The 31th edition of our curated newsletter.
In today’s newsletter we look at:
The Risks of Token Regulation
The Internet offered us a chance to share all kinds of information. It is little wonder that some people have decided to use it solely for their own benefit. Fraudulent content is a serious issue, and even major online platforms struggle with the challenge of protecting the audience from scammers.
The FCA does not regulate speculative crypto tokens, and consumers are not covered or protected by the Financial Services Compensation Scheme in the event of losses. The article suggests that legislators should make it harder for digital tokens to be used for financial crime while supporting innovation. Moreover, they should consider the extent to which consumers can buy unregulated, speculative tokens and take responsibility for their decisions.
Building Networks of Cryptonetworks
Over a hundred active blockchains have numerous users, applications, security models, and other distinguishing features. Most likely, their number will continue increasing, creating the need for interoperability between the networks. Consequently, last year we saw an explosion in blockchain bridges attempting to unify the landscape.
A Medium piece by Dmitriy Berenzon explains why bridges are essential and outlines different bridge designs as well as their strengths and weaknesses. It also provides an overview of the current bridge landscape and reflects on the future of bridges.
Mercuryo Co-Founder’s Piece
A Bunch of Ape NFTs Just Sold for $24.4 Million
Not a day without breaking NFT deals. Earlier, we’ve told you about Bored Ape Yacht Club taking over Twitter. Well, last week, a bundle of them was sold at Sotheby’s for $24.4 million, putting the deal among the biggest in the NFT space.
Generative NFT collections are blossoming, with all kinds of copycats and twists launching to take advantage of the hype. BAYC was lucky enough to become the second-biggest name in NFT collections, right behind CryptoPunks. The cheapest ape now sells for around $149,000.
Ethereum-powered financial infrastructure paved the way to a new way of making money called Miner Extractable Value or MEV. Apart from getting profits via block rewards and transaction fees, a miner can now make extra cash by auctioning off transaction ordering rights in the blocks they mine. Thereby, MEV has led to more sophisticated custom clients and auction mechanisms.
Flashbots auctions used to be the primary model until Eden Network proposed alternative rules and rewards for miners. This piece takes a deep dive into EDEN token, incentives, and the network’s impact on mining pools and individual miners.
A Framework for Investing in NFTs
The NFT Art ecosystem is the talk of the town, and despite inevitable flaws like illiquidity and oversupply, it is here to stay. Chances are it will soon eclipse the physical art market in terms of capitalization thanks to the combination of art, liquidity, and financial incentives changing the underlying concept of art.
The ecosystem has already attracted a hefty amount of investment, and this trend is likely to continue. Holding has often proved to be a good bet, but in the case of NFTs, what exactly should you hold? The article explores the idea of a decent framework for evaluating profitable and lossmaking NFTs.
Something You Could Have Missed
This is a weekly newsletter curated by our Blockchain Lead Vyacheslav Akhmetov. We cover the most sparkling events in the industry and sharing more about our journey.