I'm just kidding, there's no token sale - this is seriously just a newsletter with a lame April Fool’s Day joke. But when you saw the title, did you think it was a joke? My guess is that half of you believed it, half knew it was a joke - maybe that says something about the stage we're at with Web3?

Next week, I'm going to be at Bitcoin 2022 in Miami on Thurs/Fri. I'm meeting with Web3 startups and investors, if you're interested in connecting or think I should be meeting with someone - shoot me a message or note with the link below

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Here’s the Web3 news from the past week

General

How a Wikipedia editor became one of the loudest Web3 skeptics (Fast Company)

A website called Web3 Is Going Great has emerged as a critical voice in the Web3 space, documenting its “day-to-day mishaps and ripoffs.” Creator Molly White, a software engineer by day, founded it in response to the push for everyday people to invest in crypto, despite regular news about scams and hacks in the space. “I realized it could be really informative and meaningful to gather all of these disasters in one place, to both show how unfit this technology is for practically all use cases, and to show just how much people are getting scammed when they try to dip their toes in,” White told Fast Company.

NFTs

A new report from the blockchain analytics firm Nansen has crypto observers drawing conflicting conclusions about the health of the NFT market. Different news outlets had different insights and interpretations of the report. The Defiant reports that the proportion of minted and profitable NFT projects recently hit an all-time high. “Dead” projects represented nearly half the market in January 2021 and have dropped to just a fifth of the market today, a possible sign that the space is maturing and that “cash grabs” are floundering.

According to Bloomberg, though, on average a third of NFT collections are showing “little or no” trading activity, while another third are “trading below the amount it cost issuers to mint the tokens.” To experienced members of the crypto space, Bloomberg reports, this dynamic bears an eerie resemblance to the “Initial Coin Offering bust of 2018, when thousands of digital tokens quickly became worthless after regulators warned they’re probably unregistered securities.”

GameStop’s Crypto Dreams Are a Long Shot. What Are NFTs Even Worth? (Barrons)

GameStop is gearing up to launch a NFT marketplace this summer. The company, which logged a $148 million net loss last quarter, is aiming to transform into “more of an online marketplace for videogames and related products” and has partnered with the blockchain startup Immutable X to distribute grants to NFT developers.

Two men arrested for $1.1 million NFT ‘rug pull’ scam (The Verge)

The creators of a much-hyped NFT project have been charged with fraud and money laundering after selling $1.1 million in “Frosties” NFTs, then promptly shutting down the project, leaving buyers high and dry.

The Man Behind Ethereum Is Worried About Crypto's Future (Time)

Despite the soaring value of the platform he co-founded, Ethereum’s Vitalik Buterin has deep concerns about the crypto space, from investor risk to displays of wealth. “Crypto itself has a lot of dystopian potential if implemented wrong,” Buterin told Time.

DAOs

No Bosses: What It’s Like Working at a DAO (Time)

Members of dOrg, a software development group that was one of the first DAOs recognized as an LLC, detailed what daily life at a DAO looks like, from fluid leadership roles and individual budget management to conflict mediation and pay transparency.

Metaverse

Shopping in the Metaverse Could Be More Fun Than You Think (CNet)

Replicating real-world stores isn’t going to cut it in the metaverse. Brands are starting to create immersive shopping experiences on platforms like Roblox: The activewear brand Alo Yoga, for instance, rewards users with virtual clothing when they meditate for a certain period of time.

The Meaning of Life in the Metaverse (with David Chalmers) (Harvard Business Review)

NYU philosophy professor David Chalmers appeared on the podcast “Azeem Azhar's Exponential View” to talk about life in the metaverse, from possible consequences of wrongdoing to the development of society.

Metaverse Fashion Week Draws Big Brands, Startups (WSJ)

Coming on the heels of Paris Fashion Week is… Metaverse Fashion Week, a new event that ran for several days last week on the Decentraland platform. Major brands including Forever 21, DKNY and Estée Lauder got onboard to distribute avatar fashion items and create virtual stores.

The Metaverse Will Be a Multi-Platform Mess (CNet)

Despite hopes that the metaverse will be a seamless space where people can move their assets freely between platforms, some critics are expecting clunky barriers between tech players’ services. “If current tech industry trends are any indication, the future will instead be a multitude of fragmented digital domains, each its own separate shard of the metaverse experience,” reports Stephen Shankland.

DeFi

Despite declines, the value of crypto assets in DeFi protocols is up 3x from a year ago (TechCrunch)

The total value locked in crypto has declined by 16% since its peak in December, but players in the space are confident in its overall upward trajectory. According to data from DeFi Llama: “Of the top 100 chains, only 18 have lost value over the past seven days.”

IOSCO says DeFi is quickly evolving and 'cloning financial markets' (CoinTelegraph)

The International Organization of Securities (IOSCO) published a report outlining aspects of the growing DeFi industry that it sees as “key areas of concern.” The organization advised regulators that DeFi often mimics and overlaps with traditional finance, encouraging them to get very familiar with the space now.

With Russia War On The Brain, Could Congress Levy A Kill Shot To DeFi? (Forbes)

A group of lawmakers including Senator Elizabeth Warren have introduced a bill called the  “Digital Asset Sanctions Compliance Enhancement Act of 2022,” an apparent effort to prevent individuals and corporations from evading Russian sanctions by using crypto. Will it go anywhere? Kenneth Rapoza, a Forbes contributor, thinks not.

In case you missed it - this was the most opened article from last week’s news roundup

The Y Combinator of Web3 Attracts Record Number of DAO Startups (Blockworks)

The Web3 accelerator Alliance reported a record number of DAOs slated to pitch investors at its demo day, representing 10.3% of all presenters.

NYC Web3 Meetups

I’ve been hosting a regular series of Web3 in person get togethers in NYC. They range from small table breakfasts to larger happy hours. If you’re interested in attending or sponsoring one of these events sign up here:

Sign up for NYC Web3 get togethers

About Me

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. 

You can connect with me on LinkedIn or Twitter (@DigitalDrex)