How 'The Coinbase Effect' added $7.8B to Cardano
GM, we take the latest Web3 news and translate it into plain Jane English - so you can stay up to date, without your eyes glazing over.
In today’s edition:
'The Coinbase Effect' adds $7.8B to Cardano
Grammy winner, Diplo, shares song royalties with fans
RESOURCE: What exactly is a smart contract? Find out in 8 mins.
Is Zuck about to launch a crypto exchange?
'The Coinbase Effect' adds $7.8B to Cardano
After a seemingly minor change to Cardano's functionality on Coinbase, its native 'ADA' coin (named after Ada Lovelace the 19th-century mathematician who is recognized as the first computer programmer) gained ~$7.8B in value over five days.
This is known as 'The Coinbase Effect', a phenomenon usually attributed to the rise of a coin's price, after it's added to the platform.
Coinbase can have such a big effect on a single coin, because it's the largest US-based crypto exchange in the world, and is used by some of the biggest investors in the business.
(the 'big dogs', if you will)
But Cardano was already available on Coinbase, so what caused this move?
Coinbase enabled ADA staking on their platform, which is essentially the crypto version of a high interest savings account.
Investors put their ADA in a 'staking pool' and earn ~5% interest p/y on it.
Not bad.
Congrats to our readers who hodl Cardano!
Grammy winner, Diplo, shares song royalties with fans
If you've ever wanted an example to point to and prove NFT's are more than just .jpegs, now you have it.
Three-time Grammy winner Diplo will release his single "Don't Forget My Love" next Tuesday, and fans will be able to buy a share of the song's royalties.
Here's how the splits work:
'Gold' tier NFTs will be priced at $99 and entitle the owners to receive 0.004%
'Platinum' tier NFTs will be priced at $999 and entitle the owners to receive 0.05%
'Diamond' tier NFTs will be priced at $9,999 and entitle the owners to receive 0.7%
In total, 20% of the songs royalties will be made available to the public.
At the Diamond Tier, the song would need to pull in $1.43M in lifetime royalties, in order for the owner to break even.
While Diplo is certainly capable of pulling those sorts of numbers, it (like all things in life) is not guaranteed.
Let's hope it's a banger!
Resource of the day
What exactly is a smart contract? Find out in 8 mins.
Is Zuck about to launch a crypto exchange?
By the looks of Meta's trademark filings , he is.
The real question is: do they have the stockpile of consumer trust required for folks to want to buy, trade and store crypto with them.
Magic 8 ball says: outlook not good.