Crypto ‘healthier’ than market prices show: a16z report

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1/ Major takeaways from a16z’s 2nd ‘State of Crypto’ report

Venture capital firm Andreessen Horowitz (a16z), in trying to track the “durable progress of web3 technology,” finds in its State of Crypto 2023 report a “healthier industry than market prices may indicate, and a steady cycle of development, product launches, and ongoing innovation.”

Some key findings and takeaways:

• Web3 is progressing rapidly, with new builds, research, and products popping up, alongside Ethereum's switch to eco-friendly "proof-of-stake." While web3 adoption is still in its early stages, DeFi and NFT metrics have become more stable after falling from record highs in 2021.

• Gaming is particularly robust at 700 web3 games launched in 2022 and games now generate 23 times more on-chain transactions than DeFi.

• Marked improvements in blockchain infrastructure, with key factors such as new layer 1 chains enhancing scalability and programmability and layer 2 scaling systems including optimistic and zero-knowledge rollups.

• Crypto's regulations are in flux, while bipartisanship, court cases, and government actions are shaping the scene.

• Recent flops spotlight the need for decentralized infrastructure, presenting a chance to counter power concentration and back web3.

Prices up, innovation high, and crypto interest abuzz - it’s an ongoing cycle of ideas and action in the space, making it a time of building, bringing in more developers, and product cycles leading to growth over the coming years.

2/ Meta has reportedly stopped pitching advertisers on the metaverse

Word on the street is Meta has shifted away from pitching the metaverse to advertisers, reportedly prioritizing its short-form video product Reels and AI tools.

Per The Information (citing anonymous sources), the social media behemoth - once carrying the banner of the metaverse’s astounding promise and potential - is offering discounts of as much as 25% in spending on Reels, thought to be "unusually large" by an ad exec.

And it appears that Meta isn’t alone in moving away from its metaverse ambitions, with Decentraland's free fall raising doubts about the metaverse's future as AI takes centerstage.

AI rises to the top with its real-world uses and applications, while limited VR adoption, high costs, and lack of diverse content contribute to the current decline of virtual worlds.

3/ Immutable Passport opens borders for web3 games

The spotlight is on a trio of Australian co-founders betting on a single sign-on to offer gamers access to multiple metaverses, potentially attracting the next billion users to web3.

What it is: The Immutable Passport seeks to tackle web3's mainstream adoption roadblocks via easy onboarding and interoperability: a single-sign-on (SSO) system like Google to use one account to sign in everywhere.

What’s up ahead: Launching in April, the “self-custodial wallet” is launching this month in Sydney. It’s founded by James Ferguson, Robbie Ferguson, and Alex Connolly of Immutable Labs, where while its funding is undisclosed, Immutable Labs raised $260M in Series B and C rounds.

4/ Photographer admits Prize-winning image was AI-generated

It’s only a matter of time before the world of photography gets taken over by the mischief of AI.

German artist Boris Eldagsen wins a prestigious award at the Sony World Photography Awards, but decides to turn down the prize. Why?

He used AI to pull a fast one and generated the winning image featuring two women from different generations in black and white. Instead, he proposed to donate his prize to the renowned photo festival in Odesa, Ukraine.

No matter how things turn out - particularly on the side of the World Photography Organisation - we’ve got a powerful quote from Eldagsen: "AI is not photography. Therefore I will not accept the award.”

🏃‍♂️ Quick Hits

🎮 Gaming

• Interview: Wagyu Games founder Grant Haseley on what the future holds for web3 gaming and web3 communities. (Link)

• India’s fantasy sports space is poised for immense growth by 2027. (Link)

• Inside RobotEra, users can use NFT robot avatars to buy lands, build real-world infrastructures, and acquire in-game resources. (Link)

• P2E game Lost Archive + is a deck-building, strategic placement board game launching in May. (Link)

🕶 Fashion

• American Eagle harnesses AR Snapchat Lens to promote its 2nd hand, sustainable clothing shop. (Link)

• What drew gaming payment platform Xsolla to invest in phygital fashion startup Pillz? (Link)

• Hugo Boss is getting onboard NFTs, featuring NFC-tagged caps to create digital twins and dress avatars. (Link)

• AI-driven personalized clothing: a sustainable alternative to fast fashion? (Link)

• Soorty, a Pakistani vertically integrated denim maker, turns to AI for its latest collection. (Link)

• Meet the Handbag Designer Society, a web3 community for purse lovers. (Link)

🏀 Sports

• Jeffrey Jordan, son of NBA legend Michael Jordan, targets Gen Z sports fans with the web3 sports tech Heir app. (Link)

• NFT-based strategy game Cricket Stars provides players with 6 batting and 6 bowling card options to choose from. (Link)

• How’s the internet-ification of sports - where ultra-long YouTube highlight videos are all the rage right now - going? (Link)

• Baller Mixed Reality gets picked as Top Sports Brand Initiative at the 1st American Metaverse Awards. (Link)

• “Technology will bridge the gap between sports and sports fans”: Dream11 Sports CTO Amit Sharma. (Link)

🎥 Media & Entertainment

• Smurf happens: Beloved blue characters enter web3. (Link)

• Universal Music pressures streaming platforms like Spotify and Apple Music to regulate AI in their music libraries. (Link)

• Legends of Rock brings rock music memorabilia to music fans worldwide via web3. (Link)

• Changi Airport is entering Roblox with ChangiVerse, its inaugural metaverse experience. (Link)

• Embracing web3 and NFTs, Jack Daniel’s is making Sydney-siders hunt for musical treasure.(Link)

🖼 Art

• SEED Brklyn holds its inaugural NFT BK Week with 4 days of honoring Black/Brown creatives and web3 leaders. (Link)

• Outlaws' NFTs spark controversy with uncanny resemblance to Jeremy Booth's art. (Link)

• Web3 culture resilience showcased by NFT NYC. (Link)

• CyberBrokers rolls out Genesis Mechs: A nifty way to customize your metaverse-ready NFTs. (Link)

• Dallas Land is a hot commodity in the virtual world. (Link)

🤖 AI

• AI can ace medical exams and assess patient symptoms, but it doesn’t care whether you live or die. (Link)

• AI, recession, and the return to pre-COVID fuel global fraud rates to all-time highs. (Link)

• Fuzzy logic, robotics and AI’s future - what's the deal? (Link)

• AI aids schools and museums in detecting gun threats. (Link)

• Ethical AI is a must, period. (Link)

💸 Funding & Partnerships

• Core DAO launches a $200M ecosystem fund to accelerate dApp and protocol development. (Link)

• Troubled crypto lending firm Babel Finance gets more time to repay debts to creditors as an SG court extends its creditor protection. (Link)

• Opside, a 3-layer infrastructural platform offering ZK-RaaS, closes a $4M seed round. (Link)

• NVIDIA and Immerse launch the 1st VR-Desktop streaming platform for language learning. (Link)

• GetTransfer.com and Binance Card offer exclusive discounts on online transport services. (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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