Coinbase's NFT platform crashed their stock...why?
GM, we take the latest Web3 news and translate it into plain old English - so you can stay up to date, without your eyes glazing over.
In today’s edition:
Coinbase stock reached an all time low after their NFT platform rollout...but why?
Nike's NFT sneakers let you flex on your metaverse friends...if that's your thing?
RESOURCE: What is a crypto ‘flash loan’ (learn in under 7 mins)
How to own real estate for $50...no, really!
Terms used (click for translation):
NFTs, DAOs.
Coinbase stock reached an all time low after their NFT platform rollout...but why?
Coinbase's NFT platform is looking to set itself apart with an Instagram-esque experience that encourages artists and buyers to interact and connect.
Which is nice...but it seems the market doesn't care.
Coinbase stock has hit an all time low of $131.14 over the weekend.
Ouch!
So why did this happen?
Well, like a kid coming off a sugar high, the market always wants more.
Kenneth Worthington (that name sounds made up) of JP Morgan summed up the sentiment:
“The crypto markets are in need of some excitement in terms of new products and/or new use cases to continue to drive the crypto markets to become more mainstream”.
Which from inside the Web3 community (and looking out), seems strange.
Just last week we wrote about:
The Step'n app paying folks to exercise
Royal.io letting users buy royalty shares in their favorite songs
Flyfish Club creating a private dining club accessed through NFTs
But these are small projects - and Wall Street wants big news.
Add to that, the fact that this year Coinbase has shed 47.61% of its value, along with Bitcoin's 16.39% and Ethereum's 21.13% - and you start to see why the market is on edge in the short term.
The good news: just like a sugar crash, this too shall pass.
Nike's NFT sneakers let you flex on your metaverse friends...if that's your thing?
In December of last year Nike made a 'big dog' move and acquired the NFT studio known as RTFKT (pronounced artifact).
Since then, everyone has been wondering what was going to come of it.
All we had to go off was a sneak preview of a Nike branded monolith (very '2001: A Space Odyssey' of them).
Today, we found out.
The first of 'many digital products lined up' was the RTFKT Nike Dunk Genesis, which are digital NFT sneakers that users can uniquely customize by completing puzzles and quests.
Will these quests be made in the physical or virtual world? No idea!
The announcement video was slick, but vague.
Our question is: why don't they adopt the run-to-earn model?
It'd be a match made in heaven! Are you kidding??
In comparison, digital sneakers that you can maybe one day wear in the metaverse? That feels like a bit of a let down.
...perhaps run-to-earn functionality is one of the 'many digital products' in the pipeline.
Who knows? Let's hope so!
Resource of the day
What is a crypto ‘flash loan’
(learn in under 7 mins)
How to own real estate for $50...no, really!
Option A) create a time machine and travel back to the 1930's
Option B) stay in the present and buy into a real estate DAO, like Lofty AI.
We hear you saying:
'Woah, woah, woah, back up. You're throwing around some hefty terms here. What is this real estate DAO you speak of?'
Fair point.
The Lofty AI DAO is essentially a real estate investment fund that you can buy into using cryptocurrency.
DAO funds are often formed around specific projects (in this case, buying real estate), any money contributed to the Lofty AI DAO gives the investor a share of profits (paid out daily) and a say in how the properties are managed.
The cool part is, the cost to 'buy in' is low - Lofty AI's rental property shares start at just $50.
(side note: the linked article states 'buy in' is $1k, but the Lofty AI website has it listed at $50)
For every fifty dollars a user invests, they get a token in return. The more tokens you own, the more shares you have, the greater your voting power.
Ok, so what's the downside?
Stuff like this:
"Nate Gipson got a notice back in February that one of his rental homes in Memphis, Tennessee, needed a new ceiling fan. As a landlord, he thought the request was reasonable enough.
But before the work could go forward, he had to hash it out with a group of other people who, like him, had purchased a stake in the property through a cryptocurrency website called Lofty AI. And some of them needed convincing."
That being said, for a generation that has been slowly squeezed out of the housing market - having the ability to buy into real estate with each pay check is a nice option to have.
Your Daily Dose of Web3
Coinbase to extend its reach by acquiring BtcTurk (largest exchange in Turkey) for $3.2 Billion
Shiba Inu launches SHIB Burning Portal: Here’s how that works
Decentralized credit scores: How can blockchain tech change ratings
Alright, that’s it for today!
Love to the family,