🐵Bored Ape NFTs Tumble To 18-Month Low
In today's newsletter, we start by looking at how the Bored Ape Yacht Club (BAYC) community is dealing with a protracted downtrend. Meanwhile, Matter Labs has unveiled its 'ZK Stack', a customizable tech stack that promises to further facilitate the creation of Layer 2 and Layer 3 networks on Ethereum.
In the realm of stablecoins, short positions on TUSD have been rising amid concerns about its dollar peg. And on the legal frontier, a U.S. court has ruled in favor of Hermes in a landmark case, setting a precedent for copyright violations related to NFTs.
✍️ In today’s newsletter:
- BAYC community looks for ways to reverse downtrend
- zkSync open-sources ZK Stack
- DeFi traders are shorting TUSD
- Court sides with Hermes in MetaBirkin case
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Bored Ape NFTs Hit 18-Month Low
TLDR Bored Ape Yacht Club (BAYC) and other Yuga ecosystem assets have had a rough month, with APE hitting an all-time low on June 19. An ongoing Special Election seeks to invigorate the ecosystem's governing body, the ApeCoin DAO. The struggle to define clear roles and responsibilities within the ApeCoin DAO, along with the high salaries of its council members, indicates inherent governance challenges.
SO WHAT The ongoing downtrend raises concerns about the long-term sustainability and effectiveness of DAOs in managing NFT collections and their related token ecosystems. As one of the most impactful NFT collections, the BAYC and ApeCoin's future trajectory will likely influence the broader NFT and DAO space, setting either an example to follow or a cautionary tale.
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Layer 2 Network ZkSync Unveils ‘Hyperchain’ Vision With ZK Stack
TLDR Matter Labs has released ZK Stack, a customizable tech stack that facilitates the creation of Layer 2 and Layer 3 networks on Ethereum using zero-knowledge technology. The open-source framework is designed to support developers in building custom networks, with native bridges enabling composability into a "trustless network with low latency and shared liquidity."
SO WHAT This move is seen as Matter Labs' response to Optimism's OP Stack and paves the way for a unified ecosystem of "hyperchains."
Traders Short TUSD Stablecoin After Prime Trust Halts Withdrawals
TLDR After TUSD's issuer TrueUSD paused mints via the Prime Trust exchange in early June, the value of TUSD slipped below its $1 peg several times. Recently, a trader opened a $4M short position using the Aave protocol. Currently, the total number of long positions across AAVE and Fuse protocols is just over $90,000, while short positions against TUSD are close to $5M.
SO WHAT A potential depeg of TUSD could have significant implications for the broader stablecoin market and the DeFi sector. Moreover, if these concerns spread to other stablecoins, it could undermine the stability and efficiency of many DeFi protocols that integrate these tokens.
Hermes Wins Injunction Against MetaBirkins NFT Creator
TLDR A U.S. court has granted a permanent injunction against the MetaBirkin NFT collection, ruling in favor of the French luxury fashion house Hermes. The court found that the creator of the MetaBirkin NFTs, Mason Rothschild, violated Hermes' copyright by creating NFTs depicting handbags in the style of Hermes' Birkin bags.
SO WHAT This case sets a significant precedent for future lawsuits dealing with alleged trademark infringement in the realm of NFTs and the broader web3 space. The verdict could discourage other creators from using recognizable or protected designs without authorization, and may lead to an increase in litigation in the rapidly growing NFT space.