Weekly Updates: On-Chain Art, Digital Residency through NFTs, & A Look at 2H ‘23
Diving Deep into On-Chain Art, the Future of Digital Residency, and the Growth of DeFi in the Second Half of 2023 - Get Ready for the Velvet.Capital v2 Launch and Find Out More about Airdrops
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In this installment of the Velvet Weekly Round-Up, we cover Sotheby’s innovative move to launch an on-chain generative art program, the Republic of Palau’s groundbreaking initiative to offer digital residency through NFTs, and the Bank for International Settlements’ use of DeFi technologies for their CBDC test. But first, let's take a look at the macro view of the economy.
With all eyes on the second half of 2023, the crypto market has remained relatively stable off of its recent upswing. The recent strong labor market and services sector performance reduce the chances of a near-term recession. However, the economy may slow down to below-average growth in the latter half of the year due to the Federal Reserve’s anticipated rate hike in July and early signs of labor-market weakening. Inflation trends will continue to be crucial for the markets. Moderation in inflation is expected, possibly due to a slight cooling in the services sector, supporting the argument for the Fed to stop rate hikes and potentially consider rate cuts over time.
In 2024, the inflation backdrop could improve, the economy might start recovering from a mild downturn, and the Fed may pause rate hikes and contemplate rate cuts. This situation presents emerging opportunities for both crypto and tradfi markets.
Quick Hitters
Coinbase has sought court dismissal of SEC charges, labeling them as an extreme misuse of authority.
Polygon Labs and Warner Music Group have teamed up to launch a music accelerator program, aiming to drive innovation in the music industry.
Crossmint, a company specializing in web3 infrastructure, has introduced a Wallet-as-a-Service solution to broaden the applications of NFTs.
The European Commission has proposed a legal framework for a digital euro, indicating that it’s seen more as a digital wallet for transactions than an investment tool.
CyberKongz’s new ERC-721x token standard enhances NFT security with non-custodial staking and two-factor authentication, aligning with a trend toward integrating DeFi features into NFT platforms.
Maple Finance is launching Maple Direct, a lending arm for web3 companies, addressing the market gap left by traditional banks and potentially promoting institutional engagement and capital influx in the sector.
Bored Ape Yacht Club (BAYC) and its Yuga ecosystem assets are facing challenges, with governance issues in the ApeCoin DAO and a record low for APE, raising questions about the sustainability of DAOs in managing NFT collections.
The United Nations’ financial arm, the International Monetary Fund (IMF), suggests in a recent paper that banning crypto assets may not be a viable long-term solution for countries looking to mitigate associated risks.
The Swiss National Bank (SNB) plans to launch a pilot for a wholesale CBDC, which will be issued on SIX, Switzerland’s top and Europe’s third-largest stock exchange.
FC Barcelona is partnering with the NFT project, World of Women (WoW), to boost women’s football visibility. The initiative, part of its ‘Masterpiece’ collection, will feature ‘Empowerment’ collectibles starting June 26.
Breaking News
Polygon Plans to Merge PoS Chain with zkEVM
Polygon plans to merge its PoS chain with the zkEVM, an Ethereum Virtual Machine compatible with zero-knowledge proofs. This merger aims to combine the strengths of both technologies — PoS’s security and decentralization, and zkEVM’s privacy and scalability — to enhance Polygon’s capabilities and position it as a leading platform for developing and scaling blockchain applications.
Mastercard Develops Blockchain-Powered App Store
Mastercard is developing a blockchain-powered app store to provide a decentralized platform for developers, ensuring secure transactions and data privacy. The use of blockchain technology will ensure fair compensation for developers and authenticity for users. The project is still in its early stages with no official release date announced yet. It signifies a significant step in integrating blockchain technology into mainstream platforms.
BIS Leverages Curve’s AMM Technology for CBDC Test
The Bank for International Settlements (BIS) is utilizing Curve’s automated market maker (AMM) technology in its CBDC test. The use of DeFi technologies like AMMs could make transactions more efficient and secure in the CBDC system, potentially revolutionizing the financial landscape. The project is still in its early stages but represents a significant advancement in financial innovation.
Sotheby’s to Launch On-Chain Generative Art Program Powered by Art Blocks Engine
Sotheby’s, a world-famous auction house, is planning to launch a generative art program powered by the Art Blocks engine on the Ethereum blockchain. This initiative represents a significant fusion of traditional art and modern blockchain technology. The program aims to unite artists, collectors, and crypto enthusiasts while offering a new form of art ownership. The launch date and further details about the program are yet to be announced.
Palau Embraces NFTs: A New Era of Digital Residency
The Republic of Palau, a small island nation in the Pacific, is partnering with DAO Rush to offer digital residency assets through NFTs. This initiative will allow individuals from around the world to become digital residents of Palau. The NFTs will be minted on the Ethereum blockchain and will grant holders access to a range of benefits, including voting rights in DAO Rush’s governance system. The initiative aims to create a new form of citizenship and promote global inclusivity.
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