Redefining Digital Currency with AI Profits and Orbs

Market Overview

ChatGPT Creators begin trading their Worldcoin (WLD) 

The idea for Worldcoin originated in 2020 when co-founders Alex Blania, Sam Altman, and Max Novendstern envisioned widespread distribution of a new digital currency with the idea of equitably distributing AI-generated profits and to address income inequality through its unique World ID feature utilizing Orbs. However, this Worldcoin (WLD) should not be confused with the existing Worldcoin (WDC) cryptocurrency deployed in May 2013 and still in circulation today (https://coinmarketcap.com/currencies/worldcoin/). 

And this begs the question of why people who are supposed to be intelligent individuals use the same name for their new digital currency as an existing cryptocurrency that has been in existence for a decade? Lack of due diligence? Maybe (see webpage notice from WDC below):

It is important to note there is are major differences between WLD and WDC as digital assets:

1) WLD, co-created by Sam Altman, is an ERC-20 Layer 2 (L2) contract minted token digital asset coded as a currency. The introduction of the token project is finalizing its migration to the Optimism network, an L2 scaling side chain on Ethereum that utilizes rollups for L2 contract execution and bridges for interoperability with non-Ethereum distributed ledgers. I believe there are some serious problems regarding the security architecture as there is no cryptography in L2 protecting token assets. Even the airdrop of Optimism’s governance token (OP) was a bit of a disaster. More on the problems side Optimism later.

2) On the other hand, WDC is an actual cryptocurrency, meaning it is a Layer 1 (L1) digital currency asset that is protected by cryptographic protocols by using consensus protocols such as Scrypt (pronounced “ess crypt”) PoW (Proof-of-Work), which is also used in Litecoin, Dogecoin, and several other cryptocurrencies. For context, the Bitcoin network uses the Hashcash PoW cryptographic consensus protocol.

Below is the trading chart from 7/25/2023 for WLD:

The introduction of the Optimism deployed WLD ERC-20 currency token also means the project is finalizing its Orb availability, which is ramping up worldwide. The Orb will be used by developers that have access to the Worldcoin software development kit (SDK) to create tools and apps using the World ID, the project’s identity software. In order to be fully verified, users must scan their irises using the Orb, a tailor-made device that uses the scan to create a unique identifier, but doesn’t process or store any related data locally according to Tools for Humanity, the company manufacturing the Orb. The Orbs are reportedly being manufactured in Germany.

The Orb scans will be tokenized into an ERC-20 token on Optimism, alongside the currency ERC-20 token, and will also employ AI. The use of biometric data has raised eyebrows according to Tools for Humanity representatives, but the company says it uses artificial intelligence to create unique codes to represent the scans and complies with “very, very local and very specific rules and regulations in each of the markets where there’s an Orb.”

Up to now, some 200 Orbs have been made available with the firm planning to make 1,500 Orbs by the end of the year, and add the option to book appointments as opposed to pop-ups. According to the company’s whitepaper, the Orbs have scanned over 2 million people: 32% of them in each of Asia and Africa, 19% in Latin America, and 17% in Europe.

To circle back to the security issues noted above, L2 is not a cryptographically secured layer in the stack, and the stacking of a mainnet (L1) with an L2 side chain utilizing a DID (Digital IDentification) contract, a currency contract token, and ZK rollups with the potential to connect with bridge contracts to other distributed networks, in my experience as a DLT architectural engineer, is a major security concern. All one has to do is look at the many distributed finance exploits that have taken place in just the past two year and they have involved exploits of the contracts that were developed for the L3 DApp (Distributed Application) layer – this is where a contract is interfaced with a website and what many erroneously refer to as Web3. This looks like a playground for cybercriminals because I have seen no published penetration testing of the web GUI (Graphic User Interface) or security audits of the underlying contracts.

NFT Market News:

OpenSea, a leading Non-fungible token (NFT) marketplace, has introduced a new feature, “Deals,” aiming to facilitate peer-to-peer NFT trading. This tool allows enthusiasts to trade NFTs directly and incorporate wrapped ether (WETH) to make their deals more appealing. The innovative feature is powered by OpenSea’s in-house NFT protocol, Seaport, and seeks to provide a secure environment for NFT trading, helping to avoid potential pitfalls of dubious direct messages and questionable trading platforms.

To start a deal, users can enter their trading partner’s username, ENS name, or wallet address, select up to 30 NFTs, and decide the amount of WETH they want to add to the swap, if any. After this, they choose the assets they wish to trade and submit the deal for evaluation. Currently, OpenSea requires no transaction fees for “Deals” swaps and doesn’t demand creator royalties. This initiative aims to simplify the NFT swapping process and grow the user base in NFT communities, while maintaining safety and reliability of trades on OpenSea.

Source: https://www.coindesk.com/web3/2023/07/20/opensea-makes-deals-launches-peer-to-peer-nft-swaps/

Latest News:

WELCOME FRIENDS: Hundreds of institutions and prominent individuals have invested directly in crypto, adopted the value thesis, or started building technology to support digital assets since Wave started tracking these developments in late 2020. Now the rise of the Metaverse, Decentralized Finance (DeFi), Non-Fungible Tokens (NFTs), and Decentralized Autonomous Organizations (DAOs) is driving mainstream adoption of blockchain technologies everywhere we look. We’re continuing to keep track of it every week here:

• The development firm behind the Chainlink protocol and its native LINK token has gone live with its cross-chain protocol, aimed at providing interoperability between traditional financial firms and both public and private blockchains. Chainlink’s Cross-Chain Interoperability Protocol (CCIP) launched with early access on Ethereum, Arbitrum, Optimism, Polygon, and Avalanche. The service uses Swift’s messaging infrastructure, which is used by over 11,000 banks around the globe to facilitate international payments and settlement. BNY Mellon, BNP Paribas, Citi, and various other financial institutions are reportedly exploring the use of CCIP.
• Gnosis Card, which uses the Visa payment system, will be a debit card directly connected to a user’s on-chain account, built on the Gnosis Pay decentralized payment network. Users’ wallets – in this case smart contract-based Safe wallets – will act like a bank account for the debit card, and every Gnosis Card will be connected to the user’s Safe account. Gnosis Pay will also operate as a layer 2 to the Gnosis chain, therefore enabling faster and cheaper transactions.
• The South Korean commercial banking giant Shinhan Bank completed an EMV-compatible feasibility test for stablecoin remittance payments on the Hedera network. 

REGULATORY ROUNDUP: We’re living through the era of regulatory recognition of digital assets. The legislation, litigation, and regulation happening today will dictate the entire future of our industry, and we have a historic chance to shape those changes by staying informed and providing public commentary.

• The United Kingdom’s HM Treasury has rejected a House of Commons Treasury Committee recommendation to classify crypto trading as gambling, stating that it “firmly disagrees” with it. A cross-party Committee of MPs proposed the law change in May 2023.
• U.S. House Republicans introduced a new digital assets oversight bill on Thursday that aims to establish a regulatory framework to protect investors in the crypto sector. “Today’s introduction of the Financial Innovation and Technology for the 21st Century Act marks a significant milestone in the House Committees on Agriculture and Financial Services efforts to establish a much-needed regulatory framework that protects consumers and investors and fosters American leadership in the digital asset space,” said Chairman of the House Committee on Agriculture Rep. Glenn “GT” Thompson (R-Pa.) in a statement. The bill, one of several introduced in recent years that aim to create comprehensive rules for digital assets, comes at a time when a perceived lack of regulatory clarity and a wave of aggressive enforcement actions are spurring established crypto businesses to consider leaving the U.S., and deterring startups from forming there.

Disclaimer: The views and opinions expressed herein are those of the author alone and do not represent Wave Digital Assets LLC or any of its affiliates (collectively, “Wave”). The author and/or Wave may hold investment positions in some of the assets discussed. Nothing in this material or linked information should be interpreted as an offer or recommendation to buy, sell or hold any security or other financial product. This material is not intended to provide accounting, legal or tax advice. Certain information contained herein has been obtained from third-party sources, has not been independently verified and should not be viewed as being endorsed by Wave. Such information is believed to be accurate as of the date of its publication. No representation or warranty is made, express or implied, with respect to the accuracy or completeness, and readers should not place undue reliance on the information contained or linked to herein. Certain statements in this material provide predictions and there is no guarantee that such predictions are currently accurate or will ultimately be realized. Past performance is not indicative of future results.

Wave is federally regulated by the US Securities & Exchange Commission as an investment adviser. Registration with a federal or state authority does not imply a certain level of skill or training. Additional information including important disclosures about Wave Digital Assets LLC also is available on the SEC’s website at www.adviserinfo.sec.gov. Or, learn more information about Wave at www.wavegp.com.

Ripple (XRP) Wins Landmark Ruling Against SEC

Market Overview: 

Ripple (Partially) Wins

Ripple Labs, the company behind the Ripple decentralized ledger and associated asset XRP, won a landmark ruling against the SEC. The regulator had alleged, in part, that XRP was a security and that therefore Ripple Labs’ sales of XRP constituted unregistered securities offerings. A federal judge struck down most of the SEC’s claims, ruling that XRP itself is not a security and that certain sales and distributions of XRP by Ripple Labs did not constitute securities offerings. However, nearly $730 million of sales of XRP sold in “institutional sales” , to institutions such as hedge funds, were securities transactions that should have been properly registered with the SEC. XRP has soared 66% since the news. The SEC can appeal the decision but has not yet done so.

Unjail Yourself

Alex Mashinsky, the founder and former CEO of bankrupt Celsius Network, was arrested in New York last week. Mashinsky, an alleged conman who also claimed to have invented Voice Over internet Protocol (VOiP), is alleged to have engaged in a “years-long scheme to mislead customers”. He is being criminally prosecuted by the Department of Justice while simultaneously defending himself against lawsuits by the SEC, CFTC, FTC, and a slew of other state and federal prosecutors. According to the complaint, Mashinsky’s schemes targeted small retail investors, and wiped out the savings of millions of people when Celsius collapsed. 

Open Interest

The Bank of International Settlements reported that 93% of banks worldwide are exploring stablecoins or central bank digital currencies. Nearly 20% of banks said they would be willing to launch a token in the next three years. Interest in the stablecoins has been one of the most enduring effects of the 2021 crypto boom, with banks recognizing the efficiency and cost-savings that such technologies can add to their outdated systems. 

Surveillance 

The CBOE announced a Surveillance Sharing Agreement with Coinbase to support five aspiring Bitcoin ETF issuers – Wise Origin, WisdomTree, VanEck, Invesco Galaxy, and ARK 21Shares. The SEC has previously claimed that a lack of rigorous Bitcoin market surveillance prevents the approval of spot BTC ETF. The announcement sent shares of Coinbase surging.

MATIC Upgrades

Polygon, one of the broadest developers of EVM-based networks, proposed a revamp of their native MATIC token to better support their multiple protocols. MATIC is currently used to provide economic security on the Polygon PoS chain. With the launch of Polygon zkEVM, alongside Polygon Miden and Polygon Supernets, the developer wants to extend MATIC’s security umbrella and economic utility across the entire ecosystem. Enter POL, an upgraded version of MATIC that can be used natively across Polygon networks. More details here.

Latest News:

WELCOME FRIENDS: Hundreds of institutions and prominent individuals have invested directly in crypto, adopted the value thesis, or started building technology to support digital assets since Wave started tracking these developments in late 2020. Now the rise of the Metaverse, Decentralized Finance (DeFi), Non-Fungible Tokens (NFTs), and Decentralized Autonomous Organizations (DAOs) is driving mainstream adoption of blockchain technologies everywhere we look. We’re continuing to keep track of it every week here:

• Axelar and Microsoft have teamed up to develop and offer blockchain interoperability products. As part of the deal, Axelar’s cross-chain stack will be available to Microsoft customers via the Azure cloud marketplace.
• Argentina welcomed its first Bitcoin futures contract on July 13, just three months after the country’s securities watchdog approved the underlying index as part of a strategic innovation agenda. According to Matba Rofex, the trading platform behind the investment vehicle, it is the first Bitcoin futures contract in Latin America.
• Google Cloud recently partnered with Voltage, an infrastructure provider specializing in the Bitcoin Lightning Network. The partnership will allow one of the world’s largest cloud computing providers to roll out Bitcoin-based services worldwide while assisting the expansion of Voltage’s operations.
• The European Commission on Tuesday set out its plans for the metaverse, confirming leaked plans previously reported by CoinDesk that would see new standards and governance for virtual worlds. The commission isn’t proposing any new laws and is vague about funding for what it sees as the next generation of the internet, but politicians are eager for the bloc to make the most of a technology they see as having economic and ethical salience.

REGULATORY ROUNDUP: We’re living through the era of regulatory recognition of digital assets. The legislation, litigation, and regulation happening today will dictate the entire future of our industry, and we have a historic chance to shape those changes by staying informed and providing public commentary.

• Congressman Ritchie Torres has asked for two separate independent investigations of the U.S. Securities Exchange Commission (SEC) for its “haphazard and heavy-handed approach to digital assets”. Rep. Torres (D-N.Y.) requested investigations into the SEC granting a special purpose broker-dealer (SPBD) licence to Prometheum, “a trading digital assets platform that does not trade digital assets,” under unusual circumstances, and for its failure to create a rigorous but workable process for registering real-world digital assets platforms.
• In a tweet on July 13, Justin Slaughter, policy director at research firm Paradigm and a former SEC senior advisor, expressed his opinion on the future of the Lummis-Gillibrand Responsible Financial Innovation Act bill. He stated, “This bill is less likely to pass than McHenry-Thompson for one simple reason: neither Lummis or Gillibrand lead a Senate committee.”, indicating the bill may not pass the U.S. Congress due to the lack of committee leadership from its sponsors. The Senators Cynthia Lummis and Kirsten Gillibrand-sponsored bill seeks to provide regulatory clarity for the emerging crypto industry. It grants the Commodity Futures Trading Commission (CFTC) oversight functions over crypto exchanges.

Disclaimer: The views and opinions expressed herein are those of the author alone and do not represent Wave Digital Assets LLC or any of its affiliates (collectively, “Wave”). The author and/or Wave may hold investment positions in some of the assets discussed. Nothing in this material or linked information should be interpreted as an offer or recommendation to buy, sell or hold any security or other financial product. This material is not intended to provide accounting, legal or tax advice. Certain information contained herein has been obtained from third-party sources, has not been independently verified and should not be viewed as being endorsed by Wave. Such information is believed to be accurate as of the date of its publication. No representation or warranty is made, express or implied, with respect to the accuracy or completeness, and readers should not place undue reliance on the information contained or linked to herein. Certain statements in this material provide predictions and there is no guarantee that such predictions are currently accurate or will ultimately be realized. Past performance is not indicative of future results.

Wave is federally regulated by the US Securities & Exchange Commission as an investment adviser. Registration with a federal or state authority does not imply a certain level of skill or training. Additional information including important disclosures about Wave Digital Assets LLC also is available on the SEC’s website at www.adviserinfo.sec.gov. Or, learn more information about Wave at www.wavegp.com.

Bitcoin Open Interest Surges as BlackRock ETF Filing Sparks Excitement

Market Overview: 

Crypto Round up

AAVE Governance Proposal

Aave, the popular decentralized lending protocol, is undergoing a significant governance decision. A proposal has been put forth for Aave token holders to vote on the conversion of 1,600 ETH from the protocol’s treasury. The plan involves transforming the ETH into wstETH and rETH, potentially adding value and expanding the protocol’s offerings. https://www.cryptotimes.io/aave-holders-vote-on-governance-proposal-for-eth-conversion/ 

DJED Stablecoin Loses Peg on Cardano

In the realm of stablecoins, DJED, the algorithmic stablecoin built on the Cardano blockchain, has experienced a setback. The stablecoin failed to maintain its reserve ratio within the desired range of 400% to 800%, causing it to lose its peg. The team behind DJED is working to address this issue and restore stability. https://u.today/cardanos-djed-stablecoin-faces-critical-liquidity-problem 

Bitcoin Open Interest Surges with BlackRock ETF Filing

Bitcoin derivatives have been making headlines once again. Following BlackRock’s filing for a Bitcoin exchange-traded fund (ETF), open interest in Bitcoin has jumped by 25%, reaching its highest level since March 2022. This development highlights the growing interest and anticipation surrounding Bitcoin ETFs. 

dYdX Launches Testnet for Version 4

dYdX, the decentralized exchange protocol, has unveiled its testnet for Version 4, which aims to be “fully decentralized.” This upgrade introduces an on-chain order book and matching engine, enhancing the user experience and reinforcing the protocol’s commitment to decentralization. https://blockworks.co/news/bitcoin-open-interest-blackrock 

NFT Marketplace Blur Introduces v2 Updates

Exciting developments are happening in the NFT space as well. Blur, an NFT marketplace, has announced the launch of its v2. The update brings two key enhancements: trades now require 50% less gas, reducing transaction costs, and the introduction of Trait bidding, offering new opportunities for collectors and creators. https://www.galaxy.com/research/insights/nft-marketplace-update/ 

Traders Shift from Decentralized to Centralized Exchanges

Recent trends indicate a shift in trading preferences from decentralized exchanges (DEXs) to centralized exchanges (CEXs). The monthly trading volumes on DEXs, as a percentage of CEX volumes, have decreased from 22% in May to approximately 14% in early July. This transition showcases the evolving dynamics and growing prominence of centralized trading platforms. https://tokenterminal.com/weekly-fundamentals/exchanges-dex-69 

NFT Market News:

Oasys Unveils Game-Changing Updates and Partnerships for Blockchain Gaming

Oasys, a gaming-optimized blockchain platform, unveiled major updates during its Oasys Special Event at IVS Crypto 2023. The event featured presentations from industry giants like Ubisoft and Com2uS, who announced their plans to launch Web3 games on Oasys. Com2uS/XPLA partnership aims to create a thriving blockchain gaming ecosystem in Japan, integrating the highly anticipated AAA game “Summoners War: Chronicles” into Oasys. Meanwhile, Ubisoft announced its first-ever collaboration with Oasys to develop “Champions Tactics: Grimoria Chronicles,” further solidifying Oasys’ position as a leading blockchain platform for gaming. With updates on existing titles and partnerships, Oasys continues to revolutionize the gaming industry, fostering a supportive ecosystem for developers and offering a seamless user experience.

In addition to partnerships, Oasys introduced its second NFT project in collaboration with Bandai Namco Research Institute, focusing on the concept of “AI lifeform X NFT.” Furthermore, the platform announced the development of a dedicated wallet specialized for the Oasys blockchain, enhancing the overall gaming experience. With strong alliances and a pipeline of updates and titles, Oasys is poised to become the dominant force in blockchain gaming, driving mainstream adoption and revolutionizing the industry with its gaming-optimized blockchain.

https://mpost.io/ubisoft-and-com2us-announce-plans-for-web3-games-on-oasys/

https://egamers.io/oasys-unveils-ambitious-blockchain-partnership-with-ubisoft-and-com2us/ 

Latest News:

WELCOME FRIENDS: Hundreds of institutions and prominent individuals have invested directly in crypto, adopted the value thesis, or started building technology to support digital assets since Wave started tracking these developments in late 2020. Now the rise of the Metaverse, Decentralized Finance (DeFi), Non-Fungible Tokens (NFTs), and Decentralized Autonomous Organizations (DAOs) is driving mainstream adoption of blockchain technologies everywhere we look. We’re continuing to keep track of it every week here:

• Mastercard is setting up a testbed, dubbed the Multi-Token Network (MTN), which will begin by exploring tokenized bank deposits, and which will be available in beta mode this summer in the U.K.
• The NEAR Foundation, the non-profit behind the ecosystem development of the NEAR protocol, is joining with Alibaba Cloud, the Chinese tech giant’s arm for computing and storage, to accelerate Web3 growth in Asia and the Middle East.
• The Hong Kong government established a task force for promoting Web3 development. The task force is chaired by Financial Secretary Paul Chan and is comprised of 15 non-official members from relevant sectors and key government officials along with financial regulators will participate.
• Shares of Bitcoin Depot, the world’s largest crypto ATM operator, more than doubled on their Nasdaq debut Monday following a merger with special purpose acquisition company (SPAC) GSR II Meteora (GSRM) that was valued at $885 million in August.
• Jinan, the capital of eastern China’s Shandong Province, has started encouraging the adoption of the country’s central bank digital currency (CBDC) by introducing digital yuan payments across all its bus routes.
• Cryptocurrency-friendly bank DBS is introducing new solutions for its customers in mainland China related to the digital yuan, also known as e-CNY.

REGULATORY ROUNDUP: We’re living through the era of regulatory recognition of digital assets. The legislation, litigation, and regulation happening today will dictate the entire future of our industry, and we have a historic chance to shape those changes by staying informed and providing public commentary.

• The U.S. Securities and Exchange Commission (SEC) will present its response to Coinbase’s first legal defense on July 13. The date for the hearing is now much earlier than expected, prompted by a “creative” defense tactic employed by Coinbase, where in the exchange filed its first response 40 days before the deadline of August 7.
• The Financial Services and Markets Act 2023, a reform bill in the United Kingdom, has been granted Royal Assent from King Charles, officially making it a law. Under this new law, cryptocurrency trading is recognized as a regulated financial activity. The amended Financial Services and Markets Act defines crypto assets as “cryptographically secured digital representation of value or contractual rights,” considering them as regulated financial instruments, products, or investments.
• Singapore is enforcing new crypto consumer protection measures as the city-state continues applying regulation to its burgeoning crypto industry. Chief among the new measures, the Monetary Authority of Singapore (MAS)—the country’s chief financial regulator—will enforce a ban on lending and staking for retail customers (individual traders, as opposed to institutional clients).
• The Seoul Southern District Court on Monday held the first preliminary hearing for Terraform Labs co-founder Daniel Shin and seven other former Terraform employees.
• Bitwage has halted USDC payments for US residents, citing ‘strict regulations’. The crypto payment company warned that users who fail to remove the stablecoin would have their wallet and bank accounts reset by July 13.

Disclaimer: The views and opinions expressed herein are those of the author alone and do not represent Wave Digital Assets LLC or any of its affiliates (collectively, “Wave”). The author and/or Wave may hold investment positions in some of the assets discussed. Nothing in this material or linked information should be interpreted as an offer or recommendation to buy, sell or hold any security or other financial product. This material is not intended to provide accounting, legal or tax advice. Certain information contained herein has been obtained from third-party sources, has not been independently verified and should not be viewed as being endorsed by Wave. Such information is believed to be accurate as of the date of its publication. No representation or warranty is made, express or implied, with respect to the accuracy or completeness, and readers should not place undue reliance on the information contained or linked to herein. Certain statements in this material provide predictions and there is no guarantee that such predictions are currently accurate or will ultimately be realized. Past performance is not indicative of future results.

Wave is federally regulated by the US Securities & Exchange Commission as an investment adviser. Registration with a federal or state authority does not imply a certain level of skill or training. Additional information including important disclosures about Wave Digital Assets LLC also is available on the SEC’s website at www.adviserinfo.sec.gov. Or, learn more information about Wave at www.wavegp.com.

CBDC Milestone, ETF Spotlight, Legal Updates, NFT Market Report, and More

Market Overview

Crypto Roundup

CBDC News

Reserve Bank of India is optimistic about its Central Bank Digital Currency (CBDC), expecting to reach a milestone of one million users by June.

ETF Spotlight

BITX, the first-ever leveraged Bitcoin Futures ETF in the U.S., has seen increased trading volumes. After achieving $500K in the initial 15 minutes post-launch, it has since recorded a trading volume of $4.2M.

Legal and Insolvency Updates

Nevada’s financial regulator has petitioned a court to place Prime Trust into receivership.

A Federal court in Washington D.C. has dismissed a motion by Binance seeking to curtail certain wording used by the SEC in its press releases.

NFT Market Report

NFTs have seen some declines as the floor price of Azuki Elementals has dropped to 1.65 ETH from its issue price of 2 ETH. Bored Ape NFTs have also reached an 18-month low.

Regulation Bulletin

The EU has arrived at a political agreement on amending the Capital Requirements Regulation and Directive. This includes introducing new regulations for crypto assets.

Security Alerts

Chibi Finance has disappeared from the Arbitrum network, taking with it $1M in an apparent ‘rug pull’. Q2 has witnessed more than $204M lost to DeFi hacks and scams.

Foundation Updates

Lastly, Sui Foundation has denied allegations of selling staking rewards on Binance.

NFT Market News

Chiru Labs, creators of the Azuki and Beanz NFT collections, is set to launch a new series of NFTs called ‘Elementals’. This collection will be comprised of 20,000 anime-themed digital collectibles designed by Skycrow, Tenn, Timugi, and Njo, adding a fresh element to the Azuki universe (BeInCrypto, 2023). The series will be divided into four unique domains: Fire, Lightning, Earth, and Water, each representing a distinct artistic element. The Dutch Auction sale of these assets will begin at 2 ETH, with the price dropping every five minutes until all Elementals are sold (Decrypt, 2023).

Since its launch in 2022, Azuki has become a significant player in the NFT space. Its collection of 10,000 unique assets, each featuring a distinctive character with a variety of randomized traits, has seen individual pieces sell for up to $1.4 million (BeInCrypto, 2023). In addition to this, Azuki has developed its own metaverse called ‘Hilumia’, where holders can engage in a range of virtual activities (BeInCrypto, 2023). The recent announcement of the Elementals NFTs has led to a 3% increase in trading sales volume for the Azuki collection, and the floor price has risen from $28,110 to $29,611 in just one day (BeInCrypto, 2023).

Sources:

BeInCrypto. (2023, June 26). Azuki to Launch Artistic Brilliance with 20K ‘Elementals’ NFTs.

Decrypt. (2023, June 26). Azuki Expands With New 20K Ethereum NFT Collection, Elementals.

Latest News 

WELCOME FRIENDS: Hundreds of institutions and prominent individuals have invested directly in crypto, adopted the value thesis, or started building technology to support digital assets since Wave started tracking this metric in late 2020. Now the rise of the Metaverse, Decentralized Finance (DeFi), Non-Fungible Tokens (NFTs), and Decentralized Autonomous Organizations (DAOs) is driving mainstream adoption of blockchain technologies everywhere we look. We’re continuing to keep track of it every week here:

• Banking giant JPMorgan has expanded its blockchain-based settlement token JPM Coin to euro-denominated payments. Since its inception in 2019, over $300 billion in transactions have been processed using JPM Coin, making it one of the most extensive uses of blockchain technology by a traditional financial institution, albeit still a drop in the bucket compared to the nearly ~$10T JPMorgan processes daily by conventional means. The system allows JPMorgan’s institutional clients to make wholesale payments between accounts around the world using blockchain tech as the rails. German tech firm Siemens conducted the first euro payment on the platform.
• Gibraltar-based crypto friendly private bank Xapo is to expand across India and the rest of South Asia in a sign of considerable expansion for the provision of cryptocurrency services in the region. Xapo is to begin accepting members across South Asia, offering services such as its USD offshore savings account offering 4.1% interest and a bitcoin wallet, offering 1% on BTC deposits.
• Top Japanese banking group Mitsubishi UFJ (MUFG) is reportedly holding discussions with stablecoin issuers to have them issue such tokens on the group’s blockchain platform. MUFG is also engaging entertainment companies and non-financial businesses on stablecoin projects.
• HSBC Hong Kong, the largest bank in the special administrative region of China, now allows customers to trade bitcoin and ether exchange-traded funds (ETFs) listed on Hong Kong’s stock exchange.
• Warner Music Group has formed a new music accelerator program in partnership with Polygon Labs that seeks to bolster decentralized music-related apps and projects built on the Polygon network.

Disclaimer: The views and opinions expressed herein are those of the author alone and do not represent Wave Digital Assets LLC or any of its affiliates (collectively, “Wave”). The author and/or Wave may hold investment positions in some of the assets discussed. Nothing in this material or linked information should be interpreted as an offer or recommendation to buy, sell or hold any security or other financial product. This material is not intended to provide accounting, legal or tax advice. Certain information contained herein has been obtained from third-party sources, has not been independently verified and should not be viewed as being endorsed by Wave. Such information is believed to be accurate as of the date of its publication. No representation or warranty is made, express or implied, with respect to the accuracy or completeness, and readers should not place undue reliance on the information contained or linked to herein. Certain statements in this material provide predictions and there is no guarantee that such predictions are currently accurate or will ultimately be realized. Past performance is not indicative of future results.

Wave is federally regulated by the US Securities & Exchange Commission as an investment adviser. Registration with a federal or state authority does not imply a certain level of skill or training. Additional information including important disclosures about Wave Digital Assets LLC also is available on the SEC’s website at www.adviserinfo.sec.gov. Or, learn more information about Wave at www.wavegp.com.

The Convergence of Traditional Finance and Crypto

Market Overview by Josh Burke, DeFi Trader

Crypto Roundup

Crypto markets are rallying as institutional investors show increasing interest in digital assets. Notable tradfi firms like BlackRock and WisdomTree have filed for spot Bitcoin ETFs, signaling their intention to enter the digital asset space. Additionally, Deutsche Bank is seeking a digital asset custody license, highlighting the industry’s recognition of the need for secure storage solutions.

In other news, a new institutional crypto exchange has been launched with the backing of prominent names such as Fidelity, Schwab, and Citadel. This development signifies the growing involvement of established financial institutions in the cryptocurrency sector, further validating its potential. Traditional banks are also embracing blockchain technology, with Bank of China International (BOCI) and the European Investment Bank (EIB) issuing on-chain bonds for transparency and efficiency.

Furthermore, Cardano has deployed its latest node upgrade, enhancing its blockchain’s capabilities. The European Investment Bank issued a SEK 1B ($93M) green bond on the so|bond blockchain platform, while Binance Coin (BNB) released a Layer 2 EVM Testnet based on Optimism for faster and cheaper transactions. Ethereum developers are considering increasing the validator limit to address wait times, and Japanese exchanges are advocating for regulatory ease on margin trading restrictions.

On the regulatory landscape, the UK’s House of Lords passed the Financial Services and Markets Bill, potentially recognizing cryptocurrency as a regulated activity and stablecoins as legal payment methods. Solana’s NFT activity has doubled, averaging 60,000 daily transactions in May. 

NFT Market News by Gerard Barile, Principal  

Nike has sparked anticipation in the gaming community by teasing an upcoming NFT sneaker hunt called “Airphoria” in the popular online game Fortnite. The short promotional video shared across Nike’s social media channels featured the logos of Fortnite, Nike’s Air Max sneakers, and its Web3 platform, .Swoosh, alongside Epic Games’ Unreal Engine logo. The collaboration presents a significant opportunity for Nike to introduce Web3 technology to traditional gamers, given Fortnite’s vast player base of over 242.9 million active users in the past 30 days. While specific details about the sneaker hunt and the integration of NFTs remain undisclosed, speculation within the NFT community suggests that Nike may have utilized Fortnite Creative 2.0 to create an NFT-related game​.

Nike’s .Swoosh NFT unit has been actively exploring integration within the gaming space. Earlier in June, it was announced that Nike’s NFTs would be integrated into games developed by EA Sports, known for popular franchises like FIFA​. However, the specific EA Sports games featuring Nike NFTs have yet to be confirmed​. The involvement of .Swoosh in the Airphoria event, coupled with Epic Games’ positive stance on NFT gaming, indicates the potential integration of NFTs in the collaboration. As fans await further details, Nike’s foray into Fortnite opens up possibilities for the convergence of gaming and digital collectibles.

Latest News:

WELCOME FRIENDS: Hundreds of institutions and prominent individuals have invested directly in crypto, adopted the value thesis, or started building technology to support digital assets since Wave started tracking these developments in late 2020. Now the rise of the Metaverse, Decentralized Finance (DeFi), Non-Fungible Tokens (NFTs), and Decentralized Autonomous Organizations (DAOs) is driving mainstream adoption of blockchain technologies everywhere we look. We’re continuing to keep track of it every week here:

• As noted above, BlackRock filed paperwork Thursday afternoon with the U.S. SEC for the formation of a spot bitcoin ETF with assets custodied by Coinbase. The SEC has notably rejected other fund management company attempts at opening a spot bitcoin ETF, including those from Grayscale, VanEck, WisdomTree, and many others. BlackRock, however, may be feeling more confident given only a single BlackRock filing has been denied across its 576 applications historically.
• Digital payments firm Strike is expanding its Lightning Network-based cross-border payments service to Mexico, the largest market for remittances from the U.S., which accounts for around 95% of total remittances received by Mexicans from abroad.
• As noted above, EDX Markets, a crypto exchange aimed at institutional investors, launched Tuesday after a litany of finance behemoths announced its creation back in September 2022. The exchange’s major backers include Citadel Securities, Fidelity Digital Assets, Virtu Financial, Charles Schwab, Sequoia and Paradigm. 

REGULATORY ROUNDUP: We’re living through the era of regulatory recognition of digital assets. We believe the legislation, litigation, and regulation happening today will dictate the entire future of our industry, and we have a historic chance to shape those changes by staying informed and providing public commentary.

• The Hong Kong Monetary Authority (HKMA) is encouraging banking giants to accept crypto exchanges as clients, the Financial Times reported on June 15. While no restrictions hold Hong Kong banks back from accepting crypto clients, banks are wary of drawing regulatory scrutiny. Under the circumstances, HKMA is trying to motivate banks to take on crypto clients to further its aim of turning Hong Kong into a global crypto hub.
• A U.S. district judge ordered Binance’s American exchange to keep all assets in the U.S. and limit spending to expenses needed for regular operations. The order falls short of the Securities and Exchange Commission’s original request for a broad asset freeze. Earlier this week, a federal court judge questioned what evidence the agency had to support claims that customer funds were leaving the country. Binance.US had said that a broad asset freeze would cripple its business.
• United States senator Cynthia Lummis said that the “fight is far from over” as she re-dedicated herself to pushing for a positive regulatory framework for crypto over the weekend. The Republican from Wyoming reassured followers on Twitter that she is still working on proposed regulation, a revamped version of which had been expected to circulate in April. Her bill, co-sponsored by New York Democrat Kirsten Gillibrand, was first put forward last year, but is set to do the rounds again this year after some revisions. But the proposed legislation, known as the Responsible Financial Innovation Act, comes at a time of increasingly tense relations between regulators and crypto firms in the U.S.

Disclaimer: The views and opinions expressed herein are those of the author alone and do not represent Wave Digital Assets LLC or any of its affiliates (collectively, “Wave”). The author and/or Wave may hold investment positions in some of the assets discussed. Nothing in this material or linked information should be interpreted as an offer or recommendation to buy, sell or hold any security or other financial product. This material is not intended to provide accounting, legal or tax advice. Certain information contained herein has been obtained from third-party sources, has not been independently verified and should not be viewed as being endorsed by Wave. Such information is believed to be accurate as of the date of its publication. No representation or warranty is made, express or implied, with respect to the accuracy or completeness, and readers should not place undue reliance on the information contained or linked to herein. Certain statements in this material provide predictions and there is no guarantee that such predictions are currently accurate or will ultimately be realized. Past performance is not indicative of future results.

Wave is federally regulated by the US Securities & Exchange Commission as an investment adviser. Registration with a federal or state authority does not imply a certain level of skill or training. Additional information including important disclosures about Wave Digital Assets LLC also is available on the SEC’s website at www.adviserinfo.sec.gov. Or, learn more information about Wave at www.wavegp.com.

Kraken Launches NFT Marketplace, Expanding Crypto and Digital Asset Offerings

Market Overview 

Crypto Roundup

Bitcoin dominance surges, accounting for nearly half of the $1 trillion crypto market, while altcoins experience a selloff. Ethereum’s Vitalik Buterin emphasizes three critical transitions for the network’s survival. Meanwhile, Ethereum developers agree on the Dencun upgrade to reduce gas fees for layer 2 roll-ups. Switzerland-based ETP issuer 21Shares launches the Lido DAO ETP (LIDO) in 22 EU countries. Outflows of digital asset investment products reach $88 million, and Curve Finance’s founder safeguards a stablecoin loan. Polygon announces Polygon 2.0, aiming to become the Value Layer of the Internet. Notably, a solo bitcoin miner wins a 6.25 BTC block reward. The Bank of China’s investment arm issues tokenized notes on Ethereum. Over $319.67 million worth of tokens unlock this week. Trading volumes show a decline in spot and derivatives trading.

NFT Market News:

Kraken Launches NFT Marketplace

Kraken has officially launched its NFT Marketplace as a “comprehensive platform for purchasing, trading, and understanding NFTs”. With a focus on enriching its product and feature range, the platform now offers a robust hub for NFT enthusiasts. One of the key highlights of this launch is the substantial growth of Kraken NFT’s portfolio, which has expanded from a modest 70 collections in its beta phase to over 250 collections. This increase is made possible by the integration of blockchains such as Polygon, Ethereum, and Solana, ensuring seamless and efficient transactions across various networks.

In line with its community-focused approach, the Kraken NFT Marketplace aims to transform the NFT scene by proactively incorporating new and high-demand collections. Notably, this launch shines a spotlight on “bluechip” NFT collections, such as CryptoPunks, Bored Ape Yacht Club, Mfers, and CrypToadz. The platform caters to a diverse range of budgets by offering a variety of digital assets priced under $100, in hopes to make the platform an attractive destination for collectors and creators at all levels. To incentivise user engagement, Kraken NFT has removed gas fees for buying and selling NFTs, making the platform even more accessible and hopefully boosting activity in the marketplace. The NFT Marketplace space has become hypercompetitive in the last few years so it will be an uphill battle to truly compete amongst larger exchanges such as Blur, Opensea, Superrare, etc. It will be interesting to see if Krakens unique product offerings will be enough to create a sustainable marketplace moving forward.

Latest News:

WELCOME FRIENDS: Hundreds of institutions and prominent individuals have invested directly in crypto, adopted the value thesis, or started building technology to support digital assets since Wave started tracking these developments in late 2020. Now the rise of the Metaverse, Decentralized Finance (DeFi), Non-Fungible Tokens (NFTs), and Decentralized Autonomous Organizations (DAOs) is driving mainstream adoption of blockchain technologies everywhere we look. We’re continuing to keep track of it every week here:

• Google Cloud is offering certain customers up to $1 million in protection for costs incurred during undetected crypto mining attacks. Subscribers to Google’s Security Command Center Premium, a cyber threat detector, are entitled to this hefty protection. 
• Breaking the year-long worldwide trend of declining Bitcoin and crypto ATMs, May recorded a steep increase, with nearly 1,400 net installations. The total number of crypto ATMs consistently declined in the first four months of 2023. During the timeframe, major economies like the United States contributed to the dwindling numbers, but Australia, Poland and Spain increased crypto ATM installations.
• French luxury fashion house Louis Vuitton will soon debut a limited series of NFTs, each priced at about $41,712 (€39,000), which will unlock exclusive products and experiences for high-level customers.
• Bank of China investment bank BOCI issued fully digital structured notes worth 200 million of offshore renminbi ($28 million) on the Ethereum blockchain, making it the first Chinese financial institution to issue a tokenized security in Hong Kong.

REGULATORY ROUNDUP: We’re living through the era of regulatory recognition of digital assets. The legislation, litigation, and regulation happening today will dictate the entire future of our industry, and we have a historic chance to shape those changes by staying informed and exerting political influence.

• Circle Internet Singapore Pte. Ltd. (Circle Singapore), an affiliate of Circle Internet Financial, LLC (Circle), has obtained a Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS). The license allows Circle Singapore to offer digital payment token services, alongside cross-border money transfer services and domestic money transfer services in the city-state via its various products and services, including the Circle Account, which allows institutional customers access to USDC. 

Disclaimer: The views and opinions expressed herein are those of the author alone and do not represent Wave Digital Assets LLC or any of its affiliates (collectively, “Wave”). The author and/or Wave may hold investment positions in some of the assets discussed. Nothing in this material or linked information should be interpreted as an offer or recommendation to buy, sell or hold any security or other financial product. This material is not intended to provide accounting, legal or tax advice. Certain information contained herein has been obtained from third-party sources, has not been independently verified and should not be viewed as being endorsed by Wave. Such information is believed to be accurate as of the date of its publication. No representation or warranty is made, express or implied, with respect to the accuracy or completeness, and readers should not place undue reliance on the information contained or linked to herein. Certain statements in this material provide predictions and there is no guarantee that such predictions are currently accurate or will ultimately be realized. Past performance is not indicative of future results.

Wave is federally regulated by the US Securities & Exchange Commission as an investment adviser. Registration with a federal or state authority does not imply a certain level of skill or training. Additional information including important disclosures about Wave Digital Assets LLC also is available on the SEC’s website at www.adviserinfo.sec.gov. Or, learn more information about Wave at www.wavegp.com.

Major Brands Embrace NFT Technology

NFT Market News:

Companies Continue to Integrate NFT Technology

In a somewhat surprising move, Louis Vuitton is set to release a physical-linked NFT collection named “Via Treasure Trunks”. The fashion behemoth is offering 200-300 digital trunks in select countries, with each NFT priced at a substantial $42,000 according to CoinDesk. Owners of these NFTs will receive a digital and physical version of their Treasure Trunk, which unlocks access to upcoming Louis Vuitton products and immersive events. Interestingly, the tokens are non-transferable, which means that owners can’t sell the Trunks. However, Louis Vuitton claims holders will be able to sell individual items they mint in the future. This initiative is part of a larger project, “Via”, which aims to provide access to future Louis Vuitton physical-linked NFT collections via digital keys.

Meanwhile, Warner Bros. Home Entertainment is betting on the future of entertainment with its second installment in the “WB Movieverse”, this time featuring 1978’s “Superman: The Movie”. The studio is set to release a Superman Web3 Movie Experience, a multimedia NFT bundle, including the film in 4K Ultra HD format, image galleries, and artist renderings by notable DC artists. The Superman NFTs will be priced slightly cheaper than the Louis Vuitton NFTs at $30 for the Standard Edition and $100 for the Premium Edition according to NFTEvening.  Warner Bros. aims to establish a new home-entertainment business model based on NFTs and build an engaged community of fans​.

These exciting developments underscore the increasing interest of Web2 companies in the NFT space. By creating their own collections, these companies not only offer novel experiences to their customer base but also leverage the unique properties of NFTs, such as verifiable digital ownership and the ability to monetize digital assets. As more traditional businesses explore and embrace NFTs, we are witnessing an exciting shift towards the convergence of Web2 and Web3 technologies, offering consumers enhanced and personalized experiences that were previously unthinkable.

Latest News:

WELCOME FRIENDS: Hundreds of institutions and prominent individuals have invested directly in crypto, adopted the value thesis, or started building technology to support digital assets since Wave started tracking these developments in late 2020. Now the rise of the Metaverse, Decentralized Finance (DeFi), Non-Fungible Tokens (NFTs), and Decentralized Autonomous Organizations (DAOs) is driving mainstream adoption of blockchain technologies everywhere we look. We’re continuing to keep track of it every week here:

• Nike Virtual Studios unveiled a partnership with EA Sports to enable customized Nike virtual apparel to be used in EA SPORTS games. 
• The Beijing Municipal Science and Technology Commission has released a white paper in a bid to foster innovation and development within the Web3 industry. The commission aims to establish Beijing as a global innovation hub by allocating a minimum of CNY100m ($14m) annually until 2025.
• Voltage, a Bitcoin Lightning infrastructure provider, has partnered with Google Cloud to increase its hosting capacity and locations globally.
• Platinium Group, the leading ticket issuer for Formula 1, is releasing non-fungible token (NFT) race tickets – starting with the Monaco Grand Prix. Platinium Group has teamed up with blockchain infrastructure company Elemint and Web3 agency Bary to help create, mint and sell the NFT tickets.

REGULATORY ROUNDUP: We’re living through the era of regulatory recognition of digital assets. The legislation, litigation, and regulation happening today will dictate the entire future of our industry, and we have a historic chance to shape those changes by staying informed and exerting political influence.

• The U.S. Commodity Futures Trading Commission (CFTC) has proposed an overhaul of its rules for risk management, and Commissioner Christy Goldsmith Romero said the changes should insist firms prepare themselves for crypto volatility and the risks from holding customers’ digital assets. 
• Hong Kong rolled out new rules on Thursday to guide the cryptocurrency industry in the Chinese special administrative region. Crypto exchanges operating in the jurisdiction are now required to get licensed to offer their services to retail traders. Already, Hong Kong’s financial regulator has received several applications.
• EU officials have signed the Markets in Crypto-Assets law (MiCA), which aims to create a consistent regulatory framework for crypto assets among the EU member states, into law following final approval from finance ministers. After the signing ceremony, the framework is expected to go into effect following publication in the Official Journal of the European Union, with many of MiCA’s regulations on crypto firms likely starting sometime in 2024.
• The revised Payment Services Act was promulgated at midnight on June 1, 2023, and now allows Japanese firms to issue stablecoins. Under the terms of the act, all token-issuing firms must be able to prove they have the underlying assets that back their coins, and only regulated banks, fund transfer service providers, trust companies, and other financial industry firms can issue these coins.
• A group of U.K. lawmakers is calling on the government to introduce crypto financial services regulations sooner rather than later and to appoint a dedicated official to oversee the process. In a report published Monday, the Crypto and Digital Assets All Parliamentary Group (APPG) said cryptocurrency is here to stay and needs immediate regulation. The group, which includes lawmakers from different political parties and both houses of parliament, made 53 recommendations for regulating crypto in the country.
• The U.S. SEC sued crypto exchange Binance, the operating company for Binance.US and Binance founder and CEO Changpeng “CZ” Zhao on allegations of violating federal securities laws on Monday. Binance, Binance.US and CZ offered unregistered securities to the general public in the form of the BNB token and Binance-linked BUSD stablecoin, said the suit, which also alleges that Binance’s staking service violated securities law. 
• The U.S. SEC sued U.S crypto exchange Coinbase (COIN) on allegations of violating federal securities law, a day after filing a similar suit against Binance. According to the SEC, Coinbase has operated as an unregistered broker, exchange and clearing agency simultaneously, arguing that it solicited customers, handled orders, allowed for bids and acted as an intermediary all at once. The suit named Coinbase, Inc. and Coinbase Global, Inc. as defendants, but did not name founder and CEO Brian Armstrong or any other executive.

Disclaimer: The views and opinions expressed herein are those of the author alone and do not represent Wave Digital Assets LLC or any of its affiliates (collectively, “Wave”). The author and/or Wave may hold investment positions in some of the assets discussed. Nothing in this material or linked information should be interpreted as an offer or recommendation to buy, sell or hold any security or other financial product. This material is not intended to provide accounting, legal or tax advice. Certain information contained herein has been obtained from third-party sources, has not been independently verified and should not be viewed as being endorsed by Wave. Such information is believed to be accurate as of the date of its publication. No representation or warranty is made, express or implied, with respect to the accuracy or completeness, and readers should not place undue reliance on the information contained or linked to herein. Certain statements in this material provide predictions and there is no guarantee that such predictions are currently accurate or will ultimately be realized. Past performance is not indicative of future results.

Wave is federally regulated by the US Securities & Exchange Commission as an investment adviser. Registration with a federal or state authority does not imply a certain level of skill or training. Additional information including important disclosures about Wave Digital Assets LLC also is available on the SEC’s website at www.adviserinfo.sec.gov. Or, learn more information about Wave at www.wavegp.com.

SEC’s Response to Coinbase and EU’s Landmark Crypto Regulation Approval

Market Overview: 

Crypto Round up

The crypto markets experienced a decline in prices as ongoing discussions surrounding the US debt ceiling dominated the news. Trading volumes dropped by 40% compared to the 30-day average (According to the Coinbase orderbook analytics), reflecting the market’s caution during this period.

The Ethereum development team recently issued a final report addressing the “finality SNAFU” that occurred. The report aims to provide insights and solutions to the issues encountered, ensuring the continued stability and growth of the Ethereum network.

Renowned author Michael Lewis, known for his book “The Big Short,” has announced progress in writing his upcoming book focused on SBF, the CEO of FTX. Lewis is nearing completion of the book, which is expected to shed light on the fascinating story behind SBF and his contributions to the crypto industry.

US President Biden has expressed opposition to a debt deal that could potentially benefit crypto traders. Given the impending threat of a US default, the President’s stance on the matter adds an additional layer of uncertainty to the market.

Sotheby’s, the prestigious auction house, recently held an auction featuring a rare NFT collection from 3AC. The auction generated an impressive $2.4 million in sales, highlighting the continued interest and value of NFTs in the art world.

According to coindesk, the demand for tokenized Treasury Bonds has been surging, as crypto investors seek to explore traditional finance avenues and capitalize on potential yields. We believe this growing demand indicates a desire to bridge the gap between the crypto and traditional financial sectors. 

SOURCE: (https://www.coindesk.com/markets/2023/05/19/demand-for-tokenized-treasury-bonds-soars-as-crypto-investors-chase-tradfi-yield/)

Unfortunately, the Tornado Cash DAO fell victim to an attacker who manipulated voting procedures, resulting in a significant 40% drop in the value of the TORN token. This incident serves as a reminder of the importance of robust security measures within the crypto ecosystem.

NFT Market News:

NFT Integration in the Food Industry: The Wow Bao Initiative

Customer loyalty programs in the food industry may look a lot different in the future due to the integration of NFTs. Asian street food chain, Wow Bao, has executed a unique move by transforming their traditional point-based rewards system into an NFT-backed platform built to be Web2 friendly.

According to NFTEvening this initiative, termed “CollectaBaos”, allows patrons to purchase a year-long membership for $99, providing them access to a range of benefits including a 10% discount, complimentary meals, and exclusive merchandise.

The integration of NFTs in Wow Bao’s business model extends beyond conventional loyalty incentives that you would normally expect. Unique NFT mints grant holders access to exclusive experiences such as special events, cooking classes, and personal interactions with the CEO. Additionally, previews of new culinary offerings will be exclusively available to NFT holders. This strategic move, if proven effective, could shift the way restaurants interact with customers, illustrating the potential of NFTs to augment customer engagement, collect valuable data, and foster loyalty.

In what we believe to be the most important aspect of this move, Wow Bao has made a conscious effort to refrain from using technical jargon in customer communications to try to make the shift more easily palatable to a mainstream audience . With this in mind Wow Bao makes it so that purchasing a CollectaBao does not necessitate a crypto wallet, thereby lowering the entry barrier for consumers. This approach showcases the potential of NFTs to transform traditional business operations without necessitating a learning curve for its customers, providing valuable insights and more accurate data around their customers, while causing less of an interference in normal business operations. Although the potential benefits from the change are exciting, it will be interesting to see if this strategy will work over the long term as many times NFT integrations can come with unforeseen circumstances.

Latest News:

WELCOME FRIENDS: Hundreds of institutions and prominent individuals have invested directly in crypto, adopted the value thesis, or started building technology to support digital assets since Wave started tracking these developments in late 2020. Now the rise of the Metaverse, Decentralized Finance (DeFi), Non-Fungible Tokens (NFTs), and Decentralized Autonomous Organizations (DAOs) is driving mainstream adoption of blockchain technologies everywhere we look. We’re continuing to keep track of it every week here:

• LG Electronics has filed a patent application for its blockchain-based smart TV, which allows users to trade nonfungible tokens (NFTs).

REGULATORY ROUNDUP: We’re living through the era of regulatory recognition of digital assets. The legislation, litigation, and regulation happening today will dictate the entire future of our industry, and we have a historic chance to shape those changes by staying informed and exerting political influence.

• The SEC has finally responded to Coinbase’s rulemaking petition, a petition that seeks answers to 50 specific questions concerning digital asset regulation (See Top Story #4 from a few weeks ago for extra context). The SEC’s response has urged courts to deny Coinbase’s recent request for clearer rules, stating “Coinbase’s preference for faster or different regulatory action by the commission does not entitle it to extraordinary relief from this court.” Coinbase expressed its disappointment in the SEC’s apparent lack of urgency for implementing appropriate crypto rules and is expected to respond over the coming days.
• The European Union’s landmark crypto regulation has passed its final legislative hurdle, with the unanimous approval of European finance ministers. Members of the EU’s Economic and Financial Affairs Council (EcoFin) adopted the Markets in Crypto Assets (MiCA) with no objections in a meeting on Tuesday.
• Hong Kong’s Securities and Futures Commission (SFC) will begin accepting applications for crypto trading platform licenses on June 1. The regulator has agreed to allow licensed virtual asset providers to serve retail investors, provided that operators assess understanding of the risks involved.

Disclaimer: The views and opinions expressed herein are those of the author alone and do not represent Wave Digital Assets LLC or any of its affiliates (collectively, “Wave”). The author and/or Wave may hold investment positions in some of the assets discussed. Nothing in this material or linked information should be interpreted as an offer or recommendation to buy, sell or hold any security or other financial product. This material is not intended to provide accounting, legal or tax advice. Certain information contained herein has been obtained from third-party sources, has not been independently verified and should not be viewed as being endorsed by Wave. Such information is believed to be accurate as of the date of its publication. No representation or warranty is made, express or implied, with respect to the accuracy or completeness, and readers should not place undue reliance on the information contained or linked to herein. Certain statements in this material provide predictions and there is no guarantee that such predictions are currently accurate or will ultimately be realized. Past performance is not indicative of future results.

Wave is federally regulated by the US Securities & Exchange Commission as an investment adviser. Registration with a federal or state authority does not imply a certain level of skill or training. Additional information including important disclosures about Wave Digital Assets LLC also is available on the SEC’s website at www.adviserinfo.sec.gov. Or, learn more information about Wave at www.wavegp.com.