Positivity blazing through a bear market: Blockchain Economy Istanbul 2022

July 30, 2022 Coin Telegraph

The Blockchain Economy Istanbul 2022 summit made one thing clear: The positivity of the crypto ecosystem remains unfazed by the turbulent market shakeouts.

Held at Hilton Bomonti, a fancy hotel next to a renovated and repurposed beer factory in Istanbul, the fourth iteration of the Blockchain Economy Summit 2022 (BE2022) proved to be a significant step-up compared to its pre-pandemic predecessors.

The previous summit, BE2020, was held at the WOW Convention Center two years back. In addition to being situated in a harder-to-reach part of Istanbul, the summit coincided with the COVID-19 outbreak, further impacting the overall attendance. Since the sole purpose of that venue was organizing large-scale events, the crypto community from two years prior was just not big enough to fill the space. As a direct result of the aforementioned factors, the BE2020 felt like a two-day trip to a ghost town.

Pre-show pictures: Great music and performances at @BEconomy_HQ.

Also, nice shirt @ErhanKahraman; We wonder where you got it from . (Cough, https://t.co/OmCXzstsi5 )#BEinstanbul2022 pic.twitter.com/hZABaJhfso
— Cointelegraph (@Cointelegraph) July 27, 2022

Attendees of Blockchain Economy Istanbul 2022 described the summit as dense, vivid and full of energy, drawing a stark contrast to the BE2020 in almost every aspect. It was also the first international crypto and blockchain event held in the region ever since Turkey revoked travel ban restrictions. As a result, the crypto community members — from Western and Eastern countries — could join in on the celebration.

The event roster had a good balance between the local companies and global crypto players. While big shots like Binance, Huobi or FTX were visibly absent from the event, logos of major companies like KuCoin, Gate.io, Bitget, Bitmex and Uphold were filling the main hall. Despite its recent troubles, Gari Network donned the main sponsor badge for the whole event.

For two days, the main hall never saw a dull moment: People were there mainly for networking purposes after two years filled with lockdowns and travel bans —and it’s hard to say they missed much by not attending sessions at the main conference stage.

*The Cointelegraph ground team enjoying a special goat milk-based Turkish ice cream called "Maraş dondurması."*

Sure, some exciting names like MicroStrategy’s Michael Saylor (although he joined via video call) or Davinci Jeremie, the “Please Just Buy One Bitcoin (BTC)” guy, were on the keynote schedule. But, unfortunately, the program saw greater participation of more local or regional speakers than necessary for an international event of this scale — and the supercooling in the conference room didn’t help either.

People got chilled, lost interest in the simultaneous translation, and headed back to the main area where a giant-sized samurai dog statue from the blockchain-based battle royale game Katana Inu welcomed them in an intimidating way. The best part? Most keynote speakers made themselves available for a little chat in the main hall after their stage performances.

*KuCoin Labs head Lou Yu explaining latest trends in Web3 development*

Cointelegraph reached out to several keynote speakers for some quick commentary and in-depth conversations, including KuCoin Labs head Lou Yu and AAX exchange exec Ben Caselin.

The BE2022 event was most beneficial for the young and talented developers of the community, of which Turkey houses plenty. During the event, Ali Dursun was able to pitch his blockchain gaming ecosystem Ratic to an array of global exchanges and venture capitals. Aybars Dorman introduced Metavest, a fresh take on decentralized finance (DeFi), to the participants, and Yotta21 founder Yunus Cebeci made important industry contacts at the smoking area.

*Zignaly co-founder Abdul Rafay Gadit explaining their project to Cointelegraph business development executive Anton Kabatov and editor Erhan Kahraman*

Two things were clear: First, the COVID-19 pandemic could not slow down the crypto ecosystem’s growth. For many participants, Blockchain Economy Istanbul 2022 was their first networking experience with the rest of the industry, and they thrived in making the most of it. And second, no matter how bearish a crypto market gets, the price fluctuations can’t shake down the positivity of the crypto ecosystem.

Considering everything that transpired during the event, the Blockchain Economy Istanbul 2022 summit solidified that no matter the market conditions, the crypto ecosystem is ready to invest time, money and energy to stay positive.

The UK ‘Bitcoin Adventure’ shows BTC is a family affair

July 4, 2022 Coin Telegraph

bitcoin meetup

A family-friendly day out in South West U.K. got the kids, adults and grandparents on their feet, learning about magic internet money and dancing to Bitcoin tunes.

Bitcoin (BTC) is for everyone: toddlers, kids, hard rockers and even racing pigs. At the "Bitcoin Adventure" held in Avon Valley, near Bristol, Bitcoiners and hobbyists shared their knowledge, quips and personal journeys down the Bitcoin rabbit hole despite the predictably wet United Kingdom weather. Better still, Bitcoin's "toxic maximalism" was MIA.

pic.twitter.com/7IOtpYuSDh
— The Bitcoin Adventure (@TheBTCAdventure) July 3, 2022

A world-first for a Bitcoin meetup, the “Adventure” took place at a wildlife park. So while some of the U.K.’s household name Bitcoiners headlined the main stage, the 250 attendees who bought tickets, (payment in BTC, naturally) could also play with the park’s furry Bitcoiner mascots: from petting goats to cuddling rabbits to spectating pig racing.

The day's adventure laid out. Source: Cointelegraph

Organizer DB told Cointelegraph that the “Aim was to create a family-friendly Bitcoin event to bring people together from across the U.K., to share ideas and learn in a relaxed, family environment.”

“Although confident it could be a success, this was stepping into the unknown in many ways. However, the positive feedback from all involved has been incredible and the event exceeded our expectations.”

From Zoomers to Boomers–and with a gender balance that most Bitcoin meetups can only aspire to–the Bitcoin Adventure was a grassroots display to compliment the decentralized movement. There were zero corporate sponsors, ‘shadowy supercoders’ or bad actors using Bitcoin to bewilder the banks, just “people giving up their time to educate others."

In fact, the slipperiest customers were probably the mob of mischievous meerkats:

We're ready to go...#Bitcoin accepted here. Thanks to @CoinCorner and @CoinCornerDanny . Fun for all the family #TheBitcoinAdventure! pic.twitter.com/ay8BPw02Ul
— The Bitcoin Adventure (@TheBTCAdventure) July 2, 2022

For some punters, the Bitcoin Adventure was a day to lose their Lightning Network virginity. Bars accepted Bitcoin over the lightning network using CoinCorner point of sale (PoS) devices–of Bitcoin #LightningLunch fame–while QR code stickers with ‘free sats here’ were hidden around the wildlife park. Plus, Bitcoin stickers, novelty socks and even cufflinks could be bagged for a few Satoshis.

Be like @SophieNakamoto.
Buy me pints with #bitcoin over the #lightningnetwork pic.twitter.com/G2Wouom7zD
— Joe Hall (@JoeNakamoto) July 2, 2022

Ben Arc of LNBits, a self-proclaimed Bitcoin FOSS (free open sourced software) hobbyist, delivered a stimulating presentation on open source tools. He could be found tinkering away on LN hardware devices and QR code readers, on hand to answer questions no matter how dippy or detailed.

The day's talks ranged from lessons on multi-signature wallets, thanks to Neil Woodfine of Unchained Capital; the risks and rewards of Bitcoin mining from analyst and miner, Jason Deane; and popular podcaster Daniel Prince and Nathan Day topped off proceedings with a discussion about Bitcoin, homeschooling and travel. Their kids then 'stormed the stage' to answer questions.

"World schooling for Bitcoiners" talk. Source: Cointelegraph

Jordan Walker, CEO of the Bitcoin Collective (the U.K.’s first Bitcoin conference) and event MC, the UK Bitcoin Master mingled among those new to the digital, decentralized currency. And while the over 18s congregated at the bar to pay for pints using the Lightning Network and discuss the day’s finer details, kids had a wealth of Bitcoin-themed activities to keep them occupied and entertained. Organizer DB explains:

“Learning through play for children is important and Bitcoin Ballers, Zebedee, Gamertron and Robotechy gave children the opportunity to have fun and learn about Bitcoin.”

Coach Carbon, the Bitcoin football coach behind Bitcoin Ballers was helping toddlers to teenagers “get off zero” with an inflatable football goal. Elsewhere, Bitcoin gaming and even “explaining Bitcoin using playdoh” featured as child-friendly Bitcoin presentations. Education for kids is a growing subset of Bitcoin learning, as more and more authors and educators create content with their offspring in mind.

The team from Bitcoin Racing showcased one of the fastest-moving advertisements for Bitcoin and El Salvador. Bitcoin 'minors' took to the driving seat of the Citroen C1 adorned with an El Salvador flag that will be racing around the U.K. in the coming months:

The #bitcoin racing team were at the @TheBTCAdventure at @AvonValleyPark

Flying the flag for #bitcoin and #ElSalvador !!@bitcoin_racing @jessicabukele @VanessInteriano pic.twitter.com/C37CeOxm8c
— Daniel Prince (@PrinceySOV) July 3, 2022

Arguably the Adventure's highlight and the hidden gem was Roger 9000, a vivacious Bitcoin musician. The one-man band rounded off the day by rocking out to Satoshi-inspired songs. Lyrics included "Bitcoin is the love machine," and the song "Alle Canada," is a battle cry for the Bitcoin-backed trucker protests in North America.

As the sun set on the inaugural event, many attendees pitched tents in the campgrounds. For organizer DB, the plan is to "let the dust settle, sit down in the coming weeks and run through the day–what we could have done differently and what we could improve on."

“We will then put the wheels in motion for The Bitcoin Adventure 2023".

Let's hope that by next summer's Bitcoin Adventure, there will be no more signs of a bear meerkat.

Ashanti aims to bring women to Web3, says “owning is important” at NFT music meetup

July 1, 2022 Coin Telegraph

Art

R&B legend Ashanti explains how music NFTs have allowed her to own her intellectual property during a panel discussion at her first-ever crypto event.

The billion-dollar music industry is undergoing a major transition as artists begin to understand the potential of owning their work through nonfungible tokens (NFTs). Ashanti, the multi-platinum-selling singer, actress and co-founder of EQ Exchange — a women-led Web3 platform — recently shed light on this during a Cotton Candy Records meetup that took place on June 20 in New York.

Speaking on a panel alongside Janice Taylor, founder and CEO of EQ Exchange, Ashanti went into detail about how important ownership is for creators today. Drawing from personal experience, Ashanti said:

“It is incredibly important to continue the narrative that owning is the way to go. Who wants to wake up and pour their heart, blood, sweat and tears into a project and have someone else next to you reap all the benefits while you do all the work? That was the way my contract was set up years ago, but now I have the right 20 years later to go in and re-record and own new masters of my first album.”

*Kayley Hamilton moderated a panel with Ashanti and CEO of EQ Exchange, Janice Taylor, at a music NFT meetup presented by Cotton Candy Records. Photo Credit: @darnopolis*

Why owning is important for creators

Ashanti told Cointelegraph that the process of creating an album prior to Web3 and the launch of music NFTs was very “disheartening,” noting that an artist would sign a record deal and create an album that would then sell for about $15. “Out of that amount, an artist would only receive about $0.38, which was on the high-end,” the R&B legend said. Once Ashanti began to realize that this was a common process, she started looking into alternative ways to own her intellectual property.

On March 25, 2022, almost 20 years after her debut album was released, Ashanti formed a partnership with EQ Exchange, making her the first Black female artist to co-found a Web3 company. Following this, Ashanti released an NFT collection with EQ Exchange on April 6, 2022, which launched on the artist’s 20-year anniversary of her first album titled Ashanti. According to Taylor, Ashanti sold her first five NFTs in minutes. While impressive, Ashanti noted that the underlying message behind music NFTs is “that owning your work is so important.”

In addition to ownership, Ashanti explained that her NFT collection is meant to benefit her fans in a number of ways. “Fans will receive exclusive rights to hear my music first, meaning they get to own the music as well. They will also receive percentages of royalties for new records, along with tickets to shows, vacations and access to limited merchandise drops,” she said.

Women in Web3 aim to inspire

Ashanti further remarked that she aims for her NFT collection and role in the Web3 space to inspire greater female involvement. This is incredibly important, as the media company EWG Unlimited and The Female Quotient recently found that men continue to dominate Web3. According to the report, only 16% of creators in Web3 identify as women, which has led to inherent male bias. This in mind, Ashanti said:

“I never thought in a million years I’d be in the Web3 space. But, diving into this sector as an independent artist was necessary. The Cotton Candy Records meetup is the first crypto-focused event I’ve spoken at, and I hope to do more of these to continue to inspire other female creators and women of color to become involved.”

*Ashanti with CEO of EQ Exchange, Janice Taylor, at a music NFT meetup presented by Cotton Candy Records. Photo Credit: @darnopolis*

Taylor added that education and events are critical for bringing more women into the Web3 space, noting that she was initially told to hire a crypto-native male co-founder for EQ Exchange in order to appear “legitimate.” “Some of my first investors told me this because they thought it would help me appear as if I understood the crypto industry better, even though I am a three-time tech founder.”

Fortunately, Taylor ignored this comment and brought Ashanti on as EQ Exchnage’s co-founder. “I specifically wanted a woman and a woman of color to be my partner because that’s the message that needs to be heard here,” she said.

Recent: Integrating blockchain-based digital IDs into daily life

Echoing Taylor, Sarah Omolewu, founder of Access Abu Dhabi — a program designed to encourage women and minorities to enter UAE’s business ecosystem — told Cointelegraph that joining the crypto community offers an opportunity for women to build new career paths regardless of their age or financial status. She said:

“Women in America weren’t able to receive credit from a bank until 1974 when the Equal Credit Act was passed. Fast forward to 2022 and less than 2% of venture funding goes to women-led businesses. Web3 could become the equalizer that changes this narrative by getting women involved at the very beginning of blockchain technology, a space where currently 93–95% of all cryptocurrency users are male.”

Although women still make up the minority of Web3 users, Omolewu explained that Access Abu Dhabi recently partnered with Unstoppable Domains — a platform that grants ownership of NFT domains — to provide all nationalities of women living in Abu Dhabi free blockchain domains. “Partnering with Unstoppable Domains to provide for the first time ever a gifting of free blockchain domains to all women in the country is the first step in our longer-term goal of disrupting this space for women in the region,” she remarked.

*Access Abu Dhabi founder Sarah Omolewu moderates a panel session with supermodel turned businesswoman Tyra Banks and* *Abdulla Abdul Aziz Al Shamsi, Acting Director-General of* *the Abu Dhabi Investment Office. Source:* *Sarah Omolewu*

Adding context to this, Sandy Carter, senior vice president of Unstoppable Domains, told Cointelegraph that Unstoppable Domains represents a user’s digital identity, making it easy for non-crypto natives to enter Web3. “For example, users don’t have to enter a complicated wallet address to send and receive crypto transactions, as they can just use their NFT domain.”

According to the Unstoppable Domains website, Coinbase Wallet, ShapeShift and other crypto wallets are supported applications. “We have over 300 partnerships. In fact, Paris Hilton recently changed her Twitter handle to ParisHilton.NFT,” Carter added.

*Paris Hilton's twitter handle. Source: Twitter*

Now is the time for women to enter Web3

Even with the benefits of music NFTs and encouragement from influencers, women may still find it challenging, or intimidating, to enter the Web3 sector. However, Carter advised that women should get started sooner rather than later, pointing out that the space is still very early. “I like to say that we are in a dial-up phase of Web3 — we are recrafting what the internet is and we need diverse voices now.”

Recent: How to start a career in crypto? A beginner’s guide for 2022

In terms of financial inclusion, Taylor added that EQ Exchange is helping provide a sustainable financial system that allows artists — particularly women — to thrive. Although the platform was established in March of this year, Taylor shared that other women creators are already planning to launch NFT collections. For example, Monifah, the recording artist, actress and producer, told Cointelegraph that she will be launching an NFT collection with EQ Exchange in July 2023, to mark the 25-year anniversary of her single Touch It.

Monifah also mentioned that she believes music NFTs are the future of the industry, noting that artists should do their own research and get involved now.

“I think it would be crazy if I did something in a traditional way at this point. I would tell artists to really focus more on Web3 and figuring out how to command this space,” she said. Yet Monifah also shared that she still finds Web3 to be challenging. “I am still navigating the Web3 space, but it’s exciting. I want to help introduce the younger generation to Web3.”

Crypto knocking on the WEF’s door: The view from Davos

June 1, 2022 Coin Telegraph

bitcoin regulation

A look back on the week that was the World Economic Forum and how crypto might have stolen the show.

The spectacle that is the World Economic Forum (WEF) came to a close in Davos, Switzerland on Friday, May 27. Nearly 3,000 people from over 110 countries took planes, trains and helicopters to the highest town in Europe to lobby leaders and push and query the WEF agenda.

And, while the war in Ukraine took center stage during the WEF, climate change played the hero and economic recovery was the damsel in distress. Meanwhile, blockchain and cryptocurrency featured as — at the very least — a supporting role.

As Soramitsu CEO Makoto Takemiya described during a Global Blockchain Business Council (GBBC) panel taking place on the WEF promenade, the industry bigwigs and “financial elites” amassed in Davos. The WEF 2022 had “barbarians” at the gate in the form of crypto and blockchain enthusiasts.

This was the first in-person WEF since the onset of the COVID-19 pandemic and the presence of blockchain companies many participants was large. All down the Davos boulevard, shops and cafes temporarily transformed into showrooms for corporations and big business while the crypto companies stuck out.

Alex Fazel, chief partnership officer at Swissborg told Cointelegraph that “back at WEF 2018, there was only one major pro-crypto event and numerous other talks were stressing the dark sides of crypto.”

In 2022, world leaders and monetary disruptors rubbed shoulders at the Crypto House, the Blockchain Hub, Polkadot Hub, LAN Space, the NFT Shop, GBBC Central and the Filecoin Foundation — which had converted a former Catholic church into a crypto conference hall. Conspicuous at best, crypto was hard to miss.

*Map of the Davos blockchain locations for the WEF.*

Even the WEF itself now features a dedicated website for blockchain technology. Plus, bankers openly discussed digital currencies during a panel on the WEF main stage. In a video interview with Cointelegraph in Davos, Brad Garlinghouse, CEO of Ripple Labs, explained that while crypto used to be a dirty word, the trendline is now “positive.” Garlinghouse told Cointelegraph that the “presence of crypto is dramatically different.

Swissborg’s Fazel summed up the bubbling crypto sentiment as newbies and nocoiners (those yet to invest in crypto), took their first steps into the space. “There was more attendance at the Web3 pavillions than Web2 like Meta:”

“During WEF 2022, on top of dozens of crypto conferences, events and parties, the crypto space occupied between 10–20% of the entire promenade across the private sector, excluding the governmental pavillions.”

Ultimately, when the CEO of MasterCard features on a blockchain panel perched next to Bank for International Settlements researchers and crypto enthusiasts to openly debate the demise of SWIFT, as well as the dawn of central bank digital currencies (CBDCs), it’s clear that digital currencies have made the mainstream.

For Thierry Aryz Ruiz, CEO of AgAu, blockchain as a focal point of the WEF goes without saying: The issue revolves around how the world’s elite manages the innovation. Ruiz told Cointelegraph, “with CBDCs and increasing regulation, we may see darker applications of Blockchain as a tool of control.”

Daniela Barbosa, general manager at Hyperledger and a WEF veteran, agrees with Ruiz. The WEF is certainly smitten with blockchain technology. However, she also posits that we shouldn’t be “scared” of CBDCs. Barbosa decodes the sentiment in an upcoming Cointelegraph Youtube interview. Subscribe here.

*Daniela Borbosa, general manager of Hyperledger and Cointelegraph.*

Cryptocurrencies such as Bitcoin (BTC) are hatched out of a desire to separate money from the state — not embolden fiat money. Yet, the WEF, blockchain and crypto are increasingly entangled. Ruiz expanded on the point: “Great minds bump into each other, genuinely with good intentions” at the WEF. In view of looming regulatory concerns, however, he shares “they can also pave the road to hell if left unchallenged.” Ruiz signals a note of caution:

“The pandemic has evidenced that too often, people sacrifice their freedom in exchange for a false sense of security. We shall never forget that such a trade likely results in the loss of both.”

On regulation, during a decentralized finance (DeFi) panel discussion moderated by Cointelegraph, Sam Yim, 1inch network adviser and former banker, explained that regulation is a speeding train. “Either you climb onboard or you step out of the way.” For good or bad, regulation of the crypto space is coming.

On the upside, regulation may reassure the curious and the coy about the rigidity and longevity of the space. Indeed, for some WEF attendees, it was the first time they interacted with crypto. At the Cointelegraph farewell party held in partnership with Polygon, Davos coin stole the show. Partygoers could spend Davos coins at the bar, enjoying a “seamless checkout experience,” thanks to a pilot project pioneered by Ammer technologies.

Whether regulation impedes or stimulates growth, the theme that Bitcoin and crypto is for everyone permeated through. In an all-women panel hosted by Cointelegraph editor-in-cheift Kristina Lucrezia Cornèr, questions such as “Bitcoin creator Satoshi Nakamoto, who remains pseudonymous, could very well be a woman” were raised.

For some WEF attendees, proximity to power and to the regulators attending the WEF could gain the upper hand. Nas Daily, Youtuber, social media influencer and a recent crypto convert, told Cointelegraph that he wanted to be at the WEF to be close to regulators.

“The true influencers are here. They're not on your Instagram newsfeed,” he told Cointelegraph. He shared his Bitcoin investment strategy with Cointelegraph which began in March — taking his Youtube channel along for the ride.

In all, whether crypto is the “barbarians” at the gate, a future tool for the WEF’s disposal or a means for economic empowerment for all, the view from Davos is that crypto is here to stay. When the WEF returns to its usual wintry service in January 2023, regulation will likely be the burning issue. The question is, what face will it wear?

‘Regulations are in place to help crypto businesses understand operations,’ says The Bahamas PM Philip Davis

May 6, 2022 Coin Telegraph

CBDC

The Bahamas Prime Minister Philip Davis shared his plans to welcome crypto businesses to the region during SALT’s Crypto Bahamas.

The Bahamas Prime Minister Philip Davis told Cointelegraph that the region has a regulatory regime in place that will enable crypto businesses to operate within its jurisdiction. During an interview at SALT’s Crypto Bahamas conference, Davis shared that The Bahamas recently published a white paper framework that will allow crypto businesses to “grow and prosper,” while letting companies understand the region’s expectations. He added:

“The policy also takes into account the balance between concerns people have about cryptocurrency and the risks that come along with it. [The] policy is to protect consumers, [the] integrity of the space and at [the] same time, ensure that we minimize all risks that may be associated with these businesses.”

Davis pointed out that crypto innovation is already well underway in The Bahamas with the establishment of FTX, Sam Bankman-Fried’s cryptocurrency exchange, which moved its headquarters from Hong Kong to The Bahamas in September 2021. Its anticipated that more crypto companies will do the same.

Anthony Scaramucci, the founder of the hedge fund SkyBridge Capital, told Cointelegraph that he expects the Bahamas to “become a crypto-centric region that will be known in five years as one of the most forward-thinking and economic visionary countries.”

In regards to this, Davis further commented that he hopes the Sand Dollar — the digital iteration of the Bahamian Dollar and a fully operational retail central bank Grayscale GVTC and ETHE digital currency — will be leveraged internationally.

Check out the full interview on our YouTube channel, and don’t forget to subscribe!

Bitcoin 2022 Miami: Conference recap and major themes

April 14, 2022 Coin Telegraph

Coin Telegraph

The four-day event brought together developers, business leaders, policymakers and builders of the Bitcoin economy.

Bitcoin (BTC) has come a long way since an obscure and esoteric white paper written by Satoshi Nakamoto was first published 13 years ago. The Bitcoin 2022 conference, hosted by Bitcoin Magazine and sponsored by Cash App, was perhaps the largest single event for the BTC community as 30,000 attendees and exhibitors descended on Miami Beach, according to the Miami Herald.

Cointelegraph sent a contingency of journalists to experience the bullishness of Bitcoin 2022, a sentiment that was physically represented by a laser-eyed bull statue reminiscent of the Charging Bull on Wall Street in New York City. Along the way, they got to interview billionaires, hedge fund managers, business leaders and analysts about all things Bitcoin. Here were some of the notable themes from the event.

*The Miami Bull stood outside the Miami Beach Convention Center during the conference.*

Inflation

Bitcoin’s role as an inflation hedge is being put to the test as consumer prices continue to rise at the fastest clip in over four decades. But according to Morgan Creek Capital founder Mark Yusko, the problem isn’t inflation per se — it’s currency devaluation.

“This isn’t inflation. This is currency devaluation,” Yusko told Cointelegraph business editor Sam Bourgi in an exclusive interview, referring to the outcome of Federal Reserve policy. Although one BTC will always equal one BTC, its value in dollar terms may become less relevant over time as monetary policy continues to erode consumers’ and investors’ purchasing power.

Noah Perlman, chief operating officer of Gemini, echoed Yusko's sentiment and cited Gemini’s 2022 Global State of Crypto report. Perlman told Cointelegraph that citizens in countries with heavily devalued currencies “need to have crypto,” while in the developed world, it’s often just “nice to have.”

Institutional adoption

After spending years talking about it, the digital asset industry has seen a tidal wave of institutional adoption over the past 12 months. This is not only reflected in the large capital inflows into institutional crypto funds and the rise of Bitcoin exchange-traded funds, but also in the green lighting of crypto investments from within legacy finance institutions.

“Mr. Wonderful” Kevin O’Leary explained last November that his cautious approach to crypto investing was due to his own compliance department telling him to back off. But that appears to have changed. Now, legacy finance is looking for exposure to digital assets, and not just via crypto proxy stocks.

In an interview with Cointelegraph at Bitcoin 2022, O’Leary gave the example of how a sovereign pension fund would approach crypto investing. In terms of limitations, “it’s completely regulatory,” he said, meaning that once such hurdles are cleared, it’s off to the races.

Bitcoin mining and sustainability

The topics of many panels related to sustainability and environmental, social and governance (ESG) standards when it came to Bitcoin mining. Cointelegraph spoke to Greg Beard, chief executive officer of Stronghold Digital Mining, a power plant that uses coal waste to generate electricity that powers Bitcoin mining supercomputers. He believes that Bitcoin’s “massive benefits for society dwarf any emissions concerns” and that powering the “largest decentralized computing network in the world” is not a risky endeavor.

When asked about renewable energy sources powering Bitcoin miners, he said that although wind and solar power grids are inevitably becoming widespread, they are the least reliable sources of energy and that he prefers nuclear energy. He added that in the United States, Bitcoin mining could be considered a spinning reserve, essentially a backup battery, that saves the country’s power grid during shortages while keeping prices down.

Macroeconomic analysis indicates BTC price will go up

While many within the crypto community have tempered their expectations for Bitcoin’s price, the long-term view remains overwhelmingly bullish. Despite all that’s going on in the world, the Bitcoin network continues to produce block after block. And the newly mined Bitcoin is being gobbled up by whales, such as MicroStrategy, Luna Foundation Guard, PayPal and others.

Bloomberg’s senior commodity strategist Mike McGlone explained to Cointelegraph that Bitcoin’s perfectly inelastic supply means prices are going higher in the future — assuming demand continues to grow. While McGlone didn’t rule out short-term price declines, especially in light of the uncertainty surrounding risk assets, he explained that Bitcoin’s volatility is declining relative to stocks and commodities.

Lower correlations with traditional risk-on assets, declining volatility over time and rapidly advancing technology are leading to wider mainstream adoption of crypto as an asset class, McGlone said.

Other insights

2022 is the second year that the Bitcoin conference has taken place in Miami, relocating from its original home in Los Angeles in 2021. This move has only further cemented Miami's transformation into a cryptocurrency hub, adding to its more common designation as the financial hub for Latin America.

As such, Cointelegraph made sure to talk to Sebastian Serrano, the chief operating officer of Ripio, one of the fastest growing crypto companies in Latin America to offer its own wallet, an exchange and an over-the-counter desk. According to Serrano, who admitted to once being a Bitcoin Maximalist, the Bitcoin community may be "too conservative" when it comes to innovation. However, he is a firm believer in Bitcoin's potential to become a standard in the global financial and corporate economy. Noting differences between his consumers in different South American countries, he stated that Brazil is currently leading crypto ownership and adoption in LatAm.

With additional reporting by Sam Bourgi.

Paris Blockchain Week, day 1: Latest updates from the Cointelegraph team on the ground

April 13, 2022 Coin Telegraph

Coin Telegraph

The first day of the year's biggest blockchain event so far will see CZ, Nicolas Cary, Ken Timsit and many other significant figures on the stage.

Paris Blockchain Week Summit (PBWS), a flagship European blockchain conference hosted at Palais Brongniart in Paris, started on Wednesday with an all-star cast. Fresh after announcing its French version, Cointelegraph has set up a team for the event to present the latest updates for the event in a real-time fashion.

The first day of event will see significant names in the crypto and blockchain ecosystem to speak about the crucial topics for the ecosystem. The Cointelegraph ground team will present last-minute updates in one easy-to-read article with time codes.

Don't forget to check this article regularly to get notified about the most recent announcements from the event.

All time codes are in the UTC time zone

7:25- Talking about how he manages such a large consortium of crypto platforms, CZ said: "The key secret is they should not do very much."

Binance's growth depends on the growth of the ecosystem and "This is why we don’t see other crypto platforms as competitors and rather as their peers."

7:22- Binance plans to offer [customer] support in all 31 languages that it supports in the near future.

7:18- CZ explains how regulations have evolved over the years and how the approach of regulators has changed significantly.

*Binance CEO CZ on the stage at the PBWS*

"We have seen a great shift of attitude towards crypto over the past year until last year regulators were talking in a negative way while many regulators today approach us with a positive note."

7:15 - Binance is now available in over 70 countries out of the top 100. Binance Labs, the investment arm of the exchange, has invested more than $100 million in about 100 crypto projects whose combined liquid market cap of $7 billion, seeing a 66X increase in three years.

07:06 - Binance CEO Changpeng Zhao is on the stage. Started his speech with a basic question: "How many of you hold Bitcoin (BTC) or crypto?"

Grammys 2022: NFTs hot topic of discussion among musicians and industry experts

April 7, 2022 Coin Telegraph

Artists

Music industry experts and leading musicians discussed and showcased NFTs at the 2022 Grammys.

The billion-dollar music industry has shown recent interest in nonfungible tokens (NFTs) as musicians everywhere are beginning to understand the power of moving away from centralized business models.

This concept is currently being demonstrated by early innovators like the popular rapper Snoop Dogg, who recently acquired Death Row Records with plans to transform the company into the first NFT recording label in the Metaverse. Country music icon Dolly Parton also recently launched her first NFT collection dubbed “Dollyverse,” which consists of tokenized artwork and music as part of a promo for her album Run, Rose, Run.

NFTs: A topic of discussion during the 2022 Grammy Awards

While notable, the intersection of music and NFTs was brought to fruition during the 64th Annual Grammy Awards, which took place on April 3, 2022, at the MGM Grand Hotel and Casino in Las Vegas. The Grammys may very well be one of the most important events for the United States music industry, as a series of awards presented by the Recording Academy are given to recognize outstanding achievements within the music sector.

Given the rise of NFTs, nonfungible tokens were hot topics of discussion during the 2022 Grammy Awards. Trevor Noah, comedian and host of the 2022 Grammy Awards, joked mid-way through the event, “You know it’s been rough when your favorite artists go from trying to sell you music to pictures of digital monkeys.” The remark was referencing the Bored Ape Yacht Club NFT collection. But, NFTs proved to be more than just a chuckle during the Grammys this year, as industry experts expressed interest in nonfungible token use cases.

Cointelegraph made it to the red carpet at the #Grammys!@Rachelwolf00 and @BY_DeFi are excited to talk #NFTs with all the artists.

Coverage coming soon pic.twitter.com/AG7lzsGZC3
— Cointelegraph (@Cointelegraph) April 3, 2022

For example, Tia Smith, Grammy governor and co-chair of the Music Video Committee, DC Chapter and the owner/executive producer and director of talentedSOL productions, told Cointelegraph that she is interested in learning more about NFTs and what they mean for the creative community as a whole:

“NFTs seem like a very viable form of expression and commerce. There have been so many different industries adopting NFTs, and I’m very interested in creating content and forming partnerships to create NFT artwork as an extension of music, television and film.”

*Tia Smith (center) with Cointelegraph senior reporter Rachel Wolfson (left) at The Grammys 2022. Source: Tia Smith*

Smith added that her wheelhouse is film and television production, noting that this particular industry has undergone a number of transitions over the years. “We’ve seen the inception of film, video, digital, high-definition and so forth. But, there are other ways music and aspects of art are thriving, so I’m very much interested in the evolution of film and NFTs,” she remarked.

While the NFT sector is still an emerging concept for music industry experts, Smith shared that she can understand how nonfungible tokens could soon be incorporated into major live shows such as the Grammy Awards moving forward. “We are living in the age of intellectual property and this is just another extension of this,” she said.

It’s also notable that a few mainstream musicians decided to launch NFT collections during the Grammys this year. For example, the American rapper and record producer Gerald Earl Gillum, also known by his stage name “G-Eazy,” told Cointelegraph that he was extremely excited and honored to launch his first NFT collection at the Grammys this year. Known as “The Geralds,” this collection was created by the graphic designer Dzanar and launched on the NFT music platform built on Tezos’ OneOf NFT platform. G-Eazy explained that this drop features 10 unique 3D-NFT avatars that represent his diverse personality:

“Anyone who knows me would say I’m an eclectic person with different interests and hobbies. So there are different avatars in this collection to represent that. For example, there is the ‘snowboarded G’ who loves the mountains and there’s a black leather jacket G with slicked-back hair who gets on stage to perform.”

While “The Geralds'' collection is certainly unique, it’s important to point out that G-Eazy may be the first artist to showcase an NFT collection at The Grammys. G-Eazy elaborated that this was important for him, given the pace of innovation today. “You have to pay attention to what’s going on, and this is where the world is now,” he commented. G-Eazy added that he has always been a big believer in art not being limited to one medium, noting that both of his parents are visual art professors. “I grew up appreciating many different forms of art and I think this is all cross-compatible with various industries.”

In addition to G-Eazy’s NFT collection being launched during the 2022 Grammys, Colin Fitzpatrick, CEO of Animal Concerts — a platform that helps artists enter Web3 — told Cointelegraph that the Avila Brothers presented and unveiled their new hit track at the Resorts World Hotel in Las Vegas for the first time. “The track features Billy Ray Cyrus and Snoop Dogg and is called ‘A Hardworking Man.’ Animal Concerts are executive producers,” said Fitzpatrick. According to Fitzpatrick, an upcoming NFT launch will soon follow the newly released track.

NFTs hit the red carpet this year, but why?

While it’s noteworthy that NFTs were a topic of discussion at The Grammys this year, it’s important to point out that early NFT use cases came into development in 2017. As such, some may be wondering why it took over five years for nonfungible tokens to enter the spotlight.

Josh Katz, CEO of Yellow Heart — a marketplace for music NFTs and live-event NFT ticketing — told Cointelegraph that one year ago, no one in the music industry really knew what nonfungible tokens were. Yet, Katz believed this changed when the American rock band, Kings of Leon, released one of the industry’s first NFT albums with Yellow Heart in March 2021. “Following this album, everyone in the music and entertainment industry started paying attention to NFTs. The more creative artists jumped in first, then everyone else started to poke around,” said Katz.

Fast forward almost a year later — Katz believes that the music industry is now seeing mainstream adoption of NFTs given the potential around nonfungible tokens:

“For years, we’ve had multiple formats of music content, whether this has been CDs, tapes or streaming platforms. But, now, fans want to be a part of an experience. They want to gain access to perks and utility, so NFT platforms are now releasing NFT music that a certain amount of fans will buy from innovative artists. This will soon become another revenue stream which many people in the music industry are now realizing.”

To put this in perspective, Katz explained that traditionally, recording artists and musicians receive micro-payments from streaming services like Spotify that then go to a third-party record label, publisher and others. “All of these entities take a percentage of the payment and the rest trickles back to the artist. We call this the 90/10 rule, where an artist will take home only 10% of their earnings and everyone else gets the other 90%.” With NFT albums, however, Katz noted that an artist can sell a lot less and keep 90% of their earnings or more. Katz added:

“The 2022 Grammys represents an inflection point where creativity is on display. NFTs are the future of the industry and the smarter artists at The Grammys are aware of this.”

Crypto companies sponsor the 2022 Grammys to further innovate

Given this, it’s also notable to point out that two crypto companies served as main sponsors during The Grammys this year. Binance, the popular cryptocurrency exchange, and OneOf, a green NFT platform working with musicians like G-Eazy, both had a major presence at the 2022 Grammys. Lin Dai, CEO and co-founder of OneOf, told Cointelegraph that he was excited to see tier-one companies in the blockchain space bringing crypto and NFTs to The Grammys:

“The Recording Academy is the most important institution for the music industry and we know they are very selective when deciding which companies to align their brand with. We are excited that more and more crypto and blockchain companies are getting involved with the biggest tent pole events in music, sports and lifestyle and we expect the trend to continue.”

*Binance logo on display at The Grammys 2022. Source: Rachel Wolfson*

A Binance spokesperson further told Cointelegraph that Binance wanted to have brand visibility through its recent partnership with the Recording Academy. “We are exploring various avenues in which we can bring Web3 technology to the music community,” the spokesperson said. While innovative from a marketing perspective, the Binance spokesperson added that moving forward, Binance will be educating the Recording Academy’s members on cryptocurrency and how blockchain can help make their business more forward thinking and financially secure.

Indeed, this appears to be the case for both musicians and businesses within the entertainment industry. For example, MGM Resorts International — the venue where The 2022 Grammys were hosted — recently announced a partnership with Yellow Heart to issue NFT tickets for its newest production, “Timeless.” The show features the dance crew, the Jabbawockeez, and will be Las Vegas’ first NFT ticketed performance.

Andrew Machado, senior vice president of digital design and business adjacencies at MGM, told Cointelegraph that NFTs for ticketing could provide value for guests. “They turn something as mundane as a concert ticket into a living breathing digital object that can change with each situation such as entering the venue for a show or after the show as a collectible.” Machado added that the creator now has a one-to-one relationship with the NFT owner, meaning they can airdrop holders new content. “For example, in the case with Jabbawockeez, NFT holders will receive food and beverage credit at MGM’s Level Up lounge,” he said.

In terms of issuing NFT tickets for a major event like The Grammys, Machado believes it’s possible, but only time will tell. “MGM Resorts sits at the intersection of entertainment and gaming and we believe NFTs can play a part there, but time will tell on consumer adoption.”

NFT LA: Attract the mainstream, focus on Web3 and use cases

April 6, 2022 Coin Telegraph

Coin Telegraph

Panelists who spoke at NFT LA shared their thoughts on Web3, innovative use cases and the future of nonfungible tokens.

Nonfungible tokens (NFTs) have generated mainstream interest over the last year. A yearly market report from NonFungible found that the total value of all NFT transactions worldwide surpassed more than $17 billion in 2021, up from $82.5 million in 2020. The report also pointed out that “NFT” was selected as Collins Dictionary’s word of the year for 2021.

Given the increasing amount of interest NFTs create, a number of events dedicated entirely to nonfungible tokens are also taking place, attracting a mix of both crypto enthusiasts and non-crypto natives. This was recently seen during NFT LA, a four-day-long conference that took place in downtown Los Angeles from March 29 to April 1, 2022. The organizers behind NFT LA told Cointelegraph that the event attracted over 3,500 people.

Web3 education and onboarding were major themes

While NFT LA featured a number of panels on different topics from over 250 speakers, there was a large focus on Web3 education and ways to onboard new users into the space. For example, Johnna Powell, global co-head of ConsenSys NFT — the NFT wing of Ethereum software developer ConsenSys — told Cointelegraph that the organization is particularly focused on enabling users to easily utilize a MetaMask wallet. Powell explained that she spoke about ways to ensure that Web3 resonates with the mainstream during her panel discussion at NFT LA:

“When people get excited about NFTs, it’s not necessarily because they are thinking of Web3 or crypto. Rather, people are thinking about collectibles like stamps or trading cards. When NFTs are purchased through our platform, we want to create an easy user journey that introduces individuals to Web3.”

Powell noted that ConsenSys NFT works with large brands and IP owners to enter the NFT space. In turn, these organizations are able to drive users to the ConsenSys NFT platform. “We then ease individuals into Web3 wallets like MetaMask,” said Powell. Once non-crypto natives become comfortable using a Web3 wallet, Powell believes that newcomers will eventually start to collect more NFTs.

Cointelegraph senior reporter Rachel Wolfson sat down with Johnna Powell, global co-head of ConsenSys NFT at NFT LA. Photo Credit: Larry Wong

Powell also explained that ConsenSys NFT is working on NFT use cases that will resonate with the mainstream. For example, she said that ConsenSys NFT recently partnered with MAC Cosmetics on its first-ever NFT collection featuring the work of the late artist and activist Keith Haring.

While Powell discussed ways to get the mainstream involved with Web3, Monica Long, general manager of RippleX — Ripple’s innovation arm — told Cointelegraph that she spoke about the evolution of Web2 to Web3 during her panel at NFT LA:

“I talked about the role big tech companies play in the Web3 world. Overall, I think moving from Web2 to Web3 won’t happen overnight. We will see a blend of centralized and decentralized finance. I also talked about OpenSea and their role to make NFTs more user friendly.”

According to Long, while NFTs are attracting mainstream interest, there are still a number of challenges that exist in terms of self-custody and user-friendly interfaces. “Web2 developers are great at ensuring user-friendly experiences, which we urgently need in the NFT space,” she remarked.

Echoing Long, Matt Mason, chief content officer at Palm NFT Studio — a technology firm that partners with artists, creatives, IP owners and entertainment companies to onboard them into Web3 — told Cointelegraph that he spoke about how to launch NFT drops at scale, noting that user experience must be seamless.

The Bat Cowl Collection NFT preview. Source: Palm NFT Studio

Palm NFT Studio recently launched an NFT project with Warner Bros. Consumer Products’ DC Comics. Known as “The Bat Cowl Collection,” the drop featured 200,000 unique 3D-rendered Batman cowl NFTs.

When launching an NFT project this large, Mason explained that both consumers and intellectual property holders need to have a user-friendly experience:

“For fans, it’s about thinking about how to ensure they have a good experience with NFTs from the start. To ensure this, we’ve created a custodial wallet inside our platform where consumers only have to click a button to get their NFTs. This provides a better experience.”

Mason added that as time progresses, consumers will become more interested in nonfungible tokens, which will eventually allow them to move assets around on the Ethereum network. “Roadmapping third-party wallet integrations are down the line for Palm NFT as we scale but, we have a large mainstream audience, so we need to make the NFT process as easy and as seamless as possible.”

Regarding intellectual property holders like DC comics, Mason explained that many of these companies require conservative approaches to NFTs centered around compliance and regulations. “We stay close to what the Securities and Exchange Commission is doing and thinking, so compliance is a major aspect for us,” said Mason. As an example, Mason shared that The Bat Cowl Collection will be the first major NFT collection with sales tax built in. Specifically speaking, Mason explained that if users in Europe purchase one of these NFTs, they will be required to pay a value-added tax (VAT), while United States users will pay a sales tax:

“We know sales tax is coming to the NFT space — by next year everyone will be doing this. If you are a brand as large as Warner Brothers, for instance, doing anything in the space dings your brand in terms of tax, compliance and regulation. Everyone in the NFT space talks about scale, but none of that will happen without regulation.”

Use cases today and in the future

While education was a major topic of discussion at NFT LA, the event also allowed for the exploration of current use cases today while providing a glimpse into the future.

Alex Salnikov, co-founder and head of product at NFT marketplace Rarible, told Cointelegraph that the NFT space is currently undergoing a massive market shift:

“The year 2020 was all about crypto art, which is still generating about the same amount of volume this year. But, now profile picture NFTs like Bored Apes and CryptoPunks are skyrocketing. PFP NFTs are responsible for 90% of volume across the NFT space.”

According to Salnikov, PFP NFTs are serving as aesthetically pleasing tickets to exclusive clubs and communities. “This is an entirely new concept,” he remarked. Salnikov added that NFTs also function as important assets in metaverse environments, acting as land, digital fashion for avatars and much more. “NFTs represent the ownership of goods in the digital universe we are building,” he remarked.

Cointelegraph senior reporter Rachel Wolfson sat down with Alex Salnikov, co-founder and head of product at Rarible at NFT LA. Photo Credit: Larry Wong

In addition to PFP NFTs, enterprise-focused NFTs are also coming to fruition. For instance, Long explained that Ripple is seeing interest in real-estate NFTs or carbon credit marketplaces that use nonfungible tokens. “Ripple has spent years working on the enterprise side, so we have operations skills to serve this area,” she mentioned.

The Enterprise Ethereum Alliance (EEA) — a member-led organization focused on enterprise Ethereum use cases — has also started to pay close attention to enterprise NFTs. Dan Burnett, executive director of the EEA, told Cointelegraph that Palm NFT Studio recently joined the EEA board, representing the first NFT-focused participant:

“We’ve definitely been paying attention to NFTs for a long time, but we’re really pleased to have experts joining the board who can help us make sure that we are providing the information background that businesses, individuals and solo entrepreneurs need in order to operate in this space. We’re not here for speculation. We’re here for real business.”

Dan Heyman, Palm NFT Studio CEO and EEA board member, further told Cointelegraph that he has recently been seeing every enterprise with a consumer presence have discussions around NFTs. “Even the companies that haven’t done anything with NFTs yet are talking about what value they can bring.” Although this may be, Heyman pointed out that the efforts in the NFT space from large IPs have only gone so far, yet he referenced the recent DC Comics NFT collection as one of the first to demonstrate a long-term commitment to engage with consumers and fans through NFTs.

What to expect moving forward

With education and innovative use cases in mind, NFT LA presented attendees with a better idea of where the NFT space currently stands. While adoption is well underway, much work needs to be done in order to really bring use cases to the mainstream. For instance, Salnikov believes that the industry is still very much in the ideation stage:

“Everyone is excited about NFTs being applied to everything right now. Part of these use cases will prove to be valuable and drive the market forward, and others will prove otherwise.”

In terms of what to expect moving forward, Salnikov mentioned that the rise of PFP NFTs is resulting in community-led marketplaces versus traditional NFT marketplaces. “Every community wants their own marketplace now to ensure a seamless user experience.”

Salnikov elaborated that today, when a PFP collection launches, there is typically a website where users can mint, connect their wallets and buy items. There is usually a Discord group as well and a secondary marketplace where NFTs can be traded. “Secondary marketplaces break the customer journey,” Salnikov stated.

He added that communities want users to stay on their website for secondary trading, which is why the space will see an influx of community marketplaces in the future.

Decentralized autonomous organizations (DAOs) are also becoming more common with community-focused NFT projects. Yat Siu, co-founder and chairman of Animoca Brands — a Hong Kong-based gaming and venture capital company — told Cointelegraph that DAOs will start to govern NFT communities moving forward.

Another interesting trend the NFT sector can expect to see is stories being woven into nonfungible tokens. Mason explained this in detail, noting that The Bat Cowl NFT collection will soon appear in comic books. “We have a director of storytelling working closely with the DC Comics editorial team.” According to Mason, NFTs will pave the way for decentralized storytelling. “Transmedia is about telling stories across different platforms — NFTs are built for that.”

Although it’s hard to predict the future, Salnikov added that he believes the NFT industry is moving toward a trillion-dollar market in the next 10 years, or even sooner. “This wouldn’t be possible without the ideation stage we are currently in.”

‘Our democracy will better evolve because of DAOs,’ says Animoca’s Yat Siu

April 5, 2022 Coin Telegraph

Coin Telegraph

Cointelegraph caught up with Animoca Brands co-founder Yat Siu at NFT LA to learn more about DAOs, Web3 and why NFTs are critical.

The rise of Web3 has paved the way for new business models that could shape the next phase of the internet. For instance, nonfungible tokens (NFTs) will play a large part in the open metaverse as the underlying assets people interact with. Decentralized autonomous organizations (DAOs) are also coming to fruition to allow for community governance within virtual environments.

The growth of Web3 has essentially allowed NFTs and DAOs to flourish. For example, recent data from DeepDAO — a DAO stats platform — shows that DAOs have experienced 130-times growth over the last year, reaching a market capitalization of $24.8 billion. In December 2021, DeepDAO found that the total assets under management (AUM) for DAO treasuries listed on the platform increased from around $380 million in January to a peak of roughly $16 billion in mid-September. Nonfungible tokens are also on the rise as a number of crypto-platforms and mainstream organizations continue to implement NFT use cases.

Given this increased interest, Cointelegraph spoke with Yat Siu, co-founder and chairman of Animoca Brands — a Hong Kong-based gaming and venture capital company — during NFT LA to better understand the impact that NFTs and DAOs will have on the future of the internet.

*Cointelegraph Senior Reporter Rachel Wolfson sat down with Yat Siu at NFT LA. Photo Credit: Larry Wong*

Cointelegraph: Thanks for joining me, Yat. Can you please explain what you spoke about during your fireside chat at NFT LA?

Yat Siu: Sure, I talked about the future of NFTs and briefly discussed why I think nonfungible tokens are going to usher in human creativity that is truly valued. Currently, the content we create is an asset, which actually becomes a platform in itself because it is the data we own. In regard to Web3, I think that the idea of the open metaverse has now become permanent — it’s powerful. It represents hope, along with the idea of equity in a democratic fashion. In order to explain this, I compared the open metaverse to how people typically view America. America represents freedom of expression, natural rights, self-sovereignty and more. I’m optimistic because the people building in Web3 are striving toward that similar goal.

CT: What role do NFTs and DAOs play in Web3?

YS: NFTs are critical because they represent the assets and items of the Metaverse, or things we own. The way we govern this is through decentralized autonomous organizations. They determine our rights in the Metaverse.

Nonfungible tokens also present greater opportunities than physical items do in the real world. For instance, if I own land in The Sandbox, I now have the ability to not only build on what Sandbox gave me as tools, but I can also have any third party come in and construct a new idea and innovation. This means that we can create a Cambrian creative explosion because we can build and compose freely on assets someone else has formed.

We’ve experienced small instances of this in Web2. Take YouTube, for example. Users can upload a video to that platform, but I remember Hollywood executives initially didn’t believe that anyone would want to watch someone else eating food or dancing — now, look at YouTube. YouTube demonstrated that we can combine the culture of user-generated content with our own experiences. However, ownership does not belong to the creator in this instance, it belongs to YouTube. Web3 gives this back to the end user, and NFTs are critical assets in this equation.

CT: There is an influx of DAOs at the moment. How does Animoca decide which to invest in?

YS: From an investing perspective, we look at where value is driven within DAOs. For instance, if you look at ApeCoin (APE) or Sandbox (SAND), owning these tokens is a way to be part of a network effect and power those communities they represent. If you think The Sandbox is going to keep growing, then it makes sense to have that token since those people most likely care about the future of that community. You also see this in countries. For example, America is one of the most desirable immigration spots in the world. As such, the resources and systems within America are more valuable. If you have a stake in America, then you’d be doing well in the long term since it’s desirable, so having a vote and being a citizen is also valuable. That’s what a DAO really is.

From an investment perspective, one way to look at DAOs is by the community strength and whether it’s a desirable place to be. It’s not just about how much money the DAO makes, but it’s also about whether it has longevity or if it serves the community well. People aren‘t going to be a part of Sandbox, ApeCoin or any other community if the members don‘t serve the community properly. DAOs that treat the community well have more loyalty and strength, and that‘s what we believe in when investing in DAOs.

CT: What is the difference between centralized and decentralized metaverse environments?

YS: People sometimes make a distinction between closed and open metaverses. For instance, you can say Facebook is a closed metaverse while The Sandbox is open. Animoca generally calls every metaverse that isn‘t open a “fake metaverse.” We call closed metaverses fake because we don’t actually own anything. Everything on Facebook belongs to Facebook, for instance. They can delete users’ content and their legacy if they choose to. For us, that can‘t be a metaverse since we are unable to have an identity in these worlds. Therefore, the open metaverse is the only real way of ownership. NFTs are a fundamental part here since we actually own these assets.

CT: Can you elaborate on how DAOs act as governing bodies for NFTs?

YS: Decentralized autonomous organizations are living structures that exist on a blockchain network that allow us to take governance and control over decisions made in a democratic fashion. DAOs iterate on democratic systems at the pace of technology. Therefore, I think our democracy will evolve stronger and better because of DAOs.

For example, countries might look at DAOs as a consensus mechanism that works well for a virtual society serving millions of users. Iterating on democracy in the physical world can be risky, but this isn’t the case in a technological framework. You now have a sandbox to experiment on — some DAOs will fail, some will succeed and different governance models will develop. This is how we can innovate on what could become the most optimal form of a democratic process that can’t be explored physically because it’s too risky and expensive.

The ApeCoin DAO, for instance, is fascinating because it’s a very vocal community that doesn‘t have the same level of understanding when it comes to certain terms, but we think it will evolve over time. This is a living example of a functioning DAO where people can express their thoughts on things they agree and disagree with.

CT: What excites you most about the future of DAOs and Web3?

YS: The framework and idea of composing and constructing democratic systems together — even if people don‘t have the same level of understanding — is equitable in itself.

We are excited about Web3 because the future of work is all digital, and the resources of Web3 are data created by users. As such, we are the creators of our own equity, which provides everyone with a form of universal basic equity. Imagine if Facebook considered all of its users to be workers that provide the company with data. Well, this is what we are doing for free. We think data should be a natural right, like property, meaning users have ownership of the data they create. This will completely reshape how the digital world interacts with the physical world.

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