Latest in Crypto, NFTs, and Web3

Hello!

Somi, here and I want to welcome you to the second issue of This Week in Web3, Crypto & NFT. 

It sure has been an active week in the space, so sit tight and let’s dive right in!

Elon and Twitter Reach an Agreement!

The CEO of Tesla, Boring Company creator, and real-life Ironman finally got to an agreement with Twitter Inc. and is set to acquire the company and take it private. 

Of all social channels, Twitter has a very special role in our societal discourse, as it’s where many key conversations and discussions take place, especially those surrounding crypto, Web3 and NFTs. 

Elon Musk, tweeted on April 25, “Free speech is the bedrock of a functioning democracy, and Twitter is the digital town square where matters vital to the future of humanity are debated. I also want to make Twitter better than ever by enhancing the product with new features, making the algorithms open source to increase trust, defeating the spambots, and authenticating all humans. Twitter has tremendous potential - I look forward to working with the company and the community of users to unlock it.”

Jack Dorsey, the creator of Twitter, tweeted on April 26, “I love Twitter. Twitter is the closest thing we have to global consciousness. The idea and service are all that matter to me and I will do whatever it takes to protect both. Twitter as a company has always been my sole issue and my biggest regret. It has been owned by Wall Street and the ad model. Taking it back from Wall Street is the correct first step. In principle, I don’t believe anyone should own or run Twitter. It wants to be a public good at a protocol level, not a company. Solving the problem of it being a company, however, Elon is the singular solution I trust. I trust his mission to extend the light of consciousness.”

This particular news has been met with all kinds of reactions, both positive and negative, depending on each’s particular position. Many are still waiting to see what happens. I for one, think we need to keep paying attention as these events unfold.

In relation to Musk’s and Twitter’s agreement, on Monday, after the news hit, Dogecoin (DOGE) rose by as much as 26%.

Going Through Changes

With everything that has happened in these past two years, and in recent months, our current geopolitical and economical climate seems to be living in moments of “in-between”. 

Supply Chain Issues:

We are still waiting for COVID related supply chain interruptions to get solved, which has created global issues, that have only been exacerbated by the Russia-Ukraine war. This war includes two of the biggest producers of essential food items, like wheat, heavy metals used in electronics and construction, natural gas and energy. If the global supply chain system was already fragile, just think of the pressure this will add.

Economy:

When it comes to the global economic climate, we are also living in a time of turmoil and change. Since WWII, we have been living in an economic world that’s been dominated by the United States dollar. Something that seems to be on the brink of collapse.

Crypto & NFTs:

With countries figuring out ways to regulate the space, and technologies evolving at a breakneck speed, the crypto and NFT industries also find themselves in a spot of change and unresolved business… 

• Bitcoin’s rise has seemed to stall a little, especially after Elon Musk backtracked and decided not to accept Bitcoin as payment for Tesla after all. We are definitely not living the Crypto Winter of 2018, but still, the market seems to be in a weird place for now.
• The industry has seen quite a degree of normalisation on a global scale. Crypto companies are all over the place, in mainstream culture and advertising, making Super Bowl ads, buying Stadiums and naming them… They have decided to take on the world of sports, entertainment, and popular culture.
• NFTs have generated a whole new point of entry to the industry, even if we are still figuring out all the uses they will have, there are certainly a lot of people experimenting in the space. For example, FTX is thinking about running an NFT partnership with Coachella, where festival participants can claim individual NFTs and then have a variety of benefits from using them. Something that will for sure interest the event industry worldwide!

Cannabis and Crypto

The cannabis industry or MRBs (Marijuana-Related Businesses) might have just found their best friend in cryptocurrencies. As this industry grows, it still continues to be heavily underfunded, at least in traditional terms. 

The traditional banking system treats MRBs as high-risk businesses (just like firearms and gambling businesses), and until they become legal for good all around, a lot of banks do not want to have these businesses as clients. 

This results in MRBs having to rely mostly on cash, which in turn leads to more crime and more work for authorities… but, cryptocurrencies and other digital assets can help solve this problem. 

According to President of FTX Official, Brett Harrison’s Twitter thread: “Crypto exchanges can provide depositary services akin to those of banks, but with lower-fee access to payment rails and a wider array of payment options on the consumer side.”

Bored Ape Yacht Club Hack!

With the boom the crypto and NFT industries are having, it is no wonder, and also a shame, that wrongdoers prick up their ears and try to find new ways to make “easy money” by taking advantage of people… This past Monday, it was the Bored Ape Yacht Club (BAYC)’s turn to be put on the spot. After their Instagram account and Discord server were hacked, the hackers sent followers an unofficial “mint” link. The fake link claimed that users could “mint” land in the upcoming OthersideMeta which has not launched yet.

The BAYC NFT project quickly tweeted that this “mint” link was fake, but by that time it was already too late for some users. By Monday afternoon, it was estimated that around 54 BAYC NFTs had been stolen, according to recent OpenSea transfers, which is around $13.7 million!

Legislations, Sanctions, and Regulations

• According to a statement from President Faustin Archange Touadera’s office, it apparently seems that rumours regarding the Central African Republic adopting Bitcoin as a legal tender, have been confirmed. CAR is the second world nation to do this after El Salvador became the first less than a year ago. This news was met with a lot of scepticism from the public, as CAR is one of the poorest nations in the world, with a population of 4.83 million, of which only about 11% have access to the internet.
• The Brazilian Senate pushed a bill to regulate crypto transactions on Tuesday, April 26, the bill labels crypto companies as "virtual service providers", which makes them subject to the same responsibilities as other financial institutions when it comes to crimes against the Brazilian financial system.
• The United States sanctions Russian Crypto Mining firm, BitRiver. A company which is actually based in Switzerland but was started in Russia. BitRiver calls out the sanction to be an unfair move that will benefit US Miners, same as when China banned mining when all the hash power went to the United States and ended up benefiting them.