ETH 2.0, Web3, Metaverse and Beyond

An NFT That Gives You Wings

Only a few Cool Pericos NFTs have just landed. Why should you catch one? It is more than a token that you can buy and sell, it also gives you exclusive benefits such as early access to new drops, exclusive gatherings at the RCD Espanyol stadium, the chance to attend the presentation of the new players of the season, RCD Espanyol T-shirt giveaways and more sweet treats to be announced soon.

Welcome to the Metaverse

We launched a new series comparing the top Metaverses out there today. So get ready to join us on our quest to find the best Metaverse features, top Metaverse developments, and further explore the direction the technology is trending.

Are You into Web3?

We would like to know how deeply you are involved in the new era of the Web. So we invite you to take part in this week's poll.

What's New This Week?

Decoupling: until ETH 2.0 sets us apart

Patience is a virtue. We’ll explain why. But first, let’s provide some context.

The Federal Reserve (Fed) has a difficult job ahead: inflation (though transitory) is very high and the use of monetary policy instruments at its disposal to control inflation, such as altering interest rates, determines a clear trade-off as it can slow down the economy, particularly if they are raised too quickly or too much in one go. Secondly, the Fed is planning to sell assets it acquired during its pandemic-driven quantitative easing programme, as opposed to purchasing more assets or even holding the ones they own. This is why there’s more and more talk about the US entering a recession in the next couple of years, as historically the Fed has failed to tame inflation without damaging the economy.

Can crypto assets decouple from stonks before that happens?

In other words, bitcoin needs to prove it can really decouple from traditional assets or else the Fed's policy will still influence the orange coin. Historically, there has been a strong correlation between the top 2 crypto assets (bitcoin and ether), and the broader US stock market (Nasdaq and S&P 500), which tends to increase in times of market stress (aka risk-off moments).

In theory, this decoupling should already have occurred (or simply could be our wishful thinking), especially because Satoshi’s contribution to the world materialises as a deflationary asset and deflationary assets accrue value in the long-run and are also seen as a reserve asset, i.e. an asset that investors rush to during recessions and times of high inflation. Hence the narrative of bitcoin being a (better and digital) version of gold.

When taking a step back and looking at the roadmap in the crypto landscape, there’s an important milestone, which could be the turning point and the driver to accelerate this decoupling. We’re talking about ETH 2.0 (aka “The Merge”), whereby it’s expected the Ethereum network will transition from “Proof-of-Work” to “Proof-of-Stake”.

This is important because it’s a fundamental change in the narrative and, if all goes well, will increase the attractiveness and utility of the Ethereum network. Currently, some investors are already attempting to calculate Ether’s value according to the discounted cash flow model. However, applying that model will be much easier with ETH 2.0 as cash flows are more predictable. Now, this is a game-changer as its revenue generation model will be easier to understand for traditional investors and, as a result, will be a driving force to attract new investors into the crypto landscape starting with ether.

In the end, patience might be the right pill to swallow until crypto becomes an asset class of its own and sets its own course.

Web3 Never Sleeps

• Web2 on the move: Instagram to support NFTs.
• Web2+1: Google seems to be putting together a Web3-focused team.
• Blockchain Venture Capital: info on the landscape.
• Thoughts on owning assets: and how to analyse them.
• What do Ice Cube, Snoop Dogg and Gary Vee have in common? NFTs.
• DeFi news: ERC stuff.
• Madonna Mia: Beeple and Madonna to drop an NFT with proceeds going for nonprofits.

Use This Ice-Breaker Next Time You Need One:

Whitelist or allow list are a list of addresses that get early and guaranteed access to mint NFTs at a specific date, window frame and sometimes even at a lower price. We'll speak more about this in a future edition.

A Bright Mind Has Spoken (Cobie)

Modern Flywheel?

That's it for this week's full scoop! Please feel free to comment, share and discuss NFTs with us, we're here to help. Stay sweet!??

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The information in this email is provided by Fayre Group Ltd. (BVI) on an indicative basis only and shall not be considered binding or final in any way. Fayre Group Ltd. (BVI) reserves the rights to amend any of the parameters stated in this email with no notice. The sale is not offered nor available to US residents.