Introducing the DIFX Dispatch ??

Welcome to the first-ever DIFX Dispatch! Your weekly crypto, blockchain, web3 and everything in between newsletter to keep you up to date on all the happenings of the industry.?

Before you write this off as just another newsletter, we’re here to tell you that DIFX Dispatch is about quick bite-sized information you missed out on throughout the week.

So sit back, get your glasses (if you need them) and continue reading!

The Rise of the Phygital?

Have noticed the rise of a new niche within the NFT industry?

Slowly but surely we are seeing more major companies move into the Phygital space, or more specifically, NFTs linked with physical or real-world assets.

But wait what in the world is a Phygital….

A Phygital, as the name might suggest is the combination of Physical and Digital goods or experiences. An interesting concept that is taking web3 by storm, Phygitals are creating a much-needed bridge for brands who want to enter and actively participate in the Web3 world.?

For instance, Nike-owned RTFKT (“Artifact”) launched a Phygital sneaker collection which saw holders of the NFT Collection “Forge” their digital assets into physical sneakers which were limited edition and linked to their digital assets through NFC tags. In turn, Nike used its success and hype to launch their own NFT Marketplace and collection which gives loyal customers more access and exclusivity.

Since this launch, Nike has generated $186.13m in total NFT revenue with $1.3b in secondary volumes, with the Nike’s RTFKT earning almost $100m in royalties alone.?

Amazon has also made a move into the space and recently launched toys linked to an NFT collection called Pudgy Penguins, whose sales generated $500,000 in 48 hours.

Shopify has also partnered with the likes of Polygon to offer a seamless method for users to create their own marketplace and attach NFTs to their listings.

Similarly, Starbucks has also launched their NFT collection which is linked to their current rewards-based loyalty program, offering holders the opportunity to redeem their digital assets for real-world value.?

As these companies continue to find the perfect mix of blending real-world assets with NFTs, we are bound to see a massive rise in the Phygital space, which could just be the use case needed for the NFT industry to be revived.

So make sure to keep track of the Phygital trend so you don't get left behind.?

Hong Kong Emerges as a New Crypto Mecca

Hong Kong began accepting licenses for crypto trading platforms and exchanges on the 1st of June. The city has been the talking point of the year in terms of crypto adoption and regulation. Hong Kong is seen as a solution for projects in countries which don't offer the same innovative regulation. The new regulation is set to tighten up the market and introduce a formal framework for crypto companies to operate under. As far as crypto hubs go, Hong Kong has just made an instrumental step forward to being a major contender.?

Digging deeper into the regulatory language, it does seem as if the regulation is focused more on exchanges in terms of implementation and the current regulation has yet to explore other parts of the ecosystem such as custodial or advisory crypto services. There has been significant attention spent on AML and anti-money laundering requirements which are positive steps but they have not substantially clarified steps which will be taken in terms of investor protection.?

All in all, this will increase development, volume and adoption within the industry and the rest of the world can use Hong Kong as an example when other countries seek to deploy their own regulatory framework.?

Axie Infinity: From Catalyst to Resilience?

Axie Infinity back in 2021 to early 2022 was the catalyst for blockchain gaming and peaked at nearly 3m daily active users with over $600m monthly trading volumes. This immense growth led to VCs and start-ups diving into the web3 gaming ecosystem to try and replicate what Axie had achieved. The bear market and other negative incidents brought about a downturn for the game yet development continued to push forward with the long-term goal still at the forefront for Sky Mavis, the company which owns Axie Infinity.?

Now we have seen the results from their persistence and resilience with a major milestone reached as they launch Axie Infinity on iOS. The initial launch will be for players in South East Asia and Latin America which is where most of their core user bases reside. This will be a sandbox to gather data as they prepare to roll out to more locations.?

Axie Infinity is the key player in the blockchain gaming industry as they were the first mover and hold millions in their community, they have billions of dollars in backing and a growing team all working towards the same goal. If there is a route for blockchain gaming to make its way into exponential mainstream adoption, Axie is perfectly positioned to navigate the charge and revolutionize the gaming industry.?

Ready for an AI Financial Advisor?

With seemingly every organization moving/exploring AI and its GPT functionality, JPMorgan Chase took the plunge by officially filing for the trademark IndexGPT! The firm, which topped the first-ever ranking of A.hI. progress among banks this year is creating an A.I. tool to help investors pick stocks.

Yes, you read that right!?The world is getting AI Financial Advisors!!

According to the US Patent and Trademark Office, IndexGPT is an A.I. software service that can be used for the “selection of financial securities and financial assets” and help investors create more informed and data-driven choices.?

Now how accurate or viable this is still left up to debate as a growing number of financial institutions are still for the notion that financial advisory has to be human-driven.

On another AI sidenote, last month we saw that an AI-generated image actually caused a market stutter. Now this seems like a highly made-up story but we’re here to tell you it actually happened.

The image in question depicted an explosion near the Pentagon in the US, which circulated like wildfire on social media, making even well-reputed news outlets stream it as breaking news.?

Before any US authorities could make an official statement, the market ran with the news making the S&P 500 briefly dip by 0.26% but it quickly recovered once the news was revealed to be fake.

But regardless of the recovery, this begs to question the influence of a simple AI-generated image. The constant thought of whether an image is fake or real is surely not a world we want to live in, let alone regulate...

To conclude, whether it's the Phygital rise, increasing regulatory landscape or web3 gaming resurging again, the world of web3 is still running 24/7, with development and adoption happening every day, there's always a new innovation happening.

So stay tuned for the next edition of the DIFX Dispatch ??, for all the latest buzz and bits of the web3 industry.

About DIFX

Digital Financial Exchange (DIFX) is a global multi-asset trading platform that provides a secure and reliable way for users to Trade, Invest, and Store both digital and traditional assets. The platform is designed to meet the needs of both retail and institutional traders, offering a wide range of assets like Commodities, Stocks, Crypto, Indices etc; a 3rd party secure custodian wallet, IB & affiliate programs, advanced trading tools, and more. To begin your journey in diversifying your wealth, download the app now from the?iOS?or?Google Play Store, or visit us at?difx.com

Disclaimer: The content of this newsletter is only for educational purposes and should not be construed as financial advice, opinion or statements of any kind. Remember investing and trading in volatile markets like cryptocurrencies is highly risky and should only be done with the proper knowledge and understanding.