Non-Fungible Thursdays: What Happened in NFTs This Week? [May 26, 2022]
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Non-Fungible Thursdays: What Happened in NFTs This Week? [May 26, 2022]

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6 months ago

CoinMarketCap and Nansen look at the most exciting events in the NFT space — from the first case of a court ruling to block the sale a Bored Ape NFT, to eBay's first NFT collection.

Non-Fungible Thursdays: What Happened in NFTs This Week? [May 26, 2022]

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In a rather interesting case involving NFT collateral, a Singaporean court has stopped the sale of a highly-priced Bored Ape following a disagreement between the lender and borrower. And while eBay has launched its first official NFT collection, another entrepreneur is hoping to raise $13M for charitable causes via the issuance of digital collectibles.

Here’s a rundown of some top non-fungible token (NFT) news over the past week.

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OpenSea Unveils New NFT Marketplace ‘Seaport’

Leading NFT marketplace OpenSea has continued to roll out new products in a bid to retain its dominance as the largest platform for digital collectibles in the world. The latest in its arsenal is a new NFT marketplace that will offer innovative ways for users to buy and sell digital collectibles, including the option to pay for items with different assets, rather than just crypto.

OpenSea explained in a blog post that Seaport will take a different approach to NFT trades. Notably, while most NFT platforms facilitate trades by allowing one party to provide the NFT and the other the payment token, Seaport will allow transactions in other tokens, including “ETH / ERC20 / ERC721 / ERC1155 items.”

Traders will be allowed to specify the criteria they want when selling or buying an NFT. Furthermore, tipping will also be possible, as long as it does not exceed the original NFT offer.

“As adoption grows and developers create new evolving use-cases, we are all responsible for keeping each other safe,” OpenSea said, clarifying that the core smart contract of the platform is open-source and decentralized “with no contract owner, upgradeability, or other special privileges.”

Speaking of open-source, a security audit was conducted by OpenZeppelin during the early stages of the development of Seaport. Trail of Bits conducted another audit near the completion of the current deployment. As per the announcement, both companies claimed there were no major vulnerabilities at the time. Meanwhile, OpenSea has kicked off a two-week audit contest with code4rena with a $1 Million prize pool.

OpenSea’s announcement of the new protocol was met with mixed feelings from the NFT community. While some pointed out that the 0x v4 protocol already offers a similar value proposition with its NFT swaps, others expressed confusion about what the company was trying to achieve. One user tweeted:
“I’m [not gonna lie]... I couldn't even understand what this does. Is it basically just an opensource marketplace that kind of enables bartering and/or more customization through community development?”
Amid growing competition from other NFT marketplaces, OpenSea has been forced to take some extra steps to retain its top spot, including enabling support for Solana NFTs and acquiring Ethereum-based NFT aggregator, Gem.

Manchester City Taps on NFTs To Celebrate the Club’s Iconic Moments

Manchester City has teamed up with Animoca Brands’ Quidd marketplaces for an NFT collection.

Over the past week, the premier football club launched a collection of four sets of NFTs in collaboration with Quidd, a subsidiary of the well-known Animoca Brands.

“The caliber and history of the club drove the desire to create something fans and collectors have never seen before, something that was just as interactive as what it means to be a City fan,” said Sam Barberie, VP of Content at Quidd.

Quidd has grown to become a leading NFT marketplace on the Wax Blockchain, having already worked with household names like Disney and HBO. The platform is home to collectibles from over 325 brands and boasts eight million collectors worldwide.

The Manchester City collection, which went live on May 20, features a limited set of Signature cards and the first-ever series of fully interactive sports cards with the club. According to the Quidd marketplace:

“The collaboration features four drops starting on May 20th and extending through the end of the season. Fans will discover not only the 3D player cards – a first in sports collecting – but also sets that highlight major moments in the club’s recent history, with archival details found when spinning the card around to its back.”

Singapore High Court Block Sale of Bored Ape Yacht Club #2162

Cryptocurrencies and digital collectibles may not particularly be legal in many countries. However, we are beginning to see an interplay between the sector and many traditional institutions. Interestingly, a case involving an NFT loan has landed in a Singaporean court.

A Singaporean citizen who owns a Bored Ape used his NFT as collateral to obtain a loan on the NFTfi platform. According to the court filing seen and reported by Bloomberg, the collector opted to use his Bored Ape because “its rarity and high value” could get him a larger loan.

The NFT is question is BAYC #2162. The said piece stands out from others in the 10,000 units collection as the “only one wearing a beanie and has a jovial expression.” It is also one of the original apes since it was yet to be infused with mutant serum.

In mid-April, the Singaporean man used BAYC #2162 to collect a loan from an anonymous lender known as “chefpierre.eth.” According to the filing, the borrower obtained the loan, which included a short repayment period. And after the claimant failed to repay the loan on the maturity date, the lender took ownership of the NFT.

Looking at the trade history of the NFT on Nansen, we see that the initial owner of BAYC #2162 used NFTfi to initiate the loan process to chefpierre.eth. Chefpierre.eth has since interacted with BendDAO (another lending protocol) using the NFT.

Now, the borrower is claiming “unjust enrichment” on the part of the lender, noting that the BAYC NFT is “one of the claimant’s most treasured possessions, and is irreplaceable to him.”

Following his argument, the Singaporean court has stopped the sale of the NFT until the squabble surrounding its ownership is resolved.

“It is the first decision in a commercial dispute where NFTs are recognized as valuable property worth protecting,” said Shaun Leong, lead counsel for the case and equity partner of Withersworldwide. “So more than merely strings of numbers and codes imprinted on a blockchain, the implication is that NFT is a digital asset and people who invest in it have rights that can be protected.”

The case could set a legal precedent in the NFT space since it is the first case involving a dispute in NFT ownership. For once, the proceedings show that the law recognizes NFTs as a form of property. Chris Holland, a partner at Singapore advisory firm Holland & Marie, explained:

“Having courts acknowledge a person’s potential ownership rights in an NFT is a positive for the industry […] It’s also a reminder to NFT buyers to be vigilant about the rights and control they give to third parties over an NFT. For example, it appears that the borrower does not know the ‘in real life’ identity of the lender. That creates a significant complexity for the borrower’s legal proceedings.”

Hackers Hijack Beeple’s Twitter Account in NFT Phishing Scam

Over the weekend, the Twitter account of Beeple was temporarily compromised leading to the loss of more than $70,000 in crypto.

The account of the digital artist was hijacked and used to share a phishing link that stole the cryptos of users when clicked. Harry Denley, a security expert at cryptocurrency wallet MetaMask, noted that a malicious website pretending to be a “raffle” of Beeple’s Louis Vuitton collaboration was shared on the artist’s Twitter account. Upon clicking the link, one Ethereum was automatically drained from the wallets of unsuspecting victims.
Denley noted over $50,000 had been stolen from users and the hackers were still using Beeple’s Twitter account for another, more “sophisticated” scam. As of press time, the wallet address associated with the theft had been wiped clean, suggesting that the attacker had either moved his loot to another account or simply cashed out.

Beeple later regained control of his account, admonishing people to “stay safe out there, anything too good to be true IS A FUCKING SCAM.”

Beeple, whose real name is Mike Winkelmann, became popular in March 2021 after his NFT artwork sold for $69.3 million at Christie's auction house. He was one of those who helped propel NFTs into the mainstream.

E-commerce Site EBay Launches First NFT collection

A year after enabling NFT sales on its platform, e-commerce giant eBay is finally going all out to embrace the NFT mania. The company has teamed up with the green NFT marketplace OneOf to launch its first-ever NFT collection.

Titled “Genesis,” the NFT collection showcases animated 3D renditions of iconic athletes featured in Sports Illustrated over the years. The first drop from the collection is already live and features hockey legend, Wayne Gretzky.

61-year-old Gretzky played 20 seasons in the NHL for about three decades, winning four Stanley Cups, and is considered one of the greatest players of all time.

There are 13 different types of collectibles of varying tiers in the Gretzky drop, ranging from $10 to $1,500. Some of the pieces also contain the athlete’s digitized autograph.

“Forty years ago, I was grateful to be on the cover of Sports Illustrated, it was a monumental moment in my life,” Gretzky said in a statement. “I'm honored to bring this collectible experience to my hockey fans who have followed my career for decades.”

Commenting on the $10 price tag, eBay said that each piece is “priced for the everyday fan.” It added:

“Through our partnership with OneOf, eBay is now making coveted NFTs more accessible to a new generation of collectors everywhere. This builds upon our commitment to deliver high passion, high-value items to the eBay community of buyers and sellers.”

Devon Henry Launches NFT Collection To Raise $13M for Social Causes

Many individuals and groups have turned to NFTs as a way to raise funds for different projects and efforts. For instance, boxing legend Klitschko released some digital collectibles to support Ukraine’s war efforts a few months ago. Seasoned entrepreneur Devon Henry is one of the latest to turn to NFTs for a good cause.
Henry, who etched his name on the sand of time as the black man who meticulously and safely removed over 23 Confederate statues across the former Confederate South, is back with a charitable CryptoFederacy project that highlights 13-star causes and changemakers via the 13 Stars NFT Collection.
The NFT project is scheduled to drop on June 19, 2022, at www.CryptoFederacy.com, coinciding with the 157th anniversary of Juneteenth, a Federal U.S. Holiday that commemorates the emancipation of enslaved Americans. It depicts the thirteen stars on the Confederate flag.

Henry hopes to raise $1 million for 13 different charitable causes through the sales of the 13 inaugural digital collectibles. Each piece represents a digital moment in history that commemorates the dismantling of the monuments. Further down the road, there are plans to release a 10,000-piece CrazyStats NFT collection as the project grows.

Meanwhile, Henry and the CryptoFederacy team are putting finishing touches to partnerships with several established nonprofits and planning launch events in New York. Attendees will be able to interact with the team, meet the artist behind the work, explore physical pieces of the dismantled confederate statues, and view framed photographs of behind-the-scenes moments from the statue removal process.

NFT-500 Index Trading Sideways the Past Week

Looking at Nansen’s NFT-500 index, we see that the broader NFT markets have been trending sideways the past week. The top 10 collections are in the red, with VeeFriends being the only collection that’s up.
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