NFTs down, web3 development still hot

Today we are covering…

🔻 NFT trading remains slow, yet web3 dev’t stays hot

🪙 PayPal launches stablecoin

⌨️ Researchers discover novel AI cyberattack through keyboard typing sounds

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NFT trading remains slow, yet web3 dev’t stays hot [Link]

Two new reports point to a major slowdown in NFT trading, yet on the bright side web3 development and web3 loyalty programs continue to show bustling activity.

• NFT trading volume falls 41% in Q2 2023, according to a new report from web3 developer platform Alchemy, with recommendations for NFTs to figure out new use cases beyond their original JPEG iteration.

• Sales of NFTs drop by almost half from January to July, while the floor prices of blue-chip collections like Bored Ape Yacht Club and Azuki sink to 2-year lows, reveals a report from analytics firm DappRadar.

• The silver linings: Web3 developers continue to deploy millions of smart contracts across EVM-compatible chains, heralding a stable interest in dApps and broader web3 use cases. Web3 loyalty programs among the likes of Starbucks - and airlines, albeit slower in adoption - are also booming.

Meanwhile, Singapore provides a web3 boost by committing $112M to support fintech solutions such as web3. The new innovation scheme includes various tracks like the Environmental, Social and Governance fintech track, and the Innovation Acceleration track covering web3.

PayPal launches stablecoin [Link]

Fintech giant PayPal has launched a new stablecoin called PayPal USD (PYUSD), fully backed by US dollar deposits, short-term treasuries, and similar cash equivalents. Launching crypto payments in 2020, the company has since been actively involved in the sector.

The finer details:

• The stablecoin is built on Ethereum and “designed for digital payments and web3,” said to be soon available to US customers.

• PYUSD will be redeemable for US dollars at all times, can be exchanged for other crypto on PayPal, and will be transferable between PayPal and Venmo.

With 350M+ active users, PayPal rolling out a stablecoin could speed up its efforts to become a crypto payment giant. At present, it already lets US and UK users buy, sell, and hold Bitcoin while enabling payments in the assets.

Researchers discover novel AI cyberattack through keyboard typing sounds [Link]

British researchers have uncovered a novel cyberattack method: the use of audio recordings of typing to steal personal data. The attack utilizes a deep-learning-based algorithm to acoustically analyze keystroke noises, converting them to text with 95% accuracy.

Acoustic side-channel attacks, enabled by AI, allow hackers to use audio recordings to decipher keystrokes and steal passwords - a particularly concerning threat due to its potential to compromise online credentials.

The researchers emphasize the ease with which this attack could be executed:

• Public spaces: A malicious actor could discreetly capture keystroke audio when a user is in public spaces such as coffee shops, leveraging the victim's assumption of privacy in these environments.

• Sophisticated surveillance: Equipped with advanced listening devices, attackers could potentially breach the confines of a user's private space, enabling them to execute the attack even within the victim's own residence.

Survey shows developers’ perception of AI impact on their work [Link]

The rise of AI has made a significant impact on various industries, including software development. Stack Overflow surveys 90K+ developers to gain insight into the use of AI in software development, with these key takeaways:

• 70% of developers are already using AI tools in their development process or plan to do so. Among these, 44% are actively using AI tools, while 26% have plans to incorporate them into their workflow.

• Around 33% of respondents see increased productivity as the primary benefit of using AI.

• Experienced devs find improved productivity (37.4%) to be the most relevant, closely followed by greater efficiency (27.9%) and speed of learning (27.4%). Devs learning to code consider increased learning speed (42.4%) and productivity (41.4%) as the most significant benefits of AI.

Roles like Site Reliability Engineers (SREs), security professionals, and game devs hold unfavorable views on AI due to security concerns related to sensitive information, while frontend dev, data scientists, and cloud devs are more likely to embrace AI tools for tasks like providing code snippets and automating data processing.

Quick Hits

🎮 Gaming

• Crucible’s Emergence SDK for Unity game developers launches - why do interoperable avatars matter? (Link)

• The world’s next Holocaust museum, dubbed as Voices of the Forgotten Museum, finds a home in Fortnite. (Link)

• Metaverse game Neopets, based on the popular 1999 pet simulator, repurposes its assets for a new mobile game offering. (Link)

• Cyprus-based investment firm Gem Capital to inject $49.3M (€45M) into game studios in Eastern Europe over the next 2 years. (Link)

• Inspired by Hollywood, Bollywood, Hong Kong cinema, and beyond, the battle royale game Mighty Action Heroes packs web3 thrills into blockchain-tradable, collectible NFTs. (Link)

• Athletes, fans, brands, and game devs can tap into LootMogul’s open AI architecture to create non-player characters (NPCs) or AI avatars. (Link)

🕶 Fashion

• How Epic Games became fashion’s unlikeliest bedfellow (Tip: It wants to grow beyond Fortnite, and it sees fashion as a way to do that.) (Link)

• Tech startup Entrupy is weaponizing AI against fashion counterfeits. (Link)

• Data-driven, South Florida startup Fashom harnesses algorithms to match women with fashion styles, enhancing local retailers’ sustainability efforts via AI. (Link)

• Munich-based Sizekick banks on size recommendation in the ongoing fight against size-related online returns. (Link)

• Copenhagen Fashion Week teams up with Drest to launch a mobile-style game. (Link)

• Meanwhile, the global fast fashion market is on track to become a $167.5B space by 2030. (Link)

• Understanding direct-to-consumer (DTC) fashion brands and how they’re disrupting traditional retail. (Link)

🏀 Sports

• AR try-on store Zero10 and JD Sports deploy AR mirrors and offer virtual try-on of new Nike apparel in IRL stores. (Link)

• FanDuel Sportsbook delivers live, in-play golf betting to enable PGA TOUR fans to bet shot by shot. (Link)

• Surf away: Hurley drops digital collectibles and a new super surfer game. (Link)

• Ownership is everything - why sport mustn’t turn its back on blockchain. (Link)

• How will virtual reality likely impact swimming? (Link)

• Web3-savvy Adidas and Les Mills debut a science-backed strength workout alongside new training wear. (Link)

🎥 Media & Entertainment

• AI camera app Pamera lets users transform photos on their iPhones into poetry. (Link)

• Is the metaverse an entertainment hub or education tool? (Link)

• Metaverse frontrunners Kakao Entertainment and SM Entertainment are jointly setting up a North American division. (Link)

• Threads is finally getting a web version, but will that bring users back? (Link)

• Zoom launches Zoom Clips, a new video tool which lets users record, edit, and share video clips without the need for a meeting. (Link)

• SK Telecom posts strong Q2 earnings driven by non-telecom revenue and aims for AI transformation with a new alliance launch. (Link)

🖼 Art

• Mansfield College students harness VR to bring their 3D fantasy landscapes to life. (Link)

• Gala Games releases NFT mystery boxes to commemorate inventory migrating to the Galachain. (Link)

• ASUS launches a metaverse NFT battle for digital creators to showcase their artwork on Tokyo billboard and Creative Bloq. (Link)

• Here’s another tool for artists to create 2D and 3D content. (Link)

• TikTok announces the Gimme the Mic virtual talent show, a showcase of skills through 30-second videos. (Link)

• Preserving art in the digital age: Nano restoration of canvas and its tech implications. (Link)

🤖 AI

• Intel opens a new Chinese AI chip center amid the White House’s around US security. (Link)

• Zoom clarifies its recent terms of service update and confirms no unauthorized use of customer content for AI training. (Link)

• AI imagines how the sun looks like from Mars. (Link)

• OncoNPC is an AI model that can accurately identify the origin of cancer in 40% of cases where left unknown. (Link)

• This AI-powered assistant wants to streamline tasks that typically involve multiple steps. (Link)

💸 Funding & Partnerships

• Neuralink, a biotech company founded by Elon Musk, raises $280M in series D funding. (Link)

• Singapore launches a $112M (S$150M) tech and innovation fund and declares support for web3 projects. (Link)

• Resilience completes a $100M series D equity financing round to expand its enterprise-level cyber-risk platform. (Link)

• Singapore-based Digital Entertainment Asset (DEA) secures funding from KDDI Open Innovation Fund III for web3 expansion and collaborations in metaverse and GameFi. (Link)

• Multiplayer raises $3M for AI-based distributed software development. (Link)

• Windup Minds raises $1.6M in pre-seed funding for a game studio focused on virtual pet games in VR and MR. (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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