ICYMI - Last week in crypto: The Dangers of Celebrity Endorsements
Meanwhile, would you rock Nike's virtual Kicks? 👟
Last week, the Central Bank of Nigeria released a directive that will further enforce the use of its digital currency: e-Naira. More World Cup-themed NFTs were rolled out as Coca-Cola join forces with Crypto.com, Nike released new virtual sneakers NFT drops, and Singapore based startup, Numen Cyber launched an alliance with Binance to enhance security in the Web3 ecosystem.
Nigeria set to enforce use of CBDC, with ATM withdrawals limited to $225 per week
In an effort to advance its "cash-less Nigeria" policy and promote the use of the eNaira, Nigeria's central bank's digital currency(CBDC), the country has drastically reduced the amount of cash that individuals and businesses can withdraw.
In a Dec. 6 circular, the Central Bank of Nigeria stated that individuals and businesses would now be restricted to withdrawing no more than $45 (20,000 Nigerian naira) per day and $225 (100,000 naira) per week from ATMs.
Additionally, there will be a weekly withdrawal cap for both individuals and businesses of $225 (100,000 nairas) and $1,125 (500,000 nairas), respectively. Any amounts taken out in excess of those limits will incur a 5% fee for individuals and a 10% fee for businesses.
A $45 (20,000 naira) daily cap applies to the largest cash withdrawal permitted through point-of-sale terminals. Director of banking supervision Haruna Mustafa noted the following when announcing the changes:
“Customers should be encouraged to use alternative channels (Internet banking, mobile banking apps, USSD, cards/POS, eNaira, etc.) to conduct their banking transactions.”
The withdrawal limits are cumulative, so if someone takes out $45 from an ATM and then tries to withdraw money from a bank the same day, they will be charged a 5% service fee.
Before the announcement, the daily withdrawal caps for individuals and businesses were $338 (150,000 naira) for individuals and $1,128 (500,000 naira) for businesses.
Since the 25th of October 2021, when eNaira first launched, adoption rates have been low. Less than 0.5% of the population was reported to have used the eNaira as of October 25, a year after its launch, according to a report by Cointelegraph published on October 26. This indicates that the Central Bank of Nigeria has had difficulty persuading its citizens to use the CBDC.
Nigeria implemented its "cash-less" policy in 2012 with the justification that doing so would improve the efficiency of its payment system, lower the cost of banking services, and increase the efficacy of its monetary policy.
Godwin Emefiele, the governor of Nigeria's central bank, announced on October 26 that the bank would be reissuing new banknotes in an effort to promote the transition to digital payments because 85% of all Naira in circulation was held outside of banks.
Nigeria is one of 11 nations that have fully implemented a CBDC, and 15 other nations have started pilot programs. India is expected to join the group later this month, according to a CBDC tracker from the American think tank Atlantic Council.
WinAmp releases support for Music NFTs
In the most recent version of its desktop player, vintage PC-compatible media player Winamp has added support for music nonfungible tokens (NFTs) based on Polygon and Ethereum.
Since 1997, Winamp has been one of the most widely used media players for PC users, but it has since been surpassed by Windows Media Player and Apple's omnipresent iTunes.
It is known for supporting a variety of media file types, and the Winamp team stated that NFT support is now live and functioning in its most recent update announcement on December 7.
“We are proud to announce a new version (5.9.1) for our Desktop player. This new version reduces Winamp’s memory footprint and upgrades security among many other improvements, it also allows you to play your music NFTs. New version available now.” - @winamp announced in a tweet on December 6th.
Users can now load up the music embedded in ERC-721 and ERC-1155 tokens created on Ethereum and Polygon by connecting their Metamask wallets from a variety of browsers.
“The genesis of Winamp has always been about accessibility and innovation, and today we are proud to launch the very first standalone player reading audio NFTs, as well as any other existing formats,” said Winamp CEO Alexandre Saboundjian in a statement.
There may soon be a large selection of Polygon-based music NFTs available as well. On December 7, the developers of the Ethereum scaling solution also disclosed their collaboration with Warner Music and LGND Music on the creation of a "collaborative, digital collectible" music platform.
The platform, known as LGND Music, will launch in January 2023 and offer users a simple on-ramp to purchase and hoard music NFTs.
Crypto.com partners with Coca-Cola to launch World Cup NFTs
Coca-Cola and Crypto.com have teamed up to release a special collection of NFTs that show player heat maps from 2022 FIFA World Cup matches.
A Dec. 5 announcement stated that GMUNK, a digital artist best known for his work on the well-liked sci-fi movies Tron: Legacy and Oblivion, is creating the artwork for the 10,000 NFT collection. A precise launch date, however, was not provided.
Due to the fact that they show how much of the field a player covers and which specific areas of the field they spend the most time in, heat maps in soccer are frequently used to evaluate a player's performance during a match.
The creation of artwork using in-game data might offer a creative way to make collectibles from important sporting events.
This initiative, which combines digital art and football, is a part of Coca-Cola and Crypto.com's dedication to continuing to provide fans with magical World Cup experiences.
Following the creation of an account on the Crypto.com NFT platform, the NFTs will be accessible to football fans worldwide. For a chance to own a Coca-Cola 'Piece of Magic' NFT inspired by FIFA World Cup Qatar 2022TM, qualified fans only need to register on Coca-Fanzone Cola's page and click on the NFT banner. This new type of memorabilia will live forever on the blockchain.
Artist Gmunk added: “At its core, Coca-Cola ‘Piece of Magic’ uses football data as our paintbrush, defining densities, behaviors and applications of color to shape and create an immersive piece of art that embraces the spirit of football and depicts a visual story unique to each match.”
Nazli Berberoglu, FIFA World Cup General Manager at The Coca-Cola Company: “The FIFA World Cup™ in Qatar is about bringing magical moments to life on and off the pitch for millions of fans from the region and beyond. This incredible collaboration with GMUNK will see 10,000 stunning and unique ‘Pieces of Magic’ in the form of NFTs available for fans to own forever.
“A superb talent who has consistently pushed the boundaries of art’s newest and most exciting field, GMUNK’s ‘heatmap’ inspired NFTs will capture the passion and determination shown by players during the World Cup – as they battle it out on the pitch, their athleticism and performance will inspire incredible works of digital art.”
“This year’s FIFA World Cup will be the first to leverage Web3 technology” said Steven Kalifowitz, Chief Marketing Officer at Crypto.com.
“It’s a privilege to partner with Coca-Cola and GMUNK to memorialize these historical matches that will forever be captured on the blockchain. Together we are creating a completely new form of memorabilia.”
Nike's New NFT Drop Will Connect Virtual Sneakers to Real Ones
As the market leader in major brand NFT sales, Nike is now collaborating with virtual collectibles design studio RTFKT to link digital sneakers to physical ones.
The Cryptokicks iRL line, which Nike is referring to as "the first native Web3 sneaker," will include a limited edition of 19,000 sneakers in four different designs.
Only a special "forging" NFT, which is available on the secondary market, can be burned to obtain them. This NFT will mint an NFT version of the shoes and enable users to order an iRL in their preferred size and style.
Holders of an existing Lace Engine NFT will be able to start minting on December 12, while registration for the public mint drawing will be open from December 7 to December 9 on RTFKT.com. Prices range from $450 to $1,333 and are paid in ETH.
The fact that the physical shoes will only ship to U.S. addresses in May is upsetting some people in the competitive collectible sneaker market.
The shoes will include "the next evolution of smart sneaker technology," which combines artificial intelligence/machine learning with enhanced and upgradeable lighting packages, haptic feedback, gesture control, walk detection, app connectivity, and wireless charging. The company designed the auto-lacing technology for the Air Mag for the movie Back to the Future 2 more than 30 years ago.
Although Nike withheld many details regarding the interactions between the physical and digital versions of the shoes that are NFC-linked, the technology strongly suggests that Nike at the very least intends to pair the shoes in metaverse and game settings.
Connecting people and avatars in virtual and augmented reality would benefit from gesture control, walk detection, and haptic force feedback. And it would appear that AI/ML would allow for room for improvement and functionality addition.
The physical shoes will have an RTFKT NFC chip that will use an app to connect both the physical and digital Cryptokicks. An NFT that works with RTFKT's line of premium CloneX metaverse avatar NFTs will be available for the digital version of the shoes.
Dune Analytics claims that Nike's NFT sales are so far in front of other well-known consumer and fashion brands that it isn't even a race.
Nike had $185 million in NFT sales in October, which is 14 times more than Dolce & Gabbana, the No. 2 brand on that list, and 10 times more than the remaining top 10 brands combined. Furthermore, while adidas only made $11 million off of 50,000 sales, Nike made that much off of 67,000.
Amber Group drops Chelsea Sponsorship amid fears over company’s future
According to Bloomberg, a troubled cryptocurrency trading platform is terminating a high-end sponsorship agreement with Chelsea Football Club.
As the bear market bites, Amber Group is reportedly cutting its workforce from 700 to 400 and shifting its emphasis from retail customers to large institutions.
According to Bloomberg, this will cause Amber Group's clientele to effectively drop from hundreds of thousands to just 100, a startling reversal.
The organization, which operates the WhaleFin trading platform, had its logo displayed on the sleeves of English Premier League players.
The sponsorship agreement is thought to have been worth up to $25 million to Chelsea, and it represents the most recent retreat of cryptocurrency companies from lucrative partnerships with sports teams.
In other news, according to the Financial Times, Amber Group only succeeded in raising $50 million of the $100 million it was aiming for during a funding round.
There have been many worries that the company could be impacted by FTX's bankruptcy. Although it isn't exposed to Alameda Research, the sister trading company of the failing exchange, it did have some funds on FTX.
Annabelle Huang, managing partner of Amber Group, vehemently refuted claims that there had been a disruption to the company's regular operations in an interview with the newspaper, calling such speculation "predatory and misinformed."
Crypto Twitter was also alarmed when it was stated that an examination of open blockchain records revealed Amber Group had assets worth only $9.46 million.
Huang argues that private transactions are not included in @lookonchain's statistics, and she insists that withdrawals are still available as usual.
Tiantian Kullander, a co-founder of Amber Group, passed away suddenly at the age of 30 late last month. The business referred to him as a "respected thought leader" and a "industry pioneer" in a statement, adding:
"He put his heart and soul into the company, in every stage of its growth. He led by example with his intellect, generosity, humility, diligence and creativity."
Yuga Labs, Moonpay slammed with lawsuit over celebrity NFT promotion
A class-action lawsuit has been filed against Yuga Labs, the company behind the Bored Ape Yacht Club (BAYC) and the cryptocurrency fintech Moonpay, for allegedly using celebrities to falsely advertise and market nonfungible tokens (NFTs).
In the lawsuit, more than 40 parties—including Paris Hilton, Snoop Dog, Jimmy Fallon, Justin Bieber, Madonna, Serena Williams, Post Malone, and Diplo—are listed as defendants.
According to the class-action lawsuit, which was brought on December 8 in the Central District of California by John T. Jasnoch of Scott+Scott Attorneys at Law LLP, the cryptocurrency companies used their Hollywood connections to promote the digital assets without making the required disclosures. The report claims:
“This case epitomizes these concerns as it involves a vast scheme between a blockchain start-up company, Yuga Labs, Inc. (‘Yuga’), a highly connected Hollywood talent agent (Defendant Guy Oseary), and a front operation (MoonPay), who all united for the purpose of promoting and selling a suite of digital assets.”
The lawsuit claims that Yuga Labs and Oseary executives devised a strategy to take advantage of their extensive network of A-list athletes, musicians, and celebrity clients in order to give investors the impression that they were "joining the club" by purchasing Yuga's bestselling NFT collection.
“The exclusiveness of BAYC membership was entirely based on the inclusion and endorsements of highly influential celebrities. But this purported interest in, and endorsement of, the BAYC NFTs by high-profile taste makers was entirely manufactured by Oseary at the behest of the Executive Defendants,” alleges the suit.
Adonis Real and Adam Titcher, the two plaintiffs in the case, bought collections from Yuga Labs NFTs between April 2021 and the present. Additionally, the class action makes reference to a previous Securities and Exchange Commission (SEC) statement that stated celebrity endorsements "may be unlawful if they do not disclose the nature, source, and amount of any compensation paid, directly or indirectly, by the company in exchange for the endorsement."
According to a Yuga Labs spokesperson, the "claims are parasitic and opportunistic. We are eager to demonstrate our conviction that they are without merit.
The class-action lawsuit was first put forth in July, according to Cointelegraph, when the law firm Scott+Scott alleged Yuga Labs used celebrity endorsements to "inflate the price" of the BAYC NFTs and the APE token in an effort to find investors who had been harmed.
Additionally, Yuga Labs is a subject of a broader investigation by US regulators into the NFT market. According to reports, the SEC is looking into Yuga Labs to determine whether some NFTs are "more akin to stocks" and whether selling them is against the law.
Numen Cyber partner with Binance to improve the security of the Web3 ecosystem
Last weekend, Numen Cyber Technology, a Singapore-based provider of Web3 security solutions, announced that it is partnering with Binance, the largest blockchain ecosystem on the planet. Numen will collaborate with Binance to strengthen the security of the Binance ecosystem as part of the technical cooperation.
For the Binance ecosystem, Numen will offer security capabilities in a number of areas, including carrying out smart contract audits of on-chain projects. In order to avoid potential financial losses brought on by security attacks, Binance will also make use of Numen's proficiency in threat detection and response, as well as its security event analysis and backtracking.
Additionally, in order to eliminate any potential security risks and vulnerabilities within its ecosystem, both businesses will carry out Web3 security research to functionally improve the security levels of Binance and its related projects.
The technical collaboration between Binance and Numen aims to continue to bolster the security of the Binance ecosystem and assist in regaining the public's confidence in the security of the Web3 industry as the threat landscape for the technology quickly changes.
Web3 security solutions are the focus of Singapore-based cybersecurity firm Numen Cyber Technology. Some of the most well-known Web3 projects in the world, including Aptos, Sui, Eos, Ripple, and Tron, have critical flaws that the organization has found.
It provides Web3 security services, such as security audits for smart contracts, public blockchains, smart wallets, and exchanges, that can completely cover all phases of a Web3 project's lifecycle and are provided by its Cyber Labs team, which is made up of the top security experts in the world.
In order to safeguard the security of digital assets for Web3 projects and their users, Numen additionally provides on-chain smart contract threat detection and response, situational awareness for Web3 security, digital currency tracing, and Web3 threat intelligence.
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