Binance’s NFT lending program

Today we are covering…

💰 Binance’s NFT lending program

🏎️ NFT tickets at the Monaco Grand Prix

🗣️ Gaming execs’ Q1 sentiments

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Binance’s blue-chip NFT lending program [Link]

Binance launches NFT Loans to let users borrow ethereum using their collectibles as collateral. Like similar services preceding it, it combines NFTs and DeFi to enhance participants’ liquidity without the need to sell their digital assets.

Binance is following other platforms like Blur with products geared for a more sophisticated class of NFT traders.

A closer look

• For now, only blue-chip NFTs like BAYC, Doodles, and Azuki are eligible to be posted as collateral.

• The amount that can be borrowed depends on the Loan-To-Value (LTV) ratio and the NFT’s floor price.

• Given the NFT market’s volatility, liquidations are an immediate concern but Binance will apparently have some liquidation protections.

Why it could matter

Binance is recognizing that trading volume and the fees coming from it can be bootstrapped by providing sophisticated financial tools to a sophisticated class of investors. Collateralization is a key primitive for these traders as it allows them to access liquidity without selling off their assets.

Gaming execs’ take on AI’s rise and changing consumer habits in Q1 [Link]

In the 1st quarter of 2023, the gaming industry grappled with limited spending of brands and consumers in preparation for a mounting recession. This, on top of a wave of layoffs, a pivot toward new business models, and a play around ascending trends such as AI.

Here’s some commentary from some industry chiefs on the quarter that was:

• Activision Blizzard CEO Bobby Kotick remains bullish on its $69B deal with Microsoft, saying it will benefit “competition, consumers, and job creation in markets around the world, especially in the UK.” On the same day its earnings press release came out, though, the UK’s Competition and Markets Authority blocked the proposed merger.

• Electronic Arts CEO Andrew P. Wilson, believing “games are the social networks of the future,” outlines their 3-pronged plan for the future to investors on May 9: to build games tailored to massive online communities, create creator tools to “amplify” those communities, and produce high-quality games and stories to keep them hooked.

• Tencent CEO Ma Huateng, reporting “solid revenue growth” for Q1, says they are investing in their AI capabilities and cloud infrastructure and “expect AI to be a growth multiplier” enabling better customer service.

Platinium Group, ticket provider for Formula 1, integrates blockchain tech (Link)

In a pioneering initiative, the company has partnered with Elemint, a blockchain infrastructure provider, and web3 firm Bary to introduce NFT race tickets at the prestigious Monaco Grand Prix last May 26-28.

The NFT tickets not only granted access to the race but also promised lasting post-event privileges, from hospitality perks to discounts applicable to future races. Looking into the future, these ticketing solutions are also more secure, adaptable, and tailored to the specific demands of a sporting or entertainment event.

Why this matters: Formula 1 has previously ventured into crypto partnerships via a $100M deal with Crypto.com at the British Grand Prix, yet it’s its foray into NFT ticketing as a renowned annual global event since 1929 - a blend of tradition and innovation via web3.

Burnt Toast-mentored Doodle art program [Link]

Vayner3, a web3 consultancy firm under the guidance of web3 pioneer and advocate Gary Vaynerchuk’s VaynerX, facilitates the Red Bull Doodle Art Collection mentored by Doodle co-founder Burnt Toast, for Red Bull's highly anticipated Doodle Art Program 2023.

Celebrating student creators, the program will showcase the artwork of 61 world finalists on-chain, including icons designed by Burnt Toast himself.

Completed artwork by students will be displayed in NFT format in a public gallery, where a judging panel including Burnt Toast and British artist Mr. Doodle (Sam Cox) will select the global winner based on creativity, artistic skill, and the ability to convey a sense of loving life.

Burnt Toast - real name Scott Martin - is a lifelong doodler who transitioned from design studio work to becoming a world renowned digital artist with such extensive influence in the NFT space fostering an inclusive, pro-artist culture.

Quick Hits

🎮 Gaming

• Tech company SWALLOW bids to change the tattoo industry through web3 gaming, the metaverse, and NFTs. (Link)

• The Transformers’ Optimus Prime is coming to Fortnite next season. (Link)

• Gaming’s ascendance falters in Q1 2023 as brands and consumers limit their spending, anticipating mounting recession. (Link)

• Irish brands, reluctant to forge potential tie-ins with the sector, remain behind the curve in the lucrative, young-driven gaming space. (Link)

• Arm’s new mobile computing platform aims to deliver improved AI, 3D, and gaming to 2024 phones. (Link)

🕶 Fashion

• Explore Gucci Vault’s Vault Summer, the luxury house’s fresh digital concept for summer essentials. (Link)

• Inside K-beauty brand Laneige’s immersive virtual store: animated room setups, 360-degree visuals, behind-the-scenes content with Sydney Sweeney, and gamified experiences. (Link)

• Fashion brands can leverage web3 to create new biz models, implement anti-counterfeit measures, and enhance customer interactions via personalization. (Link)

• Gen Z consumers are buying luxury items some 3-5 years earlier than millennials - and digital engagement proves key. (Link)

• AI singers like AI Jay Chou, AI Eason Chan, and AI Stefanie Sun are booming across China - but not without legal concerns. (Link)

🏀 Sports

• Platinium Group, ticket provider for Formula 1, integrates blockchain tech. (Link)

• Floki appears on a sports billboard behind the Central Wutai World Table Tennis Championship and registers a 230% volume spike. (Link)

• Web3 Live in London discusses IoT, AI, blockchain, and spatial web alongside their impact on sports, music, art, and gaming. (Link)

• P2P blockchain financial platform Fintoch launches FinSoul for AIGameFi, programmable NFT and metaverse, sports games, and decentralized finance. (Link)

• Dubai-based streaming platform MyCo, building out a roster including live sports, lets users earn crypto by viewing content. (Link)

• Smart contracts can optimize sports event ticketing, while sponsorship deals can be signed on the blockchain to set immutability. (Link)

🎥 Media & Entertainment

• Musicians, look to gaming to promote your work. (Link)

• Interview with Lickd’s CEO: Why should musicians look to video games to promote their work? (Link)

• 31K+ K-pop fans flock to Busan for the 29th Dream Concert. (Link)

• What’s in store with HK music metaverse MUXIC forming a strategic alliance with the IOST ecosystem for web3? (Link)

• Nreal Air review: It’s cool but could it be the future? (Link)

🖼 Art

• 5 must-see art destinations in the Voxels Metaverse. (Link)

• Gagosian prepares to launch widely acclaimed multimedia artist Takashi Murakami. (Link)

• NFTs driving change: Not Your Bro celebrates LGBTQIA+ community with new IMVU drop. (Link)

• From Mario to Reddit: Ubisoft’s Rabbids NFTs take the spotlight. (Link)

• The value of virtual properties have depreciated over the last few years. (Link)

• NFT ART DAY ZRH returns to immerse visitors in the worlds of web3 and crypto art. (Link)

🤖 AI

• Google introduces SGE AI search in beta version. (Link)

• Microsoft executive calls for faster AI regulation. (Link)

• IDC breaks down generative AI adoption and practical uses in the Asia Pacific. (Link)

• China accelerates AI application to the real economy. (Link)

• POSCO joins Samsung Electronics and LG Electronics to develop alternatives to ChatGPT for employees. (Link)

• Lazada unveils new eCommerce AI chatbot LazzieChat. (Link)

💸 Funding & Partnerships

• Cornos Lab launches a $100M investment program supporting web3. (Link)

• Deelance secures a $1.12M investment as public presale surpasses $1.1M. (Link)

• Avalanche (AVAX) and Polkadot (DOT) showcase minor growth while TMS Network (TMSN) secures $6M funding. (Link)

• In defense, AUKUS partners successfully demonstrated a trial of AI and Autonomy under the Advanced Capabilities pillar (Pillar II). (Link)

• Samsung sponsors 500 startups to humanize technology via connected devices, wearables, and digital tech. (Link)

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All content on this newsletter is for informational purposes only and does not aim to serve as or replace expert investment advice.

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Binance’s NFT lending program