NFT Giveaway & More Amazing News
Feeling Lucky?
Our new giveaway started on Friday 22nd! We’re giving away 100 Standard FayreCard NFTs to 100 lucky people on our Discord. The main advantage of the FayreCard is that it allows you free transactions in our user-friendly multi-chain Fayre Marketplace.
How to enter? Join our Discord, verify yourself, go to the #giveaways channel and react to the post! Winners will be chosen randomly on Friday 29th of April.
Any Digital Land Owners Out Here?
This week's poll is about Digital Land. Is this Metaverse land rush just an illusion? Only time will tell. We do know that there are investors who are willing to pay millions of dollars for virtual land plots in the Metaverse. Interesting, right?
So how about it, do you own any virtual land?
What's New This Week?
Stablecoins
Before we dive into stablecoins it’s probably best to start with its definition and purpose. Stablecoins are cryptocurrencies whose values are tied to real-word assets, such as the United States Dollar (USD). They live on the blockchain and enable speed of transactions without the need of a middleman. For this and other reasons, such as providing liquidity, they have been instrumental in developing Decentralised Finance (DeFi) - helping move millions without slippage. They also act as a building block to building more complex financial products (loans with collateral, options, …) and to onboarding Traditional Finance (TradFi) into the crypto space. They also help solve one significant challenge: savings accounts that have a yield that is below the inflation rate (i.e. TradFi investors losing money by saving).
One of the main value propositions is they offer price stability (hence, the name stablecoins) and are pegged by a reserve of assets that ensure their value and, for that reason, convey confidence to those trading them. In fact, they are amongst the crypto assets with highest market capitalisation (as you can verify here by looking at the ranking of some stablecoins such as USDT, USDC and UST). This is important to clarify because it’s common that less savvy investors purchase these assets for the purpose of speculation when the truth is they are not meant to fluctuate in value, simply reflect their intrinsic (pegged) value. Anyway, they are a major asset class and some believe their combined market capitalisation will be similar to the one of bitcoin and ether.
The other aspect is that stablecoins are in a war for dominance and, as a result, endeavour to bootstrap user growth by designing and implementing stability mechanisms and paying out the highest yields. For context, and to keep you updated with the latest hype, there’s a key liquidity pool named Curve Tri-Pool that provides liquidity across three stablecoins (DAI, USDC and USDT) and is focused on efficient stablecoin trading (swapping) while offering low-risk yield to those providing liquidity (i.e. those lending their stablecoins). However, its dominance is being challenged by the cofounder of Terra Labs (Do Kwon, the guy behind Terra stablecoin) who recently announced the 4pool, which in its turn provides liquidity across four stablecoins (USDC, USDT, UST and FRAX). By creating a more attractive pool, it could be that the Tri-Pool will dry out and funds will head to this new Pool.
As a result of this war, the DAI stablecoin will be impacted as it’s not included in the new pool of assets. As part of its military tactic, Terra Foundation has been focusing on creating alliances with Bitcoin and Avalanche communities to grow the adoption of UST (Terra stablecoin) and, simultaneously, acquiring bitcoin and AVAX (Avalanche native currency) to protect the UST peg.
While stablecoins fight for dominance, they are also getting attention from regulators and politicians, namely those concerned that stablecoin issuers are helping to create a parallel digital dollar economy outside of the modern financial surveillance system. The silver lining is that regulated stablecoins can coexist with more limited Central Bank Digital Currencies, and even add resilience to our future financial system, by removing a single point of failure. Perhaps embracing stablecoins pegged to USD (and other assets) will even help maintain its status as the world’s preferred reserve currency.
Web3 Never Sleeps
? Punk it: Crypto Punk bought for over $3 million.
? Mr. Wonderful: Kevin O'Leary-backed company to acquire crypto exchange.
? Security tip: Disable iCloud backups for Metamask.
? Terra's UST stablecoin: Becomes third largest.
? Fashion: Louis Vuitton releases new NFTs.
? Bitcoin ETF Spot: to list next week in Australia.
? Be Safe: 13 biggest DeFi hacks and heists.
? Ethereum community: DevConnect is currently taking place in Amsterdam.
Use This Ice-Breaker Next Time You Need One:
"What on Earth is a rug pull?" It happens when a developer markets a project to generate sales and then abandons it, taking existing profits. The result is the project value goes to zero - leaving buyers with a total loss (and perhaps a silly NFT).
Tax Season in the US
Are you all in?
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.