Web3

Aleph Zero launches $50M ecosystem funding program

The Funding Program for the ecosystem involves grants, incubation, and acceleration for all phases of product development, with approved applicants receiving up to $500,000 per project.

Aleph Zero is launching a $50 million Aleph Zero Ecosystem Funding Program, the layer-1 privacy-enhancing blockchain announced on April 18. The nonprofit Aleph Zero Foundation overseeing its development of Aleph Zero aims to support developer teams to build on its platform and advance blockchain adoption globally.

In an interview with Cointelegraph, Aleph Zero co-founder Antoni Zolciak shared that “the goal of the Aleph Zero Ecosystem Funding Program is to fund innovations from developer teams that expand the capabilities, functionalities, and adoption of the Aleph Zero blockchain.” Zolciak also told Cointelegraph that the program would support various project ideas, from proof-of-concept to experienced teams with solutions on different platforms.

Aleph Zero wants to attract developers by providing comprehensive support that goes beyond just grants, such as assisting with business feasibility, regulatory compliance and community-building. The foundation seeks to offer access to a reliable partner network, as well asshare its own experience in building something from scratch. “We’re hoping to introduce a somewhat redesigned approach to how layer-1s can support builders and to go beyond simply providing grants,” said Zolciak.

The Ecosystem Funding Program comprises of grants, incubation and acceleration at all stages of product development, with successful applicants receiving up to $500,000 per project in grant funding. Additionally, grant recipients will gain exclusive access to Aleph Zero’s venture capital pool, infrastructure credits from Amazon Web Services and security design consultations from Kudelski Security. The Aleph Zero partner network will also provide marketing, branding, UX, product design and operational support as needed.

Speaking on the kinds of projects Aleph Zero is interested in supporting and the criteria for selecting grant recipients, Aleph Zero ecosystem lead Magdalena Oleksy told Cointelegraph that “the Aleph Zero Foundation is actively seeking to support a diverse range of projects that add value to the ecosystem. When selecting grant recipients, we consider the ability of the team to enhance network usage and adoption, their execution capabilities, and the uniqueness of the project.” Ultimately, the foundation seeks to encourage innovation and originality in proposals.

The program’s pilot phase has already produced a range of projects, such as decentralized lending and borrowing protocol Abax, NFT marketplace ArtZero, domain name service AZERO Domains, unique dark metaverse experience DRKVRS, enterprise-grade decentralized identity platform Gatenox and decentralized security platform Interlock.

Aleph Zero’s Ecosystem Funding Program is backed by long-term contributors to the project, including NxGen, Diamond Atlas Capital, BlackDragon, Necker Ventures, Hodl.nl and Hodl Ventures, Pragma Ventures, RR2 Capital, Cardinal Cryptography and Cardinal Ventures, Bellwether Rocks and Offbeat.

Despite recent ecosystem funding news, venture capitalist investment into crypto firms continued to fall in the first quarter of 2023. According to a report by Galaxy Research — the research arm of crypto investment firm Galaxy Digital — $2.4 billion invested by VCs throughout Q1 2023 was the lowest sum invested since the last quarter of 2020.

The report said that “Companies building in the Web3, NFTs, DAOs, Metaverse, and Gaming subsector raised the most deals, while Trading, Exchange, Investing, and Lending companies raised the most capital ($538m).”

VC investments have been falling since peaking at nearly $13 billion in Q1 2022, with the latest quarter’s results representing a decline of over 80% compared to the same to last year.

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Core DAO partners with Bitget and MEXC to launch $200M ecosystem fund

The Ecosystem Fund will provide financial support to early stage projects.

Core DAO, an organization committed to the development of the Satoshi Plus ecosystem, has introduced a $200 million Ecosystem Fund aimed at speeding up the development of decentralized applications and protocols built on the Core layer-1 blockchain.

According to two press releases seen by Cointelegraph, one from CoreDAO and one from Bitget, The Ecosystem Fund — which is supported by strategic partners such as cryptocurrency exchanges Bitget and MEXC — aims to provide financial support to early-stage projects. This support will encompass various areas such as research and development, recruitment, marketing, community-building programs and other essential growth initiatives.

In addition to the investment, the partnership also involves the listing of Core projects and the opening of a new Core Trading Zone on Bitget and its integrated BitKeep wallet. Bitget also plans to become one of the validators of the Core network and support Core staking on the exchange. Bitget’s user base of over 8 million can also offer substantial staking capabilities to the Core DAO ecosystem, providing it with essential liquidity.

The Ecosystem Fund of Core DAO claims to distinguish itself from industry peers by not adopting a grant-based system in which a project’s primary requirement to obtain financial support is committing to build on a particular protocol. Instead, the Ecosystem Fund will incentivize each project to achieve pre-agreed customized benchmarks that provide tangible value to the Core community.

Rich Rines, the initial contributor at Core DAO, commented: “Too often, grant programs seem designed to grab headlines and generate short-term momentum rather than incubating projects aligned with the ecosystem’s long-term success.”

“Core DAO has always prioritized creating the highest quality technology in the blockchain industry versus being the ‘first’ or the ‘fastest’ to do something. That’s why our Ecosystem Fund will incentivize projects for their ability to both deliver value and sustain success,” he added

Gracy Chen, the managing director of Bitget, said:

“This investment is another show of proof of our commitment to supporting the blockchain space from various angles. We have to keep in mind that the purpose of blockchain is to link the real world with Web3 space, and that is exactly what we are promoting with this partnership and our support to the ecological fund.”

Crypto derivatives exchange and a strategic partner of The Ecosystem Fund of Core DAO, Bitget, has also recently launched a $100M Web3 fund for crypto projects in Asia. Bitget has declared its intention to direct its funding towards Web3-compatible venture firms and projects on a global scale. The company shared that it will focus on Asian projects led by experienced teams that possess clear roadmaps and are addressing real-world issues.

During the launch of its Web3 fund, Bitget managing director Gracy Chen highlighted the fast-paced evolution of the Web3 landscape and emphasized the need to support deserving projects that can propel its development and make it a global phenomenon like Web2. Chen stressed that the Bitget Web3 fund’s primary objective is to identify projects that have the greatest potential to drive this transformation forward.

The other strategic partner of the Ecosystem Fund of Core DAO is MEXC, a cryptocurrency trading platform that offers users access to various digital assets and trading features, including spot and margin trading, derivatives trading and staking services.

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Web3 economy to gain more traction in Africa through DeFi-based financial inclusion

DeFi-based financial inclusion serves to increase liquidity and earning opportunities for African micro-entrepreneurs through Fonbnk’s partnership with Tanda.

Web3 in Africa began with cryptocurrency, with blockchain technology bringing a lot of transformation regarding transparency and people’s control over their finances. The Web3 economy in Africa continues gaining traction with decentralized finance-based financial inclusion.

Fonbnk, the Web3 on-ramp that allows Africans to obtain cryptocurrency assets by exchanging their airtime credits, has partnered with Tanda, a merchant network platform in East Africa, to launch an airtime trading marketplace across Tanda’s network of agents.

The partnership between Tanda agents and vendors in East Africa can increase liquidity in the marketplace through the buying and selling of prepaid airtime for profit. This, in turn, can create opportunities for agents to earn revenue and also allow them to store their profits in dollarized stablecoins.

The partnership gives African micro-entrepreneurs more earning opportunities, creating a growth flywheel effect through improved liquidity and marketplace efficiency. This cycle builds trust and generates even more liquidity. Moreover, this partnership enables more African users to participate in the Web3 economy — without requiring bank accounts or cards — by using only their airtime credits.

Although Fonbnk operates throughout Africa, its partnership with Tanda is concentrated in East Africa. Fonbnk plans to expand earning opportunities for African micro-entrepreneurs and bring decentralized finance-based financial inclusion to the masses across Africa.

During the first episode of Cointelegraph’s Hashing It Out podcast, the co-founder of Fonbnk identified the rise in crypto adoption as being due to several factors, such as the chance to earn money, inflation, currency devaluation and the ease of doing business on a global scale.

Web3 can open up an intra-African exchange economy, and it can be used for purchases and transportation between African nations thanks to the ability to be used between borders. It will assist Africans in generating more economic value in the wider market.

According to BitcoinAfrica.io, the top five African countries whose communities are adopting Web3 and crypto are South Africa, Nigeria, Zimbabwe, Kenya and Ghana. They have the most demand for digital currency and the most active local cryptocurrency communities.

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Italy ChatGPT ban: Data watchdog demands transparency to lift restriction

The Italian regulator sets strict guidelines for OpenAI’s ChatGPT, mandating increased transparency and age verification measures to protect user privacy before lifting restrictions.

Italy’s data protection agency, known as Garante, has specified the actions that OpenAI must take to revoke an order imposed on ChatGPT. The order was issued in March 2023 . The watchdog suspected the artificial intelligence (AI) chatbot service of violating the European Union’s General Data Protection Regulation (GDPR) and mandated the United States-based firm to halt the processing of data belonging to individuals residing in the country.

The regulator’s press release mandates that OpenAI must increase its transparency and issue an information notice comprehensively outlining its data processing practices. Additionally, the statement requires OpenAI to implement age-gating measures immediately to prevent minors from accessing its technology and adopt more stringent age verification methods.

OpenAI must specify the legal grounds it relies upon for processing individuals’ data to train its AI, and it cannot rely on contract performance. This means that OpenAI must choose between obtaining user consent or relying on legitimate interests. OpenAI’s privacy policy currently references three legal bases but appears to give more weight to the performance of a contract when providing services such as ChatGPT.

Furthermore, OpenAI must enable users and non-users to exercise their rights regarding their personal data, including requesting corrections for any misinformation generated by ChatGPT or deleting their data.

In addition, the regulatory agency mandated that OpenAI allow users to object to processing their data to train its algorithms. Also, OpenAI is required to conduct an awareness campaign in Italy to inform individuals that their information is being processed to train its AIs.

Garante has set a deadline of April 30 for OpenAI to complete most of these tasks. OpenAI has been granted additional time to comply with the extra demand of migrating from the existing, age-gating child safety technology to a more resilient age verification system.

Specifically, OpenAI has until May 31 to submit a plan outlining the implementation of age verification technology that screens out users under 13 years old (and those aged 13 to 18 who have not obtained parental consent). The deadline for deploying this more robust system is set for Sept. 30.

On Friday, March 31, following the concerns raised by the national data protection agency about possible privacy violations and failure to verify the age of users, Microsoft-backed OpenAI took ChatGPT offline in Italy.

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Binance CEO CZ: Regulators need deep understanding crypto for proper rules

Binance CEO Changpeng Zhao emphasizes the need for a proper understanding of the crypto industry by regulators and active engagement by industry players to achieve regulatory clarity.

In a fireside chat during the Hong Kong Web3 Festival, Changpeng Zhao (CZ), CEO of Binance, expressed that it is important for crypto regulators to have a deep understanding of the industry to facilitate proper crypto regulations. The fireside chat was moderated by Deng Chao, the CEO of Hashkey Capital.

According to CZ, “There is a very natural tendency to borrow traditional financial industry regulations to apply to crypto. Crypto is different from banks and traditional financial industries” He went on to explain that knowing the answers to simple questions like how to classify different assets is important in deciding on regulations for the industry, as there are many types of crypto assets. Some assets may look like securities, others like commodities, or utility tokens, some may even have a combination of those characteristics.

When asked his recommendation on good regulation framework, CZ said that having unclear regulations is “the worst” and having regulatory clarity is better. He went on to say that it’s best to let the industry develop fully before introducing regulations. The particular reason for this is that it’s difficult to predict what exactly is going to be popular in the industry.

In relation to crypto industry players and their approach towards crypto regulators, CZ advised that there is a need to be very actively engaged with them. He explained that though many of the crypto regulators all around the world are very receptive, there are some who are still very skeptical. However, skepticism should deter crypto industry players from engaging the regulators in conversations.

Responding to what could trigger mass adoption of crypto, CZ said that the fact that many governments are trying to come for crypto may actually be the trigger to make crypto grow. He explained that the government’s efforts in shutting down banks, fiat access and putting more restrictions on the traditional financial markets actually push more people towards crypto.

CZ stressed the need for crypto industry players to exercise patience. He said that understanding that the first draft of regulations is always likely overly restrictive is important and so in just a matter of time, a balance is usually found.

Hong Kong supporting web3 recently showed support for Web3 by taking major steps to develop the Web3 industry.

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Binance CEO CZ: Regulators need deep understanding of crypto for proper rules

Binance CEO Changpeng Zhao emphasizes the need for a proper understanding of the crypto industry by regulators and active engagement by industry players to achieve regulatory clarity.

According to CZ, “There is a very natural tendency to borrow traditional financial industry regulations to apply to crypto. Crypto is different from banks and traditional financial industries.”

He went on to explain that knowing the answers to simple questions like how to classify different assets is important in deciding on regulations for the industry, as there are many types of crypto assets. Some assets may look like securities, others like commodities or utility tokens, and some may even have a combination of those characteristics.

In relation to crypto industry players and their approach toward crypto regulators, CZ advised that there is a need to be very actively engaged with them. He explained that although many of the crypto regulators all around the world are very receptive, there are some who are still very skeptical. However, skepticism should deter crypto industry players from engaging the regulators in conversations.

Responding to what could trigger mass adoption of crypto, CZ said that the fact that many governments are trying to come for crypto might actually be the trigger to make crypto grow. He explained that the government’s efforts in shutting down banks, fiat access and putting more restrictions on the traditional financial markets actually push more people towards crypto.

CZ stressed the need for crypto industry players to exercise patience. He said that understanding that the first draft of regulations is always likely overly restrictive is important, and so in just a matter of time, a balance is usually found.

Hong Kong recently showed support for Web3 by taking major steps to develop the Web3 industry.

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NFT warranties can help mass adoption of the technology, says Web3 exec

A new NFT warranty service says that protecting collectible digital assets of value can help provide “a sense of security and trust” and encourage new users.

The Web3 space has seen its fair share of exploits in the recent past, with more than $320 million exploited by hackers in the first quarter of 2023. For many users, particularly prospective users, securing their digital assets is a top priority.

A new nonfungible token (NFTs) warranty service from Web3 payment provider Wert and insurtech service Avata is trying to troubleshoot the asset security gap for both active and prospective collectors.

According to the announcement, the opt-in warranty for NFTs will cover up to 90% of the value of the digital assets for any NFTs compromised in a smart contract hack.

Cointelegraph spoke with George Basiladze, the co-founder and CEO of Wert, who said a solution like this helps bridge the “trust” gap, while offering needed protection to an array of collectors.

“[NFT warranties] will provide a sense of security and trust, which will encourage more non-native crypto users to join the Web3 space with minimal risk, making it more appealing to a broader audience.”

The service will be available on nearly 80 digital asset marketplaces, including the KnownOrigin NFT marketplace. According to Basiladze, the NFT protection will be charged at 6% of the asset cost at checkout, and coverage will be calculated by the purchase price rather than the current market value.

Basiladze believes that offering a service that ensures some degree of protection against hacks and theft will help perpetuate mass adoption of NFTs and Web3 technologies in general.

“Overall, any consumer looking to get into the NFT space wants to protect their money invested and by offering them that sense of security, they are able to engage in Web3 on a deeper level with reduced risk.”

He pointed out that particularly high-value NFTs, similar to traditional collectibles and art, are often bought by serious investors who are more often worried about security than the average collector. Warranties can make the industry “more open to professional collectors and investors.“

A recent study from CoinGecko revealed that 25% of NFT owners have a collection of 51 digital assets or more. Some studies have projected that NFT-related global transactions will skyrocket from 24 million in 2022 to nearly 40 million by 2027.

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Bitfinex Securities El Salvador receives Digital Asset Service provider license in El Salvador

The license granted by El Salvador’s National Digital Asset Commission will allow Bitfinex Securities to issue and trade secondary assets on a regulatory-compliant platform.

Digital asset exchange Bitfinex Securities El Salvador has received a digital asset service provider license under El Salvador’s new Digital Assets Issuance Law, which was passed by El Salvador’s National Congress in January, with the goal of fostering increased financial innovation and growth in the Central American country.

According to the announcement, the license, which was granted on April 11 by El Salvador’s National Digital Asset Commission, makes Bitfinex Securities El Salvador “the world’s first international digital asset platform to receive approval to be licenced as a Digital Asset Service Provider” in El Salvador

We are now the world's first international digital asset platform to receive approval for a Digital Asset Service Provider license under El Salvador’s new Digital Assets Issuance Law! A milestone for financial freedom in Latin America.@bitfinex https://t.co/88Mmmi5s6M

— Bitfinex Securities (@BFXSecurities) April 11, 2023

Paolo Ardoino, chief technology officer of Bitfinex, noted that the license will allow “Bitfinex Securities to facilitate the issuance and secondary trading of assets with clearly defined rights and obligations as outlined in the new digital asset regulatory regime.”

The announcement said that Bitfinex Securities El Salvador, a newly-formed entity, would offer a regulatory-compliant platform for companies worldwide to issue digital assets like equities, bonds, and other financial instruments. This will present a unique opportunity for businesses and individuals to leverage the advantages of issuing, investing, and trading digital assets in the favorable regulatory environment of El Salvador.

Bitfinex Securities El Salvador will function independently from Bitfinex group’s current platform, Bitfinex Securities AIFC, managed by Bitfinex Securities Limited.

Bitfinex continues to expand its global reach. In 2022, Bitfinex’s security token platform went live in Kazakhstan. The security token platform (STO) by Bitfinex, announced in September 2021, is now regulated under the Astana International Financial Center (AIFC) in Kazakhstan.

El Salvador, the first country to establish Bitcoin (BTC) as a legal tender, continues to forge its way in becoming a tech friendly hub. On April 1, Cointelegraph reported that the country had decided to eliminate all taxes on technology innovations. Salvadoran President Nayib Bukele believes that winding down tax requirements will expedite technological development.

Razer gaming incubator zVentures issues call for Web3 submissions

Gaming hardware giant Razer has issued a call for Web3 gaming submissions through its zVentures corporate venture capital arm.

Razer, a U.S.-Singaporean consumer electronics company best known for its gaming hardware and peripherals, has sent out a call for new Web3 partners and game submissions.

Citing the market need for quality games built on blockchain technology, a zVentures blog post details Razer’s push for increased developer involvement.

“We believe that the foundation of any successful game (be it Web 2.0 or Web 3.0) is immersive and engaging gameplay,” reads the blog post, which goes on to state that “many blockchain games on the market today focus primarily on utilizing blockchain technology rather than creating an engaging and enjoyable gameplay experience, resulting in a lack of player interest and retention.”

We’re excited to announce the zVentures Web 3 Incubator for game companies & developers. By supporting companies in the creation of Web 3 games, our program aims to drive the growth & adoption of blockchain technology in the industry. Submit your pitch: https://t.co/m65x3AsBiC pic.twitter.com/CN1sMZuBKP

— R Λ Z Ξ R (@Razer) April 11, 2023

Razer’s zVentures was established in 2016 as a venture capital fundraising arm intended to spur growth and innovation in the gaming industry — a market some analysts now claim is worth more than $300 billion globally. By comparison, the worldwide blockchain market is expected to surpass $100 billion by 2028, assuming it reaches its predicted compound annual growth rate of 55.8%. The growth of blockchain gaming is expected to be aided by major tech companies entering the space. Among them are IBM, Intel and Amazon Web Services.

According to zVentures, the incubator is looking for projects from new developers with a focus on “gameplay experience first,” as well as submissions from established industry veterans with a proven track record in creating “successful Web 2.0 games as they transition to incorporating blockchain technology and enter the Web 3.0 ecosystem.”

Utility and long-term profits top reasons for NFT purchases: CoinGecko study

People purchase NFTs for various reasons, but according to a new survey from CoinGecko, the majority buy them for utility and long-term profits.

Utility and long-term profits have been ranked as the top reasons for buying nonfungible tokens (NFTs), according to a survey conducted by CoinGecko and Blockchain Research Lab.

An April 10 CoinGecko report found most considered how much utility an NFT collection offers and the benefits of holding the token before buying, with over 77% of respondents saying using an NFT for its “intended function” had some level of importance out of the 11 listed reasons for buying an NFT.

However, 15.7% responded they were “neutral” about utility, and 6.7% felt it was “not important” in the decision-making process before buying an NFT.

*The survey recorded 343 responses from NFT and crypto users who ranked their top reasons for buying NFTs. Source: CoinGecko*

The potential for long-term profits came in as the second most crucial factor, with just over 76% of respondents giving importance to selling their NFTs at a higher price later on.

Some NFTs have sold for millions in the past, but the market has experienced a severe downturn in step with the broader crypto market. Still, the NFT market is expected to hit $230 billion in value by 2030.

*Survey respondents ranked 11 reasons for buying NFTs by importance.* *Source: CoinGecko*

The third most important reason people bought NFTs was to participate as a stakeholder in a decentralized autonomous organization, with 72.9% motivated by the opportunity to gain a stake in such a project.

Other high-ranking reasons included enthusiasm for technology, community involvement and enthusiasm for an NFT collection’s business or artwork.

The reason that ranked as the least important on the list was “disrupting established structures or industries,” which was listed as a top reason for buying by 59.5% of respondents.

Overall, all 11 listed reasons were more heavily rated as having some level of importance rather than being rated neutral or not important.

The results were taken from 343 responses examined by CoinGecko and the Blockchain Research Lab, which were received during a survey conducted from December 2022 to January 2023.

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