📝 Web3 Field Notes #26 - On The Cusp of Mass Adoption

Binance & Coinbase sued by SEC. Apple's VisionPro. Louis Vuitton's new $41k NFTs. How ERC-6551 will change NFTs. Doodles enter retail. Kraken's new NFT exchange. New start-ups, charts & more.

Jun 09, 2023

Hey, it’s Marc. I write about Bitcoin, Web3, and brands. ✌️ Welcome to another issue of my obsessively curated field notes to help you filter out the noise.

⏱️ Reading time: 3 min

“Respond from the center of the hurricane, rather than reacting from the chaos of the storm.” ― George Mumford

📚 Key Reads

Community ownership is a self-fulfilling prophecy. By
Joey DeBruin
Link
NFTs and the future of work. By Dror Poleg. Link
Image as a process. By Dialectic. Link
The Web3 era of loyalty programs. By Overpriced JPEGs Link
The convergence of crypto & AI. By Multicoin Capital. Link
AI Canon. By a16z. Link

🚨 What caught my eyes

✨ Web3 + NFTs

Louis Vuitton is selling $41k NFTs that can’t be resold (aka “souldbound tokens”), promoting customer loyalty. Named "Treasure Trunk," the NFTs will offer access to unique physical and digital experiences. This is the first time a major brand is experimenting with soulbound tokens. Link
Apple is making the “metaverse” chic by announcing its “spatial computing” headset VisionPro. While this isn't directly related to Web3, it will likely have a significant impact on the creation of "metaverse" experiences for the masses. How Apple introduced (and now owns!) the narrative of “spatial computing”, a natural evolution of personal computing, is very smart. Everyone else was still talking about “AR” and “VR”. Link
ERC-6551 went live on the Ethereum mainnet on May 7. This is important, as it’s a new standard making NFTs “mini wallets” (= the NFT itself acts as a wallet with its own wallet address). Currently, a wallet stores NFTs (e.g. Metamask). With ERC-6551, you can store any asset in any NFT you own. And instead of connecting your wallet, you can now connect your NFT. Thus, an NFT will become more valuable depending on its stored assets and past interactions. Brands will be able to target individual NFTs instead of wallets, which is much more granular. Link
Doodles, one of the most popular NFT collections, is launching its “retail and entertainment experience” this summer in partnership with Camp. Collectors of original Doodles will get exclusive benefits, including complimentary admission, merchandise credits, and unique opportunities to create custom pieces. Many of the top collections have recognized the opportunity to use their communities and existing IP to build media franchises and/or venture into physical retail. Ultimately, it will be all about content and storytelling. Link
This week, Kraken opened up its NFT market place to the public. The marketplace support over 250 NFTs across multiple blockchains, including Ethereum, Solana, and Polygon and trading will not cost any gas fees. Link

🌎 Crypto & Macro

The SEC sued Binance and CEO Changpeng Zhao (CZ), accusing the company of mishandling billions in customer funds, lying to regulators and investors, and more. The accusations are substantial. This is huge and a second big regulatory attack on Binance, after the CFTC (the 2nd major US regulatory body) charged CZ with wilful evasion of federal law and operating an illegal digital asset derivatives exchange back in March. Link
Also this week, the SEC sued Coinbase, alleging the exchange operated as an unregistered broker since at least 2019 and broke the rules by offering “staking”. Also big. This comes after the SEC threatened to sue Coinbase with a wells notice letter back in March. It’s important to note that the SEC doesn't make the law. It only makes allegations, and can lose in court. And Coinbase is ready to fight. Link
Despite overall trading volumes declining 27% month-over-month, decentralized exchange volume grew 12%, reaching a record-high share relative to volume on centralized exchanges. Centralized exchanges are losing trust.

🚀Interesting start-ups:

Co:create: Co:Create enables brands to build gamified, self-owned reward experiences that supercharge their community.

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💡Word on the street:

While crypto is fighting its biggest regulatory battle yet, it seems like the whole industry - whether its crypto or Web3 – is waiting for the next mass consumer application.

We’re not there yet, but with advancements in AI, spatial computing, infrastructure scalability, and UX enhancements, and bold brands who’ll make use of this new technology, we’ll get there – it’s only a matter of time.

That’s all for now, folks.
Back to building! 🚀

– Marc