Metaverse NFTs are on a roll

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Metaproof is a media company that covers the business of the metaverse. We keep you informed how the metaverse and web3 are changing YOUR industry.

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The Future, today. In just 3 minutes.

1/ Metaverse NFT trading volume hit new all-time high, DappRadar says

NFT trading skyrocketed in the first quarter of 2023 totaling $311M so far, DappRadar has disclosed. Some key names and figures in the new report:

• Virtual land trading reached an all-time high with 147,000 trades, mostly owing to Yuga Labs' Otherside, MG Land, and other dominant platforms in the space.

• Otherdeed NFTs logged $222M in trading volume or a 237% increase.

• NFT marketplace Blur's "airdrop seasons and farming" contributed to the rise, with the NFT whales deciding to farm virtual land.

• The Sandbox, Axie Infinity, and Decentraland dominated the dapps list, though they were topped by lesser-known Createra Genesis Land with $14M in trading volume.

• In funding, Createra Genesis Land raised $10M in January led by A16z, set on enabling user-generated metaverse creations.

A staggering $417.5M was invested into blockchain gaming and metaverse projects in Q1 alone, with increased interest from brands ranging from traditional tech giants like Sony to blockchain ecosystems like Polygon to create gamified experiences and virtual spaces.

2/ The Sandbox, Gemini, Kingsway and other web3 VCs back metaverse construction company LandVault

LandVault, the largest metaverse developer to date, closes a new funding round with leading web3 names led by Animoca Brand’s The Sandbox, Softbank, and Kingsway Capital, fueling its web3 expansion and hubs across three continents. The details as follow:

• LandVault has raised a total of $37M, the last round being a $25M Series B in November 2021, mainly deployed for in-game advertising and developing metaverse infrastructures.

• The brand has generated over 100 million digital square feet of new adventures in the metaverse, and over the last two years has crafted the metaverse infrastructure of brands like Heineken, L’Oreal, Hershey’s, Standard Chartered, and Mastercard.

• Besides fortifying its teams across Asia, Dubai, Europe, and the US, LandVault will funnel the funds into creating AI-powered tools to power creators’ metaverse experience.

Meanwhile, Animoca is quick to refute claims that it scaled back its metaverse fund target by $200M, or 20% to $800M, amid the crypto winter and following a series of bank failures. It has also downplayed word that its valuation has dropped from $6B as of July 2022 to roughly $2B in March 2023.

The claims stem from a March 24 Reuters report that cites anonymous sources.

3/ IRS to possibly tax NFTs the same way as fine art

The world of NFTs is a wild ride, and the IRS and U.S. Treasury Department are the latest to join the party by issuing new guidance on the taxation of NFTs and bringing a potential game-changer for traders and collectors alike.

The proposed classification of NFTs can potentially subject them to higher capital gains taxes and impact their liquidity and trading volume.

Under the new guidelines, the IRS will use a “look-through analysis” to determine whether an NFT should be classified as a collectible - an approach that considers the underlying asset that the NFT represents and assesses its status as a collectible under tax law.

How the public engages and provides feedback on these potential changes - demonstrating how both the industry and onlookers help shape policy decisions - will likely play out in the next few weeks and months.

4/ Who’s still buying real estate in the metaverse?

Virtual real estate is the hottest trend in the digital world, and its total value has soared over the past year at an astounding $1.4B.

The crossover between the virtual and real worlds makes virtual real estate one of the most fascinating aspects. For instance, a mansion in Pinecrest, Florida, is being offered both IRL and in The Sandbox metaverse, showing the potential for the virtual to become a tangible asset.

As the metaverse gains further traction, virtual real estate could become even more magnetic to investors, owners, and developers. Not everyone is quite so bullish, though, like billionaire Mark Cuban scoffing at the idea of buying a virtual home and calling it “the dumbest shit ever.”

The metaverse housing market may have a few problems of its own, but it’s a space worth watching.

🏃‍♂️ Quick Hits

🎮 Gaming

• Upland’s 2023 Hackathon brings web2 and web3 developers together for a flurry of new games and experiences. (Link)

• Apple will definitely be in our way: Epic Games CEO on their metaverse vision. (Link)

• Cyberpunk is a fast-emerging superstar of VR gaming. (Link)

• Players waste no time using Unreal Editor for Fortnite for everything from recreating scenes from famous games like GTA V to concocting new experiences. (Link)

• Video game Everywhere crams the ambition of GTA inside a Roblox competitor. (Link)

• A peek into innovative blockchain: Decentraland, Fantom, and DigiToads. (Link)

• Software engineers specializing in AR, VR, ER, and XR are one key role in building the metaverse. (Link)

🕶 Fashion

• Levi’s to start using AI-generated models in its bid to give shoppers models that “look more like themselves.” (Link)

• High-end runway shows, awards, exclusive NFT drops, and more: What to expect from Metaverse Fashion Week 2023. (Link)

• Can dressing digitally clean up top-polluter fashion's act? (Link)

• As the industry moves forward into web3, fashion companies must keep pace. (Link)

• South Korea’s Amorepacific graces metaverse space New Beauty Land this MFW. (Link)

• The Glossy podcast tackles AI in fashion, alongside Jeremy Scott’s departure from Moschino and Telfar’s live pricing model. (Link)

• Fashion students’ designs hobnob with DKNY, Adidas, and Tommy Hilfiger pieces on Decentralised for MFW. (Link)

🏀 Sports

• FitXR expands its VR fitness offerings on PICO VR headsets for UK, EU, and Asia markets. (Link)

• Automaker Lancia joins MFW 2023, creating a virtual showroom for a new concept car. (Link)

• Sports streaming goal: total engagement. (Link)

• Drone Racing League’s Algorand World Championship Miami brings high-speed competition in real life, in virtual simulation, and in the metaverse. (Link)

• Blockchain games are key to onboarding a critical mass of users onto web3, says Claudio Riff, CEO of sport prediction game Pooky. (Link)

🎥 Media & Entertainment

• Metaverse = VR? Meta says yes, but says no to fees. (Link)

• DJ Steve Aoki treats NFT holders to an exclusive preview of his new song “Wild.” (Link)

• Snap wants enterprise customers to snap up its AR tools. (Link)

• The entertainment industry continues to sound out the metaverse. (Link)

• How will the metaverse impact social media? (Link)

• Meta launches WhatsApp’s updated version for Windows but it’s still a far cry from the promised metaverse virtual meeting experience pitched 1+ year ago. (Link)

• The global extended reality market may reach $161.6B by 2028, growing at a 29.7% CAGR. (Link)

• What would Travelzo’s “travel metaverse” look and feel like? (Link)

🖼 Art

• In the SVB fallout, Mason Rothschild wants to change the business art convo around money and banking with a new OE drop. (Link)

• Emerging artist Devon DeJardin launches Guardians as his debut NFT project. (Link)

• The new hyperreal: how AI and the metaverse are transforming the physical world. (Link)

• Sabrina Ratté's tech-humanity fusion art is skyrocketing her to stardom. (Link)

• Crypto Artist Bruno Cerasi unveils latest NFT dubbed as "Skin and Bones I.” (Link)

• Step into the metaverse’s first-ever open house – now available for a cool $12.9M. (Link)

• Web3 company Idexo unveils NFT templates and web3 CRM to enhance community engagement. (Link)

🤖 AI

• As the AI saga continues, discover Artificial General Intelligence. (Link)

• Adobe unveils Firefly, new generative AI models for creatives. (Link)

• Banking is getting smarter, thanks to AI. (Link)

• AI is becoming so good at music-making that it's downright spooky. (Link)

• In astrophysics, AI finds the first stars were not alone. (Link)

• Value fashion retailer Rainbow Shops enhances its search with cloud-based AI. (Link)

• Japan's first AI-generated manga, made by a non-artist, hits the scene. (Link)

• From personal assistants to smart home devices, here are 7 examples of AI in everyday life. (Link)

💸 Funding & Partnerships

• Metaverse platform Hadean lands $5M in funding for the build-out of its metaverse infrastructure solution, adding to the company’s previous Series A round of £30M in September. (Link)

• Radix Tokens raises $10M in funding as it prepares to launch its new smart contract capability. (Link)

• The Sandbox partners with Ledger Enterprise to offer security to LANDs and NFTs with an additional widget for The Sandbox in Ledger Live. (Link)

• Crypto exchange platform BTCEX signs an MoU with blockchain consultant W Economy TV as part of its bigger plans toward “K-blockchain.” (Link)

• Web3 community and brand management platform Try Your Best (TYB) joins Shopify, enabling brands to connect a TYB widget to their checkout experience. (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.

📈 If you are a startup building in the metaverse / web3 ecosystem and are raising capital, please reach out to Sfermion. Sfermion is an investment firm focused on accelerating the emergence of the metaverse 📈

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