Seedphrase Daily ? Crypto is looking like an orphan with the amount of adoption happening.
Today’s Agenda ?:
? SEC is coming for Yuga Labs. You need to use the news to protect your bags.? CNN: the most legit rug pull. ? Google ? Coinbase ? crypto payments
? SEC is coming for Yuga Labs. You need to use the news to protect your bags.
After a $1.26M settlement with pump&dumper Kim Kardashian, the SEC is feeling on top of the crypto world. (We would be too if Kim K made it rain on us.)
SEC has gone full Karen and they want to speak to the manager.
We’re talking Yuga Labs of course- the biggest fish in the NFT pond, valued at $4B. The SEC claims they are exploring whether the crypto startup broke federal law by issuing NFTs that act like stocks and exploring the distribution of the Ethereum-based ApeCoin token that launched earlier this year.
? The investigation
It’s crucial to note Yuga has not been accused of any wrongdoing, they are just being investigated. There’s a chance this may not even lead to charges. Even if it does lead to charges, Yuga has a well funded legal team.
At its core, this is a matter of whether crypto and NFTs are securities.
SEC Chairman Gary Gensler made a speech a few weeks ago letting the country know he thinks they definitely are. But this is America, not a dictatorship, and he’s just one member. This investigation allows all SEC members to properly research the matter.
? Fact: BTC is the only crypto that is not considered to be a security with 100% certainty. BTC acts as digital property. Think of it like gold. There is no CEO of gold. It is a good that anyone can buy, and no one person can manipulate. BTC is the same.
Commodities: goods that can be bought, traded or exchanged–like grain, beef or gold.
The debate: Many argue the tech and functionalities of NFTs and crypto make it fundamentally different from securities.
? Fact: Apecoin was not created or launched by Yuga Labs. It was issued by the Ape foundation and fronted by prominent builders like Alexis Ohanian and FTX ventures.
Now that you understand what’s going on, here’s your investing lesson of the day:
How news affects markets.
After the announcement, ApeCoin dropped more than 10%. If you stay on top of the news, you can make money off it. Good news=price go up, bad news=price go down.
If you shorted $APE, enjoy your profits.
Breaking news is easier to access than ever. (1) Go to your phone. (2) Get some news apps, like Bloomberg. (3) Turn your notifications on.
? Golden Nugget: Other than banging memes coming out:
This is a necessary step toward the overall adoption of web3 and NFTs. We told you guys last week: Kevin O’Leary signaled regulation will bring trillions of dollars to crypto markets. Regulation brings clarity, so institutions will no longer be confused and scared of getting sued.
? Not even CNN can help itself from rug pulling.
Cable News Network (CNN) has officially pulled the plug on its NFT project, and now they are branded rug pullers.
Their master plan
Vault CNN was created last year and offered NFTs commemorating significant news events.
In fairness, it was supposed to be a 6-week experiment to learn about web3. But the NFT community has gone through a lot. A rug pull from CNN might just be the last straw. NFT twitter is full of people shitting on founders, calling everything a rug, and complaining. We don’t blame them- it’s just signs of PTSD. It’s a hard knock life for a degen.
Vault was built on Flow blockchain, and users didn’t need to make a digital wallet to make transactions since all payments were collected through stripe.
After making hundreds of thousands of dollars, their experiment was over.
News of our own to share
— Vault by CNN (@vaultbycnn)
Oct 10, 2022
Holders were understandably upset, so CNN offered them compensation of roughly 20% of the mint price back into their wallets as $FLOW or stablecoins.
? Golden Nugget: This shows that almost all NFT projects will reach 0. Whether it is from prominent companies or not, it’s up to you to DYOR and take risks accordingly.
? Google ? Coinbase ? crypto payments
Google is the internet’s search engine used by almost half the world (4.3B people) and said it would use Coinbase Prime to accept crypto payments for cloud services.
Slow but steady wins the race.
Unlike Facebook, Google has been slowly gauging whether or not adding crypto would be beneficial to them.
Adding things here and there to integrate blockchain into their systems.
Last month, Sky Mavis reached an agreement with Google Cloud enabling the tech giant’s cloud division to run a validator node on Ronin Network, an Ethereum sidechain set up by Axie Infinity.
They also marked the countdown for ETH’s merge last month with a little graphic that appeared to anyone searching “Ethereum Merge.”
And most recently, it gives users the ability to search ETH wallets to see their balances and wallet information.
Well done, blockchain address is now available in Google Search!
— Han? (@hhua_)
Oct 11, 2022
Small things but a big step to getting recognition in this small space.
Future of crypto payments
Now they are looking to accept BTC, ETH and DOGE to buy cloud services offered by Google.
We hope it will simplify the complexity of Web3 and crypto, which would create more of a funnel for people to get onboarded more easily.
They’re also aware that they have to keep up with future developments in technology, or else they gain the risk of being left in the dust with MySpace or Bing. They are a giant, after all.
? Meme of the Day
me and the boys when alt season finally comes back
— yzy.eth (@LilMoonLambo)
Oct 9, 2022
DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research