Introduction:

Welcome back to the Gate.io Podcasts. I’m Peter, this is the show to get a neutral perspective on some of the latest headlines in DeFi, Metaverse, NFTs, and Big Tech. Today’s episode is sponsored by Astar Network and brought to you by Gate.io, a centralized exchange with a neutral stance on current events.

Before we get in, the information presented in this podcast is to help you stay up-to-date on the latest happening in the crypto space, and nothing presented hereby is financial advice. The news that I cover in this podcast will have the original source at your discretion. Stick by this podcast as I show you how to stay vigilant and learn to do your own research.

But, before jumping in, make sure to subscribe to this podcast or youtube channel and don’t forget to turn on the notification bell so you’ll not miss any info about the crypto space!

Now, without further ado.

El Salvador Postpones Bitcoin Bond Due

to Unfavorable Crypto Market| 1 | | 2 |

El Salvador Finance Minister Alejandro Zelaya said on Tuesday that the country had postponed its planned $1 billion Bitcoin bond offering because of unfavorable market conditions. Zelaya added that the government decided to wait for favorable conditions in the financial market which may come as late as September.

El Salvador originally planned to issue $1 billion in bonds to investors between March 15 and March 20. The government intends to convert $500 million into Bitcoin and to use the other $500 million for infrastructure and Bitcoin mining. Investors hold on to the bond for at least five years—receiving dividends as El Salvador liquidates the BTC. The plan has also been referred to as "volcano bonds" from the proposed use of the Conchagua volcano as a power source for mining.

Zelaya said current market volatility and the war between Russia and Ukraine had prompted authorities to postpone the launch date. However, in terms of the new date, he said going out to the international market in the fall was difficult.

Now is not the time to issue the bond, according to Zelaya who was still expressing hope for a release during the first half of the year: "In May or June the market variants are a little different. At the latest in September. After September, if you go out to the international market, it is difficult (to raise capital)", he added.

When finally launched, El Salvador's Bitcoin bond will be issued by Blockstream, a Bitcoin infrastructure company aiming to expand Bitcoin adoption using the blockchain developer's Liquid protocol. The Liquid Network is a Bitcoin layer-2 enabling the issuance of security tokens and other digital assets.

Last year, El Salvador became the first country in the world to adopt BTC as legal tender. The move has garnered both praise from Bitcoin adopters and criticism from the International Monetary Fund (IMF), which worries the measure could hurt the country's finances.

Bored Ape and CryptoPunk NFTs Owner Yuga

Labs Raises $450M at $4B Valuation | 1 | 2 |

Yuga Labs, the company behind the popular non-fungible token (NFT) project Bored Ape Yacht Club, announced on Wednesday that it has raised $450 million in its first funding round, bringing the Web3 company to a total valuation of $4 billion.

The funding round, one of the largest for an NFT company to date, was led by the firm Andreessen Horowitz, which has been investing heavily in the Web3 space. It previously funded OpenSea, Dapper Labs, and Coinbase. Also joining the funding round are the game studio Animoca Brands and crypto firms Coinbase and MoonPay, among others. Chris Lyons, a general partner at Andreessen Horowitz, will join the board of Yuga Labs. Funding talks were first reported last month by the Financial Times.

As a leading NFT brand, Yuga Labs—acquired the CryptoPunks and Meebits IP from Larva Labs on March 11 and and on March 16 the Bored Ape Yacht Club-linked ApeCoin (APE) token launched by proxy—is looking to further expand its presence. With its new funding, Yuga plans to hire more employees and develop brand partnerships.

The new funding will also be used to build out an NFT-based, ApeCoin-powered gaming metaverse called “Otherside.” The team describes Otherside as an MMORPG meant to connect the broader NFT universe. They hope to create “an interoperable world” that is “gamified” and “completely decentralized”.

Yuga Labs is partnering with “a few different game studios” to bring Otherside to life, says CEO Nicole Muniz. The game won’t be limited to Bored Ape holders, and the company plans to create development tools that allow NFTs from other projects to work inside their world.

Yuga Labs declined to provide a timeline on the release of Otherside. But last Friday, it teased a video promoting Otherside. From Yuga Labs’ tweet, it’s likely ApeCoin will be Otherside’s official in-game currency and that more will be revealed come April. It is also reported that a play-to-earn game is also planned for later this year.

A16z Alum Katie Haun Raises $1.5B for

2 New Crypto Venture Funds | 1 | 2 |

Katie Haun has raised $1.5 billion for a pair of crypto-focused VC funds, just months after leaving Andreessen Horowitz to form her new firm, Haun Ventures. The funds included $500 million for an early-stage fund and $1 billion for an acceleration fund.

Haun, a former federal prosecutor and sits on the boards of crypto exchange Coinbase and NFT marketplace OpenSea,became Andreessen’s first female general partner in 2018 where she co-led its multiple cryptocurrency funds alongside Chris Dixon. She announced in December she would be leaving a16z to start her own firm focused on crypto and Web 3.

She said that “Web3 is the new era of the internet, and it deserves a new era of investors……We’re energized by the opportunity to invest in every layer of the web3 tech stack, and will back projects in their early stages as well as when they are ready to accelerate growth.”

Haun Ventures’ kickoff marks the largest debut venture fund ever raised by a solo female founding partner, according to Pitchbook. Former investment banker Mary Meeker held the prior record with a $1.3 billion fund after spinning out from Kleiner Perkins.

Haun Ventures will invest in both start-up equity, and in some cases more liquid strategies like digital tokens. According to Haun :“That’s something I’ve learned through being involved in deploying three other crypto funds: there’s still a ton of potential in crypto and Web3 equity business models, but also token business models. I don’t think that you can really be a crypto investor without holding tokens.”

The firm will seek to become a registered investment advisor (RIA), which would remove limits on the percentage of fund capital that can be used for token purchases. The funds also will look at "picks and shovels" companies, including developer tools, end-to-end NFT services and crypto tax software.

Haun Ventures’ nine-person team includes Chris Lehane, a former Airbnb executive and Clinton administration official, Tomicah Tillemann, a former staffer for President Joe Biden, and Rachael Horwitz, who led communications teams at Twitter, Google, Facebook and Coinbase. Haun is the firm's only general partner, but she does plan to hire other investing partners.

SEC Delays Spot Bitcoin ETF Offerings

From WisdomTree and One River | 1 | 2 |

The U.S. Securities and Exchange Commission (SEC) has delayed decisions on applications for spot Bitcoin exchange-traded funds from WisdomTree Investments (WETF) and One River Asset Management, according to separate filings Monday.

“The Commission finds that it is appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and any comments received,” the SEC said in each of the filings.

The suspended WisdomTree Bitcoin Trust and One River Carbon Neutral Bitcoin Trust plan to be listed on the Cboe BZX Exchange and New York Stock Exchange Arca, respectively. The regulator said it would extend its window for the decision on WisdomTree’s Bitcoin investment vehicle to May 15 and One River’s to June 2.

WisdomTree amended its application back in December after the US Securities and Exchange Commission rejected its proposal for an ETF that would invest directly in Bitcoin. As part of the changes, the company said its product would use US Bank as a qualified custodian, hoping such a tweak will win its Bitcoin exchange-traded fund application the SEC’s blessing.

In turn, asset management firm One River filed in April to create a Bitcoin exchange-traded fund that incorporates the purchase of carbon credits. The digital asset hedge fund, backed by billionaire investor Alan Howard, says its ETF will factor in adjustments to reflect the current spot prices of carbon credits needed to offset the “estimated carbon footprint attributable to each Bitcoin.”

Up to now, the SEC has either outright denied or delayed decisions on all spot Bitcoin ETFs. Earlier, the regulator also pushed the deadline to make a decision on Kryptoin Bitcoin ETF, Global X Bitcoin Trust and Valkyrie XBTO Bitcoin Futures Fund. Most recently, it denied an application by First Trust Advisors and SkyBridge, citing concerns over “fraudulent and manipulative acts and practices” in markets where Bitcoin is traded.

U.K. Watchdog Ramps Up ‘Red Alert’ Over

Crypto Advertising, Followed By Ireland | 1 | 2 |

UK regulator sets 'red alert' deadline for crypto ads
The U.K.’s advertising regulator, the Advertising Standards Authority (ASA), sent an enforcement notice to more than 50 companies that have promoted cryptocurrencies ahead of an impending clampdown on “misleading and irresponsible crypto ads” in the country.

The authority said the notice is meant to serve as a warning for businesses to review and clean up their ads over the next two months, after which tougher measures will be introduced to penalize rule breakers.

Guidance in the ASA’s enforcement notice, issued on Tuesday, said all promotions should clearly and prominently state that crypto assets are unregulated in the U.K., that any profits may be subject to Capital Gains Tax and that the value of crypto investments can go down as well was up. This includes ads in press and magazine outlets, TV, emails, outdoor posters, in promoted social media posts and via paid agreements with influencers.

All ads running between now and May 2 will be monitored for compliance, the ASA said, followed by “targeted enforcement action” for problems persisting after that date. This will include reporting repeat offenders to the Financial Conduct Authority, as well as to Trading Standards, which has the ability to prosecute, issue fines and ultimately stop companies from trading.

A spokesperson for the ASA declined to name any of the companies that received the enforcement notice, but pointed to recent rulings it had made against firms running crypto ads in the U.K. Those firms include Coinbase Europe Ltd, Arsenal Football Club and eToro’s U.K. arm as well as Floki Ltd., which ran ads in support of the joke cryptocurrency Floki Inu.

Ireland follows UK‘s example in warning of crypto advertisements
Regulators globally have sought to crack down on crypto ads. The Central Bank of Ireland also issued a warning to consumers on Tuesday about the risks around crypto investments. According to Ireland’s central bank, cryptocurrencies were “highly risky and speculative” for retail investors, it warned people to be mindful of “the risks of misleading advertisements, particularly on social media, where influencers are being paid to advertise crypto assets.”

Governments and watchdogs in Singapore and Spain promised to tighten rules on crypto ads earlier this year, including by restricting such promotions to target only wealthy investors. In January, the Spanish government announced regulations for advertisements on crypto investments and services, which specifically included “products or services promoted via influencers.”

Abu Dhabi Rolls Out Draft

Recommendations For NFT Trading | 1 | 2 |

Abu Dhabi Global Market (ADGM), the emirate’s free zone, published a consultation paper on Monday titled “Proposals for enhancements to capital markets and virtual assets in ADGM.” The document contains draft guidelines that, among other asset classes, cover non fungible token (NFT) trading.

ADGM is one of the United Arab Emirates' three major free economic zones that host virtual asset service providers (VASPs), and the first one to get its regulatory framework back in 2018. In the new paper, it proposes that companies with a license from the free zone’s financial regulator be allowed to facilitate NFT trading.

Along with sections dedicated to traditional financial instruments, the document contains a little more than a page on virtual assets and NFTs. In this section, the free zone’s chief regulator, the Financial Services Regulatory Authority (FSRA), describes NFTs as intellectual property rather than “specified investments or financial instruments.”

It also proposes to allow multilateral trading facilities (MTFs) and Virtual Asset Custodians (VAC) to operate NFT marketplaces while mentioning that transactions in NFTs may trigger the requirement to comply with ADGM’s Anti-Money Laundering (AML) and Sanctions Rules.

However, as the document specifies, FSRA is not proposing a formal regulatory framework for NFTs. The consultation paper is open for comment until May 20, and encourages stakeholders to share their thoughts on several major questions, for example, “What types of NFTs should be permitted to trade upon MTFs?” and “How would it be best to integrate third-party NFT registries?”

The UAE is the Middle East’s digital asset champion
The United Arab Emirates is a federation consisting of seven emirates: Abu Dhabi, Ajman, Dubai, Fujairah, Ras Al Khaimah, Sharjah and Umm Al Quwain. The UAE is reportedly getting ready to start issuing federal licenses for VASPs by the end of the first quarter of 2022.

The move is expected to become part of a complex regulatory framework that the Middle Eastern nation is looking to establish on its way to becoming one of the world’s most crypto-friendly jurisdictions.

In fact, there are already around 30 VASPs, operating in the country’s free zones, which are granted a degree of autonomy when crafting financial rules. Among them, Dubai Multi Commodities Center (DMCC) accommodates 22 VASPs, Dubai Silicon Oasis Authority (DSOA) hosts one, and the previously mentioned ADGM has six.

In November 2021, the United Arab Emirates’ postal operator announced it would be the first in the Middle East to issue nonfungible token (NFT) stamps, celebrating the federation’s 50th anniversary.

Sponsor | Solice

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On March 17th, Solice announced that the Solice metaverse will have 60,000 pieces of Land for sale in total, starting with 1,200 Parcels (2,765 lands) in the first wave which is scheduled for the end of March.

Future landowners can look forward to utilizing their Land for revenue generation. Landowners will also have full creative control over their virtual real estate and can decide if they want to design their own revenue model or create a free and accessible haven for users that simply want to enjoy the game.

It is also possible to earn revenue in the form of Land staking, where users simply stake their SLC tokens on the Lands that they own to earn rewards like rare digital assets that can be used to enhance their gameplay.

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Bored Ape’s New ApeCoin Puts NFTs’

Power Problem on Display| 1 | 2 | 3 |

The great success of Bored Ape
Bored Ape Yacht Club, or BAYC, is a top-selling series of NFTs owned by Yuga Labs. It stands for a wildly popular collection of nonfungible tokens, or NFTs, a status symbol coveted by celebrities, athletes and venture capitalists alike.

A combination of NFT technology, eye-catching art, and some hype have propelled prices of Bored Apes into the six figures. In 2021, countless celebrities bought an NFT from the Bored Ape Yacht Club, including late-night talk show host Jimmy Fallon, tennis star Serena Williams, and pop star Justin Bieber.

Data from NFT price tracker DappRadar shows that the lowest price for a Bored Ape was about $262,630. Some Bored Apes have even sold for millions of dollars. In January, Bored Ape #232 sold for 1,080.69 ETH, or about $2.85 million at the time. According to blockchain data tracker CryptoSlam, Bored Apes are already the third-most valuable collection of NFTs, with $1.5 billion in all-time sales.

Last Thursday, Bored Ape unlocked early access to a new digital currency — ApeCoin by airdropping 1 billion tokens. The ApeCoin token surged as much as 90% in just its second day of trading, and CoinMarketCap said APE had a $3.7 billion market cap as of early Friday afternoon. As of March 23rd, ApeCoin is the 42th largest cryptocurrency with a market cap of $3.3 billion.

Who are the biggest recipients of ApeCoin
To give the Bored Ape community a hand in shaping the decentralized, blockchain-powered vision of the internet, the ApeCoin grants holders influence over another crypto-native entity known as a decentralized autonomous organization, or DAO.

However, the more tokens a participant has in a DAO, the more say they have over the group’s governance. And in this case, the influence and power of venture capitalists in this evolving field is quite prominent.

Here's how 1 billion ApeCoins were allocated: 1% were allocated to Jane Goodall Legacy Foundation, 8% were allocated to Yuga Labs Founders, 14% to Launch Partners (including Andreessen Horowitz and Animoca Brands), Bored Ape/Mutant Ape Owners, as well as Yuga Labs, owned 15%, leaving less than half to the ApeCoin DAO at 47%.

Explore the recipients: Andreessen Horowitz
A spokesperson for Yuga Lab confirmed to Bloomberg, they and other launch partners received a collective 14%, or 140 million tokens. These token holdings could grant Andreessen Horowitz and Animoca substantial influence over ApeCoin DAO, despite the fact that the group is supposed to be decentralized, with no specific entity in control.

Even if Andreessen Horowitz and Animoca choose to sell their tokens and lessen their influence in ApeCoin DAO, they could also stand to make a tidy profit on something they received for free. ApeCoin’s price has fluctuated widely since launch and is approaching $12 as of Wednesday morning on Gate.io. At this price, the amount of ApeCoin allocated to launch partners is equivalent to $1.5 billion.

Latest news has reported that Yuga Labs has raised $450 million in funding at a $4 billion valuation on Wednesday. The funding round, one of the largest for an NFT company to date, was still led by the firm Andreessen Horowitz.

The ApeCoin launch is just a small illustration of how VCs are some of the biggest winners from crypto’s rise, after having collectively poured $32.5 billion into the industry in 2021, according to Pitchbook.

Explore the recipients: Yuga Labs
The ApeCoin launch has other signs of a concentration of power. The four founders of Yuga Labs received a collective 8% of the ApeCoins released. As a company, Yuga Labs received 15% of the airdrop, equivalent to the total percentage given to owners of Bored Ape NFTs or Mutant Apes.

The allocation also shows the growing influence Yuga Labs has over the NFT space. The company purchased the intellectual property of the CryptoPunks and Meebits collections from Larva Labs earlier this month. The acquisition put three of the most lucrative NFT collections under one roof — and gave Yuga Labs a bigger roster of IP to pull from when crafting its game and metaverse plans.

However, it was revealed that during the days leading up to the March 11 acquisition, more than a dozen addresses on the Ethereum blockchain purchased a large amount of the non fungible tokens. The price floor, or the lowest price a seller is willing to accept, went as high as 6.134 Ether, or about $15,800, on March 12, according to NFT Price Floor. That’s nearly double the two days earlier.

Yuga Labs has been financially successful to date. A leaked pitch deck indicates that the company made $137 million last year, primarily by taking a cut of the transactions tied to its NFT brands, with an astounding 95% profit margin.

Conclusion:

Even the ApeCoin DAO itself, the governing body that theoretically has the most say over ApeCoin, is in question. ApeCoin DAO has a star-studded special council which includes big names in crypto such as Reddit co-founder Alexis Ohanian and founder of venture firm Seven Seven Six, as well as Amy Wu, head of the venture arm belonging to crypto exchange FTX. This special council will enact the DAO’s decisions, which doesn’t necessarily mesh well with crypto’s decentralized nature again.