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Report: China Will Become a Metaverse Tech Leader During 2023

Report: China Will Become a Metaverse Tech Leader During 2023A report issued by Globaldata, a global consulting and data analysis company, predicts that China will become a leading country in metaverse tech during 2023. The firm believes that the development of other technologies like artificial intelligence (AI), virtual reality (VR), augmented reality (AR), and 6G will allow China to configure itself as a metaverse […]

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Dubai Free Trade Zone Partners With South Korean Companies to Expand Web3 and Metaverse Business

Dubai Free Trade Zone Partners With South Korean Companies to Expand Web3 and Metaverse BusinessThe Dubai Multi Commodities Centre, one of the biggest free trade zones in the world, signed agreements with governments and companies in South Korea to bring more Web3 and metaverse businesses to the emirate. The objective of this move is to consolidate the status of Dubai as an international blockchain hub in the region. Dubai […]

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Crypto Biz: SVB collapses, USDC depegs, Bitcoin still up

Turmoil in traditional finance spilled over into Bitcoin and crypto markets, forcing federal regulators to step in.

Crypto investors should know by now that it doesn’t take much to topple a distressed multi-billion-dollar firm. On March 10, California regulators officially shut down Silicon Valley Bank (SVB) 48 hours after the company disclosed it was in financial distress. As Cointelegraph reported at the time, SVB is the first Federal Deposit Insurance Corporation (FDIC)-insured bank to fail in 2023. That crucial detail prompted federal regulators in the United States to step up and backstop SVB depositors before a bank run could ensue. Although government protections weren’t enough to stem a massive drop in bank stocks once markets reopened on Monday, Bitcoin (BTC) and the broader crypto market soared. Did FDIC bail out Bitcoin? Only time will tell.

The SVB fiasco triggered a short but intense period of fear and trepidation in crypto markets as Circle’s USD Coin (USDC) depegged. The only thing Circle did wrong was holding a portion of its deposits at SVB when it collapsed.

This week’s Crypto Biz tries to make sense of SVB’s failure and how it affected crypto markets.

Silicon Valley Bank shut down by California regulator

On March 10, the California Department of Financial Protection and Innovation shut down Silicon Valley Bank and appointed FDIC as the receiver to protect insured deposits. The news triggered a fire sale in crypto and financial markets as SVB was a top-20 U.S. bank by total assets. So, what compelled regulators to close the bank? Earlier in the week, SVB released its mid-quarter financial update, which disclosed a $1.8 billion loss tied to securities sales and the need to raise $2.25 billion to shore up operations. SVB was a trusted partner of many crypto-focused venture capital firms, but its demise was ultimately tied to duration risk, not crypto industry exposure. Washington put out the SVB fire quickly by announcing that all depositors, and not just accounts worth up to $250,000, would be protected. President Joe Biden later confirmed that shoring up depositors would not cost the taxpayer anything.

Circle ‘able to access’ $3.3B of USDC reserves at Silicon Valley Bank, CEO says

One of the companies caught in the crosshairs of SVB was stablecoin issuer Circle, which had $3.3 billion in reserves tied up at the failed bank. USDC lost stablecoin market share — and its peg to the U.S. dollar — once SVB collapsed because it wasn’t clear if and when Circle could access its funds. At its lowest point, USDC fell to around $0.87. The stablecoin has since returned to par with the dollar, with Circle confirming it could access reserves held at SVB. Circle lost significant market share over the past week due to ongoing USDC redemptions. USDC’s market cap currently stands at $38.4 billion, less than half of rival Tether, whose USDT is valued at nearly $73.6 billion.

Breaking: Signature Bank closed by New York regulators, citing ‘systemic risk’

SVB wasn’t the only crypto-friendly bank collapse this week. On March 12, the Manhattan-based Signature Bank was officially shuttered by the New York Department of Financial Services, allegedly to protect the U.S. economy and strengthen the public’s confidence in the banking system. “The actions that we took today were designed to limit the consequences of the depositor outflows from Silicon Valley and from Signature and to reduce any spillover effects,” a Treasury official reportedly said. Like SVB depositors, all accountholders at Signature will be made whole without affecting taxpayers. Signature Bank had nearly $89 billion in deposits as of Dec. 31, 2022.

South Korea launches ‘Metaverse Fund’ to expedite domestic initiatives

“Metaverse” is still a vague and underdeveloped concept, but South Korea is taking it very seriously. Seoul’s Ministry of Science and ICT announced it would allocate 24 billion won ($18.1 million) toward metaverse development as part of a bigger pot worth 40 billion won ($30.2 million). The newly launched Metaverse Fund is said to support mergers and acquisitions of various metaverse-related companies — a move that could give the country an upper hand in the still-evolving sector. The metaverse arms race continues. As Cointelegraph reported earlier this month, Mark Zuckerberg’s Meta won court approval to continue its metaverse acquisition plans.

Crypto Biz is your weekly pulse of the business behind blockchain and crypto, delivered directly to your inbox every Thursday.

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Meta Announces 10,000 Layoffs in ‘Year of Efficiency’ Move; Singles Out AI Over Metaverse as ‘Largest Investment’

Meta Announces 10,000 Layoffs in ‘Year of Efficiency’ Move; Singles Out AI Over Metaverse as ‘Largest Investment’Meta, the social media company, will continue to shed part of its workforce, recently announcing 10,000 new layoffs to be executed during 2023 as part of its new efficiency policy. Mark Zuckerberg, CEO of the company, stated that artificial intelligence (AI) was currently the company’s most prominent investment, even over the metaverse. Meta Announces 10,000 […]

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The Pokémon Company Might Be Preparing to Make Moves in the Metaverse

The Pokémon Company Might Be Preparing to Make Moves in the MetaverseThe Pokemon Company, a corporation in charge of the development of the Pokemon brand, might be preparing to make some moves regarding the franchise and the metaverse. The company has opened a job opportunity that includes experience and knowledge of fields like blockchain, Web3, and the metaverse as a requirement, including connections with investors in […]

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Nissan files 4 new web3 trademarks, trials sales in the metaverse

Nissan has recently filed four new Web3 trademarks for its Infiniti, Nismo and Nissan brands.

Japanese automotive brand Nissan has become the latest car manufacturer to ramp up its Web3 efforts, filing four new Web3-related trademarks filed in the United States, while its Japan unit is experimenting with auto sales in the metaverse.

According to Nissan’s Mar. 7 trademark applications to the United States Patent and Trademark Office (USPTO), the new filings cover its Infiniti, Nismo and Nissan brands.

The filings to the USPTO reveal Nissan's plans to create virtual clothes, cars, headgear, trading cards, toys, tickets, and an NFT marketplace for trading and minting NFTs. 

The company has also outlined plans for metaverse advertising services and other "entertainment services" covering online video, images, artwork, tickets, audio, sounds, music, and trading cards, along with a website that has information on everything about Nissan’s proposed NFTs and how they will work.

There are also intentions for "non-downloadable computer software for use as a digital wallet," according to the filing.

Test drive a Nissan in the metaverse

Last week on Mar. 8, Nissan Japan announced it is conducting a three-month "demonstration experiment" of its virtual store "Nissan Hype Lab" to "study, consult, test drive, and purchase Nissan vehicles," while in the metaverse. 

Nissan Hype Lab. Source: Nissan

"At the same time we will examine the possibility of new sales methods for cars," it wrote in a statement.

The trial, which runs from Mar. 8 to Jun. 30, will allow customers to visit the virtual storefront "24 hours a day" via a PC or smartphone. Customers can create their own customized avatars and between certain hours, can even interact with virtual sales staff. 

Photo of a test drive in Nissan Hype Lab. Source: Nissan

Customers can make an order for the car and finalize purchase contracts through this virtual sales office, according to the announcement.

The Nissan Hype Lab allows users to purchase Nissan vehicles in the Metaverse. Source: Nissan 

Nissan also previously filed five trademark applications in October 2022 for some of its more prominent car models, including SKYLINE, Z, and GTR.

At the time, trademark attorney Mike Kondoudis said the car brand's filings signaled plans for NFT-backed media, online NFT marketplaces, digital wallets, NFT minting, trading and storing software.

Related: Keep an eye out for major company NFT trademark filings this year

Automotive giant General Motors has also been very active with NFT-related filings, with its latest trademark applications on Feb. 16 covering its Chevrolet and Cadillac brands.

American car manufacturer Ford Motor Company, prepped its entry into the world of NFTs and the Metaverse last September, filing 19 trademark applications across its major car brands.

Despite the ongoing crypto winter and bear market, multinational corporations are still pushing forward with trademark applications covering Web3, crypto, nonfungible tokens (NFTs), and the Metaverse.

Kondoudis said that there were record numbers of trademark applications for NFTs, Metaverse and crypto-related products in 2022.

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South Korea launches Metaverse Fund to expedite domestic initiatives

With the help of the Metaverse Fund, South Korea will support the mergers and acquisitions of various firms from the metaverse ecosystem.

While some global economies got distracted by the commotion around price instability and ecosystem collapses in crypto, South Korea doubled down on the potential of the metaverse as a new economic growth engine.

South Korea’s Ministry of Science and ICT announced investments into a fund dedicated to driving metaverse initiatives in the country. According to the official announcement, the South Korean government invested roughly $18.1 million (24 billion Korean won) with the goal of creating a fund of more than 40 billion Korean won (approximately $30.2 million) toward metaverse development.

With the help of the Metaverse Fund, South Korea will support the mergers and acquisitions of various firms from the metaverse ecosystem. The government sufficed this move by highlighting the rising interest of major tech companies in Metaverse.

Related: South Korea to examine crypto staking services following the Kraken case

The government agrees that considering the underlying investment risks, it is difficult for local players to raise capital through private investments. As a result, in addition to mergers and acquisitions, South Korea intends to help domestic metaverse-related companies compete with global players, adding that “we plan to actively support it.”

Metaverse Seoul screenshots. Source: opengov.seoul.go.kr

In January, the city of Seoul launched a digital replica of the city in the metaverse. As Cointelegraph reported, the South Korean government spent roughly 2 billion won — $1.6 million — for the first phase of the metaverse project.

However, in the physical world, South Korea continues to keep checks and balances on cross-border threats. In February, the country announced its first independent sanctions related to cryptocurrency thefts and cyberattacks against specific North Korean groups and individuals.

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South Korea Doubles Down on Metaverse, Announces $51 Million Investment in Related Projects

South Korea Doubles Down on Metaverse, Announces  Million Investment in Related ProjectsThe Ministry of Science and ICT of South Korea has approved investments of $51 million in various metaverse projects, doubling down on its metaverse bet for the future. The investment includes a fund for supporting the growth of metaverse companies and another special investment to build several services including region-specific projects. South Korea Continues Investing […]

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Lego Prepares a Metaverse Collaboration With Epic Games to Target Digital Markets

Lego Prepares a Metaverse Collaboration With Epic Games to Target Digital MarketsLego, the Danish toy company famous for its colorful plastic bricks, expects to diversify its entertainment offerings portfolio, targeting the metaverse. The company is preparing to present a virtual world in partnership with Epic Games, the gaming engine company, to continue increasing its market share and growth streak by entering new digital markets. Lego to […]

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Death in the metaverse: Web3 aims to offer new answers to old questions

As contemporary society continues to digitize, life in the metaverse raises the same timeless questions about what happens after death.

The age-old question of “what happens after we die” is one humanity has grappled with for millennia. Religions, philosophers and thought leaders have put forth theories about each person’s fate beyond life on earth. Until now, no factual, science-based conclusion has provided a satisfying answer.

Psychologists have understood that the fear of death — or the realization of mortality — is a major motivator of human action. Developments such as cloning and creating virtual worlds, which were previously science fiction, have come to reality, perhaps as another scramble to answer this question — or even defeat death.

Now, in the age of the metaverse, humans are the architects of a new digital world and, therefore, a new digital life. In the Web3 space, the metaverse has garnered much attention from outside investment and increased participation from legacy companies. The metaverse sector will have an estimated value of $5 trillion by 2030.

Many believe that the metaverse will reshape how social life is structured.

This new genesis of digital life naturally brings out the same timeless questions — with a twist. If life is reinvented in digital reality, will death also be different? Specifically, what happens after we die in the metaverse as humans and avatars?

What happens when we die digitally?

The existential question of what happens after we die remains unanswerable regarding our souls’ final or next destination. However, cultures worldwide have different ways of handling death-related ceremonies, which is the human experience of deciding what happens to our bodies after death.

As more people continue to digitize their identities, create avatars in virtual worlds and hold digital assets, the question of what happens after death reappears.

The introduction of social media was one of the earlier instances of humans having to deal with a digital identity after death.

At Facebook, for example, a user’s profile becomes “memorialized” as a “place for friends and family to gather and share memories after a person has passed away.” It also serves as a security feature to prevent any future logins.

Facebook’s parent company Meta has been actively pursuing metaverse development. Mark Zuckerberg, the company’s founder, made an explainer video for Meta’s metaverse in October 2021.

While the clip didn’t explicitly mention death, users began asking the death in the metaverse question. Shortly after, a dystopian meme circulated on social media with a quote attributed to Zuckerberg: “If you die in the metaverse, you die in real life.”

Nonetheless, founders and executives of metaverse platforms are toying with the idea of death as digital reality develops. 

Recent: In crypto winter, DeFi needs an overhaul to mature and grow

Frank Wilder, the co-founder of metaverse platform Wilder World, told Cointelegraph that as we build sacred places within the metaverse and create new avatar versions of ourselves, the concept of “dying” is no longer limited to the death of a physical body:

“In this digital world, we have the ability to imagine new forms of existence after death, such as the preservation of a person’s digital consciousness or the creation of a virtual memorial.”

Wilder said that honoring the “sacredness of life is a delicate exploration,” and humans will inherit various avenues to choose how they would like to honor their life.

Cemeteries in the sky

For Mariana Cabugueira, the lead architect and urban planner of Wilder World’s first digital city, Wiami, this “new dimension of reality” invites a fresh approach to preserve legacies.

Take the concept of cemeteries, for example. In her view, metaverse cemeteries will be less like graveyards and more like designated memorial spaces with capsules that hold memory and soul, created by the owner for digital rest.

“These digital capsules share how we want to be remembered and honored, tell our story, and convey the warm feeling of a soul.”

Although avatars do not age, the mind behind the avatar can supersede the digital character and deserves closure and celebration, Cabugueira said, adding, “memory-capsule cemeteries will be places for life closure, for ending our characters — a self we departed from — or a stage of life we are no longer in.”

A memorial stone from Remember, an ecosystem that allows users to mint memorials for important life events. Source: Remember

In Wilder World, Cabugueira has a vision of how these spaces will visually take shape. She said these memorial spaces would be high-up “like cathedrals,” with symbolism tied to the sky and light. 

“Remembrance is no longer just a burial but a celebration of life evolving,” she said.

Ethics of digital life after death

Digital cemeteries are only one part of what happens after a digital death. A more pressing question is: What happens to our digital assets and data?

Yat Siu, co-founder and executive chairman of Animoca Brands, believes we’re still early in this discussion. He told Cointelegraph that those thinking about these things are doing so more in terms of “how custody of assets can be transferred to heirs rather than managing metaverse identity.” Siu said:

“In the metaverse, your digital persona can still have influence and impact even if it’s no longer operated by you. In fact, a digital persona might become even more influential and therefore valuable after physical death.”

Marja Konttinen, the marketing director of the Decentraland Foundation — the founding organization of the Decentraland metaverse — said that virtual worlds are often thought of as a “thing of the future;” however, they can also be a powerful tool as windows into the past.

Konttinen highlighted that a digital twin that continues life after its users’ physical death could raise ethical questions similar to those surrounding artificial intelligence and deep fakes.

“It certainly opens up the possibility of creating a permanent virtual mausoleum of our memories and experiences, maybe in the form of a NPC [non-player character] that looks and speaks like us, forever living in the metaverse,” she said.

‘Thanotechnology’ and ‘dremains’

Death in digital reality has united emerging technologies with older fields of study surround death and grieving.

Cole Imperi is a thanatologist — a specialist in understanding death, dying, grief and bereavement, derived from the Greek word for death, “thanatos” — and founder of the School of American Thanatology. She told Cointelegraph that there is a subfield in thanatology called “thanotechnology” that focuses on the intersection of her field and technology.

She told Cointelegraph that digital spaces could offer more ways to “seamlessly connect the dead with the living,” which physical spaces don’t have:

“The digital afterlife offers more opportunity for continued bonds with our deceased loved ones and, I believe, also houses the greatest opportunity for advancement in how we memorialize and remember our loved ones.”

In 2009, Imperi even coined the term “dremains,” which refers to the digital remains people leave behind online after death. Imperi helps run the ThanaLab, which monitors “online memorialization patterns and developments related to user death.”

She said the digital death of users is becoming more prevalent, and it’s only natural to bring this aspect of our physical lives into a digital space.

Do we have answers?

The metaverse has been a long time coming. In 1992, the American sci-fi writer Neal Stephenson first coined the term metaverse, even before the existence of any of the platforms we have today.

That said, even now, as we have more tangible ideas of the metaverse and its capabilities, it is still in its infancy. This means that important concepts to humanity that have a place in the physical world, such as death, are still taking shape digitally.

Recent: Is the IMF shutting the door prematurely on Bitcoin as legal tender?

Digital architects like Mariana Cabugueira are now reenvisioning the future of digital cemeteries, and researchers like Cole Imperi are monitoring the digital remains of human life online. 

We still may not know what happens after we die; however, in the metaverse, we’re getting much closer to the answer.

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