NiftyNoon: Why are NFT and Crypto Markets Plummeting?

The market is experiencing unprecedented volatility. What is driving it? (March 10, 2023)

Nifty Thought

• The supposed fall of Silicon Valley Bank has sent the entire market in a tailwind, NFTs and crypto included. To understand what is happening, NiftyNoon is here to break things down step-by-step.

• In 2021, Silicon Valley Bank (SVB) experienced a large influx in deposits, leading to them purchasing over $80 billion in mortgage-backed securities (MBS) for their hold-to-maturity (HTM) portfolio. As the Fed raised rates throughout 2022/23, the value of these MBS plummeted, causing SVB to sell $21 billion worth of MBS at a loss of $1.8 billion and raise $2.25 billion in equity and debt in an attempt to shore up capital outflows. This caused a widespread market contagion and wiped nearly $60 billion off the market value of the four largest US banks by assets. The risk of failure and deposit losses at SVB is that the next least well-capitalized bank faces a run and fails, causing a domino effect.

• SVB has relationships with over 50% of all venture-backed companies in the US, and should SVB go insolvent, it could freeze the entire VC/PE market ecosystem, limiting firms from drawing on lines of credit and freezing deal execution, payments for services, etc. This could lead to founders not having access to capital for some time. Lastly, the failure of SVB could destroy an important long-term driver of the economy as VC-backed companies rely on SVB for loans and holding their operating cash. If private capital fails to offer a viable solution, then it may be necessary to consider a government bailout that involves a high degree of dilution for preferred shareholders.

Project News

• Beanz announce they will be giving collector badge to holders with a Twitter Beanz pfp:

  BEANZ @BEANZOfficial

  Community badge update: Use one of the following BEANZ pfps on Twitter to get the Tweet Tweet badge on your Collector’s Profile. - Bean original mode - Bean portrait mode - Bean paired with your Azuki Show us your BEANZ! 🫘

  

• Coinbase introduce novel web3 discovery surface:

  Coinbase @coinbase

  1/ Introducing our new web3 discovery surface, coinbase.com/web3. Explore the best dapps web3 has to offer, including: 🖼️ NFTs 🤑 Ways to earn more crypto 💬 Decentralized social networks 🎮 Web3 games and more!

• CoolCats anticipated Journey 3 goes live:

  Cool Cats @coolcats

  Journey 3 is LIVE NOW. 🌀 journeys.coolcatsnft.com

  

• Moonbirds announce first official meetup at sxsw on March 12th:

  Moonbirds (🦉, 🎨) @moonbirds

  Join us for our first official meetup at @sxsw on March 12: Collective Pass, Moonbirds, Oddities + their friends are all invited to the SXSW Day Lounge! Stop by for games, BBQ, art installations, and some of your fave @proof_xyz team members! Register: events.proof.xyz

  

• Animoca Brands and Planet Hollywood announce the launch of CLUB 3, a private members-only club serving as a meeting place for the global community involved in Web3, Nfts, and OpenMetaverse industries:

  Animoca Brands @animocabrands

  Animoca Brands and @PlanetHollywood have announced the launch of CLUB 3, a private members-only club that will serve as a physical meeting place for the global community involved in #Web3, #NFTs, and #OpenMetaverse industries.  #culture #NFTcommunity

• Starbucks “Siren Collection” stamps sold in under 20 minutes, despite technical difficulties:

  CoinDesk @CoinDesk

  The 2,000-item @Starbucks “Siren Collection” stamps were priced at $100 and despite some technical issues, the collection sold out in under 20 minutes. @tobyleah reports:

  

  trib.alStarbucks Odyssey Releases ‘The Siren Collection,’ Its First Limited-Edition NFT DropMembers of Starbucks Odyssey, the rewards program currently in beta, were able to purchase up to two “Stamps” from an edition of 2,000 featuring the brand’s iconic siren, but the launch was not without issues.

Community News

• CZ reacts to crypto prices dip:

  CZ 🔶 Binance @cz_binance

  Slept for 4 hours, woke up to: Silicon Vally Bank troubles USAG Sues KuCoin Whitehouse wants 30% tax on mining electricity Huobi token flash crash Other crypto prices dips a bit #bitcoin still producing blocks.

• Gary Gensler tweets he is committed to ensure crypto investors and the markets receive all the protections they would in any other securities market:

  Gary Gensler @GaryGensler

  As Chair of @SECGov, I have one goal with regard to the crypto markets: to ensure that investors and the markets receive all the protections that they would in any other securities market. How? Read my op-ed in @thehill:

Quick Stats:

• OpenSea ETH Daily Volume: 6,734 ETH (▼ 11.99%)

• Blur ETH Daily Volume: 28,906 ETH (▲ 1.17%)

• BTC: $19,941.26 (▼ 8.07%)

• ETH: $1,408.17 (▼ 8.19%)

• Solana: $16.84 (▼ 8.59%)

• Polygon: $0.99 (▼ 5.37%)

NFT Daily Winners:

• 🦉 Moonbirds: 6.80 ETH (▲ 11.49%)

• 🏳️‍🌈 Chromie Squiggles: 12.00 ETH (▲ 4.35%)

• 🦧 Bored Ape Yacht Club: 71.42 ETH (▲ 1.41%)

NFT Daily Losers:

• 🚬 CryptoPunks: 65.86 ETH (▼ 0.02%)

• 🥃 Proof Collective: 15.65 ETH (▼ 0.32%)

• 🐈‍⬛ VeeFriends: 4.35 ETH (▼ 2.25%)

• 🧬 Clone X: 4.38 ETH (▼ 2.45%)

• ⛩️ Azuki: 14.25 ETH (▼ 4.04%)

• 🌈 Doodles: 4.87 ETH (▼ 4.49%)

• 🧟 Mutant Ape Yacht Club: 14.51 ETH (▼ 5.2%)

• 🐧 Pudgy Penguins: 5.29 ETH (▼ 7.98%)

• 🧝🏼‍♀️ DigiDaigaku: 8.00 ETH (▼ 9.91%)

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