NFT
This week, Louis Vuitton announced a new collection of physically supported NFTs linked to exclusive products and experiences. The pricey tokens are soul-bound and cannot be sold once purchased.
Meanwhile, Apple announced its new Vision Pro headset with a hefty price tag and no use of the word metaverse whatsoever. Moreover, NFT lending platforms are on the rise, but who really benefits from this practice?
This week’s alpha
C’est bon, Louis Vuitton: French luxury fashion house Louis Vuitton will soon release a new collection of physically supported NFTs called Via Treasure Trunks, which will later be paired with exclusive experiences and products. Consumers in the US, Canada, France, UK, Germany, Japan and Australia can register to get their hands on the exclusive treasure chests, which will be made available to select customers on June 16. Each NFT costs €39,000 including tax or $39,000 without tax in the US
Lifetime Luxury: The briefcases are sold as soul-bound tokens, meaning they are non-transferable after purchase. However, the brand plans to release limited products and experiences “at regular intervals” throughout the year, which holders can flip for profit.
Blocked by the chain: Louis Vuitton previously embraced blockchain technology as a way to track luxury goods and tackle counterfeiting.
Blink different: This week, Apple announced its new Vision Pro mixed reality headset, finally entering the growing arena of immersive digital technology. The new device, which it calls a “spatial computer” rather than an augmented reality headset, will be released next year at a cost of $3,500. The device will introduce VisionOS, a spatial operating system that provides a three-dimensional interface, releasing applications from the confines of traditional screens and bringing them into real-world spaces.
Metaverse blueprint: While Apple avoided using the term metaverse, it’s likely that Apple has been influenced by competitors like Microsoft and Meta. “It builds on theories developed by the metaverse industry over the past few years,” Mytaverse co-founder and CTO Jaime Lopez told CoinDesk.
NFT lending is trending: Despite the subdued market conditions, the NFT lending space has taken off thanks to the major players who have joined the space. In May, leading NFT marketplace launched Blur Blend – a peer-to-peer lending platform that allows users to borrow against their NFTs as collateral. The platform quickly captured 82% of the total market share of NFT loans within the first three weeks. Other platforms — including Binance NFT Loan, which allows holders to secure ETH loans by using their NFTs as collateral, and Astaria, which uses a third party to facilitate its lending market — have popularized the concept of NFTfi in recent weeks.
Predatory behavior: While NFTfi tools increase the liquidity of the NFT market, critics are urging new traders to understand the consequences before engaging in risky behavior. “[Blend is] pitched as a ‘buy now, pay later’ that uses a perpetual back loan, which is super predatory to the borrower,” Karan Karia, vice president of business development at Wasabi Protocol, told CoinDesk.
Emerging projects
Stand with CryptoWho: CoinbaseWhat: In March, crypto marketplace Coinbase released an open edition commemorative NFT called “Stand with Crypto” as a symbol of support for the crypto community in times of adversity, such as the current SEC crackdown. The blue shield, a symbol that many on crypto Twitter have integrated into their usernames, contains a QR code that Coinbase says will be updated periodically, giving the community more advocacy opportunities over time. The NFT recently received new approval after news of the U.S. Securities and Exchange Commission (SEC) lawsuit against Coinbase emerged. Shortly after the news broke, Coinbase CEO Brian Armstrong tweeted the link to hit the NFT. The lawsuit came a day after the SEC sued Binance.How: The freely available NFT can be spent through Zora. All fees associated with the coin process will be donated to vetted organizations through a crypto advocacy round through Gitcoin. The NFT has no intended use or value.
In other news
Non-Fungible Superhero: Warner Bros. releases the Superman Web3 Movie Experience, a multimedia NFT collection built around 1978’s ‘Superman: The Movie’.Playing the long game: Investments in blockchain games and metaverse projects reached $476 million in May – the highest this year despite shaky market conditions.Metaverse Money: Metaverse giant Animoca Brands has released its fiscal year 2020 annual report, noting a deferred 2020 revenue increase from $6,947 million to $27,890 million.
Non-fungible toolkit
Binance Exchange: Your Questions Answered
Crypto’s biggest story of the week was the SEC’s actions against Binance and Coinbase. The lawsuit against Coinbase is relatively simple (read more about it here), while the 13 charges against Binance.US and its CEO and founder Changpeng “CZ” Zhao are more complicated and have people wondering about the differences between the US version of Binance and its larger international exchange. We dive into the background of CZ, the two Binance exchanges and the timeline of events that brought us to this moment in our Binance FAQ.