What crypto bank trifecta’s failure means amid bear market

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1/ What the failures of Signature, SVB and Silvergate mean for the crypto sector

America apparently hasn’t seen the last of significant recent collapses in its financial system, with the downfall of Silicon Valley Bank (SVB) followed by that of banks Silvergate and Signature.

The latter were the two main banks for crypto companies, while SVB had a lot of crypto startups and VCs as clients.

Over the weekend, the failure of this trifecta sent ripples down the stablecoin market. By Sunday night, however, the feds backstopped deposits at Signature and SVB, and cryptocurrencies then rallied and the stablecoins regained their pegs.

Yet what’s in store for the short and long term in light of these facts?

• The shutdown could present problems for Bitcoin, the world’s largest cryptocurrency with a $422B market value.

• The Silvergate Exchange Network (SEN) and Signature’s Signet were real-time payment platforms that crypto customers considered core offerings. For instance, Signet and SEN were key for firms to get fiat in on the weekend.

• On the upside: Possibly there’s a long tail of challenger banks that may take up the slack.

2/ The Pokémon Company is hiring someone with ‘deep knowledge’ of NFTs and the metaverse

Who knew a job listing could be telling of a major direction a company is heading toward?

The Pokémon Company International has posted a new job listing that wants to enlist someone with blockchain, NFT and metaverse expertise. It’s a corporate development principal role, deemed “instrumental” in the firm’s President & Corporate Development Office.

Tasked to advise the president Tsunekazu Ishihara and the C-suite on the company’s long-term strategy, among many things, the role involves “monitoring and assessing technology and market players and trends in gaming, media and entertainment.”

The person should also be “deeply connected to a network of investors and entrepreneurs in the technology sectors above (web3 and metaverse).”

This move doesn’t directly confirm Pokémon’s reported plans to release a series of NFTs or a blockchain game, yet it’s indicative of the company’s direction in an increasingly web3-savvy space.

3/ Meta is killing NFT support on Facebook and Instagram

Meta is winding down its support for NFTs on its social media platforms Facebook and Instagram, the move marked as a shift of its focus to other areas of the business.

As part of this strategy, Meta is exploring new monetization opportunities for its popular video-sharing feature Reels and messaging payments across the Meta platform - initiatives designed to support creators, people, and businesses, and create new revenue streams for the tech giant with besieged metaverse plans.

Additionally, Meta has made the decision to shutter its crypto wallet Novi and cut projects within its metaverse division Reality Labs. How this streamlining of operations and focus on other business priorities bodes for Meta will play out in the coming weeks and months.

4/ Coinbase announces three major web3 infrastructure tools in two weeks

Coinbase, one of the largest cryptocurrency exchanges in the world, has announced two new initiatives aimed at making it easier for people to access and use crypto assets:

• Its developer-friendly decentralized app layer-2 Base, coming in two weeks before the two new products below

• Wallet-as-a-Service offering, allowing businesses to integrate crypto wallets directly into their platforms through advanced multi-party computation (MPC) technology for enhanced security and asset protection

• A web3 discovery surface to help people browse and find the best dapps on the market

Coinbase’s mission is no less than ambitious: onboard the next 100 million users into web3 and the next 1 billion users into the crypto-economy, ultimately driving mainstream adoption via increased accessibility and user-friendliness.

🏃‍♂️ Quick Hits

🎮 Gaming

• Square Enix goes hard with NFTs amid RPG Forspoken’s failure, promising "explicit incentives" for players in future blockchain games. (Link)

• Of consumers playing games multiple times a week, millennials (38%) enjoy the metaverse the most. (Link)

• Acutis Game honors Blessed Carlo Acutis, the patron of computer programmers and youth. (Link)

• Gamers are turning to NFTs to sell their in-game items and rake in big profits. (Link)

• New Iowa business brings virtual gaming to the local Quad Cities community. (Link)

• In Singapore, BinaryX discloses the upcoming release of its space-building simulation game Project Matthew. (Link)

🕶 Fashion

• Aéropostale kicks off its big metaverse move with NFT collection AeroPax, treating 10 holders to a Tesla. (Link)

• We are bringing NYFW into the metaverse and breaking the fourth wall, declares Vivienne Tam. (Link)

• Enter Nikeland, Nike’s “micro metaverse” in Roblox. (Link)

• Metaverse clothing label DRx drops its streetwear-inspired AR collection. (Link)

• SG fashion brand Charles & Keith taps virtual K-pop artist Apoki to appear in its CharlesKeithHaus metaverse. (Link)

• Fashion and lifestyle metaverse PARIZ wants you to enter MetaCommerce. (Link)

🏀 Sports

• These AR-enabled smart ski goggles are out to stir up snow sports. (Link)

• Match point: The Australian Open goes full web3 and here’s what it has gained. (Link)

• Fan tokens: A bet on your favorite soccer team? (Link)

• NFT marketplace, digital wallet, and more - Play Today’s world-first golf metaverse probably has got it all. (Link)

• Smart sports clothing tech iMetaWear launches a haptics shirt for VR and the metaverse. (Link)

• Will AI change cycling? Read it straight from ChatGPT. (Link)

🎥 Media & Entertainment

• Welcome electronic music to web3 via digital collectible marketplace Beatport. (Link)

• As the entertainment industry explores new frontiers, the

  metaverse emerges as a promising arena. (Link)

• KamaSutra's Kamaverse shakes up sexual wellness in the metaverse. (Link)

• Is the metaverse ready for a comeback in 2023? (Link)

• Virtual K-pop girl band MAVE are almost human-like avatars - and fans can’t really tell the difference. (Link)

• The metaverse is the hottest buzzword in tech, but will it actually become commercial? (Link)

🖼 Art

• NFT sensation Beeple opens the 50,000-sq ft digital art space Beeple Studios in South Carolina. (Link)

• Blame lackluster user interest: Instagram is ending its NFT-related project and shifting its focus to its creator and business tools. (Link)

• Starbucks’ Odyssey NFT program sells out in minutes and generates $250,000 in the secondary volume. (Link)

• Hip-hop artist Latashá's latest music video is up for auction at Sotheby's to support women artists and reproductive health. (Link)

• Web3 innovations like GameFi, DeSci, DeFi, and ReFi are solving real world problems. (Link)

🤖 AI

• Uh-oh: Microsoft axes the team ensuring responsible AI principles reflected in its products. (Link)

• Roblox Studios head: AI will enable new Roblox users to create much faster. (Link)

• How can AI enhance global food security? (Link)

• AI’s victories in the game of Go inspire human players to play better. (Link)

• Education curriculum should amplify fundamental human qualities, which AI can’t reproduce. (Link)

• Cambridge is taking a stand for ethical AI research, launching its AI Research Ethics Policy. (Link)

• The 14th annual Nvidia GTC online event will host 650+ sessions, including 70 on generative AI alone. (Link)

💸 Funding & Partnerships

• Canadian investment firm BitValue Capital establishes a $100M web3 growth fund. (Link)

• Web3 game publisher Jungle raises $6M to launch its web3 mobile shooter. (Link)

• LasMeta & GameStarter team up for a web3 ecosystem featuring an IDO launchpad, game dev studio, accelerator, incubator & NFT marketplace. (Link)

• Swarmio Media, maker of digital gaming hub Ember, receives an interest-free $1M loan from a strategic shareholder. (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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