Daily Digest 12/30
Insight on the biggest stories of the day. “Neither this post nor any other on cryptofal.com should be taken as financial advice. It is not.”
Kevin O'Leary says his crypto holdings could reach 20% of portfolio
Mr. Wonderful is talking about crypto again this time upping his anti saying that when we get clearer regulations on stablecoins then he is ready to increase his crypto portfolio allocation to 20%. He also sees US dollar-backed stablecoins as an effective hedge against inflation.
”When inflation is 6%, you're buying power 12 months from now is 6% less. And that's all lot […] I'm a huge advocate for solving this problem with stablecoin.” until he gets the regulatory clarity he is looking for then he cannot invest more than 5% of his portfolio into crypto.
O’Leary also holds Bitcoin and Ethereum but because of their crazy volatility, he does not think that they will make up a large portion of institutional investors’ portfolios. “You're not going to get there to a 20, 30% in Bitcoin in an institutional or sovereign mandate, you're just not. Stablecoins have that potential,” said O’Leary.
Twitch co-founder's gaming-focused NFT platform Fractal officially launches
Recently Twitch launched its idea for an NFT marketplace called Fractal and today it officially went live. Fractal is a primary and secondary market for NFTs that have utilities focused on video games.
This will allow gaming companies to release their NFTs and also allow buyers the ability to resell in the same peer-to-peer marketplace. “NFT's are like the new Kickstarter. A lot of gaming companies are saying, ‘Hey, this is a great way to engage our audience and reward people who are early,” Justin Kan, Co-founder of Twitch said.
Game developers will have to apply to Fractal beforehand to get approved for selling their NFTs on the marketplace. This is a good practice to make sure that the users are protected from any bad actors trying to take advantage of the opportunity.
Fractal will be running on the Solana blockchain because of its high speed and low fees and will feature a wide range of games like massively multiplayer online (MMO), multiplayer online battle arena (MOBA, and role-playing games (RPG).
“Digital assets are clearly valuable because people would buy gold in World of Warcraft years ago because they wanted it. And so now, the question is, ‘Does looking open and accessible, programmable and owned by the users make it more valuable? I think the answer is yes. And it's just a matter of time before more and more people adopt it,” Kan says.
NFTs have taken off this year with many big companies buying in such as Visa, Budweiser, Adidas, and many more. Some of the projects like the Bored Ape Yacht Club are going for no less than $200,000.
Daily transactions started rising rapidly over the summer as that was one of the first signs of life after the China mining market crackdown that sent the market into shambles. While buying and selling did slow down for a bit daily transactions are well on their way back to the all-time highs that they had hit not too long ago.
People like NFTs for a number of reasons and probably an equal amount of people have nothing good to say about them. As a whole, this sector of crypto has brought the most attention to the space and has kept people more interested than the overly technical and confusing aspects of many regular tokens that are out there.