OpenSea exec found guilty

SEC tiptoes around digital asset labeling, AI’s Industrial Revolution-level potential, plus more metaverse stories today

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In what the US Department of Justice considers the first criminal case of an insider trading scheme involving digital assets, 32-year-old Nathaniel Chastain, OpenSea’s former head of product, has been convicted of fraud and money laundering for using inside knowledge of which assets would be featured on the marketplace’s homepage for NFT trading.

The details of the case:

  • According to prosecutors, Chastain bought NFTs he had decided to feature on the NFT trading platform and shortly after sold them to make $50,000+ in illegal profit.

  • In June 2022, the DOJ and FBI arrested Chastain, charging him with wire fraud and money laundering. He pleaded not guilty, with his lawyers arguing that it was non-confidential information used, and that NFTs aren’t securities.

The Securities and Exchange Commission, about to define “digital asset,” deletes it in the final version of a hedge fund rule and thus reverses a move that might begin to formalize crypto regulation.

Initially, the SEC included the definition in its 2022 proposal to overhaul mandatory disclosures for hedge funds, yet decided to yank it out of the final rule approved by the commissioners. A footnote explained its stance:

“The commission and staff are continuing to consider this term and are not adopting ‘digital assets’ as part of this rule at this time.”

What this means: For the agency, digital assets still don’t hold a formal place in its lexicon.

The original proposed definition for a digital asset is “using distributed ledger or blockchain technology” and including “so-called ‘virtual currencies,’ ‘coins’ and ‘tokens.’”

Some segments are quick to pinpoint that while digital assets are usually marketed as an alternative to the traditional finance system, hedge funds, private equity firms, and banks have been getting more involved in investing and lending such assets.

In his final parliamentary hearing, Sir Patrick Vallance, outgoing chief scientific adviser in the UK, highlights the transformative potential of generative AI to change employment similar to that seen during the Industrial Revolution.

Key points that emerged at the hearing:

  • With generative AI potentially as groundbreaking as the Industrial Revolution, the government is urged to act to prevent mass unemployment.

  • AI pioneer Geoffrey Hinton voices concern about AI's distortion of truth, while Vallance cautions against unexpected outcomes.

  • Vallance highlighted AI's potential benefits, particularly in medicine, where it could provide more doctor-patient time.

  • Vallance remains skeptical of a UK version of ChatGPT, instead advocating for increased exploration of varying AI models and testing their outputs.

Universal Studios' theme parks have seen recent advancements with the metaverse, leading to attractions that combine the physical and digital realms for a unique guest experience.

Some exciting developments in this direction:

  • Mario Kart: Koopa's Challenge: This ride in Japan takes place inside a replica of Bowser's Castle, where guests put on an AR headset attached to Mario's iconic red cap and compete with others in an exhilarating journey.

  • King Kong: 360 3D experience: The Hollywood attraction takes guests on an immersive journey through a recreated version of Skull Island from Peter Jackson's 2005 movie King Kong, with 3D projection tech to boot.

  • The Bourne Stuntacular: This theater experience in Orlando takes guests to the future of live entertainment, replete with high-tech special effects including projection screens and pyrotechnics.

Digital pioneer Philip Rosedale cites a likely reason for the slow growth and traction among head-mounted displays (HMD) and virtual reality adoption as a whole.

“For most people and for most VR experiences, putting on a headset means being cut off from other people. I think this is the most important reason why there is little HMD sales growth,” tweets Rosedale, founder of Second Life, one of the first virtual worlds and a leading social platform for adults.

“The industry needs to focus on communication, not immersion.”

Rosedale, also the founder of Second Life paren’t firm Linden Lab, has two decades of experience managing an online world and developing a virtual currency traded worldwide. In a previous interview, he lauds technology’s benefit to improving human relationships.

“We know there’s a lot of good that can happen when people are in virtual worlds together,” he tells Global Finance.

Recently, the American entrepreneur also likened generative AI to an "alien intelligence" capable of superhuman tasks but lacking human-like reasoning, pointing out current limitations such as the inability to read and write to memory at the same time.

🏃‍♂️ Quick Hits

🎮 Gaming

  • South Korean game publisher Neowiz wants to fund the next gen of web3 games with a $10M game accelerator with Polygon. (Link)

  • Fortnite lands on Amazon Luna but you’ll need a subscription - Nvidia and Microsoft let you play for free. (Link)

  • CLTX Gaming, the official NBA 2K League affiliate of the Boston Celtics, and moderation company Modulate foster sportsmanship in online gaming. (Link)

  • BSV blockchain-based fantasy combat game CryptoFights gets fresh updates. (Link)

  • Classic side-scrolling beat-’em-up franchise Double Dragon gets a modern revival. (Link)

  • WePlay Ventures launches what it calls Europe’s largest accelerator program for gaming startups, named WePlay Hub. (Link)

🕶 Fashion

  • Adidas x Tokenproof: How to unlock exclusive access to this whole new world with your NFTs. (Link)

  • Digital fashion in a nutshell. (Link)

  • A rundown of the best fashion NFTs and web3 projects for April. (Link)

  • Women’s apparel hasn’t been designed with women’s physiology in mind - and data, tech, and AI may finally be changing the game. (Link)

  • Luxury streetwear label Les Benjamins enters web3, unveiling the Flying Carpet Crew. (Link)

🏀 Sports

  • Public blockchain foundation Vechain facilitates the 1st tennis finals trophy NFTs with Internazionali BNL d'Italia. (Link)

  • Crypto exchange OKX co-launches OKX Collective with Manchester City in their bid to engage fans in the metaverse. (Link)

  • These AI-generated NFL mascots are quite the nightmare. (Link)

  • Sports social platform startup LinkSports kickstarts seed funding to build a social platform for athlete discovery and promotions. (Link)

  • How the NFL and Mythical Games partner up to take advantage of crypto and blockchain. (Link)

  • Spider-Man becomes a football super fan through a platform linking up sports fans and teams through fan tokens. (Link)

🎥 Media & Entertainment

  • Snapchat experiments with sponsored links in its My AI chatbot. (Link)

  • Pop star Bebe Rexha releases her 3rd album and engages fans via the TerraZero-powered Bebeverse Virtual World. (Link)

  • Google announces passkeys for passwordless accounts on all major platforms. (Link)

  • Including its cut metaverse unit, brutal Disney layoffs hit an already hurting Hollywood. (Link)

  • Gmail starts displaying a familiar-looking blue checkmark next to a sender’s name to verify identity. (Link)

  • Moviestorm launches FirstStage, a VR-based content creation platform. (Link)

🖼 Art

  • Scientific tools, immersive exhibitions, and emotional connections at Marc Tamschick’s Invisible Worlds exhibition at the American Museum of Natural History. (Link)

  • From books to poetry: Are text NFTs the next big thing? (Link)

  • Immortality for her art and immortality for herself are the twin goals of NFT creator Josie Bellini. (Link)

  • Artist Rhett Mankind uses $69 and AI software to create meme cryptocurrency $TURBO. (Link)

  • New Art Space Erma Gallery opens in Dubai together with a POS terminal for NFT buys. (Link)

🤖 AI

  • Does AI pose an existential threat to humanity? (Link)

  • MIT-Takeda researchers create an AI-powered estimator for manufacturing medicine. (Link)

  • RoomGPT and Reimagine Home, AI-powered interior design apps, are on the rise. (Link)

  • In their latest security report, Meta analysts warn of malicious ChatGPT imposters. (Link)

  • What makes AI’s intelligence artificial? (Link)

  • Firework rolls out its generative AI product for video commerce. (Link)

💸 Funding & Partnerships

  • Range secures $12M from Gradient Ventures, Google's AI investment arm. (Link)

  • SG-based AI tech firm Advance Intelligence Group raises $80M from a consortium led by Warburg Pincus and Northstar Group. (Link)

  • Openenvoy secures $15M Series A funding led by RRE Ventures. (Link)

  • PipeFlare and NEAR Protocol partner to make gaming seamless for web3 users. (Link)

  • The Sandbox inks an exclusive deal with Turkey-based gaming platform Gamer Arena for a wealth of game offerings. (Link)

  • Blockchain ticketing platform NFT-TiX partners with Unum Festival for a music event. (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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