Read in the Digest
- Jack Dorsey slams Web 3.0 for being a venture capitalists’ plaything.
- Kraken acquires Staked in record deal, Binance signs agreement with Dubai World Trade Centre.
- Bitcoin reclaims $49K amidst recovery, Turkish LIRA rallies after new plans.
- Altseason: Terra (LUNA) and Polygon (MATIC) set new all-time highs.
- Gamestop’s marketplace, Ubisoft integrates NFTs, metaverse adoption grows in China.
Jack Dorsey Slams Web 3.0 for Being a Venture Capitalists’ Plaything
Web 3.0, or the ‘decentralized web,’ has been hailed as the future of the internet. The hype around Web 3.0 revolves around the concept of connecting data in a decentralized way, thus providing a more personalized browsing experience without third parties.
Jack Dorsey, the co-founder and former CEO of Twitter and Square (now Block), does not think Web 3.0 is a great concept. In a series of tweets made on Tuesday, December 21st, Dorsey voiced his criticism over the direction of Web 3.0’s developments, saying that venture capitalists own it, not users. Dorsey tweeted;
You don’t own “web3.”— jack⚡️ (@jack) December 21, 2021
The VCs and their LPs do. It will never escape their incentives. It’s ultimately a centralized entity with a different label.
Know what you’re getting into…
He further explained that the top priority of VCs is for businesses to comply with relevant regulations, and not decentralization, for growth.
By owning a substantial stake in Web 3.0 firms, Dorsey believes VCs can pressure the sector to comply with centralized regulations. Elon Musk joined in the criticism, asking in his own tweet, “Has anyone seen web3? I can’t find it.”
- After criticizing Web 3.0 and Ethereum, Jack Dorsey went on to say that Bitcoin will replace the dollar.
Why You Should Care
Dorsey’s statement aligns with the increasing interest from VCs in the cryptoverse. In 2021, fintech received $88.3 billion in aggregate from VCs.
Kraken Acquires Staked in Record Deal, Binance Signs Agreement with Dubai World Trade Centre
Crypto exchange – Kraken – has acquired non-custodial staking platform Staked in what is being described as “one of the largest crypto industry acquisitions to date.” The sum of the takeover remains undisclosed. Staked will provide an alternative to Kraken’s pre-existing custodial staking service.
Staked’s non-custodial staking service allows users to earn staking yield without giving up custody of their assets. The acquisition is Kraken’s fifth of 2021, a year that has seen its staking business grow by around 950% up to nearly $16 billion.
A week after we reported that Binance was in talks to move its headquarters to Dubai, the world’s largest exchange has signed an agreement with the Dubai World Trade Centre to establish a hub for global virtual assets.
The MoU aims to accelerate the adoption of crypto and generate long-term economic growth through digital innovation in the UAE. The agreement will also see Binance help exchanges and blockchain-based firms become licensed in Dubai.
- The Bank of England (BoE) is looking to partner with its international counterparts to enforce tighter global regulations for cryptocurrencies.
Why You Should Care
Kraken and Binance, like most crypto firms, are expanding their services to make crypto services available to a wider audience.
Bitcoin Reclaims $49K Amidst Recovery, Turkish Lira Rallies After New Plans
After enduring a five-week sell-off, the world’s largest crypto, Bitcoin, has experienced its biggest price jump of the period. Having formed a base above the $46,500 level, Bitcoin has rallied, reclaiming $49,000.
The 48 hour price chart for Bitcoin (BTC). Source: Tradingview
The market recovery saw Bitcoin set a new weekly high of $49,876. As of this writing, Bitcoin has consolidated at around $48,900, holding firm above the 76.4% Fib retracement level. With Bitcoin forming a support near $48,750, BTC could retest the $50k resistance level.
Another asset pulling a recovery is the Turkish Lira. Prior to its recovery, the Lira had fallen to record lows as the rise in the country’s cost of living hit 21.7%. However, between December 20th and 21st, the Lira amassed gains of 40%.
As the currency recovered, the number of trades in Turkey’s crypto market surged back to above one million per day. The Lira’s recovery comes after President Recep Tayyip Erdogan unveiled a new lira saving scheme aimed at strengthening the currency.
- The volatility of the Lira has raised concerns, with many Turks preferring to save in foreign currencies and gold.
Altseason: Terra (LUNA) and Polygon (MATIC) Set New All-Time Highs
While Bitcoin is showing strong signs of recovery, Altcoins have been the star performers of the period, with the market’s recovery setting the stage for new all-time highs for Terra (LUNA) and Polygon (MATIC), two of the best performing cryptos of the entire year.
A day after Terra emerged as the second-largest DeFi platform, surpassing the Binance Smart Chain, its native token, LUNA, set a new all-time high of $95.08. LUNA has gained 16% in value over the last 24 hours and 61% in the last seven days – making it the best performing crypto in the top-100.
The seven day price chart for Terra (LUNA). Source: Tradingview
Polygon (MATIC) rallied to a new all-time high after creating a $200 million fund with Reddit’s co-founder. Gaining 25% over the last week, MATIC has set an all-time high at $2.54. Polygon is now the 14th largest crypto, with a market cap of $17.9 billion as of this writing.
The seven day price chart for Polygon (MATIC). Source: Tradingview
- Former U.S. President Donald Trump has warned of a massive ‘explosion,’ stating that crypto is ‘very dangerous.’
Why You Should Care
Terra and Polygon have marked their place in the cryptoverse as being some of the most valuable projects in the industry.
Gamestop Marketplace, Ubisoft Integrates NFTs, Metaverse Adoption Grows in China
2021 has been a great year for the crypto industry, especially for the non-fungible token sector which has become popular in various entertainment industries. The gaming sector has been one in which NFTs have particularly thrived.
GameStop, the gaming retail giant that became popular for defying Wall Street, has indicated an interest in launching an NFT marketplace. The GameStop NFT marketplace would allow users to browse and buy gaming NFTs which could then be traded on other marketplaces.
Game development studio Ubisoft has become the first major video game outlet to launch in-game NFT capabilities. Despite the backlash the giant received from fans, Ubisoft has announced a partnership with Aleph.im, moving forward with the decision to make NFTs available in its upcoming AAA game, ‘Tom Clancy’s Ghost Recon: Breakpoint.’
Despite the anti-crypto stance of the government, Chinese tech firms are increasingly showing interest in the metaverse. Recent reports show that more than 1,300 Chinese companies have registered trademarks related to the metaverse.
- While there has been a surge in interest in the metaverse, the notion that the Chinese government would approve these applications is implausible at best, considering their stance up to this point.