Can’t Be Evil NFT, Uniswap Foundation, $200M "Free-to-Own" gaming model, $177M new crypto fund, IoT, Hermes and Frida Kahlo in the Metaverse, and is it worth quitting your job to work in crypto?
1 September 2022
Hello there and welcome to the Blockchain From First Principle newsletter where we curate some of the week's news, summarise reports, podcasts, articles and look at blockchain, crypto and Web3 from the first principles for those seeking to understand more and stay ahead of their game.
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Table of Content
🗞️The 16 news you should be aware of
💸 The development of a startup ecosystem and major PE/VC funding
📚Reports and breakdowns of noteworthy developments, here is the TLDR
📈Charts of the week
💡Inside the Metaverse and NFT's latest news, trends and insights
🔦Company spotlight
📅Blockchain, Crypto and Web3 events calendar
👩💻The job fair
📎Miscellaneous resources
🗞️ The 16 news you should be aware of
1. District of Columbia suing MicroStrategy founder Michael Saylor for tax fraud
Michael Saylor is being sued by the District of Columbia for allegedly never paying any income taxes in the more than 10 years he has lived there. The office is also suing MicroStrategy for conspiring to help Saylor evade taxes. The district is seeking more than $25 million in back taxes, damages, civil penalties, expenses, and fees.
2. The Can’t Be Evil NFT Licenses by a16z crypto
These licenses are designed specifically for NFTs and were inspired by 20-plus years of work by Creative Commons.
3. The market for Compound Ether Token ‘Frozen’ After Code Bug Kills Price Feed
DeFi lending protocol Compound has suffered a critical failure that effectively halted the trade of Compound Ether. A bug in the code caused transactions for suppliers and borrowers of ether to revert. It was introduced during an update aimed at the price feed. The code for the update was audited by three separate teams.
4. Solana-Based DeFi Protocol OptiFi Loses $661K in Programming Blunder
OptiFi, a derivatives-focused DeFi platform on Solana, accidentally closed its mainnet due to a programming blunder and locked away $661,000 in USDC. OptiFi will return all users' deposits and settle positions manually. This is one of the first cases where a programming error has resulted in the complete loss of customer assets.
5. Interoperability remains a key challenge for achieving blockchain mass adoption
Interoperability enables blockchain networks and protocols to communicate with each other, making it easier for everyday users to engage with blockchain technology. Here is why an interoperable Web3 world is so important.
6. Crypto startup salaries: here’s how much devs and others get paid
A new Framework Ventures compensation survey of 18 companies it backed sheds light on crypto salaries and token allocations. Highlights include salaries well into the six-figure range for both technical and non-technical roles.
7. Ethereum layer-2 scaling network Arbitrum is set for a major upgrade
The Nitro upgrade will further improve the transaction fee crisis that has plagued the growth of the Ethereum network over the last two years.
8. Uniswap community votes to create first-time Foundation
The Foundation will support decentralised growth and the long-term sustainability of Uniswap. Immediate priorities include: building out a talent pool, scaling the Uniswap Grants program and reinvigorating the governance process.
9. Afghanistan shuts 16 crypto exchanges, arrests staff
Crypto adoption in Afghanistan jumped after the Taliban takeover last year, but now Locals involved with crypto exchanges were reportedly arrested and their shops closed. Afghanistan’s Taliban-led central bank banned online foreign exchange trading in June.
10. Can Privacy-Focused Bitcoin projects avoid OFAC sanctions?
Bitcoin that’s been sent through privacy-preserving mixers could be vulnerable to censorship. But there are some workarounds in progress.
11. Abu Dhabi to launch a blockchain and digital assets strategy
Abu Dhabi has created a government body to develop its strategy for the regulation and promotion of virtual assets. Abu Dhabi, alongside Dubai are set to be local MENA and global hubs for blockchain innovation.
12. Iran to regulating use of crypto for international trade
Iran legalised cryptocurrencies and enabled international crypto payments. Minister of Industry and Trade has declared that the government’s new cryptocurrency law would enable Iranian businesses to use crypto instead of the U.S. dollar or the euro.
13. Bitcoin mining difficulty spikes as profitability drops for mining companies
Difficulty in bitcoin jumped 9.26% in the last two weeks. Higher difficulty is halting mining activities of some miners but the price of Bitcoin is stagnant. Is this a good sign for the network?
14. Coinbase, FTX, Binance get inquiries as Congress looks to crack down on $1 billion crypto fraud
The House Committee on Oversight and Reform is dialling up the pressure on federal agencies and crypto exchanges to protect Americans from fraudsters. Four agencies and five digital asset exchanges were asked for information and documents about what they are doing to safeguard consumers against scams and combat cryptocurrency-related fraud.
15. Singapore intensifies scrutiny of Crypto-Related Firms
The monetary Authority of Singapore has sent highly granular questionnaires to some firms. The regulator is expected to broaden cryptocurrency regulations.
16. The Digital Dollar Project launches the technical Sandbox Program
The Program is to jumpstart further exploration of technical implementations of a U.S. central bank digital currency (CBDC) and is slated to begin in early October with the inaugural cohort focused on cross-border payments.
💸 The development of a startup ecosystem and major PE/VC funding
1. Temasek is leading a $100M funding round for Animoca Brands
Temasek will lead the financing through convertible bonds. It adds to a funding round first announced by Animoca in January when the Hong Kong startup raised $359 million from backers including George Soros and the Winklevoss twins. Now valued at $6 billion, Animoca raised another $75 million in the same round earlier this summer.
Limit Break Inc. raised $200 million dollars in investment capital from Buckley Ventures, Standard Crypto, and Paradigm Ventures. Other investors include FTX, Coinbase Ventures, Anthos Capital, SV Angel, and Shervin Pishevar.
3. Koop raises $5M to enable companies to build tokenised communities through NFT membership passes
Koop, a protocol that allows companies to fund their projects via NFTs, has raised $5 million led by 1confirmation and Variant Fund, which raised $450 million in July to invest in builders of Web3. Palm Tree Crew, Day One Ventures, Ethereal Ventures, DeFi Alliance, Volt Capital, PearVC, DCF God, 0xmons, Cooper Turley, Balaji Srinivasan, and Liu Jiang also participated in the round.
Proof has completed a $50 million funding round led by Andreessen Horowitz (a16z). The fundraising also attracted participation from Seven Seven Six, which previously invested $10 million in PROOF in April, True Ventures, Collab+Currency, Flamingo DAO, SV Angel, and VaynerFund.
5. Xterio raises $40M to create cross-platform Web3 franchises
Switzerland-based free-to-play-and-earn game publisher and developer, Xterio, announced that it has raised $40 million to create mobile and Web3 games. The round was led by FunPlus, Makers Fund, FTX Ventures, and XPLA with participation from HashKey, Foresight Ventures, Infinity Ventures Crypto, Matrix Partners and Animoca Brands.
6. Thirdweb raised a $24 million Series A
Thirdweb has raised a $24 million Series A at a $160 million valuation in a round led by Haun Ventures. The company provides software development tools for building Web3 apps.
7. Stacked, the Web3 version of Twitch, raises $12.9M
Web3 video and livestreaming platform Stacked has raised $12.9 million in a Series A funding round led Pantera Capital. The capital will go toward marketing, content acquisition, hiring and expansion into Latin America, India and Southeast Asia.
8. Clockwork raises $4M in seed funding
Clockwork, which was formerly known as Cronos, has raised a seed funding to grow its team that’s building a framework to decentralize autonomous tasks on a Solana validator. The round was led by Multicoin Capital and Asymmetric, with participation from Solana Ventures.
9. Tokenproof raises $5M in seed funding
Tokenproof, an easy and secure way to unlock the value of NFTsraised a $5M round of seed-funding led by Penny Jar Capital, with participation from Corazon Capital, 6th Man Ventures, Canonical Crypto, and prominent angels including Sebastien Borget, Mark Cuban, Keith Grossman, and Patricio Worthalter.
12. Ex-Goldman banker’s crypto startup backed by key market makers
Flow Traders and Hudson River Trading are the investors who backed Sei Labs, a startup developing blockchain aimed at speeding up decentralised finance transactions. The round was led by Multicoin, with Coinbase Ventures participation.
13. Slow Ventures raises stakes on Crypto Governance with ‘Timber sDAO’
The venture capital firm's first "legally compliant DAO" bought land, and the second so-called sDAO is buying more. But this time, land with trees.
14. Solid banks $63M for easier deployment of embedded fintech products
Solid, which rebranded from Wise in 2021, raised a $63 million Series B round of funding. Based in California, the company works with fintech and vertical SaaS companies and offers banking, payments, cards and cryptocurrency products via easy-to-integrate APIs.
15. Reddit Co-Founder Ohanian's firm launches $177M Crypto Fund
Reddit co-founder Alexis Ohanian’s venture capital firm Seven Seven Six is planning to raise $177.60 million for a new crypto-focused fund called Kryptós. “Now is potentially a unique opportunity to invest in strong founders at a discount,” the new crypto fund's marketing materials reportedly read.
📚 Reports and breakdowns of noteworthy developments, here is the TLDR
The increasing usage of blockchain technology to protect data of IoT devices, enhance transparency and security, reduce costs, and increase efficiency is a new trend in the IoT Security market.
The Market: The global IoT security market is expected to grow from $3.86 billion in 2021 to $5.09 billion in 2022 at a compound annual growth rate (CAGR) of 31.7%. The market is expected to reach $15.06 billion in 2026 at a CAGR of 31.2%.
This rise in demand for IoT Security is devised from the emergence of the smart city concept. Smart cities are well equipped with handling high traffic, population control, and better security for people. Hence, smart city technology will be the foundation of sustainable city development. The execution of these functions can be done by installing IoT Devices in smart cities. IoT involves connecting devices to one another, exchanging data in a secured manner, forming a pattern and then providing a final solution.
Installing an IoT device does not guarantee security. According to Trend Micro, IT Security firm, 86% of IT and security decision makers across the globe believe that their organizations need to enhance their awareness of IoT threats.
The blockchain technology is integrated into IoT networks to provide additional privacy and security. It helps in the reduction of processing time and cost, records transactions of all connected IoT devices, ensures tracking connected devices, coordinates these devices and aids smooth transaction process, provides efficiency to compliance issues, avoids re-entries, data leakages and frauds, minimises time to settle losses and ensures cryptographic security.
📈 Charts of the week
Increase in Ethereum Classic Hashrate
Ethereum is set to switch to proof of stake in a couple of weeks. Due to this change, there will be a lot of hash power (i.e. computational power of an individual mining rig on a network) looking for a new home. However, the current miners have gotten used to Ethereum Classic as the hash rate has doubled since last month. Miners must consider whether this will increase the value of ETC or otherwise consider alternatives.
Coinbase has published a guide to the projects and companies working to make web3 development as easy as web2
The below chart shows what kind of services can the 11 biggest crypto banks already offer to clients
💡Inside the Metaverse and NFT's latest news, trends and insights
1. Any Ethereum forks ‘Won’t Be Supported’, says OpenSea ahead of merge
OpenSea will be exclusively supporting proof-of-stake NFTs on Ethereum, tweeting on Wednesday that “we are committed to solely supporting NFTs on the upgraded Ethereum PoS chain.”
2. Hermes enters into the Metaverse and NFTs with Web3 Trademark Filings
Hermes, the French luxury brand, filed a trademark for its name on Aug 26, 2022 with the United States Patent and Trademark Office (USPTO) for an extensive list of goods and services.
3. Michael Bay designs NFT robots
Jadu, the augmented reality platform, is soon releasing an NFT-based game and revealed its 3D robot avatars called AVAs whose parts of these characters were designed by the Transformers movies’ director, Michael Bay. The minting date is September 7, 2022.
4. Frida Kahlo art becomes permanent in Decentraland
Exclusive art and memorabilia tied to the artist have been released into Decentraland during the third-annual Metaverse Art Week, held on Wednesday, Aug. 24 through Sunday, Aug. 28.
5. Snoop Dogg and Eminem performed as their Ape NFTs at MTV VMAs 2022
Eminem and Snoop Dogg shared a comically large joint and turned into animated apes during a MTV Video Music Awards performance that Twitter users weren’t feeling on Sunday. The performance was organized by Yuga Labs.
6. Formula One files two new Web3 trademarks for Las Vegas strip circuit
The lists of goods and services covered under both trademarks are extensive and consist of virtual and real-life items. It include NFTs, being digital certificates of ownership representing virtual goods in relation to sporting equipment, vehicle equipment, decorative items, clothing, toys, souvenirs and a long list of other items.
7. Beijing announces two-year plan for Metaverse innovation and development
The Beijing municipal government announced a Metaverse innovation and development plan that would require all districts to adhere to the newly released Web3 innovation planwhich promotes the development of Metaverse-related industries and helping Beijing build a benchmark city for the digital economy.
8. Shanghai Data Exchange debuts Untradable NFTs
The Shanghai Data Exchange has debuted blockchain-based digital assets without allowing secondary trading, a day after the exchange began digital asset trading on Wednesday.
9. Meta rolls out New Metaverse ID system
Meta Accounts and Meta Horizon Profiles, a new log in system for the company’s VR headsets that will be used in place of personal social media accounts such as Facebook and Instagram
10. Huobi-Backed NFT Platform iBox to end international operations
Chinese NFT marketplace iBox announced that it is planning to shut down its overseas operations.
🔦Company spotlight
The Company: 👉 Air Carbon Exchange (ACX) 👈is a digital exchange focused on eliminating market friction in a carbon constrained economy. They securitise carbon credits into fungible and tradable securities with transparent pricing and real time settlement.
The story: ACX intends to initially use its distributed ledger technology within a traditional commodity trading construct to create tokenised carbon credits for spot trading. At a later stage, ACX plans to offer carbon credit futures as commodity derivatives for trading. All digital tokens will be custodised by the Recognised Clearing House (RCH), settled and cleared using the RCH blockchain smart contracts providing efficient settlement for all spot transactions.
Why should I care: At its launch in March 2022, Abu Dhabi Global Market (ADGM) had the world’s first fully regulated voluntary carbon exchange and carbon clearing house. This means that corporates can trade and finance carbon credits like conventional financial assets. Air Carbon played an instrumental role in developing the infrastructure necessary for facilitating the trades. As carbon markets become more demanded by both regulators and corporates, expect to see similar initiatives prop up across the world, with blockchain used as a bedrock for settling and clearing transactions.
📅 Blockchain, Crypto and Web3 events calendar
….for the next couple of months
MetaWeek | Sep 11-14, 2022 | Dubai, United Arab Emirates
Hyperledger Global Forum | Sep 12-14, 2022 | Dublin, Ireland
Blockworks Digital Asset Summit | Sep 13-14, 2022 | New York, New York
The Family Office & High Net Worth | Sep 15, 2022 | New York, New York
NFT Show Europe | Sep 17-18, 2022 | Valencia, Spain
Australian Crypto Convention | Sep 17-18, 2022 | Gold Coast, Australia
Blockchain Expo Europe | Sep 20-21, 2022 | Amsterdam, Netherlands
Mainnet 2022 | Sep 21-23, 2022 | New York, New York
Web 3.0 for Developers 2022 | Sep 22, 2022 | Tel Aviv, Israel
Crypto Gibraltar | Sep 22-24, 2022 | Gibraltar, Gibraltar
Asia Crypto Week | Sep 26-Oct 2, 2022 | Singapore, Singapore
Cosmoverse | Sep 26-28, 2022 | Medellin, Colombia
Converge22 | Sep 27-20, 2022 | San Francisco, US
TOKEN2049 | Sep 28-29, 2022 | Singapore, Singapore
SmartCon 2022 | Sep 28-29, 2022 | New York, New York
Blockchain & Infrastructure | Sep 29-30, 2022 | Washington, US
World Blockchain Expo | Sep 29-30, 2022 | Dubai, United Arab Emirates
Crypto Fest 2022 | Sep 30, 2022 | Cape Town, South Africa
Seoul Meta Week 2022 | Oct 3-7, 2022 | Seoul, Korea
Blockchain Economy Dubai Summit | Oct 4-5, 2022 | Dubai, UAE
Crypto Expo Dubai | Oct 5-6, 2022 | Dubai, UAE
Blockchain Expo North America | Oct 5-6, 2022 | Santa Clara, US
DeFi Conf 2022 | Oct 6, 2022 | Belfast, United Kingdom
Future Blockchain Summit | Oct 10-13, 2022 | Dubai, UAE
Stellar Meridian 2022 | Oct 11-13, 2022 | Rome, Italy
CBDC Summit 2022 | Oct 12-13, 2022 | Washington, US
Bitcoin Amsterdam 2022 | Oct 12-14, 2022 | Amsterdam, Netherlands
World Blockchain Summit Dubai 2022 | Oct 17-18, 2022 | Dubai, UAE
Vietnam Blockchain Summit | Oct 19-20, 2022 | Hanoi, Vietnam
Bitcoin Collective | Oct 21-22, 2022 | Edinburgh, GB
Money20/20 | Oct 23-26, 2022 | Las Vegas, US
Blockchain Expo Tokyo | Oct 26-28, 2022 | Makuhari Messe, Japan
🆕 San Francisco Blockchain Week | Oct 31-Nov 6, 2022 | San Francisco, CA, USA
🆕 LA Blockchain Summit | Nov 1-3, 2022 | Los Angeles, CA, USA
👩💻The job fair
Point72 Venture - Ventures Associate, Crypto (New York, NY or San Francisco, CA)
Point72 Venture - Associate, Deep Tech (New York, NY or San Francisco, CA)
Ripple - Web3 Staff Software Engineer (Toronto, Ontario, Canada)
📎 Miscellaneous Resources
The opinions are our own. The content of this newsletter is not intended to serve as financial advice and is for general informational and educational purposes only. We do not warrant, endorse, or assume responsibility for the accuracy of any information offered by third-party websites linked above.