Tag: 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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NFTs Sport and Leisure

Atlético de Madrid and STEPN Partner in New NFT Sneaker Collection

Spanish football club Atlético 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 AtlĂ©tico 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 Atlético 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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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 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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Crypto News NFTs

Fans Spent $2.7 Billion Minting NFTs in 2022 So Far: Report

NFT market activity remains strong according to a Nansen report which has found that US$2.7 billion was spent on NFT minting in the first half of 2022 alone. This figure is the product of activity from more than 1 million unique wallet addresses:

Shift in Users’ Priorities

Industry-leading blockchain data and analytics platform Nansen found that most of these transactions occurred through OpenSea. Its report highlights a shift in crypto users’ priorities yet again, with NFT creators now choosing to retain and reinvest funds into the ecosystem, indicating they have become more mature and conscientious.

This latest report was built off the back of the past report, utilising similar parameters: projects that had primary sales revenue exceeding 20 ETH between January 1 and June 30, 2022:

A total of 28,986 NFT collections were minted and sold on Ethereum during the first six months of 2022. Of these, Pixelmon-Generation 1, Genesis Box, World of Women Galaxy, Moonbirds and VeeFriends Series 2 accounted for 8.4 percent of overall minting.

To the best of Nansen’s knowledge, half (50.7 percent) of the funds raised by these creators stayed with NFT projects, while 45.7 percent circulated to non-entity wallets. It should be noted that Nansen does not have the capacity to track transactions to other counterparties.

Overall, in comparison to the previous report’s results, improvements in the utilisation and productivity of the NFT minting sector are clearly visible.

Nansen research analyst Louisa Chloe wrapped up the data:

https://www.nansen.ai/authors/louisa-choe

Reflecting on the on-chain results of this study, we maintain our conclusion that the minting sector of the NFT market remains healthy with the rise in average mints per unique wallet address 
 on-chain evidence of NFT collections reinvesting primary sales revenue into NFT demonstrates that builders and creators within this marketplace are looking at the long-term impact of their projects and making decisions that will support that growth.

Louisa Choe, Nansen

Recent NFT Developments

Last month saw two exciting new announcements for the NFT sector within just two days. Firstly, OpenSea expressed its excitement about a “multi-chain future”, thanks to the introduction of the Solana launchpad. The platform will reportedly guide users through the process of pre-mint activity, and will permit list minting and post-mint and secondary sales. This means creators will be able to mint new projects from scratch with ease.

Meanwhile, Australia has its first NFT gallery. Situated at Baringa, near Caloundra on Queensland’s Sunshine Coast, the gallery aims to create a hub for digital artists and tech enthusiasts within the popular holiday region.

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Crypto News CryptoPunks NFTs

Jewellery Brand ‘Tiffany and Co’ Releases Limited Edition CryptoPunk Pendants

NFTiff – the newest collaboration transforming CryptoPunks into jewellery – marks high-end brand Tiffany and Co’s latest partnership, with the new project renewing interest in CryptoPunks and driving a 248 percent spike in sales volume:

CryptoPunk Owners Can Buy Up to Three Diamond Necklaces at $50k Apiece

The partnership will enable CryptoPunk owners to purchase up to three diamond-encrusted necklaces for 30 ETH (approximately US$50,000) each from August 5. Each Punk pendant will be set in 18-carat gold (yellow or rose) with 87 different attributes and 159 colours available for the custom designs.

The project was first promoted in April by Tiffany & Co vice president Alexandre Arnault, who revealed his own rose gold and enamel CryptoPunk to the delight of onlookers. The Punk featured sapphire and Mozambique ruby-coloured glasses, and yellow diamond earrings:

Based on the social media reaction, the community appears genuinely excited about the partnership following details of its launch, regardless of the hefty price tags.

The announcement of NFTiff appears to have rekindled interest in CryptoPunks. A 1,400 ETH (US$2.3 million) trade volume was recorded in the wake of the news, representing a 248 percent increase on the previous day, according to OpenSea data. The value of the broader CryptoPunks collection had also risen by 5 percent in the previous 24 hours at the time of writing.

CryptoPunks’ Recent Successes

CryptoPunks had been gaining a small amount of collector interest prior to the Tiffany and Co collaboration. CryptoPunk #4464 notably reversed NFT market trends in mid-July by selling for a massive 2,500 ETH (approximately US$2.6 million). CryptoSlam identified this as the single-largest NFT sale from the previous 30 days, despite typical winter market lows.

CryptoPunks also proved they make good loan collateral as MetaStreet, a liquidity routing and scaling solution for the NFT collateralisation platform, allowed a loan of US$8 million to be collateralised by 101 CryptoPunks.

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Crypto News Gaming NFTs

Minecraft Bans NFTs and Blockchain Integrations

Minecraft has announced it will be banning the use of NFTs and blockchain technology on its servers. The highly popular sandbox game also seeks to prevent the creation of NFT projects based on its assets.

Mojang, Minecraft’s creator, has justified the decision by stating that NFTs are not inclusive of its full community. The bans are being met with mixed feelings on social media:

Mojang Goes It Alone

Mojang, the developer behind the hit video game Minecraft, seems to have little interest in allowing its property to operate in conjunction with independent NFT projects.

Blockchain technology on independent game servers (operated by fans and creators) that utilise any aspect of Minecraft imagery to create NFT projects will be prohibited. The notice issued by Minecraft claims that the decision was made based on ensuring players would “have a safe and inclusive experience”.

The speculative pricing and investment mentality around NFTs takes the focus away from playing the game and encourages profiteering, which we think is inconsistent with the long-term joy and success of our players”

Mojang statement

However, NFT Worlds, a Web3 gaming project specifically focused on third-party blockchain and NFT Minecraft integrations, has made the bold statement that it won’t be leaving. The announcement has caused prices for the project’s NFTs to plummet by 70 percent, and its native token (WRLD) to also drop by 65 percent. Regardless, it seems the developers have no intention of leaving the community:

However, Mojang has not definitively ruled out blockchain tech for its future, stating that it plans to monitor the evolution of the space.

Initial NFT and Web3 Integration

Last year saw Minecraft introduce NFTs to the game, permitting players to collect in-game digital assets which then granted them access to special quests and other benefits. The NFTs were to be powered by a project called Enjin (ENJ), which allowed digital assets to be stored on the blockchain. Players were then required to scan a QR code which transferred the NFT automatically to their Enjin. The wallet could then be linked to the cross-platform gaming network MyMetaVerse.

Then, in March 2022, the game decided to make the move into Web3. ‘NFT Worlds’ was set to be the blockchain layer added to third-party Minecraft servers, alongside a Polygon-based overlay and an Ethereum sidechain offering gas-free transactions. The announcement drew an overwhelmingly positive reaction across social media at the time.

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Crypto News Ethereum Hackers NFTs

Hackers Make Off with $400K in ETH in PREMINT Hack

PREMINT, an NFT registration platform, has notified users via Twitter that an unknown party had stolen US$400,000 in ETH via a malicious wallet connection:

Hackers Secure Premint Bag

In this year’s most recent hack, 320 NFTs were stolen from the PREMINT site. CertiK, a blockchain security firm, analysed the situation and found that malicious JavaScript code had been utilised in the hack. This code created a pop-up within the site which prompted users to verify their wallet ownership. Despite many taking to Twitter to issue a warning, the hackers had already duped six PREMINT customers in mere minutes:

The stolen NFTs included Bored Apes, Moonbirds, and Goblintowns. Once they were obtained, the hacker sent the funds to Tornado Cash to wipe the digital trail left by blockchain transactions.

PREMINT has thanked those of its customers who have helped minimise the impact of the hack and are accumulating data on all NFTs stolen.

Other 2022 Phishing Attacks

Phishing attacks seem to be increasing in frequency this year, with multiple sizeable thefts across the end of the first quarter. A total of 35 NFTs were stolen in early April, including a Mutant and Bored Ape. The attack was carried out via several hacked verified Twitter accounts with the total stolen value exceeding US$900,000.

A month later, 29 Moonbird tokens were stolen when a malicious link wired a scammer US$1.5 million worth of Moonbird NFTs from a Proof Collective member. At the time, the Collective was working on a full report in collaboration with the FBI.

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Crypto News CryptoPunks NFTs

Rare CryptoPunk NFT Defies Crypto Winter, Sells for 2,500 ETH

Reversing recent NFT market trends, CryptoPunk #4464 this week changed hands for a massive 2,500 ETH (approximately US$2.6 million). According to CryptoSlam, this marks the single-largest NFT sale of the past 30 days, in defiance of typical winter market lows:

CryptoPunk Does the Unexpected

Despite the malaise of the wider crypto market and commensurate NFT trading volumes, one rare CryptoPunk seems to have achieved the impossible. Punk #4464, an eye mask/durag-wearing, vaping pixelated character, has notched the fourth-ranked CryptoPunks NFT sale of all time, sharing that status with two other Apes. (It should be noted, however, that as ETH has a fluctuating price, the USD value of each sale fluctuates significantly.)

https://cryptopunks.app/cryptopunks/details/4464
Transaction history of CryptoPunk #4464.

The record CryptoPunk sale for both ETH and USD is #5822, an 8,000 ETH (US$23.7 million) alien that was sold in February.

So Why Is #4464’s Sale Impressive?

Only two months ago, there was consensus that CryptoPunks (and NFTs in general) had lost the public interest. The realisation came as CryptoPunk #273, a male punk with a cap and shades, sold on May 8 for just US$139,836. That figure was 87 percent lower than its initial purchase price of US$1.03 million, in October 2021.

With a total value loss of approximately US$890,000, an ongoing downward trend in the CryptoPunk market seemed inevitable. However, #4464 has defied the odds and is proof to the contrary.

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Crypto News NFTs

Lamborghini-Backed Racing Team Adopts NFT Authentication for Car Parts

GT racing team Vincenzo Sospiri Racing (VSR) is partnering with NFT platform Go2NFT for a project that certifies racing car parts. The NFTs will aid in monitoring and ensuring car part quality, with the collaboration offering room to extend this technology to merchandising:

Sospiri Personally Endorses Pilot Scheme

Go2NFT’s pilot scheme will utilise NFT tech to authenticate factory parts, with racing champion Vincenzo Sospiri himself stating that VSR, Go2NFT, and the blockchain platform Skey Network will be building cars with verified provenance:

https://www.gettyimages.com.au/detail/news-photo/italian-driver-vincenzo-sospiri-sits-on-his-car-in-pit-row-news-photo/51659371

This also brings great responsibility to ensure that we can securely authenticate and audit every part of our racing fleet to monitor performance and ensure provenance.

Vincenzo Sospiri, VSR

Boris Ejsymont, chief business officer of Go2NFT, understands the challenges brands face in protecting their intellectual property, and says that NFTs offer a solution. For more information on the tech behind this project, check out Go2NFT’s video below:

NFTs Rev Up the Auto World

This isn’t Lamborghini’s first dip into NFTs. In August 2021, the company celebrated its founder, Ferruccio Lamborghini, with the launch of an NFT collection, a collaboration between the Ferruccio Lamborghini Museum and crypto art platform Elysium Bridge. Touted as a “one-time event”, the collection offered investors the chance to “own unique pieces of supercar history in an unprecedented NFT drop”.

But it’s not just performance cars that are experimenting with NFTs. Alfa Romeo’s latest SUV, the Tonale, enables customers to track and store its maintenance records. This, more practical, approach to documenting vehicle data will add much-needed transparency and efficiency to record-keeping.