📝 Field Notes #45: It's Game Time

Game time for Yuga Labs and Sandbox. Big moves in Web3 loyalty. Reddit stops token program. Ferrari accept crypto. Standard Chartered enters crypto. ETF approval coming. Top fundings, jobs & more.

Hey, it’s Marc. Welcome to my weekly, obsessively curated field notes on crypto & Web3 to help you filter out the noise. ✌️

⏱️ Reading time: 4 min

Be inspired✨

“Our mission is clear – to build culture on the blockchain." — Daniel Alegre, CEO Yuga Labs

📚 Top 5 Reads

  • The Phygital Stack. By Aleksija Vujicic. Link

  • A message from Yuga Lab’s CEO. By Daniel Alegre. Link

  • Why Onchain? The Source of Truth. By Garden X. Link

  • The Techno-Optimist Manifesto. By Marc Andreessen. Link 

  • 6th annual State of AI report. By Air Street Capital. Link

🚨 Top Stories That Caught My Eye

✨ Web3 + NFTs

It's Game Time for Yuga and Sandbox 🕹️

  • Yuga Labs’ CEO Daniel Alegre, formerly of Activision Blizzard, pivots focus to gaming and its metaverse Otherside.

  • Sandbox appoints Nicola Sebastiani, ex-PlayStation Studios, as Chief Content Officer.

Reality check. Blockchain-based virtual worlds lag in user engagement compared to Roblox's 200m monthly users (vs. Sandbox’s <100k monthly users), with Sandbox’ revenue declining –15% in Q2.

Punchline: It's back to the drawing board for IP holders like Yuga Labs and blockchain-based virtual worlds. They now need to figure out how to keep users – and the community – engaged. Their bets? Gaming – not hype.

Unlocking Loyalty’s Future 🤝

  • Insomnia Labs, known for Web3 campaigns with Coca-Cola and Under Armour, teams up with Co:Create, Cookie3, Crossmint, and Smart Layer to launch Loyalty+. Link

  • The program aims to help Web2 businesses build Web3-based, interoperable loyalty experiences (cf "open loyalty”).

Loyalty crisis. In 2022, US consumers averaged 16 loyalty memberships, but less than 50% were actively used. Fragmentation and closed ecosystems contribute to this issue.

Rethinking rewards. Brands like Starbucks, Alo Yoga, IWC, and others are experimenting with Web3-based loyalty experiences, using ownership, community, and gamification to boost engagement.

Zooming out: Loyalty is poised to be one of the key apps of Web3, as its shared data layer enables seamless collaborations across brand ecosystems. Loyalty+ could be an important step towards a universal, Web3 loyalty stack.

More from Web3:

  • The Open Metaverse Alliance (OMA3) forms a working group, including Yuga Labs and Magic Eden, a multi-chain NFT marketplace, to establish NFT royalty standards. Link

  • Reddit stops Ethereum-based community points program due to scalability and regulatory concerns. Link

  • Ferrari accepts crypto payments for its cars in the U.S. Link

🌎 Crypto & Macro

Crypto’s Tipping Point?🗽

  • Blackrock CEO Larry Fink describes crypto as "a flight to quality" under current macro conditions. It’s not the first time he has talked positively about crypto. Link

  • The SEC won't appeal Grayscale's court win, raising the likelihood of ETH approval soon.

Punchline: The tug-of-war over spot Bitcoin ETF approval continues. The odds of approval in the coming months are as high as ever, with Bloomberg and J.P. Morgan expecting an approval as early as January 10, 2024.

The Global Pivot: Everywhere but the US 🌎

  • Standard Chartered will offer bitcoin and ether custody services in Dubai by early 2024, citing regulatory uncertainty elsewhere. Link

  • Coinbase has chosen Ireland as its regulatory hub within the European Union (EU). Link

  • Last week, Coinbase, Ripple, and Sygnum got Singapore Institutional Payment licenses.

A waning giant. Binance sees over $500m in October outflows, following $840m in September. This comes amid U.S. regulatory scrutiny and potential charges against its CEO. Meanwhile, rival OKX reports $560 million in October inflows.

Zooming out: Regulatory clarity is advancing in Europe, the UAE, and Southeast Asia. Unregulated crypto players face increasing pressure. If Binance falters, Coinbase is well positioned to be the big profiteer.

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🧠 AI

  • Google is testing generative AI features for search. Link

💰 Money Moves

  • Forge: Gains $11m for gaming in Seed round led by Makers Fund.

  • Account Labs: Singapore wallet provider wins $7.7m, Amber Group leads.

  • SynFutures: Perpetual futures DEX lands $22m Series B from Pantera Capital.

  • Web3 Foundation: Launches $20m fund for Polkadot innovation in 2024.

  • Squads: Solana multisig protocol developer nabs $5.7m from Multicoin.

That’s all for now, folks. Thank you for being part of the journey. Back to building! 🚀

– Marc

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