Adidas and Bugatti to create a series of Web3 drops

Good Morning, and welcome to De.Nomics newsletter, your daily digest to stay ahead in the world of Web3 and decentralized technologies at a regional focus. Today, we have plenty of trending news and stories. So, get your cup of tea and some biscuits, and let’s go ahead.
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The Blends Briefs
TL’DR: Here’s a sneak peek into today’s newsletter

• Ordinals or No Ordinals.

• Adidas and Bugatti to create a series of Web3 drops.

• SEC charges Safemoon.

• Yuga Labs joins forces with Magic Eden.

• Abu Dhabi is leading DLT regulations.

• Dictionomics: IFPS and DEX

A must-have
Ordinals or No Ordinals.

NFTs and Bitcoin ordinals are two concepts that are related to the use of blockchain technology for creating and storing digital assets. NFTs, or non-fungible tokens, are unique and indivisible tokens that can represent anything from art and music to gaming items and collectibles. Bitcoin ordinals, or ordinals for short, are a way of creating NFTs on the Bitcoin blockchain by inscribing data onto individual satoshis, the smallest unit of Bitcoin.

NFTs and Bitcoin ordinals have different advantages and disadvantages in terms of their market value, examples, pros and cons. Some of the factors that affect their value are:

• Scarcity: NFTs are limited by the supply of the underlying token, such as ETH or SOL, while ordinals are limited by the supply of satoshis, which is capped at 21 million BTC.

• Demand: NFTs are driven by the popularity and utility of the digital assets they represent, while ordinals are driven by the novelty and innovation of using Bitcoin as a data storage network.

• Security: NFTs rely on the security and decentralization of the smart contract platforms they are built on, while ordinals rely on the security and immutability of the Bitcoin network.

• Interoperability: NFTs can be easily transferred and traded across different platforms and marketplaces that support the same token standard, such as ERC-721 or SPL, while ordinals are more difficult to transfer and trade due to the lack of infrastructure and compatibility with other blockchains.

Some examples of NFTs and Bitcoin ordinals are:

• NFTs: CryptoPunks, Bored Ape Yacht Club, NBA Top Shot, Axie Infinity, etc.

• Ordinals: Ordinal Punks, Taproot Wizards, Timechain Collectibles, Ordinal Loops, etc.

Pros and Cons of NFTs and Bitcoin ordinals are:

NFTs:

• Pros: More diverse and creative use cases, more established and liquid marketplaces, more user-friendly and accessible tools and platforms.

• Cons: Higher transaction fees, higher environmental impact, higher risk of hacking or theft.

Ordinals:

• Pros: More secure and immutable data storage, more efficient and low-cost transactions, more experimental and innovative potential.

• Cons: Less expressive and flexible data formats, less developed and integrated marketplaces, less intuitive and user-friendly tools and platforms.

Global Biscuits

Adidas and Bugatti to create a series of Web3 drops.
Adidas and Bugatti have teamed up to create a series of web3 drops, which are digital products that can be owned and traded on the blockchain. The drops consist of three categories: virtual sneakers, digital art, and metaverse experiences. The virtual sneakers are designed by Adidas and inspired by Bugatti's iconic cars, and they can be worn on various metaverse platforms. The digital art is created by renowned artists and features the brands' logos and aesthetics. The metaverse experiences are immersive and interactive events that allow the consumers to explore the brands' worlds and values. 

The web3 drops aim to attract new audiences and generate value for both the brands and the consumers in the emerging digital economy, where digital assets are becoming more scarce and valuable. The price of these drops varies depending on the category, the rarity, and the demand. Some of the drops are sold through auctions, while others are sold through fixed prices or raffles. The most expensive drop is the Adidas X Crazyfast Bugatti football boot, which is limited to 99 pairs and is auctioned exclusively via Adidas Collect between November 8-11. The minimum bid for this drop is 0.2 ETH, which is equivalent to about $900 as of November 5. This drop is a convergence of high-performance motoring and sportswear, featuring a Speedframe sole plate technology, a carbon fiber inlay, and a Bugatti Blue colorway. Compared with other drops by Adidas, this drop is one of the most exclusive and expensive ones. Other drops by Adidas include Into the Metaverse, which is a collaboration with Bored Ape Yacht Club, G Money, and Pixel Vault, and ALTS, which is an interactive storyline with digital and physical products. These drops are also sold through auctions or raffles, but they have more supply and lower prices than the Adidas X Crazyfast Bugatti drop. For example, Into the Metaverse has 30,000 NFTs with a starting price of 0.2 ETH each, while ALTS has 20,000 NFTs with a starting price of 0.08 ETH each. These drops also offer different benefits and experiences for the holders, such as access to metaverse platforms, exclusive apparel, and community events.

SEC charges Safemoon.
Safemoon, a cryptocurrency project that claims to reward holders and discourage selling, has issued a statement addressing the recent exploits that affected its ecosystem. The statement also comes amid reports that the U.S. Securities and Exchange Commission (SEC) has charged Safemoon and its CEO with fraud and misleading investors. The SEC alleges that Safemoon and its CEO made false and exaggerated claims about the project's potential, its partnerships, its liquidity pool, and its tokenomics. The SEC also accuses Safemoon and its CEO of selling unregistered securities and failing to disclose material information to investors. According to Safemoon, the exploits were caused by a vulnerability in its liquidity pool contract, which allowed hackers to drain funds from the pool and manipulate the price of the token. Safemoon said it has fixed the vulnerability and reimbursed the affected users. The project also denied any wrongdoing in relation to the SEC charges, saying it has always been transparent and compliant with the regulations.

Yuga Labs joins forces with Magic Eden.
Yuga Labs and Magic Eden, two leading platforms in the web3 space, have announced a partnership to create a new royalty system for digital artists. The system will allow creators to earn passive income from their works, regardless of where they are sold or traded. The system will use Yuga Labs' Bored Ape Yacht Club (BAYC) NFT collection as a proof of concept and will leverage Magic Eden's marketplace and Solana blockchain to enable fast and low-cost transactions. The partnership aims to empower creators and foster a more sustainable and fair web3 economy. 

The partnership will also provide benefits for collectors and fans of BAYC, as they will be able to access exclusive content and features on Magic Eden's platform. Additionally, the partnership will create a bridge between the Ethereum and Solana ecosystems, allowing for more interoperability and liquidity for NFTs. The partnership is expected to launch in early 2024 and will set a new standard for creator royalties in web3.

Tastes of the regions

Abu Dhabi is leading DLT regulations.
Abu Dhabi, the capital of the United Arab Emirates, is leading the way in regulating distributed ledger technology (DLT) and decentralized autonomous organizations (DAOs) in the Middle East. The Abu Dhabi Global Market (ADGM), the financial center of the emirate, has recently issued a comprehensive framework for DLT and DAOs, as well as a sandbox program for Web3 innovations. The ADGM aims to foster a conducive environment for DLT and DAOs to thrive while ensuring consumer protection and compliance with international standards.

Dictionomics
IFPS and DEX

IFPS stands for InterPlanetary File System, a peer-to-peer protocol for storing and sharing data in a distributed way. It aims to make the web faster, safer, and more open by replacing the traditional HTTP protocol with a content-addressable network. Crypto projects use IFPS to store data such as images, videos, metadata, and smart contracts in a decentralized manner.

DEX stands for Decentralized Exchange, a platform that allows users to trade crypto assets without intermediaries or custodians. DEXs use smart contracts to execute trades directly on the blockchain, eliminating the need for centralized servers, order books, or identity verification. Crypto projects use DEXs to provide liquidity, transparency, and security for their users.

Some examples of crypto projects that use both IFPS and DEX are:

• Uniswap: A decentralized cryptocurrency exchange and automated market maker built on Ethereum. Uniswap uses IPFS to host its front-end interface and to store its governance proposals.

• Kyber Network: A multi-chain crypto trading and liquidity hub that connects liquidity from different sources to enable trades at the best rates. Kyber Network uses IPFS to store its token metadata and to distribute its governance snapshots.

• Axelar: A cross-chain communication network that connects blockchains with each other and with decentralized applications. Axelar uses IPFS to store its network configuration and to exchange messages between nodes.

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