The Metaverse Is Real! 🔮🌎

PLUS: PayPal applies for NFT marketplace patent. Buenos Aires to issue blockchain-based digital ID.

Author

Manan Vora
September 29, 2023

Snapshot Web3

September 29, 2023

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Regulatory and Legal News

The U.S. Securities and Exchange Commission (SEC) has postponed its decision on several spot Bitcoin exchange-traded fund (ETF) proposals, including those from BlackRock, Invesco, and Bitwise. The delay, occurring ahead of an expected government shutdown, also affects applications from Invesco, Bitwise, and Valkyrie. Analysts anticipate further postponements for proposals by Fidelity, VanEck, and WisdomTree. The SEC's action is linked to the potential U.S. government shutdown on October 1. The next set of deadlines for these firms is in mid-January, with the possibility of further delays. The SEC must make a final decision by mid-March at the latest.

According to information obtained by FOX Business, Valkyrie Investments has won the race to offer the first exchange-traded fund that includes Ethereum futures, a significant development in the proliferation of digital assets in the United States. Valkyrie is the first of nine issuers to receive approval from the Securities and Exchange Commission, offering investors the opportunity to invest in the future price of the world's second-largest digital asset through a fund called an ETF.

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Innovation and Launches

Buenos Aires, the capital of Argentina, is set to implement a blockchain-based digital identity system. Starting in October, residents can access identity documents through a digital wallet. Initially, birth and marriage certificates, along with proof of income and academic verification, will be available. The technology behind this initiative is QuarkID, a digital identity protocol by Web3 firm Extrimian, utilizing zkSync Era, an Ethereum scaling protocol. This allows secure sharing of information without revealing specific details. The system aims to enhance government services' efficiency and safety and will be further expanded across the country.

PayPal has applied for a patent for a nonfungible token (NFT) purchase and transfer system, outlining a platform for trading NFTs both on- and off-chain. The application envisions a system allowing users to buy and sell NFTs through a third-party service provider, with Ethereum mentioned as a potential platform. PayPal's patent details a comprehensive use of NFTs, including digital art, music, tickets, and legal documents. The system also supports fractionalized purchases, governance tokens, and the use of a decentralized autonomous organization to promote NFT liquidity. Compliance and risk management are also part of the proposed process.

The central banks of France, Singapore, and Switzerland, in collaboration with the Bank for International Settlements, have successfully tested cross-border trading and settlement of hypothetical euro, Singapore dollar, and Swiss franc central bank digital currencies (CBDCs) using decentralized finance (DeFi) technology on a public blockchain. The project, called Mariana, is considered an experimental success, but it doesn't imply an immediate intent to issue CBDCs or endorse specific technologies. Further research and experimentation are needed.

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NFT, Gaming and Metaverse

Mark Zuckerberg's recent demonstration of photorealistic avatars in the metaverse using Meta's Quest 3 headsets impressed many, including Crypto Twitter users. The technology, known as Codec Avatars, creates fully photorealistic avatars in real-time using face-tracking sensors in headsets. However, widespread availability is still a few years away, as it currently requires expensive machine-learning software and specialized equipment for head scans. Zuckerberg expressed the company's goal to reduce barriers, possibly making scans achievable with regular smartphones in the future. This demo followed Meta's unveiling of its new AI assistant, Meta AI.

Tottenham Hotspur, a Premier League football club, is set to issue its own fan token on the Chiliz blockchain through Socios.com. This initiative aims to enhance supporter engagement and offer rewards through Web3 technology. The fan token will allow holders to participate in on-chain voting on various team dynamics. Additionally, the club will partner with MatchWornShirt for auctions of jerseys authenticated on the Chiliz blockchain. The SPURS tokens are scheduled to launch on October 4 and will be listed on exchanges supporting Chiliz tokens. The move is part of a growing trend among major football teams leveraging blockchain for fan engagement.

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Quick Links

IOHK congratulated the Cardano Community for the growth it has experienced over the years and the milestones achieved while thanking everyone involved in the project for their dedication.

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Miscellaneous

The World Federation of Exchanges (WFE) acknowledges the potential of crypto-asset trading platforms (CTPs) in the mainstream economy. It advises CTPs to embrace regulation for market credibility, emphasizing six key principles for their governance. The WFE also underscores the importance of integrating distributed ledger technology (DLT) into traditional exchanges. It cautions against stifling regulated institutions from participating in the crypto space. The WFE acknowledges the existence of central elements in decentralized finance (DeFi) platforms and supports regulatory efforts to enhance market standards.

Ripple has decided not to proceed with the acquisition of Fortress Trust, just 20 days after the initial announcement. Ripple CEO Brad Garlinghouse confirmed the decision, stating that Ripple will remain a shareholder in Fortress Trust’s parent company. The acquisition was originally announced on September 8, but was later affected by a security incident involving a third-party analytics vendor. Fortress CEO Scott Purcell noted that the cancellation of the merger is unrelated to the incident and emphasized that Ripple remains a valued partner and investor in Fortress.

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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.

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