NFT creators royalties take center stage 💡

The ongoing debate of whether creator royalties should be enforced on...

Author

Ordinal Hive
November 11, 2022

Good morning: This is our first-ever NFT newsletter. This would not have been possible without your support. Thank you so much. With that said let's get to the good stuff, yea!

-Alfonso Lua: Co-Founder, Connor Ripple: Co-Founder

  • NFT Market - In the past 24 hours, Bored Ape Yacht Club remains the top NFT collection by volume with just over 1,850 ETH. CryptoPunks is second with 849 ETH.

  • Trending Collections

Today's edition:

  • 😲 Binance backs out of FTX deal

  • 🎶 Decentraland Music Festival finally arrives

  • 💡 NFT Royalties take center stage

  • 📉 Art Gobblers floor price plummets after splashy debut

  • 🤑 A Bored Ape Yacht Club NFT sold for $550k

  • 💰 Free NFT Mint

  • 🕊️ Matic price rockets after meta announced NFT news (Coindesk)

  • 😶‍🌫️ Metaplex apologizes after announcing Beeple NFTs on Solana (Decrypt)

  • 💵 Buy NFT and Get Main Lobster shipped to your door (Decrypt)

  • 🏈 From NFL to NFTs, Tebow joins in on the fun (CoinDesk)

  • 🧹 Wuhan scraps NFT plans amid regulatory uncertainty in China (CoinTelegraph)

  • 🤔 What does Binance's FTX aqusiition mean for NFTs (Decrypt)

  • 🧨 Burning a Frida Kahlo painting and selling it as an NFT is a bad idea (TheVerge)

Interesting Read:

Binance backing out of FTX deal

On Wednesday, Binance announced that it will no longer buy FTX as a result of "corporate due diligence." They also cited regulatory concerns and reports of mishandled funds by FTX.

Here are the quick facts:

  • On November 2nd a report was leaked showing that Alameda Research, FTX's sister company, held an unusually large amount of FTT tokens.

  • Binance announced it will sell its FTT tokens in light of the revelations.

  • Investors quickly rushed to take their liquidity out of FTX resulting in a liquidity crunch, meaning FTX did NOT have the money to fulfill the requests.

  • Binance signed a non-binding agreement to buy FTX on Tuesday.

  • After doing "basic due diligence" research on FTX, Binance opted not to go through with the deal.

  • FTX needs an $8B fusion of capital to avoid bankruptcy.

Decentraland Music Festival has arrived

Decentraland is hosting its second annual music festival with more than 150 artists performing in the next four days.

Here are the quick facts:

  • The musical festival will be spread across fifteen stages in the virtual world.

  • The theme for this years' Decenraland Music Festival is cyberpunk.

  • Artists attending this virtual event include DJ Gramatik, DJ Yokoo, and Rapper Soulja Boy among other performers.

  • To attend all you need to do is head over to their website and hop in.

  • Connect your wallet in order to win airdrops and giveaways.

Don't forget to showcase your best metaverse wearables as you enjoy the music! 🎵

To Pay or Not To Pay

The debate on whether creator royalties should be enforced on NFT marketplaces has hit a boiling point. To understand the central issue we need to understand the concept of NFT royalties. NFT royalties are basically fees paid to the original creator whenever that particular NFT is sold. The only problem is that there is no way to enforce it through smart contracts. Instead, creators have relied on NFT exchanges to do their bidding.

Here are the quick facts:

  • Many NFT owners avoid paying royalties by transferring NFTs through wallets.

  • The situation has only gotten worse since there are now NFT marketplaces that offer free NFT trading with no intention to enforce royalties.

According to NFTstatistics.eth, only about 18% of NFT holders have opted to pay royalties.

Now Opensea, the largest NFT exchange by volume, has come out and said that it will enforce creator royalties on its platform.

The solution according to Opensea, is to embed code in the smart contract that would bar any NFT holder from selling their NFT on marketplaces that don't enforce creator royalties. This may be an attempt at fixing the issue but critics have said that Opensea is closing doors for the NFT holder. This move is also controversial since it leads to the question, do NFT owners actually own their NFT?

Art Gobblers Floor Price Plummets after Splashy debut

After having a splashy debut last week, Art Gobblers have hit a bump in the road.

Here are the quick facts:

  • Art Gobblers is an NFT collection created by Rick & Morty co-creator Justin Roiland and crypto VC firm Paradigm.

  • This is a 10,000 NFT collection that is trying to build a "decentralized art factory" owned and operated by the community.

  • Holders of this NFT can create their own art that is minted and displayed in the Gobbler's "belly gallery".

  • In order to do this they would need to spend $GOO token, which is generated by holding onto the NFT.

Launched on Holloween, these NFTs were minted for free by whitelisted addresses and immediately soared to a floor price of 25 ETH ($24,000). This collection even cracked the top 10 NFT projects with the highest volume traded in October despite only being out for an hour.

After having generated more than $15 million in trade volume in the first 24 hours, the hype train has derailed. The current floor price has plummeted more than 80% from its all-time high (25 ETH). This comes at a time when the entire NFT space is experiencing volatility and downward price movements.

Bored Ape Yacht Club NFT Sold For A Mind-Boggling $550k

Bored Ape Yach Club NFT #5718 was sold on Monday by NemoOceanVault for $550k.

Here are the quick Facts:

  • 👀 This NFT has a rarity score of 168.46

  • 💰 The current owner of this NFT owns multiple Bored Ape Yacht Club NFTs

  • 🕶️ Some of this NFTs unique features include its Hat, Suit, and Red Fur

When you have an NFT selling for that much, it sure will catch some attention.

FREE NFT Mint

A Tribe Called Apes

A Tribe Called Apes is launching its free NFTs on November 11th. Mark that day on your calendar!

This 8,888 NFT Collection's art was inspired by the famous Bored Ape Yacht Club NFTs. Did we say it will be free? Well, almost. You will only be responsible for paying the gas fee.

**Check the project's website for details on how to be whitelisted.

Blockchain: Ethereum

Mint Date: November 11th

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