In this recap of the crypto world, we will explore the events and news that had the most significant impact in the past week of June 26. Our focus will be on the following developments:
- Azuki’s Elemental Collection Launch Turns Sour
- ApeCoin DAO Elects Two New Members to Special Council
- Coinbase Files Motion to Dismiss SEC Lawsuit
- Fidelity Officially Files for Spot Bitcoin ETF with SEC
Azuki’s Elemental Collection Launch Turns Sour
Azuki’s Elemental Collection launch had all the ingredients for success. The NFT drop was met with overwhelming demand, selling out within 15 minutes, and generating an impressive $38 million worth of ETH for Chiru Labs. However, the initial excitement surrounding the collection was overshadowed by discontent among holders, leading to a decline in prices and concerns over the artwork.
The launch of the 20K collection held much promise, with 10,000 Azuki Elementals NFTs made available for minting at a price of 2 ETH each. Another 10,000 NFTs were graciously airdropped to the Azuki NFT holders for free. However, the unveiling of the artwork marked a turning point as prices swiftly plummeted. In a surprisingly brief period, the Azuki Elementals NFTs saw their values sink as low as 1.32 ETH, while Azuki’s floor price nosedived from a lofty 14 ETH to a disheartening 9.7 ETH within a single day. These steep declines left many holders disheartened.
The primary cause of concern for many holders, NFT collectors, and creators lies in the artwork of the Azuki Elementals collection. The artwork appears to be strikingly similar to that of the original anime-inspired Azuki PFPs. Side-by-side comparisons reveal that some of the new Elementals NFTs are nearly identical to the original Azuki NFTs.
In response to the uproar, Azuki’s co-founders have attributed the issue to a technical glitch and assured the community that they will address it promptly. In the meanwhile, speculation has emerged among collectors that Chiru Labs intentionally released artwork that is largely similar to the original Azuki collection as a strategy to generate engagement. Some believe that the pushback and criticism surrounding the artwork will serve as a catalyst for Chiru Labs to update the artwork and create renewed excitement around the Elementals collection. Read more on this here.
ApeCoin DAO Elects Two New Members to Special Council
ApeCoin DAO has reached a significant milestone by electing two new members to its Special Council governing body. The seats, previously occupied by prominent figures such as Animoca Brands chairman Yat Siu and Reddit co-founder Alexis Ohanian, have now been filled. As the elections unfolded, the ApeCoin DAO found itself at a crucial juncture in its development. The voting process, which took place over several days, concluded with the appointment of Waabam and CaptainTrippy to the Special Council.
Waabam brings a diverse range of educational and professional experiences to the ApeCoin DAO. With academic backgrounds in Arts, Business Administration, and Law, Waabam possesses the necessary knowledge to fulfill his responsibilities as a Special Council member. His vision for the ApeCoin DAO centers around the organization’s potential to become the coin of metaverse culture and blockchain gaming. Waabam emphasizes the importance of prioritizing product development and marketing efforts to achieve this vision, aiming to position the DAO at the forefront of the rapidly evolving digital landscape.
CaptainTrippy has been an active and dedicated member of the ApeCoin community for the past two years. As a new member of the Special Council, he aims to leverage his platform to increase awareness and promote the ApeCoin DAO. His unwavering faith in the organization’s future and its ability to shape culture both within and beyond the metaverse is a driving force behind his commitment. With his extensive experience and unique voice, CaptainTrippy is confident in his ability to make a significant impact by working from within the DAO.
The Special Council elections involved the consideration of five candidates, and the results showcased the support and confidence that Waabam and CaptainTrippy garnered from the ApeCoin community. Waabam received 31.2% of the vote, equivalent to 7.7 million APE, while CaptainTrippy secured 29.4% of the vote, with 7.3 million APE. Read more about the candidates here.
Coinbase Files Motion to Dismiss SEC Lawsuit
Coinbase has responded to the lawsuit filed against it by the U.S. Securities and Exchange Commission (SEC) by filing a motion to dismiss. The SEC’s lawsuit, filed in early June, accuses Coinbase of facilitating unregistered trading of 12 digital tokens classified as securities on its wallet and trading platforms.
Coinbase contests the SEC’s allegations, putting forth a strong argument against the regulator’s interpretation of securities laws. In its motion to dismiss, Coinbase maintains that the SEC has overstepped its regulatory authority and encroached upon the company’s due process rights. Coinbase asserts that legal matters should be resolved based on existing laws rather than the SEC’s novel interpretation.
To further support its position, Coinbase points out that the SEC had previously approved its registration statement, allowing the exchange to trade over 240 tokens, including the disputed ones. Coinbase emphasizes that these tokens underwent an extensive review process by the SEC before receiving approval for trading. By highlighting this aspect, Coinbase aims to demonstrate its adherence to regulatory requirements and its willingness to work within established guidelines.
Furthermore, Coinbase’s legal team contends that the SEC’s lawsuit should be dismissed due to the absence of a valid legal claim. They argue that the SEC’s alleged overreach constitutes an abuse of process, as the regulator’s actions extend beyond its jurisdiction. Coinbase asserts that the lawsuit not only threatens its business operations but also undermines the principles of regulatory clarity and fair treatment. Read more on this here.
Fidelity Officially Files for Spot Bitcoin ETF with SEC
Fidelity, a renowned asset manager overseeing a staggering $4.2 trillion in assets, has taken a significant step in its pursuit of a spot Bitcoin Exchange-Traded Fund (ETF). Following earlier reports, Fidelity officially filed its application with the U.S. Securities and Exchange Commission (SEC) on June 29, 2023. This move mirrors the recent filing by BlackRock, the world’s largest asset manager, along with similar applications from Invesco, Wisdom Tree, Valkyrie, and Bitwise. The entrance of these established financial institutions into the digital asset sector marks an intriguing development. Observing the SEC’s response to these filings will be of utmost importance in the weeks to come.
As per WatcherGuru, Fidelity is no stranger to the digital asset industry, as this is its second attempt to bring a Bitcoin ETF to market. In 2022, the company’s previous application failed to receive SEC approval. However, recent analysts have suggested that BlackRock’s chances of approval may be as high as 50%, indicating a potentially similar likelihood for Fidelity. With over $11 trillion in assets under its administration and its presence in the digital asset space since 2018, Fidelity possesses the experience and resources necessary to navigate the evolving cryptocurrency landscape.
With Fidelity’s official filing submitted, the cryptocurrency industry eagerly awaits the SEC’s ruling on the approval of its Bitcoin ETF. This decision will not only impact Fidelity’s prospects but will also set a precedent for the acceptance and regulatory framework surrounding Bitcoin ETFs in the United States. Market participants will closely monitor the SEC’s response in the coming weeks, as it will significantly influence investor sentiment and shape the trajectory of digital asset adoption within traditional financial systems.
