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European crypto ETN and ETP report: Wednesday, June 22

Following a positive start to the week, trading in European crypto ETNs and ETPs appeared mixed Wednesday. 

After two days of positive trading, several European crypto investment vehicles began to surrender gains. 21Shares Cardano and Ripple ETPs both traded down on Wednesday, losing 1.88% and 0.22%, respectively. 

Elsewhere, 21Shares Ethereum ETP rose 0.96% and CoinShares Physical Ethereum ETP gained 1.19%. 

The relatively flat day of trading comes as most major cryptocurrencies were trading down. Bitcoin (BTC) and ether (ETH) were trading down Wednesday, losing 3.31% and 5.71% respectively at the time of writing, according to Coinbase data via TradingView.

Here’s how some of the major European crypto investment vehicles performed on Wednesday, June 22:

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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Author: Adam Morgan McCarthy

Ethereum devs to shutter Ropsten, Rinkeby and Kiln testnets after merge

The Ethereum core development team has announced a plan to shut down three of its existing testnets — Ropsten, Kiln and Rinkeby — after the so-called merge.

Testnets are blockchain clones used for experimental purposes. In the Ethereum ecosystem, multiple testnets exist that allow developers to deploy applications and check for bugs free of cost before those are deployed on the mainnet.

However, testnets are deprecated periodically when they are no longer needed. The merge is one such milestone where the Ethereum developers have decided to leave behind three of its testnets.

The merge is a highly anticipated event during which the Ethereum blockchain will swap consensus mechanisms, shifting from from proof of work to proof of stake. The merge is tentatively estimated to occur in September.

Post-merge, the team plans to maintain only two existing testnets, Goerli and Sepolia, an official blog post stated.

Among the deprecated testnet list is Ropsten, the oldest testnet on Ethereum since that was launched in 2016. Notably, Ropsten went through a test merge earlier this month. Still, Ethereum core developers will wind it down in the fourth quarter of 2022, sometime after the merge.

Kiln, a testnet spun in early 2022 for the purpose of providing a post-merge testing environment, and be the first to shut down immediately the merge.

The final name on the list is Rinkeby, a testnet operating since 2017, that is set to close down next year.  

According to the announcement, Rinkeby will not be an “accurate staging environment for mainnet” after the merge and therefore the core devs will halt it anywhere between the second and third quarter of 2023.

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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Author: Vishal Chawla

A Paris crypto conference suffers a curious case of NFT ticket scalping gone wrong

A group of anonymous crypto investors are engaged in a dispute with the organizer of the Ethereum Community Conference (EthCC) conference set to take place in Paris next month. 

The group claims, in a Medium post published today, that the 200 tickets they paid for directly on the Polygon blockchain — in the hope of reselling some of them — were all invalidated and they only received half of their money back. 

Jerome de Tychey, the conference organizer, rebuts their view, telling The Block it was an exploit and that it would send a bad message to return all of the funds.

What makes this case interesting is the conflict between the supposedly decentralized means of ticketing and the centralized control of the conference. Plus the group used a cunning method of sidestepping the main obstacle to reselling the tickets — although this proved ultimately fruitless.

What originally happened?

EthCC is the largest Ethereum conference in Europe. Ahead of the event, it sold tickets as non-fungible tokens (NFTs) through a form on its website. The non-transferable tickets were created through Unlock Protocol and would contain private metadata of the individual who purchased it.

The group of crypto investors say they were originally trying to secure some tickets for EthCC to keep for themselves, to hand out to friends and to sell to others. When they missed out on the early bird tickets that sold out, they decided to snap up some of the next batch before anyone else.

On March 23, when EthCC offered another batch of 300 tickets, the group went straight to the Polygon blockchain and directly paid for and minted 200 of them. They spent $68,000 in USDC on the NFT tickets. Since they bypassed the form on the website, they did not give details of the purchaser — like name and email address — that would be used to create the private metadata.

The group felt that what they were doing would technically work as the EthCC website stated that attendees could generate a signature of a wallet holding one of the NFTs and they would be let in. Therefore, as long as they could redistribute the NFTs to other people’s wallets, they might stand a chance. 

There was one challenge they had to bypass to do this. Not only did the website state that the tickets were non-refundable, but the NFT code itself enforced this. So, the group came up with a workaround. It essentially wrapped the tokens using Gnosis Safe, a construct they could — and tried to — sell on NFT marketplace OpenSea. Buyers would be able to take control of the wrapped token and unwrap it, taking ownership of the NFT itself.

Yet as soon as the conference organizers got wind of this ruse, they shut the whole thing down.

“Unfortunately for the scalper, the tickets are invalid and have no compatible metadata whatsoever,” said de Tychey in a Medium post in March. He called on users to report the OpenSea collection that the group had already set up and said the next batch of tickets would include an extra 200 tickets.

Negotiations over the scalped tickets

The day after de Tychey posted his Medium post, the group got in touch to ask for a refund. According to leaked screenshots of their communication — which de Tychey verified as accurate — they claimed to be a small group of friends looking to attend EthCC who had gotten carried away. 

De Tychey told the group he was concerned about dealing with taxes on the tickets since they had been paid for and that he wasn’t inclined to encourage those trying to exploit the system by refunding them when their attacks don’t work. He said he would offer the group half of their money back — some $34,000 — which they later accepted. 

Yet in today’s Medium post, the group continues to demand the remaining amount. They acknowledge that their intention to scalp the tickets is something that’s “frowned upon” but argue that the tickets should be valid, since the opposite would undermine the use-case of NFTs as on-chain, decentralized tickets. That, or a refund should be issued.

They also highlight that the conference’s treasury — funds earned from ticket sales, sponsors and other initiatives over the years — is currently being used in decentralized finance (DeFi) protocols to earn yield. They argue that the use of funds in this way is reckless. 

In response to these accusations, de Tychey confirmed that the funds — under the ENS name ass.ETH — are being used to earn yield. He said the majority of funds are in Convex and mainly used to generate yield on stablecoins, while some ether (ETH) is being used to take advantage of the current stETH discount. He said that this helps the conference to pay for bigger deposits at bigger venues as it grows. 

De Tychey did acknowledge, however, that there is a risk of Convex going down. “We are taking this risk along with the rest of the ecosystem but we also have money in euros in our accounts at the bank,” he said.

As for the use of NFTs as tickets, de Tychey said he’d introduced them for the first time this year after many participants asked for it. Yet with the combination of ticket scalping and other issues — like credit card payments — that were caused by a lack of battle-tested NFT ticketing applications, he said it wasn’t worth it. 

Next year, he added, “we will go back to no NFTs.”

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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Author: Tim Copeland

How Bored Apes became the foundation for a metaverse

“Imagined communities” was a term coined by political scientist Benedict Anderson in the early 1980s to critique how we define and think of nations.  

“Communities are to be distinguished, not by their falsity/genuineness, but by the style in which they are imagined,” he wrote.

Anderson argued that the idea of a nation is imagined because it entails a sense of communion or “horizontal comradeship” between people who often do not know each other or have not even met.

These words may seem abstract, or even irrelevant to a place like the internet. However, they ring familiar when trying to understand the Bored Ape Yacht Club (BAYC).

In crypto, it can be hard to know what is real. And the word “community” has lost much of its meaning due to liberal application.

But the community that has sprung up around this set of 10,000 cartoonish images of apes looking bored is undeniable. 

That’s in no small part due to the style in which the project’s creator, Yuga Labs, has cultivated it. Now the firm is cashing in — and the Bored Apes are going mainstream. In just a year, the franchise has inspired Hollywood films, TV shows, books, clothing lines, and even themed restaurants. It has also earned Yuga a $4 billion valuation

The firm’s success with its Apes has set the standard for NFT collections and inspired countless copycat projects. But it will be difficult to replicate the style in which Yuga has imagined the Bored Apes community — or the cultural impact it has already made.

‘A destination to gather’

Yuga Labs was created by a team of four pseudonymous people: Gargamel, Gordon Goner, Emperor Tomato Ketchup and No Sass. (Earlier this year, Buzzfeed News revealed that the real names of Gargamel and Gordon Goner are Greg Solano and Wylie Aronow. Yuga Labs later confirmed the identities, and Tomato Ketchup and No Sass revealed their first names as Kerem and Zeshan.) 

Goner told Rolling Stone last year that he and his three co-founders were inspired by the communities of crypto lovers that have blossomed on platforms such as Twitter in recent years. People interested in the NFT world, he said, “craved a destination to gather.” 

Indeed, the Apes themselves were only the first step in what has become an elaborate exercise in digital worldbuilding.

The story officially began in April 2021, with a relatively quiet post on Twitter. 

“Announcing the Bored Ape Yacht Club! 10,000 unique #NFTs where each Ape doubles as membership to a digital club with member-only benefits. For a chance of winning a Bored Ape: 

  1. Follow @boredapeYC
  2. Retweet This
  3. Like and Comment on this tweet.”

At first, the Apes sold for 0.08 ETH. This now seemingly paltry sum was quickly eclipsed on the secondary market. The collection’s floor price hit an all-time high of 152 ETH in April 2022, before leveling to around 72 ETH by mid-June amid a broader market decline. 

In the early days, while Yuga was working to give community members new ways to use their Apes, holders of the coveted NFTs networked via Twitter. 

Many holders turned their Apes into their profile pictures, which helped them discover each other. The hashtags #ApeStrongTogether and #ApeFollowApe led to more connections. 

Veratheape, a BAYC member who bought her Ape shortly after the mint, hails the BAYC bathroom — an online, members-only space — as part of what bound the crowd together. “It was a way to get together during the pandemic,” says Vera, who now regularly holds in-person meet-ups with other Bored Ape holders. 

In the bathroom, users can add one new pixel to a virtual “wall” every 15 minutes to create group paintings. These crowd-productions have included pixelated depictions of Homer Simpson, Donkey Kong from Mario Kart, Charmander and other video game characters, as well as things you might see scrawled on a bathroom stall IRL, such as a penis or the words “fuck Trump.” The space, which was one of the first aspects of “utility” Yuga built into the NFT collection, continues to evolve today.

The BAYC ‘bathroom’ as of October 8 2021. Credit: @dragonseller88

As time has gone on, some of these Ape connections have spilled into real life, too.

Parties for Bored Ape holders have coincided with larger crypto conferences such as Paris Blockchain Week or Bitcoin 2022 in Miami. For access, users have to log into their wallet and prove their Ape is actually their Ape upon booking.

Vera says that some Ape owners come to these events dressed as the Bored Ape they own. “IRL events are another layer of trust, you dox yourself through them.” 

‘NFT OG culture’

Another thing that binds Ape holders together is a shared sense of identity — in the NFT world and even in popular culture.

“Bored Ape culture is NFT OG culture,” explains Leo Chen, another Ape holder. “The ‘bored’ part is important because it’s more expressive than a punk. It was the first project to bring more emotion and detail to its NFTs,” he adds.

The visual aspects of the Bored Ape identity blend with the less tangible.

In a rare interview with The D3 Network, Yuga Labs CEO Nicole Muniz said the Bored Apes brand draws people who “want to be on the edge of culture” and “want to be part of the next innovative thing and experience.”

Decentralization, she said, is key to being able to define your own identity in web3. Part of this is allowing Apes to cultivate an online identity that exists separately from other structures. In practice, that means Ape holders can do what they want with the intellectual property associated with the NFT.

BAYC has been unique among NFT projects, in that it has allowed holders of Bored Apes to do whatever they like with the images. Other popular NFT projects, like CryptoPunks, have been more restrictive. (Incidentally, Yuga Labs purchased the intellectual property for CryptoPunks in March.)  

The world’s first metaverse NFT pop group, KingShip, may never have happened without holders owning the commercial rights to their Apes. Universal Music announced the band’s formation in November last year, spearheaded by the “next-gen Web3 label” 10:22PM. 

Kingship consists of a Mutant Ape (more on this later) and three Bored Apes. Their manager calls her Ape Noët All.

Kingship. Credit: Universal Music Group

Celine Joshua, who works in content and strategy at Universal Music, engineered the agreement. Now she plans to steer the group on the creation of new NFTs, music and “community-based” products. Bored Ape and Mutant Ape owners will have early access to all KingShip NFTs, experiences and narrative selection. 

Then there is Jenkins the Valet; a Bored Ape with NFTs to sell, a forthcoming book that is ghostwritten by a famous author, and a troop of around 4,100 other Ape owners signed up via licenses to participate in the project. 

Two friends, codenamed SAFA (@seeapefollowape) and Valet Jones, cooked up the character in May 2021, following the initial BAYC mint. All it took was an idea, several thousand dollars to buy the Ape outright, and a community grant of $2,000 from Yuga.

Jenkins the Valet’s original headshot.

“We had started to talk about an idea that NFT avatars could be like characters, they could be completely separate from the human being that manages the account,” says Valet Jones. “Like, they could just exist on their own.”

Over the last year, Jenkins has gained a Hollywood agent, a devoted fan club, and now a tranche of venture capital backers. The project picked up $12 million in VC money, from investors such as a16z, Dapper Labs and musician Lionel Richie. Other funding came through the sale of  “writers room” NFTs, for which users paid 0.04 ETH at the initial mint. 

According to Jenkins’ Twitter bio, he is writing the first “community generative NFT,” a “tell-all” memoir, which will be ghostwritten by author Neil Strauss. Strauss is widely-known as the man behind the best–selling book “The Game,” which had made popular the term “pick-up-artist” and chronicles his times in the “seduction community.” 

Jenkins’s new book will be produced with content from his owners as well as by writers-room NFT holders. This club within a club gives access to an online portal, primarily a space where members can vote on plot decisions and license their own IP to the book. It gives holders control of “the stories that define the metaverse,” according to the project’s OpenSea page. With different levels of membership, the project will distribute members-only apparel and give different levels of autonomy depending on which NFT has been bought. 

“We believe, like, wholeheartedly, that the next generation of household characters will be born on the blockchain,” says Valet Jones.

Planet of the Apes

Jenkins the Valet’s growing empire may be a glimpse at what is to come. Whatever the metaverse is, Yuga has been trying to build it since shortly after launching the Bored Apes.

First, it introduced new characters.  

In June 2021, Yuga created the Bored Ape Kennel Club (BAKC). This was a new derivative collection, consisting of a further 10,000 NFTs airdropped to BAYC holders’ wallets. These are unique digital dogs “bred” as companions to Apes. At the time this was novel. This kind of thing has now become a common part of the NFT landscape.

A second project hit collectors’ wallets at the end of August, with the next iteration: Mutant Ape Yacht Club (MAYC). This was a little more complicated. 

Yuga Labs set out to create 20,000 of these new creatures. Ten thousand of them would reward Bored Ape owners with new NFTs based on the traits of their original Bored Ape, created by exposing an existing Ape to “Mutant Serum” of varying potency. The other 10,000 would be designed to welcome newcomers into the Bored Ape ecosystem with a lower cost of entry. 

Next, the Bored Ape world got its own currency: ApeCoin, launched in March in partnership with venture capital and blockchain gaming firm Animoca Brands, one of Yuga’s investors. Again, Yuga rewarded its community. A hundred and fifty million out of 1 billion tokens were airdropped to BAYC holders’ wallets.

“ApeCoin DAO is supported by Ape Foundation, and will empower the community to build blockchain games and services, host events (in the metaverse or IRL), and create digital and physical products…along with anything else you can dream up,” Yuga said at the time. 

At its peak, the coin had a market cap of almost $7.5 billion and trades on major exchanges — as of mid-June, it was worth $1.4 billion. $APE holders can participate in governance via the ApeCoin DAO.

Digital real estate was the next piece. In May, Yuga held a land sale for Otherside, a blockchain-based virtual world. The project sold out all the available 55,000 “Otherdeed” land NFTs within three hours of its public sale. The rush to buy crashed the Ethereum blockchain.

The offering accepted only ApeCoin. Priced at 305 ApeCoin, worth about $5,800 at the time of mint, it brought in 16.7 million ApeCoin ($317 million), making it a record-setting NFT mint. The remaining 45,000 tokens will be airdropped to existing holders of BAYC and MAYC NFTs.

What’s on the Otherside?

Where Otherside — and Yuga Labs itself — goes from here is anyone’s guess. Yuga Labs declined to be interviewed for this piece. 

As ever, the devil is in the details. With the latest Otherside metaverse land drop, it seems the fine print is already raising questions about Yuga’s evolving business model and partnership with Animoca. 

As noted by Punk 6529 on Twitter, Otherdeeds, which are the key to claiming land in the Otherside, are the first object in the Yuga universe with no commercial rights awarded to holders. The new contracts offer non-commercial rights only, with Animoca as the counterparty.

Screenshot from the Otherside promo video.

Alongside this, Kodas, the creatures that live in the Otherside, can only be claimed by purchasing a plot of land. Owners have been given commercial rights to these, but with more restrictive language than in previous BAYC contracts. 

Rights are only available as part of a license and subject to the agreement, as opposed to the Bored and Mutant Ape free-for-all, which states “you own the underlying Bored Ape, the Art, completely.” The contract also restricts Koda owners from creating derivative NFTs of their creatures.

This suggests that Yuga’s digital reality will have intellectual property restrictions. But what other characteristics will it have? What kinds of commerce will happen there? What kinds of games will be played? Will it be accessible via augmented reality and or virtual reality? Will it be exclusive to Yuga NFT holders?

One thing is clear: the foundation will be Yuga’s imagined community of Bored Apes, and their devoted holders.

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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Author: Lucy Harley-McKeown

Prime Trust raises $107 million to add new crypto products

Digital asset infrastructure firm Prime Trust has raised $107 million in a Series B funding round to expand its product suite.

Investors included FIS, Fin Capital, Mercato Partners, Kraken Ventures, Commerce Ventures, William Blair & Company, Decasonic, University Growth Fund, Gaingels, GateCap Ventures and Seven Peaks Ventures, according to the company’s announcement.

Prime Trust serves nearly 700 fintech and digital asset clients, including some crypto largest startups like Dapper Labs and Binance US.

The firm had raised $64 million during the Series A funding round in July 2021, so the new round brings the total funds raised to around $170 million. “This strategic investment will provide critical operational expertise to further scale Prime Trust into new offerings,” said Prime Trust CEO Tom Pageler, “including wealth products, as well as web3 and DeFi products.”

The newly-raised capital will be used to launch the Prime Trust Crypto Individual Retirement Account (IRA). The new platform — which the company claims is the first with a “seamless, single API integration” — will allow users to invest retirement funds in cryptocurrencies.

Prime Trust said it will also use the new funds to “enhance our ability to support tokenized products” and to invest in the security and stability of its platform. 

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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Author: Kharishar Kahfi

Powell says the Federal Reserve is tracking crypto market volatility ‘very closely’

Jerome Powell, chairman of the Federal Reserve, told a Senate committee Wednesday that officials at the US central bank are watching the crypto market closely amid a period of heightened volatility.

Powell’s comments came in response to a question from Senator Kyrsten Sinema (D-AZ) about the impact of recent crypto market volatility on the Fed’s operations, including any macroeconomic implications. 

Powell said the Fed is watching the ongoing situation “very carefully” but added that the US central bank is “not really seeing significant macroeconomic implications, so far.”

“But I think the principle implication is really what we’ve been saying and what others have been saying for some time, which is that in this very innovative, new space, really there is a need for a better regulatory framework,” Powell went on to say, adding:

“The same activity should have the same regulation no matter where it appears, and that isn’t the case right now because a lot of the digital finance products, in some ways, are quite similar to products that have existed in the banking system or the capital markets but they’re just not regulated the same way. So we need to do that.”

Bitcoin’s price, and prices for other digital assets, has gyrated in recent days, having fallen below $18,000 during weekend trading. The price of bitcoin is about $20,800 at press time, according to data from Coinbase.

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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Author: Michael McSweeney

Congressman Jim Himes puts out white paper for digital dollar

With heightened political attention on digitizing the dollar, one member of Congress has laid out his vision.

On June 22, Rep. Jim Himes (D-CT) released a white paper called “Winning the Future of Money: A Proposal for a US Central Bank Digital Currency.” It includes a general summation of CBDC adoption globally, as well as the traditional appraisal of pros and cons of a CBDC. However, the white paper is clearly supportive on Congress’ move to authorize the Federal Reserve to issue a CBDC. 

“The longer the United States government waits to embrace this innovation, the further we fall behind both foreign governments and the private sector,” Himes said in a statement.

A moderate, Himes sits on the House Financial Services Committee, which recently held testimony from the Federal Reserve’s vice chair, Lael Brainard. Chairwoman Maxine Waters (D-CA) at the time declared of CBDCs that “America can’t be left behind,” a sentiment that Himes’ proposal echoes in its title.

As that hearing illustrated, the subject of a CBDC has become increasingly partisan, with Republicans concerned about greater financial surveillance and Fed involvement in the economy. 

Today’s whitepaper highlights that “a U.S. CBDC would present novel and serious privacy challenges.” While Himes’ proposal maintains the need for commercial banks to handle retail user accounts, it specifies an “account-based” rather than “token-based” structure, entailing “strong user identification processes that require intermediaries to certify the identity of wallet holders.”

Himes is just the latest to throw his hat into the ring on the issue of digital cash. Stephen Lynch (), also of the Financial Services Committee and the chair of the FinTech Task Force, recently introduced a proposal for E-Cash, using a non-blockchain system of private wallets. 

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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Author: Kollen Post

Miner Bit Digital made $8 million in bitcoin mining revenue in Q1 2022

Crypto mining company Bit Digital brought in $8 million in bitcoin mining revenue and $0.5 million in Ethereum in the first quarter of 2022, the firm said on Wednesday.

During the same time period, net income was $2.9 million, the company said.

Last year, Bit Digital’s total bitcoin mining revenue was $96.1 million and the company’s net income was $52.7 million. 

“Unsurprisingly, our first-quarter results faced difficult comparisons to the prior year, when a majority of our fleet was deployed in China, and network hash rates were lower,” the company said in a statement.

Additionally, it connected its first-quarter results with the declining bitcoin price since late 2021, which has coincided with an increase in network hash rate and had an impact on margins across the industry. “Our strong balance sheet positions us to successfully navigate these market headwinds,” the statement read.

The firm made a total of 194.48 BTC and 189.26 ETH during the first quarter. According to an operational update earlier this month, it mined 30% less bitcoin in May than in the previous month. Bit Digital held 793.6 BTC and 316.1 ETH as of May 31.

The firm also said that it ended the quarter debt-free, with $70 million in cash and digital assets and all of its mining machines fully paid. 

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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Author: Catarina Moura

Shopify allows merchants to add utility to NFTs

E-commerce platform Shopify is giving e-store merchants a new way to connect with loyal customers through non-fungible tokens (NFTs). 

Shopify customers can now connect their crypto wallets to stores on the platform to validate they own specific NFTs. This activation will then give them access to things pre-sales for drops, experiences in real life and exclusive content or merchandise. The company calls this ‘tokengated’ commerce. 

The feature was already being tested in beta-mode, by invitation only, to a select group of merchants with an NFT collection, but is now available to all merchants anywhere in the world.

The news comes as digital asset conference NFT.NYC takes place in Times Square. On Tuesday, entrepreneurs, NFT artists, designers, and businesses took the stage of Edison Ballroom to discuss fashion, e-commerce and NFTs. One theme that emerged from the panel discussions was the increasing role that utility will play in ensuring NFTs hold their value longterm. 

Yesterday, The Block reported that payments firm MoonPay is launching a utility NFT minting service. 

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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Author: Anushree Dave

Coinbase and Robinhood shares drop as Binance.US cuts bitcoin trading fees

Coinbase and Robinhood Markets shares fell on Wednesday following the announcement that Binance.US will offer zero-fee trading in certain bitcoin pairs.

Shares in crypto exchange Coinbase were down 5.7% to $54.22 at 9:32 a.m. ET, according to Nasdaq data via Trading View. Robinhood, a rival app for trading stocks and crypto, dropped 1.1%. 

This comes after Binance.US, the American affiliate of the prominent crypto exchange Binance, announced that it has cut bitcoin trading fees to zero for select pairs. As of today all new and existing customers of Binance.US will pay no fees when trading bitcoin against the US dollar, tether (USDT), USD Coin (USDC) or Binance USD (BUSD).

The announcement comes at a time when crypto exchanges are facing tough economic headwinds amid a broader market downturn. Last week, Coinbase announced it was laying off 18% of staff to prepare for difficult market conditions ahead.

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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Author: Adam Morgan McCarthy


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