Industry Insiders Edition 2
Hello everyone! We are back with ‘Industry Inisders’, a dedicated biweekly newsletter that scours the internet to inform and educate people about what’s happening in the crypto world in an engaging and entertaining manner.
In this edition of the newsletter, we’re going to talk about:
👉 Twitter cofounder’s web5 announcement
👉 An important update on the Ethereum ‘Merge’
👉 A major Senate Bill on crypto
👉 Current market conditions
Bitcoin fell below $26,000 to its lowest point of 2022 and a 12-month low. Every single one of the top 20 coins by market cap has fallen double-digit percentages in the past seven days. While we can’t entirely be sure about what has caused this but rising inflation, crippling tech stocks, the recent multi-billion dollar protocol implosion, geopolitical uncertainty and a risk-off environment are some factors being pointed out. While the present circumstances are certainly not desired, we should not lose sight of the fact that this happens after a huge bull run we collectively experienced in 2020 & 2021. Markets are cyclical in nature. Bull & bear markets happen. But, builders continue to build. Prices hardly matter to great products & teams who have faith in this technological revolution. We are here to stay. Which side are you on?
Jack Dorsey skipped web4
According to Jack, web3 is not ‘decentralized’ enough. Hence, The Block Head (TBH), one of the Bitcoin business units at Block (formerly Square), another company co-founded by Jack, is developing Web5. In web2, big tech companies own your data and even your account. In web3, a blockchain to store things rather than a centralized server. There are many blockchains like Ethereum, Bitcoin, Solana, Avalanche, etc. In Web5, your data and identity become decentralized using one blockchain: Bitcoin. TBH describe it as an extra decentralized web platform. Since it’s all built on top of Bitcoin, there are no additional tokens to sell.
Ethereum devs successfully completed another test merge
The ‘Merge’ refers to the transition of Ethereum’s consensus mechanism from Proof-of-Work to Proof-of-Stake. The switch will enable faster transactions with less energy usage. It’s considered a big step towards greater scalability in the future. Last week, Ethereum devs were successfully able to test merge on the Ropsten network. The process run during this test would be almost identical to the process run on the real merge. Ethereum’s main network is almost a spitting image of Ropsten. There will be two more tests on other networks called Sepolia and Goerli before the big merge on the main network.
US Senator’s Crypto Bill
Crypto can’t escape the eye of regulators. Two US senators, Cynthia Lummis and Kirsten Gillibrand, proposed a new comprehensive bill amending crypto capital gains tax reporting, addressing appropriate government control of crypto, stablecoins, and consumer protection. Here are the key points:
- There will be no taxes on crypto transactions under $200
- People have the right to self-custody their digital assets
- CFTC (Commodity Futures Trading Commission) should be the regulatory body overseeing crypto and not SEC. The bill is proposing most crypto to be treated as commodities.
- Instead of miners paying tax when they mine, they should be taxed when they sell
- Stablecoins must maintain a 100% reserve. And, projects would be required to disclose how much and which assets are in the reserve.
Nuggets from the cryptoverse📊
- UFC announced a marketing partnership with VeChain, the company behind the Ethereum-compatible public network by the same name.
- Maker’s stablecoin, the fourth-largest stablecoin, is coming to Cosmos following a collaboration between cross-chain protocol Umee & the Maker team.
- Fintech company Circle is adding its crypto stablecoin, USDC, to the Polygon blockchain for web3 payments.
- A Deloitte survey indicates that 85% of merchants expect ‘ubiquitous’ digital currency payments in 5 years.
- Helium will launch new MOBILE and IOT tokens as it expands its crypto-powered wireless network.
- Forbes released their annual Fintech 50 list and 18% of them were crypto companies.
- Tron, which debuted its USDD algorithmic stablecoin last month, is boosting transparency and adding collateral to its reserves, just weeks after Luna and TerraUSD collapsed.
- Chipotle now accepts crypto payments at all its US locations through Flexa. Customers will receive 10% off for using crypto.
- Layer 2 network Optimism released its governance token under the ticker OP. 5% of OP’s supply was airdropped to users.
- Japan’s parliament passed a legal framework around stablecoins, saying they can only be issued by licensed banks, registered money transfer agents and trust companies. The bill did not address existing asset-backed or algorithmic stablecoins.
- Binance Labs closed a $500M fund to focus on web3 and blockchain adoption.
From the World of Web3, NFTs & the Metaverse🔮
- The OG 10k pfp NFT collection CryptoPunks had their 5th Birthday. It’s the 2nd highest selling NFT collection of all time with $2.2B in all-time sales volume.
- Mastercard has announced that it’s teaming up with several NFT marketplaces to “bring its payments network to Web3.”
- Global toy company Mattel will release ‘Cryptoys’ NFTs on Flow blockchain in partnership with OnChain studios.
- ApeCoin DAO’s proposal to stay within the Ethereum ecosystem dubbed AIP-41 was approved by a fine margin. Just over half of all voters supported the proposal, while 46.38% voted against the proposal.
- Cloud software giant Salesforce is launching a platform for brands to mint & sell NFTs
- English Premier League has filed for crypto and NFT trademarks.
- Ethereum NFT Game Illuvium sold over $72M in digital land plots.
- Gala Games’ GRIT, a Wild West-themed battle royale game, will be the first web3 game on the Epic Games Store. Rival Steam has banned NFT games.
- Author of the legendary book ‘Snow Crash’, Neal Stephenson is building a ‘free Metaverse’ called Lamina1 with Peter Vessenes, co-founder of the Bitcoin Foundation.
- Budweiser is now the official beer for Zed Run, an NFT horse racing game where you breed digital horses and race them to win real money.
- Kanye has filed for 17 new trademarks around his YEEZUS brand name. This will include NFTs and blockchain currencies.