NORN.xyz Newsletter Week 51

The holiday season is upon us, but as always there’s stuff happening left and right in Web3. Read the most important headlines here.

TL;DR

• Nigeria legalizes Bitcoin and cryptocurrency, again

• Binance US acquires Voyagers assets in $1bn deal

• Polygon partners with Mastercard to create “NFT Debit Card”

• Starbucks Odyssey is off to a good start

• How do Decentralized Exchanges work? New year, new (self) custody

• SBF is having the worst time in Bahamian prison

• Influencer Logan Paul exposed for massive scam Crypto Zoo

Business & Markets

Nigeria to legalize Bitcoin, again?

Back in February 2021 Nigeria prohibited regulated financial businesses from dealing with Bitcoin and cryptocurrencies, this happened the same year they launched the CBDC (ENaira). Around 22 months later the reality is different. According to several reports, including an article from institutions of Nigeria, it seems that Nigeria will soon pass a law, which will legalize the use of Bitcoin and other cryptocurrencies.

Read more about the bill here.

Binance US Acquires Voyagers Assets

That’s right. Binance acquires bankrupt crypto exchange Voyagers assets in a $1 billion deal. Voyager paused withdrawals in July after the blowup of crypto hedge fund Three Arrows Capital. Voyager had a reported $650 million loan outstanding to Three Arrows, that they proceeded to default on. Binance has seized the opportunity to continue their bear market expansion.

Innovation & Launches

Polygon partners with Mastercard and Hi to create NFT debit card

An NFT debit card?!? Sounds like big steps for adoption, but what does it actually mean? Like some other flagship crypto cards, the card will support both crypto and FIAT payments. The NFT component refers to minting your own NFT as the cover of the card. While it is certainly a cool feature, calling it an NFT debit card might be a stretch… Users who want to access this card need to create an account with Hi and choose silver or higher as their plan.

Read more about the card here.

Starbuck rewards platform on Polygon is off to a good start

The famous coffee shop has launched an NFT-based rewards program. Starbucks Odyssey is the name of their new Web3 platform, which is for now running in beta-testing mode. There’s a variety of benefits that can be unlocked by collecting stamps and points. To mention a few, Starbucks Odyssey offers online drink-making classes and trips to Starbucks’ coffee farm in Costa Rica. 

In 2023 they plan to launch an NFT marketplace, so users can buy and sell their “Journey Stamps” (Polygon NFTs), which can be earned by “Completing activities and amassing points” 

Read more here.

Guides & Tutorials

How does a Decentralized exchange work?

Decentralized exchanges (DEXs) are a type of cryptocurrency exchange that operates on a blockchain and does not rely on a central authority. This means that users can trade cryptocurrencies directly with one another, without the need for a trusted third party to facilitate the transaction.

Our favorite DEX is the Ethereum-native Uniswap.

Here's how Uniswap works:

Users can then choose which ERC-20 cryptocurrency they want to buy or sell, and at what price.

When a user wants to make a trade, they submit a request to the smart contract. The smart contract then executes the trade by automatically matching the user with another user who wants to buy or sell the same cryptocurrency at the same price.

The smart contract calculates the amount of cryptocurrency that needs to be exchanged, and the transaction is recorded on the Ethereum blockchain.

The trade is complete, and the user receives their newly-purchased cryptocurrency in their wallet.

One of the main benefits of using a decentralized exchange like Uniswap is that it allows users to retain control of their assets. Because the exchange does not hold users' funds, there is no risk of funds being lost or stolen due to a hack or other security breach. Additionally, decentralized exchanges are typically more transparent than centralized exchanges, as all trades are recorded on the blockchain and can be easily viewed by anyone.

Miscellaneous

SBF is having the worst time in Bahamian prison

It has now been around 1.5 months since the collapse of giant crypto exchange FTX and over a week since the arrest of CEO and Founder Sam Bankman-Fried (SBF). SBF is currently being held at Her Majesty’s Fox Hill prison in the Bahamas, which is said to be one of the worst places to be held captive globally. SBF has reportedly been faking an illness to stay out of his cell during his time in Fox Hill. SBF has now agreed to be extradited to the US, where he might be facing 30 years to life in prison.

Influencer Logan Paul exposed for massive Crypto Zoo scam from 2021

Citizen journalist and YouTuber Coffeezilla has released a video series detailing Logan Paul's biggest scam in crypto & NFTs, “Crypto Zoo”

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As is often the case when influencers enter the crypto space, they’re in it for a quick buck rather than actually delivering something of value, so it comes as no surprise that Logan Paul's Crypto Zoo project is a total scam. Not only was he earlier exposed for using stock photos for the NFTs in Crypto Zoo (watch the video here). But from recent videos featuring his manager and the rest of the team at Crypto Zoo, it has come to light that the project has basically been rugged and that it was more or less a scam from the get go… While this really shouldn’t be a surprise coming from someone like Logan Paul, it’s quite surprising how much money people invested in the project.

Watch the video series here.