Research Summary
The report provides insights into various developments in the world of web3, NFTs, and emerging tech. Key topics include DeGods’ downgrade and community response, Coinbase’s Base launch and its impact on the crypto industry, WAGMI United’s controversy, Zynga’s new web3 game development studio, and PayPal’s Cryptocurrencies Hub. The report covers a wide range of subjects, reflecting the dynamic and multifaceted nature of the current technological landscape.
Key Takeaways
DeGods Got a Downgrade
- Change in Strategy: The DeGods team pivoted to downgraded art and introduced Points Parlor, a stake-to-earn rewards program with prizes ranging from $DUST to Tesla. The community response was lukewarm, and the market reacted negatively.
- Legal Concerns: DeGods are in a legal grey zone, raising questions about whether this framework checks all the boxes for an illegal lottery.
- Market Impact: Both y00ts and DeGods crashed hard in the aftermath of these changes, reflecting the importance of under-promising and over-delivering.
Base Goes Big
- Successful Launch: Coinbase launched the public mainnet for its Ethereum L2, Base, with impressive stats since launch, including $180M Bridged and 1.6M Total Active Users.
- Accessibility and Growth: Base aims to bring the next billion users onchain, with specific value propositions that make them uniquely suited to succeed, including Culture and community engagement.
- Impact on Crypto Industry: By making the Ethereum ecosystem more accessible, Base is accelerating the overall growth of the crypto industry for everyone involved.
WAGMI United Controversy
- Team Dispute: WAGMI United parted ways with a mod, leading to speculation about the team’s intentions and difficulties in managing the expectations of NFT holders versus soccer team’s fans.
- Investor Perspective: Minority investor GFunk shared his perspective, aligning with WAGMI’s official statement on the challenges faced.
- Community Impact: The incident highlights the complexities of managing diverse stakeholder expectations in the NFT space.
Zynga’s Web3 Game Development
- New Studio: Zynga is launching ZW3, a studio focused on web3 game development, with the first game called Sugartown.
- Potential Impact: If successful, Zynga’s new web3 games could become as addictive as their previous hits, potentially driving significant engagement in the crypto gaming space.
- Industry Trend: Zynga’s move reflects a broader trend of traditional gaming companies exploring opportunities in web3 and blockchain technology.
PayPal Enables Cryptocurrencies Hub
- Hub Launch: PayPal has enabled a Cryptocurrencies Hub for select users to hold and interact with digital assets in their accounts.
- Significance: This move by PayPal represents a significant step towards mainstream adoption of cryptocurrencies and digital assets.
- Future Potential: PayPal’s entry into the crypto space may pave the way for other financial institutions to follow suit, further integrating crypto into traditional financial systems.
Actionable Insights
- Monitor Community Response: Brands and projects must carefully manage community expectations and avoid overhyping, as seen with DeGods’ downgrade.
- Embrace Collaboration: The success of Base shows the importance of collaboration and community engagement in driving growth and accessibility in the crypto industry.
- Understand Stakeholder Dynamics: The WAGMI United incident highlights the need to manage differing expectations among various stakeholders in NFT projects.
- Explore New Opportunities: Zynga’s move into web3 game development signals opportunities for traditional companies to explore and innovate within the blockchain space.
- Prepare for Mainstream Adoption: PayPal’s Cryptocurrencies Hub indicates a trend towards mainstream adoption of crypto, suggesting businesses should prepare for increased integration with traditional financial systems.
