Frens, degens, countrypeople. Lend us your eyes. For we have come to elevate y00ts, not to bury them. Because though we know not much about them, the hype they’ve built will live after them. And even after we have lost our bags and exited our positions, their story will be interred with their blockchain transactions. And what a tale it is.

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Right, let’s get straight into it!

Drop alert 🚨

Today, the pre-sale drop of Metropolis World’s access passes called “passports” opened. The remaining supply of the 5,000 tokens will be made available on Saturday at a price of 0.14 ETH (~$230).

Meanwhile, tomorrow (Friday, Sept 9), Tom Woo releases the second chapter in his “CHIE” series entitled “Chapter 2: strongHER” on Nifty Gateway. Woo rose to prominence designing NFT sneakers, sneakers made out of Lego, and thanks to his work with Adidas and Nike.

DYOR 🔬

y00t better believe it 👑

The newest darling of the Solana ecosystem, y00ts, has by many measures lived up to the hype that’s surrounded it in recent weeks by chalking up $6 million in secondary sales in its opening days. A project created by the team behind DeGods — the best-performing Solana project that’s been rivaling many Ethereum-based PFP projects in recent weeks — y00ts has also used an innovative allowlist mechanism to drum up interest and hand-pick its initial community.

Anyone seeking an allowlist spot (or a y00tlist scholarship, to use the project’s parlance) could fill out an application detailing why they should be allowed to grab one of the 15,000 mint passes (called “t00bs”) that can, in turn, be burned to claim a y00t and join the community. Checking to see if one’s application had been accepted became a hot topic of discussion on Twitter, especially as applicants were encouraged to publicly garner support for their application and make it clear to the project’s creators why they should be included.

Around 70,000 people applied for scholarships… and many of them enthusiastically took to social media to argue their case for why they deserved a spot. In the process, they provided a masterclass in hype-building, and largely shielded y00ts from accusations that the project was simply using influencers to amplify excitement around it (which, admittedly, many projects do).

The NFT sector thrives on FOMO, and the y00ts/DeGods team doesn’t just know this, it worked out how to harness it… and how to exploit a moment when many ETH projects are holding off on minting because of the looming Merge — which happens next week — and the uncertainty surrounding it.

DeadGods holders (more on them below) can claim toobs, and can do so without a deadline, but the price increases gradually over time, so they’re incentivized to either move fast… or sell their toob to someone who does intend to burn it. Minting of t00bs opened on Monday, and participants had to use 375 $DUST (~$700) to mint. $DUST is the DeGods token that those staking their DeGods have been earning, and which until now was used to “transcend” a DeGod into a “DeadGod.”

Now, sure, $6 million pales in comparison to the secondary market activity seen by drops like Yuga Labs’ Otherside (which did $860 million in 48 hours)… but we’re deep in the icy embrace of a crypto and NFT winter, frens, and Solana enjoys a fraction of the trade volume, mindshare, and market share that Ethereum does.

Moreover, one of Solana’s selling points, ostensibly, is that it offers more affordable entry points than many projects on Ethereum do, so comparing it to top-performing projects priced in ETH is hardly fair. Though, with y00ts sibling project DeGods’ floor price now hovering around 430 SOL (~$13,700), “affordable” is increasingly relative.

Incredibly, there was even more news out of the DeGods ecosystem this week. Dust Labs, a subsidiary/startup connected to y00ts and DeGods, announced it had closed a capital raise of $7 million from the likes of FTX Ventures, Magic Eden (the OpenSea of Solana), and Metaplex, among others.

What exactly the company plans to do with the funding is unclear, but it says it will “build out the $DUST ecosystem” that surrounds DeGods and y00ts… and given those projects’ massive popularity right now, clearly that’s enough incentive for many investors and NFT collectors alike to open their pocketbooks.

🤖 We say aye, aye, to AI 🦾

Looks rare 🖼

Degeneratively yours 🧟

We’re delighted to introduce a new column from self-described “Washington and Wall Street refugee” and web3 investment analyst and expert, Gregg Schoenberg. Each week, Gregg will take a deep dive into one of three key areas degens should care about:1. Connecting macroeconomic events to crypto, NFTs, and tokens in general,2. Embracing good stuff you might have missed, and3. Providing insights that can help degens run the world.

Here’s a taster of what to expect:

Read the rest of Gregg’s debut column for us over here.

Probably nothing 💎

Ground control to Major… Vom? 🤮

Usually, it’s a cause for celebration when an iconic celebrity launches their first NFT collection and all the proceeds are going to charity. But when that celebrity is deceased, it’s more of a cause célèbre. That’s been precisely the response from superfans to the news this week that David Bowie’s estate is launching a collection of NFTs celebrating the musical maverick’s life.

Given how rabid Bowie fans are, we’re not surprised, but we have to wonder whether someone as enthusiastic and prescient about new technology as Bowie was would really be opposed to the move. Especially given all the funds are going to CARE, a charity his widow Iman enthusiastically supports and represents.

Then there’s the fact the roster of artists contributing to the project includes the likes of Fewocious, Nadya Tolokonnikova (of Pussy Riot fame), and Osinachi, all of whom embrace queerness and gender fluidity… another hallmark of Bowie’s aesthetic. Fans may be angry, but it’s hard not to chalk this one up as a win for web3.

Swipe for an NFT 💳

Cryptocurrency exchange Gemini, (which is famously owned by the Winklevoss twins), also owns NFT marketplace Nifty Gateway (which, incidentally, is also run by twins with an awkward surname: the Cock Foster brothers). Earlier this year, Gemini started offering a credit card where users can earn rewards in crypto. So it was only a matter of time before the twain would meet.

To encourage signups, Gemini is now promising to airdrop one of three, limited edition, 3D, animated NFTs created by Belgian artist Stijn Orlans to cardholders who spend $1,500 on their Gemini Credit Card during the first month after it’s activated.

Considering the current floor price for Orlans’ pair of existing projects on Nifty Gateway is $249, and most fee-free credit cards only offer around a $200 signing bonus (usually after three months of spending), it’s not as bold a strategy, as it might seem, Cotton. We’ll be watching to see if it pays off for ’em, nonetheless.

Bag boosters 💸

The week that was (1 - 8 Sep, 2022) 🗓

It should surprise absolutely no one who’s been paying attention that y00ts soared to the top of the charts this week. Notably, this is the first time we’ve seen three (!) Solana projects in top 10 - y00ts, ABC(abracadabra), and DeGods — signaling that ETH may not always be the dominant currency for NFTs. We’re not saying Solana is going to unseat the champ, but we are saying it’s a reminder someone could. As every champion knows, staying on top forever is hard.

Also notable this week was Bored Ape Yacht Club slipping out of the top five thanks to a downturn in volume… but with a floor price of 72.69 ETH (~$119,000), we don’t expect parent company Yuga Labs is losing too much sleep over it.

🧑‍🌾 You can’t eat engagement 🥕

NGMI? ☄️

LG’s NFTs for TVs are hard to seize 📺

Way back in January, we reported on Samsung’s plans to get into the NFT game by partnering with Nifty Gateway. Folks with Samsung’s latest and fanciest TVs can now browse, display, and “interact” with the NFT marketplace from the comfort of their couch. Now, arch-rival LG is following suit, but with a more ambitious approach.

Rather than a partnership with an existing player, LG’s creating its own marketplace, dubbed LG Art Labs, that will let users “buy, sell and enjoy high-quality digital artwork” from their LG TV.

So far, so bold. But things start to come apart a bit when you dig into the details. First, LG’s marketplace uses Hedera; a “blockchain alternative” seemingly aimed more at enterprises than consumers. Second, to purchase NFTs, users need to use LG’s own, forthcoming Wallypto wallet and load it with USDC.

LG does get some points for encouraging sculptor Barry X Ball to make his first NFT collection for its platform exclusively (it drops on September 22)... but will that be enough to tempt degens to not only buy a new, pricey TV to access Ball’s work… but also to embrace a platform with (as yet) no secondary market worth mentioning and a brand new custodial wallet? Those are a lot of hoops, even by NFT standards.

To the moon 🌛

• The U.S. states of Pennsylvania and Washington have issued guidance on the sales tax implications of buying and selling NFTs. Each state in the U.S. sets its own sales tax in much the same way it does income tax and other levies.

• In the latest instance of a fashion brand entering web3, luxury cobbler, Daniele Uribe, is releasing her first NFT collection later this month. Each NFT will cost 0.03 ETH (~$50) and will afford the holder discounts on new Uribe footwear, access to VIP events, and even the chance for one-on-one time with Uribe herself.

• A new fantasy sports game powered by NFTs called Hellebore has launched with baseball, American football, and soccer (or what the Europeans call football, despite the state of the Euro/Dollar exchange rate) to start. Each sport gets 6,000 players, mintable for 0.03 ETH (~$50) each, and the company says it plans to add fantasy leagues for other sports starting later this year.

• Bored Ape Yacht Club co-founder, Gordon Goner, hinted this week that ApeFest 2023 could be a combination of IRL and virtual events. With the Otherside metaverse getting slicker with each new public test, this is hardly surprising, though navigating licensing and streaming agreements for the performing artists will likely be a logistical nightmare.

• Gisele’s husband, Vitalik fan, and NFL legend Tom Brady dropped a collection of 2,500 NFTs called the Tom Brady Signature Experience today on Autograph. If it succeeds, expect to see myriad sports stars doing similar.

Bedtime reading 📚

The Merge (the moment the Ethereum network switches from proof-of-work to proof-of-stake) is less than a week away. To help you prepare and answer any lingering questions, Coinbase has put together an excellent TL;DR guide to what to expect, complete with a countdown timer.

This one’s more of a niche read, but it takes all sorts, anon. The White House has released a 46-page report outlining changes it would like to see all blockchains make to ensure they’re more environmentally friendly.

🎨 Keep on keeping on, anon 💪

Goats only 🐐

Whether you made the y00tlist or it passed you by completely because you weren’t reading this newsletter two weeks back, you should be watching or listening to Goats and the Metaverse.

In each episode, collectibles OG and entrepreneur Stan “The Goat” Meytin and Metaversal co-founder and CEO Yossi Hasson talk about digital and IRL collectibles, NFTs, and the week’s news worth knowing.

This week, they unpack the hype around y00ts, DeGods, DeadGods, and the man they call Frank. Check out the latest episode here:

Aside from providing invaluable insights into digital art and collectibles, Stan and Yossi are also putting together a collection of NFTs dubbed “The Goat Vault.” When the show hits 5,000 subscribers on YouTube, one of those lucky subscribers will win the contents of the vault which, at last count, was valued at just over 10 ETH (~$16,400).

Prefer listening? Check out Goats and the Metaverse on Apple Podcasts, Spotify, Anchor, or wherever you get your podcasts.

The Metaversal Speed Date 🍸

Whenever they’ll let us, we ask a prominent (or emerging) NFT artist five questions. This week it’s the turn of computer science student and generative artist Chris Barber, AKA @code_rgb. His work is dynamic and interactive, celebrating the beauty that arises from randomness when math*code=art.

Read the rest of the interview over here.

LFG 🎉

Money <> mouth 💸

Each week we offer you a look at an NFT project we’ve invested in and the motivation behind it. This week we’re looking at 'cryptic_colouring_0110' by neural artist, Sofia Crespo.

It's a beautiful digital painting that perfectly illustrates the use of artificial intelligence as a brush to blur the lines between predator, prey, and environment. Moreover, it’s precisely the sort of artwork Metaversal looks for: an iconic, genre-defining piece, stunningly executed. We love Crespo’s work and picked up two more pieces alongside this one. To see them all, and for more of our thinking behind the move, check out the Twitter thread above.

Follow for more 🐦

Congrats on making it all the way down here, fren!

If you’re reading this and would like more updates and insights from the Metaversal team, we encourage you to follow @HelloMetaversal on Twitter. We tweet insights from our investment team, offer analysis and insights into the state of the NFT market, and show you what we’re collecting ourselves, often as it happens.

We also really, truly, deeply value your feedback. So let us know which of this week’s stories left you cold, steaming mad, or lukewarm, and what you’d like to see more or less of, and we’ll see if the devs can do something.

IYKYK 😉

Until next time, see you in the Metaverse.

* P.S. The answer to the question posed in this week’s newsletter header is “nothing.” Sorry. But maybe one day LG will let you buy y00ts with its TVs. Stranger things have happened.