India removes its Blockchain Council 🤯
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India’s crypto advocacy group is out ⚰️
GOI’s anti-crypto stance reached new heights on Thursday after the Internet and Mobile Association of India (IAMAI) shut down the country’s only crypto advocacy body — the Blockchain and Crypto Assets Council (BACC).
Formed in 2017, BACC was a union leader for all local crypto exchanges to deal with the RBI and other government bodies for all blockchain-related issues regarding taxation, regulation and policies. Top exchanges like — CoinDCX, WazirX and CoinSwitch were a part of it, under which they had formed a standard code of conduct.
Now with the body’s shutdown, these exchanges are left vulnerable and forced to deal with the government independently. As you all know, India is already not too keen on the idea of cryptocurrencies, with the RBI governor, Mr Shaktikanta Das, even calling them a ‘danger”. A shutdown, especially amidst the ongoing “crypto winter”, is bad news.
Why care — The future of crypto exchanges in India is uncertain, and this move by the IAMAI reiterates it loud. Couple that with the government’s criminally high 30% crypto tax, and suddenly Web3 feels stagnant here despite an abundance of talent and projects.
The giants fall together 🤦♂️
Remember, weeks ago; we told you that crypto hedge fund 3AC (Three Arrows Capital) has gone insolvent. Well, it didn’t go down alone. Crypto lender Voyager Digital joined it thanks to 3AC’s failure to return a $670 million loan.
Now for those new here — 3AC was one of the most prominent crypto hedge funds at its peak, with $10 billion in assets under management. It started struggling after the collapse of the TerraUSD, in which it had invested about $560 million.
While owing to the current crypto market crash, the company could not return the massive loans it had taken back from lenders and hence went into liquidation. And to top it off, its founders, Zhu Su and Kyle Davies have now disappeared from the public domain, which has spooked investors and global regulators about the viability of crypto projects.
As for Voyager, the company has filed for Chapter 11 Bankruptcy, meaning it is still trying to figure out a way back.
Bottomline — The crypto ecosystem is still nascent, and every company is kind of related to each other. So the collapse of one major player can badly impact all others. The overall market cap fell below $1 Trillion for the first time since January, making this one of the worst periods for the whole community.
Animoca Brands doubles down on P2E gaming 💰
Blockchain game maker and investor Animoca Brands closed a $75 million funding round from Liberty City Ventures, 10T and other existing investors — doubling valuation to $5.5 billion in less than 3 months despite the ongoing “crypto winter”.
Based in Hong Kong, Animoca started as a smartphone game developer in 2014 before pivoting to blockchain gaming four years later. Since then has gone on to back over 340 Web3 projects, including top NFT marketplace OpenSea and Dapper Labs. It is also the maker of the famous metaverse gaming platform, The Sandbox.
Animoca will use the funds raised in this round to back more blockchain gaming companies and acquisitions.
Why care — A $75 million funding when major crypto companies are going bankrupt is impressive. At the same time, it indicates VC’s willingness to back good Web3 companies regardless of the macroeconomic conditions.
Crypto Bytes ₿
Playboy (yep, you read that right) is the latest company to join the Metaverse as it launches the virtual version of its iconic PlayBoy mansion on Sandbox.
After over ten years, music sharing platform Limewire’s music has relaunched as an NFT marketplace.
NFT platform OpenSea has laid off 20% of its workforce.
Anthony Pompliano — Twitter’s Bitcoin guy, raised $12.6 million for his crypto recruitment firm, Inflection Points.
GameStop’s NFT marketplace made sales worth $3.5 million within two days of launch — more than Coinbase, which launched its NFT platform in May.
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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.