Galaxy Digital Secures Loan with Stradivarius NFT, NFT Sales Drop, and Dapper Labs' Lawsuit Settlement
Summary:
This week's dispatch covers Galaxy Digital's use of a Stradivarius violin NFT, acquired by co-founder Yat Siu, as loan collateral and discusses a 54% drop in overall NFT sales volume in May, according to CryptoSlam. The U.S. Treasury Department's risk assessment of NFTs, pointing out possibilities of misuse for terrorist financing and money laundering, is also noted. Additionally, Bitcoin NFTs have achieved a total sales volume milestone of $4 billion. The piece closes with details on a $4 million lawsuit settlement by Dapper Labs over NBA Top Shot Moments NFTs sold as unregistered securities.
This week's dispatch highlights Galaxy Digital's innovative use of a rare violin NFT for loan collateralization and documents the drastic sales volume reduction for NFTs in May. It also sheds light on the U.S. Treasury Department's perspectives on NFTs, reveals a significant milestone for Bitcoin NFTs, and shares insights from Dapper Labs’ CEO post a lawsuit settlement related to NBA Top Shot Moments NFTs.
Galaxy Digital, led by Michael Novogratz and co-founder of Animoca Brands, Yat Siu, have used a token of a 300-year-old Stradivarius violin for securing a loan. Auction house Tarisio confirmed the instrument's extensive history, including its past ownership by Russian Empress Catherine the Great. The exact loan amount is undisclosed but the collateral included both the physical violin and its NFT, both acquired by Siu for $9 million at a 2023 auction.
From an NFT sales perspective, May bore witness to a sharp downfall of 54%, according to CryptoSlam, following a surge in April. The drop in sales volume was all-encompassing, affecting Bitcoin-based NFT sales by 68%, Solana-based collectibles by 48%, and Ethereum NFTs by 55%.
The U.S. Treasury Department issued a risk assessment report surrounding NFTs, pointing towards potential vulnerabilities such as their use in terrorist financing, nuclear proliferation, money laundering, and investor-level risks of theft.
In a more encouraging update, Bitcoin NFTs have made a landmark achievement with an all-time sales volume of $4 billion, as per data released by CryptoSlam on June 4. In the past month alone, Bitcoin-based digital collectibles clinched the top spot with a sales volume of $171 million, outperforming Ethereum's $159 million.
Dapper Labs—the brainchild behind NBA Top Shot Moments NFTs—settled a class-action lawsuit alleging the firm was trading unregistered securities by agreeing to a $4 million payment. Following the settlement, the firm's CEO, Roham Gharegozlou, maintained that these NFTs are no more securities than trading cards. The conditions of the settlement reportedly included the decentralization of the Flow blockchain to a level beyond the company's control.
Join us again next Wednesday for more updates from the rapidly shifting landscape of NFTs. We appreciate your continued readership.
Published At
6/5/2024 10:02:00 PM
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