The SEC is coming after NFTs

Author

The Triple Scoop
August 29, 2023

The Triple Scoop

GM to the 15 new readers who joined this week. Without further ado. LFG

SCOOPS OF THE WEEK 

⛓️ NFT’s

  • SEC Brings Its First NFT Charge

  • Doodles x Crocs

  • Mercedez Benz Launch Collection

👨‍💻 WEB3

  • OnlyFans $19m ETH Investment Down 47%

  • BlackRock Bets Hard On Bitcoin Mining Firms

  • Internal Bad Actors Stole $15m Of Pepecoin

🪙 CRYPTO

  • Traders share plans for the ‘Tornado’ to come Crypto Bull Run

  • Binance Considers ‘Exit’ from Russia

  • Are Musk and Wall Street about to cause Crypto Choas?

  • Cardano Founder still convinced they will dominate the industry

🏆 SCOOP PREMIUM

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⛓️ NFT’s

  • NFT Total Market Cap $4.83B - 24/hour change +1.93%

  • Volume Traded 24/hours - $5.8M +20%

  • The recent small bounce in the NFT market has held somewhat, but from a volume perspective, it is incredibly low.

  • But fear not, we feel a market bottom is now close. Sellers becoming exhausted, new communities are forming, and projects have been forced to deliver more than just a 10K Jpegs.

  • Crypto markets are simmering, and we are seeing more crossing of NFT & crypto projects. The more liquidity that enters crypto, means more will find its way through to the NFT markets.

  • If you are still here, you are one of the long-term believers like the rest of those active in the space.

  • For now, though, the flavor of the month is still Art as the strongest category, and excitement is building in Web3 gaming.

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At a glance 🔎 

  • The SEC launched its First NFT Securities action against Impact Theory.

  • They were alleged to have sold NFTs that were unregistered securities.

  • Impact Theory has paid a $6m settlement and destroyed all the Founder’s Keys NFTs.

🕵️ Scoops take:

An extremely worrying time for the NFT space in that the SEC has their eyes on projects that may have offered NFTs as an investment in the company. Even if it wasn’t intentional, a precedent has been set.

The main thing to look out for in instances such as this is when a project states that buying the NFT would yield returns if the project thrived.

Given that Impact Theory made over $30m from their investors, the settlement sum seems like a decent get-out-of-jail card.

At a glance 🔎

  • The NFT project has teamed up with the popular footwear company to launch a collection.

  • The NFT, which costs $120, can be burned for a pair of Doodles-Camo-designed Crocs, an 8-pack of Jibbitz charms, and 1 Stoodio Beta Pass.

  • The 48-hour public sale goes live Today (29th of August)

🕵️ Scoops take:

Whether you love them or hate them, you won’t be able to leave your house without seeing someone in a pair of Crocs.

Their popularity continues to grow so partnering with a fun, colorful project like Doodles, allows Doodles to make a literal step into the ‘Real' world, increase their exposure, and further solidify Croc’s footprint in Web3.

The cost of the NFT is slightly higher than that of a normal pair of Crocs, but as you will see, this is not a normal pair.

We actually really like the look, and anyone who is bullish on Doodles will no doubt find a new home for their feet.

Loyalty to the brand also plays a part with this one as OG holders get a discounted rate of $99.00

At a glance 🔎

  • The German car giants have shared their upcoming collection on X.

  • The NFTs will be the first of the “Icons” Collection.

  • The 2694 collection is to be minted on the 5th of September by rebate Dutch Auction starting at 1 ETH until price.

  • Free Mint passes can be claimed for holders of ‘Mashines’ and ‘Mercedes Benz NXT Eternities tokens’

🕵️ Scoops take: 

They haven’t wasted much time since their Web3 division launched a collection with Fingerprints DAO and artist Harm Van Den Dorpel ‘Mashines’

They are continuing with their foot-down approach of exploring and embracing the potential of Web3, building out an Ecosystem of Core projects that build upon each other, and satellite ‘Stand-alone’ Collections.

Given the current state of the market, it is a high-risk high-reward strategy for launching their project. However, Mercedes is one of the largest car companies in the world, they are playing the long game. This combined with previous experience in launching NFT collections would suggest that already has the support & customer base ready

Car companies entering the NFT space have had mixed success so far, so it’ll be interesting to see how this one pans out.

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🌐 WEB3

At a glance 🔎

  • OnlyFans had a ripper 2022 with revenue jumping to $5.6 billion and more creators and fans joining in, but they took a hit on their Ethereum stash, which dropped from $19 million to $11.4 million.

  • The company dabbled in crypto, letting creators use Ethereum-based NFTs as profile images, aiming to give them more ownership over their brand.

  • Despite the crypto market having a rough time—Ethereum's price nearly halved during their reporting period—OnlyFans still ended the year on a high note in terms of growth and revenue.

🕵️ Scoops take:

So, OnlyFans tried to ride the crypto wave with Ethereum, but it didn't pan out as they'd hoped— they lost a sizeable chunk of change when Ethereum's price dropped, but here's the kicker: they're still thriving, and that's kinda telling. It shows how established businesses can dip their toes into crypto waters without betting the farm. Sure, they lost some dough on Ethereum, but it was a side gig next to their main hustle. Even with crypto being a roller coaster, they still found a way to make it a 'win' by boosting their brand and drawing in the crypto-curious. So, maybe the lesson here is: diversification isn't just a buzzword, it's a survival tactic in this wild digital age.

At a glance 🔎

  • BlackRock is betting big on Bitcoin mining, being the second largest shareholder in four of the five biggest U.S. mining companies. They're like the hidden puppet master in the scene.

  • They've also got a 99% SEC approval rate and are in line to launch a Bitcoin-backed ETF in the U.S. If that happens, it's a game-changer for crypto.

  • Despite the mining stocks tanking last year, BlackRock didn't sell. Looks like they're in it for the long haul, even with upcoming challenges like Bitcoin "halving," which cuts mining rewards.

🕵️ Scoops take:

BlackRock's move into Bitcoin mining is like a veteran poker player going all-in on a hand everyone else is cautious about. They're not just dabbling; they're becoming key shareholders in big mining companies. And don't forget, they're likely to get the nod for a Bitcoin-backed ETF too. This isn't just a vote of confidence in Bitcoin; it's a seismic shift signaling that the world of 'traditional' finance is ready to seriously mingle with crypto. So, even those not into crypto should sit up and take notice. When the world's biggest asset manager places a bet, you can bet the game's about to change.

At a glance 🔎

  • Some Pepecoin team members went rogue and swiped $15 million worth of the meme coin. They moved the money to various crypto exchanges and sold it off, making the coin's value drop nearly 20%.

  • A security setting that normally requires multiple team members to approve transactions was suspiciously changed, making it easier for these bad actors to take the money and run.

  • Despite this mess, whoever's now in charge of Pepecoin says they're gonna fix things and fully decentralize the project. They're even talking about "burning" leftover coins to stabilize its value.

🕵️ Scoops take:

The Pepecoin debacle is a cautionary tale in the Wild West of meme coins and it underscores a basic truth—trust in the crypto world isn't guaranteed. When a coin's own team can't be trusted, it rings alarm bells about the vulnerabilities we often overlook. This isn't just about some rogue devs making off with millions; it's a wake-up call for everyone riding the meme coin wave. Decentralization isn't just a buzzword; it's a safeguard against this sort of insider job. So, next time you're tempted by the latest high-flying token, maybe take a moment to ask: Who's really holding the reins?

🪙 CRYPTO CRUNCH

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  • Crypto Total Market Cap $1.08T - 24/hour change +2.83%

  • Total Crypto Volume 24 hours - $26.35B - Change +16.68%

  • Grayscale just won against the SEC over their Bitcoin ETF and the crowds gone wild!

  • Bitcoin blasted from $26K to $27.4K in a matter of minutes - up 5%

  • Naturally, the majors have followed the same path and ALT coins are having some fun.

  • It is great that the market started the react like this to positive news. In the depths of bear markets, news has little to no effect on the market. When we see Bull candles like this printed on the back of the news, it shows the market is hungry for action.

  • Let’s see how this plays out, naturally, the hype of the news may settle but eyes are now on $28K and then the next major support of $30K.

  • Pullbacks are for buying, but again…Implementing a Dollar Cost Average strategy is a sure-fire way to smoothen out the highs & lows of the market, and given we are mid to long-term bullish this is a relatively safe strategy to pick up BTC, ETH & your favorite ALT Coins.

  • The flavor of the month is on chain / decentralized exchange trading, it carries higher risk, but right now it is where multiples are being made.

  • Patience is key. Don’t get sidetracked. Stick to your strategy.

    Crypto narratives to focus on this summer

  • - AI Tokens

  • - Telegram trading Bot tokens

  • - GambleFI

  • - Revenue Sharing projects

  • - Decentralised Exchange Tokens

  • - Liquid Staking derivative projects

  • - Metaverse & gaming tokens

  • - RWA - Real-World Asset tokens

Top Stories

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😡 THE REKT SECTION 😡

BJ Investment Holdings

Sometimes when things get to a certain point, there needs to be drastic action before it reaches the point of no return.

That is exactly what has happened here.

BJ Investment Holdings which is the parent company of Hit Network took legal action removing Ben Armstrong from the company.

The removal was due to a mix of a prolonged effort to assist Ben in his relapse into substance abuse as well as reconcile the emotional, physical, and financial damage he has done to the employees of Hit network and the Bitboy Crypto community.

What we don’t like about this story is the highlighting of substance abuse, maybe some things remain better private. It would have been bad enough and justified to just mention the physical and financial damage.

However, this seems like a cheap shot and despite what Ben may or may not have done leaves a sour taste.

🏆 WEEKLY WINNER 🏆

Tomorrowland

The festival may have ended in July however their NFT stats have just been finalised.

They prioritised fan engagement with the NFT and the figures go to show what a success it was.

Holders of the NFT were able to access exclusive shows, obtain pre-sale tickets and partake in exclusive interactions. The NFT also granted automatic access to numerous partnerships.

The final numbers are in and the NFTs raised a whopping $2.2m

A benchmark into the music festival NFT scene has been set.

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