🙅 no one is safe
Terra crash could accelerate crypto regulation, Coinbase launches first-ever think tank, a16z debuts crypto gaming fund and more.
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Crypto Market Update 📈
The global cryptocurrency market cap stood at the $1.24 trillion mark, falling 3.80% over the last 24 hours. The total crypto market volume rose 6.71% to $84.63 billion during the same period.
Bitcoin (BTC): $29,135.78 (-2.43%)
Ethereum (ETH): $1,933.50 (-4.73%)
Tether (USDT) : $0.99 (-0.01%)
Binance Coin (BNB): $297.58 (-1.31%)
Top Stories 📰
1. Regulators stay demanding crypto regulation
The collapse of Terra has not only sent shockwaves across the crypto markets but also gave regulators, lawmakers, and critics another chance to voice their "I-told-you-so" opinions.
In his testimony to the US House Appropriations Committee, SEC Chair Gary Gensler warned Congress about the increasing volatility in the crypto markets, and how detrimental it is to investors and consumers.
“This is a field that is now worth $1.2 trillion. Two weeks ago it was supposedly worth $2 trillion,” he said, citing the sharp downturn in the value of crypto markets after the TerraUSD (UST) meltdown.
He also said that "the public is not protected" and urged Congress for additional resources to monitor the crypto industry. In addition, Gensler supported US President Joe Biden's request to raise SEC's operations budget by 8% to $2.149 billion, which would allow the regulatory body to increase its enforcement division by 50 people.
Last week, Treasury Secretary Jane Yellen Yellen also addressed the House Financial Services Committee regarding Terra's collapse, saying that while it didn't pose an immediate danger to the broader financial system, there's still a need for a “comprehensive framework" to guard investors against stablecoins.
But crypto firms like Circle and Binance.US consider these demands to be positive for the industry as they would encourage investors to use regulated, dollar-based stablecoins instead of offshore alternatives. It would lead to broad-based mainstream adoption of crypto infrastructure in commerce and financial applications worldwide, said Circle CEO Jeremy Allaire.
Why it matters? While the use of stablecoins rises rapidly, it still presents bank runs and payment system risks. And apparently, global regulators are taking the issue seriously. According to French central bank head Francois Villeroy de Galhau, Terra's fiasco and the recent crypto crash could be one of the main talking points during this week’s Group of Seven (G7) meeting.
2. Coinbase launches crypto think tank
While the crypto industry's battle with regulators rages on, it seems that Coinbase has a new solution to address the ongoing anti-crypto discourse.
The world's third-largest crypto exchange has launched its first-ever crypto-focused think tank, dubbed the Coinbase Institute, that will help shape the global policy debate around digital assets.
Here's what they're planning to do:
conduct and publish research on crypto and Web3
have collaborative discussions with policymakers, academics, and the crypto community
partner with academic institutions to promote early-stage research and tech innovation
build an in-house team to promote awareness of crypto and Web3.
In addition, Coinbase has also released its Coinbase Primer series—explaining complex concepts in crypto and Web3—and has established the Coinbase Institute Advisory Board, which will release a monthly insight report on digital asset markets.
It has also formed an academic partnership with the University of Michigan and exited from Blockchain Association, the crypto industry's main lobbying body, to support the Crypto Council for Innovation, a global alliance of crypto industry organizations including Andreessen Horowitz, Block, Fidelity, and Paradigm.
The announcement comes after the company posted a dismal Q1 earnings report last week when it failed to meet analysts' expectations, which led its stock price to dive more than 25%.
More recently, the company launched Web3 application functionality, including a hot wallet and a browser, that will allow users to access Dapps on the Ethereum network such as Uniswap and OpenSea.
Why it matters? For years, Coinbase has tried to shape crypto regulations. In 2021, the company spent $785,000 on lobbying efforts in the US. In October, it also published a digital asset policy proposal that advised Congress to establish a new regulator to oversee the crypto industry.
Deal Street 🤑
a16z debuts $600M crypto gaming fund
VC firm Andreessen Horowitz (a16z) has launched a $600 million gaming fund, extending its bullish stance on Web3 technologies. Called GAMES FUND ONE, the fund will focus on backing the next generation of game developers. “Over the past decade, games have undergone a radical transformation, from simply being packaged entertainment, to becoming online services that more closely resemble social networks and scale like consumer technology companies,” a16z investors said. Roblox founder David Baszucki, Discord founder Jason Citron, Riot Games co-founder Marc Merrill, Blizzard co-founder Mike Morhaime, and others joined the fund. Currently, the gaming industry is worth $336 billion. But a16z believes that game infrastructure and technologies will help unlock even more lucrative opportunities in the metaverse. The fund aims to invest in game studios, game and customer experiences, and infrastructure.
N3TWORK Studios raises $46M Series A
Blockchain gaming startup N3TWORK Studios has raised $46 million in a Series A funding round led by Griffin Gaming Partners. Floodgate, LLL Capital, Galaxy Interactive, N3TWORK, Floodgate, Kleiner Perkins, and others participated in the fundraising. As part of the deal, Griffin Gaming Partners’ Peter Levin will join the Board of Directors. Founded in January 2022, N3TWORK includes over 60 veteran game developers who built several live service titles for companies like Disney, Warner Brothers, EA, Zynga, and Kabam. It now plans to incorporate its free-to-play elements and blockchain technologies such as NFTs into its mobile games. The fresh funding will be used to develop and launch its first two Web3 titles, Legendary: Heroes Unchained and Triumph.
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