Bitcoin Rallies Again: The Secrets Behind the Crypto Surge
Web3 Wednesday (#5)
Welcome back, Degenerates!
You might have noticed a buzz around the recent surge in Bitcoin prices. Momentum is strong, but let’s not get ahead of ourselves 😂. Also, I don’t think we’ll stop hearing of lawsuits in Web3 anytime soon. 2023 will be a long year.
🍿 Quick Snack
📈 Find out why bitcoin is rallying again
✂️ Over 2,900 employees were cut across 14 crypto firms
✋ Meet the Fiverr of Web3
👔 The momentous trial that could change the future of NFTs
Funding Rounds: Bunzz ($4.5m), Everscale ($5m), Emperia ($10m), VitaDao ($4.1m)
🍔 The Full Meal
Bitcoin Recovery in Full Swing
After a year of rough performance, Bitcoin (BTC) is showing positive signs of recovery based on its on-chain and futures market data.
This week’s rally in digital assets saw Bitcoin prices reach a high of $23.9k — its most robust monthly price performance since October 2021, fueled by spot demand and a series of short squeezes. (+43% YTD)
These short squeezes resulted in automatic purchases of Bitcoin, driving up its price and leading to a renewed equilibrium in the market.
Despite the return of a positive futures basis, the total open interest relative to the Bitcoin market cap has declined since mid-November. 40% of this decline can be directly attributed to the loss of 95k BTC worth of open interest held at the FTX exchange.
Also, a growing number of investor cohorts have returned to profitability, which is a good sign after the record realized losses in December 2022. The research team at Glassnode says:
Crypto Industry Suffers Major Layoffs in January Despite Bitcoin’s Rise
2,900 employees were cut from the cryptocurrency industry in January 2023. Source: Cointelegraph
⚡️ the crypto industry’s layoffs are not isolated incidents; the tech industry has also seen many layoffs this month.
TopIQs Launches Decentralized Freelance Marketplace
Traditional freelance marketplaces charge up to 20% fees, which can be challenging for freelancers, especially starting out.
TopIQs only charges a maximum 5% fee on crypto payments and provides buyers and sellers a transparent permanent history on the blockchain.
TopIQs aims to educate people about freelancing and cryptocurrency and puts control back in the hands of users to create a more secure and connected way to work.
⚡️ Steve shares 3 lessons he learned while building TopIQs:
Educate. Educate. Educate. Prioritize user education on blockchain and crypto technology to make it accessible to those unfamiliar. Offer video tutorials, Q&A sessions, and other resources to help them understand the basics and benefits.
Test. Test. Test. Ensure a thorough beta testing period before launching the product. Keep testing and iterating until you’re confident about a full launch. Invite users to use the product for free and gather as much community feedback as possible.
Service. Service. Service. Offer exceptional customer support, providing multiple options such as videos, articles, knowledge bases, and chat apps. Respond promptly to user inquiries and nurture the user community for a better user experience.
The Battle for Trademarks in the NFT World Begins
The trademark infringement trial between French luxury brand Hermès and digital artist Mason Rothschild is set to go ahead in a Manhattan federal court.
Hermès has accused Rothschild of trademark infringement for promoting and selling MetaBirkins, an NFT collection inspired by the Birkin bags.
Court documents reveal that Hermès argues the collection has improperly used the Birkin trademark and potentially confused customers into believing the luxury brand supports the project.
Rothschild believes his work is protected under the First Amendment, which allows for no limits on free expression.
⚡️ Power Take:
The trial outcome between Hermès and Rothschild could also set a precedent for how NFT projects will be regulated and protected.
If Hermès is successful in its lawsuit, it could lead to a stricter regulatory environment for NFT projects and a higher level of scrutiny for how NFTs are created and marketed.
On the other hand, if Rothschild wins, it could lead to a more permissive environment for NFT projects and lower legal hurdles for creators and investors.
📖 Further Reading
Keep it coming. CoinShares reported record inflows ($117 million) in digital asset investments last week, the highest since July 2022. (link)
Vamos! Mastercard and Binance have launched their second prepaid crypto card in Latin America. (link)
Cashing Out. A partnership between Poundtoken and BitcoinPoint has made Britain’s first 100%-backed British pound stablecoin, GBPT, accessible to consumers via a network of 18,000 ATMs across the UK. (link)
WHAT?! Guatemalan Merchants Drive Adoption with Free BTC Tattoos. (link)
Oh Yeah. ImmutableX is launching the Immutable Passport, a non-custodial wallet and gamer profile solution for Web3 gaming studios to onboard gamers with ease, security, and plug-and-play features. (link)
💸 Funding Rounds
Bunzz | $4.5m Seed: deploy smart contracts in demand with GUI.(link)
Everscale | $5m: blockchain design that proposes a scalable decentralized world computer paired with a distributed operating system, Ever OS. (link)
Emperia | $10m: platform powering the creation of immersive virtual experiences for brands across multiple retail sectors. (link)
VitaDao | $4.1m: funding and advancing longevity research openly and democratically. (link)
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