Category: Blockchain

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Australia Blockchain Crypto News Gaming Immutable X

Australian Blockchain Company Immutable X Cuts Staff Amid Crypto Crunch

Melbourne-based Australian crypto gaming startup Immutable has this week laid off at least 20 staff, many of them core members of its NFT trading card game, Gods Unchained.

News of the redundancies hit social media when one of the game’s original developers, James Wakeham, tweeted he’d been tapped on the shoulder and was now looking for work:

The layoffs, which affect an estimated 6 percent of Immutable X’s total workforce, were jointly announced by recently appointed chief studio officer Justin Hulog and Immutable CEO and co-founder James Ferguson. Staff on leave were given just 24 hours’ notice to attend a meeting at which the pink slips were handed out.

Exponential Growth Gives Lie to Layoffs

Despite the layoffs, Immutable X appears to be growing exponentially. A spokesperson for the company said it had more than doubled its full-time headcount from 120 at the beginning of the year to 280, with plans to reach 360 by the end of the year.

Regarding this week’s layoffs, the spokesperson added that the company had “made a difficult choice” in conducting “a small reorganisation within Gods Unchained to help better enable us to achieve our goal of creating the next generation of Web3 games”.

That said, Gods Unchained’s player base has more than halved since early April from 22,000 unique players logged into the free-to-play game down to 10,000, as per data from Cards Unchained, a privately run site tracking the game. Immutable’s cryptocurrency token, IMX, which is used to trade assets in Gods Unchained, has also seen its value fall from about US$11 in November 2021 to just above $1.

However, according to a bullish internal memo circulated among Immutable staff this week, a reallocation of resources would see the company investing in roles to enable Gods Unchained to scale “to millions of players over the next year”.

Immutable X Still Aggressively Hiring

Post-redundancies, the only remaining workers on Gods Unchained are junior and C-suite staff. However, Immutable is looking to hire a creative director and UI (user interface) designer specifically for the project, as well as listing 22 other general vacancies for remote workers across Australia.

In February this year, Immutable X partnered with retail game giant GameStop to create its new NFT marketplace, as well as establishing a US$100 million fund to support innovation in the NFT space. And just over a month ago, the company launched a US$500 million developer and investment fund.

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Blockchain Hackers Harmony

Harmony Community Outraged by Proposal to Repay Victims of $100 Million Hack

Members of the Harmony (ONE) community have reacted angrily to a proposal from the Harmony team to reimburse victims of last month’s Horizon bridge hack in which almost US$100 million of users’ assets were stolen:

The proposed plan would see victims recompensed not from treasury funds but through the minting of billions of new ONE tokens, requiring a hard fork of the blockchain and potentially resulting in further devaluing of the token and more losses for holders.

Harmony Team Offers Two Reimbursement Options

The reimbursement proposal from the Harmony team gives community members two options, the primary difference between them being how many new tokens will need to be minted. ONE holders will have the opportunity to vote on the option they prefer, which will then be implemented by the Harmony team.

The Harmony team claims that issuing new tokens is the best way to compensate victims, explaining that paying compensation directly from the project’s treasury could endanger its very survival:

We decided against using the foundation treasury in the interest of the longevity and wellbeing of the project, as reimbursing from the treasury would greatly hinder the foundation’s ability to support the growth of Harmony and its ecosystem.

Harmony team

Under the first option, victims of the hack will be compensated for 100 percent of their losses, requiring the minting of 4.97 billion new ONE tokens. The second option is reimbursement of only 50 percent of victims’ losses, requiring the minting of 2.48 billion new tokens.

Both options would take three years to complete, with victims required to claim 1/36th of their share of tokens each month over that period. The Harmony team says a slow drip feed of tokens to victims would “prevent market disruptions from a sudden increase in supply of ONE tokens”.

Harmony’s current total token supply is 13.1 billion, meaning that by the end of the reimbursement scheme its supply will have inflated by between 19 and 38 percent.

Community Not Impressed

Unsurprisingly, the Harmony community is generally unimpressed with this proposal. Most holders are concerned about the massive inflation of supply and the effect this will have on the value of their investment:

Holders’ concerns are likely justified – for the price of ONE to grow during the three years of the proposed reimbursement scheme, it would have to overcome the injection of an additional 69 million or 138 million tokens (depending on the option) each and every month.

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Australia Blockchain Crypto News

Aussie Blockchain Firm ‘Security Matters’ Lists on Nasdaq in $518 Million Merger

Anti-counterfeit tech company Security Matters will delist from the Australian Securities Exchange and merge with a SPAC (special purpose acquisition company) on the Nasdaq in a deal that will increase its value more than 14-fold:

The soon-to-be merged Security Matters and Nasdaq-listed Lionheart III, a new company to be known as SMX, will be registered in Ireland. Together, both companies command a pro forma equity value of US$360 million (A$518 million).

As part of the deal, Security Matters was valued at US$200 million on a pre-revenue basis – a huge increase on its A$18.3 million (US$12.7m) market capitalisation on the ASX.

Specialist in Digital Markers

Originally a blockchain startup focusing on traceability for recycling and the circular economy, Security Matters has developed a molecular marker that permanently marks solids, liquids and gases to enable identification. That marker then allows a digital twin to be stored on the blockchain, which can be used for authenticating products or providing traceability.

The company has also developed conveyor belt technology to read digital markers for sorting and recycling facilities. Its previous joint ventures include assisting Western Australia’s Perth Mint to track gold and ensure the supply chain is ESG-compliant.

Nasdaq Places Higher Value on SMX

Security Matters CEO Haggai Alon said the business had been undervalued by local investors, who still favoured natural resources-based companies. “The Nasdaq, perhaps the most liquid market in the world, emphasises technology and other high-growth sectors like ours,” Alon told the Australian Financial Review.

We are on the precipice of commercialising our technology across a number of large global markets – from gold to food and wine, to fashion, rubber and plastics – and the valuation reflects that.

Haggai Alon, CEO, Security Matters

In February this year, ASX chief executive Dominic Stevens predicted that more crypto companies would list on the Australian sharemarket. Security Matters would appear to be at least one outlier swimming against the tide.

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Australia Blockchain Crypto News Regulation

Blockchain Australia CEO Departs Without a Replacement

Steve Vallas, the CEO of Blockchain Australia, has announced via a LinkedIn post that he will step down from his position, leaving the company without an immediate replacement.

Vallas will officially depart Blockchain Australia on July 29, after originally declaring he would step down as CEO in a LinkedIn announcement posted three months ago.

In both his resignation posts, Vallas recognised his board (past and present), making special mentions of those who had played key roles during his time at Blockchain Australia. He also shared some kind words regarding the mission of his company and the industry:

https://www.linkedin.com/posts/stevevallas_the-best-endings-are-new-beginnings-after-activity-6924474300515201024-Mywl/

The future of the blockchain industry is extraordinarily bright and it’s been a privilege to play a part in this development.

Steve Vallas, original resignation announcement

Vallas’s initial resignation post stated that the “formal search for a new CEO [would] begin shortly”. However, Blockchain Australia has yet to find a suitable replacement for Vallas, leaving the position vacant on his exit.

Blockchain Australia was not Vallas’s only duty. He remains deputy chair of the National Blockchain Roadmap Steering Committee, as well as vice chair of the ASEAN (the Association of South-East Asian Nations) Blockchain Consortium. He also holds a position on the ASIC Digital Finance Advisory Panel, advising on financial and regulatory technology matters.

Blockchain Australia Operations

Blockchain Australia has taken multiple influential steps toward improving the sector over the past two years. In February 2021, the organisation terminated the membership of Gold Coast-based cryptocurrency Qoin. The reasoning behind this was outlined in a Notice of Member Disciplinary Resolution, which stated that Qoin had been targeting retail merchants across Australia.

Following this, Blockchain Australia began seeking “safe harbour” for crypto businesses as regulatory uncertainty ran rampant. The organisation petitioned for clarity regarding the regulatory framework for cryptocurrencies in Australia and, alongside industry-related partners, it recommended a set of regulations to the federal government with hopes of addressing these issues.

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Audius Blockchain Crypto News DeFi NFTs Tokens

Now You Can Tip Your Favourite Musician Through Blockchain Streaming Service ‘Audius’

Blockchain-based music streaming service Audius is enabling fans to tip artists using $AUDIO token, the platform’s native cryptocurrency.

More Forms of Monetisation to Come

“We’re creating new ways for our seven million active monthly users to show their favourite artists how much they appreciate their work,” Audius co-founder and CEO Roneil Rumburg said in a statement. “But this is just the first piece of monetisation – in the coming weeks and months we look forward to expanding on monetisation with more options for fans and artists alike.”

The company also plans to introduce “ways to tip that do not require tokens”. The platform already offers fans the opportunity to bankroll their favourite artists by harnessing the power of DeFi. They can also benefit from music sales as part copyright owners, thanks to NFTs.

Launched in 2018, Audius hosts over 250,000 artists who have released a combined one million tracks on the platform. “A lot of experiments have been run over the years to evolve the music industry’s business model,” said Rumburg. “But we’ve yet to see a platform that strikes the right balance, improving the music experience for the parties that matter most – artists and their fans. 

Audius is laying the groundwork for a new era where artists reclaim control over their work and their earning potential, all the while giving fans a closer relationship to the music they love. Tipping is a small first step in this direction.

Roneil Rumburg, co-founder and CEO, Audius

Artists including Katy Perry, Nas, Jason Derulo, Pusha T, the Chainsmokers and Steve Aoki have all invested in Audius. “Everyone who uploads to Audius can be an owner; you can’t say that about any other music streaming platform,” says rapper/entrepreneur Nas.

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Blockchain Crypto News Ethereum

ETH Rallies on September ‘Soft’ Timeline for Upcoming Merge

Ethereum core developer Tim Beiko has said that Ethereum’s long-awaited upgrade, the Merge, may take place from September 19, pumping ETH’s price 8 percent since the announcement.

‘It’s All Coming Together’

According to recent tweets from the Ethereum community, Goerli will be the last testnet to go through the proof-of-stake transition around August 11. If everything goes according to plan, the Ethereum mainnet merge could take place in the week starting September 19:

However, Beiko repeatedly said on Discord and Twitter that the timeline might change again. According to Beacon Chain community manager superphiz.eth, this merge timeline “isn’t final, but it’s extremely exciting to see it coming together”:

If all goes well, the Ethereum blockchain could finally transit from its current energy-intensive proof-of-work (PoW) blockchain to a more environmentally friendly proof-of-stake (PoS), providing users with faster and cheaper transactions.

Success For All Testnets So Far

So far, all testnets moved into PoS have thrown successful results. Last week, the Ethereum Foundation moved the Sepolia testnet to PoS.

On June 10, the Ropsten testnet went live on Ethereum’s new PoS chain, which Beiko referred to as a “dress rehearsal for node operators”. Once the final testnet goes live on the PoS chain, it will be Ethereum’s turn after seven long years.

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Blockchain NFTs Polygon Terra

Terra-Based Projects Begin Mass Exodus to Polygon After Terra Implosion

More than 48 projects originally built on the Terra blockchain have begun to migrate to Polygon in the wake of Terra’s sudden collapse in May:

According to Polygon Studios CEO Ryan Wyatt, some of the projects migrating to Polygon include the non-fungible token (NFT) marketplace OnePlanet, the multiverse platform Lunaverse, and the play-to-earn-game Derby Stars.

OnePlanet’s Ark*One Initiative Spurs Migration

Following Terra’s collapse, OnePlanet launched an initiative known as Ark*One, whose purpose was to save innovative NFT projects built on the failed blockchain. Ark*One has been a driving force behind the migration from Terra to Polygon, with 48 NFT projects comprising 90 NFT collections having applied for financial and technical support through the initiative.

Applications to Ark*One closed on June 15. This date also marked the end of Polygon Studios’ financial support to the initiative. However, Ark*One will continue providing technical support to projects wanting to migrate from Terra to Polygon.

Why Polygon?

One of the main reasons so many Terra projects have chosen to migrate to Polygon is that it offered substantial financial support to entice projects. In the weeks after Terra’s collapse, Polygon Studios launched a multimillion-dollar fund specifically to attract projects from Terra onto the Polygon blockchain.

OnePlanet has also cited several reasons Polygon was an attractive destination, beyond simple financial support, writing in a blog post:

Taking into consideration the key factors such as mass adoption, market opportunities, stability and foundation-level support, we found that Polygon is currently the most prominent chain with so many big projects and entities onboarding … Moreover, Polygon has the low gas fee of $0.0025 on average and high throughput of being able to process up to 7,000 transactions per second, which shows huge potentiality to bring a larger audience to the chain. 

OnePlanet blog
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Blockchain NFTs Polygon Reddit Social media

Reddit Launches NFT Avatars, But Won’t Call Them NFTs

Popular social media platform Reddit will launch a new NFT avatar collection in the coming weeks leveraging the Polygon blockchain – however, it has avoided any reference to non-fungible tokens, instead exclusively using the term “collectible avatars”:

As well as being blockchain-based, the new collectible avatars’ primary difference from Reddit’s existing avatars is that they’ll be available for individual sale – all other Reddit avatars are either free or are made available when a user subscribes to Reddit Premium.

And despite their being blockchain-based, Reddit users will not need to have any cryptocurrencies or a crypto wallet to buy and store the new avatars.

There has been speculation as far back as October 2021 that Reddit may be planning to launch its own NFT platform when it posted a job ad for a senior backend engineer with NFT expertise. Since then, Reddit has added other NFT-based features, such as the ability for users to change their profile picture to an NFT, which launched in January of this year.

Reddit’s ‘Collectible Avatars’ Created by Artists

Reddit’s new avatars will be created by some of the platform’s most passionate independent artists. Participating artists will receive payment each time one of their avatars is purchased and will also be entitled to royalties from secondary sales of their avatars on external NFT marketplaces.

Purchasers of the new NFT-based avatars will acquire usage rights to the artwork both on Reddit and outside of the platform. 

Reddit also says users who purchase one of the new collectible avatars will receive unique benefits on the platform, however the only specific benefit mentioned in the announcement was owners’ profile pictures having a “glow-like effect” when they appear in the comments section of posts.

Potential Benefits in Blockchain Tech

Reddit says it chose to use the Polygon blockchain for its new NFT-based avatars because of the network’s relatively low transaction costs and stated commitment to sustainability measures.

Reddit users will be able to use their local fiat currency to purchase the new NFT-based avatars and they’ll be able to store them in Reddit’s built-in crypto wallet, which is known as the Vault. 

Using blockchain technology to power its new avatars provides several benefits, Reddit says, writing in its announcement:

Right now, blockchain technology provides purchasers with ownership and portability of their collectible avatar, and provides artists with a way to have their work live beyond the virtual walls of Reddit (and be compensated for future sales of their art).

Reddit team

It also sees blockchain as a technology with potential to further empower communities built on its platform:

We see blockchain as one way to bring more empowerment and independence to communities on Reddit. Reddit has always been a model for what decentralisation could look like online; our communities are self-built and run, and as part of our mission to better empower our communities, we are exploring tools to help them be even more self-sustaining and self-governed.

Reddit team
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Blockchain Crypto News Ethereum

ETH Devs Activate ‘Sepolia’ on Testnet, Inching Closer to ‘The Merge’

Ethereum is officially one step closer to “The Merge”, a long-awaited move to a proof-of-stake blockchain from its current proof-of-work consensus mechanism.

On July 6, Ethereum test network Sepolia moved over to proof of stake, leaving only one step remaining before the entire network completes the transition, expected to happen later this year:

Two Testnets Down, One to Go

Developers have now tested the merge on two public testnets: Ropsten, which successfully merged with the original proof-of-work mechanism on June 8, and now Sepolia. The next step in the process will be for a test to take place on the Goerli testnet. When that is completed, the entire network will securely use a proof-of-stake blockchain:

Ethereum developers also agreed to delay the Ethereum ‘difficulty bomb’, which is designed to intentionally increase block difficulty exponentially over time. After a certain period, it becomes almost impossible for validators to mine a new block, thereby discouraging miners from remaining in the proof-of-work consensus.  

Ethereum’s journey to a proof of stake has been a long time coming, with the process suffering many delays. The Merge is expected to be completed by the end of 2022.

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Blockchain Crypto News Ethereum Gaming Metaverse NFTs Stablecoins Stratis

Stratis (STRAX) Token Soars 160% Amid NFT, Gaming and Stablecoin Announcement

Ethereum-based, decentralised blockchain platform Stratis has witnessed its native token STRAX rocket 103 percent in one 24-hour period this week, cooling off from a rally that at one point reached 160 percent.

STRAX took off minutes after the project announced a series of updates, including a new ticketing system via which NFTs will be used to validate entry to venues and distribute rewards at events.

Stratis has also foreshadowed several new blockchain-powered video games set to hit its mainnet later this year, along with issuing an update on its launch of a stablecoin pegged to the British pound called Great British Pound Token (GBPT).

PwC to Provide Audit Services for New Stablecoin

The platform is currently working with Price Waterhouse Coopers (PwC) to complete regulatory registration and expects the partnership to be ongoing with PwC providing auditing services for the GBPT stablecoin’s implementation.

According to the Stratis announcement, “With entities like Visa increasingly willing to accept stablecoin payments, there’s a huge opportunity to simplify cross-border and wholesale payments using blockchain technology.”

Prior to this week’s STRAX price rally, the team behind the protocol teased the upcoming launch of Sky Dream Mall, a new metaverse project powered by the Stratis blockchain:

STRAX Defies Market Conditions

All of which is in clear defiance of the current bear market and the onset of the so-called ‘crypto winter’. These are arguably the most positive developments in the sector since April, when blockchain-based music platform Opulous saw the price of its token, OPUL, rally 175 percent after it announced DeFi staking, CEX listings and S-NFT sales.

You’d have to go back even further to find another one-day performance to rival that of STRAX this week. In February this year, the utility and governance token for the DEX Injective Protocol rallied more than 100 percent in a single day following the listing of Cosmos (ATOM) perpetual futures on the platform.