White Star Capital Digital Assets Fund - Newsletter #146
Xbox goes crypto? A leaked Microsoft roadmap reveals plans for a Wallet
Xbox goes crypto? A leaked Microsoft roadmap reveals plans for a Wallet
White Star Capital Digital Asset Fund - newsletter #146
According to documents published as part of the FTC's case against Microsoft in its planned acquisition of developer Activision, it seems that the next-generation Xbox console ecosystem may include the integration of a cryptocurrency wallet for gamers. An internal presentation slide from Microsoft in May 2022 reveals that the next-generation Xbox console and its ecosystem will offer users various options for spending money. These options include in-game economies and a crypto wallet feature. It is still uncertain whether the wallet will be developed internally or integrated with existing crypto wallets, such as MetaMask or Coinbase Wallet.
The confidential Xbox documents were published last week in the FTC case and quickly spread across the internet. The emails and presentations were supposed to be redacted, but some were not—and the judge held Microsoft responsible for the mistake. Xbox head Phil Spencer tweeted about the unintended revelations and hinted that some plans have changed since the documents were created.
According to Microsoft documents, the next-generation Xbox console is not expected to be released until 2028. However, there are plans to launch mid-generation console updates for the Xbox Series X and Series S next year. Additionally, Microsoft believes that within five years, it can achieve this goal on a larger scale by combining home hardware with remote server support. This approach will create a more standardised hybrid model for Xbox games, utilising both local and cloud computing to enhance performance. Microsoft aims to provide a more immersive gaming experience and introduce completely new types of game experiences. The hybrid model will be designed to optimise real-time gameplay and empower creators, enabling performance levels that surpass what client hardware alone can achieve. This concept has already been showcased in games like the latest Microsoft Flight Simulator, where real-time weather data is delivered through cloud computing while the game itself runs on your local PC or Xbox hardware.
While Xbox's plans for cryptocurrency remain unclear, the console manufacturer has recently announced the introduction of Xbox-themed Mastercard credit cards. These cards enable gamers to earn points for their purchases, which can be redeemed for games or other rewards. Could these other rewards possibly include digital collectibles?
🔦 White Star & Portfolio Spotlight
Oamo's successful launch sets the stage for consumer empowerment
Oamo has recently launched with over 11,000 profiles created, nearly 52,000 credentials received, and thousands of users participating in polls and receiving offers within the first 24 hours. The platform provides an opportunity for consumers to regain control of their data and its value, while allowing companies to gain a better understanding of and engage with their target audiences, all while respecting privacy. This marks a significant shift in the data economy.
Aptos and Thala launch $1 million fund to foster new DeFi protocols
Aptos Foundation and Thala Labs have collaborated to create a $1 million fund, called the Thala Foundry, to incentivize the development of "Aptos-native" DeFi protocols, with plans to expand it to $5 million as these protocols grow. The fund will provide up to $250,000 per project, fostering the creation of over five new DeFi protocols on the Aptos L1 blockchain, while also supporting projects with advanced MVPs.
Safello enters into framework agreement with the Swedish Customs Office
Safello, the top cryptocurrency exchange in the Nordics, has been selected as the exclusive cryptocurrency service provider through a competitive procurement process involving the Swedish Police Authority, Swedish Customs Office, and Swedish Economic Crime Authority. This framework agreement, now in effect for a maximum of 4 years, solidifies Safello's role as the sole cryptocurrency service provider for the Swedish Customs Office on a national scale.
ALEX's bold ambition to reinvent Bitcoin's role in DeFi
ALEX's mission is to transform Bitcoin into a DeFi powerhouse by addressing its limitations through smart contracts, seamless integration, enhanced security, and faster transactions. This partnership with Stacks seeks to create a robust DeFi ecosystem on Bitcoin. The ALEX finance layer, coupled with the ALEX token's central role, represents a significant advancement in Bitcoin's utility in decentralized finance.
Ledn's streamlined savings approach
Ledn's redesigned savings model focuses on client control, risk management, and transparency. Clients can manage their funds through a non-interest Transaction account and an interest-earning Growth account. The ring-fenced Growth account safeguards against external risks, offers swift fund access, and enhances transparency via a dedicated client dashboard and Ledn's Open Book Report in their blog section.
Decentralized rate determination in the Atlendis Protocol
Within the Atlendis protocol's on-chain order book, lenders establish rates according to their risk tolerance, and borrowers align with interest rate ticks to secure fixed-rate loans. This decentralized rate determination provides clarity and control for borrowers, eliminating intermediaries and benefiting both lenders and borrowers simultaneously.
ParaSwap's debut on Base to improve DeFi with trading efficiency and competitive rates
ParaSwap has made its debut on Base, a significant development for users looking for improved trading efficiency and competitive rates. Base, as part of the Superchain, is known for its fast transactions and low fees, providing an ideal environment for ParaSwap to offer exceptional trading experiences. The collaboration with launch partners ensures access to the best prices, and ParaSwap's dedication to future updates and partnerships underscores its mission to advance DeFi on Base.
The Index Coop's roadmap drives DeFi innovation and enhancements
The Index Coop's product roadmap consists of four main phases: research, development, deployment, and protocol upgrades. This roadmap demonstrates the organization's dedication to innovation and experimentation in the fast-changing DeFi landscape. It focuses on continuous improvements to enhance scalability, security, and functionality.
🏦 Enterprises & Institutions
NASA plans to prove its next Moon landing is real using blockchain
NASA, partnering with Lonestar and the Isle of Man, will send data cubes to the Moon in February 2024. These cubes will contain lunar data verified using blockchain, aiming to authenticate future Moon landings, including Artemis 3 in 2025, and dispel conspiracy theories. This blockchain-backed verification system ensures an immutable lunar record.
Bahrain’s Bank ABC using JPMorgan’s Onyx blockchain for cross-border payments
Bahrain's Bank ABC is launching blockchain-based cross-border payments in collaboration with JPMorgan's Onyx Coin Systems. Initially focused on U.S. dollar transactions between Bahrain, the U.S., the U.K., Singapore, and Hong Kong, the service aims to provide faster and cost-effective cross-border commercial transactions, with plans for euro services and programmable payments in the future.
Amazon joins the AI race alongside its rivals with a $4B investment in Anthropic AI
Amazon's recent strategic investment of up to $4 billion in Anthropic, the AI company behind Claude 2, intensifies the competition in the AI field, allowing Amazon to compete with industry leaders like Microsoft, Meta, Google, and Nvidia. This investment also grants Anthropic access to Amazon Web Services' computational power, specifically Trainium and Inferentia chips, fostering collaborative advancements in AI technology.
Kraken pushes forward on expansion in Spain and Ireland with key regulatory steps
Kraken has expanded its regulatory presence in Spain and Ireland, securing a virtual asset service provider registration from Spain's central bank, allowing it to offer crypto exchange and custodial wallet services to Spanish residents. Additionally, Kraken's Irish subsidiary obtained an e-money institution (EMI) license from the Irish central bank, enabling the expansion of EUR fiat services in collaboration with local banks across Europe. These developments align with the EU's forthcoming crypto regulation, MiCa, set to take effect in 2024.
Google paves way for AI-produced content with new policy
Google has made a significant change to its content ranking system, no longer prioritizing human-written content over AI-generated content in search results. This shift raises concerns about content quality and the ability of users to differentiate between human and AI-generated articles, potentially leading to an influx of unverified and unsourced information on the internet, according to experts.
⚖️ Government & Regulation
SEC again delays decision on Ark’s Bitcoin ETF filing
The US Securities and Exchange Commission (SEC) has once again postponed its decision on Bitcoin spot ETF applications, such as Ark and GlobalX. The SEC has set a final deadline of January 10, 2024, to either approve or deny Ark's application, marking the latest delay in a series of postponements for these ETFs, potentially affecting the approval timeline for other competing firms.
Paradigm launches policy lab to shape US crypto regulation
Crypto investment firm Paradigm has launched the Paradigm Policy Lab to support innovation-friendly policymaking in the US. Led by special counsel Rodrigo Seira and policy manager Brendan Malone, the lab will conduct research, with a focus on regulatory equivalence, to guide policy decisions. Former US Senator Pat Toomey and retired congressional Democrat Steve Israel are part of the team aiming to provide technical research to improve understanding of cryptocurrency technology and regulatory frameworks, addressing the current lack of clarity in crypto policy.
Coinbase says it will decide on Europe hub in weeks amid hunt for ‘trusted’ regulator
Coinbase is in the process of choosing a European hub for its regulatory operations under new crypto laws that require firms to select one member state for market access. Criteria for this decision include trusted regulators, access to talent, and supportive government. Meanwhile, Coinbase is actively registering in EU member states to maintain its services during the transition to the new regulations.
Former White House official will lead Ripple’s policy and government arm
Former White House official Lauren Belive has joined Ripple as head of U.S. public policy and government. In this role, she will lead Ripple's engagement in Washington, D.C., and across the United States, focusing on advocating for crypto-friendly policies. Belive has a background in similar roles at Softbank Group, Zoom, and Lyft, and she emphasized the importance of supporting the crypto industry and its potential benefits.
Hollywood Writers end strike following successful agreement negotiations
Hollywood writers have concluded their five-month strike after reaching a significant agreement. The deal includes guidelines on the use of artificial intelligence (AI) in the film and TV industry, ensuring AI-generated content doesn't undermine writers' rights. It also covers residual payments for streaming shows, enhances transparency in viewership statistics, sets minimums for writers in pre-development, and permits writers to use AI tools with approval.
EU plans to develop blockchain-based ledger for managing identity and public services
A European Union official, Pearse O’Donohue, revealed plans for the EU to develop a blockchain-based ledger to aid its 450 million citizens in managing identity and public services. The initiative, led by nine nations including Belgium, will depend on industry collaboration for expertise and innovation, with the European Commission set to launch a blockchain consortium tasked with creating a digital ledger for services like digital identity and licenses.
💰 Funding & Exits
Proof of Play secures $33M in seed funding for its blockchain-based RPG
Proof of Play has raised $33 million in seed funding for its blockchain-based RPG, Pirate Nation, emphasizing player-controlled content and longevity. The game allows players to actively shape its world and plans to open-source its technology framework for creators to build on-chain games. Leading the funding round were Chris Dixon at a16z and Neil Mehta at Greenoaks, with participation from prominent investors including Naval Ravikant, Balaji Srinivasan, and Twitch founders.
Fuze secures $14M Seed funding for MENA digital asset expansion
Abu Dhabi's digital asset infrastructure provider, Fuze, has raised $14 million in a seed round led by Further Ventures in Abu Dhabi, with participation from Liberty City Ventures in the US. The funds will support Fuze's MENA expansion, tech development, and regulatory licensing as it enables banks, brokerages, and superapps to offer digital asset products effortlessly and securely through solutions like Fuze Trader and Fuze Loyalty.
Rated Labs raises $12.9M in Series A to advance Web3 infrastructure transparency
Rated Labs secured $12.888 million in a Series A round led by Archetype, with participation from seed investors Placeholder, 1confirmation, Cherry, Semantic, and new backers Robot Ventures, Chorus One, Factor, and Maelstrom. The funding will fuel Rated Labs' expansion into multiple Proof-of-Stake networks, enhance its product line, and strengthen its commitment to Ethereum and its ecosystem, with a core mission of ensuring transparency and integrity in Web3 infrastructure data for blockchain-based transactions across various industries.
Fhenix, the first confidential blockchain, raises $7M in Seed funding for Public Testnet launch
Fhenix, the world's first confidential blockchain powered by fully homomorphic encryption (FHE), has raised a $7 million seed round led by Multicoin Capital and Collider Ventures, with participation from Node Capital, Bankless, HackVC, TaneLabs, Metaplanet, Robot Ventures (led by Tarun Chitra and Robert Leshner), and others. The funds will enable the launch of the Fhenix Network on the public testnet in early 2024 and support the development of ecosystem applications.
CoinScan raises $6.3M to tackle crypto exploits and scams with analytical solutions
CoinScan, an analytics platform, has raised $6.3 million in funding to develop products that assess cryptocurrency tokens' vulnerability to scams and exploits. The company is backed by major figures such as Shalom Meckenzie, DraftKings' largest individual shareholder, Mor Weizer, CEO of Playtech, and Tectona, a digital asset trading firm listed on the Tel Aviv Stock Exchange. CoinScan aims to combat the rising issue of losses in the crypto sector, which exceeded $1 billion due to hacks, exploits, and scams by early September, according to blockchain security firm Certik.
Essential secures $5.15M Seed funding to drive intent-based blockchain infrastructure
Essential has raised $5.15 million in a seed funding round led by Maven 11, with participation from Robot Ventures, Karatage, Batu, Skip, and others. The company is focused on developing intent-based infrastructure and tooling to shift the blockchain industry from value extraction to intent satisfaction, fostering user-centric designs and preventing exploitative behavior.
On-chain leverage trading platform Avantis Labs raises $4M seed round led by Pantera Capital
Avantis Labs, a DeFi derivatives ecosystem, secures $4 million in seed funding led by Pantera Capital, with participation from Founders Fund, Galaxy, Coinbase’s Base Ecosystem Fund, and Modular Capital. The funds will advance the development of Avantis, a perpetual-trading and market-making protocol for sophisticated liquidity providers, enabling on-chain trading of real-world assets like forex and commodities without tokenization. The platform plans to launch on Base’s mainnet in Q1 2024, initially supporting bitcoin, ether, and foreign exchange pairs, enhancing DeFi derivative trading infrastructure.
Freatic raises $3.6M in a16z crypto-led round for decentralized information markets protocol
Freatic, a project in stealth mode, has secured $3.6 million in funding led by a16z crypto to develop a decentralized information markets protocol. Their goal is to use blockchain cryptography and game theory to expedite the flow of real-world information to relevant users, with support from investors such as Anagram, Archetype, Not3Lau Capital, Robot Ventures, and Arweave, as well as contributions from individuals including Stefano Bernardi, Meltem Demirors, Stephane Gosselin, Jutta Steiner, and MacLane Wilkison.
Bril Finance secures $3M in Seed funding from FalconX and expands to Sei Network
Bril Finance, a decentralized portfolio management platform utilizing algorithms and automated token deployment, raised $3 million in seed funding from FalconX, Kosmos Ventures, and the Algorand Foundation. They also launched their flagship product on the Sei Network blockchain, with plans to expand their services to institutional and retail portfolio managers, integrate with various AMMs across different blockchains, and become a leading destination for yield-seeking DeFi users.
AnchorWatch raises $3M to solidify Bitcoin custody and insurance platform
AnchorWatch, an insurer for commercial Bitcoin custody, secured $3 million in a funding round led by Ten31, with participation from Axiom BTC, Timechain, Bitcoin Opportunity Fund, and UTXO Management, among others. AnchorWatch's Trident Vault software provides a protocol-native custody solution for Bitcoin, backed by regulated insurance, aiming to offer a secure and verifiable option for enterprise use, including estate and inheritance planning.
🚀 Project Launches & Updates
Argentinian oil company to start mining crypto with gas power leftovers
Argentinian oil firm Tecpetrol plans to repurpose excess gas for cryptocurrency mining at its Los Toldos II Este facility in Argentine Patagonia, aiming to optimize gas utilization, reduce waste, and generate additional profits. This strategy aligns with a recent report suggesting that Bitcoin mining can reduce global emissions by converting wasted methane into less harmful emissions.
French telecom group invests millions in local AI industry
Iliad, the French telecom group, is investing millions of euros to boost the local AI industry. This includes creating an AI research "excellence lab" in Paris, led by Iliad chairman Xavier Niel, with a focus on making AI research accessible to the public. Iliad has also acquired a powerful cloud-native AI supercomputer, the Nvidia DGX SuperPOD, to enhance its AI capabilities, and its subsidiary Scaleway plans to offer clients access to cloud-native AI tools for international competitiveness.
Sleap.io launches world’s first Web3 hotel booking platform
Sleap.io has introduced the world's first Web3 hotel booking platform, combining decentralized technology and cryptocurrency to offer users exclusive rates and NFT booking tokens. By leveraging blockchain technology, Sleap.io reduces transaction fees and plans to introduce AI-driven personalization, aiming to redefine the travel and hospitality experience for tech-savvy users in a market projected to reach $5.8 trillion by 2027.
CIA to build its own ChatGPT-style AI bot for investigations
The CIA is planning to develop its own AI bot similar to ChatGPT for conducting investigations by analyzing public information. This tool will allow CIA analysts to improve their access to open-source intelligence and streamline the process of analyzing public data for investigative leads. Ultimately, this will enhance the agency's efficiency in processing available information.
🔥 Other Bits We're Excited About
Cricket World Cup to feature Web3 fan app as ICC taps into Near blockchain
The International Cricket Council (ICC) and the Near Foundation have partnered to create a blockchain-powered Web3 fan engagement app for the 2023 Cricket World Cup in India, aiming to engage millions of fans. The app allows fans to participate in match prediction games, earn points, and compete on leaderboards, showcasing blockchain's potential in sports and Web3 applications.
Paris Fashion Week AR kiosks turn visitors into Runway Models
Paris Fashion Week now features AR kiosks at the Sphere showroom, where attendees can virtually try on designer looks. These kiosks, a collaboration between Fabrix and DressX, allow visitors to select and customize digital outfits, snap photos, and either download them to their phones or print them as keepsakes, providing an interactive element to the event.