White Star Capital Digital Asset Fund - newsletter #31
Christie's first digital art auction with Beeple fetches $69.3m, BTC crosses $61k, and BlockFi and Bitpanda become latest members of the crypto unicorn club!
Beeple NFT artwork sells for $69m as BTC reaches new highs
Blockchains changed the game for digital art, and the legacy art world is taking notice! “Everydays — The First 5000 Days”, the NFT artwork by Beeple that was recently auctioned by Christie’s, sold for $69.3m, making it the third-highest price paid at auction for work by a living artist after Jeff Koons’s “Rabbit,” which took in $91.1 million in 2019, and David Hockney’s “Portrait of an Artist (Pool with Two Figures),” purchased for $90.2 million in 2018. Not to be left behind, Sotheby’s has also announced its first sale of NFT-based digital art from anonymous artist Pak.
With an increasing amount of licensed content coming onchain, a segment where NBA Top Shot and SoRare are currently leading the charge, and Tier 1 artists flocking to NFTs - the likes of Beeple, Mike Shinoda, RAC, Grimes, Disclosure, and many more - there is no doubt that NFTs are here to stay.
In crypto capital markets, Bitcoin’s price continues to set record highs, crossing $61k for the first time on March 13th. While the cryptocurrency has become a household name only in the recent years since its birth in 2008, it is a result of 40 years of research aimed at addressing a fundamental need in our financial systems. Take a look at the Bitcoin prehistory as visualized below, to truly appreciate the innovations that have laid the foundation for the first cryptocurrency.
In other news, BlockFi and Bitpanda joined the crypto unicorn club, while M&A and public listing activity in the space continues to accelerate, signaling the maturation of the crypto ecosystem across the value chain.
I. Enterprises & Institutions
Citi sees bitcoin at ‘tipping point’ as institutions continue to come on board
In a recent report, Citi Bank described bitcoin as blockchain's “North Star” and suggested that bitcoin could "become the currency of choice for international trade".
Fidelity's director of global macro sees bitcoin as 'worth considering for inclusion in a portfolio'
Jurrien Timmer, the director of global macro at Fidelity Investments, has said in a note titled "Understanding Bitcoin" that bitcoin could be seen as a form of "digital gold" and could offer protection against inflation.
Goldman Sachs is relaunching their crypto desk
Goldman Sachs has relaunched its cryptocurrency trading desk after a three-year hiatus and plans to once again support bitcoin futures trading. The service is expected to resume by mid-March.
Goldman Digital Asset lead see mergers in crypto infrastructure space
Matt McDermott, global head of digital assets for Goldman Sachs Global Markets Division, hinted in a recent talk that “incumbent banks” such as Goldman could face pressure to increase their crypto business lines, with M&A being a likely path.
40% of Goldman Sachs’ clients already have exposure to crypto
Matt McDermott, global head of digital assets for Goldman Sachs' global markets division, has said that 40% of Goldman Sachs’ investors currently have exposure to crypto, citing an internal survey of nearly 300 clients.
JPMorgan reportedly looking for a crypto clearinghouse
Banking giant JPMorgan is reportedly exploring bitcoin and cryptocurrency clearinghouse options, looking for a middleman to sit between OTC desks and traders to guarantee the enforcement of a trade and create liquidity in the market.
JPMorgan to launch ‘crypto exposure basket’ of bitcoin proxy stocks
JPMorgan is launching Cryptocurrency Exposure Basket, a debt instrument that is long on 11 bitcoin proxy stocks including MicroStrategy (20%), Square (18%), Riot Blockchain (15%), and chipmaker NVIDIA (15%).
JPMorgan tells clients that bitcoin can be a portfolio diversifier
JPMorgan Private Bank has distributed an educational deck to its private wealth clients telling them that bitcoin can be a portfolio diversifier “if sized correctly”.
JPMorgan posts 34 blockchain jobs as it beefs up JPM coin
JPMorgan Chase has posted 34 blockchain job positions across the U.S., India, and Singapore. Many of the jobs are related to Onyx, the division that was created in October 2020 to oversee JPM coin, the bank’s wholesale payments token.
Ubisoft announces Fantasy Football Experience with Sorare cards
Ubisoft is partnering with Sorare to launch “One-Shot League”, a free-to-play 5-a-side fantasy football game centered around the Jupiler Pro League Sorare cards.
Amazon’s managed blockchain service now supports ethereum
AWS has added support for ethereum, which will allow users to set up Ethereum nodes and join the public Ethereum mainnet on the Amazon Managed Blockchain.
PayPal is now enabling fiat to crypto onramps for exchange FTX
Customers of the cryptocurrency derivatives platform FTX will now have the option to use PayPal to top up their trading accounts, as the payment giants continue to expand their crypto service portfolio.
Aon is testing DeFi insurance products
Aon, the world’s second-largest insurance intermediary, is working on a pilot with Nayms, an insurtech platform, that allows cryptocurrency holders to provide decentralized insurance cover against losses due to hacks or buggy software.
French utility giant EDF joins Hedera to pursue carbon neutrality
French utility giant Électricité de France (EDF) has joined the Hedera Governing Council as a node operator and will use the technology as part of its aim to achieve carbon neutrality by 2050.
PayPal CEO reveals plans for a new crypto unit
PayPal CEO Dan Schulman has recently said that the company's crypto forays will expand beyond the current "buy, sell, hold" strategy. PayPal is also moving towards creating a "super app", which reflects rapid changes in the fintech industry.
South Korea’s Shinhan Bank builds CBDC pilot platform
Shinhan Bank has built a pilot platform for a potential South Korean central bank digital currency (CBDC) with assistance from LG CNS in preparation for the issuance of a CBDC by the Bank of Korea (BOK).
Norway-listed Aker to put 100% BTC in treasury reserves of new unit
Oslo stock exchange-listed Aker ASA, the holding company focused on energy, construction, and fishing, has set up a new company dedicated to investing in bitcoin projects and companies. It also plans to enter the bitcoin mining industry soon.
Charles Schwab exploring white-label solutions for crypto brokerage
Charles Schwab is looking at the possibility of launching a white-label crypto brokerage by leveraging the tech of a crypto-native partner.
Bloomberg adds price data for 6 new cryptocurrencies
Bloomberg is now providing information for six more cryptocurrencies - orchid (OXT), omg network (OMG), eos, chainlink (LINK), tezos (XTZ), and stellar (XLM). The data will come from CF Benchmarks, a Kraken subsidiary.
Ant Group leads global 2020 list of blockchain patent holders
Ant Group led the 2020 list of blockchain patents, adding 586 patents to reach 2,298 blockchain patents. Ping An Group and Tencent were second and third on the list, respectively.
Our overall takeaway
Wall Street giants are no longer watching the crypto space from the sidelines, with JPMorgan and Goldman Sachs leading the charge with (re)launch of different services. PayPal’s crypto roadmap shows that its recent foray is just the starting point as it plans to double down on its move into the space.
II. Government & Regulation
Biden nominee to lead SEC tells Congress that cryptocurrencies ‘have been a catalyst for change’
Gary Gensler, the former CFTC chairman nominated to lead President Biden's Securities and Exchange Commission (SEC), said that cryptocurrencies “have been a catalyst for change” while answering a question in US Congress.
NY to pilot IBM’s Blockchain-Based COVID-19 app
New York Gov. Andrew Cuomo has announced a pilot program to test IBM’s blockchain-based digital health app for proving COVID-19 vaccination and test results. The app, named Excelsior Pass, will be tested at Barclays Center and Madison Square Garden in New York City.
Blockchain gets first mention in China’s 5-year policy plan
China’s 14th five-year plan, which outlines the country’s economic priorities, mentioned blockchain technology for the first time ever. The plan was approved on March 11 by lawmakers and advisers at the end of an annual political meeting.
ICE crypto venture Bakkt awarded BitLicense by New York regulators
Bakkt, the crypto venture founded by Intercontinental Exchange (ICE), has received virtual currency and money transmission licenses from NY's finance industry regulator.
NIST to continue blockchain payments tracking project
The National Institute of Standards and Technology (NIST) plans to continue its multi-departmental research project with Treasury and Defense Departments that is focused on using blockchain tech to track grant payments.
Lawmaker signs petition calling for France's central bank to buy bitcoin
Jean-Michel Mis, a member of the National Assembly, has signed on to a new petition calling for the French government to allow the country's central bank to buy bitcoin.
BitGo gets NYDFS approval for New York trust charter
Digital asset financial services firm BitGo has received approval from the New York Department of Financial Services (NYDFS) for a New York trust charter. It plans to hold crypto funds in the state and offer custody solutions to NY-based financial firms.
Our overall takeaway
China’s inclusion of blockchain in its official 5-year plan and Gary Gensler’s recent remarks show that governments across the world are moving on from pilots and integrating blockchain into their future plans.
III. Funding & Exits
Crypto lender BlockFi raises $350m at a $3bn valuation
Crypto lender BlockFi has raised $350m in Series D funding round co-led by Bain Capital Ventures, valuing the company at $3bn.
Bitpanda raises $170m in Series B funding at $1.2bn valuation
Bitpanda, a digital investment platform, has closed a Series B funding round for $170m, valuing the company at $1.2bn. Valar Ventures and Peter Thiel led the round.
TaxBit raises $100m Series A
Cryptocurrency tax automation firm TaxBit has raised $100m in a Series A funding round led by crypto investment fund Paradigm and Tiger Global.
Mining operation Compass announces $1.7m fundraise led by Galaxy Digital
Compass, a mining firm looking to democratize exposure to the highly technical underbelly of the crypto market, has raised $1.7m in a venture funding round led by Galaxy Digital.
ZK-rollup scaling project Matter Labs announces Series A led by Union Square Ventures
Matter Labs, which first released its zero-knowledge rollup (ZK-rollup) product in December 2019, has raised an undisclosed sum in a Series A round led by Union Square Ventures.
Sovryn raises $10m via token sale
Sovryn, a bitcoin-based decentralized finance (DeFi) protocol for trading and lending, has raised $10m in a token sale, bringing its total funding to date to $16m.
Canada’s CoinSmart crypto exchange raises $3.5m for European expansion
Canada-based cryptocurrency exchange CoinSmart, which is owned by Simply Digital Technologies, has raised CAD$4.5m (~US$3.5m) in seed funding round to help expand its operations in Europe.
Chiliz raises $50m to expand in US
Blockchain sports venture Chiliz has raised $50m as it plans to expand in the US by setting up an office in New York and working with local leagues and sports franchises.
Derivatives DEX Kine raises $7m in a round led by Alex Pack, Naval Ravikant
The team behind Kine Protocol has raised $7m in a funding round led by Alex Pack and Naval Ravikant to launch a derivatives-focused decentralized exchange on Ethereum.
Polkadot-based decentralized insurance project Tidal Finance raises $1.8m in token round
Tidal Finance, the yet-to-launch Polkadot-based decentralized insurance protocol, has raised $1.8m in a private token sale round. Hypersphere Ventures, Spartan Capital, Kenetic Capital, and QCP Capital participated in the round.
Unchained Capital closes $5.5m in a round led by NYDIG
Bitcoin financial services firm Unchained Capital has raised $5.5m in a seed funding round led by NYDIG, with Ecliptic Capital, Starting Line, and Platform Ventures also participating in the round, among others.
BCB Group raises $4.5m to snag more regulatory licenses
BCB Group, a UK-based crypto trading firm, and business banking challenger, has raised $4.5m in a funding round co-led by North Island Ventures and Blockchain.com Ventures as it aims to snag more regulatory licenses.
Bitcoin mining firm Northern Data plans US listing to raise $500m
Bitcoin mining firm Northern Data, which owns the world’s largest cryptocurrency mining facility in Rockdale, Texas, is reportedly in talks with Credit Suisse to list in the US in order to raise up to $500m.
Kraken rumored to be raising new funding at over $10bn valuation
Crypto exchange-operator Kraken is reportedly seeking to raise capital at a valuation of over $10bn. It is said to be in talks with firms including Fidelity, Tribe Capital, and General Atlantic to raise the funds.
Yield Guild Games raises $1.3m in venture funding
Yield Guild Games (YGG), the decentralized autonomous organization (DAO) which focuses on NFTs that intersect with the gaming space, has raised $1.3m from investors including Delphi Digital, Scalar Capital, and BlockTower Capital, among others.
Illuvium closes $5m seed funding round
Illuvium, a decentralized, NFT collection and auto battler game built on the Ethereum network, has raised $5m in seed funding round led by Framework Ventures.
Sommelier Finance raises $3.5m in seed funding
Sommelier Finance, which aims to help DeFi investors avoid impermanent loss, has raised $3.5m in seed funding round led that was joined by Standard Crypto, Multicoin Capital, and Alameda Research.
Blockchain project LazyLedger raises $1.5m in seed funding
Blockchain project LazyLedger, which aims to develop a 'pluggable consensus layer' for decentralized projects, has raised $1.5m in seed funding from a host of investors including Interchain Foundation, Binance Labs, KR1, and several other participants.
NFT platform Curio raises $1.2m in seed funding
Curio, which allows brands and content owners to create digital fan experiences and collectibles, has raised $1.2m in a seed funding round led by Future Perfect Ventures, with participation from A195 Capital and LongHash Ventures, among others.
FalconX raises $50m in new funding
Institutional cryptocurrency trading startup FalconX has raised $50m in a funding round co-led by B Capital Group, valuing the firm at $675m.
Rewards-focused startup Eco raises $26m in new funding round
Eco, a cryptocurrency platform that offers up to 5% rewards on crypto asset savings and spending, has raised $26m in a funding round led by a16z Crypto. Founders Fund, Activant Capital and Coinbase Ventures also participated in the round, among others.
Reef Finance raises $20m from Alameda Research
Reef Finance, the Polkadot-based DeFi platform, has raised $20m from Reef Finance. Alameda will purchase $20m worth of the firm’s native tokens, REEF.
DeFi lending protocol Alchemix raises $4.9m in funding
Alchemix, a DeFi lending protocol whose loans automatically repay themselves via deposits into other yield-bearing protocols, has raised $4.9m from 10 investors including CMS Holdings and Alameda Research.
Nextmarkets raises $30m in Series B funding
Nextmarkets, the neo-broker headquartered in Cologne, Germany, has raised $30m in Series B funding round led by Malta-based crypto and blockchain investment group Cryptology Asset Group.
Komainu raises $25m in Series A funding
Digital asset custodian Komainu has closed a $25m Series A fundraise led by billionaire hedge fund manager Alan Howard. Galaxy Digital, NOIA Capital, and Nomura Research Institute also joined the round.
Fei Labs raises $19m in new funding round
Fei Labs, a project focusing on building a more capital-efficient decentralized stablecoin, has raised $19m from a host of investors including a16z, Framework Ventures, Coinbase Ventures and AngelList founder Naval Ravikant, among others.
River Financial raises $12m in Series A funding
Bitcoin brokerage River Financial has raised $12m in Series A financing round led by Goldcrest Capital, with participation from Polychain Capital, Craft Ventures, M13, Castle Island and The Kraft Group.
MobileCoin raises $11.35m in Series A funding
Crypto payments project MobileCoin, which is advised by Signal creator Moxie Marlinspike, has raised $11.35m in Series A funding round was backed by Future Ventures and General Catalyst.
Soros and Morgan Stanley join NYDIG’s $200m investment round
Crypto financial services firm NYDIG has raised $200m from a cadre of big-name investors including Stone Ridge Holdings Group, Morgan Stanley, New York Life, MassMutual, Soros Fund Management, and FS Investments, among others.
Fetch.ai raises $5m in institutional investment
Blockchain machine-learning platform Fetch.ai has raised $5m from the GDA Group, a Toronto-based digital asset firm.
Unslashed Finance raises $2m for crypto insurance platform
Unslashed Finance, a decentralized insurance protocol built on Ethereum, has raised $2m for its tokenized insurance product. The funding round was led by Lemniscap and P2P Capital, among others.
Crypto market maker Efficient Frontier raises $2m
Alameda Research has invested $2m in Tel-Aviv-based Efficient Frontier, which claims to process nearly $10bn in volume monthly across 50 crypto exchanges.
StakeWise raises $2m ahead of mainnet launch
StakeWise, an ETH 2.0 staking protocol, has completed a $2m private funding round ahead of its mainnet launch. The round was led by Greenfield One, with participation from Collider Ventures, Gumi Cryptos, and Lionschain Capital, among others.
Crypto exchange aggregator OpenOcean raises $2m in funding
Crypto exchange aggregator OpenOcean has raised $2m in a funding round led by Binance, the world’s biggest cryptocurrency exchange by trading volume. Multicoin Capital, CMS, and Kenetic also participated in the round, among others.
Start9 Labs raises $1.2m in funding
Start9 Labs, which is working on a project to make self-sovereign computing viable for consumers, has raised $1.2m in a funding round spearheaded by Collider Ventures, Ten31, and Erik Voorhees.
Saffron Finance raises funding in a round led by Dragonfly Capital
Saffron, which enables investors to choose the levels of risk they want to take on when lending cryptocurrency in the decentralized finance (DeFi) industry, has reportedly raised over $2m in a funding round led by Dragonfly Capital, with participation from Multicoin Capital and Coinbase Ventures, among others.
CP Group-backed Velo merges with Stellar startup Interstellar
Velo Labs, a cross-border settlement protocol backed by Thai conglomerate CP Group, has acquired Interstellar, a payment startup that runs on the Stellar network, for an undisclosed amount.
Keep and NuCypher unite in first-ever decentralized project merger
Two encryption projects, Keep and NuCypher, both running on the Ethereum blockchain, are uniting to create the world’s largest threshold cryptography network.
PayPal acquires crypto custody firm Curv
PayPal has acquired Israel-based Curv, a provider of cloud-based infrastructure for digital asset security. PayPal plans to use the acquisition to “accelerate and expand its initiatives to support cryptocurrencies and digital assets”
eToro looking to go public via SPAC merger
Trading platform eToro is reportedly looking to go public via a merger with a special purpose acquisition company (SPAC), that could value the firm at $10bn.
a16z betting on NFTs with OpenSea and prime brokerage with Talos
a16z is rumored to be leading investment rounds in NFT marketplace OpenSea and trading tech firm Talos as it doubles down on the NFT ecosystem.
Bitfury unit to merge with SPAC at $2bn valuation
Cipher Mining Technologies, a subsidiary of bitcoin mining hardware manufacturer, Bitfury, is merging with Good Works special purpose acquisition vehicle to go public at $2bn valuation.
Brave acquires Tailcat to create private search engine to compete with Google
Privacy-oriented browser Brave has acquired open search engine Tailcat. The move will form the cornerstone of the forthcoming product Brave Search, which Brave is promoting as a non-tracking alternative to Google Search on Chrome and mobile.
CoinShares begins trading on Nasdaq in Sweden
CoinShares, Europe’s largest crypto asset manager, went public through a listing on the Nasdaq First North Growth Market in Sweden on March 11.
Our overall takeaway
While quality projects at the early stage continue to attract funding from established VC investors, both generalist and blockchain-specific, the recent uptick in acquisitions and SPAC mergers show that the ecosystem is maturing across the value chain.
IV. Project Launches & Updates
Kraken launches venture fund to invest in crypto and fintech startups
Crypto exchange Kraken has launched a venture fund, Kraken Ventures, to invest in early-stage startups across verticals that include blockchain, crypto, decentralized finance (DeFi), and fintech.
Atari to develop a crypto casino in Ethereum-based virtual world
Atari, the gaming company behind the iconic Pacman, Asteroids, and Pong, will develop a cryptocurrency casino in “Vegas City,” a gaming district in Ethereum-based Decentraland‘s metaverse. The casino will be leased on an initial two-year term.
Polygon Partners with StreamingFast for blockchain data streaming
Polygon, the protocol, and framework for building and connecting Ethereum-compatible blockchain networks, is launching a blockchain data streaming service for historical and real-time data in partnership with StreamingFast, a product by our portfolio company dfuse.
Our overall takeaway
Crypto exchange Kraken has become the latest industry strategic to launch its own fund to accelerate the development of the crypto ecosystem.
V. Other Bits We're Excited About
Beeple artwork sells for $69m in auction at Christie’s
A cryptocurrency investor based in Singapore called Metakovan has bought Beeple’s digital collage artwork “Everydays: The First 5000 Days” for $69m at an auction.
February DEX volumes hit new high of nearly $73bn
DEX volumes continue to shatter its previous record as February volumes reached $73bn, with Uniswap accounting for almost half of it.
There are now 106m cryptocurrency users globally
According to a report by Crypto.com, cryptocurrencies are now used by more than 106m people worldwide. The report also suggests that new adopters have helped the price stay high during Bitcoin's most recent rally.
Sotheby’s to auction its first NFT art piece
Sotheby’s is following suit as it plans to hold a sale of NFT-based digital art from anonymous artist Pak. Charles Stewart, CEO of Sotheby’s, said about NFTs in a recent interview that "There's a lot here that's really exciting and, we think, has staying power".
Kings of Leon are releasing an album as an NFT
Popular rock band Kings of Leon is set to become the first band to release an album as a non-fungible token (NFT). The album titled "When You See Yourself" will be released along with three types of tokens. The first type will be a special album package, the second will offer holders perks such as front-row tickets for life, and the third will be for "audiovisual art."
Banksy artwork burned, to be digitized as NFT
“Morons”, a piece by famous street artist Banksy, was physically burned in Brooklyn, N.Y. so that it can be sold as an NFT. The artwork is now listed on the Ethereum-based OpenSea marketplace.
NBA Top Shot sees meteoric rise as collectors pay big money for a slice of blockchain basketball action
NBA Top Shot, which allows collectors to buy and sell moments from each other on the secondary market, has recorded over $300m in sales since its launch in October 2020, with $250m coming in the last 30 days.
DC Comics reportedly looking at NFT market
Comics publisher DC Comics is reportedly exploring a foray into the marketplace for non-fungible tokens, based on a recent letter issued by DC Comics' legal affairs office.
Our overall takeaway
In the first-ever NFT auction by a major auction house, Beeple sold his artwork for $69m! Record DEX volumes, NBA Top Shot sales, and crypto users are a testament to the phenomenal growth the space is witnessing. And DC Comics collectibles might be coming soon, so be on the lookout!