Paper 45: SBF Puff Pieces To Buff Pieces
SBF coverage becomes farcical as crypto stares into abyss
GM - this is the BCheque Papers.
I write about NFTs, crypto, and making it independently in web3.
This week we’ve got
SBF Puff Pieces + Genesis Crisis
Chimpers Secure Major IP Partnership
Digital Art: The Creator’s Options
Memes of the Week
Have a great day,
B
SBF Puff Pieces + Genesis Crisis
Last week FTX imploded. This week we were ready for widespread condemnation in mainstream media. Right?
…..right?
Instead, SBF has been presented as a knight knocked from his horse.
Whilst most of Twitter is convinced of his guilt, he appears to be chilling in his penthouse this week and welcomed in New York next week.
Adam points out: MSM have dropped the ball here. Everyone who knows even a modicum about what happened is completely incensed by this reporting. (I went through a lot of it in the paper 2 weeks ago.)
It’s become so farcical that the media would rather report that Tom Brady or Shaq may be on the hook for their promotion of FTX (!) than insinuate that there is any material blame on SBF himself.
Consolation: this meme.
In other news, crypto lender Genesis has $2.8b in outstanding loans.
Genesis is the largest institutional crypto lender, giving out over $130B in loans in 2021 alone. Any fall of Genesis would further constrain liquidity and leverage in crypto markets.
DCG, Genesis’ parent company, is also the parent company to Grayscale and the Grayscale trust.
The Grayscale trust currently holds 635K BTC & 3.1M ETH.
DCG also borrowed heavily from Genesis. It appears that is not going very well either…
All in all things look pretty bad.
But maybe so bad that things can’t get much worse, so prices of the coins went up. Some relief!
And…
JPMorgan filed a trademark for a new crypto wallet with the ability to exchange and transfer digital currencies. Whilst sentiment continues to take a hammering, the underlying tech is unchanged and adoption continues.
2. This Week in NFT World
Chimpers announced a partnership with Teenage Mutant Ninja Turtles and Paramount.
Such nostalgia! Huge shoutout to my friends Insight, Timpers, and Ser Joey on this partnership. I know they have worked so hard the last year - couldn’t have wished it for better people.
ApeCoin staking to go live soon but not in US or Canada. Much anticipated staking of Yuga’s $APE coin will go live in early December, though it isn’t clear how US or Canadian citizens can participate legally. (If you are interested in how made-up coins suddenly have irl value, check out this paper I wrote on coins and liquidity pools.)
AOTM Gallery created by Vincent Van Dough. Prominent collector VVD announced a digital art gallery which will represent some of the most successful artists in the game.
Digital Art: The Creator’s Options
The great thing about this new Web 3 creator economy is that it gives creators more options.
I have always been a proponent that Web 3 will not replace a creator’s current toolkit; Web 3 will augment a creator’s current toolkit.
This excellent thread by Node outlines how digital artists can slice up and present their art to market in different ways.
TLDR:
1/1 = you're the only owner. Like buying a standalone painting. Less liquidity, highest 'risk'.
1/x = editions. 'Digital Prints'. Editions lower cost of entry, expanding the collector base for artists.
1/1/x = Each piece is a unique 1/1 but is part of a larger cohesive set. More liquidity, creates a community-like feeling for collectors.
1/x/x = multiple different editions that are tied to a bigger collection. Usually gamified or in a collectible setting.
I think any of these approaches can work, depending on who you are as an artist AND what you want to achieve.
I also think artists can experiment with what works. I’ve recently enjoyed observing the approach of @Elisprii who has been releasing regular memeworthy pieces at reasonable prices.
This is so empowering for creators because it proves there is no one-size-fits-all approach.
Web 3 does not replace your current toolkit; Web 3 augments your current toolkit.
Memes of the Week
When you overstep the line at Thanksgiving.
Have a great day,
B
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Disclaimer: The content covered in this newsletter is not to be considered as investment advice. It is for informational and educational purposes only.
I hold some of the NFTs mentioned in these newsletters.