Fall of FTX and crypto winter: have NFTs said their last word? The Meta Hebdo

Meta recovery day – After several intense weeks where all eyes were onFTX case and on the earthquake caused by Sam Bankman-Fried, calm seems to be gradually returning to our beautiful ecosystem, not without leaving a few open wounds. Many projects and users have lost money. Whole treasuries got stuck in the hands of the fallen crypto platform. Where is the NFT market in this collapse of collapsed projects?

Spoiler: let’s face it, the industry looks gray. Given the size of the Bankruptcy FTX, it will not be about drawing up the list of missing persons. It will rather be a matter of observing to what extent the NFT sector is perhaps surprisingly one of the least affected by this unprecedented crisis.

As the polar age we live through continues, timid news comes from the world of non-fungible tokens shows a glimmer of hope in recent weeks. Some even go so far as to say that NFTs backed by the metaverse will be worth billions of dollars in a few years.

In order not to get lost in the Meta-Hebdo:

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NFTs in the eye of the storm FTX

Web 3’s reputation scratched by the FTX disaster

In its conquest of the world, FTX had several angles of attack. Past tempting the American political body with millions of dollarsespecially the Democratic Party – FTX also had the ambition to conquer the sports sector. It was even one of the spearheads across the Atlantic.

It is through the development of numerous partnerships, such as the one with the city – pro bitcoin – from Miami in which SBF wanted to move the premises of FTX.US, whereupon FTX decided to conquer the United States. Many sports organizations then ran into trouble with the collapse of Sam Bankman-Fried’s empire. The NBA’s Miami Heat, Major League Baseball, the Golden State Warriors, the Washington Wizards, the Washington Capitals are all sports clubs that have tarnished their reputations.

For example, for the collaboration with the Miami Heats $135 million was placed on the table. The local stadium, renamed FTX, had its lettering removed, now as scarlet as the markets. The club website – ftxarena.com – however, still bears the marks of this bygone agreement.

Miami Heat NBA Release – Source – Twitter

“Reports on FTX and its affiliates are extremely disappointing. Miami-Dade County and the Miami Heat are taking immediate action to terminate our business relationship with FTX, and we will work together to find a new naming partner for the arena. (…)»

Some shocks in the NFT ecosystem

Past Coachella NFTs sold on FTX and now lost in the metaverse, Sam Bankman-Fried’s realm has reached some tenors of the NFT ecosystem. The web woven by the two companies Alameda Research and FTX Ventures has thus kept the funds of many crypto players in its nets.

Ecosystem Alameda Research / FTX Ventures – Source: The Block

The presence of certain big names in this list is evoking. Yuga Labs for example the parent company of NFT Bored Ape Yacht Club or Sky Mavis and Axie Infinity hatched by the Asian giant Animoca Brands. However, most of the actors mentioned seem to be little affected by this situation, or at least not as much as certain ecosystems. Sure, games from the Solana and/or FTX ecosystem like Star Atlas or even Aurory have bit the dust with the collapse of the Sam Bankman-Fried empire. Nevertheless, the sector remains resilient and withstands the shock from its interest in the decentralization.

Yat Siu, CEO of Animoca Brands speaks

Certainly not directly displayed on the wall of fallen projects of our colleagues at The Block, the company Animoca Brands supports many NFT and metaverse projects and investors. For example, we mentioned Sky Mavis, but that is also part of it Temasek a Singaporean investment fund.

In an open letter called “ Glimpses of the future through the prism of days gone by The web giant 3 has tried to exercise transparency while asserting its hegemony in the sector:

“Our exposure to FTX is limited to an insignificant trade balance and we continue to invest in and support the ecosystem, most recently with Cool Cats, VCORE, Viker and a number of investments to be announced. Animoca Brands remains financially strong with a cash balance of approximately US$214 million, digital assets of US$940 million with an additional US$3 billion in off-balance-sheet digital reserves, and a portfolio of approximately 380 companies representing the best Web3 and blockchain companies of the world. worldwide (OpenSea, Dapper Labs, Sky Mavis, The Sandbox and Upland to name a few) representing significant added value to the group’s balance sheet (as of November 1, 2022)”

In addition, the business manager continues to remember the importance of working towards decentralization, without hiding his displeasure with the FTX situation:

(…) I am angry that the important work of making the web decentralized, freed from central power structures that continue to abuse their disproportionate power, is once again overshadowed by a very small number of irresponsible actors. (…)”

Finally, even if Yat Siu recognizes difficulties and that companies in his group will certainly run into problems during this period, the entrepreneur advises to see ” the future through the prism of times gone by “. That is also what we are going to do.

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And looking closer, the weather is certainly gray, but the NFT sector did not admit defeat during this ordeal.

DeFi and Gaming: A Resilient Sector

Indeed, the news of the past few days has been able to show us that the NFTs continue to conquer the world. Microsoft, the web 2 giant this month confirmed its interest in video games, more specifically those related to web 3. The giant has invested in Wemade, a game creator company that has launched its own blockchain, by participating in a fundraising fund with other South Korean companies. $46 million have been harvested.

Furthermore, therise of GameFiillustrated by Dappradar analysis shows that blockchain games and metaverse projects have risen in the past quarter $1.3 billion. This figure is definitely down 48%, but it’s warming up in the middle of a bear market.

Finally, while FTX was going through dark days, Sony continued to prepare the web 3 ground for its emblematic console: the play station by applying for a new patent on the theme of NFTs.

NFTs, darlings of sports brands

Therefore, despite the crisis, NFTs continue to develop. The sports world hasn’t been let down by the FTX carnage. Messi even has it signed with Sorare to promote the game of fantasy football. He becomes Ambassador Sorare. In the same developmental dynamic, Sorare, a French unicorn, has in the crosshairs of the AMF, a provisional agreementwith French regulations pending legislation adapted to so-called web 3 games.

On a different front, but still with the stars of the round ball, the NFTs of the first NFT collection of Ronaldo on Binance have gone up for sale. Finally, for your style, rest assured, Nike is thinking of you and launching one community platform on Polygoncontinuing a methodical conquest of web 3 and its players.

Nike_Polygon_RTFKT_NFT

Don’t panic about NFTs: the metaverse is still worth billions of dollars

For example, after several weeks of bad news, some optimistic speeches deserve our attention. According to this new Deloitte report, the metaverse and NFTs could raise up to $1.4 trillion by 2035 in some parts of the world. Let’s hope the bear market doesn’t last until then.

12 Asian economies are studied by Deloitte: Hong Kong, India, Indonesia, Japan, mainland China, Pakistan, the Philippines, Singapore, South Korea, Taiwan, Thailand and Vietnam. Closely linked to the use of NFT, the use of a parallel world that hangs from our reality seems, according to the analyst, already in the mores of our darlings and would be in the future, one of the sectors that will see the greatest growth: the global market could reach $13 trillion by 2030.

“We estimate that the impact of the metaverse on GDP in Asia could be between $0.8 trillion and $1.4 trillion per year by 2035, or about 1.3-2.4% of total GDP per year by 2035.”

So, as we’ve reiterated too many times over the past few days, caution is advised. Even if NFT Bored Ape still sells for $1 million, look at the market as a whole and consider that many NFT collections have lost more than 90 percent of their value. The crypto winter, weighed down by the Terra and FTX installments, promises to be tough and long. As we mentioned, the NFT sector does not appear to have said its last words. We were even able to find “through the prism of recent days” what – sort of – warm our hearts.

Cryptos and blockchain technology are still young and volatile sectors. Every investment involves risks. As a well-informed investor, have you done your own research and decided to take the plunge? Register on AscendEX, and take advantage of 10,000 Satoshis (sats) bitcoin offered by following this link (commercial link).

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