Clean Up in "Isle 4"

Hi. It’s Dana. Welcome to the Web 2.5 newsletter featuring news, content, musings, and memes at the intersection of Web 2.0 and Web 3.0. Here’s this week’s round up of everything you need to know in Web 2.5. Because just as HUGO said, “The digital world is waiting and we’re diving into Web3.”

📰 The Top 5 Stories of the Week

#1: Apple

Apple has entered the web3 group chat. The company announced this week that it will be allowing developers to sell in-app NFTs via the App Store. Two big caveats to the news: 1) NFT sales would be subject to Apple’s standard fee structure — 30% for developers who earn more than $1 million, and 15% from those who earn less. And 2) crypto will not yet be accepted as a payment method for these in-app purchases.

Why it matters? In a world where we often try to classify news as either “good” or “bad,” this is yet another example of “both.” Some are thrilled by the scale that in-app NFT sales will bring, opening up the world of digital goods to millions of users. Others balked that the arrangement was too “web2” given Apple’s “grotesquely overpriced” fees. As a benchmark, NFT marketplaces like OpenSea, Magic Eden, and Rarible take a 2.0-2.5% commission. The same double-sided coin is true on the payment side, with USD payments helping to drive adoption — but web3 purists feeling disappointed that there wouldn’t be a crypto payment method. Turns out nothing is as easy as Apple (pie).

#2: Walmart

Walmart announced that it is entering the metaverse with two Roblox experiences, Walmart Land and Walmart Universe of Play. Per TechCrunch, in Walmart Land, “Roblox players will enter a colorful amusement park with a Walmart-themed Ferris wheel, slides, beaches and more. The island is shaped like the Walmart logo with a circle-shaped center and six branches with different themes and activities.”

Walmart’s Universe of Play, which is targeted at younger players, “features the popular kids’ TV series “PAW Patrol” and toys like L.O.L Surprise!, Magic Mixies, “Jurassic World” dino eggs and Razor scooters. Universe of Play will also have a blimp, just like the one in Walmart Land.”

Both experiences are live on Roblox now, so play away here: Walmart Land, Walmart Universe of Play.

While it’s the first foray for the retailer into the metaverse, Walmart has already been experimenting with other digital innovations including shoppable livestreams, shared recipes, and augmented reality-powered tools.

Why it matters? Walmart teaming up with the metaverse industry leader Roblox is another example of a brand borrowing credibility (and an audience) from leading platforms vs. going at it alone. It will also be fascinating to watch how categories get prioritized and cross-merchandised in these virtual spaces where no single category owns the activation and where technically “aisle space” (or as Walmart is calling it, Isles) is unlimited.

#3: Chipotle

We’re seeing a trend of web2 brands jumping into web3 in the most web3 of ways… a Twitter thread. Chipotle got in the game this week announcing a 99.95% off promotion on a new Garlic Guajillo Steak if you pay with ETH.

Why it matters? This is a big deal to see a promotion amount based on something as techy as the % of energy consumption saved from the Ethereum merge. Plus, to see the news announced via a techy Twitter thread on the brand’s consumer Twitter account is another example that web3 is clearly making its way mainstream.

#4: Mastercard

Mastercard and fiat exchange hi have partnered to launch a debit card that can be customized with your NFT avatar. Users across more than 25 European countries will be eligible for the card, which can be used at any merchant in the world that accepts Mastercard payments.

Why it matters? In this bear market, the more people who can get utility out of past NFT purchases (vs being asked to pay up for new one), the better.

#5: Christie’s

Christie’s announced that it is launching an “on-chain auction platform dedicated to exceptional NFT art.” Named Christie’s 3.0, the platform helps collectors discover and bid on exclusive NFT art drops, all curated by Christie’s.

Why it matters? This will be a a great case study in how curated vs open marketplaces perform over time for NFTs in web3. Most volume today takes place on the “Amazon” of marketplaces, OpenSea, where “inventory” is deep and wide. Platforms like Christies 3.0 take a more curated approach to help with discovery, but lack the same scale. Only time will tell what consumers prefer.

🏃 Other News

The CFTC sued the blockchain company bZeroX, its founders, and Ooki DAO, accusing them of illegally selling commodities and futures. While crypto companies have attempted to avoid legal liability by forming DAOs, the CFTC makes it clear that that it won’t allow companies to avoid the law with claims of decentralization.

Funko and Warner Brothers partnered to launch the “Brave and the Bold” DC Comics collectibles. Buyers will receive a corresponding NFT with each figurine.

SuperPlastic displayed their “Super Bored” figurines at their NYC store in anticipation of their November shipment. The toy maker partnered with Bored Ape Yacht Club to create these highly exclusive figurines.

Nasdaq launched “Nasdaq Digital Assets” with ambitions to facilitate more institutional participation and accessibility in the space. A big piece of the announcement was a cryptocurrency custody service where the company will hold BTC and ETH for their US-based institutional clients.

Robinhood partnered with Polygon to launch a beta Web3 wallet.

☀️ Everything is Fine

Someone Just Paid $4.5M for a CryptoPunks Ethereum NFT Despite Bear Market. Decrypt.

Toss in Your Job and Make $300K Working for a DAO? Here’s How. Cointelegraph.

Tyler Hobbs' Fidenza NFT Project Gets $1M Pump Over 48 hours. CoinDesk.

Marriott’s web3 Strategy Explained: ‘It’s About Amplifying v Replacing.’ The Drum.

UNICEF Giga NFTs to Connect Schools in Developing Countries to Internet. Cointelegraph.

NFTs Will Spawn the Next Marvel or Disney, Says Solana Founder. Decrypt.

Kevin O’Leary to Launch Web3 Fund, Becomes UAE citizen. Yahoo.

Ethereum Merge Shows Crypto Is 'Getting Its Act Together': Eric Schmidt. Decrypt.

🙅 Everything is Not Fine

Web3 upends IP. Politico.

CEO of Bankrupt Crypto Lender Celsius Alex Mashinsky Resigns. Decrypt.

Blockchain Firm Sues Coinbase for $350M Alleging Patent Infringement. Cointelegraph.

Interpol Slaps Terra Co-founder Do Kwon With Red Notice: Report. Decrypt.

NFT Sales Have Lost Nearly All Their Allure. Gizmodo.

NFT Trading Volume Plunges 98% from January Despite Rise in Adoption. Cointelegraph.

💸 But You Can Still Raise $$$

Bitcoin Payments Company Strike Raises $80 Million in Series B Round. Decrypt.

Microsoft Leads $20M Strategic Round in Web3 Data Warehouse Space and Time. Decrypt.

Tactic’s $11M Raise Shows Even When Cryptocurrencies are Down, Companies Still Need to Count ‘Em Up. TechCrunch.

NFT Video Platform Glass Raises $5M, led by TCG, 1kx. Axios.

Steve Cohen-backed firm invests $10M in web3 game marketplace AQUA. Coindesk.

An ‘iPhone Launch Moment for Web3’? Coral Raises $20M from FTX Ventures and Jump Crypto to build Backpack. Fortune.

💼 Web 2.5 Jobs of the Week

Principal Counsel - Corporate Transactions, Emerging Technologies & NFTs, The Walt Disney Company. Apply. This one got picked up far and wide in the press. Decrypt. Coindesk.

Head of Marketing, Doodles. Apply.

Web3 Futurist, Stand Together. Apply.

Quote of the Week

🕯️ And Finally

Thank goodness we won’t have to drive to Appleton, Wisconsin (or Oshkosh or Green Bay) in the metaverse.

And that’s a wrap! See you out there in the interweb3s.

DISCLAIMER: This newsletter is strictly educational. None of this is financial or investment advice — and not a solicitation to buy or sell any assets or to make any financial decisions. Please always Christian DYOR (Do Your Own Research).