The Chopping Block: Did Blur Cause a Decline in the NFT Market? - Ep. 567
Nov 9, 2023
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The podcast discusses the unhinged scale metric, recent layoffs in the crypto market, challenges facing the NFT market, the impact of the Blur model on NFT values, the BAYC Apefest and possible sabotage, takeaways from the Solana conference, and the survival of Solana after a market crash.
The recent layoffs in the crypto industry raise questions about the ability of companies to navigate the volatile market.
Solana's unique and thriving ecosystem has attracted developers and contributed to its success.
The intersection of gaming and gambling in the crypto space presents opportunities for innovative casino games.
Deep dives
Layoffs in the Crypto Industry
Several companies in the crypto industry, including OpenSea, Crato, and Ava Labs, have recently announced significant layoffs. While some argue that these layoffs are a delayed response to market challenges, others question whether they signal a new wave of downsizing. The volatile nature of the crypto market and the cyclical nature of hiring and layoffs in the industry make it a challenging environment for companies to navigate. OpenSea, in particular, has faced criticism and scrutiny for its internal practices and recent layoffs.
The Unique Ecosystem of Solana
Solana has emerged as a unique and thriving ecosystem within the crypto space. With its own set of developers and projects, Solana has created a strong community and sense of identity. Unlike other L1 ecosystems, Solana has avoided becoming a zero-sum game with projects fighting against each other. The survival and resilience of Solana after past challenges, such as the Dow hack, has contributed to its credibility and appeal to developers. The wealth effect and the promise of being at the forefront of innovation in the Solana ecosystem have attracted developers, leading to a flourishing ecosystem.
The Future of Gaming in Crypto
The gaming industry within the crypto space holds significant potential and has seen notable growth. While some believe that the future of crypto gaming lies in the development of AAA games, there is skepticism around the return on investment and viability of such projects. The majority of revenue in the gaming industry does not come from AAA games, but rather from smaller, highly monetizable games. The rise of mobile games in China and the success of low-cost, high-margin games highlight the potential for similar models in the crypto gaming space. The ability to create and monetize unique, niche, and accessible games on chain presents an opportunity for growth and innovation in the industry.
The Rise of Solana and Innovation in Casino Games
Solana has experienced significant growth in value and popularity, outperforming many other cryptocurrencies. The recent success can be attributed to factors like the limited token options, high staking yield, and the surviving projects taking advantage of the retro airdrops. Additionally, the Solana ecosystem has attracted developers who have never interacted with legacy platforms like Ethereum or Bitcoin. However, when it comes to casino games, there has been limited innovation due to a lack of interest from brilliant and creative minds who prefer working for established gaming companies. The intersection of gaming and gambling in the crypto space opens up new possibilities for innovative and immersive casino games.
Crypto Gaming, NFT Market Changes, and Apefest Incident
Crypto gaming is gaining popularity, but finding success and investment in the space can be challenging due to the boundaries of acceptable content and the link with gambling mechanics. The emergence of games like Kiss or Slap, where users pay to have their avatars either kiss or slap one another, showcases the potential for combining degenerate gambling and the gaming experience. However, the long-standing lack of innovation in casino games, largely unchanged for decades, may be due to the perception of casinos as unappealing and the lack of incentives for creative minds to work in the industry. Additionally, the podcast episode mentions an incident at Apefest, an event for holders of Board Ape Yacht Club NFTs, where the use of UV lights resulted in eye damage for some attendees, raising concerns about event safety measures.
Welcome to The Chopping Block – where crypto insiders Haseeb Qureshi, Tom Schmidt, Tarun Chitra, and Robert Leshner chop it up about the latest news. This week, they explore the enigmatic 'unhinged scale' metric, consider whether recent layoffs could have been anticipated, and examine the challenges facing the NFT market. They also provide a somewhat critical look at the events of the recent BAYC Apefest and share their takeaways on how Solana survived the Sam Bankman-Fried and FTX fiasco.
