Day: June 24, 2024

This post was originally published on this site

Pranksy’s Optimism in the Future of NFTs

Well-regarded non-fungible token (NFT) collector Pranksy has voiced optimism approximately the destiny of NFTs, countering a developing narrative in their decline. Pranksy, an early NFT investor who has built a large following and collection, recently asked his X followers about the last time they purchased an NFT. The post received nearly 118k views and more than 500 replies, prompting Pranksy to state that the NFT space is still living and breathing. “500 genuine replies, there is life in the old girl yet,” he wrote, implying that the future of NFTs is still active.

NFT Trading Data Paints a Different Picture

Pranksy’s optimism stands in contrast to data from CryptoSlam, which paints a more complex picture of the future of NFTs. In May, international NFT income totaled four million, marking the bottom month-to-month overall performance in view that October of the preceding year. It turned into additionally the primary month in 2024 to witness income beneath the It turned into additionally the primary month in 2024 to witness income beneath the $1 billion mark. billion mark.

Ethereum (NASDAQ:ETH), the leading blockchain for NFT sales with a historic volume of over $43 billion, experienced a decline in sales, recording $164 million in sales, the lowest since September. Notably, Ethereum’s number of unique buyers also dropped significantly, with only 56,914 unique buyers in May, the lowest count since June 2021.

The slump in NFT sales was not exclusive to Ethereum; even the Bitcoin (NASDAQ:BTC) network saw a decline. Bitcoin recorded zero million in month-to-month sales, the bottom discern considering the fact that October. Both the consumer and vendor anticipate the Bitcoin community hit their lowest factors this year. However, amidst the sales slump on major blockchains, Solana (NASDAQ:SOL) appeared to defy the trend in terms of activity.

Solana recorded $93 million in monthly sales, marking the first time it fell below the $100 million mark since November of the previous year. Solana additionally performed new information for month-to-month precise consumers and sellers, with 346,229 and 594,555 addresses respectively. Despite Solana’s active user base, the average NFT price on the network is experiencing a decline, with the average monthly sales value standing at $37.8, the lowest figure recorded this year.

Falling NFT Floor Prices Despite Bullish Crypto Trends

While the wider cryptocurrency marketplace has proven bullish tendencies in 2024, with numerous main tokens experiencing fee surges, NFT ground charges have now no longer accompanied suit. The top 5 major NFT collections have seen significant declines in their floor prices:

• Bored Ape Yacht Club (BAYC): Once the crown jewel of the NFT space, BAYC’s ground charge has plummeted from an all-time excessive of 153 ETH to round 8.ninety nine ETH.
• CryptoPunks: The iconic series has visible its ground charge drop from a hundred twenty five ETH at its top to twenty-five ETH.
• Pudgy Penguins: This collection of 8,888 penguin avatar NFTs on the Ethereum blockchain has also seen its floor price drop from 22.9 ETH to 8.99 ETH.
• Azuki: This anime-themed collection, once highly sought after, has seen its floor price dip from 31.8 ETH to 3.09 ETH.
• CloneX: Launched with the aid of using RTFKT, CloneX’s ground rate has reduced from 19.five ETH to 0.36 ETH.

These declines propose a full-size retracement from the heights of the NFT boom, at the same time as the wider crypto marketplace enjoys renewed investor confidence.

Companies Drop NFT Features

There has been a fashion of businesses discontinuing their involvement withinside the NFT space. In March, Starbucks (NASDAQ:SBUX), the renowned multinational coffee chain, terminated its NFT rewards program. In January, gaming retailer GameStop (NYSE) announced the closure of its NFT marketplace after scaling back its crypto services over the past two years. More recently, X, beneathneath the possession of Elon Musk, discontinued a function that allowed top class customers to apply NFT pictures as their profile pictures.

Despite the declining interest in the NFT space, there has been some positive news. Last month, renowned Portuguese footballer Cristiano Ronaldo revealed his collaboration with Binance for the launch of his fourth NFT collection. The collection, unveiled on May 29 on the Binance NFT Marketplace, pays homage to Ronaldo’s illustrious career, showcasing highlights from his football journey.

However, it’s worth noting that Ronaldo has been embroiled in legal issues related to his involvement in NFT collection sales with Binance. In November 2023, Ronaldo confronted a class-movement lawsuit in a United States district courtroom docket in Florida. The plaintiffs alleged that Ronaldo had actively participated in the offer and sale of unregistered securities in collaboration with Binance, arguing that he should have been aware of Binance’s involvement in such activities.

Conclusion

In summary, while Pranksy’s optimism about the future of NFTs is notable given his status and experience, the data from CryptoSlam tells a more nuanced story. The average decline in buying and selling volumes and falling ground costs of pinnacle collections spotlight the demanding situations going through the marketplace in 2024. Despite some positive developments, the future of NFTs continues to navigate a complex and volatile landscape.

Featured Image:  Freepik © Freepik

Please see disclaimer

This post was originally published on this site

Risks of Celebrity Crypto Endorsements

Pop icon Jason Derulo finds himself at the center of controversy after promoting a meme coin named JASON, which plummeted in value shortly after its release. Known for his musical performances, Derulo’s involvement in the volatile meme coin market has initiated a broader debate about the ethical concerns and potential risks of celebrity crypto endorsements. This incident has led to significant monetary losses for investors and reputational damage for the celebrities involved.

The Fallout: Derulo and Sahil Arora

Recently, Jason Derulo took to X to announce the launch of the meme coin JASON to his 3.5 million followers. Unfortunately, the coin’s value dipped by more than 72% minutes after its release, causing widespread dismay among investors and fans. In reaction to the fallout, Derulo pointed palms at Sahil Arora, a parent formerly connected to cryptocurrency scandals. Attempting to rectify the situation, Derulo tweeted:

“Damn Sahil got me! That’s ok, that’s motivation to take this all the way! I just bought $20,000 worth. In this for my enthusiasts for the lengthy haul, going to do the whole thing in my energy to ship this sh*t to the moon.”

Derulo then addressed the issue in an apology video, expressing his commitment to making the coin’s recovery his “life’s goal.” Despite his proactive stance, skepticism surrounds Jason Derulo’s involvement with the JASON meme coin. Influential crypto figures, along with SlumDOGE Millionaire and on-chain detective ZachXBT, have solid doubt on Derulo’s claims.

Criticism from the Crypto Community

SlumDOGE Millionaire criticized Derulo, stating, “Bro made SlumDOGE Millionaire criticized Derulo, stating, “Bro made $1 million off his rug and put $20,000 again withinside the chart lol. million off his rug and put ,000 again withinside the chart lol. You’re not stupid or new to crypto, Jason; you know exactly what was happening. Don’t play dumb now.” The liquidity of the JASON meme coin is alarmingly low, at approximately 1,000, with around 3,190 holders. This situation mirrors other high-profile crypto scams where initial excitement leads to significant financial losses for ordinary investors.

The crypto community’s reaction has been overwhelmingly critical. ZachXBT, known for exposing crypto scams, responded to Derulo’s apology video, saying, “You are not sorry at all. You have promoted so many crypto scams over the years I have lost track.” He further added, “Projects will throw them high 5 fig – low 6 fig for Ongoing Celebrity Meme Coin Promotions.”

Repeated Offenses by Sahil Arora

This incident related to Derulo isn’t the primary of its kind. The accused developer, Sahil Arora, has launched several other celebrity-associated meme coins. Notably, Arora has been connected to latest meme coin scams regarding celebrities Caitlyn Jenner and Rich The Kid. Arora’s handle, “@Habibi_Comm,” turned into suspended following information of his involvement in pump-and-unload and rug-pull schemes thru movie star crypto tokens.

Both Jenner and Rich The Kid have publicly condemned Arora, with Jenner pronouncing plans to pursue prison movement towards him each criminally and civilly. The pattern of these scams highlights the need for greater awareness and caution among both celebrities and their followers when engaging with cryptocurrency investments.

Broader Implications and Future Outlook

The Jason Derulo meme coin controversy underscores the broader implications of celebrity crypto endorsements in the cryptocurrency market. As celebrities leverage their influence to promote financial products, the potential for both positive and negative impacts becomes evident. While endorsements can bring attention and legitimacy to certain projects, they also carry the risk of misleading fans and investors, especially in a highly volatile and unregulated market like cryptocurrency.

Moving forward, there is a growing call for more stringent regulations and guidelines governing celebrity crypto endorsements of financial products. These regulations would aim to protect investors from potential scams and ensure that endorsements are transparent and based on thorough due diligence. In conclusion, the ongoing debate around celebrity crypto endorsements highlights the need for a balanced approach that safeguards investor interests while allowing for the legitimate promotion of innovative financial products.

Featured Image:  Freepik © grvstudio

https://cryptocurrencynews.com/disclaimer

This post was originally published on this site

The insatiable demand for power by artificial intelligence firms is benefiting Bitcoin miners. Hut 8 (NASDAQ:HUT) shares outperformed most peers on Monday after the Miami-based company received a $150 million investment from Coatue Management to develop AI infrastructure.

This investment will be provided through convertible notes with an 8% annual interest rate and a conversion rate of $16.395 per share, as stated by the company. Following the announcement, Hut 8 shares rose nearly 4% during Monday morning trading, even as most of its peers followed Bitcoin (BTC) lower.

The investment also positively impacted other Bitcoin mining-related data centers involved in AI and high-performance computing. Soluna Holdings (NASDAQ:SLNH) surged almost 17%, and Applied Digital (NASDAQ:APLD) gained about 10%.

AI and HPC firms are increasingly turning to the Bitcoin mining industry to fulfill their computing power needs. These miners often already possess the required computing capacity and established deals with power suppliers. JPMorgan highlighted that the demand for power by large-scale data centers and AI firms might spark a new era of mergers and acquisitions for Bitcoin miners with favorable power contracts.

Recently, cloud computing provider CoreWeave signed a 200-megawatt deal with miner Core Scientific (NASDAQ:CORZ) for AI-related services and offered to purchase the entire company for over $1 billion. Core Scientific rejected the offer, citing that it undervalued the company.

Coatue Management, an investor in CoreWeave, underscores the high level of interest in utilizing Bitcoin miners’ existing infrastructure for AI services.

Hut 8 emphasized this need for power in their press release, stating, “Many traditional data center operators are failing to meet the surging demand for AI compute capacity due to power shortages, long lead times to bring new capacity online, and the extensive upgrades required for existing data centers to support the latest generation of high-density compute.” Hut 8 aims to help bridge this gap.

Featured Image: Freepik

Please See Disclaimer

This post was originally published on this site

Japanese Institutional Crypto Investment Trends

Japan’s largest investment bank, Nomura Holdings (TYO:8604), and its crypto subsidiary, Laser Digital, released findings from a recent survey on Monday. The survey targeted over 500 investment managers in Japan, revealing that 54% plan to allocate funds to crypto assets within the next three years.

Motivations and Barriers for Japanese Institutional Crypto Investment

More than half of the respondents indicated a future interest in digital assets, motivated by recent developments such as the launch of crypto products like exchange-traded funds (ETFs), investment trusts, staking, and lending. These factors, along with the increasing mainstream adoption of cryptocurrencies, are seen as significant drivers in the growth and development of cryptocurrencies. 

However, some institutions currently hesitant to invest in crypto assets cited counterparty risks, high volatility, regulatory requirements, and concerns about security as significant barriers to entry.

Positive Sentiment Towards Japanese Institutional Crypto Investment

Additionally, 25% of survey respondents have a positive impression of the asset class, and 62% view cryptos as an opportunity for investment diversification. The survey indicated that when investing in crypto assets, the preferred allocation is 2-5% of assets under management (AUM).

Interest in Web3 and Venture Capital Investments

Respondents also expressed interest in investing in Web3 projects, either directly or through venture capital (VC) funds. This interest reflects a broader trend towards integrating advanced blockchain technologies and decentralized applications into traditional investment strategies.

Japan’s Crypto Policy Developments

Japan is rapidly developing an economic reform bill with notable implications for Japanese institutional crypto investment. Early this year, the government published a legislative proposal allowing venture capital firms and other investment funds to hold digital assets directly. This inclusion of digital assets in the legal framework not only legitimizes their use in institutional investments but also positions Japan as a crypto-friendly jurisdiction globally.

Independent finance news outlet FinanceFeeds released a report in February, highlighting that Japan is a global leader in compliant crypto payments. In March, Japan’s $1.5 trillion pension fund was actively exploring the potential addition of Bitcoin to its investment portfolio.

Stablecoin Regulation in Japan

Japan has also heavily regulated stablecoins, noting that only banks, money transmission services, and trust firms can issue stablecoins. Additionally, all reserves underpinning the value of these tokens must be held in Japanese trusts and invested only in domestic bank accounts, ensuring the highest levels of security and compliance.

This stringent regulation aims to protect investors and maintain the stability of the financial system. Furthermore, these measures help to prevent fraudulent activities and enhance the overall trustworthiness of the cryptocurrency market in Japan, making it a safer environment for both institutional and individual investors.

Conclusion

The findings from Nomura Holdings’ survey indicate a growing interest and potential for significant Japanese institutional crypto investment. With progressive regulatory frameworks and an increasing number of investment managers showing interest in digital assets, Japan is poised to become a key player in the global crypto market. 

As traditional financial institutions recognize the benefits of digital assets, the integration of these assets into investment portfolios is expected to accelerate. This shift not only enhances portfolio diversification but also opens up new avenues for growth and innovation in the financial sector. Japan’s proactive stance on crypto regulation plays a crucial role in fostering a secure and stable environment for digital asset investments. 

By implementing stringent regulations on stablecoins and ensuring that reserves are held in domestic banks, Japan is setting a high standard for other nations to follow. This approach not only protects investors but also enhances the credibility and legitimacy of the crypto market. In summary, the increasing Japanese institutional crypto investment underscores Japan’s potential as a leading player in the global crypto industry. 

As more institutions allocate funds to crypto assets, the Japanese market is likely to see substantial growth, innovation, and diversification in the coming years. This trend not only benefits the institutions themselves but also contributes to the overall advancement and maturity of the global crypto market.

Featured Image:  Freepik © ojosujono96

https://cryptocurrencynews.com/disclaimer