradoxically critique the idea of permanence by having this digital artwork that changes and degrades every time it changes ownership I thought it was interesting thematically. 

Since the recent introduction of the Blur marketplace, many NFT collections, particularly PFP projects, have seen the emphasis on aesthetics decline with most sales being anchored to current floor prices. Its also posed the question of does the number of times an NFT gets passed around between owners matter? 

For some collectors, it actually does. While a digital piece of art or collectible doesnt face the same wear and tear challenges a physical item does, the history of ownership could be a factor, with some collectors putting a premium on those that havent been passed around like a hot potato. 

Read also
Features

Crypto Pepes: What does the frog meme?

Features

What the hell is Web3 anyway?

Entropy was an experiment ahead of its time. People can have their own interpretation, but I dont think it was necessarily a means to really discourage people from trading the NFT or transferring the NFT, he says. 

Is it more valuable if its been transferred or not? Its up to the collectors to decide, but it does add this narrative. It wasnt really a way to stick it to people that are buying and selling works thats obviously part of the culture. Tradability and collectibility is a very interesting dimension of NFTs. Its really just an artwork that touches on all of those themes and at least asks you to consider it. 

Personal style: 

Many NFT collectors believe its harder for digital artists that focus on audio to cut through as effectively as visual artists as audio takes longer to consume. 

0xDEAFBEEF has been able to cut through this friction with his own distinct monochrome visual style that is a great hook to unlock the audio aspect of the art. 

People see it first before they hear it usually because of the dominance of social media its all visually oriented. The monochrome aesthetic of my work is something that comes through a lot. Theres a bunch of reasons why I work in monochrome. One of them is just being practical because this was originally a sound-based project, he says. 

I was focused on audio synthesis, and I was focused on motion and animation. Bringing those two things together is already many dimensions, so working with sound and with motion that might introduce color is too much. Monochrome has sort of become part of the style for those reasons. 

Notable sales to date:

DEAFBEEF Full Set (6 items) Sold for 2,275 ETH ($6.8 million on the date of sale) on Aug. 19, 2021. 

(The buyer was later revealed as Brevan Howard founder Alan Howard.)

Glitchbox
Glitchbox from the set of 6. (OpenSea)
Angular
Angular from the set of 6. (OpenSea)
Transmission
Transmission from the set of 6. (OpenSea)

Advection (below) was sold for $307,157 on June 29, 2022. 

Influences:

0xDEAFBEEF cites American musician Frank Zappa as someone who was very influential early on in the way he thinks about music and art. 

Its about his music but also the spirit and ethos of it sort of sticking to your guns and doing things for yourself. Another way I think about it is making things that arent necessarily for the crowd, he said. 

If it wasnt for that encounter, I might have just kept on doing my engineering degree and wound up in a boring job and being regretful about things. It helped me give myself permission to do something more risky.

I dont listen to Frank as much as I used to now. Looking back, he does have some problematic kinds of themes and things. I dont idolize him or anything, but he was still quite influential on me as a young person. 

Read also
Art Week

Immutable Trash: Crypto Art Revisits Arguments on Censorship and Meaning

Features

The Becoming of Bitcoin: A Narrative Untainted by Illusions of Truth

Which hot NFT artists should we be paying attention to? 

Operator Experiential duo of Ania Catherine and Dejha Ti. 

They have a long-standing art practice, but more recently, I think theyre working with generative choreography. I think thats really fascinating. Theyre coming at it from a very strong technical and conceptual aesthetic.

Trevor Paglan Satellites, deep-time, seeing machines, infrastructure

Trevor is an artist that investigates. He has a recent Art Blocks drop that ties in with other projects that hes doing that are related to security and privacy, which I think are really relevant at this time. 

Paul Pfeiffer Video artist 

Paul is an amazing video artist. Hes well known and doing his first NFT with Art World. It looks really phenomenal. 

Holly Herndon Artist working with voice models and artists rights 

Holly has been studying at Stanford about artists rights for a while. Shes known what was coming for many years now. Shes been working with voice models. Its fascinating stuff. 

Notable collectors: 

The qualified electrical engineer genius of 0xDEAFBEEF is collected by many notable NFT whale collectors, but its other artists in particular who he pointed out make him smile knowing they appreciate his work. 

Im extremely appreciative of all my collectors and anyone thats taken an interest in my work. The most meaningful ones that have honestly made me smile have been art-for-art trades with other artists. 

I traded a Glitch Box with Snowfro for several unminted Chromie Squiggles. Im really proud to have that in his collection, and also to receive those Squiggles is super meaningful. 

I also traded Synth Poem with Mitchell F Chan, who is a conceptual artist thats been working with blockchain stuff. He has a project from 2017 thats really relevant called Digital Zones of Immaterial Pictorial Sensibility.

Then theres Jack Rockland, who has held one of my Synth Poems all the way through since March 2021. He works at ArtBlocks and is an artist himself. Im really proud to have him as a long-time collector. 

Favorite NFTs in your wallet that arent your own:

Stipple Sunsets by Jack Rockland. 

It was the first NFT that I minted that wasnt my own; plus, it was the work of a friend, so it makes it really meaningful for me. 

Links: 

Twitter: https://twitter.com/_deafbeef 

Website: https://www.deafbeef.com/