Category: News

When it comes to companies in the NFT space, very few operate on a level quite as high as Yuga Labs. Besides having such massive projects under its belt like the Bored and Mutant Ape Yacht Club, it also scored a big win last year with the Otherside metaverse launch. 

Well, it seems that Yuga Labs is starting the year strong with the release of its Sewer Pass NFTs which has seen a lot of support from the community. But besides the financial success of the Sewer Passes, this project also sheds some light on Yuga Labs’ stance on asset royalties. 

Details About the Launch 

Sewer Pass is the latest release from Yuga Labs but unlike collections, like the Bored Ape Club, it functions more as a form of entry. More specifically, these assets grant access to Yuga Labs’ new skill-based game called Dookey Dash. The game will be available from January 19 to February 8, 2023, and these form part of a larger project coming from the company soon. 

“Sewer Pass claim is now open at http://mdvmm.xyz. Every BAYC/MAYC holder can claim one until February 8. There’s no rush or benefit to early claiming  — if you have a BAKC, you may want to bring your doggo along. Sewer Passes are the only way to access Dookey Dash,” a tweet from the Bored Ape Yacht Club said.

Needless to say, these NFTs were bound to be high in demand and once they were released, they reportedly brought in over 4,000 ETH in their first day, which converts to about $6 million. 

This is reminiscent of the same success that Yuga Labs had with its Otherdeed mint last year which saw thousands of dollars being paid in minting fees alone. What makes this even more remarkable is the fact that only current Bored Ape, Mutant Ape, and Bored Ape Kennel Club NFT holders were allowed to buy. 

Yuga Labs Steps into the NFT Royalties Debate

But with all this success is a bit of controversy. More specifically, there is controversy about the royalties attached to these assets. Some buyers noted that the smart contracts of the assets prevent them from being listed on certain NFT marketplaces like LooksRare and NFTX.

What these marketplaces have in common is that they do not honour royalties for NFTs. This has been a re-occurring debate within the NFT space for a while now as some marketplaces and projects have taken a pro-royalties stance while others have gone in the opposite direction. 

With this, it seems clear where Yuga Labs’s stance is and this could further complicate what is already a divisive industry-wide debate. Though, given the amount of money that Yuga Labs’ projects bring in from royalties, this is not entirely surprising. 

“This seems to be the first time that a large legacy player, that has been unable or unwilling to modify existing contracts to enforce royalties, has deployed a new contract for a significant mint,” noted one of the founders of Azuki. 

One industry that has recently become enthralled with the NFT space is the music industry. On paper, not much connects NFTs and music recordings but over time, we’ve seen some impressive output. Several musicians have launched their own NFT projects such as Snoop Dogg and Madonna, exclusive NFT music releases have been made, some music charts now include NFTs in sales tallies, and there are even virtual bands made up of NFT characters. Needless to say, the music industry is quickly finding its footing with NFTs. 

One recent example of this is Helix Records, the EDM record label founded by Patrick Moxey last year. Moxey has openly said that the label will be diving head-first into the web3 space and to do this, it will be releasing NFT passes from February 2023. 

Details About the Passes

As per reports, these NFT passes will come with a plethora of benefits for their owners. First, they will be a passport of sorts into the Helix Records web3 ecosystem, which is poised to grow significantly over the next few years. On top of this, pass holders will get free music NFTs from artists under the Helix Records umbrella, as well as  IP tickets and backstage passes to shows. And given the fact that the record label has such acts as Snakehips, this should be very high in demand.

But the benefits go beyond just passes for customers as Moxey also intends to leverage NFTs for the talent discovery and development process. Holders will also have the chance to submit their own music to the record label and get feedback in return. 

“I hope to make a company that’s much bigger than my last company within the next five years. We really plan on making NFTs open a whole new door for you [the fan] that go way beyond the door that was available through the traditional record business,” Moxey says. 

As for the artists who are already signed to the label, they will be making their web3 debut very soon as Helix intends to invest more in the space. This, it believes, will foster a closer relationship between artists and their fans and this will allow for a better strategy on the part of the artists. 

We’ve already seen artists make exclusive releases through NFTs and they have become a source of income for many of them. This was something that was reiterated by Marshall Jefferson, a DJ who is signed to the record label. 

“Any way of making money for a musician is a blessing, because there are so few possibilities left. An open area like this where your music actually has value and you can make a living is an area worth exploring,” he said. 

While NFTs and the music industry are still a relatively new commercial pairing, there are already a lot of exciting things being done in the space. This new web3 exploration from Helix records could be the start of a bigger trend among other labels. 

It is always interesting to see how projects in the NFT space are able to command such high figures. Despite many decrying NFTs as worthless, many collections, blue-chip or not, continue to rake in the big bucks and this shows no signs of stopping. 

Case in point, the popular NFT project DeGods recently sold several pieces to a collector for a whopping $1 million. This collector, who goes by the name ‘Pokeee’, is well-known within the NFT space for snapping up blue-chip assets and bought an impressive 69 DeGods NFTs in one go. 

Buying DeGods in Bulk

What makes this story even more interesting is the fact that Pokeee has essentially spent $1 million to honour a Twitter bet. On January 13, 2023, he promised to buy 69 DeGods assets if his tweet got 1,000 likes. 

“will buy 69 @DeGodsNFT if I get a thousand likes. in support of @frankdegods move to eth,” he said at the time. The tweet went on to exceed this goal and barely a week later, he made good on his promise. 

Interestingly, Pokeee made the decision to ‘sweep the floor’ of the DeGods collection. This means that he used a tool on Magic Eden to buy a chunk of some of the cheapest assets in the collection. This is often used by NFT investors to get more mileage for their money by buying a horde of cheaper assets as opposed to one very expensive one for the same price. 

But DeGods is a very successful project in its own right, operating under DeLabs’ umbrella and becoming highly sought-after over time and securing one of the highest trading volumes on the Solana blockchain. And Pokeee certainly has experience in buying valuable assets as he is the owner of three Bored Apes, which are some of the most expensive NFTs in the world. 

Interestingly, DeGods’ incoming move from the Solana to the Ethereum blockchain played a role in this pricey purchase. In an interview with Magic Eden, Pokeee touched on this decision. 

“Yes, my purpose of this investment is actually to have them bridged to ETH. Due to on-chain risks, I wasn’t able to deploy larger portions of my portfolio into Solana. I was having fun in Solana on smaller nfts and mints back then,” he said. 

Pokeee also said that he was encouraged to invest in the DeGods’ assets because of the community behind it and after buying his assets, bragged about them to his Tinder dates (to varying degrees of effectiveness). 

Buying in a Winter

It is no secret that the NFT space is currently battling a winter that has rocked the confidence of some investors. But as this shows, there are still many investors who believe in the community and vision of several NFT projects and are ready to put their money where their mouth is. 

If this sort of public show of confidence keeps up, the NFT sector might just survive this winter yet. 

For years, blockchain-based assets have dealt with a tricky taxation environment. After existing without any taxation policies in most of the world, regulators began putting crypto-related tax codes in place in the mid to late-2010s. Then, NFTs came on the scene and there was the need to create tax codes to accommodate them as well. 

One of the latest developments in this sector comes from Japan. This comes as its national taxation agency has released new guidelines which specifically cover the taxation of NFT-related transactions. As per reports, these guidelines are meant to simplify the process of taxing NFT transactions especially because they are often numerous. 

Details About the Policy 

Those who deal in NFT transactions will tell you that an asset can be moved around multiple times in a month, especially if it is within a game. This is something that the agency acknowledged in its new policy, adding that, “In-game currency (tokens) are frequently acquired and used, and it is complicated to evaluate each transaction.”

As such, its solution to this is to calculate the income made by players at the end of each year and based on the in-game currency. Furthermore, tax is only charged if the assets are exchanged outside of the game. Should the assets remain within the game and never swapped, taxation would not apply. 

And this is coming at a very crucial time given that NFTs are making a big splash in the gaming world and as such, in-game assets are becoming very popular. But this lack of regulation can easily put players in the dark. Many are not sure if they need to pay tax on the NFTs that they earn within games and some might have undue anxiety about this. Luckily, this new policy shed some more light on the legal situation for players.

Some information was also given about the tax status of the creators of NFTs. Those who create assets to sell to Japanese users will be subject to consumption tax, though more information is expected to be released soon. Overall, it appears that the Japanese government is being more proactive when it comes to NFTs. 

This comes months after the government gave out NFT awards to members of the civil service and just as the digital assets market is gaining more ground all over Asia. 

The Matter of Tax

This ongoing wave of crypto and NFT tax laws around the world show how mainstream, visible, and profitable the blockchain space has become. In the space of a few years, they have gone from not being regulated at all to being given some regulations (which were not always adequate) to now having more thorough taxation guidelines.

For the individuals within the industry, this means that they can conduct their business without running afoul of the law and thus, with more peace of mind. And for the industry as a whole, it means that it can pursue adoption without constantly being at odds with regulators. 

It is well known at this point that NFTs are not universally accepted around the world and that some countries are more hostile towards them than others. But one thing appears to be consistent among countries that are more cautious about NFTs and this is a wariness towards ‘speculative’ NFTs, with China outright banning them. 

Interestingly, it appears that a similar thing is happening in South Korea as a court has banned the launch of a play-to-earn (P2E) NFT game. The reason given for this by the courts is that the NFTs within the game are speculative. 

The P2E Game Saga 

The game at the centre of this case is called ‘Five Stars for Klaytn’ and was developed by a South Korean company called SkyPeople. Within the game, players operate as digital characters and earn rewards which may be swapped for NFTs. And this is where the issue comes in. 

South Korean courts have decided that the NFTs act as a form of ‘reward’ and thus, are unlawful.

“The court found that the ban on domestic distribution of P2E (Play to Earn) games, that is, ‘money-making games’, was reasonable because non-fungible tokens (NFTs) paid as game rewards were used as speculative prizes,” said a local report, noting that the promotion of such NFTs constitutes speculation. 

And, under article 28, Subparagraph 3 of the Game Industry Promotion Act (Game Industry Act), the promotion of speculative assets is banned. This further meant that the Game Rating and Administration Commission was unable to classify the game and blocked its release. 

SkyPeople tried to appeal this decision on the basis that the NFTs acted more as a representation of ownership than as speculative rewards. But the judge was not convinced, noting that ownership of the NFTs can be established whether or not the owner even plays the game as the assets are traded outside of the app. 

“The game item NFT does not only have meaning as a unique address of digital assets, but can recognize property value in itself. The reality is that there has not been a proper social consensus on the legal nature and regulatory method of NFTs,” the judge said, siding with the commission. 

A lawyer representing the commission also noted that the same mentality can be applied to other NFT P2E games and that they might struggle to get a rating within the country. 

The Trouble With Games

This is a landmark case in that it is one of the first times that a court in South Korea is ruling on an NFT game. And because of this, it sets a precedent for other games in the space. As the lawyer representing the commission said, P2E games might receive similar rulings stating that their assets are speculative and might not be able to get a rating. 

As such, NFT games in South Korea might have to overhaul their business model to stay within the confines of the country’s law and remain operational. 

Because NFTs have proven themselves to be wildly popular these days, Hollywood and big franchises have jumped on the bandwagon. This is why we’ve seen such recognizable names as Stranger Things and Game of Thrones release NFT collections, though to mixed responses from critics and fans. 

One franchise we might not be seeing NFTs from soon is the Popular Dungeons and Dragons (DnD). A cultural force for decades at this point, some might have hoped for a chance to buy some DnD-themed digital assets. But a new policy change from its parent company will likely put an end to this dream.

DnD and NFTs 

This whole saga began last year when Wizards of the Coast, the publisher of DnD, announced that it would be making changes to its Dungeons & Dragons Open Game License (OGL). The OGL was what allowed fans of the franchise to create content and products based around it and offer them to others. 

When Wizards of the Coast announced that it would be making changes to it and restricting fans’ use of the DnD, there was an uproar among the community. This is something that the company acknowledged in its most recent update in which it said that it would be walking back on some of these changes. In the post, Wizards of the Coast outlined the reasons for its initial decision. First, it said that it wanted to avoid any of its trademarks being used in any hateful or discriminatory content. The second reason, cited, however, had to do with NFTs. 

“We wanted to address those attempting to use D&D in web3, blockchain games, and NFTs by making clear that OGL content is limited to tabletop roleplaying content like campaigns, modules, and supplements,” the January 13, 2023 post said, also citing a desire to avoid corporations taking advantage of the license. 

This is quite interesting as it mirrors the decision that Minecraft made last year to not allow NFTs on any of its associated servers, which drew backlash among NFT fans. Perhaps it stems from corporations wanting tighter control over their trademark being used for NFTs but fan-made assets seem to be a no-go for some. 

And even with Wizards of the Coast going back on its decision, it will still not be allowing NFTs. Instead, its updated license will protect fan-created and generally non-commercial content. 

“The next OGL will contain the provisions that allow us to protect and cultivate the inclusive environment we are trying to build and specify that it covers only content for TTRPGs. That means that other expressions, such as educational and charitable campaigns, livestreams, cosplay, VTT-uses, etc., will remain unaffected by any OGL update. Content already released under 1.0a will also remain unaffected,” the announcement said. 

Caution Around NFTs

It is clear that while some brands are jumping head-first into the NFT scene, others are taking a much more cautious approach to these assets, for whatever reason. And while we are not getting DnD NFTs now, we might just get some in the future.

At this point, we’re used to seeing celebrities get involved in the NFT space and some have even been quite successful with these endeavours, though the topic remains controversial. Take the recent collection released by former US President Donald Trump. While it made a lot of money on the market, it was panned by critics. 

But it seems the Trump-NFT saga is not quite finished despite the collection coming out over a month ago. Now,  several of the NFTs have found their way into the secondary market on OpenSea and promise several perks such as a chance to have a call with Donald Trump. 

Calling Trump

One of the appeals of the Trump NFTs, when they were first released, was the perks that came with them. Some of these perks include an in-person meetup with Trump and a possible Zoom call. The way the NFTs worked at the time, those who bought the NFTs would not know which of the perks they would receive until after they got their hands on one of the $99 assets. 

Shortly after the NFTs sold out, buyers were airdropped NFT access passes which were tied to these different perks. But these passes have now been listed on the secondary market for those who either weren’t able to get their hands on the initial release or who wanted specific perks without having to go through the initial process. 

Out of all of these, the NFT passes that offer a call with Donald Trump have been the most popular. One of these is a collection called ‘Win Trump Prizes’ which is hosted on OpenSea by a user called TrumpDeployer. This collection includes several passes for everything from dinner with Trump to a group Zoom call. 

“These are the Prize Winning Trump Trading Cards (NFTs). Prizes include: Dinner with President Trump, Zoom Calls with the President, play Golf with the President and 2 of your friends, Autographed Memorabilia, One-on-One Meeting with The President & so much more,” the OpenSea page for the collection says. 

So far, the collection has been quite a hit, raking in 64 ETH (over $98,000). But given the sheer number of assets being listed, with 2,373 listed as of press time, this comes as no surprise. 

At the same time, it must be noted that these NFTs are being sold for 0.030 ETH (roughly $25 ) each, which is a fraction of the $99 that the original NFTs were going for. When the original collectables were released, they saw widespread criticism, particularly on the late-night talk show scene, with top hosts decrying it as a cash grab. Then, there were accusations of plagiarism. 

The collectables featured Trump as a number of different archetypes and eagle-eyed observers noted that they seemed to have been photoshopped unto non-royalty-free images. These likely contributed to the value of the assets plummeting after the initial spike. But as this OpenSea collection shows, Trump fans are still pushing on.

It is always exciting to see the things that can be done with NFTs outside of the speculative. Sure, aesthetic NFTs are fine in themselves but we have seen time and time again that these assets can be used to deliver value to customers in the material world. 

Case in point, the legendary Tribeca Film Festival has announced that it will be releasing an NFT collection in a January 12, 2023 press release. The NFTs in this collection will act as passes to this year’s festival and will also come with some exclusive perks for all their holders. 

Details About the NFTs 

This collection of NFTs is being launched in collaboration with OKX, a top cryptocurrency exchange, which will list them on its marketplace. These NFTs serve multiple purposes as they are artwork but also act as VIP passes that grant access to select screenings as well as parties with Tribeca co-founders Jane Rosenthal and Robert De Niro. 

They are being sold on the OKX NFT Marketplace and can be stored on the platform’s wallet. The exchange and the film festival first teamed up last year and these passes are the result of this. Additionally, the NFTs are being sold on the official Tribeca Film Festival website. 

The Tribeca Film Festival is one of the most celebrated of its kind around the world and will be held this year from June 7-18, 2023 in New York City.

These NFT passes give an exclusive and tech-forward experience which the management of the festival has said is in line with its vision. 

“The Tribeca Festival has always been at the forefront of the intersection of technology and creativity, and it’s only fitting that this year’s VIP pass comes in the form of an exclusive NFT,” said Tribeca Enterprises Co-founder and Chief Executive Officer Jane Rosenthal. 

We’ve seen NFTs being used as access to exclusive events such as the Coachella music festival last year so clearly, this sort of initiative has been tried and tested. But beyond this, there is the connection that NFTs have developed with the creative world over the last few years. 

From artists to filmmakers, creatives of all kinds have embraced NFTs as a creative medium and a means of earning a living. The management of OKX acknowledged this in the press release, adding that this partnership represents a huge opportunity for them. 

“More than ever, creators are now utilizing innovative technology such as NFTs to tell stories and share their artistic vision. This project celebrates the natural synergy between blockchain technology and art while bringing amazing practical utilities to life that only Tribeca Festival can provide,” said OKX Head of Web3 Global Growth Nate Zou.

NFT Passes

Event ticketing is a big industry, generating billions each year. NFTs have proven themselves to be effective event passes and are now being used by some of the biggest events on the planet. Will they be used even more in 2023? Only time will tell. 

Few things whip up as much of a frenzy among NFT fans as the announcement that a global franchise will be launching NFT assets. And there have certainly been a number of them, from Baby Shark to Stranger Things. And when these assets hit the market, the response to them may vary. 

Take the official Game of Thrones NFTs that were announced last year. They recently hit the market and were sold out in under seven hours. While this was a success for Nifty’s NFT marketplace where they were listed and for the franchise, the NFTs were still criticized by fans. 

Mix NFT Responses 

When NFTs are attached to such notable franchises as Game of Thrones, it is almost inevitable that they will be a financial success. In fact, the Game of Thrones NFTs were so successful that Nifty’s was forced to pause its queue to accommodate demand. 

“Update on Build Your Realm Public Sale: We’ve paused the queue temporarily to work through current transactions. Processed payments that did not result in NFTs appearing in your wallet will be reversed or refunded. If any Hero Boxes remain, we’ll resume the sale shortly,” a January 10, 2023 statement said. 

The NFTs were based on the Plam blockchain and featured a presale of 3,450 Hero Boxes and a public sale of 1,500 Hero Boxes, each at a price of 0.11 ETH. Clearly, big franchises drive NFT sales. The same can be said about celebrities as when Donald Trump released his NFT line, it sold out almost immediately. But having massive sales is not the same thing as being universally well-received. 

Just as Trump’s NFT collection was panned for its alleged plagiarism and bizarre visual style, the Game of Thrones NFTs drew scrutiny from fans who spoke on its art style. The NFTs featured characters from the hit show and many fans said that the art was badly drawn, did not resemble the characters they were meant to portray and was overall disappointing. 

This is rather interesting because while the collection has been financially successful, fans still have some complaints. And this is not the only NFT collection that the franchise has in store as Nifty’s noted that the Series 2 of the ‘Build Your Realm’ collection will be coming to OpenSea. 

Should it follow in the vein of the first drop, it should be a success within the market as well. As for whether or not the imagery of the NFTs will be improved on before the release is yet to be seen. 

Franchises and NFTs

The success of this Game of Thrones NFT drop goes beyond just the franchise itself and is indicative of the place of NFTs in popular culture as a whole. We’ve seen many franchises launch NFTs and the market demand for these assets appears to be holding strong. 

As such, we will likely see even more franchises come out with NFT collections in the near future. 

One of the very interesting things about meme-based blockchain projects is seeing them take on a life of their own outside of the people and things that they are based on. 

Case in point, the Shiba Inu project. While Kabosu, the real-life dog behind Dogecoin and other Shiba Inu-themed tokens is battling cancer, one of the projects she has inspired continues to wax strong. Just recently, Shiba Inu announced that it has inked a partnership with legendary automaker Buggati. This partnership will see Shiba Inu, which is best known for its cryptocurrencies, launch a line of NFTs.

Shiba Inu Takes on NFTs

This development was confirmed by the Shiba Inu team on January 11, 2023, and will feature both collectable NFTs and physical items. 

“We can’t wait to share with you some exciting moments, in this our first collaborative #Shiboshis partnership set to bring physical items and collectible NFTs to the hands of our most devoted and supporting @Shibtoken’s NFT genesis holders,” the announcement said, noting that Shiba Inu will be hosting an event for Bugatti. 

During this event, a mint party will be held for the assets as well as a Twitter space on January 14, 2022 at 7 PM EST dedicated to its Shiboshis, which are those who bought the project’s genesis assets. These special supporters will be able to get their hands on an impressive spread of assets from the two companies. 

As per the announcement, there will be 299 limited releases and an exclusive 1st edition release. These assets will come at a price of .14 ETH and 95% of sales will come with a Cross Body limited edition Luggage Bag designed by Bugatti. And for the other 5%, there will also be perks to be had. 

“5% of all mints will receive limited edition Carry-On item from @bugattigrp! This will be rounded to 15 lucky community members and will be awarded with a Bugatti Carry-On item in which they can place their own Shiboshi NFT design,” the announcement said. 

The Rise of Shiba

This collaboration just goes to show how far Shiba Inu has come in terms of success and acceptance. When it first came on the scene, it was seen (like its contemporaries like Dogecoin) as only a meme coin with less value than other ‘legitimate’ tokens. 

It rose in popularity in 2021 after public figures like Elon Musk endorsed Dogecoin, causing its market value to spike and clearing the way for other such tokens to thrive. In the last two years, Shiba Inu has developed beyond its meme roots and has built a steady community around its use case. 

Looking back, it is truly remarkable that it has gone from pop culture crypto material to partnering with some of the biggest brands in the world. Around the time that Shiba Inu was working to be taken more seriously, corporate brands began dipping their toes in the NFT waters and in a stroke of excellent timing, the two have now teamed up.