Good morning, and thanks for reading another edition of Crypto Dispatch!
Here’s a question we’re pondering: can Bored Apes swim?
We hope so. At the very least, we hope they have access to lifeboats on their yachts because it looks like the hype around NFT marketplaces is a sinking ship, with trading volume falling consistently over seven days.
CryptoBriefing reports that prices across the board have been in steady decline for blue-chip NFTs since the start of February, with highly prized artworks taking the hardest hits. BAYC NFTs, for instance, have lost roughly 60% of their value from their all-time highs, although on OpenSea, there are still apes going for tens of millions. CryptoPunks are also down 60%.
So why is everyone suddenly so bearish on NFTs? Maybe it has something to do with the wildly volatile markets and investors trying to play it safe amidst economic uncertainty, unprecedented energy costs and rising inflation. Maybe people are getting back to basics instead of pouring cash into digital art. Or maybe people are just moving on to the next hot thing.
Whatever the reason, if there’s a NFT you want, keep your eye on it. If it doesn’t go to zero, maybe you can snap it up for a bargain.
In today’s edition:
🙅♂️ Visa and Mastercard pull services from Russia simultaneously.
👻 Fantom employee ghosts DeFi community
Card Declined
Credit card companies Visa and MasterCard have joined a growing list of financial institutions suspending services in Russia as the invasion of Ukraine continues amid unprecedented economic sanctions.
What happened: On Saturday, the pair of prime players in global payments systems announced they would implement their own version of economic sanctions by limiting the use of Russian-issued cards outside the country and making foreign-issued cards useless within Russia’s borders.
- The credit competitors made announcements within 16 minutes of each other following a private call between Ukrainian President Volodymyr Zelensky and U.S. lawmakers.
- “We are compelled to act following Russia’s unprovoked invasion of Ukraine and the unacceptable events that we have witnessed,” said Visa CEO Al Kelly.
- PayPal Inc. also halted operations over the weekend due to “violent military aggression in Ukraine.”
This show of solidarity with Ukraine will come at a price as both companies report that business dealings with Russia and its retailers make up about 4% of net revenues.
It contrasts with crypto companies refusing to impose restrictions on Russian clients. Jesse Powell, CEO of Kraken, said his company would only block Russian users if “legally required.”
Jason Powell, CEO of Coinbase, has a similar sentiment, although the company did announce it had suspended 25,000 accounts suspected of engaging in “illicit” activity.
Why it matters: Western-imposed economic sanctions have already caused significant disruption to Russia’s economy. A large chunk of the country’s $650 billion central bank reserves are frozen, and the ruble’s price continues a steep and steady downslope.
- In 2015, the country began to develop independent financial tools, including SWIFT alternative SPFS, after seeing how the West responded to the annexation of Crimea.
- Russia’s largest lender, Sberbank Rossii PAO, said holders of Russian-issued cards
have nothing to worry about as the transactions will be processed on the domestic National Payment Card System.
But Russia may have already found an alternative to American credit card companies as it considers turning to China’s UnionPay system that could work in conjunction with MIR, the country’s home-grown payment network.
Cronje quits DeFi
Renowned blockchain developer Andre Cronje of the Fantom Foundation announced he would leave his position and quit the DeFi space, causing token prices to plummet and worrying investors.
What happened: Andre Cronje, DeFi architect and founder of Yearn Finance, is out of the DeFi world, according to a tweet by Anton Nell, who is a senior solutions architect at Fantom Foundation. The departure of the duo was announced on Sunday with no explanation.
- “There are around ~25 apps and services that we are terminating on 03 April 2022,” Nell said via Twitter.
- The news led to a drop in crypto prices associated with Fantom. As of this writing, Yearn is down 12%, and Fantom token (FTM) is down 23% over the past seven days.
Fantom Foundation’s CEO/CIO, Michael Kong, logged on to social media to do some damage control.
- Kong clarified that Cronje and Nell are not “terminating” 25 projects; they are “terminating” their involvement with the projects.
- Permissionless smart contracts don’t require any developer input to continue operating, so Cronje’s protocols will continue to function as long as they “are immutable or don’t require Andre’s approval for changes,” said former Ethereum developer James Hancock.
Why it matters: An inspirational and aspirational developer leaving for greener pastures is one thing, but no one knows why Cronje is turning his back on a system he helped build. The decision to stop “contributing” to DeFi and crypto sectors comes on the heels of criticism over security flaws in one of his projects.
Bottom line: The development is a reminder to investors that crypto is an incredibly volatile space, and the decision of one or two influential players can quickly move markets.
Bits & Blocks
Binance introduced Bitfinity, a fiat-to-crypto payments provider that aims to help businesses become “crypto ready.”
Crypto exchange FTX has launched FTX Europe via a licensed investment firm to increase its customer base in Europe and the Middle East.
Casetify is putting NFTs on phone cases, but only if you can prove ownership over the image.
Malaysia has an electricity theft problem and claims Bitcoin mining operations are to blame.
Take a look at this video of happy pets and their owners at El Salvador’s Chivo-Pets Veterinary Hospital, where treatments are only 25 cents if you pay in Bitcoin.
Another unicorn got its horn! Immutable, an Australian NFT gaming startup just secured $200 million in funding, valuing the project at $2.5 billion.
Steve Wozniak, the Apple co-founder, told Business Insider that Bitcoin is based on “pure gold mathematics.”
Rumour has it that Bitcoin could plunge even further in 2022. Want to know what’s really going to happen? Join insider Bryce Paul for The LIVE Crypto Forecast. Click here to register. *
*Sponsored Content