SEC At War Against Crypto
It looks like armageddon out here
Here is the breakdown of today's newsletter:
👨⚖️ SEC cracks down on crypto
🎁 NFT charity by Bored Room Ventures
Are NFTs coming back? Memecoin volume slows as NFTs surge. (Y!)
Apparently, Louis Vuitton will be selling NFTs at the price of 40k$. (DC)
The Co-Founder of Reddit claims Play-to-Earn games are the future. (Y!)
Check out some graphs showing how much volume BTC NFTs are bringing into the system. (AB)
Binance will be halting all USD withdrawals as soon as next week.
lCYMI: @LouisVuitton is having a HUGE drop called "VIA"
non tradeable soulbound tokens
$39,000 USD each
upcoming phygital & digital products and exclusive experiences
SEC Goes After Coinbase 😡
What started with a singular lawsuit by the SEC against Binance US on Monday has now transcended into what seems like a complete attack on the centralized sector of cryptocurrency in the United States. Just yesterday, Coinbase, which accounts for 11% of all cryptocurrency holdings in the world, got slapped with a lawsuit stating that they traded securities when they gave US users the ability to transact certain tokens, including Solana and Cardano.
💡 What Happened?
SEC Chair, Gary Gensler, has previously stated that tokens traded on centralized exchanges are securities and they must be treated as such (taxes, licenses, oversight, etc.).
According to the recent lawsuit filed in Manhattan, Coinbase has been conducting business in the United States without proper registration as an exchange, in order to maneuver around the law.
While there are differences between the Coinbase lawsuit and the Binance one, the main takeaway is that the United States government is trying to regulate the crypto market, something we’ve anticipated for quite some time. And the way they’re doing that is by going after exchanges operating in their jurisdiction in somewhat of a blanket approach.
👀 Hypocrisy Much?
One of the larger points that many crypto and NFT enthusiasts are discussing is the seemingly stark hypocrisy that has come to light during this time. CEO of Coinbase, Brian Amstrong has clearly outlined this countless times on Twitter and in interviews. Why didn’t the SEC say anything when they went public? Why has the SEC gone back and forth on their definition of what security is and isn’t?
Regardless of how you feel about Coinbase as an exchange, Amstrong has been a knight in shining armor for the entire industry against the SEC especially when it comes to pushing for clarification and common-sense legislation in this space.
This hypocrisy is clearly outlined below:
Regarding the SEC complaint against us today, we're proud to represent the industry in court to finally get some clarity around crypto rules.
1. The SEC reviewed our business and allowed us to become a public company in 2021.
2. There is no path to "come in and… twitter.com/i/web/status/1…
— Brian Armstrong 🛡️ (@brian_armstrong)
Jun 6, 2023
Following the filing yesterday, Coinbase’s share price decreased 12.1% to $51.61, down over 84% from its high in October of 2021. That being said, the market is responding violently, with corporations having to pick up shares from investors exiting, with Cathy Woods picking up about $17 million worth.
Above you can see $COIN (-15%+ the past 5 days)
Investors are waiting for more news regarding the suit, and what will happen to funds that are still present on the platforms. Will they be held during the case, or will users be able to continue to transact? Where will US customers buy their crypto from now that the top 2 market makers are under the radar? What will happen to the crypto market as a whole? Why didn’t the SEC include Ethereum when outlining what unregulated securities Coinbase traded? These are all questions that are lingering in our minds. Be careful. Hold your funds in a DEX. Don’t get Gary’d with your funds on these platforms. Please. WAGMI.
Bored Room Ventures Asks the Web3 Community to Combat Hunger
Bored Room Ventures is taking action against the increasing global food crisis by presenting "From Hunger to Hope," a web3 charity art exhibition supporting Compassion International. With an alarming number of people going to bed hungry each night, including vulnerable children in poverty, Bored Room Ventures aims to draw attention to this issue and provide immediate aid to 20,000 individuals in need.
I'm thrilled to announce From Hunger to Hope, a Web3 charity art exhibition to fight the global hunger crisis. Presented by Bored Room Ventures, FH2H auctions and open editions will run June 9-23, with proceeds benefitting @Compassion_3.
More info, including participating… twitter.com/i/web/status/1…
— Josh Ong (@beijingdou)
May 12, 2023
The art exhibition, which begins on June 9, will feature a collection of unique non-fungible tokens (NFTs) created by renowned digital artists. Among the participating artists and projects are Jeremy Cowart, Julie Pacino, Tennessee Loveless, Joelle McTigue, Rachel Wood, Pixelmon, BBRC, and Sad Girls Bar. To contribute to the fight against hunger and access the exhibition, individuals can visit fromhungertohope.xyz and make a minimum $50 donation.
Jeremy Cowart, a featured artist in the event, shares his personal connection to the cause, stating, "I've always said my mission is at the intersection of creativity and empathy. So any time I can connect art to serving and loving others, I'm really intrigued. To combine my love of art and NFTs with my love of the work Compassion does – it was a no-brainer."
The exhibition will take place both online and in the metaverse, providing an immersive 3D digital art gallery experience for users. The NFTs will be minted on the Ethereum blockchain, ensuring transparency and accountability by pairing them with impact data that demonstrates how the funds raised are being utilized to assist individuals worldwide. The event will culminate with an in-person viewing of the artwork on June 22 at the Superchief Gallery NFT in New York, N.Y., before officially concluding on June 23.
Rachel Wood, another featured artist, highlights the importance of generosity and education in the fight against hunger. She states, "By eradicating hunger, we empower individuals to lead vibrant, purposeful lives, making a difference in their communities and the world at large. Through education, we ignite a spark of hope and optimism, enabling people to realize their potential to shape their destinies and build a radiant future for themselves and those around them."
Stephen McCaskell, a principal product manager on Compassion's innovation team, expresses his admiration for the collaborative efforts between development organizations and web3 communities, saying, "Web3 is all about the empowering nature of decentralization. We are truly inspired by the ability of web3 artists and communities to rally around a shared mission of mitigating the global food crisis. It's a profound testament to what's possible when development organizations and web3 communities unify on behalf of the vulnerable."
To learn more about the "From Hunger to Hope'' charity art exhibition, please visit fromhungertohope.xyz. Join Compassion's Discord to engage directly with their staff through the #support channel or follow them on Twitter at @Compassion_3 to stay updated on their journey.
The other week we broke down the newest STEPN updates. Definitely worth the read:
STEPN Integrates With Apple Pay 🍎
How do we onboard the next 100 million users to web3?
This is a question that rattles around the community 24/7 on spaces, conferences, and everything in between.
@Stepnofficial is going in the right direction - no pun intended.
— The Drop (@thedropnft)
May 26, 2023
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