Former wealthy NFT buyers party in pain

 

Former wealthy NFT buyers party in pain

Image Credits: Alex Zhang

Welcome back to Chain Reaction.

Last week we talked about the boundless pessimism in the crypto market. This week we're talking about parties tattoos booze and fun.

If you'd like to receive this information in your inbox every Thursday you can subscribe to

 TechCrunch's newsletter page.

Exit opportunity

At this point it’s no secret that many onlookers are gleefully watching cryptocurrencies crash as coins plummet and NFT volumes dwindle. Throughout the bull market the cryptocurrency industry has managed to create a plethora of consumer enemies — critics highlight aggressive energy Use the addictive profile of crypto investing and how NFTs have become "playboy pyramid schemes" - as their reason for disgust.

With the bull run coming to an end it might be a good time to reflect on how investors' web3 vision for the web has consumers excited rather than skeptical but something tells me that the crypto industry will become more isolated than ever.

This week NFT residents poured into Times Square in New York. Expensive images appeared on giant advertising screens symbolic parties took place and many collectors who were suddenly less wealthy found ways to sympathize and double down. My co-host Anita had a chance to visit NFT NYC Some thoughts in person and given below but in some ways the positive vibe showcases an industry's transition from growth mode to survival mode.

The survival version of the NFT world certainly looks a little different. At this week's event the Bored Ape Yacht Club hosted a music festival featuring Future LCD Soundsystem and Amy Schumer. Tame Impala headlines Kevin Rose's Moonbirds event token holders can get owl tattoos on site. NYPD busts token-gated NFT party. One project employed dozens of protesters who stood outside their event holding signs that read "God hates NFTs." An NFT startup has hired a Snoop Dogg impersonator "Doop Snogg" to walk around their events as the default fake spokesperson.

Finally it’s no secret that the NFT market is flooded with a lot of crap and any bear market can and should bring some sanity back to what’s left but the lines in the NFT space seem a little blurry.

In some ways it feels like wealthy collectors in the NFT space are jettisoning space as the worlds they build prepare for collapse. The so-called blue-chip project with 10+ ETH bottom-line VCs and massive trading volume is facing While the value of the underlying cryptocurrency on which they are based is declining NFT projects have taken a major hit across the board as less wealthy collectors look for exit liquidity where they can keep struggling.


It’s time for NFT NYC this week a crypto conference that draws influential investors and celebrities to NYC (more from Anita below who’s been hanging out around the city talking to the NFT community). We took a deep dive into the NFT market itself and what Even with such tough market conditions for cryptocurrencies and technology as a whole it could fuel a boom in the NFT space. We end the week with two DAO-related disasters that may not bode well for the future of this recently popular but undeniably chaotic governance structure.

This week music and visual artist Latasha joins our podcast to talk about how NFTs have helped her claim her creative work and make a living from it. She shares her vision behind Zoratopia a festive experience she has hosted as head of crypto events across the US The community of NFT platform Zora.

Subscribe to Chain Reaction on Apple Spotify or your alternative podcast platform of choice to keep up with us every week.

follow the money

The direction of the flow of startup funds in the crypto world:

1. FalconX a digital asset platform for institutional investors announced the completion of a $150 million Series D financing at a valuation of $8 billion led by GIC and B Capital.
2. NFT collectibles project Doodles attracted an undisclosed amount of funding from Alexis Ohanian's Seven Seven Six.
3. Solana-based NFT marketplace Magic Eden has raised $130 million in a Series B round co-led by Electric Capital and Greylock Partners bringing its valuation to $1.6 billion.
4. Prime Trust a crypto and fintech infrastructure startup has raised $100 million in Series B funding from investors including FIS Fin Capital and Kraken Ventures.
5. Permissionless margin trading protocol OpenLeverage has secured a strategic investment of undisclosed size from Binance Labs.
6. A project by NFT-based comedy and meme tool company Terrible Pets from the producers of the TV show Silicon Valley raised around $4 million in funding led by First Round Capital XYZ Capital and Moment.
7. NFT liquidity provider Astaria has closed an $8 million seed round from investors including True Ventures and Arrington Capital.
8. Endstate a sneaker-focused NFT platform raised $5.5 million in seed funding from investors including Archetype and Castle Island.
9. Algorithmic exchange rate protocol Increment has raised $1.56 million in its seed round led by ParaFi.
10. Afropolitan has raised $2.1 million in pre-seed funding from Balaji Srinivasan and other investors to build a digital nation-state for Africans and the African diaspora.

Afropolitan raises millions from Balaji Srinivasan and others to build a digital nation

this week in web3

Hey here's Anita covering (almost) live at NFT NYC this week. Everyone who lives in Manhattan myself included is surrounded by a large crowd of happy people who are dismissive of this week's downturn. You can listen to this week's podcast to hear my thoughts on all of this but I want to Addressing a different question here: Is the crypto community practicing what they preach?

There has been a flood of complaints on Twitter from people waiting in line for hours to get NFT NYC passes. Even those who spoke on the panel had to wait in line with all the event attendees they told me who apparently circled up to three city blocks.

I've lived in NYC for a while so I'm not easily shaken by the long lines but it got me thinking about the irony of the whole thing. NFTs and their related technologies can provide simple authentication and authentication. NFT stans like to cite examples of events as their primary use They say the technology could make administrative burdens such as inspectors attending meetings more efficient. So where is the tech at this week's conference?

I'm sure hosting a crypto event involves creating order out of chaos in a way that is far beyond my own abilities so I wouldn't single out the NFT NYC organizers or anyone else in particular. But the NFT NYC line raised a bigger question in my mind the contradiction Between what the crypto community says about the future and what the crypto community actually does. Like why face-to-face meetings are even an important part of meeting people in web3? Shouldn't we all be past the point where we need to breathe each other's air to feel human? connect?

Based on what I've heard from most of the web3 community over the past year I expect we'll all be hanging out with our pals 24/7 on Metaverse by now. The crypto conference itself seems to present a huge opportunity for web3 enthusiasts to really take advantage of the technology Everything they say will change the way we live. Opportunities seem largely ignored so far.

TC+ analysis

Here's some crypto analysis from this week which you can read on our subscription service TC+ (written by TC's Jacquelyn Melinek):

Crypto’s emphasis on community can lead followers to fall off a cliff The idea 

of ​​a “family” culture promoted by many businesses is making its way into the world of cryptocurrencies as communities are formed on sometimes toxic cult stances to unwaveringly support them investment project Don't get me wrong some parts of the crypto community are great - I'm part of a handful of communities myself - but when misused it can lead to blind leading to blind.

Crypto founders face falling valuations leading to market volatility leading to deals As the cryptocurrency market continues to plummet founders in the space are struggling to retain investors who are now trying to minimize risk and exit funding rounds. The market is shifting to a venture-friendly market But not every founder is happy with how investors are now back in the driver's seat.

Crypto founders face falling valuations to drive up deals amid market volatility

Thanks for reading and if you'd like to receive this in your inbox every Thursday you can subscribe on TechCrunch's newsletter page. See you next week!