Meta recovery day – After several intense weeks where all eyes were on you‘The FTX case and in the earthquake caused by Sam Bankman-Fried, calm seems to be gradually returning to our beautiful ecosystem, not without leaving some open wounds. Many projects and users have lost funding. Entire treasures remained stuck in the hands of the fallen crypto platform. In this slump of collapsed projects, where is the NFT market?
Spoiler: let’s face it, the sector looks gray. Considering the size of Bankruptcy of FTX, there will be no question of drawing up a list of missing persons. Rather it will be a matter of observation to what extent the NFT sector is perhaps surprisingly one of the least affected by this unprecedented crisis.
As the polar age we are going through drags on, the timid news of the world of non-exchangeable tokens recent weeks show a glimmer of hope. Some even go so far as to say that NFTs, backed by the metaverse, will be worth billions of dollars within a few years.
In order not to get lost in Meta-Hebdo:
NFTs in the eye of the FTX storm
Web 3’s reputation has been tarnished by the FTX disaster
In conquering the world, FTX had several angles of attack. Beyond luring the American body politic with millions of dollars – especially the Democratic Party – FTX had also set out to conquer the sports sector. It was even one of her spearheads across the Atlantic.
It is through the development of numerous partnerships, such as the one with city - pro bitcoin – from Miami in which SBF wanted to relocate the premises of FTX.US, which FTX decided to invade the United States. Many sports organizations then found themselves in trouble with the collapse of the Sam Bankman-Fried empire. The NBA’s Miami Heat, Major League Baseball, Golden State Warriors, Washington Wizards, Washington Capitals are all sports clubs that have seen their reputations damaged.
For example, for partnership with the Miami Heats 135 million dollars was put on the table. The local stadium, renamed FTX, had its letters removed now as bright red as the markets. Club website – ftxarena.com – however, still bears traces of this past arrangement.
“The reports about FTX and its affiliates are extremely disappointing. Miami-Dade County and the Miami Heat are taking immediate action to end our business relationship with FTX and we will work together to find a new naming rights partner for the arena. (…)»
A few shakeups in the NFT ecosystem
Beyond Coachella NFT sold on FTX and now lost in the metaverse, Sam Bankman-Fried’s empire has reached several tenors of the NFT ecosystem. The network woven by the two companies Alameda Research and FTX Ventures has thus kept the funds of many crypto players in its nets.
The presence of some big names in this list is appealing. Yuga Laboratories for example, the parent company of NFT Bored Ape Yacht Club or Sky Mavis and Axie Infinity hatched by the Asian giant Animoca brands. However, most of the actors mentioned seem to be little affected by this situation, or at least not as much as some ecosystems. Of course, games from the Solana and/or FTX ecosystem like Star Atlas or even Aurory bit the dust with the fall of the Sam Bankman-Fried empire. However, the sector remains resilient and withstands the blow by finding its interest in decentralization.
Yat Siu, CEO of Animoca Brands, speaks
Of course not directly displayed on the wall of crashed projects of our colleagues from The Block, the company Animoca Brands supports many NFT and metaverse projects and investors. We mentioned Sky Mavis for example, but it is also part of Temasek an investment fund in Singapore.
IN open letter with name ” See the future through the lens of the past The web giant 3 has tried its hand at exercising transparency by confirming its hegemony in this sector:
“Our exposure to FTX is limited to an insignificant trading balance and we continue to invest and support the ecosystem, most recently with Cool Cats, VCORE, Viker and a number of yet-to-be-announced investments. Animoca Brands remains financially strong with a cash balance of approximately $214 million, digital assets of $940 million with an additional $3 billion in off-balance sheet digital reserves, and a portfolio of approximately 380 companies representing the world’s top Web3 and blockchain companies . worldwide (OpenSea, Dapper Labs, Sky Mavis, The Sandbox and Upland to name a few) which represent significant added value to the group’s balance sheet (as of 1 November 2022)”
In addition, the business manager continues to recall the importance of working towards decentralization, not hiding his concern about the FTX situation:
” (…) I am upset that the important work of making the Web decentralized, freed from central power structures that continue to abuse their disproportionate power, is once again overshadowed by a very small number of actors irresponsible. (…)”
Finally, even if Yat Siu knows the difficulties and that the companies in his group will certainly have problems during this period, the entrepreneur advises to see ” the future through the prism of the past “. We will do this too.
And, if we look more closely, the weather is certainly gray, however, the NFT sector did not admit defeat during this ordeal.
DeFi and Gaming: a resilient sector
The news of the past few days, in fact, has been able to show us that NFTs continue to take over the world. Microsoft, The web 2 giant confirmed this month its interest in video games, especially those related to web 3. The giant has invested in Wemade, a game creation company that has launched its own blockchain, participating in a fundraising round with other companies of South Korea. 46 million dollars are harvested.
For more,the rise of GameFiillustrated by Dappradar analysis shows that blockchain games and metaverse projects have increased in the last quarter 1.3 billion dollars. That figure is certainly down 48%, however, it’s heating up in the middle of a bear market.
Finally, while the FTX was living through dark days, Sony continued to prepare the web 3 ground for its flagship console: playstation filing a new patent on the topic of NFTs.
NFT, dear sports brands
Despite the crisis, NFTs continue to develop. The sports world has not been disappointed by the FTX carnage. Messi even has signed with Sorare to promote the game of fantasy football. He thus becomes a Sorare ambassador. In the same dynamic of development, Sorare, a French unicorn, in the footage of the AMF, has found a provisional agreement there arewith French regulations pending legislation adapted to so-called web 3 games.
On another front, but still with the stars of the round ball, the NFTs of first NFT collection of Ronaldo on Binance have gone up for sale. Finally, for your style, rest assured, Nike is thinking of you and launching one the community platform at Polygonthus continuing a methodical invasion of web 3 and its players.
Don’t panic about NFTs: the metaverse is still worth billions of dollars
So after weeks of bad news, some upbeat talk deserves our attention. According to this news report Deloitte, metaverses and NFTs could bring in some parts of the world as much as $1.4 trillion by 2035. Hopefully the bear market won’t last that long.
The 12 Asian economies studied by Deloitte are: Hong Kong, India, Indonesia, Japan, mainland China, Pakistan, Philippines, Singapore, South Korea, Taiwan, Thailand and Vietnam. Closely related to the use of NFT, the use of a parallel world dependent on our reality seems, according to the analyst, already in the habits of our loved ones and would be in the future, one of the sectors that will have the best growth: Market world could reach 13,000 billion dollars by 2030.
“We estimate that the impact of the metaverse on GDP in Asia could be between $0.8 trillion and $1.4 trillion per year by 2035, or roughly 1.3-2.4% of overall GDP. per year by 2035.”
So, as we’ve said so often in recent days, caution is still in order. Even if NFT Bored Ape still sells for $1 million, look at the market as a whole and consider that many NFT collections have lost over 90 percent of their value. The crypto winter weighed down by the Terra and FTX episodes promises to be harsh and long. However, as we mentioned, the NFT sector does not seem to have had its last words. We were even able, “through the prism of past days” to find what – a little – it warms our hearts.
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