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April 13, 2022

🥛 How Facebook is gonna make money in the metaverse

GM, this is the Milk Road. Your tour guide in the wild, wild west of crypto.

Today's estimated read time: 2 minutes & 19 seconds

Prices have stabilized a bit in the last 24 hours and are in the green…while fear remains extremely high.

Let's get into the good stuff:

  •  ⬇️ Facebook is letting users sell digital assets, but there's a catch

  •  🤑 Logan Paul's new DAO

  •  🗞️ Axie Infinity launches a $1M bug bounty

  •  🤣 A great Meme

FACEBOOK GETS GREEDY WITH A 47.5% TAKE RATE

Facebook (that’s right, as long as you live under my roof, we won’t be calling them Meta) released a 20 minute video about their metaverse project.

Let me save you 1,150 seconds and summarize the key points:

1/ The project is called Horizon Worlds, and will let users buy/sell virtual items & land.

2/ They are taking 47.5% cut of sales on virtual items

3/ They are setting up a $10M Horizon Creators Fund to incentivize creators to use the platform

4/ They previewed virtual places like “Wendyverse” (a virtual Wendy’s)

People were going nuts about the 47.5% cut (as a comparison, the iPhone app store takes 30%, and OpenSea takes 2.5% on NFTs)

To play Devil’s advocate: Facebook has a major distribution advantage. Oculus (the virtual reality headset) has ~2.4M daily active users, which is more than nearly every crypto project.

AXIE INFINITY UPS THEIR BUG BOUNTY TO $1M… NOT ENOUGH?

A few weeks ago, Axie Infinity got hacked for $600M (we talked about it here).

Yesterday, they announced a new bug bounty program that rewards hackers up to $1M to prevent future hacks.

One key detail: fatal bounties that command a $1 million reward will include a 6-month vesting period before the hacker can get the dough.

The Milk Road's Take: $1M is nice, but small compared to what others offer:

We'd expect more coming out of such a huge hack.

LOGAN PAUL IS LAUNCHING A DAO

Logan Paul is launching a new NFT collection, Originals 99.

There are 99 NFTs, and half the proceeds go into a DAO that the 99 holders control. They can spend the treasury money on whatever they vote on.

Some of the ideas have been:

  • Invest in other digital assets (NFTs, tokens)

  • Fund projects by other DAO members

  • Invest in movie scripts to make into actual movies – Hollywood 2.0

  • Buy a private jet

Even Beeple has his eyes on this one.

6 PIECES O'NEWS NUGGETS

There have been reports of wallets buying up thousands of crypto tokens before they get listed on Coinbase for trading. Is there Coinbase insider trading going on? The Crypto twitter police believe so.

Robinhood, a trading platform, has added 4 new cryptocurrencies including SHIBA coin, Solana, MATIC, and COMP.

Celsius, a cryptocurrency lender, is banning transfers from nonaccredited investors on their platform in the US. This means you have to have a minimum annual income of $200k or networth of $1M to buy new assets on their platform.

Former Ethereum developer, Virgil Griffith gets sentenced to 5 years in prison for his blockchain talk in N.Korea. Griffith was arrested in 2019 and charged with conspiring to help North Koreans evade sanctions via crypto.

Pantera announces they have raised $1.3B for their blockchain fund.

Infinite Reality, a metaverse innovation company, announced they have purchased ReKT Global, an esports company, in a $470M stock deal. The acquisition comes with two e-sports teams, Team Rogue & London Loyal, that will be used for future marketing, NFTs, and more.

MEME OF THE DAY

In case you don’t get it… if you tweet with like any 1 of these phrases, an army of scam bots will message you.

This guy put all the keywords in one tweet.

Now he can just block all the bots at once. He’s playing chess while the rest of us play checkers.

See ya tomorrow!

Shaan "Chocolate Milk" Puri and Ben "2% Milk" Levy

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