🧘♂️ALERT: This Project Is Unstoppable
Market Meditations | September 7, 2021
20 ETH Already!
Dear Meditators
Lately, in the trenches of ”Crypto Twitter”, there has been a lot of buzz around Loot Project, a collection that has now become the number one project traded on OpenSea, based on volume.
Even Vitalik Buterin, the creator of Ethereum, mentioned how much he likes the philosophy of the project in a tweet.
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⏰ In A Rush?
?? Bitcoin Now Legal Tender in El Salvador, Making World First
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?? Visa reportedly aims to integrate Bitcoin payments in Brazil
? Standard Chartered is more bullish on ether than bitcoin — with a $35,000 price prediction
?? FCA chair calls for greater powers to regulate crypto promotions
Our Market Meditations are longer format educational segments. Each letter features a Market Meditation which will deep dive and analyse a relevant crypto event, theme or tool.
⬛️ I Present To You… This Black Box
Example: Loot Project #1
Loot is the ‘atypical experiment’ of Vine co-founder Dom Hofmann ‘dhof’. His creation launched on 27th August. It was simple but genius and took the cryptoworld by surprise; he created 8,000 bags of “randomized adventurer gear” as shown in the image above☝️
Each bag contains 8 items for a supposed adventurer.
The design is intentionally minimalistic and leaves everything up to the imagination of the interpreter, even its functionality.
They are not physical or even digital bags. They are very literally white text on a black background which can be saved as an image and minted as an NFT.
The idea is that game developers can build a game or many games around these collectibles and anyone who owns the bags may be able to access the items within these yet to be created games. It’s a building block for a story.
It was free to claim the bags but you had to pay transaction fees. All 8,000 bags were sold in less than 4 hours.
⬛️ And.. Is This Black Box Valuable?
Value is in the eye of the beholder. This innovation has led to over 43 projects (and counting) being made around the Loot Project. From Loot characters to an AI that generates visual images of your Loot Project NFT, with those projects being listed on their website. The holders were even airdropped $AGLD, a community created DAO governance token, of which market cap stands at $300 Million, making the airdrop worth around $50,000!
Considering the floor price stands at 10 ETH as of this writing and has even reached 20 ETH previously, you may be thinking: this is just white text on a black background, why is it worth that much?
This is due to dhof’s approach to giving his creation value. Typically, the vast majority of creators out there, expand their ecosystem in hopes that this will increase the value and price appreciation of their NFT e.g. Bored Ape Yacht Club holders received Mutant Ape Yacht Club NFTs at no cost.
However, in the case of Loot Project, instead of the creator trying to give value to his/her project, he lets the community itself be in charge of that. In courtesy of Tandavas, we’ll call this the Bottom-up approach ?
✅ TIP: Floor price is the lowest price for collection items, rather than the average item price, and is updated in real-time.
⬛️ Okay, What Does It All Mean?
Little by little, we can see that a metaverse is forming around the initial NFTs, that’s decentralized by nature and could lead to something quite big. However, we have to be cautious, do our research and due diligence, because with great decentralization comes great responsibility. There is a chance that some of the projects being made could have ill intentions and potentially try to rug pull potential investors or cause harm.
Despite that, we can’t deny that the Bottom-up approach to NFT creation has attracted the interest of the world and that future projects could likely follow that path when it comes to making their own collections.
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? Bitfinex is Where?
In which country is Bitfinex regulating a security token platform?
Uzbekistan
Kyrgyzstan
Kazakhstan
? House of Cards-ano?
Cardano announced smart contract functionality had arrived on its Alonzo testnet last week, but soon faced criticism about a supposed concurrency issue that would render it impractically slow. Here’s a summary of the issue that was flagged and how the R&D community responded:
Like Bitcoin, Cardano is based on an Unspent Transaction Output (UTxO) system. UTxOs are receipts of previous transactions, with a remaining balance on them; a bit like vouchers or gift cards.
Unlike Ethereum, an owner does not have a balancein an account, they have a collection of one or more UTxOs. The “UTxO set” is the full list of existing UTxOs at a given point in time that represents the exact current supply of the asset.
Cardano utilises extended UTxOs (eUTxOs) that can also have smart contracts attached. However, to update the smart contract requires the spending (and destroying) of the existing eUTxO and the creation of a new one at the same address.
OccamFi pointed out in July that some developers were concerned about the fact this meant only one agent could interact with the smart contract at a time, which would be problematic for DEXs where multiple users need concurrent access.
However, the Cardano R&D community, IOHK, has pushed back saying this is a non-issue. In a long tweet thread, they claim that the choice of a UTxO system was for better security and fee predictability, and that developers simply need to design dApps with multiple UTxOs to ‘enforce more parallelism’.
For more background on what UTxOs are, this link provides a good summary, and for a quick recap on Cardano check out a short article from last month.
3. Kazakhstan
Hong Kong based exchange Bitfinex has just launched a new security token offering which will be regulated in Kazakhstan. Some of you may be wondering why Kazakhstan? Well, to those in the know it is considered anew emerging market, especially in the crypto sphere. Not only that but it is also geographically well placed to service both the Asian and European markets. This platform is planned to be available 24 hours a day 7 days a week, and will aim to provide investors diversification by raising capital for those who wish to trade their security tokens publicly.
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??♂️✍️ Stories in this newsletter were written by Isambard FA, Gerasimos P., Nick T., Max P., Kimia K., Ellen B. and Koroush AK. Graphics were produced by Gerasimos P.
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