Category: NFTs

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Crypto News NFTs

NFTs Good for Business: Nike and Gucci Rake in $260 Million in Sales

Dune Analytics has released data that illustrates the true revenue-earning potential of NFTs for prominent lifestyle labels, with Nike and Gucci alone reportedly raking in approximately US$260 million in sales between them.

Fashion and leisure brands Dolce & Gabbana, Adidas, Tiffany, Nike and Gucci are reportedly reaping the rewards of their NFT seeds, following the release of new NFT revenue data showing the total NFT revenue for 13 companies. Nike sits at the top of the board with a whopping US$185 million:

According to the data, Nike has generated almost US$1.3 billion in transaction volume from secondary NFT trading, which adds to its primary sales (US$93 million) and generated royalties ($92 million). Nike has more than 14 collections under its belt that are working to generate these funds, with a significant portion of these (such as CloneX) attributed to the company’s recent acquisition of RTFKT. This has enabled Nike to make 6,362 ETH in the past month alone, despite the crypto winter.

While many of the companies on this list seek to purely optimise ‘revenue per user’ through NFT drops and merchandise, others are using NFTs as an opportunity to establish deeper connections with their fans. Regardless of the motivation behind corporate involvement, the proof is in the pudding when it comes to the ongoing influence NFTs have on profits.

Almost $3B Spent on Minting in 2022

Not only has an extreme amount of money been spent on the purchase of NFTs, but also on the minting of them. A recent report from blockchain analytics platform Nansen found that NFT fans have spent US$2.7 billion solely on the minting of art in 2022 so far. The findings were based on product activity from over 1 million unique wallet addresses.

However, just a week ago a lengthy list of celebrities found themselves in hot water with US consumer watchdog group Truth in Advertising. The group sent warning letters to 19 celebrities, including socialite Paris Hilton and pop star Justin Bieber, regarding the alleged shilling of NFTs via social media.

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Bored Ape Yacht Club Crypto News CryptoPunks NFTs

CryptoPunks Surges Amid $55 Million in Bored Ape NFTs at Risk of Liquidation

The Ethereum floor price of the world’s largest NFT collection, Bored Ape Yacht Club (BAYC), dropped to its lowest level since the start of the year but has since managed to rally slightly. Yet for a brief moment, the second-largest NFT collection, CryptoPunks – also owned by Yuga Labs – saw its floor price top that of BAYC:

Debt Crisis Prompts Liquidation Fear

Many owners of BAYC and CryptoPunk NFTs, who used the collectibles as collateral to take out loans in Ether, have failed to repay their debts. The situation could trigger the NFT sector’s first massive liquidation. As BAYC struggles, CryptoPunks topped the floor price of the veteran NFT collection for the first time since March, according to NFT Price Floor.

Lending service BendDAO could liquidate up to US$55 million worth of NFTs to recover its loans, in fears that the so-called “health factor” of its debts could dip below one. (An NFT collection’s floor price is a key facet in determining a collection’s health factor.)

CryptoPunks Soldiers On

The past couple of weeks have been good for CryptoPunks, with exciting projects in its view. Early this month, famed jewellery brand Tiffany and Co announced the release of limited edition CryptoPunk pendants. In the midst of the crypto winter, a rare NFT from the collection sold for 2,500 ETH, or approximately US$2.6 million.

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DAO DeFi Ethereum NFTs

BendDAO Hit With Insolvency Crisis, Only 12.5 ETH Left

NFT lending protocol BendDAO is facing the serious prospect of insolvency as the amount of Wrapped Ether (wETH) remaining in its smart contract dwindles to just a fraction of what is owed to lenders. 

According to Twitter user and NFT market researcher NFTStatistics.eth, as of August 22 BendDAO only had 12.5 wETH while it still owned lenders an estimated 15,000 ETH – quite the shortfall:

This precarious situation has arisen partly because of a crash in the value of many leading NFT collections, including Bored Ape Yacht Club (BAYC) and Mutant Ape Yacht Club (MAYC).

BendDAO’s Model Based on NFT Value

BendDAO is a DeFi platform that allows users to borrow ETH using ostensibly ‘blue chip’ NFTs, such as BAYC, as collateral. The ETH that NFT owners borrow comes from other users who have deposited their ETH to the platform as a way to earn interest on their holdings. It’s these lenders who are at risk of being left holding the bag.

On paper, BendDAO’s model seems risky and, as it turns out, it is. The lender launched last year while the NFT market was particularly exuberant but the market has since taken a nosedive, exposing just how vulnerable this model is to market volatility. 

What’s Happening Now?

BendDAO is trying to boost its ETH reserves by adjusting the rate of interest charged to borrowers and paid to lenders. 

Statistics from the BendDAO website show that ETH borrowers are now required to pay over 100 percent interest on their loans (this is partially offset by 15.88 percent rewards paid in BendDAO’s own BEND token). 

Lenders are being offered a whopping annual rate of 66.9 percent on their ETH and a further 4.99 percent reward paid in BEND. Due to these high interest rates, borrowers’ levels of debt grow ever larger as the value of their collateral continues to fall.

What Next For BendDAO?

NFTStatistics.eth points out that most of the NFTs on BendDAO that have defaulted and gone to auction currently have no bids, citing two key factors: 

  1. BendDAO requires bids to be greater than the level of debt owed by the borrower and greater than 95 percent of the NFT’s OpenSea floor price; and
  2. Bidders are required to lockup their ETH for 48 hours.

NFTStatistics.eth also notes that as borrowers accrue more debt and NFT floor prices continue to fall, we’ll see many more NFTs default: 

Further according to NFTStatistics.eth, since none of the NFTs is selling, they’re not affecting the broader NFT market – but eventually they will need to sell, perhaps at a large discount, so that BendDAO can start to acquire ETH with which to pay back its lenders. If the NFTs are sold heavily discounted, we could see the prices of many NFT collections fall much further.

Decentralised Autonomous Organisations (DAOs), such as BendDAO, have been seen by crypto enthusiasts as a way to decentralise power and flatten organisational hierarchies, however recent research by Chainalysis has found that across 10 major DAO projects, one percent of token holders control 90 percent of voting rights.

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NFTs Sport and Leisure

AtlĂŠtico de Madrid and STEPN Partner in New NFT Sneaker Collection

Spanish football club AtlĂŠtico de Madrid announced this week that it will be forming a partnership with Web3 lifestyle app STEPN to develop a new NFT collection of sneakers:

These NFTs are Made for Runnin’

STEPN and AtlĂŠtico de Madrid FC will collaborate with the WhaleFin exchange to release more than 1,000 pairs of digital football boots/sneakers, all compatible with STEPN’s run-to-earn app.

Those acquiring the footwear will receive exclusive access to physical AtlĂŠtico de Madrid merchandise, WhaleFin airdrops, and in-person match tickets.

Over the previous year, STEPN has been prioritising the growth of its Solana-based fitness application, which reported healthy Q2 earnings of US$122.5 million. Currently, the NFTs STEPN requires for gameplay trade at a floor price of 1.58 SOL (US$65).

STEPN is now focusing on “creating win-win partnerships for partner brands and also the users through real-world rewards and perks”, according to chief marketing officer Shiti Rastogi Manghani.

Nike NFT Sneakers Already to Market

STEPN is not the only brand to launch an NFT sneaker collection. Nike launched the ‘CryptoKicks’ collection in April this year and the debut of its Ethereum NFT sneakers followed its December 2021 leap into the metaverse via the acquisition of digital art house RTFKT Studios. CryptoKicks can be modified via ‘Skin Vials’ for a unique range of styles and aesthetics.

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Australia Crypto News NFTs Sports

AFL NFT Drop ‘Ripper Skipper’ Sells Out in Under 12 Hours

With the 2022 AFL finals season about to blast off on September 1, the Australian Football League’s first limited-edition drop of NFTs has galvanised fans of the indigenous code by selling out in less than 12 hours, raising over $130,000 in USDC:

The Ripper Skipper 2022 NFTs, so-named in reference to the captains (“skippers”) of the AFL’s 18 competing clubs, feature 78 significant highlights from the 2021 season, incorporating both video and audio.

Ripper Skipper NFT of Joel Selwood, captain of Geelong, the AFL’s No 1 team.

Another Drop on August 24

While the initial mint sold out in less than half a day, the wider public will gain access to another drop this Wednesday, August 24. The NFTs are launched to members of the public who have signed up to the allowlist, and will sell for A$49 in lucky dip packs of three cards with differing levels of rarity: common (90 percent), deluxe (8 percent), and ovation (2 percent).

Each pack features three “moments” involving selected club leaders in action. There’s also a 10 percent your pack will receive a special, extra-utility-carrying Genesis Ball NFT (pictured, below) as one of the three cards.

AFL Genesis Ball NFT. Source: afl.com.au

“Through our AFL Mint brand, we will launch exciting new moments across our men’s and women’s competitions, plus celebrate past greats and other product releases that will bring a unique fan experience we haven’t seen before,” said Kylie Rogers, executive general manager of customer and commercial at the AFL.

The AFL announced its NFT marketplace in April this year, revealing it had signed a five-year partnership with Be Media, a Perth-based subsidiary of Hong Kong NFT gaming giant Animoca Brands. At the time there was significant pushback from AFL fans who registered their disapproval at the AFL moving into the NFT space. So much for that …

AFL Mint Will Only Get Bigger in 2023

The marketplace will officially launch in 2023, allowing the selling and trading of moments between fans and collectors. AFL Mint has plans to expand on the concept and offer game-day events, tickets and the chance to meet players in the metaverse.

It appears rumours of a downturn in the NFT space, still negatively affecting the crypto world in general, have been somewhat exaggerated.

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Bored Ape Yacht Club Crypto News Cryptocurrency Law NFTs Social media

Bored Ape Defies NFT Downturn, Sells for $1.5 Million

A cashed-up Bored Ape Yacht Club (BAYC) enthusiast has just paid a huge 777 ETH (US$1.5 million) for a single Ape, defying the current market downturn.

Crypto millionaire and BAYC superfan Vis.eth purchased Bored Ape #5383 for its gold fur, after already spending millions on Otherdeeds:

https://opensea.io/assets/ethereum/0xbc4ca0eda7647a8ab7c2061c2e118a18a936f13d/5383
Bored Ape #5383.

Median Price Hits Two-Month High

The Ape purchased this week by Vis.eth is the 285th rarest in the BAYC collection, notable for its gold fur and red checked shirt. The purchase pumped the median price for the collection, pushing it to a new two-month high of 441 ETH.

Vis.eth’s purchase of Ape #5383 netted a 500 percent profit for its previous owner, who originally bought it for 95 ETH. The “metaverse mogul” is no stranger to these purchases, having already spent millions on Otherdeeds from Yuga Labs’ Otherside project, and some CryptoPunks:  

The monthly volume for the NFT marketplace has been at abysmally low levels during the crypto winter. Total sales for July were a meagre US$675.53 million in comparison to January’s US$5.63 billion:

https://www.theblockresearch.com/data/nft-non-fungible-tokens/marketplaces
The difference a crypto winter makes to NFT sales.

Eventful Year for Yuga Labs

Yuga Labs has been stuck between a rock and a hard place of late, with both the media and the courts snapping at its heels. In late July, a class-action lawsuit was filed by international law firm Scott+Scott over allegations that it falsely promoted Bored Ape NFTs and ApeCoins as securities with guaranteed returns, despite their value actually plummeting in the subsequent three months.

Prior to the lawsuit, Yuga Labs faced damning allegations of racism which rocked the industry. Philip Rusnack, aka Philion, posted a lengthy YouTube video identifying supposed alt-right connotations among the memes, language and symbols used in Bored Ape Yacht Club (BAYC) collections. This led to the trending ‘BURNBAYC’ hashtag, which was circulating on Twitter at the time.

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Crypto Art Crypto News NFTs

Justin Bieber and Paris Hilton Called Out for Shilling NFTs

US consumer watchdog group Truth in Advertising (TINA.org) has called out a list of 19 celebrities, including socialite Paris Hilton and pop star Justin Bieber, for shilling NFTs.

TINA alleges the promotion of NFTs on social media by big accounts creates a space that is “rife with deception”.

https://www.buzzfeednews.com/article/katienotopoulos/celebrities-warning-letters-nft-ftc
Paris Hilton (above) is on the list of NFT-shilling celebrities warned by TINA.

TINA Warns of ‘Undue Influence’

All 19 celebrities on the list have now received a letter from TINA reminding them that failing to “disclose material connections” on their promotions is in violation of US Federal Trade Commission guidelines.

Only 17 of the letters were sent out this week. Paris Hilton was one of those 17, having been extremely active about her NFT-related ventures of late. However, actor/producer Reese Witherspoon and Justin Bieber, an investor in the inBetweeners NFT project, received their letters in June. Bieber’s legal team has since denied wrongdoing yet vowed to update the posts.

The point TINA is working to make is that celebrities can unduly influence the value of collections in pitching them to impressionable would-be investors.

https://truthinadvertising.org/team/bonnie-patten/

When it comes to NFTs, some celebrities are able to take financial risks due to their wealth, but many vulnerable consumers don’t have that luxury … Consumers deserve to understand the full picture behind a celebrity endorsement so they can make fully informed decisions on whether or not to invest in NFTs.

Bonnie Patten, executive director, Truth in Advertising

There is immense volatility and financial risk for fans of celebrities who choose to invest in speculative digital assets without knowing all the details, TINA says. While the 19 letters dispatched serve as a gentle reminder, TINA suggests it will take the matter further if celebrities are not more careful about how they promote their NFT interests.

Who Else Got Called Out?

Also on the list of celebrities who received the notice were rapper Snoop Dogg and pop culture icon Madonna, both of whom have been well immersed in the world of NFTs of late. In September last year, Snoop revealed that he owned US$17 million in NFTs when he announced he was the creative mind behind the Cozomo de’ Medici Twitter account, explaining his reasoning in creating an alter ego.

And who can forget Madonna’s recent collaboration with artist Beeple on a collection of NFT ‘soft porn‘? The series featured multiple animated videos of “Madonna-as-mother” in virtual-reality simulations in which she “births” robotic centipedes, butterflies, and even a tree. It was a collection that left nothing to the imagination.

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Crypto News Crypto Wallets Metaverse NFTs Sports

Real Madrid and Barcelona FC Team Up for Metaverse Activities

Despite their innate differences and fierce rivalry on the pitch, Spanish football superclubs FC Barcelona and Real Madrid have filed a joint metaverse trademark application encompassing virtual reality gaming/clothing and crypto transaction management software:

Both Clubs to Offer Crypto Wallets

FC Barcelona and Real Madrid filed the application over a week ago but the news has only just been confirmed by trademarks lawyer Mike Kondoudis. The filing indicates that both clubs may be interested in offering their own cryptocurrency wallets.

The alliance has raised eyebrows in that each team represents totally different values. FC Barcelona symbolises the separatist Catalan region, while Real Madrid is linked to the royal family and represents traditional Spanish culture and nationalism.

The derby between the clubs is known as “El Clasico” and is one of football’s premier events. Both clubs have a global fanbase and are the world’s two most followed sports teams on social media.

Back on the Crypto Bandwagon

News of the joint venture has also created interest in light of the fact that FC Barcelona, along with English Premier League champions Manchester City, discarded its crypto sponsors last year in controversial circumstances.

In the case of FC Barcelona, the club announced it had cancelled a deal with NFT marketplace Ownix after the arrest of one of its consultants, Moshe Hogeg, owner of Israeli football team Beitar Jerusalem, for suspected crypto fraud.

Also in November 2021, the Catalan club announced it would be auctioning non-fungible tokens (NFTs) of memorable moments from the club’s 122 years in the game. It was whispered at the time that the auction would serve to offset a debt crisis afflicting the club.

Fan Tokens Part of Metaverse Strategy

Earlier this year, FT Barcelona confirmed music streaming giant Spotify as its jersey sponsor. It also issued its own fan token and has since been linked with fan engagement token company Socios.com in a US$100 million deal to reshape the strategies of the club in the Web3 and metaverse space.

In 2020, Real Madrid partnered with NFT collectible company Sorare and the following year announced it would issue Smart Tickets in the form of NFTs for its audience in partnership with LAVA.

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Crypto News Metaverse NFTs

Pudgy Penguin NFTs Pump After Announcing Physical Toys

Pudgy Penguins, one of the cutest of NFT collections, has announced on Twitter that it will be turning select penguins into physical collectibles to be known as Pudgy Toys:

Following the announcement, the collection registered a sales spike of 370 percent, representing a threefold increase over the previous day.

Pudgy Penguin Plushies?

Described by the PP creators as “the first of many instances where the Pudgy Penguins IP will allow Web2 to meet Web3”, this latest news seems to have renewed community interest.

According to OpenSea, the collection saw a transaction volume of 256 ETH post-announcement. Pudgy Penguins’ floor price rose to 2.73 ETH, up 18 percent on the previous day. Though the exact form these collectibles will take has yet to be revealed, it has been stated that the new line of Pudgy Toys will be directly licensed from the community:

This update coincides with the ongoing debate regarding licensing rights for NFT holders. It’s an issue recently highlighted by the Moonbirds collection, whose floor price tanked following the switch to a CC0 (creative commons) licence.

Netz Spreads the Pudgy Love

In April, the Pudgy Penguins NFT collection sold for a whopping 750 ETH (US$2.6 million), separating the 8,888 penguins from their allegedly controversial roots. Luca Netz, the LA-based entrepreneur of Netz Capital, now leads the project and intends to use it to “spread love across the meta”.

Netz’s complete project ownership means Pudgy Penguins now has its own token, $PENGU.

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Metaverse NFTs Real Estate

Metaverse Real Estate Bubble Pops, Prices Crash 85% Amid Waning Interest

Not even the metaverse is exempt from housing bubbles as virtual property sales have plunged 85 percent in 2022, according to recent analytics from digital land gateway platform WeMeta.

In just six months, the metaverse real estate industry has seen a massive decline in volume. The bubble reflects waning interest and a wider retreat in cryptocurrencies and non-fungible tokens (NFTs), combined with harsh macroeconomic conditions:

The WeMeta analytics were based on the six largest Ethereum metaverse projects, including Decentraland and The Sandbox. Overall, land sales volume across these platforms has dropped considerably, from a peak of US$1 billion in November 2021 to barely US$150 million in August 2022:

Source: WeMeta

Metaverse ETFs (exchange-traded funds) have also lost value, with the Roundhill Ball Metaverse ETF (METV) plunging along with blockchain-based metaverse projects. The METV offers investors exposure to companies exploring the metaverse, such as Facebook’s parent company, META. Accordingly, the ETF has tanked by nearly 50 percent from its all-time high of US$17.11 in November 2021.

Source: TradingView

Buying Digital Land is ‘the Dumbest Sh*t Ever’, Says Cuban

Billionaire crypto advocate Mark Cuban has some harsh words for everyone who jumped in on digital real estate. “It’s the dumbest shit ever,” he said in an interview this week with YouTube channel Altcoin Daily.

The metaverse and NFTs have been waning in demand for months, and only a handful of projects have seen millionaire investments from fundraising rounds. Such was the case with Ethereum-based NFT game Illuvium, which raised more than US$72 million following the sale of nearly 20,000 digital land plots.

At the height of the NFT craze last year, a single Axie Infinity land plot sold for a record US$2.5 million. Considering the market bubble, best not ask about the current price of other lands in the metaverse.