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All the Web3 news you missed this week (October 28, 2022)
Here’s the Web3 news from the past week
An October 24 update to Apple’s App Store Review Guidelines allows apps to sell NFTs through in-app purchases but specifies that those NFTs can’t unlock any features or functionality within the app. On top of that, apps can allow users to browse other NFT collections, but they can’t provide any “buttons, external links, or other calls to action that direct customers to purchasing mechanisms other than in-app purchase.”
In July, Reddit launched an NFT marketplace where users can purchase avatars designed by independent artists. The project seems to be going well: On Monday, trading volume of Reddit NFTs “eclipsed $1.5 million in the past 24 hours,” boosting total trading volume to $4.1 million since launch.
The CFTC’s lawsuit against Ooki DAO has big implications for DAOs at large, thanks to the CFTC’s argument that all voting members of the organization can be held liable. “The move sent a seismic wave through the crypto world, with many worried the new theory of liability would throw into question the entire purpose of DAOs, which is to have decentralized decision-making,” reports Leo Schwartz.
Last Friday, OlympusDAO community members were told that the organization had lost about $300,000 in a cyberattack — only to be informed, a few hours later, that the attacker had returned all of the tokens. “The attacker either had a change of heart or was a white hat hacker all along,” surmises Jason Nelson.
Many DotCom startups bit the dust because they were “a form of speculation with no actual business model behind them,” writes Tim Bajarin, noting that those companies based their plans “more on guesstimates than hard facts.” The metaverse is different from the internet of the 1990s in certain ways — its user base is much smaller and it presents thorny questions about which platform to bet on — but a similar fate could befall early metaverse players. “If a developer is serious about creating apps for the Metaverse to get first mover advantage or to create a Metaverse version of their existing application, they would be wise to study closely the downfall of the DotCom developers that failed even if they had a great idea of web app,” writes Bajarin.
Tim Cook took a tempered approach to the metaverse in a recent interview with a Dutch publication, saying, “I always think it’s important that people understand what something is… and I’m really not sure the average person can tell you what the metaverse is.” Cook did, however, speak with enthusiasm about AR, calling it a “profound technology that will affect everything.”
Regulators aren’t the enemy of DeFi, writes Lawrence Wintermeyer: Hackers are. More than $3 billion has been stolen in hacks this year, and October has proven to be the biggest month ever for crypto exploits. “The industry is on notice that it needs to move to a war footing to better protect its customers, staff, and shareholders from the damage that hackers achieve, both financially and reputationally,” writes Wintermeyer.
A poll of 1200 likely voters found that 52% of respondents said they wanted more crypto regulation, while 7% said they wanted to see less of it. The question of which party should lead that regulation is more up in the air: 41% said they’d trust Democrats to handle the issue, and 42% said Republicans are better equipped.
“The question of which cryptocurrencies are commodities, and subject to CFTC oversight, as opposed to securities, and subject to SEC oversight, has created a perception of division between the two key agencies,” reports Leo Schwartz. At a recent event, CFTC chair Rostin Behnam refuted the idea that his agency and the SEC can’t cooperate. “It’s a pretty cynical view to suggest two agencies can’t figure it out and work together,” Behnam said, arguing that collaboration is key to solving the gray areas of crypto regulation.
Crypto blocklists and on-chain lists of sanctioned addresses — which FTX’s Sam Bankman-Fried wrote about favorably in an October 19 article — go against the idea of censorship resistance, argues George Kaloudis. “Removing censorship resistance defeats the entire purpose and value proposition of cryptocurrency,” writes Kaloudis. “There’s nothing valuable in remaking the same financial system – which caused these problems in the first place – with a new, fancy crypto wrapper that openly welcomes censorship just because it is new and fancy.”
In case you missed it - this was the most opened article from last week’s news roundup
This week, A leaked draft of the Digital Commodities Consumer Protection Act (DCCPA) has earned both approval and concern from members of the crypto community. While FTX CEO Sam Bankman-Fried has commented that the bill appears to protect consumers without hurting DeFi, Alliance DAO has said that it threatens DeFi innovation and sacrifices decentralization. As regulatory pressure heats up, its unclear if there is an obviously unified position for the crypto industry.
Hi, I’m Andrew Chang - I created the Web3 Roundup to share what I’m learning in this space. I’ve spent my career at the forefront of the technology industry in areas such as crypto/blockchain (Former COO @ Paxos, co-founding partner of Liberty City Ventures), video and adtech. I learn by meeting with founders, investors and other thought leaders and approach Web3 with the same enthusiasm – and skepticism – I had about crypto/blockchain technologies 10 years ago.