This week, Disney (DIS) reportedly laid off a small team dedicated to building its metaverse offerings in a move that highlights corporate uncertainty around Web3 and waning interest in the metaverse by big brands.

Also, the U.K. abandoned its plans for a government-backed non-fungible token, citing questionable demand.

Meanwhile, we’re seeing some positive signs for adoption of NFTs as a ticketing mechanism, with Ticketmaster working with band Avenged Sevenfold for token-gated access to tickets and a major low-cost airline going all-in on issuing tickets as NFTs.

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This Week's Alpha

Disney ditches its metaverse plans: The entertainment company has laid off its small unit that was developing strategies for its expansion into the metaverse, The Wall Street Journal reported, as part of a broader company-wide restructuring. Sources told the newspaper that about 50 people tasked with using the company’s intellectual property to tell interactive digital stories lost their jobs in the shuffle. Disney began developing its metaverse strategy in 2022 and chose Polygon as its blockchain to do so.

Metaverse “cooldown:” It’s unclear why Disney decided to scrap the fledgling business unit, though other major companies that bet big on metaverse development have also scaled back their efforts in recent months. Cathy Hackl, chief metaverse officer at innovation and design consultancy Journey, told CoinDesk’s “First Mover” on Wednesday that the formerly red-hot metaverse market is facing a “cooldown moment,” though she said it’s “not necessarily a bad thing,” because many Web3 natives are continuing to build despite the downcycle.

Royal NFT mint: The U.K. Treasury has canceled its plans for a government-backed NFT that was meant to signal the U.K.’s openness toward Web3. The idea was Initially proposed by U.K. Prime Minister Rishi Sunak when he was chancellor in April 2022. He had assigned the task to the Royal Mint.

Dying demand: Finance Minister Jeremy Hunt said in a Treasury committee meeting that the government questioned the demand for such an asset. "I think we always want to be at the cutting edge in the U.K., in terms of new technology, but the world has changed significantly since then, and we're not convinced that the demand is going to be there in the same way,” he said.

Token-gated getaways: Argentinian low-cost airline Flybondi will issue all of its e-tickets as NFTs. The new integration, an expansion of its existing relationship with NFT ticketing company TravelX, is built on the Algorand blockchain and allows passengers to change their name, transfer or sell their "NFTickets" on a secondary marketplace.

Are NFTs the future of flights? Not necessarily, although ticket-related rules and conditions can be integrated into the NFT's smart contract by an airline, allowing them to create a smoother and more flexible travel experience for passengers. Airlines can also generate additional revenue on NFT trading fees and empower their customers to book travel with less hassle. TravelX says that more than 60 airlines worldwide are already exploring NFT tickets.

Projects on the Rise

(OpenSea)

This Artwork is Subject to Change

Who: Created by artist Mason Rothschild

What: Dusting himself off after Hermés won the lawsuit over his provocative MetaBirkins project, Mason Rothschild has released a new NFT project titled “This Artwork is Subject to Change” through his creative agency Gasoline. Launched as an open edition on Manifold last month, the artwork attached to the 10,987 dynamic NFTs is "subject to change" at any point and functions as a commentary on the future of our cultural and financial systems.

How: Taking inspiration from Jack Butcher's Checks VV and Opepen NFT projects, the collection deploys several interesting mechanics – like allowing holders to “freeze” their NFT metadata on a particular artwork or "burn" their NFTs to transform them into smaller and rarer ones – in order to keep its community members engaged. I interviewed Rothschild to find out more about the project and his plans to make the NFT market more fun and accessible.

In Other News

Ticketmaster token pilot: The ticketing behemoth teamed up with metal band Avenged Sevenfold to offer token-gated priority access to tickets for members of the Deathbats Club NFT community.

The book of ETH Genesis: NFT marketplace Magic Eden launched a beta version of its upcoming native Ethereum marketplace called ETH Genesis. The move expands on the platform’s initial integration of the Ethereum ecosystem last year and adds to Magic Eden’s cross-chain expansion.

NFT Now tackles Web2 media: NFT news site NFT Now released its Now Pass, an NFT collection aimed at fixing the issues that plague Web2 media. The pass offers special perks to its community such as exclusive content and access to events. It sold out in under 48 hours, raising over $1 million in sales.

Non-Fungible Toolkit

What Is Decentralized Identity?

If you’re reading this, you have a digital identity in the form of an email address. Other familiar digital identities are Twitter handles and Facebook pages. But unlike those traditional identity tools, which use centralized methods to store and control user data, decentralized identities integrate blockchain concepts to remove the reliance on third parties like Google and Facebook.

Decentralized identities are often hosted on decentralized file-sharing platforms, such as the InterPlanetary File System. These open-source protocols store data on decentralized networks that are difficult to shut down and give users ownership over their online data.

Read more about Web3’s alternative to a digital identity

#bitcoindifficulty #Binance #cryp101 #antiscam

The Ethereum network is set to undergo its next upgrade, the Shanghai Upgrade, on April 12, 2023. When the Shanghai upgrade is implemented, this will effectively unlock the ETH that has been staked since the “Merge.”

Earlier in 2022, when Ethereum underwent the “Merge,” a significant upgrade to its blockchain, it switched from a proof-of-work (PoW) blockchain to a proof-of-stake (PoS) blockchain.

A key benefit of the upgrade is that the new Ethereum network allows individuals to run a validator node, staking their own ether in order to help secure the network in the absence of the traditional mining infrastructure that had secured Ethereum since its original launch.

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Market participants are motivated to stake their ether because they are now able to generate rewards, paid in ETH, from the network for their staking contributions. It no longer requires significant upfront investment into mining hardware and software to reap the blockchain rewards from the Ethereum network.

The downside to staking Ethereum after the upgrade was that those staking (or those running validator nodes) were required to stake their ETH until the next upgrade. This lack of liquidity for ETH holders created an illiquid amount of ETH that was unable to be sold during the last few months.

Selling pressure?

Many critics of Ethereum have said that this has created false supply and demand levels and liquidity on the network. While Ethereum has rallied over the last few months, many investors are concerned that when the staked Ethereum becomes liquid, the selling pressure (due to an increase in liquid ETH) will drive down the price of Ethereum.

There are currently 16 million ETH staked, which will be available for withdrawal once the Shanghai upgrade is live. Not all of these 16 million ETH will be liquid at the same time, as developers have implemented a queue for withdrawals. ETH will be available for withdrawal every 12 seconds, and only 16 withdrawal requests can be met at each opening.

Those wishing to withdraw have two options. First, they may request to withdraw only the rewards they’ve earned from their validator nodes. Second, they may request to exit their validator nodes entirely, withdrawing the 32 ETH that is required to run a validator.

While analysts have attempted to determine the demand for ETH withdrawal, it’s nearly impossible to predict with accuracy. Human emotion, often driven by price and market sentiment, will come into play when the ETH is unlocked.

Some believe that the Shanghai upgrade will cause an increase in selling pressure as the 16 million “locked” ETH becomes liquid, while others believe that the new liquidity options will increase the demand to stake ETH.

The advisor takeaway

In general, the shift to proof-of-stake has caused the fundamentals of Ethereum significantly. The ability to stake ETH has created a new opportunity to earn rewards.

Advisors and those managing crypto portfolios can look at the Shanghai upgrade, in particular, in a few different ways.

The upgrade makes the Ethereum network more efficient and cost effective to use – gas fees are set to decrease significantly. The long-term outlook of Ethereum has increased, as the usability and costs have gone down significantly. Many believe that this increases the likelihood that Ethereum will continue to grow and strengthens the investment thesis of Ethereum.

Others who are looking to trade the price of Ethereum may be encouraged by the Shanghai upgrade, as it will surely increase volatility, at least temporarily. If you’re looking to trade the crypto markets, be prepared to navigate the market, as this is a significant change and will likely have many moving parts.

For Advisors, I believe that the upgrade is a significant positive change to Ethereum. During the bull market of 2020 and 2021, many competitors to Ethereum gained market share as a result of Ethereum becoming difficult and expensive to use. Other Layer 1 smart contract blockchains grew tremendously compared to Ethereum as users and investors flocked to coins they viewed as better opportunities.

It would be wise to remember that Ethereum is still the second largest blockchain network – and after the successful upgrade, many of the reasons individuals used to justify investments into other coins may be challenged. Ethereum is now an incredibly secure and efficient smart contract cryptocurrency and, in my opinion, the roadblocks that pushed investors away from Ethereum have been rectified and removed.

Edited by Henry Bond.

#dyor #antiscam #Web3

intro

Cryptocurrency trading has become increasingly popular in recent years. With its high volatility and potential for significant gains, many individuals have been drawn to this market. However, it's important to recognize that cryptocurrency trading also comes with significant risks, including the possibility of a crash.

A cryptocurrency crash can be devastating, leading to significant financial losses. Therefore, it's essential to take steps to avoid a crash when trading cryptocurrency. Here are some tips to help you do just that.

Do Your Research:

One of the most important steps you can take to avoid a crash when trading cryptocurrency is to do your research. Before investing in any cryptocurrency, you should take the time to understand the fundamentals of the technology behind it. This includes understanding the project's goals, the team behind it, and any potential risks or drawbacks.

Additionally, it's essential to stay up-to-date on news and trends in the cryptocurrency market. This will help you stay informed about any significant changes or developments that could impact the value of your investments.

Diversify Your Portfolio:

Another important strategy for avoiding a crash when trading cryptocurrency is to diversify your portfolio. Instead of investing all your money in one cryptocurrency, consider spreading your investments across several different cryptocurrencies. This will help reduce your risk of significant losses in the event of a crash in one particular cryptocurrency.

Use Stop-Loss :

Orders Stop-loss orders are a trading strategy that can help protect you from significant losses. A stop-loss order is an automatic order that is placed to sell a cryptocurrency at a certain price point. If the cryptocurrency drops below that price point, the stop-loss order will trigger, and your cryptocurrency will be sold automatically, limiting your losses.

Avoid Emotional:

Trading Emotional trading is a common mistake that can lead to significant losses in cryptocurrency trading. This occurs when investors make decisions based on their emotions, rather than rational analysis. For example, an investor may panic and sell their cryptocurrency holdings during a market downturn, leading to significant losses.

To avoid emotional trading, it's essential to develop a trading strategy and stick to it. This includes setting clear investment goals, establishing risk tolerance levels, and making rational decisions based on analysis rather than emotions.

Keep Your Investment Goals in Mind:

Finally, it's essential to keep your investment goals in mind when trading cryptocurrency. If you're investing for the long term, short-term fluctuations in the cryptocurrency market may not matter as much to you. However, if you're looking to make a quick profit, you may need to be more vigilant and willing to adjust your strategy as needed.

Coin X versE

Start Small :

When you're first starting out in cryptocurrency trading, it's best to start small. This means investing only a small portion of your portfolio in cryptocurrencies until you gain more experience and confidence in your trading abilities. This approach will help you minimize your risk of significant losses in the event of a crash.

Set Realistic Expectations:

It's essential to set realistic expectations when trading cryptocurrency. While it's true that some investors have made significant profits in this market, it's also true that many have suffered significant losses. Therefore, it's important to be realistic about the potential risks and rewards of investing in cryptocurrencies.

Avoid FOMO :

FOMO or fear of missing out, is a common emotion that can lead to poor investment decisions. When you see other investors making significant profits in the cryptocurrency market, you may feel like you're missing out on an opportunity. However, it's important to avoid making impulsive investment decisions based on FOMO.

Be Patient :

Cryptocurrency trading requires patience. It's important to avoid making hasty investment decisions based on short-term market fluctuations. Instead, take a long-term approach to investing in cryptocurrencies and focus on the fundamentals of the projects you're investing in.

Consider Professional Advice:

Finally if you're new to cryptocurrency trading, it may be beneficial to seek professional advice. This could include hiring a financial advisor or working with a cryptocurrency trading expert. These professionals can help you develop a sound investment strategy and avoid common pitfalls in the cryptocurrency market.

In conclusion, cryptocurrency trading can be exciting and potentially profitable, but it also comes with significant risks. To avoid a crash when trading cryptocurrency, it's essential to do your research, diversify your portfolio, use stop-loss orders, avoid emotional trading, and keep your investment goals in mind. By taking these steps, you can reduce your risk of significant losses and increase your chances of success in the cryptocurrency market.

In summary, avoiding a crash when trading cryptocurrency requires careful research, diversification, and rational decision-making. By following these tips and staying vigilant in your trading activities, you can minimize your risk of significant losses and increase your chances.

#trading #Binance #buildtogether #antiscam #BTC

The Securities and Exchange Commission will vote on new rules and changes to bolster requirements for cybersecurity, privacy and tech infrastructure that officials said could encompass cryptocurrencies.

The five-member commission will vote Wednesday morning on issues relating to cybersecurity, the privacy of consumer financial information and technology infrastructure, such as cloud services.

The SEC will vote on whether to propose changes to require brokers-dealers, investment companies, registered investment advisers and transfer agents to tell people when they have been affected by data breaches. A current rule requires “covered firms” to let customers know about how they use their financial information, but there is no requirement now to let them know about breaches, SEC Chair Gary Gensler said.

“Critically, firms would need to help customers understand how to protect themselves from harm that might result from the breach,” Gensler said.

The SEC also will vote on whether to propose a new rule requiring broker-dealers, clearinghouses and other entities to have written policies to address their cybersecurity risks. It would require market entities, excluding smaller broker-dealers to disclose to the public a description summarizing cybersecurity risks that could “materially affect the entity” and also “significant cybersecurity incidents in the current or previous calendar year,” Gensler said.

“I believe such disclosure would help investors make informed decisions when deciding to which firms they might entrust their finances, data, and personal information,” Gensler said.

Market entities and capital markets rely on “complex and ever-evolving information systems,” Gensler said, adding that they are systems owned or used by the entity.

Those two proposals wouldn’t include a special carve-in or carve-out for crypto, according to an SEC official. To the extent that information systems interact with crypto, that would be covered by the cybersecurity changes, the official said.

The last proposal would broaden Reg SCI to include the largest broker dealers, swap data repositories and certain exempt clearinghouses while bulking up policies.

Regulation SCI was adopted in 2014 to strengthen the tech infrastructure of U.S. securities markets. The rule currently applies to national securities exchanges, among others.

An SEC official said if a national securities exchange is trading crypto securities, then the rule would apply.

The meeting starts at 10 a.m. EDT on Wednesday.

© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

#Web3 #antiscam #cryp101

Bitcoin lost momentum on Monday, teeter-tottering above and below $28,000 as investors seemed ready to hunker down in advance of the U.S. central bank's next interest rate decision on Wednesday.

The largest cryptocurrency by market capitalization was recently trading at about $27,745, down a roughly a percentage point from 24 hours ago. Early Monday (UTC), bitcoin had climbed above $28,400 just hours after the U.S. Federal Reserve announced it had teamed up with five other major central banks to ensure a steady flow of the U.S. dollar, a dominant reserve currency, in the global financial system.

"Faith in the fiat banking system is waning rapidly and the only alternative, safe haven that is portable is bitcoin," Stefan Rust, CEO of data aggregator Truflation, wrote in an email to CoinDesk. "The rapid rise in the price of bitcoin is a sign of fear that, more problems lurk in the banking sector - particularly since the fall of Credit Suisse."

Rust added: "The bank runs we are seeing are also making it difficult to access gold, while fear of inflation and hyperinflation in some countries are all driving a flight to BTC."

In recent days, bitcoin's price has risen as the threat of a global banking meltdown diminished and investor hopes mounted for a more dovish Fed policy, possibly even suspending its year-long streak of interest rate hikes at its meeting starting Tuesday, although a 25 basis point increase seems most likely after last week's only mildly improved inflation report.

"That's probably most likely," Tom Shaughnessy, co-founder of crypto research platform Delphi Digital, told CoinDesk TV's "First Mover" program.

Sunday's announcement that the Fed would increase the frequency of the dollar swap lines with the European Central Bank, the Bank of Japan, the Bank of England, the Bank of Canada and the Swiss National Bank from weekly to daily, aims to calm exchange volatility and avoid strains in the supply of credit to households and businesses worldwide, as CoinDesk Managing Editor Markets Asia Omkar Godbole reported, adding that "the increased frequency of swap lines has cleared the way for an unabated rise in risk assets, including bitcoin. The leading cryptocurrency by market value is largely seen as a hedge against the banking system.

Ether, the second largest cryptocurrency in market capitalization, was recently changing hands at about $1,731, down 3% from Sunday, same time. Other cryptos among the top 25 by market value were largely in the red, with APT, the token of layer 1 network Aptos, and MATIC, the native crypto of layer 2 platform Polygon recently off more than 8% and 6%, respectively. SOL, the token of the Solana blockchain rose slightly.

Delphi Digital's Shaughnessy said that the driving force behind the current bitcoin surge and its potential sustainability were difficult to determine, although he noted that "this is the first time in history that we have a global banking crisis, and crypto validated to a degree and well known that people can now seek an alternative and go into crypto."

Laguna Labs' Rust wrote that the Federal Open Market Committee's (FOMC) announcement would likely determine bitcoin's path forward.

"The only thing holding bitcoin back this week will be the FOMC meeting, with investors nervously awaiting the Fed's next interest rate decision," he wrote, noting that if the Fed did scale back its current policy, "markets will be very nervous and it will be a testing time for bitcoin."

He added: "Will it keep going in the opposite direction to global markets, or fall back in line? Certainly, the bitcoin maxis believe the former."

#ETH #antiscam