X Marks the Spot 🎯

🧑‍⚖️ Grayscale Guns Down SEC in Court … X Marks the Spot for Online Crypto Payments … And Impact Theory Under Scrutiny 👀

Author

Nahin Talhah
September 05, 2023

🧑‍⚖️ Grayscale Guns Down SEC in Court … X Marks the Spot for Online Crypto Payments … And Impact Theory Under Scrutiny 👀


What’s up Web3-ers.

In today’s issue, we’re diving into:

  • Courtroom battles: One of the world’s biggest crypto-focused asset managers wins BIG against the SEC.

  • How Musk is edging out META in the race to be the social media crypto king.

  • Refunds incoming for NFT investors as Impact Theory gets tied up in legal proceedings.

  • What ‘Suits’ can teach us about excelling in a Web3 world, whether you’re building a business or looking to level up in your career.

SUCCESS PRINCIPLE LESSONS #113

Each week we decode one of the key Web3 principles giving you the inside track on what makes a successful Web3 strategy.

This week’s principle… Ownership

Have you ever watched the TV show ‘Suits?’ If not, the premise is, college dropout Mike Ross uses his photographic memory to land a job as an associate working for successful attorney Harvey Specter, despite never having attended law school.

Clearly, as difficult as this level of deception is to achieve … If you have the confidence and the gift of the gab, it’s possible. At least, it WAS possible in Web2.

Ownership in Web3

Where Web3 excels however, is that blockchain allows you to take ownership of everything tied to your identity, creating a system that can easily verify your achievements and accolades reinforcing trust. Ergo, it’s much more transparent.

This is great news for ethical folks like you and us … And not so great news for the Mike Ross’ of the world.

Now, on with the main event …

GRAYSCALE GUNS DOWN SEC IN COURT

Grayscale Investments LLC are one step closer to launching their spot Bitcoin ETF after delivering a heavy blow to the SEC in a recent court battle.

The lawsuit came about in response to the SEC's rejection of Grayscale's attempt to convert its Bitcoin Trust (GBTC) into an exchange-traded fund (ETF.)

While this may not be a total green light for Bitcoin ETFs, it IS yet another demonstration of how the tide is turning, and could open the door for the first Bitcoin ETF and impact companies like BlackRock and Fidelity exploring similar products.

Plus, it’s one more setback for the SEC in their seeming never-ending war against digital currencies.

X MARKS THE SPOT FOR ONLINE CRYPTO PAYMENTS

X (formerly Twitter) is now a step closer to allowing users to send, receive, and store cryptocurrencies directly on the platform.

Sources had suggested that X’s upcoming payment features would initially only support fiat currencies. But as news broke that the platform had obtained a Rhode Island Currency Transmitter License (a legal requirement for companies conducting financial activities on behalf of users related to sending and receiving money, that includes fiat AND Crypto) speculation started about X’s foray into digital currencies.

The license doesn't guarantee immediate cryptocurrency implementation, but it definitely sets a positive trajectory for potential crypto payment integration on the platform.

Plus, seeing as, at last count, X had in excess of 541 million users … That’s a good deal of folks ready to step into the Web3 world, in a simple, low-key, highly-accessible way.

IMPACT THEORY UNDER SCRUTINY

It’s not been all doom and gloom for the SEC this week, as the regulators did score a mini-win against LA-based entertainment company, Impact Theory.

This is actually the first time the SEC has taken enforcement action against a company for selling unregistered NFT’s, as they went after Impact Theory's NFT’s, named Founder's Keys, sold as investment in the business. Between October and December 2021, the company leveraged these to raise around $30 Million.

Impact Theory co-founder Tom Bilyeu was quick to put rumours to bed, going live on X shortly after the ruling to answer any questions.

While Impact Theory didn’t admit guilt, they did agree to a cease-and-desist order and to pay over $6.1 million in penalties. They’ll also return all proceeds from NFT sales to investors.

Though this may affect confidence in NFTs, and we may see a slight downturn in the speed of their mass adoption, it will likely just mean increased scrutiny, and a fairer marketplace for all long-term.

☎️ READER REQUESTS

Every week we pick one lucky reader’s question, and give you a full rundown here. Today’s request comes from Claire who wants to know…

“What gives NFT’s their uniqueness and value?”

Tell most ‘normal’ people what an NFT is, and you’ll be met with a look of pure confusion...

But whether you’re trying to explain NFTs to someone else, or get your head around them yourself, the thing to do, is think of NFTs like special digital stickers.

Each one is attached to something unique, like a piece of art, a video, or even a cool picture of an animal. And just like a real collector's item, these digital stickers show that you own something that's different from everyone else, and no one can take that away.

Because of the technology behind NFTs, the security is watertight, and no one else can copy your unique piece of digital art, meaning you know, with 100% certainty, that what you own is the real deal. (You can’t say THAT for a Mona Lisa rip-off.)

As for how they get their value, well, how does ANY art get its value?

Mostly from people’s feelings, behaviours and actions, right? So the more valuable people deem an NFT, the more monetary value it accumulates. Couple that with scarcity (ie. supply and demand,) and what else comes with your particular NFT — exclusive access, bonuses, owner perks, and so on — and just like your favourite Van Goghs, Warhols and Picassos, the sky’s the limit when it comes to what people will pay.

THAT’S A RITELIST (W)RAP …

We always love hearing from our readers …

So if you want to reach out with a question, comment, or a suggestion for the best gluten-free baked goods, or what to watch on Netflix (nothing too scary though please,) just hit reply to this email, and we’ll get right back to you.

Alternatively, if you want all-hands access to our Mini MBA in Web3 download our 2023 Course brochure below.

Until next time…