Beeple Sold Out. So What?

Also: Tesla's Bitcoin node, Snoop's NFTs, BitClout's cease-and-desist.

What you need to know today in crypto and beyond  March 24, 2021 Sponsored By:     If you were forwarded this newsletter and would like to receive it, sign up here.   Send feedback to daniel.kuhn@coindesk.com – we'd love to hear from you! Today's must-read Top Shelf BIT AND DESIST: Anderson Kill, a prominent crypto law firm, has sent a cease and desist letter to the person thought to be behind BitClout, a controversial blockchain social media project that seeks to profit from (and help monetize) other people's Twitter profiles. The letter is addressed to Nadar Al-Naji, claiming the former Basis founder breached California's civil codes – including a right to privacy – with his latest project. REGULATORY PERCH: Payments platform Wirex has temporarily suspended onboarding new U.K. customers following discussions with U.K. financial regulator the Financial Conduct Authority (FCA). The crypto-friendly firm will use this pause to strengthen its anti-money laundering (AML) controls. The FCA took an expanded role over money transmitters in January 2020, using its perch to introduce a number of crypto-specific rules, like a ban on derivatives. Meanwhile in Russia, the country's financial surveillance agency, Rosfinmonitoring, will now track all bitcoin to fiat transactions in the country. NFT ROUNDUP: Cryptocurrency exchange Crypto.com will launch a non-fungible token (NFT) platform this month featuring content from the likes of Snoop Dogg, Lionel Ritchie and Boy George. Addressing NFT environmental concerns, South Korea's largest social gaming app, GameTalkTalk, has started using blockchain platform Enjin for the creation of low-carbon tokens. Lastly, Justin Sun has contributed $6 million to the Open Earth Foundation by buying Beeple's "green" NFT. BIG BTC: Elon Musk tweeted that Tesla vehicles can now be purchased using bitcoin, which the car manufacturer intends to hold rather than convert to fiat. Musk added that Tesla operates Bitcoin nodes directly using internal and open-source software. In other news, some $806 million worth of bitcoin left Coinbase Pro, raising the possibility of another large institution making a buy.   – Daniel Kuhn Overheard on CoinDesk TV Sound Bite "By definition, if you want to become one of the biggest crypto exchanges you need to play in the biggest crypto market – especially for derivatives trading – that is China." Antonio Juliano of decentralized exchange dydx said Wednesday on CoinDesk TV's First Mover. A message from Nexo Your digital assets deserve a savings account in their BEST INTEREST. Leading crypto lender Nexo treats you, your crypto and your fiat to industry-best Crypto & Fiat services, featuring:    * Up to 12% interest on digital assets, paid out daily! * Yields available on BTC, ETH, LTC, BCH, XRP, XLM, EOS, TRX, LINK, BNB, PAXG, USDT, USDC, TUSD, PAX, DAI, HUSD, GBP and EUR. * No minimum or maximum limits on funds deposited, offering infinite opportunities to earn. * #ZeroFees on all transactions. * Military-grade wallet security and top-tier insurance on all custodial assets with SOC 2 Type 2 certified crypto custodian BitGo.   Get started at nexo.io A message from CoinDesk Introducing 'Coin Toss,' debating the future of money on CoinDesk TV   From the world leader in crypto news and events, the all-new CoinDesk TV covers the rapidly evolving world of digital finance and its role in the global economy.   Hosted by CoinDesk Podcasts Managing Editor Adam B. Levine, "Coin Toss" sets the stage for debate between guests with opposing views on policy and regulation, privacy and data integrity, fraud and crime and more.   Watch "Coin Toss" Wednesdays at 10:30 a.m. ET on YouTube or CoinDesk.com. What others are writing... Off-Chain Signals New York Times investigates complaints about Coinbase's customer service. "There's nobody on the other side," one customer reportedly said. Decrypt reports "NFT" Google searches have hit levels last seen during 2017's initial coin offering boom. This might suggest growing retail interest. However, Bloomberg reports the money in NFTs is likely just cycled from elsewhere in the crypto economy. Canadian bitcoin ETFs are reportedly breaking trading records. (Protos)   – D.K. A message from NEM GROUP     Symbol from NEM, the next-generation public blockchain, launched March 15, marking a milestone in NEM's vision for a new economic and digital system. Boasting enterprise-grade security and programmability, Symbol smooths business friction and increases the flow of data  to supercharge the creation, exchange and protection of assets. NEM Group - comprising NEM Software, NEM Trading, and NEM Ventures - nurtures a strong and healthy ecosystem to shape the development and future of blockchain technology for generations to come. Putting the news in perspective The Takeaway Beeple Sold Out. So What? Not long after Mike Winkelmann, aka Beeple, received his $53 million in ether (ETH) for selling a non-fungible token (NFT) through Christie's, he reportedly converted the cryptocurrency into fiat. What was seen as a vote of confidence for this new technological medium – it was the third-largest art sale ever, right behind Jeff Koons' "Rabbit" and David Hockney's "Portrait of an Artist (Pool With Two Figures)" – might now be seen as a betrayal.   He quite literally sold out.   Beeple told The New Yorker on Monday, "I'm not remotely a crypto-purist. I was making digital art long before any of this [nonsense], and if all this ... NFT stuff went away tomorrow I would still be making digital art."   I was curious what other artists have done with their newfound fortunes made during the explosion of interest in NFTs. As competitive as any other art scene, NFT artists often face the added pressure of "crypto tribalism." They don't call it a blockchain for nothing.   Chris Torres, who sold several tokenized versions of the classic Nyan Cat meme for upwards of 400 ETH, said he was "surprised" to learn that Beeple had cashed out. Torres said he took out a small portion of his proceeds to pay for home repairs – including "a brand new fence because my current one is falling apart" – and other expenses. Some went to buy other people's NFTs, like Paul Robertson's, whose work has been featured on Cartoon Network.   The only thing Torres has splurged on was an electric bicycle, he said over email. The rest is staying in cold storage.   New York City-based artist Olive Allen has been making and selling NFTs since 2019. While her returns haven't been staggering, her steadily built portfolio is enough "to exist" in New York City. She says she mostly hodls "with the exception of the money I need to cover my monthly expenses, stuff that enhances my art practice (like new graphic card), medical bills & etc."   Then there's Beeple's contemporary, Ryder Ripps, who came to NFTs after a long career in digital art. He said he keeps about half his profits in ETH.   I reached out to Beeple to see what he's done with the proceeds from earlier NFT sales but haven't heard back. To be sure, Beeple has long been skeptical of the current moment. He said on CoinDesk TV the morning after the historic sale that NFTs were a bubble. And he has long been thinking about how to bring his digital works into the physical world.   Beeple is anything but a turncoat, in fact he's been remarkably consistent. For him, NFTs are a general purpose technology whose successful adoption does not hinge on the success or actions of any one artist.   It's a mentality I think would be good for the rest of the crypto industry to adopt. Instead of warring over which projects or protocols will reign supreme, it might be better to let the technology serve you.   Comparing NFTs to the early web, Beeple told Fox News: "There was a bubble. And the bubble burst. And it wiped out a lot of crap – but it didn't wipe out the Internet. And so the technology itself is strong enough where I think it's going to outlive that."   Whatever outlives NFT mania in 2021 will only be worth what someone else is willing to pay for it.   – D.K. A message from CoinDesk What are bitcoin and ether's value propositions for investors? A new report by CoinDesk Research explains how the two most popular cryptocurrencies by market capitalization behave in the market, how their infrastructure differs, and what on-chain metrics say about them.   Download "Bitcoin + Ether: An Investor's Perspective" from the CoinDesk Research Hub. The Chaser... ATTENTION: Scammers have been sending fraudulent emails with links to sites disguised to look like coindesk.com. If you are in doubt about a link, type https://www.coindesk.com directly into your browser; do not copy and paste. Remember, if something seems too good to be true, it probably is. 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