The War Of The Punks

Welcome to The Drop NFT Newsletter. Subscribe and join the discord for breaking NFT news, project breakdowns, & artist spotlights. Thank you for following along on this journey!

What's Dropping ⚡️

• Gutter Cat Gang airdropped a legit new space-themed collaboration with Los Angeles-based artist and illustrator Josh Seth Blake AKA Jaybee.

• We've got a Rug Pull Frens VIP Whitelist opportunity happening right now in our Discord.

• Accumul80r wrote up a great ApeFest recap.

• Nike is heading towards the Metaverse.

• FOMO kicked in on Cryptomories this weekend. Well deserved too - great project and an amazing community. The floor was around 0.03 ETH a week or so ago, now it's 0.14 ETH in heavy trading.

• ETH hit another all-time high ($4,726 USD) and seems to be pushing straight to $5k USD.

• Mand-O One started minting this weekend. Their plan is to invest $1m USD into BTC mining, giving their profits to NFT holders.

• Currently, there is the largest USD bid (2,300 ETH or $10.4 Million) ever for CryptoPunk #2890. 

• Here is a list list of NFT Discords that have recently been compromised.

CryptoPunks vs. CryptoPhunks

CryptoPunks are on an absolute tear right now with their floor price reaching 89 ETH or currently around $420,700 USD. There are no punks for sale (no suprise) but the bullishness for this collection is at all time highs with bids as high as 2,300 ETH. 

Disclaimer: We don't condone the actions below we are only reporting on it. 

CryptoPhunks

An NFT project came out that is almost an exact replica of the holy grail project CryptoPunks - the only difference is the images of the Punks (called "Phunks" in this case) are inverted. The project is called "CryptoPhunks" and it is created by "NotLarvaLabs"... obviously this is satirical considering CryptoPunks was created by LarvaLabs.

What was unexpected is how successful the Phunks have been with some eye-popping sales and a current floor of .82 ETH. Naturally, the real Larva Labs was not too happy. Below on the NotLarvaLabs website, you will see the response in the about section.

Source: NotLarvaLabs

Some Punk holders enjoyed the satire and made it a goal to collect their Phunk alongside their Punk as you can see here.

This statement below released by the Phunks team sold for 5 ETH on Foundation

The Main Point:

CryptoPhunks is pushing the boundaries of what is acceptable in the Web3 and NFT space that is supposed to be truly decentralized. Their argument points out that the delist from OpenSea and DCMA notices go against this notion of a truly free and decentralized Web3.

What are your thoughts?

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6050I Passes - Now What?

A new tax code that makes failure to report NFT transactions a felony has passed the house. S. 6050I slipped its way into the Infrastructure Bill which was set to pass in the house on Friday and is an expansion of the $10k reporting requirement on cash payments. 6050I is an anti-crime law that requires certain transactions— in this case, any digital asset transaction exceeding $10,000 – to be reported. This provision is set in place to investigate suspicious financial activity amongst businesses and individuals… with the exception of banks and financial institutions, who are exempt from this provision.

Reporting these transactions will be nearly impossible for recipients in the NFT and crypto space. Individuals and businesses must submit a Form 8300 that follows a know-your-customer (KYC) procedure. Recipients of digital assets valued over $10,000 must report the sender’s name, address, and Social Security number. Please note— recipients are not required to submit their own information, but rather the senders. Failure to report the sender’s information from transactions will be a crime. 

Luckily, there's still hope and these provisions won't take effect until Jan 1st, 2024.

RIP to whoever has to find the Social Security number of the digital smart contract they received an NFT from. This provision is going to present an incredible challenge to the entire DeFi space and will be challenged as unconstitutional. 

Artist Spotlight 🖌

Jyothee Murali, better known as JYXDI, is a 25-year-old self-taught artist from Toronto. By overcoming all odds, she has become a well-known artist working with high-end clients such as OVO, XO, and COACH. Jyothee has been nurturing her passion for art since she was two years old; starting with drawings before eventually focusing on her sole love of painting. She expanded her craft into graphic art over the last few years which she's now using too dazzle the NFT space with her 1/1 hand-drawn and an animated collection called Dual Soul! 

You can find Jyothee on Instagram, Twitter, and OpenSea.

Never Give Up 😤

Meme Drop 💧

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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