White Star Capital Digital Assets Fund - Newsletter #136
Hollywood Strikes: Could Web3 Fix the Broken Streaming Industry
Hollywood Strikes: Could Web3 Fix the Broken Streaming Industry
Hollywood Strikes and AI Threats to the Creative Industry
Hollywood actors went on strike this week as part of an ongoing disagreement over pay and the impact of artificial intelligence within the film and streaming industries. Two major unions representing actors and writers, the Writers Guild of America West (WGA) and the Screen Actors Guild-American Federation of TV and Radio Artists (SAG- AFRA) , have been unable to broker an agreement regarding inflation-adjusted contracts, residual payments in the streaming era, and protective measures against AI replicating their work. Could blockchain technology provide some solution?
This week, the 20,000 members of the WGA and 160,000 members of SAG-AFTRA expressed their mounting concern around the possible use of AI in character development, production and script writing. The key issues include the compensation offered and the protections that would be put in place.
The music industry is also grappling with the impact of AI. Recently, an anonymous TikToker used AI to create a duet featuring Drake and The Weeknd, an early demonstration of the potential of AI in content generation. Universal Music Group, a major record label representing artists such as Drake and The Weeknd, has expressed disapproval of AI-generated music that uses musicians' work without permission. The company cautioned that stakeholders in the music ecosystem must decide whether to side with ‘artists, fans, and human creative expression,’ or ‘deep fakes, fraud, and denying artists their due compensation.’
Blockchains and their verifiable ledger system may provide an interesting solution. Early start-ups have emerged proposing systems such as using public key cryptography, in which creators sign their content using their public key and stake their reputation on its authenticity. At scale, this could form a tamper-proof identity registry, solidifying verifiable digital ownership and IP.
Even without the threat of AI, the streaming industry presents an increasingly difficult landscape for artists. Spotify, for example, pays artists one-third of a cent for each stream, resulting in only 0.1% of musicians earning a living wage from their art. One symptom of this broken system is the noticeable trend of shortening song lengths, driven by streaming platforms' pay-per-play operating model which is more suitable to encouraging listeners to replay tracks more frequently and marginally increase the artists' earnings.
These challenging conditions have led new musicians to explore alternatives to traditional music platforms. Many are seeking alternate income sources, some even turning to blockchain-based royalties.
Sound.xyz, a Web3 music platform, recently raised $20 million in funding led by Andreessen Horowitz. It aims to solve the issue of broken economics in streaming platforms by empowering every musician to release new songs to the world's biggest community of music collectors, sell directly to fans, and unlock new revenue streams. This innovative approach allows them to set their own prices and receive instant payments, rather than have prices set by third party hosting services who themselves take a large fee.
The strikes in Hollywood are just the beginning, and the debate around compensation and protection of artistic integrity in the generation of AI is not going anywhere. The industry is nascent, but the potential of blockchain and public key cryptography offers an innovative potential alternative route to a fairer creative industry.
🔦 White Star & Portfolio Spotlight
Thala unveils upgrade with enhanced DeFi features
Thala is set to launch Thala V2 with new features like a Peg Stability Module, CDP incentives, flashloans, veTHL for governance, tokenomics revamp, Parliament governance platform, batch auctions, and improved Real World Asset products. These updates aim to enhance user experience and expand Thala's capabilities in DeFi.
The Liquality SDK enables user-friendly web3 gaming with WavGAME
The Liquality SDK empowered the development of wavGAME, a user-friendly web3 music collection game. By seamlessly integrating wallets, enabling gasless transactions, facilitating NFT minting and metadata retrieval, and allowing credit card payments for NFT purchases, wavGAME became accessible and enjoyable for new web3 users.
Multis collaborates with Powens to enhance financial management
Multis has partnered with Powens to provide a unified tool for managing finances. This integration enables Multis customers to access transaction data from both their crypto wallets and bank accounts, simplifying financial management for European companies that hold both cryptocurrency and fiat assets.
Index Coop unveils comprehensive report on protocols, trends, and opportunities
Index Coop's annual report, 'The State Of The Onchain Structured Product Market,' explores the leading protocols and product types driving high Total Value Locked (TVL). It offers valuable insights into the market's history, current landscape, and discusses key challenges, opportunities, and trends affecting builders.
🏦 Enterprises & Institutions
South Korea's Shinhan Bank tests stablecoin payments on Hedera network
Shinhan Bank of South Korea completed a successful test of stablecoin remittance payments on the Hedera network. The pilot aimed to address cross-border payment challenges such as high fees, long settlement times, and lack of tracking, demonstrating the potential of stablecoins for faster, cheaper, and more accessible international transfers.
BlackRock missed opportunity to disrupt Visa and Mastercard, Amboss CEO says
BlackRock's failure to utilize the Lightning Network and earn non-custodial yield with its proposed spot Bitcoin ETF resulted in a missed opportunity to disrupt payment processors like Visa and Mastercard, according to Amboss CEO Jesse Shrader. By deploying funds on the Lightning Network and offering payments infrastructure, BlackRock could have harnessed the disruptive power of Bitcoin and posed a challenge to traditional payment processors.
Meta goes all in on AI: Can it compete with Google, ChatGPT and MidJourney?
Meta is making significant strides in the generative AI industry with the unveiling of its CM3leon text-to-image model and the rumored release of a commercial version of LLaMA. These advancements have the potential to reshape the field and position Meta as a strong competitor against industry giants like Google, Microsoft, and OpenAI.
Jay-Z’s Roc Nation and Puma drop NFT-enhanced sneakers
Puma and Roc Nation have joined forces to launch the RS-XL Mixtape sneaker collection, celebrating the legacy of mixtapes and incorporating NFTs. Each pair of sneakers features an NFC chip that, when scanned, unlocks exclusive digital content and is linked to an NFT created by Legitimate. The collaboration offers a unique fusion of fashion, music, and blockchain technology.
⚖️ Government & Regulation
SEC accepts Valkyrie Bitcoin ETF proposal for official review
The U.S. Securities and Exchange Commission (SEC) has recently approved Valkyrie's application for a spot Bitcoin exchange-traded fund (ETF), closely following BlackRock's acceptance the previous week. In a clever nod to the meme culture surrounding the cryptocurrency market, Valkyrie has selected the ticker symbol 'BRRR' for its ETF, alluding to the onomatopoeic representation of the sound of money being printed.
G20 welcomes stricter rules on crypto and explores potential of Central Bank Digital Currencies
The G20, led by India's Finance Minister Nirmala Sitharaman, welcomed the FSB's recommendations on crypto assets and stablecoins, calling for stricter rules on asset safeguarding and conflicts of interest. They also acknowledged the potential of central bank digital currencies (CBDCs) to facilitate cross-border transactions and payments, highlighting the need for further exploration.
SEC Chair Gensler 'disappointed' in Ripple Court ruling on retail XRP sales
SEC Chair Gary Gensler expressed disappointment with a judge's ruling in the ongoing Ripple case, hinting at a potential legal appeal. While programmatic sales of XRP to public buyers were deemed not to be unregistered securities, Gensler acknowledged the ruling's recognition of institutional sales of XRP as unregistered securities.
Coinbase CEO Brian Armstrong to hold meeting with House Democrats
Coinbase CEO Brian Armstrong will hold a closed-door meeting with House Democrats to discuss digital-asset legislation, regulatory clarity for crypto exchanges, and other related issues. This meeting takes place as Coinbase confronts an SEC lawsuit and seeks guidance on regulatory matters.
Congressman says Americans could be the 'losers' in the AI 'social experiment'
US Congressman Adam Schiff joined striking members of SAG-AFTRA and called for the regulation of artificial intelligence (AI), stating that the entertainment industry serves as a starting point for addressing AI's impact. Schiff highlighted the need to protect workers in various sectors, as AI's influence expands beyond entertainment to areas like driverless vehicles.
💰 Funding & Exits
Futureverse raises $54M Series A to scale Metaverse infrastructure and integrate AI
Futureverse has raised $54 million in a Series A funding round led by 10T Holdings, with participation from Ripple. Futureverse enables the creation and interaction of interoperable metaverse content and applications using its AI tools. The funding will fuel the development of the Futureverse Platform, The Root Network, and their integration with the XRP Ledger through the Ripple partnership.
Binance Labs commits $15 Million into Xterio ecosystem to expand its game development capabilities in AI and Web3
Binance Labs has invested $15 million in Xterio, a prominent Web3 game platform, to fuel game development, AI integration, and token launch. Xterio aims to bridge free-to-play and on-chain gaming, leveraging the funding to accelerate their technological advancements and create a diverse suite of cross-platform games.
Artela raises over $6 million in Seed funding to fuel innovation in extensible blockchain network for decentralized applications
Artela, a blockchain network, has raised over $6 million in a seed round led by Shima Capital, with participation from A&T Capital, SevenX Ventures, Dispersion Capital, Amino Capital, and others. Their mission is to expand the capabilities of decentralized applications by building a base-layer blockchain network with modular native extensions, enabling faster innovations in Web3.
Ethena raises $6 million Seed funding to develop Ethereum-backed Stablecoin USDe
Ethena, a startup developing Ethereum-backed stablecoins, has raised $6 million in a seed funding round led by Dragonfly Capital. Ethena aims to create USDe, a stablecoin, following the collapse of the Terra ecosystem, and plans to ensure its stability through collateral provided by users and the creation of a savings bond using staked ETH and swap margins.
KTX.Finance raises $4M to democratize perpetuals trading
KTX.Finance, a decentralized perpetuals exchange on BNB Chain, has raised $4 million in a seed funding round led by Hashed, with participation from AlphaLab Capital, CRIT Ventures, 100&100 Ventures, and more. The platform offers multi-asset shared pool liquidity, enabling traders to trade against the KLP pool with full asset custody, low fees, and a superior user experience.
AI customer support firm AwesomeQA closes $2.8 Million Seed round with Coinbase Ventures involved
AwesomeQA, an AI customer support firm, has raised $2.8 million in a seed round led by North Island Ventures, with participation from Coinbase Ventures and Uniswap Labs Ventures. The funding will be used to scale the team and enhance their custom trained AI models, as AwesomeQA automates user question responses for over 60 web3 companies. They aim to become an operating system for communities, offering businesses a seamless platform to build, support, and grow communities with AI assistance.
Ion Protocol raises $2 mlillion in Pre-Seed funding to revolutionize DeFi and enable trustless underwriting of staked assets
Ion Protocol has successfully raised an oversubscribed $2 million in a pre-seed funding round, led by Portal Ventures and SevenX Ventures. The funding will be used to advance Ion Protocol's mission of revolutionizing decentralized finance (DeFi) through the development of a lending platform that supports staked and re-staked assets, ensuring trustless underwriting of slashable security in Proof-of-Stake (PoS) consensus networks.
Aark Digital secures Seed funding to revolutionize Perpetual DEX Market
Aark Digital has closed its seed round, led by Delphi Digital, with participation from OKX Ventures, Big Brain Holdings, and Keyrock. The funding will accelerate Aark Digital's mission to disrupt the Perpetual DEX market and introduce innovative features that create synergies across DeFi.
🚀 Project Launches & Updates
Elon Musk aims for unbiased AI with new xAI Venture
Elon Musk, the dogecoin-loving tech mogul and AI regulation advocate, is launching xAI, a venture focused on transparent and uncensored AI models. This ambitious endeavor aims to redefine the AI landscape by prioritizing truthfulness, but its ultimate impact remains uncertain—will it bring enlightenment or unintended consequences?
Uniswap unveils UniswapX to eliminate DeFi pain points
Uniswap has launched UniswapX, a new blockchain protocol that tackles issues in on-chain trading and self-custody swapping. UniswapX offers better prices through liquidity source aggregation, gas-free swapping, protection against maximal extractable value (MEV), and zero costs for failed transactions.
Gucci's iconic fashion is reimagined in Christie's NFT Art auction
Gucci, the renowned luxury fashion brand, has teamed up with Christie's auction house for an extraordinary event called "Future Frequencies, Explorations in Generative Art and Fashion." This groundbreaking sale presents a collection of 21 artwork NFTs that employ artificial intelligence and generative techniques to reimagine iconic Gucci design elements. The auction challenges traditional perceptions of technology and showcases the talent of esteemed artists who draw inspiration from the world of fashion, combining digital and physical elements in their captivating creations.
🔥 Other Bits We're Excited About
BlackRock's Larry Fink says crypto will transcend any one currency
BlackRock CEO Larry Fink reiterated his support for cryptocurrency, emphasizing its international appeal and its ability to transcend traditional currencies. He also discussed BlackRock's commitment to democratizing investing in the crypto space, including their pursuit of a spot bitcoin ETF and their focus on ensuring safety and security for investors.
AI could bring ‘the biggest bubble of all time’
Emad Mostaque, CEO of Stability AI, predicts a major bubble in the rapidly expanding AI industry, comparable to the dot-com bubble of the late 90s. With excessive hype inflating stock prices, the AI market's projected value of $15.7 trillion by 2030 may even surpass the volatility of the crypto market.
Super Bowl MVP Patrick Mahomes launching new NFT collection
Kansas City Chiefs quarterback Patrick Mahomes is expanding his Museum of Mahomes NFT brand with a new drop of collectibles inspired by his NFL career. The "Museum of Mahomes II" collection will feature 15,000 NFTs tied to real-world perks like physical trading cards and autographed memorabilia. The network and pricing details for the NFTs are yet to be revealed.