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Jail Time For Frosties NFT Founders

Floor Tracker, Vitalik's BAYC Comments, And More

March 25, 2022

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What's Dropping ⚡

  • Coolman’s Universe collaborated with Crocs, and their promo video became the most viewed video on Crocs socials with over 1.6M views!

  • ExLabsCo is releasing an Explorers Club NFT which will be the first-ever NFT collection to support the research and development of space resource acquisition... it may even have some real astroids included!

  • World-renowned artist Wagmi-san dresses blue-chip collections with his digital accessory shop 10KFT. The talented creative revealed the 10KFT Gucci Grail collection (10KFT x Gucci) for BAYC, MAYC, Cool Cats, and others.

  • Frosties NFT rug pull founders were charged with Non-Fungible Token (“NFT”) Fraud And Money Laundering Scheme. Prior to their arrests, they were preparing to launch the sale of Embers NFT. The two 20-year olds may face up to 20 years in prison.

  • Immensely influential collection World of Women signs a deal with global toy company Jazware. WoW was created by artist Yam Kankai, and this new partnership signals an inevitable physical utility pump in the coming years. You can expect a variety of World of Women toys, costumes, dolls, and more, sometime in 2023.

  • Metaverse Fashion Week is set to kick off today March 24. The only fashion brand at the celebration, Estee Lauder has surprised the space with their wearable "Advanced Night Repair" NFT, which gives a spectral glow to the user's avatar. The art has been designed by artist @thealexbox.

  • The legendary Bill Murray announced an NFT collection in collaboration with The Chive filled with personal anecdotes and life stories and presented alongside a portrait of the comedian.

  • Australian airline Qantas prepares to release aviation-themed NFTs. Celebrating its 100-year history and offering benefits such as frequent flyer points, free trips, and free refreshments, the collection is set to take off in the near future.

  • Cryptocurrency paradise? Satoshi Island is a private island in the South Pacific that is currently being developed into a digital utopia of sorts. This unbelievable venture has received over 50K applications for their free citizenship NFT, which acts as a whitelist for the NFT Land sale.

Frosties Founders Face Prison Time 🚩

If you’ve been in the NFT space long enough, you’ve probably been rug pulled at least once. A rug pull is a scenario where the creator(s) of a project solicit investments, and then abruptly abandon the project and steal the money. And in a world of anonymity, you wouldn’t expect the founders of a project to be caught and charged with a crime. But surprisingly, the Department of Justice (DOJ) has done just that.

Frosties NFT trading was halted on OpenSea last night

According to a press release by the DOJ, two defendants have been charged with wire fraud and conspiracy to commit money laundering in relation to the Frosties NFT project. Ethan Nguyen and Andre Llacuna, the founders of the project, allegedly promised benefits to the investors of the project, but ultimately shut down the project and transferred the invested funds out of the project’s wallet.

Prior to their arrest, Nguyen and Llucana were working on another project, Embers, to be released within the week, which is also believed to be a rug pull according to the DOJ. Judging by the $1.1 million that they made by rug pulling the Frosties project, this rug pull would’ve been similar in financial gain, if not more. Due to the swiftness of the DOJ, investors did not lose any money and the NFT space was ridden of two individuals that have no space being in the industry. Stealing money is against the law, whether IRL or through Web3. You will be caught. You will be charged. WAGMI, if you’re not a scammer.

Vitalik's Harsh Take On BAYC

At first glance, the recent characterizations of Vitalik Buterin’s comments regarding BAYC have certainly made it appear that he doesn’t agree with the project or its success. However, this is not true, his critique does not equal outright denunciation. Rather, it is merely a reminder that the decentralized goods on the Ethereum blockchain do not neccesarily always have to represent exclusive items, and can instead act as resources for a wide number of people.

For those not aware, Vitalik Buterin is the creator of the Ethereum network so his opinion does hold weight.

In other words, Vitalik is attempting to illustrate that folks outside of Web3 who interpret it as nothing more than a game of expensive monkey pictures realize that it actually encompasses far more than that. There’s no reason that a BAYC holder would interpret his critique as an assault on the project, because they know they should appreciate that they are building an interoperable metaverse. BAYC, in effect, has behaved as a compelling nation building project, financially powerful enough to become the first public social space for other people in Web3 to build together on. 

Meme Drop 💧

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Disclaimer: The Drop DOES NOT provide financial advice. All content is for informational purposes only. The Drop is not a registered investment, legal, or tax advisor or a broker/dealer. Trading any crypto-related asset is extremely risky and could result in significant capital losses. 

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