Snapshot Web3

October 27, 2023

👨‍⚖️

Regulatory and Legal News

Ryder Ripps ordered to pay Yuga Labs $1.6M in copyright lawsuit

NFT artists Ryder Ripps and Jeremy Cahen have been ordered by a U.S. district court judge to pay Bored Ape Yacht Club creator Yuga Labs a total of $1.57 million in disgorgement and damages, along with legal fees, in a copyright lawsuit. The judge ruled that the defendants intentionally infringed Yuga’s trademarks and rejected their argument that the copycat versions were “satire” and “parody.” Yuga Labs filed the lawsuit in June 2022, and the recent order follows an April partial summary judgment in favor of Yuga Labs. The judge deemed the case an "exceptional" trademark infringement. Bored Ape Yacht Club is a highly valuable NFT collectible.

🚀

Innovation and Launches

Bitcoin is evolving into a multi-asset network

The Bitcoin network is evolving beyond its traditional roles. Since early 2023, there's been a surge in using Bitcoin's blockchain for storing various types of information, thanks to protocols like Ordinals. This protocol allows the permanent inscription of any file into the Bitcoin blockchain. This has led to a trend of storing NFT collections, music, games, articles, and more on the blockchain. The Ordinals protocol has seen improvements, including recursive inscriptions, allowing larger data to be stored on Bitcoin's blockchain. Additionally, Lightning Labs introduced Taproot Assets (TARO), enhancing Bitcoin's capabilities as a multi-asset network, with potential applications in issuing stablecoins on the Bitcoin blockchain. These developments are transforming Bitcoin from primarily an exchangeable asset to a medium for various exchanges and transactions. This shift is attracting new developers and users to the Bitcoin ecosystem.

Circle launches ‘points-to-crypto’ program with Taiwan convenience store chain

United States-based stablecoin issuer Circle has joined hands with Taiwan’s second-largest convenience store chain, FamilyMart, and a local crypto exchange, BitoGroup, to introduce a "Points-to-Crypto" service on the FamilyMart app. This service will enable FamilyMart customers to exchange their loyalty points for Circle-issued USD Coin (USDC), which they can then withdraw to their BitoPro wallets. The move aims to preserve the value of loyalty points and provides an accessible route to cryptocurrencies without incurring transaction fees. Taiwan's high engagement in points accumulation and redemption supports the initiative. FamilyMart’s FamiPoints has over 17 million members nationwide, while BitoGroup boasts approximately 800,000 users.

Mastercard partners with crypto payment firm MoonPay for Web3 services

Mastercard has partnered with MoonPay, a crypto payment platform, to jointly explore how Web3 tools can enhance experiential marketing and find new ways to engage with Mastercard’s consumers. This collaboration was announced at the Money20/20 event in Las Vegas. MoonPay will leverage its entire Web3 portfolio, including authentication and minting to ETHPass, and will collaborate with agency Otherlife for strategy, creative, and front-end development for Mastercard’s experiential initiatives. Additionally, MoonPay will integrate Mastercard products like “Click to Pay,” Mastercard Send, and Mastercard Crypto Credentials into its payment solutions to enhance compliance and trust in the Web3 industry.

♾️

NFT, Gaming and Metaverse

CryptoPunk holders offered physical versions of their NFTs for 48 hours

Holders of CryptoPunk non-fungible tokens (NFTs) now have the opportunity to obtain physical prints of their digital art items. Avante Art, in partnership with CryptoPunks brand owner Yuga Labs, is offering these prints for a limited time of 48 hours. There are two types of physical CryptoPunk collections available: "Punk-On-Chain," which requires ownership of the on-chain version to commission a print, and "10,000 On-Chain," which is a print collection of all 10,000 CryptoPunks available to anyone, regardless of ownership of the original on-chain version. Each printed punk comes with features to authenticate its origin and includes a Certificate of Authenticity. CryptoPunks is one of the first algorithmically generated art collections distributed through blockchain technology.

📵

Scams and Hacks

Scammers create Blockworks clone site to drain crypto wallets

Phishing scammers have cloned the websites of crypto media outlet Blockworks and Ethereum blockchain scanner Etherscan to trick unsuspecting readers into connecting their wallets to a crypto drainer. The fake Blockworks site displays a fake “BREAKING” news report of a supposed multimillion-dollar “approvals exploit” on the decentralized exchange Uniswap and encourages users to a faked Etherscan website to rescind approvals. Blockchain security firm Beosin reviewed the drainer’s smart contract and stated that the attacker aims to drain wallets with at least 0.1 Ether (ETH), worth $180. However, the drainer is incorrectly set up, and no phishing transaction is prompted after a wallet is connected.

ZachXBT Exposes Canadian Scammer Yahya in Multiple SIM Swap Attacks, Leading to $4.5M Theft

ZachXBT, an on-chain investigator, has exposed a Canadian scammer known as Yahya for allegedly orchestrating more than 17 SIM swap attacks, resulting in the theft of over $4.5 million. Yahya's role involved conducting account searches on various platforms, particularly Twitter, using his panel to identify potential targets in the United States for SIM swap attacks. He received over 390 ETH (worth around $720,000) from these attacks. ZachXBT also noted that Yahya spent thousands of dollars on luxury items and unreleased songs. This investigation follows previous revelations of high-profile individuals falling victim to SIM swap attacks, resulting in losses exceeding $13 million.

📚

Interesting Reads

Hashing It Out: A case for Web3 social media, and is Friend.tech a security?

In the 34th episode of Cointelegraph’s podcast series "Hashing It Out," host Elisha Owusu Akyaw interviews Ryan Li, co-founder of CyberConnect, about decentralized social media. Li highlights the advantages of Web3 social media platforms for content creators, emphasizing their confidence in content preservation and financial stability. He also discusses the growth and controversy surrounding Friend.tech, considering it as potentially a security due to how its key price is determined. Additionally, they explore how recent changes at major platforms like Meta and Twitter may impact Web3 social media adoption.

🌐

Miscellaneous

‘Buy Bitcoin’ search queries on Google surge 826% in the UK

Google searches for "buy Bitcoin" have surged worldwide, with the United Kingdom seeing an 826% increase in the past week. This spike in interest is attributed to the recent surge in Bitcoin's price. Searches like "should I buy Bitcoin now?" increased by over 250% in the United States, and niche queries such as "can I buy Bitcoin on Fidelity?" shot up by more than 3,100%. This heightened interest is likely linked to the approval of a spot Bitcoin exchange-traded fund (ETF), which many believe will prompt institutional buying. Bitcoin's price has risen over 27% in the past two weeks.

JPM Coin handles over $1B in daily transactions — JPMorgan exec

JPMorgan's digital asset, JPM Coin, now processes over $1 billion in daily transactions, according to Takis Georgakopoulos, the global head of payments at JPMorgan. The aim of JPM Coin is to address inefficiencies in current payment systems, particularly in terms of speed, tracking, and fungibility. Georgakopoulos also mentioned the potential for banks to create a digitalized version of deposits using blockchain technology, alongside the development of central bank digital currencies. JPM Coin, launched in 2020, serves as a stablecoin pegged to the U.S. dollar and facilitates real-time gross settlement for JPMorgan’s institutional clients. The surge in daily transactions from $300 million to over $1 billion in just four months is attributed to the launch of euro-denominated transactions via JPM Coin in June 2023.

Liked the newsletter? Share it with your network.

The information provided in this newsletter is for informational purposes only and should not be interpreted as investment advice, endorsement, or recommendation. Cryptocurrency investments carry significant risk due to their volatility. You should consider your financial situation, investment goals, and risk tolerance before making any investments. We strongly recommend consulting a qualified financial advisor before making any investment decisions. Past performance is not indicative of future results.