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🦄 Recap: DeFi Week of Dec. 5
Whoa. Just when you think the NFT story couldn’t get any crazier, or more interesting, along comes a week like this one. It was a nova of NFT news. Right at the top, you have to read Brady Dale’s story on the intellectual property split that’s riven the space between Bored Ape Yacht Club and CryptoPunks. We always suspected copyright would become a big issue, and now it has with two of the most popular NFT offerings on the planet.
Meantime, Sam Haig covered the latest episode in the astounding saga of Ross Ulbricht, the early Bitcoin enthusiast who descended into the dark web to create a crypto-fueled emporium for contraband and is now serving not one but two life sentences for his crimes. A DAO devoted to releasing Ulbricht from his “disproportionate sentence” made a $6M bid for his jailhouse NFT art.
And Owen Fernau reported on how the NFTs from the Wizards & Dragons game has skyrocketed. There was more: An analysis of OpenSea data showed how a tiny elite was scooping up most of the profits in the secondary market. On the research side, DappRadar fired in with the definitive treatise on the metaverse and its cross-pollination with NFTs and blockchains.
On the tutorial front, the indefatigable Robin Schmidt and his crew produced invaluable primers on market volatility and how to get into DeFi. And in The Real Vision v. The Defiant episode this week the debate focused on stablecoins and what might happen on the regulatory front. Whoa indeed. Enjoy!
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📬 Inbox Dump #35
Hello Defiers! Welcome to Inbox Dump where we include the updates and announcements that flood our DMs each week and didn’t make it to The Defiant’s content platforms. Sometimes announcements here didn’t meet the bar to become a news story, sometimes they may have slipped through the cracks, or they came late and we haven’t had a chance to cover.
At The Defiant we cover the most important DeFi-related news and developments but we know many of you are hunting for projects before they are fully developed and before they are newsworthy. Our goal with this installment of the newsletter is to help you find them. Look at this as the starting point to DYOR.
We also include a compilation of DeFi and crypto funding rounds in the past week so you have these in one handy place.
Keep in mind these have been unedited. With that —here we go!
[This post is exclusive to subscribers]
In which Brady Dale plumbs the intellectual property landscape in NFTs and reports on the bifurcation of the space.
Is the Bored Apes Yacht Club coming for CryptoPunks? On Monday’s seven day table on NonFungible.com, Bored Apes had posted $59.1M in sales versus CryptoPunks $17.5M. Worse, the vaunted floor price — which follows the lowest price of the most common NFTs in a set — for both projects looks as though it might converge, with Apes rising and Punks falling. The Punks floor sat at 68.69 ETH on Monday, down from 90 ETH on Nov. 8.
Meanwhile, Bored Apes’ floor price was 52 ETH, well up from 30.5 ETH on Nov. 6. What’s behind the change? Prices are always anyone’s guess, but it seems like part of Crypto Twitter believes it’s because the Ape’s creators, Yuga Laps, conferred something on their holders of true and enduring value: the intellectual property (IP) rights to the underlying artwork of the NFT.
Punk4156, one of the creators behind NounsDAO, tweeted, “It’s not about copyright vs no copyright, it’s about making the pixels as censorship resistant as the token they’re attached to.” He wrote that the IP rights ultimately caused him to turn away. “I love punks, but the copyright issue kind of broke my heart,” he tweeted.
In latest exclusive report for The Defiant, DappRadar describes how economics, blockchain, currencies, and citizens work and play in the emerging metaverse.
Ever since Facebook, the sixth most valuable company in the world, announced its corporate rebranding to Meta, the metaverse concept has gone mainstream. The truth is that the metaverse is nothing new. The author Neal Stephenson coined the term almost 30 years ago in his seminal sci-fi novel Snow Crash. The idea of a parallel virtual reality where individuals can play and socialize remotely was further popularized by Ernest Cline’s Ready Player One, which Steven Spielberg turned into a blockbuster movie in 2018.
But what exactly is the metaverse? How will the blockchain-based metaverse differ from a traditional metaverse? Why are virtual lands and cryptocurrencies like SAND and MANA exploding to all-time highs? And what impact might the blockchain metaverse have in our current way of living?
The metaverse is an abstract concept, one that has different meanings for every individual and even every organization. Nonetheless, there are some elements that we can all agree a metaverse must include.
First, it’s a digital place, a parallel virtual augmented reality that expands beyond the physical world. Also, it is a place where people gather to socialize and share immersive experiences that range from building your own museum to showcasing digital art to assisting a virtual concert or even playing one of the games that are being developed.
In this guest column, Mark Lurie argues that DAOs are indeed reinventing corporate structure but they should take care not to expose their members to unlimited liabilities.
The latest explosive trend in DeFi is distributed autonomous organizations, commonly known as DAOs. Hundreds of them have popped up in the last few years, and today they collectively control around $12 billion in assets and govern products with $98 billion in total locked value.
This innovation laid the groundwork for a transformative new form of human organization. The breakthrough is that DAOs ensure adherence to monetary and governance rules without the need for a judiciary or central government to enforce compliance.
The implications of this shift are hard to overstate. All established businesses and organizational structures — LLCs, corporations, partnerships, non-profits, and so on — require the threat of governmental force to ensure compliance with laws, contractual terms, and financial regulations. DAOs, on the other hand, enable coordinated, collective financial activity free from the oversight of a functioning judiciary or law enforcement body. This may seem like a minor development to those of us living under the rule of law, but it represents a sea-change for much of the world.
Artists Cry Foul Over Sold Out NFT Drop of Stormtrooper Images The Art Wars Collection, a series of NFTs depicting painted Stormtrooper helmets from the Star Wars franchise, has come under fire for launching without the consent of the artists who created the original works.
FreeRossDAO Makes Winning $6M Bid for NFT Art by Silk Road Convict Ulbricht FreeRossDAO has won the auction for NFT art created by Ross Ulbricht, the convicted criminal mastermind behind the Silk Road darknet emporium.
0xMaki Says he “Won’t be Returning” to SushiSwap as it Wallows in a Leadership Crisis SushiSwap has been mired in drama recently, with accusations flying, factions reportedly forming in the team and its CTO resigning. One of token holders biggest hopes throughout — as price and volume slips — has been that core developer 0xMaki would return. Those hopes may be dashed.
Balancer DAO’s Treasury Is Rapidly Diversifying Across DeFi The Balancer community has begun integrating itself with other decentralized finance protocols by trading its governance tokens for those of other DAOs, also known as treasury swaps.
Sudoswap to Test a DEX for Swapping NFTs In a plan that may advance the idea that NFTs are tradable assets, Sudoswap, a marketplace for nonfungible tokens, plans to launch an automated market maker (AMM)-based decentralized exchange for swapping NFTs.
NFT Game Launches Encrypted Messaging for Ethereum Wallets The team behind Parallel, an NFT-based sci-fi card game, launched an end-to-end encrypted messaging service for Ethereum wallets called inb0x on Dec. 7.
Exclusive: Enso Finance Plans Vampire Attack on Six Major Index Projects Enso Finance, a social trading platform, is planning a vampire attack on six major index products in the crypto space. Enso’s intended victims are Index Coop, Tokensets, PieDAO, dHEDGE, Powerpool, and Indexed. The attack will begin on Dec. 9, according to a teaser video released on the protocol’s Twitter.
Powerful International Bank Body Urges ‘Systemic Regulation’ of DeFi Calling DeFi’s decentralization “an illusion,” the Bank for International Settlements (BIS) urged policymakers worldwide to apply “systemic regulation” of the rapidly growing industry and the broader non-bank financial sector.
New NFTs Will Let Virtual Museum Show Art Across the Metaverse The metaverse is vast, but it’s not yet interoperable. A new series of NFTs dropping early next year could bridge its many universes, at least for art curators. The Museum of Crypto Art (MOCA) has a plan to show artwork in as many corners of the metaverse as it can.
Wizards & Dragons NFTs Leapfrog Bored Apes in Latest Play-to-Earn Rally NFTs for Wizards & Dragons, a new project, has shot to the number two slot in the OpenSea weekly volume rankings at 8650.59 ETH as of Dec. 6. That’s quadruple the volume than the migrated form of Wolf Game, which Wizards and Dragons forked. It’s also leapfrogged Bored Apes Yacht Club and CloneX NFTs.
Tiny Minority of OpenSea Users Scoop Up Most NFT Profits: Report Only 5% of OpenSea users are scooping up the bulk of the profits in secondary trades executed on the NFT platform, according to Chainalysis, a blockchain intelligence firm.
DAO Raises $5M for NFT Art by Silk Road Convict Ross Ulbricht Ross Ulbricht, the incarcerated founder of the criminal darknet market Silk Road, has attracted millions of dollars worth of bids for his nonfungible token (NFT) art.
Market Dispatch: Metaverse and GameFi Sectors Drop 30% in Crypto Selloff In a stretch when the crypto market suffered a heavy selloff, the GameFi, metaverse, and Play-to-Earn categories were among the hardest hit, with each shedding more than 30% of their value amid heavy drawdowns from widely-held names such as Axie Infinity, The Sandbox, and Decentraland.
Uniswap Defends Sharing Wallet Addresses with Research Firm as ‘Common Practice’ Uniswap, the leading decentralized exchange by both total value locked (TVL) and volume, has been criticized for its partnership with blockchain intelligence firm TRM Labs.
Artist Behind Bored Ape Yacht Club to Unveil New NFTs at Art Basel Seneca, the lead artist behind Bored Ape Yacht Club (BAYC), one of the most celebrated NFT projects, will be debuting five NFTs on Saturday at Art Basel in Miami.
Thanking all the amazing Defiers for the support and love this week (and always)!
🧑💻 ✍️ Stories in The Defiant are written by Brady Dale, Owen Fernau, Sanuel Haig, Bailey Reutzel, and yyctrader, and edited by Edward Robinson, yyctrader, Bailey Reutzel, and Camila Russo. Videos were produced by Robin Schmidt and Alp Gasimov. Podcast was led by Camila, edited by Alp.
The Defiant is a daily newsletter focusing on decentralized finance, a new financial system that’s being built on top of open blockchains. The space is evolving at breakneck speed and revolutionizing tech and money. Sign up to learn more and keep up on the latest, most interesting developments. Subscribers get full access, while free signups get only part of the content.Click here to pay with DAI (for $100/yr) or sub with fiat by clicking on the button above ($15/mo, $150/yr.