This week crypto markets continue to reckon with the fallout of the FTX collapse and the Fed steps in while also exploring a digital dollar. Nike launches a home for virtual creations and continues exploring blockchain and Sony may be as well. Also, a number of fashion companies are teaming up on virtual try-on, and Nreal Air offers support for major gaming consoles.
An Eye on the Charts
Markets are still rolling following last week’s FTX drama (which is still ongoing, but we’ll get to that). Bitcoin seems to have more-or-less stabilized around $16.5k, while Ethereum is still below $1.5k and trending down. Scrolling through crypto in general shows primarily red lines. This is a good opportunity to talk about markets and the health of crypto as a movement.
It’s easy to fall into the trap of thinking that prices trending down means that crypto is sick, but that’s not necessarily the case. The value of crypto reflects what is going on in the markets. But, in times of uncertainty, people are more likely to store their crypto off of exchanges, whether that be in custodial wallets or in cold storage. So, the markets can be down and crypto itself can be in decent health.
An Eye on the Fed
Last week the FTX drama was primarily impacting FTX. In the past week, however, a number of other exchanges and projects that did business with FTX have announced problems, which contributes to the crypto market’s inability to rebound from what at first seemed like a largely isolated incident. It has also contributed to mounting calls for greater regulation of the crypto market.
On Wednesday, the House Financial Services Committee announced a bipartisan hearing on “the collapse of FTX and the broader consequences for the digital asset ecosystem” to take place next month. A senate bill would also increase regulation of “financial innovation” and “digital assets.” Critics have pointed out that FTX isn’t based in the U.S., but a number of affected companies are.
That’s not all
While some of the country’s top financial officials are turning a harsher gaze on crypto, others are still curious. The day before the bipartisan hearing on FTX was announced, the Federal Bank of New York announced a 12-week digital dollar pilot program in partnership with a number of institutional banking giants including Wells Fargo, Citi Group and Mastercard.
The Biden administration had expressed interest in a “digital dollar” earlier this year, which has so far led to a series of non-committal reports, but nothing so drastic as an actual pilot program. They are, no doubt, eager to see what comes of the New York Fed’s program.
Emerging Tech in Fashion
While emerging tech may be struggling in finance, it seems to be thriving in fashion. Clothing giant and digital fashion pioneer Nike announced a new “home for Nike’s virtual creations” that went live today for fans to “create, collect, trade, and flex.” Also, a big shout-out to Polygon, the blockchain that Nike chose to host its experiences.
Nike products are also on TRYO, a new site for virtual try-on. The site is also home to 3D models of products from Gucci, BOLLÉ, RAY-BAN, and others. The models can be manipulated on the site with a mouse, touch-screen, or touch-pad, but can also be viewed on a user through their device camera.
Emerging Tech in Entertainment and Gaming
This is also a high time for entertainment in gaming. Nreal, a Japanese company with products available on Amazon, yesterday announced support for PS5, Xbox Series X, and Steam Deck, as well as a slew of other software and OS updates on its Air glasses. The glasses primarily offer virtual screens, so bringing integrations to top-shelf gaming consoles is certainly thrilling for the company as well as gamers.
There are also rumors that Sony is investigating NFTs and blockchain for gaming on its PlayStation platform. That could take the form of art for player profiles and social content, but it could also be for content like in-game assets and collectibles.