😎 let's lounge in the metaverse

JPMorgan enters the metaverse, Warren Buffett bets on Bitcoin-friendly bank, Axelar Network receives unicorn status and more.

Feb 17, 2022

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First up,

Market Recap 📈

Indian benchmark indices were lower for the second consecutive day, led by losses in financial, metal, and pharma stocks. Meanwhile, US stocks remained mixed as investors weighed geopolitical developments in Ukraine and a flurry of corporate earnings.

Sensex: 57,892.01 (-0.18%) ↓

Nifty 50: 17,304.60 (-0.10%) ↓

Dow Jones: 34,934.27 (-0.16%) ↓

Nasdaq 100: 14,603.64 (-0.12%) ↓

Bitcoin: $43,222.25

Top Stories 📰

1. Suddenly, Warren Buffett likes crypto

Maybe it isn't "rat poison" after all?

Earlier this week, Berkshire Hathaway made its SEC filing public, revealing its increased exposure in Nubank, a Bitcoin-friendly Brazilian fintech bank. Simultaneously, the industrial conglomerate also dumped $1.8 billion of Visa stocks and $1.3 billion in Mastercard.

But wait, what is Nubank? With a customer base of 40 million, it's Latin America's largest neobank. And while the bank doesn't allow crypto trading, its investment unit, NuInvest, lets users invest in crypto ETFs. Last year, Berkshire Hathaway invested a total of $750 million into the company.

It's interesting to see how the so-called 'Oracle of Omaha,' who, along with his longtime partner Charlie Munger, has been consistently opposed to crypto, now has more companies in his portfolio directly/indirectly exposed to Bitcoin and similar digital currencies than ever.

The revelation also comes at a time when Munger, who during Daily Journal's recent annual meeting, said that he wished for crypto to be banned. “I certainly didn’t invest in crypto. I’m proud of the fact I’ve avoided it. It’s like a venereal disease or something. I just regard it as beneath contempt,” he added.

Why it matters? There's a huge market for digital banks in Latin America as the region's population feels underserved by traditional financial and banking systems, who charge exorbitant fees for poorly delivered services. And Nubank along with several others is helping change that.

2. JPMorgan officially joins the metaverse

From CEO Jamie Dimon calling bitcoin a 'fraud' and jokingly threatening to fire employees buying it to becoming the first-ever bank to enter the metaverse, JPMorgan has come a really long way.

The Wall Street giant has now opened a lounge in the metaverse, located at the Metajuku mall in Decentraland. Dubbed the ‘Onyx’ lounge, referring to the bank’s blockchain unit established in 2020, it has everything: a spiral staircase, a roaming tiger, and a digital portrait of CEO Jamie Dimon.

Surprisingly, the bank's metaverse launch coincides with the release of its new report that details how businesses can explore opportunities in the metaverse. And it's very bullish on crypto, saying that "the metaverse will likely infiltrate every sector in some way in the coming years, with the market opportunity estimated at over $1 trillion in yearly revenue."

Shortly after its release, metaverse-linked tokens such as LAND, Axie Infinity, and Enjin Coin were up 8%, 7.8% and 4.1 %, respectively.

Why it matters? Virtual real estate ownership is booming. In 2021 alone, the average price of a parcel of virtual land doubled in six months, from $6,000 to $12,000. And as brands like Nike, Walmart, and Adidas, enter the virtual world, we'll see more Wall Street execs scurrying to find their metaverse strategy.

Deal Street 🤑

Castle Island launches fund to target Web3 startups
Crypto and blockchain VC firm Castel Island Ventures announced that it raised $250 million for a new fund, marking its largest fundraising ever. The fund, called Castle Island Ventures III, will focus on three key areas: monetary networks, financial services, and internet architecture (such as Web3). Investors in the fund include endowments, asset managers, and family offices. The four-year-old company, which holds Bitwise and BlockFi as part of its portfolio, had previously raised $30 million and $50 million funds. "The market opportunity and the wave of entrepreneurs that are actually starting things is just a lot bigger,” co-founder Matt Walsh told Bloomberg, adding that the company will look to lead more Series A rounds.

Axelar Network achieves unicorn status
Blockchain interoperability protocol Axelar Network raised a $35 million Series B funding round at a $1 billion valuation. Some of the investors participating in the round include Dragonfly Capital, North Island Ventures, Rockaway Blockchain Fund, Polychain Capital, and Node Capital. Founded in 2020, Axelar aims to create a decentralized protocol connecting different blockchain ecosystems and offers developer tools and APIs for cross-chain communication. Last year, the company raised a $25 million Series A round led by Polychain Capital. With this fresh funding, the company aims to finance the growth and development of its network as it works towards building an interoperability network for Layer 1 blockchains. (Here's a link to Axelar’s 16-slide pitch deck!)