The Last Fortnight in Crypto - December (Part 1) 2023
Latest News
A16z's 2024 Crypto Vision: Embracing AI, Gaming, and Security Innovations
Leading venture capital firm Andreessen Horowitz (A16z) has unveiled its crypto-focused "big ideas" list for 2024, spotlighting the role of artificial intelligence (AI), gaming, and digital security. Notably, A16z's crypto arm emphasizes the potential for crypto to democratize AI innovation, decentralizing AI model training and enabling broader participation. The list also addresses the rise of AI-generated video games, emphasizing the need for guarantees of model integrity. Additionally, A16z explores advancements in security, including the use of cryptographically-generated "passkeys" for enhanced website and app sign-ins. Despite a dip in crypto funding in 2023, A16z remains at the forefront of the industry with strategic investments in projects like Yuga Labs, Solana, and Uniswap.
Sotheby's Launches Historic Bitcoin Ordinals NFT Auction Featuring BitcoinShrooms Collection
Auction giant Sotheby's has commenced its groundbreaking Bitcoin Ordinals sale, hosting three artworks from the BitcoinShrooms collection by digital artist Shroomtoshi. The pixelated pieces, reflecting Bitcoin's history and culture, are auctioned online until Dec. 13. Notably, the Ordinals protocol, introduced by Casey Rodarmor, facilitates the storage and trading of digital content on Bitcoin using satoshis. The lots, estimated at $20,000 to $30,000, have already attracted significant bidding interest, exceeding expectations. Sotheby's, experienced in NFT auctions, faces this venture after a Bored Apes-MoonPay lawsuit but now with an exclusive partnership with crypto wallet manufacturer Ledger.
Crypto Market Witnesses $320 Million Long Liquidations Amid Bitcoin and Ether Price Dip
After 8 straight weeks in the green for the first time since 2017, there was a minor downturn in Bitcoin and Ether prices over the last 7 days, with a nearly 4% and 5% decrease, respectively, triggered substantial long liquidations exceeding $320 million. Bitcoin's drop to $42,200 from $43,800 led to over $94 million in liquidations on centralized exchanges, with $85 million affecting long positions. The overall crypto market saw $360 million in liquidations, including $2 million in DeFi. Derivatives markets reflected reduced demand for leveraged longs, with funding rates dropping below +0.01%. Despite short-term volatility, analysts express optimism for 2024, driven by the upcoming halving event and potential spot ETF launch.
Fidelity Engages SEC in Discussion Over Spot Bitcoin ETF, Presents ETF Workflow Details
Fidelity, a major asset management firm, held a meeting with the Securities and Exchange Commission (SEC) on December 7 to discuss its proposed spot Bitcoin ETF. The company submitted a presentation titled "Bitcoin ETF Workflows," emphasizing the efficiency of "In-Kind" creation and redemption models. Fidelity highlighted the importance of allowing physical creation and redemption to enhance trading efficiency and secondary market pricing. As the SEC reviews various proposed spot ETFs, including Fidelity's, attention has focused on technical aspects and potential amendments to filings. Analysts note ongoing discussions about the inclusion of both in-kind and cash options in ETF workflows.
BlackRock Secures $100K Seed Funding for Bitcoin ETF Launch
BlackRock, a major investment firm, has obtained $100,000 in seed capital for its proposed Bitcoin exchange-traded fund (ETF), according to a recent filing with the U.S. Securities and Exchange Commission (SEC). The undisclosed seed investor purchased 4,000 shares at $25.00 per share on October 27, 2023. Seed capital is crucial for an ETF's initial funding, enabling the creation of units underlying the ETF for open market trading. BlackRock's "iShares Bitcoin Trust" is among the 13 ETF applications awaiting regulatory approval, and with the SEC anticipated to approve spot ETFs early next year, analysts estimate a 90% probability of approval in January.
Decrypt and Rug Radio Forge Web3 Media Powerhouse in Merger
Crypto news outlet Decrypt is set to merge with decentralized media firm Rug Radio, marking the third major crypto media deal in recent weeks. The merger creates a new holding company chaired by Decrypt's CEO, Josh Quittner, with Rug Radio's co-CEOs leading as CEO and president. While the firms will operate independently, the synergy aims to enhance Decrypt's web3 focus and give Rug Radio wider distribution. The new entity plans to exclusively partner with Arbitrum for equitable transactions. The deal, not requiring regulatory approval, is expected to close in early 2024, with both firms retaining branding and independence.
Pudgy Penguins to Launch Pudgy World: A Virtual Realm for NFT Holders and Toy Owners
Pudgy Penguins, the NFT-linked toys that gained popularity with Walmart's in-real-life merchandise, are venturing into online gaming with the introduction of "Pudgy World." Scheduled for an alpha launch in early 2024, the interactive digital world caters to Pudgy Penguin NFT holders, toy owners, and newcomers. The platform offers narrative-driven and open-ended gameplay options, enhancing the interactive experience for fans. Each physical Pudgy Penguins toy comes with a scannable code, providing access to a digital 'Forever Pudgy' character within Pudgy World. The move aligns with the trend of toymakers combining tangible toys with virtual gameplay, creating an engaging environment for digital-native consumers. Pudgy Penguins' NFT collection, launched in July 2021, has grown to 8,888 NFTs with a market cap of nearly $250 million.
Robinhood Extends Crypto Trading to EU Following Successful UK Launch
Robinhood, the consumer trading and investment app, has expanded its international reach by launching its crypto app to eligible users in the European Union (EU). This move follows the recent introduction of its brokerage service in the UK. Robinhood's decision to anchor its international crypto expansion in the EU is influenced by the region's robust regulatory framework, including the Markets in Crypto-Assets (MiCA) rule. The platform, offering low fees and claiming to be the only custodial crypto platform with a unique rebate model, allows EU users to trade 25 cryptocurrencies. Robinhood emphasizes transparency in its EU crypto operations, displaying trading spreads and ensuring non-commingling of customer coins with business funds. The platform plans to introduce more tokens and features, such as crypto transfers and staking, in 2024.
Circle and Nubank Forge Strategic Alliance to Bring Digital Dollars to Brazil
Circle and Nubank, a major digital financial platform serving 90 million customers in Brazil, Mexico, and Colombia, have announced a partnership to extend access to Circle's USDC (USD Coin) to Brazilian Nubank customers. USDC, a regulated dollar stablecoin, will initially be integrated into Nubank Cripto, enabling Brazilian users to buy and hold digital dollars. The collaboration aims to leverage the demand for digital currency in Brazil and promote the use of USDC in the region. The partnership also involves educational initiatives to enhance awareness and understanding of USDC in the Brazilian market. Both companies envision future integrations, exploring opportunities to combine Nubank Cripto with other financial services available in the app.
El Salvador's Bitcoin Gamble: President Bukele's $120M Investment Turns Profit
El Salvador's President Nayib Bukele celebrates as the Bitcoin reserve, purchased with $120 million of public funds, enters profit amid the recent surge in Bitcoin prices. Bukele urges critics to retract previous statements, claiming vindication for his Bitcoin strategy. However, economists caution against premature celebration, highlighting the high-risk nature of El Salvador's Bitcoin adoption drive. Bukele's government spent $120 million on Bitcoin purchases, part of a broader initiative promoting Bitcoin as legal tender. While Bukele showcases the reserve's profitability, critics argue that the economic costs, transparency issues, and minimal Bitcoin adoption outweigh the gains. The lack of formal disclosure regarding Bitcoin accounting raises concerns about transparency. Despite skepticism, Bukele emphasizes the long-term potential of Bitcoin for economic independence and treasury reserves.
Gods Unchained Enters Amazon Prime Gaming, Offering Exclusive Content to 200 Million Subscribers
Immutable's web3 trading card game, Gods Unchained, has made its debut on Amazon Prime Gaming, granting access to its exclusive content for the platform's 200 million subscribers. Prime Gaming users can now engage with Gods Unchained, linking their in-game accounts to receive monthly access to exclusive in-game items. This strategic move follows the game's Season 2 launch, named Far Horizons, which introduced new features and a gameplay expansion. Immutable, the blockchain gaming company behind Gods Unchained, aims to leverage the vast user base of Amazon Prime Gaming to enhance player experiences and engagement within the web3 gaming community. The launch on Prime Gaming follows Immutable's participation in the Amazon Web Services ISV Accelerate Program, solidifying its ties with the tech giant.
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