CoinFund’s NFT thesis and our investment in Rarible
NFTs  are not just cat pictures that people trade on blockchains. Today digital art , collectibles , and in-game assets  are the most visible use cases for these nifty non-fungibles. But the market holds an inconspicuous secret: there is a staggering diversity of online digital content that can be placed on a blockchain in the form of NFTs.
- Amazon, Netflix, and Hulu host over 23,000 pieces of on-demand video content. Disney+ and HBO Max have added nearly 10,000 more.
- AR and VR creators are busy populating the Metaverse with 3D models. Marketplaces like TurboSquid are offering 60,000 3D models today  and are poised for growth.
- In music, the world releases about 100,000 albums every year,  each with multiple tracks that can generate millions of plays. Recording artists are moving toward self-publication models  on services like SoundCloud and Audius  and toward self-distribution models like Spotify.
- Shutterstock is home to over 330 million stock photographs which can be licensed and collect royalties. 
- Over a billion domain names are registered each year, with 400m registered in the first quarter of 2017. 
- We upload nearly 1.8 billion images per day  to the Internet, or a stunning 657 billion images per year.
- In social media, we generate around 200 billion tweets per year , some of which accrued tens of millions of views and become iconic pieces of history or popular culture.  There are over 600 million blogs on the internet today.
This list is just scratching the surface of the broad spectrum of digital content. But we shouldn’t think of NFTs as tokenized digital content itself. A core insight is that NFTs are much better understood as encapsulating intellectual property rights to the assets they describe. 
To fully appreciate this view, consider that we seldom own anything on the internet today: we license ebooks from Amazon, we rent music plays from Apple Music, and we make payments to borrow domains from a registrar for a little while. Even when we create our own content, the rights to it are often owned by the content platform, distributor, or label. (In one case of recording artists and music labels, Taylor Swift wasn’t allowed to perform her own music  after having signed over rights.)
Most importantly, if we cannot truly own digital content, or easily license it, we will almost surely never resell it.
Blockchains and NFTs will change this state of affairs dramatically. First, they will digitize the rights to digital content in the form of blockchain assets. Second, they will allow for the assets to be placed on secondary markets. Thus, we can view NFTs as liquid intellectual property (“liquid IP”)  for all forms of digital content, a marketplace which is measured in trillions of units that is about to be tokenized.
Tokenizing IP assumes, of course, that the creator assigns over actual intellectual property rights, enforced by law or smart contract, as part of the issuance process. This comes with some technical problems to solve, like choosing legal jurisdictions in which the rights would be enforced and connecting legal agreements to the minting process. Luckily, there is some precedent for these structures  and Aragon may become one option for a global, digital jurisdiction in the near future. 
But why should we want to own digital content when we already have it?
If NFTs are liquid IP, then holders will eventually own the property’s cash flows. This fact makes non-fungible tokens a financial asset class.
In the future, purchasing an NFT will entitle the owner to certain rights related to its content: the right to own and keep; the right to sell, license, and lend; as well as the right to royalties, the right to confer reuse (i.e. “movie rights”), and so on. That’s why taking a photograph of the Mona Lisa is not the same as actually owning Leonardo da Vinci’s masterpiece. You will not be able to charge 10.2 million yearly Louvre visitors an admission fee to see the print.  A similar principle applies to digital objects and their future cash flows.
As intellectual property rights inevitably move onto the blockchain as NFTs, trillions of units of digital content will move onto secondary markets. This will unlock tremendous illiquid value and become the biggest asset class in blockchain. Tokenization creates new ways of working with IP that were previously unavailable or too expensive to set up. For example, blockchain technology will automate IP provenance, use tracking, and rights management. Using existing standards and smart contracts, NFTs can be fractionalized, co-owned, and governed by multiple users or communities. Fractionalized tokens can be traded, crowdfunded, and incorporated into other financialization schemes to manage risk or unlock further value. (Projects like OpenLaw are venturing into new royalty technology and artist royalties are a popular topic in the #cryptoart scene. )
While tokenization will impact the liquidity of classic IP, digital-native use cases will arise as we look toward the future. Imagine owning the royalties to a Taylor Swift’s new album Folklore, or trading an index of your favorite digital artists like Frenetik Void  or Pak.  Imagine selling a digital 3D model you built or licensing a stock photograph you shot directly from your phone into a global marketplace. More exotically, imagine supporting your favorite blogger or influencer by purchasing and owning their blog post or Insta story.
While the Metaverse seems like a distant digital dream, its digital assets are already here and new kinds of investors are taking notice. Andrew Steinwold’s Sfermion is a Metaverse-native firm that invests in “esoteric digital assets” , that is, NFTs of virtual worlds, digital art, and related assets. I suspect these assets won’t be esoteric for long. Companies like Fortnite are already measuring revenue streams in billions based on in-game digital objects, while Dapper Labs’ NBA Top shot just brought digital collectibles to the sports industry.
NFTs are about to become a new, voluminous financial asset class. To capture its value we need venues for selling, auctioning, and trading these new assets.
Rarible is the first NFT marketplace in the blockchain space to launch a governance token. The token, called $RARI, can be obtained in exchange for marketplace participation and has found its initial liquidity on decentralized venues at Balancer and Uniswap. If you’ve ever transacted on Rarible or made an NFT purchase or sale on-chain, there is a good chance your address is eligible for the $RARI airdrop.   
The team at Rarible, founded by Alex Salnikov and Alexei Falin, is based in Moscow, Russia but engages the blockchain space globally and is open for business to anyone in the world who has a smartphone. 
The Rarible team has continued to raise the bar on user experiences for both cryptonatives and mainstream users. Today, Rarible comes with state-of-the-art features and experience for NFT creation: ERC-721 and ERC-1155 standards support, multi-edition mining, custom on-chain collections, and creator verification and moderation. On the demand side, top notch tools are in the works in the areas of discovery, engagement, and displaying works. Users new to blockchain should find friendly user experiences with Magic and Zerion integration, as well as upcoming credit card support. And, of course, Rarible’s moderated incentive program distributes $RARI rewards for users who transact on the platform.
But the real innovation of Rarible is that it is on a path of gradual decentralization toward community ownership, making it a highly competitive venue to attract participants. Rarible is currently in the process of implementing full decentralized governance, just like many DeFi projects are launching today. As a result, the platform’s core features, economics, and smart contracts will eventually be totally in the hands of the Rarible community through $RARI ownership.
Over time, we think cryptonative monetization and the core value propositions of crypto networks  implemented by Rarible will make it highly competitive with other digital marketplaces and Rarible will be a premiere venue for NFT liquidity. The community-building properties of digital assets have been discussed previously  and Rarible has already seen an immense response in platform metrics following the launch of the digital asset. Using $RARI, Rarible will be able to shore up a strong, loyal community that maintains an active 2-sided marketplace.
Kraken Daily Market Report for May 08 2021
- Total spot trading volume at $2.86 billion, 9% higher than the 30-day average of $2.63 billion.
- Total futures notional at $797.5 million.
- The top five traded coins were, respectively, Ethereum, Bitcoin, Dogecoin, Tether and Ethereum Classic.
- Strong returns from Gnosis (+14%) and Ethereum (+12%).
|May 08, 2021
$2.86B traded across all markets today
Crypto, EUR, USD, JPY, CAD, GBP, CHF, AUD
#####################. Trading Volume by Asset. ##########################################
Trading Volume by Asset
The figures below break down the trading volume of the largest, mid-size, and smallest assets. Cryptos are in purple, fiats are in blue. For each asset, the chart contains the daily trading volume in USD, and the percentage of the total trading volume. The percentages for fiats and cryptos are treated separately, so that they both add up to 100%.
Figure 1: Largest trading assets: trading volume (measured in USD) and its percentage of the total trading volume (May 08 2021)
Figure 2: Mid-size trading assets: (measured in USD) (May 08 2021)
Figure 3: Smallest trading assets: (measured in USD) (May 08 2021)
###########. Daily Returns. #################################################
Daily Returns %
Figure 7: Returns over USD and XBT. Relative volume and return size is indicated by the size of the font. (May 08 2021)
###########. Disclaimer #################################################
The values generated in this report are from public market data distributed from Kraken WebSockets api. The total volumes and returns are calculated over the reporting day using UTC time.
Legendary Pelé NFT Set to Drop on Ethernity May 8
[Press Release – Los Angeles, California, 8th May, 2021]
Iconic Brazilian footballer Pelé will be immortalized in NFT form on May 8.
The legendary striker, named FIFA World Player of the Century, is getting the tokenized treatment with the release of a licensed aNFT – authenticated non-fungible token – exclusively on the Ethernity Chain at 12pm EST.
The digital presentation includes “THE KING OF FOOTBALL,” an immersive video tracing the player’s humble origins on the streets of Brazil to a packed stadium witnessing his brilliance. The eponymous “Pelé” aNFT, meanwhile, is represented by a hyper-realistic digital bronze bust of the star in his heyday.
As part of the Pelé aNFT collection, Ethernity will be releasing multi-pack trading cards that make a nod to the player’s Panini trading cards of the past.
Ethernity’s special digital trading cards include “Gilded Bicycle Pelé,” which showcases the player executing his signature bicycle kick. The limited edition cards will be part of the Ethernity Cards and Packs Collection launching this summer, 2021.
90% of aNFT sales will go to The Pelé Foundation, a charitable organization that strives to empower young people facing poverty around the world.
Ethernity’s recent Muhammad Ali aNFT auction, which raised over $550,000, also resulted in a significant donation being made to the Muhammad Ali Foundation.
Ethernity is exploring applications for non-fungible tokens (NFTs) within the context of art and philanthropy. It provides a way for celebrities and public figures to endorse digital artwork created by renowned artists. Anyone can purchase each limited edition artwork, with a portion of the proceeds going to charitable causes that the celebrity supports. Ethernity was founded by early Bitcoin investor and NFT innovator Nick Rose Ntertsas.
Learn more: http://ethernity.io/
Crypto Banter Will Give Away Over $500K To 10 Eligible Community Members
[Press Release – Cape Town, South Africa, 8th May, 2021]
Banter Bags is a unique project in the cryptocurrency world that aims to give back to its community. What initially started as a $10,000 community giveaway is now worth over $500.000. Ten eligible community members will be chosen randomly to receive their share of the spoils once the Crypto Banter Youtube channel surpasses 250,00 subscribers.
The Banter Bags Giveaway is an event created by Ran Neuner, host of CNBC Crypto Trader and founder of Crypto Banter on Youtube. The initial objective was to reward active participation in the community and generate more engagement with the daily streams but as the investments started to grow it became a mechanism to really change some community member lives.
Speaking of pre-market allocations, the Crypto banter team initially put $10,000 in a public Ethereum address. That money was then invested into allocations, with more investments occurring daily to diversify the portfolio further. Several key investments have noted spectacular returns, including Shopx, Aioz, Refineable and Occam. All of these pre-market allocations have gone up in value by a factor of 100 or more.
As the total value of the Banter Bags now exceeds $500,000, a golden opportunity is created for the community. Once the Youtube channel surpasses 250,000 subscribers, ten community members will earn a Banter Bag with the corresponding spoils. The only requirement to be eligible is to subscribe to Crypto Banter on YouTube and follow the Twitter account. Community members can amplify their chances by following @cryptomanran and @sheldon_sniper on Twitter, by liking/commenting on tweets, and engaging with the two daily streams.
The Crypto Banter team adds:
“It started off as a fun idea of giving $10000 to our community, and as we started to invest, we realized that the community loved the idea of investments in pre-market allocations that we previously off-limits for the average investor. With this in mind, we went all in using our influence to reward our community. It was supposed to be a cool $10,000 giveaway to reward the community, and it has landed up becoming an opportunity to change lives. The channel has exploded since we launched this initiative. We’re up by over 100% on every metric, we gained over 100k subscribers and got over 5m views in the last 28 days. More than that, our community has engaged more. They love the idea that we are giving back to them and that we may at any point change another life.”
Five winners have been randomly selected so far, all of which have an amazing story to share. One of the winners, who goes by the name of Irfan, lost his job and was struggling financially. With a pregnant wife expected to give birth in two months, being announced the winner of a Banter Bag triggered a life-changing event for Irfan. Anyone can go through a similar experience once the remaining Bags are given away to community members.
We also announced that one of the bags will be given to a charity and we are currently looking for a viable option.
About Crypto Banter
CRYPTO BANTER was founded by CNBC CRYPTO TRADER host Ran Neuner and is a LIVE STREAMING CRYPTO STATION. We bring you live streaming coverage of the global Crypto markets and give you a chance to call in, break the news, and banter with our guests and hosts. CRYPTO BANTER was created to bring the banter from Crypto Twitter and Telegram to a moderated, curated AV streaming medium. Think of its as a mix of CNBC, JOE ROGAN, and Talk radio for Crypto!
Follow Crypto Banter on YouTube
Follow Crypto Banter on Twitter
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