📝#104: The End of Nike’s NFT Era

Coinbase integrates Apple Pay. Nike shuts down RTFKT. Ripple delays stablecoin launch. Circle earns regulation clarity in Canada. xAI to launch a consumer app. Top fundings & more.

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Dec 06, 2024

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“Crypto just happens to be the best way to create economic freedom globally, injecting sound money, property rights, global trade, and good financial infrastructure into every country.” — Brian Armstrong

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Let’s dive in🦈

📚 Our Top Reads This Week

Why Crypto Matters: Control, Liberation, Expansion. SBR. Link
Crypto Outlook 2025. a16z crypto. Link
Trace-ing the Unknown: Tareq’s Blueprint for Fan Loyalty [Podcast]. Link
The AI Agent Cambrian Explosion pt. 2. TPAN. Link
Apple does AI at its own pace. Michael Parekh. Link
AI Has Officially Hit A Dead End. Will Lockett. Link

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Coinbase X Apple Pay

Coinbase has integrated Apple Pay into its Fiat-to-Crypto services.

Starting Dec. 2, anyone using apps built with Coinbase Onramp can now buy crypto with Apple Pay.

Why it matters: With seamless onboarding and lightweight KYC this integration enables Coinbase to target over 60M+ U.S. Apple Pay users which could drive broader adoption of USDC and other cryptocurrencies.

What you should know: This provides access to over 60 fiat currencies and regulatory compliance for 100+ cryptocurrencies across 20+ blockchains.

Free USDC transactions for both on-ramping and off-ramping.
The integration will be enabled automatically for third-party developers.
Apple Pay already supports other crypto platforms like Binance, BitPay, and MetaMask.

The big picture: Coinbase is the largest cryptocurrency exchange in the U.S. by trading volume, with 43M verified users across 100+ countries.

The End of Nike’s NFT Era

Nike is shutting down the digital fashion and NFT-focused company, RTFKT.

In September, it pivoted .SWOOSH to gaming. Read full story

RTFKT x Nike Adapt Platform "Mag" Cryptokicks iRL | SneakerNews.com

What you should know: Acquired in 2021, RTFKT’s operations will cease in Jan 2025.

Clone X NFT Collection: Created with Takashi Murakami; generated $45.67M in royalties.
- Clone X NFTs, once worth $63K, now trade for under $1K.
MNLTH X Blade Drop: Final product launch as a tribute to its journey.

Why it matters: The closure of RTFKT, one of the leading NFT projects backed by Nike, highlights the challenges of scaling digital collectibles into sustainable businesses.

By the data: In 2024, 98% of RTFKT collections were inactive.

Only 0.2% of NFT projects gained profitability.
Most projects have lost over 50% of their value in days.

Devil’s Advocate: Allegations of insider trading also damaged RTFKT’s reputation, potentially impacting investor and consumer trust.

What’s next: Nike appears to be recalibrating its strategy and focus on gaming and digital wearables through .SWOOSH. Whereas, Chiliz plans to integrate RTFKT assets into its CHZ blockchain ecosystem, aligning with its sports and entertainment focus.

Just Do It: How Nike's Industry-Leading Web3 Strategy Marks a New Era for Consumer Brands

Marc Baumann

May 30, 2023

Read full story

An Update on Stablecoins

1. Circle Internet Group, Inc.

It becomes the first stablecoin issuer to comply with the Ontario Securities Commission (OSC) and Canadian Securities Administrators (CSA) regulations. USDC will remain available on registered crypto asset trading platforms in Canada.

Circle Regulatory Journey:

In Dec, USDC becomes the first stablecoin to meet the Canadian VRCA rules.
In July 2024, Circle became the first stablecoin issuer to comply with the MiCA regulatory framework, issuing both USDC and EURC.
In June 2023, Circle's Singaporean subsidiary received a Major Payment Institution License from the MAS.
It operates as a regulated money services business under the U.S. Bank Secrecy Act and holds money transmitter licenses.

2. Ripple

Ripple delayed the launch of its stablecoin, RLUSD, addressing ongoing speculation. It stated that it is working closely with the New York Department of Financial Services (NYDFS) to secure final approval.

The stablecoin has been in beta testing since August on the XRP Ledger (XRPL) and Ethereum mainnet.

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🚨 Other Highlights You Can’t Miss

Stratos Jet Charters partners with BitPay to accept crypto payments. Link
xAI will launch its first AI consumer app. Link
Louis Vuitton launches a new immersive video game on Discord. Link
Ralph Lauren introduces immersive storytelling experiences. Link

🚨 Top Under-The-Radar Macro Signals:

Bitcoin:
- Sora Ventures launches a $150M fund to advance Bitcoin treasury strategies across Asia.
- MARA Holdings plans a $700M zero-coupon convertible notes offering to acquire Bitcoin and repurchase existing debt.
Regulation:
- Russian new bill exempts crypto transactions from VAT, caps income tax at 15%, and requires mining firms to report client data.
- South Korea delays the 20% crypto tax for the third time, citing the need for further regulatory refinement.
- Brazil proposes a ban on stablecoin withdrawals to self-custody wallets.
Partnerships: Crypto.com partners with Mastercard to launch prepaid cards in Bahrain.