TOP10 NEWS OF THE WEEK / 05.04.24
SPECIAL PROJECTS
OPEN CALL FOR VISIONARY DESIGNERS AND CREATIVE TEAMS
?? Are you ready to shape the visual narrative of?Metaverse Fashion Week 2024?METAVERSE FASHION COUNCIL ?is excited to announce an open call for designers to craft captivating campaigns that will set the stage for this groundbreaking event.
Metaverse Fashion Week?2024 isn't just about showcasing cutting-edge designs; it's about immersing audiences in a world where fashion transcends boundaries and takes on new dimensions.
We're seeking innovative campaigns that incorporate 3D elements, video content, and stunning imagery to capture the essence of the metaverse and the future of fashion.
Here's what we're looking for:
3D Visuals:?Create dynamic 3D renderings that bring the virtual runway to life. Whether it's futuristic landscapes, digital avatars, or interactive environments, show us your vision for the metaverse fashion experience.
Video Content:?Produce engaging videos that tell a story and ignite the imagination. From teaser trailers to behind-the-scenes footage, demonstrate how your campaign will captivate audiences and leave them eagerly anticipating Metaverse Fashion Week.
Photography:?Capture the essence of your designs through striking images that showcase every detail and angle. Whether it's high-fashion editorials or avant-garde photoshoots, let your creativity shine through in every shot.
To submit your campaign proposal, please include:
- A detailed concept
- Examples of previous work (portfolio)
- Estimated budget and timeline
- Contact informationSubmissions should be sent to?[email protected] ?by May 30.
Selected campaigns will have the opportunity to be featured prominently in promotional materials, social media channels, and virtual exhibitions leading up to Metaverse Fashion Week 2024.Join us in redefining the future of fashion in the metaverse! ??
FASHION SYSTEM
LUXURY BUCKLES UP AS Q1 SIGNALS MORE TURBULENCE AHEAD
Vogue Business : The first-quarter earnings were a mixed bag that underscores ongoing challenges in China.Amid an uncertain economic climate, a softening demand and a tough comparison basis in Q1 (the first quarter of 2023 marked China’s reopening after three years of strict Covid-related restrictions) plus Chinese customers shopping abroad, notably in Japan, “Mainland China is proving to be tough,” as HSBC analysts put it, following a trip to Asia to meet with investors and corporates in Singapore, Hong Kong, Shanghai and Seoul.
“With the exception of high-end brands in luxury (for example Loro Piana , Brunello Cucinelli , Hermès , Zegna ), edgy outdoor and sporting goods, and beauty retail developments, we haven’t picked up many supportive comments in luxury” they wrote in a note in late March.Earning reports proved them right. Hermès, Prada and Moncler were the outliers in China, but for most, it was rough. Kering CFO Armelle Poulou cited a “huge drop in traffic in Asia Pacific”.
?? Bracing for Q2Despite their strong beats, Moncler and Hermès stocks slightly slipped as the markets reacted to executives’ comments on April trends. “Honestly, there are no regions that are performing particularly well or particularly badly. A region that is of particular attention for everyone is China and the Chinese cluster: the performance is still positive, but not as strong as the results we reported for the first quarter,” Moncler’s Santel said.
At Hermès, the management flagged a softer store traffic in Greater China in March. Solca pointed to “a couple of clouds” over Hermès. “The China footfall decline does raise the question whether the non-leather goods métiers, which are more exposed to the middle class, can keep up the pace,” he said. Chauvet agrees: “While leather goods volumes are capped at a 7 per cent growth per annum, risks of normalising growth in non-leather categories (particularly ready-to-wear, watches and jewellery, meaning around 40 per cent of sales combined) could materialise this year.”According to HSBC estimates, sector growth will further decelerate to 1.5 per cent before returning to double-digit growth in Q3 and Q4. “The performance divide between top-of-mind brands and the others will continue to enlarge in the second quarter and rest of year,” says Mario Ortelli, managing partner at consultancy Ortelli & Co.
learn more:
WHAT'S THE SECRET SAUCE BEHIND MIU MIU'S APAC SUCCESS?
Despite luxury fashion competition mounting, Miu Miu is repeatedly coming out on top among consumers, particularly in Asia. What’s propelling the brand?Miu Miu is on a roll. The Prada Group-owned, youthful sister brand has been enjoying peak popularity recently – a winning streak that’s set to continue into the second quarter of 2024.Last week, the label reclaimed its title as “the hottest brand in the world” according to?Lyst’s Q1 Index, an accolade it has now achieved several times. In China, the brand also climbed up Weibo’s Hot Search List.On Xiaohongshu, Miu Miu has amassed over 400,000 instances of user-generated content (UGC), while the hashtag Miu Miu Girls Camp, where users share their Miu Miu outfits, has over 100 million views.
It isn’t just cultural clout that Miu Miu is earning – profit is skyrocketing, too.Miu Miu?reported?stellar growth for the first quarter of 2024, with revenues up by 89 percent year on year, versus revenue growth of 58 percent in 2023. The brand now makes up over a quarter of Prada Group’s revenue.
The buzzy label has also hit a sweet spot in APAC. Prada Group?cited?Miu Miu’s strong growth trajectory across China, Japan, and South Korea as key drivers behind the group’s profits. In 2023, sales in Asia-Pacific?rose?24 percent YoY.
What’s the secret sauce behind Miu Miu’s Asia success?
learn more:
MCM PRESIDENT SABINE BRUNNER ON "MAVERICKS", MARKETING AND THE METAVERSE
“I came to MCM WORLDWIDE because Sung-Joo Kim, the chairwoman of the MCM Group, wanted to bring the brand closer to its original position without drastically changing it," Sabine Brunner told FashionUnited. The decision to strategically realign the brand came after the departure of creative director Dirk Sch?nberger ), who quietly left the Munich fashion house at the beginning of 2023.
?? The (digital) futureGrowth is currently a top priority at MCM, but not just through further expansion into distant countries, even if some places are still missing from the list of 46 countries in which the brand is represented. One such location, which may not necessarily be on the list, but which MCM is determined to conquer, is the metaverse. Not least because Kim, the group's chairwoman, firmly believes in the digital future.
Brunner calls her boss a visionary and emphasises that she is ahead of her time, which has also driven a further step into the metaverse and the upcoming launch planned for June of a project that is extremely challenging and progressing very quickly. The project, developed together with collaborative partner The Caliverse ), is described by the global commercial and brand officer as a “fully-fledged environment” in which you can lead a parallel digital life. However, there are also connections to real life, as MCM products that can be purchased there for your future personalised avatar will also be available at home. "This project will open many doors - and it is very sustainable.
"Despite all the digital plans, the company is still planning to open up to another country in the real world this year, namely India. Even if the main focus is on "achieving a lot with what we already have", noted Brunner. "Ultimately, we want MCM to become more present and more visible.
OTB APPOINTS STEFANO ROSSO AS MARNI'S NEW CEO
FashionUnited : The OTB Group has announced the appointment of Stefano Rosso as Marni’s new CEO.
The company said Rosso replaces Barbara Calò, who will support him during the transitional period. Rosso will report to OTB Group CEO, Ubaldo Minelli.“Stefano will have the important responsibility of fast-tracking Marni’s positioning on the luxury market and the new post is a further step forward in his professional career. I believe that his international experience and innovative vision will prove decisive in raising Marni’s iconic profile and reaching an even broader audience,” said OTB Group chairman Renzo Rosso in a statement.
Rosso has previously served as chairman of Maison Margiela, board member of the OTB Group and CEO of BVX (Brave Virtual Xperience).“By appointing Stefano as Marni CEO, we wanted to strengthen the leadership of a brand that is a fundamental driver for the growth of the entire OTB Group. Marni still has great potential to be explored and we are convinced that Stefano is the right person to take it forward,” added Ubaldo Minelli.In addition to his current positions in the OTB Group, since October 2021 Stefano Rosso has been a member of the board of Aura Blockchain Consortium, where he represents OTB, a steering member, together with LVMH, Prada Group and Cartier (Richemont). He is also president of the L.R. Vicenza football team.
VESTIAIRE COLLECTIVE: "OUR WORLD CANNOT AFFORD FAST FASHION"
“The idea that fast fashion is more affordable is simply wrong” - this is the conclusion of new research by Vestiaire Collective .
The French resale platform published its ‘Circularity Report 2024’ last week. The company's third annual impact report shows the results of a joint study with carbon tracking software Vaayu.A consumer survey with 13,400 participants in five markets — UK, US, France, Italy and Germany — analysed and compared the durability and wearability of second-hand clothing with the purchase of new fast fashion. The result is clear: ?Across all categories and price points, high-quality second-hand fashion items offer around 33 percent lower cost-per-wear compared to fast fashion items, which are worn twice as often on average”.The true cost of clothing.
In order to quantify and compare the value of clothing, the resale platform has developed a ‘cost-per-wear’ formula. The price of a product is divided by the number of wears. For second-hand clothing, the resale value is first deducted from the price. The calculated result helps to understand the individual costs per item of clothing and should “contribute to understanding the true cost of fashion”, according to the report.
Utilising this method, the online platform aims to “change consumers' perception of the price of an item and encourage them to invest in more economically and environmentally sustainable items.”“This report is a wake-up call. It shows how important it is to tackle the overconsumption and waste that temptingly low prices for new goods provoke,” said Fanny Moizant , president and co-founder of Vestiaire Collective.
The survey revealed that consumers keep their second-hand products on average 31 percent longer, resulting in a lower cost-per-wear across all product categories. Fast fashion products are worn half as often on average, and the difference is greatest for shoes. For example, high-quality, second-hand coats are worn on average four times as often as new fast fashion coats. In a cost-per-wear comparison, second-hand coats, at 1.62 euros, perform significantly better than comparable cheap new products at 4.53 euros.“Cheap fast fashion is ultimately the wrong way to go. It misleads people, because in the end they have to replace the items over and over again with new ones. We are in favour of the circular economy because we want to protect both our customers' wallets and our planet. Second-hand luxury items live longer and are more cost-effective over time. Our motto ‘Think First, Buy Second’ is more relevant today than ever,” commented Dounia Wone , chief impact officer at Vestiaire Collective.
METAPHYSICS
DKNY LAUNCHES METAVERSE COLLECTION IN ROBLOX
DKNY, the renowned fashion brand, is stepping into the virtual realm with the debut of its exclusive collection on Roblox . By leveraging the massive user base of?Roblox, DKNY aims to connect with millions of players through virtual items inspired by its recently launched Heart of New York range.
In collaboration with in-game retailer?Dubit , DKNY is expanding the digital apparel and accessories options available on Roblox. The collection, derived from DKNY’s Heart of New York line, comprises 20 stylish pieces including jackets, handbags, and hats. This strategic move underscores DKNY's commitment to innovation and engagement in the digital space.
Accessible across multiple Roblox games, DKNY’s virtual offerings promise an immersive experience for players. Moreover, the brand is introducing a limited edition specialty item, exclusively available for redemption by Roblox players, adding a unique touch to the virtual fashion landscape.
Joining a growing list of brands embracing Roblox’s vast audience, DKNY's initiative follows in the footsteps of industry giants like Adidas, Hugo Boss, Mango, and Walmart. By integrating interactive games and virtual product renderings, these brands are tapping into the dynamic world of gaming to engage with consumers in new and exciting ways.
Dubit, the creative force behind DKNY's virtual collection, has a track record of collaborating with prominent brands and retailers such as H&M, Unilever, and Adidas to create immersive in-game retail experiences. With this latest venture, DKNY aims to captivate a staggering audience of 20 million Roblox players, signaling the brand's ambition to lead in the virtual fashion landscape.
Andrew Douthwaite , CCO at Dubit, expressed excitement about the collaboration, highlighting the potential of virtual merchandise to resonate with digitally native audiences. This partnership underscores the evolving landscape of retail, where virtual experiences play a pivotal role in brand-consumer interactions.
As Roblox continues to evolve as a platform for brands and retailers, it is introducing innovative advertising solutions to enhance engagement. With the introduction of immersive video ads, Roblox is providing advertisers with new avenues to connect with users, further cementing its position as a leading destination for digital experiences.
Before making its foray into Roblox, DKNY participated in Metaverse Fashion Week alongside other notable brands in March 2022, signaling its early recognition of the potential of virtual fashion events. This strategic move reflects DKNY's forward-thinking approach to embracing emerging trends and technologies in the fashion industry.
AVATAR ECONOMY: THE DISRUPTION OF EVERYTHING AND HOW TO ENABLE THE IMPOSSIBLE
METAVERSE FASHION MAGAZINE by Costantino Roselli ? Welcome to the Avatar Economy.The Avatar Economy answers the question: How can unique products be created, offering unimaginable experiences, through a sustainable business process?Additionally, the Avatar Economy serves as the ultimate solution for sustainability. In our case study (Gabby), we achieved a sustainable process percentage of 97%, which remained consistent throughout the entire business process, from initial design to customer delivery. Other sustainability solutions fall short of reaching this percentage and cannot offer holistic solutions.Furthermore, the Avatar Economy ensures 100% inclusivity, as a diverse team from around the world collaborates under a network to produce everything without necessarily knowing each other.
The value they share is the only measure everyone is looking for.The Avatar Economy is based on avatar lifestyle. For the first time in human history, we have built a business model where humans are in the secondary market while their avatars occupy the primary one.
Avatars are not merely our digital twins. Each avatar represents a personality stemming from an individual or team, interacting with others in what we call the Netizens World, a Metaverse space.The ability to create multiple personalities, hence avatars, across various Metaverses creates an infinitely expanding market where business opportunities, sustainability, and inclusivity are foundational.?? Why did the Metaverse failed?
One of the significant issues with the Metaverse is the confusion between it and Meta, formerly Facebook. This confusion is understandable, as Mark Zuckerberg's famous keynote popularizedthe term "the Metaverse" among those unfamiliar with it.When the Metaverse became a buzzword, every company started moving in that direction withoutfully understanding it. They believed it was another marketing tool to sell their current products totheir existing audience or an opportunity to reach a new audience (Gen Z).
However, they failed to provide satisfactory answers to their current audience's question: "Whybother?" Their storytelling lacked depth, and they remained ignorant about the Metaverse. For the new audience, it was a disaster, as they attempted to sell as new what had been played with for over 20 years.The Metaverse is a realm of avatars, not people. It is a space where physical constraints do not apply, which is what makes it special. Comparing it to a tool is insufficient; it should be likened to a revolutionary force, akin to the industrial revolution. The Metaverse represents a step in human evolution, a concept I will delve into in my next article and upcoming book “Rubik’s Cube Melted”.
learn more:
领英推荐
STAR-POWERED PHYGITAL FASHION START-UP HITS INVESTOR FUNDING
XTENDED iDENTiTY makes the rounds from Grimes, Bad Bunny and Mugler to investors, as it dips a toe in pre-seed funding.
London-based “phygital”?fashion?house Xtended Identity, who counts famous figures like Grimes, Bad Bunny,?Megan Thee Stallion, Erykah Badu and Ive as clients and Thierry Mugler as collab partner, is dipping a toe in the fundraising pool with a new $400,000 pre-seed round led by J-Cube Ltd, founder Xing Yunjia told WWD.
That may not be a staggering amount, but it marks an important milestone for the scrappy, three-year-old virtual fashion start-up. The business aims to hit it big with physical-plus-digital?goods, which seems more likely since it was discovered by Grimes, the singer, visual artist and ex-girlfriend of?Elon Musk.“Really, at our beginning, we were building everything based on the internet. So we were trying to post our work in building the digital?fashion?… and collaborate with some influencers to build organic steam from social media,” she recounted. “Grimes was the first celebrity who reached out to us. She was amazed by our digital fashion world pieces, and she wanted to be the first celebrity to wear it.”The April 2023 edition of Cybr magazine featured Grimes wearing original looks by Xtended Identity, in a surreal series of artwork that was based on a real-world photoshoot with physical pieces. Another magazine cover, this time in Rolling Stone, spotlighted Bad Bunny in the tech fashion brand’s twisted metal accessories in the July/August 2023 issue. Rolling Stone is owned by the same parent company as WWD, Penske Media Corp.
In short order, the brand was hit up by stars like Megan Thee Stallion, Erykah Badu and K-pop group Ive. Then it clinched a collaboration with?Mugler?on its first digital fashion project?— an augmented reality filter for Instagram highlighting its Alien Goddess Supra Florale fragrance.
Now, Yunjia is in conversation with other chart-topping, A-list musical performers, while working on another project — a Pride Month collaboration with drag queen community figures slated for June.
Today, her priority goes beyond flights of digital fancy. That’s not a creative choice as much as a business decision.
According to Yunjia, when the company polled consumers, it found strong sentiment against purchasing digital fashion. “They don’t feel their ownership,” she explained. “They feel like digital fashion should be free, it should [fly across] social media.” Notably, Xtended Identity has previously dabbled with different models, from digital fashion rentals to NFTs, primarily around AR fashion that layers digital looks over people’s selfies.
learn more:
WALMART AND ROBLOX ARE TEAMING UP TO MAKE VIRTUAL E-COMMERCE A REALITY
The introduction of real-life e-commerce could be a watershed moment for the company’s ambitions to become an all-encompassing destination for virtual life. Walmart’s Roblox e-commerce experience launches later today, with users inside the pre-existing?Walmart Discovered?able to have real-life items shipped directly to their doorsteps. Users entering the experience will be greeted with a new storefront showcasing virtual twins of select physical items sold at real-life Walmart stores.?After trying out the virtual items on their avatars, players will be able to load an e-commerce experience that takes the form of a browser window inside Roblox imitating the experience of shopping on Walmart’s website —?essentially a virtual laptop set up inside Roblox to access Walmart.com . The commerce feature within Walmart Discovered will be gated specifically to users aged 13 or older in the United States only.
“There is a traditional sort of checkout flow where you put your name, your address and your credit card information, and that’s all powered by a Walmart API that handles all of the information super securely — it’s very safe,” said Walmart director of brand experiences and strategic partnerships Justin Breton. “And once you hit checkout, you’ll get your confirmation email from Walmart. All of that is handled by us on the back end, the user will then get their item in the mail, but the virtual twin is granted immediately back on Roblox.”
To promote the e-commerce experience, Walmart collaborated with three Roblox creators —?Sarabxlla, MD17_RBLX and Junozy — to design Robloxified versions of three physical Walmart products, which include a?No Boundaries festival hobo bag, a?TAL stainless steel tumbler?and?Onn wireless headphones.Roblox first teased the launch of e-commerce during November’s?Roblox Investor Day, and the Walmart experience is a pilot test that will run through the month of May. During the pilot test, Roblox will not receive a cut of item sales, with all revenues going directly to Walmart. Instead of acting as a new revenue stream for Roblox in the short term, the test will gauge users’ willingness to purchase physical goods on the platform.“We are excited to start testing real-world commerce as a key step towards enabling it in the future for our community of creators and brands,” said Roblox vp of economy Enrico D’Angelo. “Shopping for virtual items is already an important element of how people engage and express themselves on Roblox daily, so our goal is to gather feedback, test the technology and learn what resonates with Gen Z customers the most when it comes to shopping for physical items.”
GMONEY TALKS 9DCC'S EXPANSION AND PSYCHOLOGY OF FASHION
Much like the crypto world, fashion rarely stays stationary for too long.
At their core, both industries look to evolve and bring fresh ideas to their respective communities in new and exciting ways. Few are straddling the line between both industries as well as?gmoney?and his newly expanded brand,?9dcc. Rooted in crypto sensibilities but developed with the craftsmanship of a luxury fashion house, 9dcc is giving crypto enthusiasts a new way to signal their participation in the space.
nft now sat down with gmoney at his recent 9dcc pop-up in NYC’s SoHo fashion hub to talk about expanding to a full apparel collection and his vision for the brand’s future.?
?? nft now: You’ve expanded your line from accessories and basics into full, ready-to-wear clothing. Tell us a little bit about your vision for the collection.
?? gmoney:?Everything up until now was more our ‘proof of concept’. In the first iteration we created, we knew there would be a demand for a crypto-native luxury fashion and lifestyle label. Especially because, at that point in time, there wasn’t a way for you or me to signal that with our appearance that we’re in crypto, and there wasn’t access to high-quality crypto-centric products. People were either rocking a PFP collection on their chest or a Bored Ape on a hoodie. That’s not the aesthetic that I personally wanted to wear. So, the opportunity I saw was that I could walk into any store of these luxury brands and buy anything on the rack, but it wouldn’t signal to anyone that I was in crypto, just that I had money. Or if I wore crypto merch, it wasn’t to the quality nor the aesthetic I wanted to wear and didn’t match the level of craftsmanship I had hoped for to match the rest of my wardrobe.Iteration-01 was us testing to see if others felt like me. “Is there a demand for this?” It turns out there was, and it was bigger than we expected. And then Iteration-02 was an evolution of that concept – now that we know people want a brand like this, what does a world look like where you can walk into our store and get something that was a unique one of one? And that’s why we teamed up with Snowfro. What we discovered with Iteration-02, was the creation of every single one of those unique pieces, which was an amazing feat in and of itself. Iteration-03 was, “Now that we have distribution, how do we get more things out into the mainstream world?” And that’s why we did the treasure hunt in New York City. We gave out a bunch of hats to the community members and wanted to expand our community beyond the small community we had at that point.
learn more:
SINGULARITY
LUXURY'S NEXT BIG PERSONAL SHOPPER? META AI SMART GLASSES
?? Meta’s AI smart glasses now offer style adviceOn April 23, tech giant Meta announced new features for its second generation, AI-powered smart glasses, which launched last September. Starting this week, the product will offer style advice to wearers in the US and UK.
Coined “Meta AI with Vision,” users can look in the mirror and ask the glasses for feedback on their outfit. Additionally, they can prompt the product to recommend garments that would complement a specific item of clothing.
There’s a fundamental shift occurring in how consumers shop. Emerging advancements like virtual try-ons, AI styling bots, Apple’s Vision Pro headset, and Meta’s on-hand assistant indicate a future where smart technology plays a crucial role in the shopping experience, whether it’s at home or in-store.
?? Gucci deepens its gaming playbook with new NAVER Z (ZEPETO) activationGucci?has introduced a virtual replica of its Parisian travel store, Valigeria, on the popular South Korean gaming platform Zepeto. Inspired by elements from video game titles like Prop Hunt and Fortnite, players can engage in a hide-and-seek-style experience where they must blend in with different Gucci bags to evade the “Seeker.” At the end of each month, the top three gamers have the chance to win a Gucci sports bag.
Gucci is well-accustomed to the?gaming?ecosystem, having launched multiple successful activations across destinations such as Roblox, The Sandbox, and Zepeto. This activation introduces a fresh narrative with new incentives, taking Gucci’s gaming strategy to a new level.
However, due to a lack of widespread promotion, the activation went unnoticed by the majority of consumers, hindering potential engagement and online exposure. Previously, Gucci has achieved remarkable levels of participation with its gaming campaigns, such as the Roblox Gucci Garden initiative, which garnered over 19 million visits, according to the metaverse data platform Geeiq. Unfortunately, this project seems to have missed the mark.
?? Ralph Lauren launches virtual try-on mirrors in stores
To support the launch of its new fragrance,?Ralph Lauren?teamed up with AR startup Ffface.me on an interactive mirror, located in the retail hotspot of Macy’s New York.Users can interact with the mirror to transform their reflection into a visual representation of the fragrance. Afterward, they can scan a QR code to receive the image directly on their phone, enabling them to share their experience with their own online community.
AR-powered smart mirrors are poised to become a permanent fixture in physical stores. Their seamless integration and user-friendly features, requiring minimal tech expertise, have resonated with luxury brands that are eager to lure shoppers back to brick-and-mortar locations.
learn more:
VALUE PROPOSITION
VENTURE CAPITAL POURS $2.4B INTO CRYPTO STARTUPS IN EARLY 2024
Cointelegraph : Investments in the first quarter were influenced by innovation in areas like restaking, modularity, Bitcoin layer-2 solutions, and macroeconomic factors.Crypto and blockchain startups have witnessed a significant uptick in venture capital investment.
According to data compiled by Galaxy Research , investors?injected?$2.49 billion across 603 deals in the first quarter of 2024, representing a 29% increase in funding and a 68% rise in deal count from the previous quarter. A sustained recovery must be confirmed by subsequent quarters of growth, the report states, adding:
“This was the first rise in both capital invested and deal count in 3 quarters, perhaps signaling that Q4 2023 was the “bottom,” although a continuation of QoQ increases – and a more meaningful increase – would confirm that over the coming quarters.”Several factors influenced this quarter’s investment dynamics, including the introduction of Bitcoin exchange-traded funds (ETFs), innovations in areas such as restaking, modularity, and Bitcoin layer-2 solutions, as well as macroeconomic factors such as interest rates.
The historical correlation between Bitcoin prices and venture capital investments in crypto has weakened over the past year. The report notes that while Bitcoin has shown considerable price increases, venture capital activity has been stagnant until the recent surge in early 2024. However, investment levels are still not comparable to those reached when Bitcoin previously exceeded $60,000.
In addition, 80% of the invested capital in the quarter was allocated to early-stage startups. In contrast, later-stage companies faced tougher conditions, as many larger, generalist venture capital firms have either left the sector or substantially cut back their investments, noted Galaxy.
Investment activity within the industry was dominated by the infrastructure sector, which accounted for 24% of total capital raised in the quarter, including EigenLayer’s $100 million funding round. Moreover, the Web3 and trading sectors captured 21% and 17% of the total capital, respectively.
Geographically, the United States remained a dominant force in the crypto venture space, with American startups involved in 37.3% of all deals and capturing 42.9% of the invested capital. Singapore followed with 10.8% of the total deal count, while the United Kingdom had 10.2%, Switzerland had 3.5%, and Hong Kong had 3.2%.
STRIPE EXPANDS CRYPTO RETURN WITH AVALANCHE INTEGRATION
Stripe 's new Avalanche integration means that users can buy AVAX directly through the mobile app—without having to go through an exchange.
Payments processor Stripe is going all in on crypto, it seems, as it today announces its integration of?Avalanche.?Just last week, the San Francisco-based firm announced it was allowing companies that use its technology to accept?USD Coin?(USDC) stablecoin for online payments.?And today, it said that its retail customers will have easier access to the Avalanche ecosystem. Ava Labs , the development company behind the Avalanche blockchain, said its wallet, Core, would use Stripe’s?fiat-to-crypto onramp.
In short, the integration will allow users to seamlessly access usually niche crypto products and?decentralized apps?like decentralized exchanges and NFT platforms that run on Avalanche.?A widget will be installed in Core allowing anyone to buy Avalanche’s native AVAX coin using debit or credit cards, without going through an exchange. Stripe will take care of all things related to KYC, the announcement read.?Avalanche is a crypto network that wants to compete with?Ethereum?by offering a cheap and fast blockchain for developers to build upon. It is the network behind AVAX, the 13th largest digital asset with a $13.6 billion market cap. As of Monday morning, AVAX was trading above $33 after having dropped 16% since this time last week. It has lost 3.5% in the past 24 hours after having followed the trajectory of the rest of the market, which is starting the week with a lag.?Stripe’s head of crypto, John Egan, said in a press release that it's the company’s goal to “allow everyone to access the power of Web3.”Stripe, which provides businesses with the means to accept payments, last week said it would integrate stablecoin payments into its infrastructure. Now, online businesses will be able to accept USDC, a digital token and the sixth biggest cryptocurrency by market cap.?Back in 2014, Stripe?became?one of the first major companies to accept?Bitcoin?payments. It shuttered the service back in 2018, but added that it was still “very optimistic about cryptocurrencies overall.”?
TETHER, THE ISSUER OF USDT, ANNOUNCES A RECORD PROFITOF $4.52 BILLION IN Q1 OF 2024
Tether, the stablecoin issuer behind?USDT, achieved an impressive net profit of $4.52 billion in the first quarter of FY24, setting a remarkable record for the company.Tether Holdings Limited has released its attestation report for the initial quarter of FY24, as of March 31, 2024, which extends beyond the reserves supporting Tether Fiat-denominated stablecoins. This report offers a comprehensive insight into the financial strength of the entire Tether Group.
The first quarter of 2024 marked a groundbreaking moment for Tether Group, with its net profit soaring to an astounding $4.52 billion. This achievement is a significant milestone in the company's history, propelled by net operating profits primarily from US Treasury holdings, complemented by mark-to-market gains in Bitcoin and Gold positions.
Additionally, Q1 2024 showcased Tether's unparalleled success in increasing both direct and indirect ownership of U.S. Treasuries, surpassing $90 billion. This expansion includes indirect exposure through overnight reverse-repurchase agreements and investments in US Treasuries via money market funds.The commitment to transparency was further emphasized with the disclosure of Tether's net equity for the first time, amounting to an impressive $11.37 billion as of March 31, 2024. Paolo A. , CEO of Tether, highlighted the company's dedication to transparency, stability, liquidity, and responsible risk management.Ardoino stated, "With the first attestation of 2024, Tether has demonstrated its unwavering commitment to transparency, stability, liquidity, and responsible risk management.” The Tether CEO added, “As shown in this latest report, Tether continues to shatter records with a new profit benchmark of $4.52 billion, reflecting the company’s sheer financial strength and stability. In reporting not just the composition of our reserves, but now the Group’s net equity of $11.37 billion, Tether is again raising the bar in the cryptocurrency industry in the realms of transparency and trust.”
HAUN VENTURES IS RIDING THE BITCOIN HIGH
TechCrunch by Marina Temkin, CFA : The firm invested $5M in Agora, a front-end solution for DAO governance, this week.
Blockchain startups were?red-hot when Katie Haun left Andreessen Horowitz in 2021 to launch her own crypto-focused venture firm. But shortly after Haun announced that Haun Ventures ’ two funds totaled $1.5 billion, cryptocurrency prices cratered and FTX collapsed.
Despite having a massive arsenal of dry powder, Haun Ventures didn’t rush to scoop up stakes in crypto and web3 on the cheap, and?many observers wondered?when the firm would pick up its deployment pace.
While Haun Ventures says it wasn’t exactly sitting on its hands (and capital) through crypto’s downturn, the firm was perhaps more cautious than it initially intended.But now that bitcoin prices have rebounded to their previous highs, Haun Ventures’ investment activity is increasing dramatically. Including some of its token positions, the firm has made 48 investments across its early-stage $500 million and $1 billion later-stage acceleration funds, Haun Ventures told TechCrunch.The firm’s latest investment is Agora, an app that streamlines voting and other decision-making for decentralized autonomous organizations. The firm led a $5 million seed round into Agora on Tuesday, with participation from Seed Club Ventures , Coinbase Ventures, Balaji Srinivasan and others.Sam Rosenblum, a partner at Haun Ventures, said that a significant impediment to DAO participation had been the lack of a simple user interface that allows members to approve (or vote on) the implementation of software upgrades to the protocols they are governing.The process was highly fragmented. Certain decisions were made in a separate Discord channel; “you then [the community would] go somewhere else to take a vote on allocating dollars in the treasury towards a certain project,” Rosenblum said. Agora solves this issue for DAO members by providing an easy-to-use community and protocol governance solution. “Historically, if you wanted to participate in resource allocation of a protocol treasury, you had to do a bunch of on-chain actions yourself, which probably means you have hardware and software setup that most people don’t have,” Rosenblum said.Agora is supposed to make DAO participation straightforward for non-technical users. Rosenblum compared it to Coinbase, which simplified coin trading for most people.
learn more:
COINBASES'S FIRST-QUARTER PROFIT, REVENUE TOP FORECASTS
?? Consumer transaction revenue almost doubled from last quarter.?? Urges ‘caution in extrapolating’ results so far this quarter
?? Coinbase Global Inc.?posted higher-than-forecast first-quarter revenue and profit as a resurgence in cryptocurrency prices reawakened demand from individual investors.Revenue more than doubled to $1.58 billion, topping the $1.32 billion average estimate of analysts surveyed by Bloomberg. Net income was $1.17 billion, or $4.40 a share, compared with a loss of $79 million, or 34 cents, a year earlier, the largest US crypto exchange said in?a shareholder letter?Thursday. Net income benefitted from $737 million in pre-tax crypto asset mark-to-market gains.“It’s a complex quarter, because it’s an accounting change, people need to digest what the impact is,” Coinbase Chief Financial Officer Alesia Haas , said in an interview.
Coinbase’s trading volume and mobile-app downloads surged during the rival of demand that was driven by the January introduction of US spot Bitcoin exchange-traded funds. Bitcoin rose a record of almost $74,000 in March. The second consecutive quarterly profit followed seven straight losses, a period that has been referred to as crypto winter.For the current quarter, Coinbase said it generated more than $300 million in transaction revenue in April, but said it continues “to urge caution in extrapolating these results.” It also projected about $525 million to $600 million in subscription and services revenue in the second quarter.“Guidance is good, but a lot of it depends on crypto prices, which came down in April,” said Paul Gulberg, CFA , a senior industry analyst at Bloomberg Intelligence. The accounting change “plays to the same tune of crypto price-dependence.”
Coinbase also referenced a Manhattan federal court’s decision in March to dismiss the SEC’s claim that the company had acted as an unregistered broker through its Wallet offering in its shareholder letter, but also mentioned that the court denied the company’s request to dismiss the case entirely. The SEC alleged in a lawsuit in June that Coinbase sells unregistered securities and illegally operates as an exchange, a broker and a clearing agency in violation of federal securities laws.
“Clarity is the ultimate goal and the court’s decision continues us on that path,” the letter said. “We remain confident in the strength of our legal arguments and are fully prepared for an intensive discovery phase throughout the remainder of the year.”Consumer transaction revenue nearly doubled from the fourth quarter, to more than $1 billion, driven mostly by retail users. Institutional customers accounted for the majority of trading volume.