The REAL Real Estate is Digital
The Real Real Estate is Digital
JP Morgan has announced that cryptocurrency has replaced real estate as the “preferred alternative asset class along with hedge funds”. In a note sent to clients on Wednesday, strategist Nikolaos Panigirtzoglou and his team at the global investment firm also stated that they see Bitcoin’s “fair value” at $38,000, “implying significant upside for digital assets from here”:
“The past month’s crypto market correction looks more like capitulation relative to last January/February and going forward we see upside for bitcoin and crypto markets more generally.”
The team also has a long-term prediction of $150,000 based on market volatility and the calculation that it is about 4x more volatile than gold.
As for crypto’s role at JP Morgan, the bank is looking at how the current bear market has bloodied the crypto landscape as only evidence of its potential to rebound and grow. Even considering the aftermath of Terra, the JP Morgan team believes the:
“...trajectory for VC [venture capital] funding would be crucial in helping the crypto market to avoid the long winter of 2018/2019”.
JPM has come a long way since their “Bitcoin is a Fraud” days. Everyone has to learn sometime.
South Korea Holds Emergency Crypto Seminar
South Korea may introduce stricter policies and procedures on crypto exchanges, following the aftermath of the Terra debacle. An estimated 280,000 people in South Korea have been affected by the Terra/Luna collapse, and according to The Korea Times, an emergency seminar was held this week to discuss the introduction of legal safeguards and stronger monitoring practices to prevent future recurrences. Representatives from the South Korean National Assembly and leaders from the top five crypto exchanges in the nation met for two days. Rep. Sung Il-jong of the ruling People Power Party said:
"We need to make exchanges play their proper role, and toward that end it is crucial for watchdogs to supervise them thoroughly."
Financial Services Commission Vice Chairman Kim So-young said:
"We are going to build close ties with the Ministry of Justice, the prosecution and police, in a bid to monitor any illegal acts in the industry and protect investors' rights."
The motivation to regulate is further backed by the IMF’s recent warning against investing in stablecoins. Kristalina Georgieva, managing director of the IMF, called stablecoin investment a “pyramid” during the World Economic Forum on Monday:
“If a stablecoin is backed with assets, one to one, it is stable. When it is not backed with assets, but it is promised to deliver 20% return, it’s a pyramid.”
Vitalik Buterin, president of the internet, published a more nuanced take of stablecoins this week that NBTV highly recommends you take a look at.
While the ideas and talking points have been huge part of a nation-wide discussion, regulation may still be a while off — Newly elected President Yoon Suk-Yeol seems to be on the side of deregulation as a way to “realize the unlimited potential of the virtual asset market.”
New Moon Rising for Terra
After several weeks of emergency damage control, Terraform Labs launched their new blockchain today. They have created a new chain called Terra, and the existing Terra chain has now been rebranded to “Terra Classic”. They seem to have revived essentially the same LUNA coin, but this new one will not be coupled with the Terra stablecoin in any way.
The company created a snapshot of the Terra blockchain from before the crash, and holders of both the existing LUNA and TerraUSD will receive airdropped tokens that will be vested according to their previous holdings. 30% of tokens have been sent to those who held more than 10,000 coins, with the remaining 70% disseminated over the next two years.
Those with over a million prior to the depegging will have to be more patient, with projected wait times of over a year, and a four year vesting period attached on top of that. Popular apps built on Terra are expected to migrate over to Terra 2.0.
Immediately after launch, Terra spiked to almost $20, but then crashed 73% and is currently sitting at around $5.
Gamestop Levels Up
Gamestop has launched its official wallet, after months of “will they - won’t they”. It gives users the ability to send and receive ETH and ERC-20 tokens, and runs as a browser extension through the Chrome Web Store. The new etheruem-powered wallet is non-custodial, meaning users will have to be careful not to lose their passwords. As predicted on NBTV, it runs on Loopring Layer 2 scaling protocol, which is optimized for decentralized exchanges.
The new wallet is designed to integrate with their upcoming NFT marketplace, set to launch in Q2 of this year.
Knowing how their fanbase likes to ape into things, Gamestop also cautioned users who are trying out their new wallet:
If you are new to wallets or need a refresher, take time to check out our NBTV guide to crypto wallets!
Crypto VC Investments Bullish, Despite Bear Market
Multi-million dollar crypto investment funds are seeing resurgence, despite the global bear market. Binance’s Former VP of M&A, Ling Zhang, and Former Head of Corporate Development, Wayne Fu, have teamed up to create a $100 million venture fund meant to aid in crypto adoption in emerging markets. The name of the new venture, Old Fashion Research, is based off of the popular whiskey drink and reflects the team’s “old school, and fashionable” approach.
Source: OFR Official Website
According to their official website, OFR has already invested in over 50 blockchain and metaverse projects including African gaming community “Metaverse Magna” and DeFi exchange platform, WOO Network.
In an interview with Coindesk, an OFR spokesperson stated:
"We also see the potential of crypto to further change people's life and work style after seeing the fast growth in Southeast Asia markets."
OFR is not the only team who has not let the current crypto climate affect their plans for the future. Venture capital firm Andreesen Horowitz (A16z) announced on Wednesday the formation of a $4.5 Billion fund (their fourth fund of this kind to date) that will be focused on cryptocurrency and web3 companies. In the announcement, Chris Dixon, General Partner of the firm said:
“We’re going to use these funds to invest in promising web3 startups at every stage. We are excited about developments in web3 games, DeFi, decentralized social media, self-sovereign identity, layer 1 and layer 2 infrastructure, bridges, DAOs & governance, NFT communities, privacy, creator monetization, regenerative finance, new applications of ZK proofs, decentralized content & story creation, and many other areas.”
The current state of the crypto markets, cold and lonely as they may seem, have not deterred everyone. Some people are still betting on permissionless and decentralized technology as our future — perhaps even more encouraged to do so after taking a look at the broader economy.
By Will Sandoval, NBTV Associate Producer, and Naomi Brockwell.