Category: News

While many of us simply know Telegram as a messaging platform, it has a long and extensive history with blockchain technology. It launched the Telegram Open Network (TON) a few years ago and its native token even got the company in some trouble with the SEC over allegations of it being an unregistered token. Due to the issue, Telegram eventually handed over ownership of TON to the Open Network. 

But it seems Telegram isn’t quite done with blockchain just yet as its CEO said in a channel post on August 22, 2022, that the company is considering getting into NFTs. More specifically, the company is considering auctioning off their usernames as NFTs. 

Telegram Debuts NFTs?

In his post, Telegram CEO Pavel Durov brought up Telegram possibly selling channel links and usernames as NFTs. This idea, he says was inspired by the Open Network’s recently-concluded sale where over 2,000 .ton domain names were sold, with sales totalling around $3 million. 

His idea for Telegram is that users should be able to transfer specific usernames and channels to others with ownership protected by “NFT-like smart contracts”. Specific Telegram usernames and channels can have a lot of followers and influence and should a Telegram user want to transfer ownership, it could be worth quite a lot, which is a sentiment Durov shared.

“If TON has been able to achieve these results, imagine how successful Telegram with its 700 million users could be if we put reserved @ usernames, group and channel links for auction. In addition to millions of catchy t.me addresses like @storm or @royal, all four-letter usernames could be made available for sale (@bank, @club, @game, @gift, etc.),” he said. 

He also said that over time, more elements that are common in Telegram like stickers could be added to the proposed marketplace. Needless to say, Durov has ambitious plans for blockchain use within the app. 

Even though Telegram no longer ‘owns’ the TON, it still has some connection to it, with users even being able to exchange the TonCoin token on Telegram. Now, Durov believes that the former Telegram asset could be the key to bringing web3 capabilities to Telegram. 

Seeing as Telegram was the initial designer, he has said that smart contract code would be written on TON and it could serve as the technological foundation for the creation of this new marketplace.

The Implications of This 

If Telegram can achieve this vision and launch this marketplace, what would it mean for users? First, it would provide a formal transfer process for usernames. It is not uncommon for users of social media and messaging platforms to sell channels and usernames but Telegram providing a secure and legitimate way to do so will save a lot of stress. 

This is especially true when it comes to coveted usernames like @gift that many people could certainly pay a lot for. If it is successful, it could also potentially set the standard for other messaging apps looking to embrace web3.

A few months ago, the story broke about an ex-OpenSea employee who had been charged with insider trading. The employee, Nathaniel Chastain, became the first person to be charged with insider trading with regard to NFTs. How this worked was that Chastain, knowing which NFTs would be featured on the OpenSea home page, would buy assets from those collections and then sell them for a profit.

Now, months after he was charged, his legal team is looking to have his charges dismissed. As they put it, these charges are only being brought about to set the legal precedent of NFTs being securities. 

To Charge or Not to Charge?

On August 19, 2022, Chastain’s legal team filed a motion with the court of the Southern District of New York to dismiss his charges. According to the documents, the grounds for this dismissal would be the fact that legally speaking, NFTs are not considered securities or even the property of OpenSea.

And because these assets are not ‘securities’ per se, there is no ground for Chastain being charged with securities fraud or insider trading. 

His team has also made the argument that prosecutors are only pursuing the case in order to set a legal precedent on securities and the digital asset space. 

“While seeking to use this first-of-its-kind prosecution to posit broad assertions of insider trading, property theft and money laundering, the government’s arguments are contrary to years of settled precedent and are a transparent effort to plant a flag in the blockchain industry,” his legal team says. 

The legal status of blockchain-based assets has been a point of contention for years now and it seems it will play a role in this case. Several companies that have dealt with digital assets such as Telegram have found themselves in hot water with the Securities and Exchange Commission in the United States over the legal categorization of their assets. 

While this case is already a landmark one, given that it is the first time someone is being charged with insider trading for dealing in NFTs, it will likely make history in other ways. If Chastain’s legal team gets the charges dismissed, it could set a clear precedent that NFTs are not securities. But if this motion is dismissed and he is convicted, it could be a legal precedent in the opposite direction. 

NFTs Legal Status 

For years, the legal status of digital assets has been under debate both inside and outside of the courtroom. While this case will be yet another instance of that, it also shows that as profitable as the NFT space is, there are people who will act shadily and maliciously to make a profit. 

It should be noted that Chastain’s legal team hasn’t argued that he didn’t exploit his position to scam people essentially but that he should have his charges dismissed on technical grounds. Even as the industry progresses, legal status aside, it does show that even top marketplaces need checks in place to prevent exploitation.

Yuga Labs, the company behind top collections like the Bored Ape Yacht Club, started off 2021 with a bang, acquiring several other top NFT collections and announcing its own metaverse. With the acquisitions, which included such beloved collections as Meetbits, Yuga Labs solidified its status as one of the biggest forces in the industry. 

Now, months after they were acquired, the IP rights to both the CryptoPunks and Meebits NFTs have been released. This news was confirmed on the official Twitter pages of both collections, to the excitement of their holders and NFT lovers alike.

What Does This Mean?

One of the most important reasons why people buy certain NFTs is to acquire their Intellectual property (IP) rights to them. What this means is that once an NFT holder has the IP rights to an NFT, they can use its image and likeness in both personal and commercial ways. 

A good example of this would be those who have opened Bored Ape-themed restaurants and Seth Green’s upcoming TV show that stars his own Bored Ape. In fact, the use of NFT imagery in commercial ways has become so widespread that a marketplace has even been launched to connect NFT holders to those wanting to license their assets.

Needless to say, NFT holders of both collections have been very happy at the news of the IP rights being released, and so have their founders. 

In a statement to Bitcoin News, the Yuga Labs co-founders, Gordon Goner and Gargamel, said that the release of IP rights was a crucial part of the development of a web3 future. 

“IP rights for your NFT. This massive step forward unlocks endless possibilities for creativity and ingenuity, which Meebs and Punks aren’t lacking in the slightest. We believe that this type of freedom is a critical part of web3, and truly celebrates the founding principles of Yuga Labs: ownership, decentralization, and innovation,” they said.

Now that these rights have been put into the hands of the NFT holders, we can expect to see a lot more imagery from both collections. Just recently, CryptoPunks launched a collaboration with Tiffany & Co. that saw pendants being made in the image of one of the NFTs. Just like with the Bored Ape, CryptoPunks and Meebit-themed offerings will likely hit the market very soon. This move also reinforces the ownership model that is a big part of web3 as a whole. 

NFT Ownership

Since the NFT boom, and especially with the very popular collections, there has been more discussion about digital ownership and what that entails. When it comes to IP rights, NFTs can be seen as even more of an investment. 

After all, it’s one thing to have access to a piece of digital art but another to be able to monetize and use its likeness however you want. This move by Yuga Labs means that asset holders have more freedom for what they can do with their investment and sets a standard moving forward.

NFTs have been used for all sorts of fundraising efforts over the last few years but one of the more eye-catching instances is when they overlap with the world of politics. Back in June of this year, Colorado governor Jared Polis released an NFT collection to raise funds for his campaign. 

It seems his efforts have inspired others as January Walker, a Utah politician, has also begun selling NFTs to support her campaign. This makes her one of the biggest proponents of NFT use ahead of the November mid-term elections under the United Utah Party. 

Details About the Campaign

The NFTs in question were released on August 13, 2022, and were of four different types; a yard sign, a pin button, a coin and a flag. Each NFT features either Walker’s face, her campaign slogan, or both and is in the colour purple. All of them were minted on the Cardano blockchain and cost between 89 ADA to 5,000 ADA each. 

Throughout her campaign so far, Walker has repeatedly extolled the virtues of blockchain technology and seems intent on pushing them if elected to office.

“This is how fundraising will be done in the future & it’s attracting eyes from other politicians. So cool to see people picking up the Yard Sign NFTs and showing them off IRL. #CardanoCommunity leading the way! ttps://campaign.mintcity.app,” a tweet from August 18 says. 

On her official website, she says that her first act if elected is to actively fight inflation and that she will leverage technology to do so, though it is not yet known if blockchain technology like NFTs will be in the mix. Her website also mentions that if elected, she will focus on cyber security and personal privacy, which are two issues that are quite relevant to NFT users. 

Professionally, Walker has stated that she holds a degree in Business Administration with a major in Economics and Finance and also has a background in cybersecurity. This, along with being a millennial, she says, means she can bring a fresh perspective to congress if elected. 

Back in 2020, she had publicly praised the use of blockchain technology for voting purposes, saying that “I’m really excited for the rest of the world to see the benefits. It can be good for the environment, cost, access, and accountability!” 

It has not been publicly revealed how much has been raised through her NFTs just yet. 

NFTs in Campaigns 

This is at least the second time this year that NFTs are being used by US-based politicians for fundraising purposes and we could start to see them even more around the world. 

In many ways, they are indicative of the state of the cultural landscape in that more people are aware of and embracing NFTs. Walker herself is a millennial, which puts her in the age range of those more interested in NFTs and as more of them become politically active, things like NFTs will become a bigger part of the political arena.

There are many benefits to owning an NFT from a top collection; there are the bragging rights, the opportunity to use the image and likeness of your NFT (as some have done), and also the benefits of having them as an investment. 

One way that NFT holders, especially those with very valuable ones, benefit from them is by leveraging them for loans. There are many sites these days that allow you to take a loan by putting up your digital assets like NFTs as collateral. But now, owners of some top NFTs like Bored Ape and Mutant Ape are on the verge of losing them because of these loans. 

NFTs at Risk 

This information about potential NFT liquidation comes from Dune Analytics, which published data on BendDAO, a decentralized lending platform. As per the data, 14 Mutant Ape NFTs have entered the 48-hour holding period. What this means is that their owner(s) took out loans with them as collateral and now have 48 hours to repay the loan or the NFTs will be seized. 

This is also about to happen to 4 Bored Ape Yacht Club NFTs if the loans they were taken against are not repaid. Now, on the surface, this would seem simple enough; if the loan defaults, the collateral is seized, as is done with traditional loans. 

But one thing that must be considered is that NFTs are not like a typical asset you would use as collateral for a loan. The digital assets market is notoriously volatile and as such, the floor price of each asset needs to be taken into account. 

If, for example, the NFTs’ floor price falls below what the original owner borrowed against it, what happens? With some of the NFTs highlighted, there are no current bids and this brings into question what will be done. 

But the platform has already given some information about how this will be handled on its FAQ page. First, it explains that temporary floor price dips are to be expected in the market and should not be a source of concern. It also explains that the site would have what is called a temporary floating loss and not an actual loss. 

In that case, the borrower would be required to eventually repay the loan eventually or some time would be taken until the floor price recovers and then liquidators will come in to auction the asset.

NFT Loans 

As NFTs themselves become more popular, more people will look to take out loans by leveraging their assets. And as the market goes up and down, there will inevitably be situations like what is happening with BendDAO.

All that is left is for platforms to put measures in place that will protect both the lender and borrower in this instance. Like any other form of loan-taking, NFT loans carry some risk attached to them and over time, the nuances of them will likely be figured out and holders will be able to access loans through their assets.

These days are a very good time to be a sports and NFT fan. All sorts of teams and organizations around the world are releasing collections specifically for sports fans, who are now spoiled for choice. 

The latest offering in this niche comes from Dapper Labs, who announced on August 18, 2022, that its new collectables platform, NFL All Day, is now live. This comes after a long period of the site being in beta mode. The collectables platform is similar to NBA Top Shot in that it has official licencing from the NFL in the United States and thus, offers verified NFTs for fans. 

Good News for Football Fans 

This isn’t the first time that Dapper Labs has developed a platform for sports fans to access NFTs. The company is also behind UFC Strike, a platform that allows the trading of UFC-based NFTs. 

But what does NFL All Day offer fans? Well, most of its NFTs will be video highlights of games that can be bought, sold, and traded among fans on the site. For sports fans, video highlights of top moments can be very valuable and now, they have a secure place to access them. 

The platform, which is based on the Flow blockchain, was first announced last year and was supposed to be launched earlier this year but remained in beta mode for a prolonged time. According to Dave Feldman, the senior VP of marketing at Dapper Labs, the team realised that since they could not make the initial release date, they could take the opportunity to add new features and improve on the platform. 

“Once we decided that we weren’t going to launch prior to the Super Bowl last [season], I realized that we had the entire NFL offseason keep our heads down and focus on some of the most important features and game design elements that we want to include,” he said.

Now that the site is open to the public, it will be releasing a pack of ‘headliners’ NFTs which showcase top moments from sports icons like Tom Brady and  Jalen Ramsey. With this in mind, it comes as no surprise that the platform has seen a positive response from fans. According to Feldman, the site had over 200,000 users waiting to sign up at the time that it was ready to leave beta mode. Now, we can see how those numbers will translate on the sales end. 

Video Highlights 

As any sports fan will tell you, sports highlights videos are some of the most exciting parts of any game. But being able to own and trade and a highlight is a fairly new concept entirely. 

But thanks to the different NFT sports trading platforms that have popped up, fans are able to do just this. Clearly, there is a lot of demand for this sort of service, given the response NFL ALL Day has seen from fans. And now that the site is live, NFL lovers can get their hands on these precious highlights.

Scam and hacks are some of the biggest issues facing NFT holders around the world. From owners of NFTs from smaller collections to millionaires, it seems NFT holders as a collective are constantly being targeted by scammers. One of the ways that this is done is through spam NFTs. 

How this works is that NFTs are randomly sent to digital asset addresses with a message to the owner that they are free. Usually, the wallet owner is prompted to click on a link attached to the NFT to mint their ‘free’ asset. Except these assets are never actually free and instead, the victim’s wallet is hacked and their assets are stolen. 

But Phantom, a Solana-based wallet, has unveiled a new feature to keep users safe and fight spam NFTs. 

Straight to Spam 

According to an August 17, 2022 blog post, Phantom recognizes this problem and acknowledges that it is getting worse over time. To combat this, the wallet has introduced the Burn NFT feature. How this feature works is that the wallet user needs to navigate to their Collectables Tab and then select the asset they want to burn. 

Once they do this, they must select the Burn Token function which is located in the top-right ellipsis menu. Once the NFT is burned, the user will get a small amount of SOL, the native token of Solana. As per the press release, this acts as rent for the storage of the NFT. 

This effort has been well-received by the community since its announcement and builds on other initiatives taken by the wallet provider. More specifically, it will contribute to its ongoing blocklist, which already has over 800 addresses listed. 

“When our full-time globally distributed team finds out about a scam NFT, the contract address and domain is added to a block list which hides the NFT from the wallet and creates a warning that the site is malicious,” the announcement says.

Phantom also announced that it will be teaming up with Blowfish to make improvements to its phishing warning systems. More specifically, it will be issuing warnings when users are about to click on dodgy links that could lead to malicious sites. 

Beyond this, Phantom is also looking to introduce automatic spam detection software in the future. This is similar to what traditional email providers offer their users and which creates spam folders. 

The End of Spam?

While we cannot stop scammers from trying to target NFT holders, we can put more measures in place to make sure that they don’t succeed. This is the benefit of initiatives like the Phantom wallet’s NFT burn feature. 

Not only can they get rid of spam NFTs but they also help to build a database of spam wallet addresses to be avoided. This, along with the automatic spam detector, means that soon, spam NFTs will be much less of an issue in the same way that spam emails are much less of an issue now than they were decades ago.

Hollywood has, for a while now, developed a love affair with NFTs, whether this is new projects being funded by NFTs or actors like Bill Murray releasing their own NFT collections. This new crop of Hollywood-based NFT projects shows just how far these digital assets have come in terms of public acceptance. 

The latest Hollywood heavyweight to get into NFTs is the iconic actor Anthony Hopkins, known for roles in such films as Silence of the Lambs and Hannibal. The actor announced on August 17, 2022, his new NFT collection that was developed in collaboration with Orange Comet. 

Hopkins’ NFTs 

Discussion about Hopkins getting involved in NFTs first began earlier this year when he reached out publicly to other celebrities such as Snoop Dogg about advice regarding them. On his Twitter account, the two-time Oscar winner said that he was ‘astonished’ by NFT artists and said he wanted to acquire his first piece.

Now, he is releasing NFT pieces of his own, with what is called the Eternal Collection. So what does this collection entail? Well, it can be seen as a nod to his extensive career as he is depicted as 10 of the different archetypes he has portrayed during his lifetime. 

Some of these include the lover, the jester, the creator, and the rebel, where he appears in a face mask reminiscent of the one he wore as the character Hannibal Lecter. Those who are fans of the actors’ work will certainly find something for them in this collection, regardless of what their favourite Hopkins role is. 

Speaking to Vanity Fair, Hopkins explained how he got interested in NFTs in the first place. As he puts it, this was during the filming of the short film Zero Contact. Rick Dugdale, the director of the short film, released it as an NFT and this got Hopkins curious. 

“NFT is for me a blank canvas to create art in a new format. It’s fun to be the old guy on the block—the oldest guy. I’m interested in and fascinated by young people…. But inspiration is reciprocal, and so I’m hoping to also return some inspiration to people by saying that everything is possible. Give it a whirl, have a go. That’s what I did in my life,” the actor says. 

Only a limited number of NFTs will be sold with this collection and those who buy, will receive animated digital NFTs, autographed printed copies of the art, and an audio recording of Hopkins discussing the project. A few lucky buyers will also get Hopkins’ art book, a virtual discussion with him, and even the chance to meet him face-to-face. 

Legacy NFTs

Between Murray and Hopkins, two Hollywood icons have released NFT collections that allude to their impressive careers. Could this become the next Hollywood trend?

It’s certainly a possibility. NFTs from actors with such lengthy careers could spark more interest from older people and also connect legacy IPs to a younger, more NFT-loving crowd and essentially bridge the old and the new.

These days, it is not unusual to see NFTs be leveraged for goodwill purposes. From assets being sold to raise funds for Ukraine to NFTs allegedly being used to save the Amazon Rainforest, the metaverse is being brought into the world of non-profits.

The latest of these comes from the Oklahoma City Zoo which has announced the launch of NFTs to benefit international orangutan day on August 19, 2022. In honour of the day, the zoo will be auctioning 20 unique artworks that have been created by its resident orangutan named Elok.

All About the Project

Elok, the 21-year-old orangutan who created the artworks, did so through digital paintings. Now, the paintings will be auctioned on OpenSea from August 19 to August 22, 2022. The starting price on each of the NFTs is about $500.

According to the zoo, Elok made the paintings using a modified paintbrush and an Xbox. While the orangutan has previously made paintings on physical canvas, this was his first time doing so digitally. To spark his imagination, the zoo says, Elok was given puzzles and other creative tasks. 

As he made the paintings each day, he got treats in return and the activity was also used to keep him active and healthy. Over time, the zoo says, he got more enthusiastic about the exercise. 

“You could see that learning as he went through the process and once he understood it, then he got a little bit more into it,” says  Tracey Dolphin, the curator of primates at the Oklahoma Zoo. 

Once the auction is held, the funds will first be donated to the Leuser Conservation Forum, and will then be used to conserve Elok’s native habitat in Indonesia. As explained by the zoo, primate populations around the world are facing extinction and this is often due to many factors, including illegal hunting and trade. 

Other organizations will also benefit from the fundraising and the zoo says that this will go a long way to protect the Orangutan population around the world. 

“Most people won’t have an opportunity to see a wild orangutan and a lot of people don’t know what’s happening to orangutans and their habitat, or to the other species that share the forest they live in, and our animals are a good way to introduce people to that and make them care about something that’s happening on the other side of the planet,” says Rebecca Snyder, the Oklahoma zoo’s director of conservation and science. 

NFTs; a Force For Good

NFTs’ applications in the world go beyond just speculative assets and cultural movements. They are, in fact, fast becoming a modern way to raise funds for good causes. 

In the past, this sort of initiative would have featured physical art made by Elok that could be sold to those who bid in person. Now, these digital creations can be bought by anyone anywhere in the world who wants to support the conservation of an endangered species, all thanks to NFTs.

Remember Ryder Ripps? He is the artist who was sued by Yuga Labs, the parent company for the Bored Ape Yacht Club, for creating  RR/BAYC, which they call a knock-off of the original Bored Ape NFTs. He is also the man who alleges that the Bored Ape Club and its founders have Nazi affiliations, allegations that have been repeatedly denied. 

Needless to say, Ryder does not have the most cordial relationship with Yuga Labs. Now, this relationship is getting even more strained as Ryder has hit back against the lawsuit, claiming that it is a bid to silence him.

Ryder Fights Back

According to Ryder’s legal team, Yuga Labs has launched this lawsuit as a way to silence him for speaking out about the alleged Nazi affiliations within the Bored Ape Club. This, they claim, constitutes a strategic lawsuit against public participation (SLAPP) and as such, the lawsuit against Ryder should be dismissed.

The current suit brought forward by Yuga Labs, however, seems to be focused more on the NFT collection that Ryder released. The collection, called RR/BAYC, is similar to the Bored Ape Yacht Club in its name and appearance and Yuga Labs claims that this is deliberate. As per court documents, they claim that the collection was designed to trick people into buying its NFTs thinking they were buying actual Bored Ape assets. 

So far, Ryder has reportedly made around $1.6 million selling thousands of them. But his legal team denies this allegation, saying that the RR/BAYC collection is appropriation and not an infringement of copyright. 

On the site for the collection, a statement also read that it is “satire and appropriation to protest and educate people regarding The Bored Ape Yacht Club and the framework of NFTs.”

The allegations of racism against the Bored Ape Club have been a long-running issue for its fans and creators. Though they have been repeatedly dismissed (with an in-depth blog post being released earlier this year debunking all the claims), they continue to persist. Just this week, the hacktivist groups Anonymous even announced that they would be investigating the Bored Ape Club to confirm or debunk these rumours. 

While that is going on, it seems Yuga Labs’ battle with Ryder, who confirmed to ARTNews that he will be seeking legal fees, will continue. 

Bored Apes and Rumours 

While the Bored Ape NFT collection has been and likely will continue to be the subject of rumours, it has remained the most profitable NFT collection in the world. From celebrities who buy them partially as a status symbol to being very recognizable, even by those who aren’t into NFTs, they have continued to dominate the sector. 

This has all happened even as the collection has been accused of having Nazi imagery, along with other allegations. If they are proven to have any merit, it will be interesting to see the effect that would have on both sales and their cultural relevance.