First Mover Asia: The Crash of Three Arrows Capital’s Starry Night Portfolio Shows NFTs’ Lack of Staying Power; Bitcoin Regains $20K After Earlier Drop

The largest cryptocurrency by market capitalization was recently trading just above $20,000, down about 1.7% during the past 24 hours as investors returned to more of the macroeconomic wariness that has shaped their attitudes for most of the past year. BTC spent part of the day below this level after a surprising spike in weekly jobless claims. For one of the few occasions in the past few months, a poor economic indicator discouraged markets instead of spurring them higher.

By early Friday (UTC), Binance Smart Chain’s native BNB token tumbled about 4% after the blockchain with ties to the world’s largest crypto exchange by volume suffered what it called a “potential exploit” that on-chain evidence suggests could be in range of $500 million. In a tweet late Thursday, Binance founder Changpeng Zhao wrote that the breach on “a cross-chain bridge, BSC Token Hub,” had “resulted in extra BNB, and that the company had “asked all validators to temporarily suspend BSC.”

After climbing promisingly earlier this week, equity markets returned to a more familiar slog with the Nasdaq, S&P 500 and Dow Jones Industrial Average (DJIA) falling 0.7, 1% and 1.1%, respectively. Investors will be eyeing Friday’s U.S. unemployment and labor participation reports for September, although the former is widely expected to remain in the neighborhood of its current 3.7% rate, increasing the likelihood of the U.S. central bank continuing its current monetary hawkishness and a so-called hard economic landing.

In a speech at the University of Kentucky, Federal Reserve Governor Christopher Waller noted surprisingly strong employment data earlier this week and the expectations that the U.S. economy will have created 260,000 new jobs last month – both signs that the economy has not slackened enough to consider more dovish policies. “A jobs number in this range along with the job openings rate reported on Tuesday would show that the labor market is slowing a bit but is still quite tight. As a result, I don’t expect tomorrow’s jobs report to alter my view that we should be focused 100% on reducing inflation.”

NFT’s nature of preserving claims to create digital scarcity was touted as a perfect fit for the booming metaverse. These digital worlds that were supposedly the future, according to crypto VCs, needed land titles so buyers could have a sense of ownership.

What about ticketing? Resale fraud is a huge headache for organizers of live events. In September, TicketMaster announced it was partnering with DapperLabs to explore NFT issuance for tickets. But it’s tough to see what this solves above and beyond TicketMaster’s existing marketplace and the company’s new policy for certain events to use dynamic QR codes via an app instead of paper tickets. After all, any sort of ticket sales will still be controlled by TicketMaster.

This content was originally published here.

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