Global payments behemoth Visa says it is working on a protocol that can enable the sending of digital currencies across multiple blockchains. In a new blog post, Visa announces a new research paper that explores a concept they call a “Universal Payment Channel” (UPC). Visa describes the UPC as a hub that interconnects multiple blockchain […]
The post Payments Giant Visa Working on Protocol That Can Send Digital Currencies Across Different Blockchains appeared first on The Daily Hodl.
Visa’s new blockchain interoperability project is designed to serve as a “network of blockchain networks.”
Global payments giant Visa has introduced a project that aims to be a “universal adapter” of blockchains that can connect multiple cryptocurrencies, stablecoins as well as central bank digital currencies (CBDC).
According to an official announcement on Thursday, Visa’s research team is working on a “Universal Payment Channel” (UPC) initiative, a blockchain interoperability hub connecting multiple blockchain networks and enabling transfers of digital assets from different protocols and wallets.
“Imagine splitting the check with your friends, when everyone at the table is using a different type of money — some using CBDC like Sweden’s eKrona, and others preferring a private stablecoin like USDC,” Visa wrote, adding that such a tool “well may be a reality” in the “not-too-distant future” with the UPC project.
Developed by Visa’s research and product teams, the UPC project is designed to establish dedicated payment channels between different blockchain networks, connecting CBDC networks between countries as well as connecting CBDCs with private stablecoin networks.
The Visa research team originally began working on the UPC concept back in 2018, developing an interoperability framework that would run independently of the underlying blockchain mechanisms.
Related: Microsoft wins US patent for ‘ledger-independent token service’
“Ultimately, the UPC solution aims to serve as a network of blockchain networks — adding value to multiple forms of money movement, whether they originate on the Visa network, or beyond,” the announcement reads.
One of the world’s largest payments companies, Visa made a major move into the crypto industry in 2020, partnering with blockchain firm Circle to support the USD Coin (USDC) stablecoin on certain credit cards. The company has since reaffirmed its commitment to crypto payments and fiat on-ramps, with a particular focus on stablecoin integrations.
Visa Brazil exec outlines plans for implementing crypto assets such as Bitco onto the payments platform.
In a recent interview with local Brazilian news outlet Seu Dinheiro, Eduardo Abreu, Vice President of new business at payments giant Visa, revealed the company's intentions to integrate crypto assets onto its platform for both payments and as a store of value, including the leading cryptocurrency Bitcoin (BTC).
Back in March 2021, Visa’s CEO of Brazil, Fernando Teles, introduced the concept of adopting tokenized payments, as well as an application programming interface (API) designed to bridge the gap between traditional financial institutions and crypto services.
In the interview, Abreu shared his belief that greater adoption will require the integration of traditional banking activity within the cryptocurrency ecosystem so that customers can transact with fiat and crypto within the same environment.
Visa already offers 180 currencies on its platform and will look to leverage its 170 million global customer base and established fintech relationships with national banks Alterbank, Ripio and Zro, in maximizing adoption in the region.
There was no specific announcement as to the date of the launch, but it is widely expected in the coming months.
“The great advantage of adopting Bitcoin is, without a doubt, its ease. Without needing to exchange a fiat currency, there is an optimization of exchanges when using Bitcoin." said Eduardo Abreu.
Related: Visa white paper describes NFTs as a ‘promising medium for fan engagement’
Alongside this service, Abreu also suggested the possibility of customers receiving cashback in crypto:
"Brazilians already have the culture of receiving card points, miles, discounts, etc. Why not receive cryptocurrencies with their credit card as well?"
Visa is no stranger to making headlines in the cryptocurrency space. In a bid to portray its pioneer status as a cultural intermediary of traditional and modern finance, Visa last month purchased a CryptoPunk NFT avatar for 50 ETH ($150,000 at the time of sale.)
Visa, the multinational payments giant, has announced it is planning to bring cryptocurrency services to traditional banking platforms in Brazil. The company also announced that it is working with several cryptocurrency companies in the country to bring cryptocurrency payment cards to the market and hinted at a possible direct integration of bitcoin in payments. Visa […]
Apart from creating their own digital collectibles, major brands are also acquiring popular NFTs amid the growing popularity of nonfungible tokens.
The nonfungible token (NFT) space is arguably one of the most popular aspects of crypto and blockchain technology. Indeed, NFTs are often the topic of conversation, garnering significant interest both from inside and outside the industry.
Such is the growing appeal of NFTs outside the crypto space that major brands like Visa and Budweiser are now acquiring popular items from popular collections. These moves are different from the usual corporate interactions with nonfungible tokens that often involve creating their own digital goods.
As is often the case with crypto and blockchain matters, significant adoption from major legacy players triggers a FOMO-driven frenzy. Several NFT collections have seen massive price floor raises as other collectors hop into the trend.
Beyond the current hype, some crypto proponents say NFTs offer more than memetic appeal and can be the “killer app” for Web 3.0. If such assertions prove true, then nonfungible tokens could be a conduit for gamified investments in the emerging decentralized web, becoming the focal point of the next iteration of the internet similar to how e-commerce and social media have dominated the current cyberspace.
On Aug. 23, Visa announced that it had purchased Crypto Punk #7610 for 49.50 Ether (ETH) — about $149,939 at the time of writing. The news arguably caused a stir in the crypto space and even beyond with several CryptoPunks getting snapped up by wealthy buyers keen to get in on the action.
CryptoPunks is among a league of “OG” NFTs from 2017, long before the current hype surrounding nonfungible tokens. Created by Larva Labs back in June 2017, the collection contains 10,000 pixelated images measuring 24-by-24 pixels set in the 8-bit pixel art style.
Punks have been hailed as being the inspiration for the ERC-721 token standard for NFTs and the precursor to blockchain-based generative art.
Upon the initial release, Crypto Punks were available for free to interested collectors. With NFTs gaining in popularity since 2020, the vintage (at least by nonfungible token standard) collection has become increasingly sought after.
According to the Larva Labs website, the cheapest CryptoPunk available for purchase is priced at 119 ETH (about $400,000). Several owners reportedly delisted their Punks in the wake of the Visa purchase amid a wave of fresh interest following the news.
As of the time of writing, the 30-day trading volume for CryptoPunks has crossed over half a billion dollars. CryptoPunks trading activity is over half of the NFT volume recorded in August.
Chinese internet billionaires have also jumped on the train, acquiring CryptoPunks for huge sums of money.
These days, premium NFTs like CryptoPunks seem to have become a status symbol akin to the Lamborghini fascination of crypto’s earlier days. It is now common to see celebrities from inside and outside the crypto world sporting popular NFTs as their profile pictures on social media accounts.
Detailing the reason for its CryptoPunks purchase, Visa’s crypto chief Cuy Sheffield stated, “To help our clients and partners participate, we need a first-hand understanding of the infrastructure requirements for a global brand to purchase, store, and leverage an NFT.” While corporate NFT adoption is not a new phenomenon, actually buying an NFT rather than launching a digital collection based on a company’s offerings makes Visa’s move significantly novel.
Related: Clever user makes $80K profit in CryptoPunk 'smash and grab'
Jesse Johnson, founder and chief operating officer of Aavegotchi creator Pixelcraft Studios, told Cointelegraph that Visa’s foray into the NFT space is only “the tip of the iceberg.”
“The market is going to increasingly see brands, organizations and businesses embrace NFTs over the coming months and years. It will start as a new way to connect with customers but eventually evolve entire industries.”
Johnson told Cointelegraph that NFT popularity will drive entire industries to re-examine and realign their incentives with their customers.
According to Christian Ferri, co-founder and CEO of NFTPro, a company that provides NFT market guidance to global brands like Prada and Lamborghini, corporate interest in nonfungible tokens covers investments and marketing, as well as driving increased brand engagement among the younger demographics.
Speaking to Cointelegraph, Ferri said that the current hype around expensive NFT collectibles will subside, stating:
“As the market turns, most if not all NFTs not tied to a high-status, the high-equity name will drop in value considerably, if not disappear. This dynamic will reset the attention on a new scale of digital worth, where NFT buyers will seek and demand digital authentic products from known names that, on wide consensus, carry a higher, more predictable weight.”
There is already growing NFT interest in the corporate world with several major brands looking to establish a presence in the market. Social media giant Facebook has stated that NFTs will be part of its digital asset wallet service Novi.
Reports from China say Bytedance, the parent company of the popular social media platform TikTok might also be mulling an NFT foray. Bytedance founder Zhang Yiming reportedly stated the company’s planned NFT venture in a WeChat NFT group on Aug. 26.
With NFTs becoming the conduit for digital ownership, some commentators have begun to highlight the gamified investment potential of nonfungible tokens, especially within the context of the emerging decentralized web architecture. In some ways, NFTs are perhaps shaping up to embody the transformation brought on by e-commerce and social media in today’s cyberspace.
According to Ferris, “NFTs will be the backbone for the third wave of commerce, or virtual commerce.” From digital avatars to virtual and augmented reality (VR/AR), gaming and metaverses, NFTs are being tipped to permeate several layers of the evolving digital matrix.
This increased penetration also brings up discussions about possible interactions with major pillars of the digital world like e-commerce and social media. Indeed, some companies are already looking to develop infrastructure that will exist at the intersection of NFTs and social media, gaming and e-commerce among others.
Related: Ready Player Earn: Where NFT gaming and the virtual economy coincide
“NFTs are empowering real ownership of digital items that can often be used as utilities,” Johnson told Cointelegraph, adding:
“Businesses can utilize NFTs for many different uses, but the biggest of all is gaming. The ‘play-to-earn’ aspect of NFTs will be revolutionary in the coming years. Through this transitioning from static digital collectibles to tokens, real utility is created and will lead to the next generation of NFTs, especially as more companies and corporations get involved.”
Indeed, play-to-earn gaming has become a major component of the NFT space with titles like Axie Infinity commanding the attention of players across the globe. The growing popularity of play-to-earn NFT games is displaying the possibilities that may lie at the intersection of gaming, blockchain, and the virtual economy.
Speaking to Cointelegraph earlier in August, Jenny Q. Ta, founder of blockchain-based social media platform CoinLinked, remarked that NFTs could be the missing link in the quest to disintermediate the internet. According to Ta, NFTs will facilitate content ownership in Web 3.0, creating a whole new virtual economy.
Ta’s CoinLinked was recently acquired by NFT aggregator platform HODL Assets. Following the acquisition, HODL Assets is looking to launch its NFT marketplace service that will also combine e-commerce and social media features.
The nonfungible token, or NFT, market registered $2.5 billion in sales during the first half of 2021. Companies like Visa continue to shine the spotlight on this rapidly growing industry.
Visa’s splash into the NFT market was driven by an evaluation of the underlying technology and its ability to serve as a “promising medium for fan engagement,” according to a recent whitepaper published by the global payments giant.
The Aug. 23 publication described nonfungible tokens as an important innovation during the pandemic, where strict shelter-in-place orders limited live sports, entertainment and music festivals. At the same time, NFTs are emerging at a time when fans are eager to join digital communities centered around their favorite artists or sports teams.
Professional sports were hit especially hard by the pandemic, with an estimated $18 billion in lost revenue across major leagues worldwide. According to Visa, this further drives the “need to diversify revenue and focus on technology to reposition businesses for growth opportunities and to capture the attention of fans.”
In this sense, “NFTs appeal to collectors, fans, teams, leagues, and talent,” the report said. In particular, NFTs can become primary sources of fan engagement, customer relationship management and newer revenue streams. The main NFT use cases identified were collectibles, art and gaming.
The whitepaper was released alongside an announcement from Visa that it had purchased its first NFT — CryptoPunk 7610 — for $150,000. CryptoPunks is a collection of 10,000 unique NFTs with proof of ownership stored on the Ethereum network. A total of 2,519 CryptoPunk collectibles were sold in the past 30 days, netting a combined $467.4 million, according to industry sources. Over that period, the highest-grossing sale was CryptoPunk 7252, which sold for 1,600 ETH, or $4.5 million.
Related: Visa invests $150,000 in NFT CryptoPunk asset
Beyond the CryptoPunk craze, NFTs in other niches are also growing in popularity. As Cointelegraph recently reported, total NFT sales are likely to exceed $900 million in August alone, marking a new record for the industry. The previous record was set in May when total sales volume for NFTs reached $255 million. May was when crypto markets reached new all-time highs before experiencing a multi-month correction.
Visa’s foray into NFTs is hardly surprising, given the payment company’s growing focus on digital assets. The company recently entered into an agreement with digital asset platform Zipmex, providing further crypto payment integration in the Asia-Pacific region. In January of this year, Visa reaffirmed its commitment to building cryptocurrency payment and fiat on-ramps in a bid to support the digital asset class.
NFTs continue to dominate the crypto conversation, with PNGs on social media profile pictures becoming the new hype.
Not so many years ago, Lamborghinis were the main “flex” for crypto “moon-boys” as token prices reached astronomic valuations. Several high-profile cryptocurrency proponents made it a habit of arriving at conferences behind the wheels of exotic supercars and “when Lambo” was a popular refrain in the industry.
These days, nonfungible tokens (NFT) are arguably the main topic of conversation in the crypto space, and ownership of expensive PNGs to be displayed on social media profile pictures is the new status symbol for the “cryptorati.”
Tweeting on Thursday, Chinese crypto journalist Colin Wu reported that internet bigwigs in the country are among some of the latest to join the NFT hype. Cai Wensheng, founder of smartphone maker and photo touch-up app Meitu, has reportedly purchased CryptoPunk #8236 for 125 Ether (ETH) — about $387,000.
Indeed, CryptoPunks, perhaps the most popular NFT collection in the market, has been gaining even greater popularity even outside the crypto space. As previously reported by Cointelegraph, card payments giant Visa recently purchased CryptoPunk #7610 for about $150,000.
Related: Facebook ‘definitely looking’ at NFTs, says exec
Budweiser also recently purchased a $120,000 fan art as well as the Beer.eth domain in what appears to be a growing appeal for NFTs. Social media giant Facebook has also said that is “definitely looking” at NFTs as part of the development of its crypto wallet product, Novi.
As of mid-August, popular NFT marketplace OpenSea recorded an over 76,000% year-to-date increase in trading volume amid the current NFT hype. Play-to-earn NFT games like Axie Infinity are on a tear in terms of metrics such as internet traffic and governance token price.
Warnings of a possible bubble for NFTs are also beginning to make the rounds, with critics saying the current hype is unsustainable. On the other side of the argument, proponents say NFTs could be to Web 3.0 what social media and e-commerce have been for Web 2.0.
Derivatives data and strong fundamentals back retail and professional traders' bullish stance on ETH price.
Ether (ETH) price rallied 32% leading up to August 23, and despite testing the $3,000 support multiple times, the level has held firmly. Meanwhile, Bitcoin (BTC) could not sustain the $50,000 mark, at least in the short-term. According to Cointelegraph, pro traders are not yet inclined to add bullish positions according to derivatives metrics.
Surprisingly, the opposite situation emerges when looking at the sentiment of Ether traders who currently show a reasonable degree of confidence in the current price level.
On Monday, Dawn Stump, a commissioner at the Commodity Futures Trading Commission (CFTC), stated that:
"A trading platform that offers derivatives on digital assets to U.S. persons without registering, or in violation of CFTC trading rules, is subject to the CFTC's enforcement authority."
It is unclear why Bitcoin's and Ether's reaction to the news would be any different, but it is worth noting that commissioner Stump is only one of four to six CFTC members on panels that regulate commodities.
Meanwhile, payment processor giant Visa surprised the NFT market, announcing a $150,000 CryptoPunk acquisition. Cuy Sheffield, the head of crypto at the $500 billion market cap company said:
"With our CryptoPunk purchase, we're jumping in feet first. This is just the beginning of our work in this space."
For those unfamiliar, the Ethereum network is the absolute leader in the NFT segment, and a single marketplace called OpenSea has processed more than $1 billion worth of transactions in the past 30 days.
To understand how bullish or bearish professional traders are leaning, one should analyze the futures basis rate. The basis is also frequently referred to as the futures premium, and it measures the difference between longer-term futures contracts and the current spot market levels.
A 5% to 15% annualized premium is expected in healthy markets, in a situation known as contango. This price difference is caused by sellers demanding more money to withhold settlement longer.
However, this indicator fades or turns negative during bearish markets and flashed a red flag known as 'backwardation'.
As depicted above, the current 11% annualized premium is neutral but much better than one month ago when the metric held below 5%. Nevertheless, a healthy market does not need excessive optimism from pro traders, which usually ends with excessive leverage longs and a basis rate above 15%.
To exclude externalities specific to the futures instrument, one should also analyze options markets.
The 25% delta skew compares similar call (buy) and put (sell) options. The metric will turn positive when fear is prevalent as the protective put options premium is higher than similar risk call options.
The opposite holds when market makers are bullish, causing the 25% delta skew indicator to shift to the negative area. Readings between negative 8% and positive 8% are usually deemed neutral.
Notice how Ether option traders have been flirting with the 'greed' level since Aug. 7 when the indicator dropped below the negative 8 threshold. This data validates the futures contract premium, which has improved over the past couple of weeks and is currently sustaining a healthy 'neutral' level.
Derivatives data shows the pro traders that are more active on quarterly futures and Ether options trading sitting comfortably at the time of writing.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.
Fame Lady Squad is relaunching after its male creators were outed, the MLB issues tokenized stadiums, and rare Kobe Bryant photos are up for auction.
The Fame Lady Squad (FLS), a nonfungible token (NFT) avatar project purporting to have been created by an all-female team, is set to re-launch today with a new team after it was uncovered that three Russian men were behind the project earlier this month.
SO EXCITING!! pic.twitter.com/V1LKgIU34c
— Cadboros (@cadboros) August 23, 2021
The project’s NFTs depict cartoon female avatars, with the tokens having generated $1.9 million worth of total sales since launching on OpenSea Marketplace in mid-July.
The FLS website previously listed three team members named Cindy, Kelda and Andrea who all had female avatars.
On Aug. 10, Fedor Linnik, the co-creator of NFT project Neural Pepe, tweeted that he had collected “enough proof” to connect three men to the project on Aug. 10, specifically outing the pseudonymous developer “D Mefi” as one of FLS’ creators.
I'm the person who started all the fuss @FameLadySquad and @queenship_ project. I have enough proof to state that FLS was created by 3 males who are also behind a whole bunch of abandoned NFT projects.
— Fedor Linnik (@FedorLinnik) August 10, 2021
And their "signature" convinces me Queenship is also their product. Thread/
Following the accusations, Russian developer Max Rand also confessed to working on the project via Twitter on the same day. The FLS Twitter account also confirmed the news but failed to name the third member of the team.
After facing public backlash, the FLS founders reportedly conducted a poll on Twitter asking the community if they should hand over the project’s smart contract to a new owner — to which more than three-quarters of respondents voted in favor.
FLS stated they have handed the smart contract over to the well-known NFT proponent, “digitalartchick.” Digitalartchick has since passed the project onto a team of women including NFT collector Ashley Smith and NFT advisor Daniel Davis.
Yeah, let's all please have a *HUGE* round of applause for @digitalartchick. There would be no #ladyrelaunch without her fierce ways. Thanks girl. pic.twitter.com/QofiHmpnnZ
— Fame Lady Squad (@fame_ladies) August 24, 2021
The FLS website is offline at the time of writing.
As part of its partnership with NFT sports collectible platform Candy Digital, Major League Baseball is issuing NFTs dedicated to 30 MLB stadiums.
The latest drop went live on Aug. 23 and depicts a digital illustration of the PNC Stadium which is home to the Pittsburgh Pirates. The collection includes an open edition up for sale until Aug 28, and a one-of-one up for auction that is set to close on the same day.
The one-of-one currently has a top bid of $3,050 and the highest bidder will receive two tickets to an MLB game at the stadium, a player meet and greet, the first pitch at a game, a framed print, and a stadium.
The MLB partnered with Galaxy Digital-backed Candy Digital in June, and this is the third drop of the MLB stadium series so far. The duo has also launched collections dedicated to baseball legend Lou Gehrig, and 2020 world champions the LA Dodgers.
Related: Altcoin Roundup: Here’s a few things to consider when buying NFTs
An NFT auction dedicated to the late NBA legend Kobe Bryant is set to go live on the marketplace Cryptograph tomorrow.
The collection spans eight one-of-one NFTs depicting pictures of Bryant captured by Hollywood photographer Davis Factor in the 1990s. According to Cryptograph, all the revenues from the sales will go towards The Mamba & Mambacita Sports Foundation.
The foundation is a non-profit that is dedicated to helping “underserved athletes and young women in sports.” The organization was founded in honor of Byrant and his daughter Gigi after they passed away in January last year.
The developers behind EtherRocks — tokenized pet rocks that have fetched as much as $610,000 each amid the recent NFT bubble — have launched a new nonfungible avatar project featuring synthetic human faces that have been generated using artificial intelligence.
Nftsprites comprises a series of 100 unique synthetic faces, with holders seeking prices of between 16.5 Ether ($55,100) and 100 Ether ($334,000) for secondary sales. The NFT feature uncanny animations in which the synthetic faces move and appear to mouth speech.
Twitter user “Larry0x,” a smart contract developer at Delphi Digital, dismissively described the Nftsprites as “the lowest-effort NFT project” he has encountered, asserting that the synthetic faces were freely taken from another website.
if true, then this is the lowest-effort NFT project I’ve seen. you literally just go to https://t.co/exiJbXvL6H and right click-save. a new NFT!
— THE_LARRY (@larry0x) August 24, 2021
Cointelegraph reported on Aug. 20 that in response to the current crisis in Afghanistan, consulting firm Visualize Value launched a series of NFT “care packages”, which are aimed at being sold at the estimated cost of covering a single family’s emergency needs for a month.
Credit card giant Visa also made headlines this week after it purchased a CryptoPunk for $150,000.
