CFTC sues Binance, Ticketmaster launches NFT-gated services, MicroStrategy buys more Bitcoin, Gucci + Yugalabs
Fomo Fix Weekly RoundUp #25
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CFTC sues Binance
Last week Monday, the Commodity Futures Trading Commission (CFTC) filed a complaint against Binance, accusing the company of offering cryptocurrency derivatives, including futures and options contracts, with leverage to US customers without being registered as a futures commodity merchant. Despite not having an official headquarters in the US, Binance is required to follow US law if it serves American customers.
The complaint also named Binance's CEO, Changpeng Zhao, and former Chief Compliance Officer, Samuel Lim, as responsible for much of the misconduct. The CFTC is seeking disgorgement of profits, civil monetary penalties, registration bans, and a permanent injunction against further violations.
In response to the complaint, Zhao stated in a blog post that the complaint was based on an incomplete recitation of facts, and that he disagreed with many of the allegations. He also pointed out that Binance has been working with the CFTC for more than two years, blocks US users, and maintains high anti-money laundering and customer-identity standards. Zhao called the complaint "unexpected and disappointing" and said that Binance's full response to the allegations will be made in due time.
According to Warren, the outcome of the case will depend on Binance's response, but a settlement is a likely possibility. The CFTC's action is seen as a positive step in preventing individuals from taking advantage of the lack of regulatory clarity in the US crypto space.
Ticketmaster launches NFT-gated services
Ticketmaster announced on March 27 that it has launched a new NFT-based ticketing service, and heavy metal band Avenged Sevenfold (A7X) is the first to test it. Ticketmaster's NFT capabilities now allow artists to offer token-gated ticket sales, where tickets can only be accessed with a specific NFT. A7X had previously sold an NFT collection called "Deathbats Club," which granted access to purchasing tickets before they were made available to the general public. Working with Bitflips, A7X collaborated with Ticketmaster to develop and launch the token-gated service to provide their fan community with exclusive access to tickets for upcoming shows.
David Marcus, Ticketmaster's EVP of Global Music, explained that the new service enables artists to offer special access and rewards to their most loyal fans. He added that artists like A7X are using NFTs and Web3 to build stronger relationships with their fans, and Ticketmaster is proud to help facilitate that connection through live events.
Ticketmaster has expressed interest in NFT technology for some time and disclosed in August that it was working with the Flow blockchain. The token-gated sale service is one of several tech solutions that artists can use to distribute tickets to their fans. Ticketmaster also noted that its token-gated sales are compatible with Ethereum and can be used with Web3 wallets like Metamask and Coinbase.
MicroStrategy buys more Bitcoin
Nasdaq-listed Microstrategy Inc. (Nasdaq: MSTR) announced last week Monday that it has acquired 6,455 more bitcoins. CEO Michael Saylor tweeted:
MicroStrategy has prepaid the remaining $205 million principal on its loan from Silvergate Bank, which the company took out last March. The software company, which is known for its pro-crypto stance and holds a large amount of bitcoin, also disclosed that it recently purchased an additional 6,455 bitcoins for roughly $150 million. With this acquisition, MicroStrategy now holds 138,955 bitcoins purchased at an average price of $29,817 each, worth roughly $3.88 billion at current bitcoin prices. Additionally, the company has raised $339.4 million this year through share sales, which it used to pay back the loan from Silvergate.
Gucci + Yugalabs
Last week Monday, Gucci and Yuga Labs, the company responsible for the Bored Ape Yacht Collection, revealed their collaboration. Gucci tweeted about their joint effort to explore the Metaverse, expressing excitement over a new narrative that would dissolve the lines between the physical and digital worlds. While the specifics of the partnership have not been disclosed, Business of Fashion reported that the two entities have entered a multi-year agreement. Gucci will design clothing for Yuga Labs’ metaverse initiative, the Otherside.
“We are excited to unveil this multifaceted partnership with Yuga Labs, a leader and creative pioneer in web3. This will give us an active role in Otherside and 10KTF’s continuing narrative, unfolding in multiple forms.”
— Robert Triefus, Senior executive VP, corporate and brand strategy, and chief executive of Gucci Vault & Metaverse Ventures.
Gucci has been active in the Metaverse, having already teamed up with 10KTF, a digital fashion startup that Yuga Labs acquired last year. In partnership with the fashion giant, 10KTF produced Gucci-themed digital clothing that could be superimposed onto the avatars of owners of specific NFT collections.
More News
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Disney Eliminates Its Metaverse Division as Part of Company’s Layoffs Plan.
F1 Team Adds Crypto Sponsor in Kraken After FTX, Tezos Exits.
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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.