Welcome to GM, BFF, a newsletter hitting your inbox biweekly with key insights from Web3, crypto, our community and beyond. Subscribe here.
Well, BFFs, it’s been a month — and it’s only halfway over. The U.S. Securities and Exchange Commission (SEC) has sucked the oxygen out of the proverbial room with back-to-back lawsuits targeting Coinbase and Binance, two major centralized crypto exchanges. The suits follow months of intensified scrutiny of cryptocurrency exchanges from politicians and pundits seeking to spur the dialogue around investor protection.
Coinbase, a prominent exchange known for its user-friendly interface, is facing a lawsuit filed by the SEC alleging its staking program qualifies as a security. Similarly, Binance, the world’s largest crypto exchange, is being sued for at least 13 alleged charges relating to securities violations, market manipulation and mismanagement of funds. In both cases, the SEC identifies a handful of specific altcoins as securities (though critics argue the callout seems arbitrary). The outcomes could have far-reaching implications for the decentralized finance (DeFi) services offered by other platforms.
(Side note: If you’re looking for a complete breakdown of the cases by three top-notch regulation and policy experts, we highly recommend you listen to SheFi’s latest Twitter Space discussing the SEC’s actions.)
Meanwhile, despite the regulatory hurdles, we’ve noticed undying enthusiasm among brands in Web3, with new revenue streams emerging from non-fungible token (NFT) projects who’ve found fun ways to pivot and collaborate.
Here’s one example: toys! An integral part of multimedia and entertainment franchises in the traditional Web2 world, toys are a natural expansion of intellectual property (IP) for both child and adult audiences alike. In the last eight months, three NFT brands — VeeFriends, Boss Beauties and Pudgy Penguins — have entered the toy market in various formats. Read all about their moves in BFF contributor Liya Dashinka’s latest piece.
Last, we must mention the recent groundbreaking sale of Dimitri Cherniak's artwork at Sotheby's, which was sold for a staggering $6.2 million. This remarkable sale highlights the value and demand for NFTs in the art world. However, while some artists achieve astronomical sales, the distribution of these massive profits is not equally spread among all NFT artists. It’s an issue that NFTuesday LA co-founder and artist Mieke Marple touched on along with ALLSHIPS founder and crypto artist Dave Krugman during our latest Twitter Space on generative art. (Listen to the recording here — you don’t want to miss it!)
Crypto detective faces defamation lawsuit. The NFT trader known as MachiBigBrother (aka Jeffrey Huang) sued independent blockchain detective ZachXBT after the on-chain sleuth alleged Huang embezzled millions in crypto.
BlackRock optimism. The fund manager announced it filed paperwork for a spot bitcoin ETF, sparking joy amid a particularly tough market.
Decentralized social gets $15 million in funding. Lens, the protocol behind a futuristic ‘people-powered’ user-owned social layer, closed a major funding round led by over 30 VCs, angel investors and DAOs. A week later, it opened up to governance proposals from the public.
Walmart x Web3. Store No8, Walmart’s incubation arm, and Web3 investor Outlier Ventures, announced the launch of a new accelerator program to help Web3 startups to deliver global retail and e-commerce solutions. Applications close July 31.
🏳️🌈 SAVE THE DATE! 🏳️⚧️ Pride Month continues.
Riley and Paff are hosting a special 12-hour Web3 Pride Telethon showcasing many talented speakers, artists and entertainers in the Web3 space. Mark your calendars for June 27 from 8am to 8pm ET!
Keep an eye on their tweets (linked above) for more details.
Journey Co-Founder & Chief Metaverse Officer Cathy Hackl spoke with Gary Vee about the future of marketing.
Eventbrite CEO Julia Hartz appeared on CNBC to discuss consumer spending.
Union Square Ventures Managing Partner Rebecca Kaden and Lux Capital General Partner Deena Shakir discussed new views on venture capital with Bloomberg.
PopSugar Founder Lisa Sugar spoke to Business Insider about raising a $33 million fund to invest in retail tech.
Megan DeMatteo is BFF's Editorial Partner.
Thanks for reading! We’d love to hear from you. Feel free to let us know what you think of this newsletter and what you’d like to see from it in the future by emailing hello@mybff.com.
🚨 This newsletter and all the information in it does not constitute financial advice. If you don’t want to invest money or time in Web3, you don’t have to. As always: Do your own research.
