Notable News & Articles

Fidenza #545 sold today for 625 ETH, the 5th highest sale of all time in ETH terms.

The Deets

• Fidenza #545 was purchased by 95B9F6 for 625 ETH ($1.17M USD) in a reserved sale on OpenSea.
• The seller was jz3 / jzchew.eth (@jzjmt3), who also has CryptoPunk #9476 (VR hoodie) and CryptoPunk #5350 (top hat) in that wallet.
• jz3 originally bought the Fidenza for 275 ETH back on December 24, 2021, and the sale price today in USD terms is close to flat compared to that prior sale (when ETH was roughly $4.1k).
• Per Nikolai Yakovenko, founder and CEO of DeepNFTValue (@deepnftvaluebot), the purchaser of Fidenza #545 today is the same buyer who bought CryptoPunk #6649 (the 3AC Zombie Punk) OTC from the @Sothebysverse Grails wallet two weeks ago.

🎤 Community Quotes

Stacked collection. Bought the Eternal Pump also from 3AC collection. Two autoglyphs. Another premium Fidenza (red on black)...

cc @punk9059 https://t.co/PhISKQoQfX pic.twitter.com/iBbOw2QVXx

— Nikolai Yakovenko (@ivan_bezdomny) June 6, 2023

❗ Why It Matters

Tyler Hobbs' Fidenza collection, which Hobbs named "Fidenza" after discovering a tiny Italian town of the same name on Google Maps, continues to capture the attention of collectors around the world (even in this current perilous climate for crypto and NFTs).

The sale of Fidenza #545 follows the spike in interest in Art Blocks and generative art at the top end of the market that was set in motion by the 3AC Grails Part I auctions at Sotheby's Contemporary Day Sale in May. Fidenza #725 was at the center of the auctions, selling for a touch over $1 million. And then, about two weeks ago, Fidenza #971 sold for 370 ETH ($685k).

🕳️ Go Deeper

• Morning Minute | Fidenzas Lead Major NFT Art Rebound (May 23, 2023)
• 200 WETH Offer Accepted On Fidenza (November 7, 2022)

Today, the SEC released a press release stating that it had charged Coinbase with operating its crypto asset trading platform as an unregistered national securities exchange, broker, and clearing agency.

🔙 Back It Up

In March, the SEC issued a Wells notice to Coinbase, centered around the crypto exchange's staking service and asset listings. At the time, CEO Brian Armstrong noted that a Wells notice typically precedes an enforcement action. Now, the SEC is back to finish what it started, and the government agency's ongoing gripes with Coinbase have devolved into the lawsuit that was filed today.

The Deets

• The news comes a day after the SEC charged Binance with multiple securities law violations.
• The SEC alleges that Coinbase intertwines the traditional services of an exchange, broker, and clearing agency without having registered any of those functions with the Commission as required by law.
• The SEC also charged Coinbase for failing to register the offer and sale of its crypto asset staking-as-a-service program.
• Coinbase, Inc. and Coinbase Global, Inc. were both named as defendants, but founder and CEO Brian Armstrong was not (in contrast to the Binance suit, as in this case the SEC did not assert that Coinbase had commingled customer funds).
• Ten U.S. states also took legal action against Coinbase for violating securities laws: Alabama, California, Kentucky, Illinois, Maryland, New Jersey, South Carolina, Vermont, Washington, and Wisconsin.
• The SEC is classifying Solana (SOL), Cardano (ADA), Polygon (MATIC), Sandbox (SAND), Filecoin (FIL), Axie Infinity (AXS), Chiliz (CHZ), Flow (FLOW), Internet Computer (ICP), Near (NEAR), Voyager (VGX), Dash (DASH), and Nexo (NEXO) as securities in the lawsuit.

❗ Why It Matters

Another day, another charge against a major crypto exchange. This time the target is Coinbase, the largest crypto asset trading platform in the United States. SEC Chair Gary Gensler is hell-bent on asserting control over crypto markets, so unfortunately, this lawsuit isn't surprising.

Coinbase has tried reasoning with the SEC to no avail, and in March, when the SEC issued the Wells Notice, Coinbase's Chief Legal Officer Paul Grewal said, "Tell us the rules and we will follow them." The reality is that it's hard to really assign sound logic to the situation, and certainly some of the confusion stems from the fact that Coinbase was able to IPO in April 2021, which now in retrospect seems odd when in the second page of the suit, the SEC wrote, "Coinbase has for years defied the regulatory structures and evaded the disclosure requirements that Congress and the SEC have constructed for the protection of the national securities markets and investors." Which implies that Coinbase was able to operate as an unregistered broker for years but was also able to IPO two years ago?

🎤 Founder Feedback

Regarding the SEC complaint against us today, we're proud to represent the industry in court to finally get some clarity around crypto rules.

Remember:
1. The SEC reviewed our business and allowed us to become a public company in 2021.
2. There is no path to "come in and…

— Brian Armstrong 🛡️ (@brian_armstrong) June 6, 2023

📊 By the Numbers

The stock price of Coinbase (NasdaqGS: COIN) is down -13% on the day at the time of writing, and it was down as much as -20% when the market opened.

🧠 Learn More

• SEC Complaint filed 06/06/23 (SEC v. Coinbase)
• Morning Minute | Coinbase Sues The SEC (April 25, 2023)
• SEC Issues Wells Notice to Coinbase (March 22, 2023)

Today, the SEC released a press release stating that it had charged Binance and Binance founder CZ with a variety of securities law violations.

The Deets

• The SEC charged Binance and CZ with 13 counts of securities law violations.
• Binance allegedly operated an unlicensed stock exchange, among other issues.
• This adds to a suit already filed by the CFTC back in March.
• The SEC is also classifying SOL, ADA, MATIC, FIL, ATOM, SAND, MANA, ALGO, AXS, and COTI as "Crypto Asset Securities".

The Bulk

The Securities and Exchange Commission charged Binance Holdings Ltd. (“Binance”), Binance.com; U.S.-based affiliate, BAM Trading Services Inc. (“BAM Trading”), which, together with Binance, operates the crypto asset trading platform Binance.US; and their founder, Changpeng Zhao ("CZ"), with 13 counts of securities law violations.

The accusations included misleading investors regarding the adequacy of its procedures for detecting and controlling manipulative trading, as well as deceiving investors about its efforts to prevent US investors from trading on its unregulated platform.

Further, the Complaint alleges that the defendants concealed the fact that Binance was commingling billions of dollars of investor assets and sending them to a third party, Merit Peak Limited, that is also owned by Zhao.

Beyond BNB and BUSD, the SEC has also classified Solana (SOL), Cardano (ADA), Polygon (MATIC), Filecoin (FIL), Cosmos (ATOM), Sandbox (SAND), Decentraland (MANA), Algorand (ALGO), Axie Infinity (AXS), and COTI as securities.

🎤 Founder Feedback

CZ tweeted that Binance hadn't received or seen the complaint yet...

4.

Our team is all standing by, ensuring systems are stable, including withdrawals, and deposits.

We will issue a response once we see the complaint. Haven't seen it yet. Media gets the info before we do.

🙏

— CZ 🔶 Binance (@cz_binance) June 5, 2023

❗ Why It Matters

Binance is the largest crypto asset trading platform in the world, and it's been under increasing regulatory pressure in the past few months, along with competitor Coinbase. It's yet another dark day for the crypto space, which has been under a consistent storm cloud since the FTX/SBF debacle back in November.

And while BTC and ETH were conspicuously absent from being labeled as securities (although they are both down about -5% each on the day in the wake of the news), several others like SOL and MATIC, metaverse coins like SAND and MANA, and gaming-related tokens like AXS were put in the crosshairs.

🧠 Learn More

• SEC Complaint filed 06/05/23 (SEC v. Binance)

Hong Kong's Web3 industry leaders have formed two new associations, the Hong Kong Licensed Virtual Assets Association (HKLVAA) and Web3 Harbour, aiming to establish the city as a leading hub for the Web3 ecosystem.

The Deets

• The two new associations were announced at the Radical Finance Asia event.
• Both HKLVAA and Web3 Harbour have opened membership applications.
• They plan to commence community activities, research projects, and educational programs in July.
• The founding board of Web3 Harbour includes industry leaders from Animoca Brands, DLA Piper, WHub, and PwC Hong Kong.

The Bulk

Key players within Hong Kong’s Web3 industry announced the establishment of the Hong Kong Licensed Virtual Assets Association (HKLVAA) and Web3 Harbour. Their shared objective is to foster growth and innovation in the virtual asset and decentralized internet sectors. By collaborating and promoting best practices, they seek to fortify Hong Kong’s stature as a prominent hub in the global Web3 ecosystem.

The founding board of Web3 Harbour includes leaders from top organizations like Animoca Brands, DLA Piper, and WHub, with PwC Hong Kong joining as a knowledge partner. Meanwhile, the HKLVAA comprises founding members representing SFC-licensed firms engaged in approved virtual asset activities in Hong Kong. This blend of knowledge and experience across both associations is expected to fuel the development and growth of the virtual asset industry in Hong Kong.

Starting on June 1, Hong Kong is set to enforce new regulations for the cryptocurrency sector, demonstrating its commitment to fostering a secure and regulated environment for cryptocurrency activities.

❗Why It Matters

The creation of these associations signifies a substantial stride in Hong Kong's efforts to establish itself as a global leader in the Web3 domain. With the new regulations and these organizations, Hong Kong is proactively setting the stage for a regulated and secure environment for the growing digital assets sector.

Hong Kong is one of the world's leading international financial centers. It's home to thriving tech start-ups and is now ambitiously working towards becoming a significant hub in the Web3 ecosystem.

Binance is introducing Binance NFT Loan, a feature allowing holders of select NFT collections to secure Ethereum loans using their NFTs as collateral.

The Deets

• NFT Loan: Lets users leverage Bored Ape Yacht Club, Mutant Ape Yacht Club, Azuki, and Doodles NFTs for ETH loans
• Advantages: Offers competitive interest rates, instant liquidity, zero gas fees, and liquidity protection
• Unique Approach: Employs a "Peer-to-Pool" strategy, with Binance serving as the pool for loans
• Expansion Plan: Binance intends to introduce more options in the future

The Bulk

Binance has announced the launch of its NFT loan feature. This service, dubbed Binance NFT Loan, is designed to enable digital asset holders to obtain Ethereum loans using their NFTs from specific collections as collateral.

The service initially supports Ethereum loans and accepts NFTs from Bored Ape Yacht Club (BAYC), Mutant Ape Yacht Club (MAYC), Azuki, and Doodles collections. It provides multiple benefits to users, including competitive interest rates, instant liquidity, zero gas fees, and liquidity protection.

Binance has adopted a unique "Peer-to-Pool" approach to this service. Instead of the traditional peer-to-peer system, Binance acts as the pool for loans. This innovative structure promises to enhance the user experience and facilitate smooth transactions.

The crypto giant plans to continue enhancing this service by incorporating additional options in the future, broadening the range of NFT collections that can be used for collateral.

❗Why It Matters

Binance NFT Loan launches with a promotion offering a 70% discount on NFT Loan interest rates, offering 3.36% on the first four collections. 

🔜 What's Next?

Keep an eye on Binance's future updates, as they intend to roll out additional options for the NFT Loan feature, expanding the range of NFT collections eligible for collateral.

Learn More

• Binance Joins AI NFT Meta

Blur announced that the platform now has a partial repayment feature for the Blend protocol.

The Deets

• For NFTs bought with BNPL, you can now borrow ETH and pay back the loan in small increments over time instead of all at once.
• If your loan gets called, you can extend it by paying down as little as 0.1 ETH instead of repaying the full amount at once.
• This can also be used to refinance your loan for a better interest rate.
• To extend your Blend NFT loan, drag the Repay Amount slider whenever you repay to customize the amount.

❗ Why It Matters

The idea of borrowing at a near 0% interest rate to buy a blue-chip NFT always seemed crazy (and just another outlet for $BLUR farmers). Especially for the higher-priced collections. It just didn't make sense that you could buy a BAYC or CryptoPunk on an indefinite loan with only a couple ETH as a down payment.

And getting liquidated and losing the NFT when (not if, but when) the lender called the loan made the consequences of BNPL a tough pill to swallow for prospective buyers. Because when the lender did inevitably call the loan, it entered a Dutch auction process to automatically be picked up by other open loans in the pool with similar terms (unless none exist, which happens when the floor price of the collection sees a decline, in which case the loan is liquidated).

So being a borrower on Blend was a risky business, with the downside potential being 100% of your investment. In reality, you were buying the NFT with the intention of selling it if the floor price went up, rather than paying it down over time like a house or car.

🖼️ The Big Picture

Time will tell if this partial repayment feature changes the landscape meaningfully for borrowers. Blur wants to incentivize more users to utilize Blend, but is there enough lending liquidity in the ecosystem for users to use BNPL at attractive rates?

🎤 Community Quotes

🧠 Learn More

• Morning Minute | Blur Blends the Lines of NFT Finance (May 2, 2023)
• Blend Is Now Live (May 1, 2023)

Ledger chose to delay the release of its key-recovery feature, Ledger Recover.

The Deets

• The Delay: Ledger holds back the launch of Ledger Recover.
• The Controversy: The community criticized sharing seed phrases with custodians.
• The Promise: Ledger vows to open-source the Ledger Recover code before launch.

The Bulk

The key-recovery feature, Ledger Recover, was set to offer users a means to store encrypted backups of their seed phrases. Ledger Recover was announced last week with the promise of enabling Ledger owners to restore their private keys. 

The backlash from the cryptocurrency community was immediate and severe. Critics pointed out that the code for the Recover feature is not open-source, thus preventing any possibility of auditing the safety of Ledger Recover.

In response to the uproar, Ledger CEO Pascal Gauthier issued a letter to users stating that the firm would not introduce the new feature before releasing the code for it. 

🎤 Founder Feedback

🔜 What's Next?

Ledger will be hosting a Twitter Spaces session today at 12:30 pm ET where they will discuss the community's concerns.

🧠 Learn More 

• Ledger Recover Draws Major Criticism From Web3

.SWOOSH announces the General Access Sale for OF1 Boxes, available this Wednesday for all members.

The Deets

• The sale begins on Wednesday, 5/24, at 12pm ET
• Over 83K OF1 Boxes are available for purchase at $19.82 per box
• Members can buy up to 4 OF1 Boxes during the General Access Sale
• Each box purchase must be a separate transaction

The Bulk

Members will have the opportunity to purchase up to four OF1 Boxes during the General Access period. This is in addition to any boxes they may have secured during First Access. 

The OF1 Boxes come in two variants: Classic Remix and New Wave. Members are free to mix and match how they purchase their boxes. Whether they want four of the New Wave or a blend of Classic Remix and New Wave, the choice is theirs.

🔜 What's Next?

After the General Access Sale, members can decide between discovering what's inside their OF1 Boxes or keeping them closed. Whether it's Classic Remix or New Wave, there's an element of surprise awaiting all .SWOOSH members.

🧠 Learn More

Nike Shares Details on .Swoosh, Our Force 1 Collection

Blockchain move-and-earn app, STEPN, has successfully integrated Apple Pay into its platform, making it the first to achieve this feat.

The Deets

• Apple Pay integration simplifies the STEPN user experience for purchasing products.
• Users can now bypass the need for a separate crypto wallet.
• STEPN continues to innovate in the move&earn space, bridging the gap between Web2 and Web3 technologies.
• Co-Founders of Find Satoshi Lab, the developers behind STEPN, express enthusiasm for the integration and its impact on the Web3 ecosystem.

The Bulk

STEPN has set another milestone by integrating Apple Pay into its platform, marking a significant step forward for STEPN and the Web3 ecosystem.

Previously, STEPN users had to connect a separate crypto wallet to purchase STEPN's products, which include non-fungible tokens (NFTs) of virtual sneakers. With the introduction of Apple Pay, the payment process has become more streamlined and the user journey simpler. Users can now directly use their credit or debit cards linked to their Apple Wallet, expediting transactions while maintaining high-security standards.

Since its inception in 2021, STEPN has experienced remarkable growth and built a community where users engage in physical activities to earn valuable rewards fuelled by crypto incentives. 

📊 By the Numbers

Since its launch in 2021, STEPN has grown rapidly, scaling from thousands to millions of active users, creating a community centered around health, fitness, and earning crypto rewards.

Though down significantly from its high, STEPN's token, $GMT, is up to $0.3127 in the first 24 hours following the announcement. It is up 17% in the last 24 hours and 15% in the previous seven days. 

🎤 Founder Feedback

🧠 Learn More

• How To Get Started With STEPN

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