Musk, Twitter & Crypto; HSBC & EIB £50M bond; $2.1B equity fund on Securitize; Aave Protocol V3; Broadridge $1T; Tether & $2B Celsius; DekaBank & METACO; Meta’s $14B loss; plus 16 VC/PE stories.
26 January 2023
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Table of Content
🗞️The 16 news you should be aware of
💸PE/VC funding
⚖️Policies and laws
📚Reports, here is the TLDR
📈Charts of the week
💡Metaverse and NFT news, trends, and insights
🔦Company spotlight
📅Blockchain, Crypto, and Web3 events calendar
👩💻The job fair
📚The term of the week
📎Miscellaneous resources
🗞️ The 16 news you should be aware of
1. Elon Musk wants Twitter payments system to accommodate Crypto
Twitter is designing a payments system. It will originally be for fiat currencies, but cryptocurrency capabilities may be added later. Dogecoin spiked following the announcement.
2. EIB issues £50M blockchain bond using HSBC Orion tokenization platform
The European Investment Bank has issued its third blockchain bond worth £50 million, which is a three-year floating rate bond. The bond was created using the HSBC Orion bond tokenization solution and is the first public bond issuance for the platform, as well as the first sterling-denominated digital bond.
3. Ordinals protocol sparks debate over NFT's place in the Bitcoin ecosystem
The crypto community is divided over the launch of NFT protocol Ordinals on the Bitcoin mainnet. Ordinals were introduced on January 21. The protocol enables the creation of 'digital artifacts', such as images, PDFs, videos, and audio files, on the Bitcoin network. Some in the Bitcoin community argue that the Ordinals protocol offers more financial use cases, while others believe it diverges from the vision of Bitcoin as a peer-to-peer cash system. Transaction fees could be driven up due to the NFT-like structures taking up block space.
4. Hamilton Lane's $2.1B flagship direct equity fund now available for investment on Securitize
Hamilton Lane is making a portion of the vehicle accessible via a feeder fund on a secondary basis to individual investors. The new tokenized fund will significantly increase access to this historically high-performing asset class, with minimum investments reduced from an average of $5 million traditionally to $20,000.
5. Aave Protocol V3 is now live on the Ethereum market
Aave Protocol V3 has been launched on the Ethereum market. The update unlocks new technical features and benefits, including High-Efficiency Mode, Isolation Mode, and Gas Optimization. High-Efficiency Mode enables users to increase their capital efficiency when supplying and borrowing correlated assets. Isolation Mode allows for increased asset listings while maintaining security. Around 20-25% reduced gas costs are associated with all functions across the board.
6. Broadridge’s DLT repo platform transacts $1T a month. Just getting started
“Momentum and interest in the platform continue to grow,” said Horacio Barakat. “One of the reasons is the flexibility of the platform and the ability to use the platform for various use cases relating to repo transactions.”
7. Tether denies it borrowed $2B from Celsius, as described in court report
The report, which was released Tuesday, said Celsius lent over $2 billion to Tether, which was an early investor in Celsius. The report cites an internal Celsius document from 2021 detailing risk of Tether’s default to the company.
8. IDB executes blockchain property registry pilot with ChromaWay
The pilot was based on Peruvian law, but Bolivia and Paraguay are also explored in the accompanying report. In Peru, real estate fraud is significant, particularly falsifying real estate documents or identity fraud in which a person claims to be the property owner. The specific use cases in the pilot were mortgage discharge when the loan is repaid and subdividing a piece of property.
9. Japanese central counterparty JSCC starts using blockchain for rubber futures settlement
The Japan Securities Clearing Corporation (JSCC) announced it is using blockchain to settle rubber futures. Blockchain is being used for digitizing the paperwork involved in the physical delivery of the rubber when futures mature.
10. DekaBank selects METACO for digital asset custody
Germany’s DekaBank has selected METACO Harmonize for its digital asset custody and management. This partnership will create new services that are secure, compliant, and future-proof.
11. Federal Reserve unanimously rejects application by crypto bank Custodia
Federal Reserve rejected the application of Custodia bank to become a member of the federal reserve system. The goal of this special-purpose bank is to become a bridge between the digital assets sector and the U.S. dollar payments system. Only signature and silver gate banks have membership.
12. Ethereum staking withdrawal testnet for Shanghai upgrade goes live Wednesday.
The testnet for Ethereum withdrawals is going live Wednesday. Users will be able to try out the various withdrawal and deposit features six days after the testnet launches. The Shanghai hard fork is a highly anticipated event for Ethereum, as it’s the first upgrade post-Merge that will allow ether stakes to withdraw their balances.
13. Toyota to experiment with blockchain use cases by sponsoring Astar Network's Hackathon
Automotive giant Toyota is delving deeper into the use cases of blockchain technology by sponsoring a Web3 hackathon on multi-chain smart contract network Astar Network, which could potentially yield management tools for Toyota's employees. "If a good tool is produced, Toyota employees will interact daily with Astar Network”.
14. Bitcoin mining difficulty hits a new all-time high
Mining difficulty is the figure representing the computational power required to mine a single BTC. It’s updated roughly every two weeks. On January 30, 2022, the mining difficulty sat at 26.24 EH/s as per the data from CoinWarz, but it has since risen to 39.35 EH/s, a roughly 50% increase.
15. Binance and Mastercard launch Bitcoin rewards card in Brazil
Binance and Mastercard have launched a prepaid rewards card in Brazil that will allow customers to make everyday purchases with cryptocurrency. Last year, Brazil’s congress passed a bill that gives cryptocurrency payments legal status in the country— without making the assets legal tender.
16. Fantom blockchain to release version 2 of fUSD stablecoin
Blockchain platform Fantom plans to introduce version 2 of its fUSD stablecoin to provide a more predictable and budget-friendly system for builders, partners, and users. The new version will allow the stakeholders to allocate fees in either fantom (FTM) or fUSD.
💸 PE/VC funding
1. New SEC filing amends Magic Eden's Euclid Labs $27M raise to $16.9M
The Block reported the $27 million raise as Series A funding led by Paradigm, with additional participation from Sequoia Capital, Solana Ventures, Greylock Partners, Electric Capital and others. The filing submitted on Jan. 25 shows an offering amount as $16.9 million from 31 investors.
2. DeFi liquidity protocol Squid raises $3.5M round led by North Island Ventures
Squid, an Axelar-based protocol that connects users and developers with cross-chain liquidity, raised a $3.5 million seed round led by North Island Ventures. The new capital will help Squid add more supported chains and expand the team.
3. Top 2023 VC funds in crypto listed
Digital Currency Group (DCG), Polychain Capital, Pantera Capital, Block media labs, Coinbase ventures, Binance labs, Sequoia Capital, a16z, Fabric ventures, Dune ventures, Blockchain Capital.
4. Archimedes closes $4.9M seed round led by Hack VC
Archimedes, an innovative new DeFi lending and borrowing marketplace launching in February 2023, has secured another round of funding. Lending and borrowing is considered one of the safest and more passive forms of DeFi investing, where crypto holders can supply & borrow assets to earn a yield.
5. Blockchain security firm Sec3 raises $10M in seed funding
Multicoin Capital led the round, with Sanctor Capital and Essence VC participating. Several angel investors, including Santiago Santos and Anatoly Yakovenko also joined the round. The Web3 security firm currently serves projects in the Solana ecosystem.
6. Venom Ventures Fund ventures Asia with $5M strategic investment in the Everscale blockchain
Everscale blockchain received a $5 million strategic investment from Venom Ventures Fund, the new Abu Dhabi-based $1 billion venture fund. The investment will be made in stages and will be used to fund the expansion of Everscale’s development team and projects.
7. Viola Ventures and Fabric Ventures back Addressable’s $7.5M raise
The seed round, which closed in October, was led by Viola Ventures and Fabric Ventures. North Island Ventures and Mensch Capital Partners were also among the investors, according to a statement.
8. Andreessen Horowitz led the most crypto deals in 2022
With 28 investments, Andreessen Horowitz outperformed other VCs such as Animoca Brands (24), Pantera Capital and Ploychain (21) and Binance (16).
9. VC funding to Black Web3 founders popped last year, bucking trends
Members of the Black communities who invested in crypto were hit disproportionately hard during the winter, though many Black founders and investors who spoke to TechCrunch remain optimistic about the sector’s potential for the community and society overall. If anything, last year’s economic correction was necessary, they told TechCrunch.
10. Oh Baby Games comes out of stealth, announcing $6M funding round
The round was co-led by eGirl Capital and Synergis Capital and included participation from crypto gaming DAO, Merit Circle. Oh Baby Games is a gaming platform that plans to launch three separate games in 2023 along with cross-chain collectibles.
11. Haun Ventures backs ZK-startup Sovereign Labs in $7.4M raise
The seed round, which closed in November 2022, also sees participation from investors including 1kx, Robot Ventures, Maven 11, according to a company release. Ekram Ahmed, head of communications at blockchain developer Celestia Labs, is a strategic advisor.
12. Crypto security startup Hypernative raises $9M seed round
The round, led by Boldstart Ventures and IBI Tech Fund, also saw participation from CMT Digital and Borderless. The startup began raising funding after it was founded in March and closed the round around May.
13. VitaDAO closes $4.1M funding round with Pfizer Ventures for Longevity Research
The decentralized autonomous organization told CoinDesk that crypto enthusiasts, including Vitalik Buterin, have long been interested in funding research to extend human life.
14. Crypto-centric VC Pantera Capital Lost 80% of Liquid Token Fund in 2022
The Pantera Liquid Token Fund suffered a massive drawdown in 2022, including a large November deficit, especially after the FTX crash.
15. Blockchain-led new funding schemes: Safe, simple, and less costly
VC gaining competition with ICOs which differs from conventional IPOs and venture capital investments in that it does not provide any sort of company shares to the investors.
16. Nic Carter from Castle Island Ventures backs new crypto VC Firm
Founded by a Circle alum, Breed VC closed its first fund with nearly $20 million in capital. The venture capital firm closed the fund at the beginning of the year, meaning the fundraise happened during the severe turbulence following the implosion of crypto exchange giant FTX.
⚖️ Policies and laws
1. Europe’s big bet on crypto regulation
EU policymakers hope that a new comprehensive framework to regulate digital assets will give the bloc a first-mover advantage. As the regulation awaits a final vote, European regulators are preparing for the challenge of the implementation phase.
2. UK Treasury outlines plans for regulating crypto exchanges and lenders
The UK Treasury published a consultation paper outlining plans to regulate trading platforms and lenders. The proposals will ensure crypto exchanges have “fair and robust standards.”
3. Hong Kong to Require Stablecoin Licensing as Early as This Year
Hong Kong is set to demand mandatory licensing for stablecoin issuers and won't allow algorithmic stablecoins. The value of the reserve assets of a stablecoin arrangement should meet the value of the outstanding stablecoins at all times
4. Kazakhstan Looks to Tighten Rules for Crypto Exchanges After FTX Collapse
Kazakhstan, which emerged as a hub for crypto mining after China's crackdown, has been setting up controls and new regulations for mining while also seeking to boost the broader digital asset space. A new measure proposes a criteria-based process that adds to a “green list” of approved tokens. The proposal is open to public comment through Feb. 25.
📚 Reports, here is the TLDR
The World Economic Forum (WEF) has issued a report on decentralized autonomous organizations (DAOs). Despite managing billions of dollars worth of assets and engaging millions of contributors, there are still many basic questions regarding operations, governance, law, and policy that need to be addressed.
The WEF report offers resources for developers, policy-makers, and other stakeholders to engage with the DAO ecosystem and provides an overview of the opportunities and challenges DAOs face.
The report also analyzes DAO governance processes and legal and regulatory questions and concludes with recommendations for DAO operations, governance, and policy. It also suggests that DAOs have the potential to address the shortcomings of traditional firms by realizing more equitable governance and operations. Their code-driven and community-oriented nature may allow for new models of allocation and coordination, which could revolutionize industries such as finance and philanthropy.
Despite the challenges, the report recognizes the rapid growth of DAOs and their potential to have a significant impact, but it remains to be seen how they will ultimately evolve and be adopted.
📈 Charts of the week
Web3 wallet landscape
💡Metaverse and NFT news, trends, and insights
1. Premier League signs NFT deal with SoftBank-backed Sorare
The Premier League is partnering with French fantasy sports platform Sorare to sell non-fungible tokens (NFTs). The deal gives Sorare a four-year license to sell digital sports cards of players from all 20 Premier League clubs.
2. ImmutableX to launch all-in-one passport system to onboard new gamers into Web3
The new tool, scheduled to launch in April 2023, will act as a non-custodial wallet, gamer profile, and authentication solution for Web3 gamers. Users can sign in with just an email and one-time password – it will be a game changer for players and radically reduce user acquisition costs." co-founder Robbie Ferguson.
3. Toyota to experiment with blockchain
The auto giant may use technology developed from the hackathon to increase its business efficiency. Developers will build an intracompany decentralized autonomous organization (DAO) support tool on the Astar Network, which will allow more efficient business decision-making and team management for Toyota.
4. Warner Music launches DJ contest in The Sandbox metaverse
Warner Music Group (WMG) is collaborating with The Sandbox to organize a DJ talent contest in the metaverse. The World’s Biggest Demo Drop (WBDD) is a premier DJ talent contest. The two-week event runs until February 8. Spinnin’ Records will release the winners’ tracks.
5. H&M’s metaverse collection embraces physical, digital wearables
H&M launched a new collection, “The Metaverse Design Story“. Codesigned by the Institute of Digital Fashion (IoDF), the clothing is inspired by the metaverse and contains both physical ready-to-wear garments and digital wearables, including 3D filters. This particular initiative doesn’t use NFTs or Web3.
6. First NFT ETF set to wind down after failing to take hold
The first-ever ETF focused on NFTs is set to wind down at the end of the month, as a prolonged downturn in crypto continues to bite. Defiance Digital’s NFT ETF had failed to attract assets.
7. Nearing $14 billion: Meta’s 2022 metaverse losses piling up
Meta has lost more than $600 billion in value since the company’s market capitalization began declining in late 2021. Meta reports earnings on Wednesday and analysts expect Reality Labs losses to continue their sharp increase.
8. Social token platform Rally shuts down sidechain containing creator NFTs
The chain contained creator NFTs, causing some to claim that Rally “rugged” the people using the firm’s services. Shutting down the sidechain, which appears to have no other bridges to it, will effectively destroy all the digital assets it contains.
🔦Company spotlight
The company: 👉 Pastel.Network 👈 is an advanced, secure, and decentralized blockchain for NFTs. Pastel Network brings several significant innovations to blockchain art, including native storage of art image files in the network and a decentralized validation process for registering new artworks that prevent near-duplicate images from being added to the system. Pastel Network enables artists to register assets on a blockchain similar to Bitcoin, while also enabling art collectors to buy and trade these artworks without relying on a central authority.
The story: Founded by Alexey Kireyev and Jeffrey Emanuel in 2018, Pastel has raised $10M in seed funding. Pastel is hiring, check the vacancies here.
Why should I care: Pastel is building the next-generation NFT-focused blockchain with certifiable authenticity, permanent storage, and negligible fees allowing users to build, secure, and scale Web3 ecosystems. With its own purpose-built Blockchain which is a fully decentralized layer-1 blockchain, Pastel serves as the preeminent protocol standard for NFTs and Web3 technology. It integrates Cross-Chain Interoperability allowing natively integrating Open-API standards and bridging assets cross-chain with minimized trust. All these features combine into an integrated solution catered towards the Web3 ecosystem which is set to expand at a compound annual growth rate (CAGR) of 47.1% from 2023 to 2030.
📅 Blockchain, Crypto, and Web3 events calendar
….for the next couple of months
February 2023
Solana Istanbul Hacker House | Feb 1-5, 2023 | Istanbul, Turkey
StarkWare Sessions 2023 | Feb 5-6, 2023 | Tel Aviv, Israel
Building Blocks TLV | Feb 7, 2023 | Tel Aviv, Israel
European Web3.0 Summit | Feb 7-8, 2023 | Antwerpen, Belgium
The Blockchain Event | Feb 14-17, 2023 | Florida, USA
Fintech & Crypto Summit Bahrain | Feb 15-16, 2023 | Bahrain
European Blockchain Convention | Feb 15-17, 2023 | Barcelona, Spain
Blockchain Fest 2023 | Feb 16-17, 2023 | Singapore
Solana Melbourne Hacker House | Feb 20-24, 2023 | Melbourne, Australia
Global Digital Assets Investment Summit | Feb 22-23, 2023 | Hong Kong
DeFi Retreat Europe | Feb 23, 2023 | Lisbon, Portugal.
NFT Paris 2023 | Feb 24-25, 2023 | Paris, France
ETHDenver | Feb 24-Mar 5, 2023 | Denver, CO, USA
Blockchain Economy London Summit 2023 | Feb 27-28, 2023 | London, UK
Interop Summit | Feb 27-28, 2023 | Denver, CO, USA
Blockchain Life | Feb 27-28, 2023 | Dubai, UAE
Miami Web3 Week | Feb 27-Mar 5, 2023 | Miami, FL, USA
March 2023
Advancing Bitcoin Conference | Mar 2-3, 2023 | London, UK
Crypto, Blockchain & Metaverse Expo | Mar 3-4, 2023 | Dubai, UAE
Saudi Meta Show | Mar 8, 2023 | Riyadh, Saudi Arabia
Empower: Energizing Bitcoin 2023 | Mar 8-9, 2023 | Houston, TX, USA
Crypto Expo Dubai | Mar 8-9, 2023 | Dubai, UAE
Blockchain Economy Dubai Summit | Mar 8-9, 2023 | Dubai, UAE
Blockchaincon Latam 2023 | Mar 9-11, 2023 | Lima, Peru
Women In Blockchain Summit | Mar 13-15, 2023 | Limassol, Cyprus
Blockchain & Fintech Week Tel Aviv | Mar 13-15, 2023 | Tel Aviv, Israel
Sustex - Blockchain for Climate | Mar 15-16, 2023 | Dubai, UAE
ETHDubai | Mar 15-16, 2023 | Dubai, UAE
Solana Hacker House | Mar 15-19, 2023 | Ho Chi Minh City, Vietnam
Virtuality Web3 Summit | Mar 16-17, 2023 | Paris, France
Blockchain Africa Conference | Mar 16-17, 2023 | Johannesburg, South Africa
ETH Porto | Mar 16-18, 2023 | Porto, Portugal
5th Blockchain Int’l Scientific Conference | Mar 18, 2023 | Manchester, UK
Crypto Expo Europe | Mar 19-21, 2023 | Bucharest, Romania
NFT LA | Mar 20-23, 2023 | Los Angeles, USA
Paris Blockchain Week 2023 | Mar 20-24, 2023 | Paris, France
DC Blockchain Summit | Mar 21, 2023 | Washington, DC
Art Basel | Mar 23-25, 2023 | Hong Kong, China
Nigeria Bitcoin Conference | Mar 24-25, 2023 | Lagos, Nigeria
🆕 American Metaverse Summit | Mar 29-30, 2023 | Miami, FL, USA
🆕 WOW Summit Hong Kong 2023 | Mar 29-30, 2023 | Hong Kong
🆕 Crypto Assets Conference 2023 | Mar 29-30, 2023 | Frankfurt, Germany
🆕 Miami NFT Week | Mar 30-Apr 2, 2023 | Miami, FL, USA
👩💻The job fair
Ethermail : Scrum Master, Barcelona, Spain
MoonPay : Lead Product Manager, Remote/Europe
📚The term of the week
Validation is the act by a Miner of confirming that a transaction on a Blockchain is legitimate prior to create a Block.
Validator is a Blockchain Network User who performs the function of validating transactions sent to the Blockchain network. In the Bitcoin Blockchain, Validators are known as Miners.
📎 Miscellaneous Resources
Rollup Wars: Battle Rages For the Future Of Ethereum Scaling
Grayscale Bitcoin Trust: the free money machine that went into reverse
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