Jack Kubinec

CryptoPunks, the pixelated NFT collection that helped drive 2021’s NFT art craze, is now the subject of a documentary five years in the making.&nbsp;



Indie filmmaker Sherone Rabinovitz has been working on a CryptoPunks film since March 2018 when he sat down for an interview with the collection’s founders, John Watkinson and Matt Hall. Rabinovitz released an extended trailer on Thursday for the forthcoming documentary, which contains a four-minute cut from the 2018 interview and previews the film’s other themes. 



In the trailer, Watkinson recounts creating the punks’ accessories over the course of a month before launching the project. According to Watkinson, CryptoPunks weren’t a finished product when they launched.



“I had a few more things [to change] and all of a sudden it was like, ‘Oh wait, we’re kind of through a one-way door here. We deployed the contract already,’” Watkinson says in the 2018 interview.



The <a href="http://vimeo.com/user73645899">trailer</a> goes on to nod to the cultural phenomenon that was to come just a few years later: the conferences, celebrity adoption, spinoff projects and <a href="https://blockworks.co/news/sothebys-cryptopunk-auction-canceled-after-seller-withdraws">auction house intrigue</a> that comprised the rise of CryptoPunks. 



Yuga Labs, the company behind Bored Ape Yacht Club NFTs, acquired CryptoPunks’ intellectual property from Watkinson and Hall in 2022, with the pair <a href="https://www.larvalabs.com/blog/2022-3-11-18-0/yuga-labs-acquires-cryptopunks-and-meebits">writing</a> at the time that they weren’t well-suited to the “day-to-day management that these kinds of projects require and deserve.”&nbsp;



The CryptoPunks floor price has trended sideways since April of this year, sitting at 45.19 ether (<a href="https://blockworks.co/price/eth">ETH</a>) or around $75,000 at the time of writing.&nbsp;



Rabinovitz’ documentary does not yet have an official release date, and it comes as early interest in NFT-inspired films has cooled off: Coinbase’s Bored Apes <a href="https://nftlately.com/coinbase-puts-bored-ape-movie-trilogy-on-hold/#:~:text=It%20has%20yet%20to%20get,the%20team%20behind%20the%20project.">movie</a> is currently on hold, and Reese Witherspoon’s <a href="https://www.protocol.com/bulletins/reese-witherspoon-nfts">partnership</a> with World of Women is yet to yield any releases.&nbsp;



Rabinovitz’ documentary is meant to bring CryptoPunks’ story outside of the cryptosphere.



“[W]hile many of you crypto-natives might know a bit of it, the rest of the “normie” population out there *still* does not,” the filmmaker <a href="https://x.com/Sherone33/status/1707292545204596987?s=20">wrote</a> on X.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Start your day with top crypto insights from David Canellis and Katherine Ross. <a href="https://blockworks.co/newsletter/empire">Subscribe to the Empire newsletter</a>.

Trailer released for CryptoPunks documentary 

Morgan Chittum

<div id="highlights-block_6247165f3c005" class="highlights">
 <ul>
 <li>The loan has a 10% APR with a 90-day duration period</li>
 <li>MetaStreet, which helped facilitate the loan, previously announced an NFT-backed loan of $8 million</li>
 </ul>
 
</div>



The pseudonymous consignor who <a href="https://cms.blockworks.co/sothebys-cryptopunk-auction-canceled-after-seller-withdraws/" target="_blank" rel="noreferrer noopener">withdrew</a> his lot of 104 CryptoPunk NFTs at Sotheby’s in February has taken out an $8.32 million loan backed by the same blockchain-based collectibles, Blockworks has exclusively learned.



The loan, which was facilitated by NFT (non-fungible token) lending protocol MetaStreet on marketplace NFTfi, has a 10% annual percentage rate (APR) with a 90-day duration.



The group of Punks, which were first acquired together in a single transaction by anon collector “0x650d,” have an estimated value of $20 million to $30 million, per a release from Sotheby’s <a href="https://cms.blockworks.co/sothebys-set-to-auction-off-104-cryptopunks-valued-at-20m-to-30m/" target="_blank" rel="noreferrer noopener">announcing the auction</a>.



The consignor pulled his lot minutes before the sale was slated to begin at Sotheby’s, shocking those in the New York auction room at the time.



Derek Parsons, senior press officer of Sotheby’s Americas, told Blockworks in a Feb. 23 email that the lot was withdrawn before the sale after “discussions with the consignor.”



“Shortly after pulling the Sotheby’s auction last month, I began looking for a way to retain my CryptoPunk exposure while simultaneously unlocking liquidity,” 0x650d told Blockworks in a statement.



Released in 2017 by studio Larva Labs, CryptoPunks currently have a floor price of $231,196 or 68 ether, according to blockchain data dashboard <a href="https://nftpricefloor.com/cryptoPunks" target="_blank" rel="noreferrer noopener">NFT Price Floor</a>.



&#8220;The demand for NFT loans keeps soaring and is testimony to the fundamental value borrowers and lenders ascribe to NFTs as a new asset class here to stay,” Stephen Young, founder and CEO of NFTfi, told Blockworks.



Collectors want to free up capital “more efficiently” and don’t want their assets to accumulate “virtual dust,” according to MetaStreet co-founder and CEO David Choi.



“I think [NFT] borrowing markets will just grow bigger and bigger, which means its purchasing power will increase,” Choi previously told Blockworks. “It’s like instead of putting all of your money into buying a house, you get a mortgage, which means you don’t have to pay that 90% until later. [With MetaStreet], I think we’re extending the purchasing power of the entire industry.”



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Start your day with top crypto insights from David Canellis and Katherine Ross. <a href="https://blockworks.co/newsletter/empire">Subscribe to the Empire newsletter</a>.

NFT Whale Who Ditched Auction of 104 CryptoPunks Lands $8M Loan

Jacquelyn Melinek

<div id="highlights-block_621fa25329d98" class="highlights">
 <ul>
 <li>The government has not provided additional information about what the Thursday airdrop will entail</li>
 <li>Since Ukraine launched its unconventional crowdfunding efforts on Feb. 26, it has accumulated over $30 million from about 50,000 donations</li>
 </ul>
 
</div>



Update: Ukraine has since <a href="https://cms.blockworks.co/ukraine-cancels-proposed-airdrop-after-receiving-record-donations/" target="_blank" rel="noreferrer noopener">called off the airdrop</a> for its crowdfunding campaign contributors. Ukrainian Vice Prime Minister Mykhailo Fedorov tweeted the cancellation just 29 hours after the country made the initial airdrop announcement.



<hr class="wp-block-separator"/>



The Ukrainian government has confirmed an airdrop for anyone who contributes to its crypto donations by 11 am ET on Thursday, March 3. The potential reward for the global community of donors foreshadows new potential use cases for crypto across mainstream audiences.



For context, airdrops involve businesses or crypto projects providing free tokens or NFTs to their communities as a way to encourage adoption — in this case, to increase donations to the country. The government has not provided additional information about what Thursday&#8217;s airdrop will entail.



“Ukraine making history tomorrow by being the first nation state to airdrop a token to those that donated,” Luke Martin, host of The Coinist Podcast, <a href="https://twitter.com/VentureCoinist/status/1499049620705525760?s=20&amp;t=bYbdqAyuA1aMzljQlhA6Ow" target="_blank" rel="noreferrer noopener">tweeted</a> on Wednesday.



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">“Countries airdropping coins. Wild times.”</blockquote>



Ukraine launched its unconventional crowdfunding efforts on Feb. 26, just two days after Russia invaded the country. Since then, it has accumulated over $30 million from about 50,000 donations to its Ethereum, Polkadot and US dollar Tether wallets, as of Wednesday morning, according to <a href="https://www.elliptic.co/blog/live-updates-millions-in-crypto-crowdfunded-for-the-ukrainian-military" target="_blank" rel="noreferrer noopener">data</a> from Elliptic.



Additionally, the popular decentralized exchange Uniswap has created a “Donate to Ukraine” <a href="https://donate.uniswap.org/#/swap" target="_blank" rel="noreferrer noopener">feature</a> on its platform, which allows users to swap listed tokens into ether donations for Ukraine in a single Ethereum transaction. The exchange wasn’t available for immediate comment.



“The people of Ukraine are grateful to Uniswap,” Mykhailo Fedorov, vice prime minister of Ukraine and minister of digital transformation of Ukraine, said in a <a href="https://twitter.com/FedorovMykhailo/status/1498936977474965504?s=20&amp;t=KQCudLbW255ccianOlO9QA" target="_blank" rel="noreferrer noopener">tweet</a>.&nbsp;



Among those donations was a CryptoPunk NFT (non-fungible token) smoking a cigarette while wearing a blue hat and sunglasses. That NFT was worth about $200,000 and was sent to Ukraine’s Ethereum address.



Gavin Wood, who co-founded Ethereum and is the current founder of multichain protocol Polkadot and Kusama, also donated $5 million to the country, Ukraine <a href="https://twitter.com/Ukraine/status/1498733635083587584?s=20&amp;t=KQCudLbW255ccianOlO9QA" target="_blank" rel="noreferrer noopener">tweeted</a>.



&#8220;Bitcoin was created in a time of global adversity, the great financial crisis,” Matthew Le Merle, managing partner of Blockchain Coinvestors, said to Blockworks. “Right now, in Russia and Ukraine, the world is coming apart for tens of millions of people. Fortunately, Bitcoin is there for them and their families just when they need it.”



The crypto crowdfunding and airdrop point to a potential new way for mainstream adoption of the industry through traditional organizations such as government agencies.



&#8220;Airdropped tokens will forever serve as a public and immutable proof of something,&#8221; Haohan Xu, CEO of Apifiny, said to Blockworks. &#8220;Often these tokens will not only be receipts, but something of value.



In this case, the airdrop is not just a token of appreciation from Ukraine, but could also be valuable, Xu said.



&#8220;Donations are a simple point A to B transaction,” Xu noted. “As this situation develops in Eastern Europe, we will perhaps see blockchain-based [decentralized finance] apps do more good, such as facilitating financial access while centralized infrastructure is down.”



Funding the Ukrainian national defense through a global cryptocurrency crowdfund and airdrop is the modern day “war bond,” Nick Tomaino, general partner at 1confirmation, <a href="https://twitter.com/NTmoney/status/1498976681242947588?s=20&amp;t=Cx5qjKjeUuxJpv6mBan8qg" target="_blank" rel="noreferrer noopener">wrote</a>.&nbsp;



In the past, countries including the United States, Germany and Canada all used war bonds to raise money to fund participation in wars.



These bonds were typically limited to domestic involvement, so only Americans could buy Liberty Bonds, for example, Tomaino said. However, cryptocurrency-based crowdfunding and airdrops allow for anyone to participate globally.



“Cryptocurrency enables Ukraine to easily raise funds from anyone in the world who wants to support protecting their sovereignty — not just Ukrainians,” he said.



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">“This has the potential to help deescalate the dangerous situation the world is currently [in.]”</blockquote>



While it is hard to determine the short-term impact from Ukraine’s crowdfunding and airdrop, the long-term impact can be very positive for blockchain adoption, Le Merle said.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Start your day with top crypto insights from David Canellis and Katherine Ross. <a href="https://blockworks.co/newsletter/empire">Subscribe to the Empire newsletter</a>.

Ukraine Government Prepares First-of-its-kind Airdrop to Crypto Donors

Ben Strack

<div id="highlights-block_62193a50cbbf3" class="highlights">
 <ul>
 <li>ConsenSys is building out its white-label NFT platform and is in talks with luxury and sports brands</li>
 <li>The company’s executive director of strategic initiatives details a potential future of “non-fungible everything”</li>
 </ul>
 
</div>



ConsenSys is seeking to use NFTs as a way to onboard the next wave of users into its <a href="https://metamask.io/" target="_blank" rel="noreferrer noopener">main product</a>, Metamask, as the company expects the segment to greatly broaden over time.



“We’ve aligned around a North Star to bring the next tens of millions of users into Metamask through NFTs,” Johnna Powell, global co-head of ConsenSys NFTs, told Blockworks.



Developed by ConsenSys, MetaMask is a mobile app and browser extension that functions as a cryptocurrency wallet for interacting with the Ethereum blockchain. The offering reported roughly 21 million monthly active users in November.



NFTs (non-fungible tokens) have quickly dwarfed the former focus on decentralized finance (DeFi), according to Tyler Mulvihill, ConsenSys’ co-head of global NFTs. NFT sales hit nearly $20 billion in 2021, compared to less than $100 million the year prior, according to Cryptoslam.



“They are fun, culturally relevant and a perfect playground to educate people about the promises of Web3,” Mulvihill said in an email.



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">“We plan on accelerating this journey using NFTs as a way to bring people into Web3 through purchasing and custody on MetaMask.”</blockquote>



In addition to looking to add Metamask users through NFTs, Powell noted the company’s focus on its white-label NFT platform.&nbsp;



ConsenSys <a href="https://cms.blockworks.co/consensys-acquires-treums-team-nft-platform/" target="_blank" rel="noreferrer noopener">acquired blockchain company Treum</a> and its NFT platform in October to advance its NFT technology offering for creators, brands, rights owners, game publishers, sports teams and leagues.



The company is currently in talks with one large brand owner in the luxury market and several in the sports realm, Powell explained.



“People are finally seeing that there are ways that you can own something digitally, and it’s provable, and it’s authentic and it’s immutable — and that didn’t exist before,” Powell explained.



<h3 class="wp-block-heading">The future of NFTs</h3>



Powell highlighted the potential of NFTs beyond collectibles, noting that a person’s resume, medical records or driver’s license could be NFTs.&nbsp;



“We’re looking at this very narrow, niche area, but we see a broad world opening up that could be essentially non-fungible everything,” she said.



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">“It’s just a far more efficient way to track records, to track anything you need to track provenance for.”</blockquote>



ConsenSys is also taking an interest in the financialization of NFTs and is exploring collateralization, fractionalization, swapping, borrowing and lending in the segment.



“Traditionally illiquid and infrequently traded assets like NFTs were hard to price,” Mulvihill noted. “By solving this problem, it allows people to borrow against their NFTs by collateralizing them.”



NFT platform Arcade matches blockchain art owners with prospective lenders, accepting collateral ranging from plots of virtual land to blue-chip collections such as Bored Ape Yacht Club and CryptoPunks.



Such a pricing fix would also enable people to swap NFTs more easily, Mulvihill added.



Some investors wanting access to popular NFT collections cannot afford the price such non-fungible tokens are commanding.&nbsp;



CryptoPunk #5822 sold for about 8,000 ETH, worth about $23.7 million, on Feb. 12, according to Larva Labs.



With the mainstream becoming priced out of popular NFT collections, Consensus believes it will see increased demand for fractionalized NFTs and participate in the upside by owning a piece of one.



“We think all of that is on the horizon,” Powell said. “None of it is really truly here yet, but we see it coming in the next one or two years.”



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Start your day with top crypto insights from David Canellis and Katherine Ross. <a href="https://blockworks.co/newsletter/empire">Subscribe to the Empire newsletter</a>.

Onboarding the Next Wave of Metamask Users Through NFTs

<div id="highlights-block_115dd61d8d1f64221c40b2bd051eb171" class="highlights">
 <ul>
 <li>The NFTs were valued at $20 million to $30 million</li>
 <li>The group of CryptoPunks were originally acquired in a single transaction by collector “0x650d”</li>
 </ul>
 
</div>



Sotheby’s did not auction off the 104 CryptoPunks originally slated for Wednesday evening. In a turn of events for the New York auction house, the bid was withdrawn.



Derek Parsons, senior press officer of Sotheby’s Americas, told Blockworks in an email that the CryptoPunks were withdrawn prior to the sale following “discussions with the consignor.”



“nvm, decided to hodl,” the pseudonymous consignor of the auction <a href="https://twitter.com/0x650d/status/1496646517003800578?s=20&amp;t=VNVK5V6cEDJmhAwPiZFIqw" target="_blank" rel="noreferrer noopener">tweeted</a> following Sotheby’s <a href="https://twitter.com/Sothebysverse/status/1496641937083969543?s=20&amp;t=EIa07KM8FifubypGLMT2DQ" target="_blank" rel="noreferrer noopener">announcement.</a>&nbsp;



The withdrawal announcement was made in the crowded auction room roughly 23 minutes after bidding was scheduled to commence. However, onlookers were encouraged to enjoy an afterparty with live music by DJ <a href="https://blockworks.co/news/what-are-seed-phrases">Seed Phrase</a>. 



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">nvm, decided to hodl <a href="https://t.co/WdQ5H7I0fl">https://t.co/WdQ5H7I0fl</a>&mdash; 0x650d (@0x650d) <a href="https://twitter.com/0x650d/status/1496646517003800578?ref_src=twsrc%5Etfw">February 24, 2022</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Two sources familiar with the matter told Blockworks that there were not enough bidders on the single-lot auction. Sotheby’s declined to comment on any logistics regarding bidders.&nbsp;



The group of CryptoPunks were originally acquired together in a single transaction by anonymous collector “0x650d.” CryptoPunks were released in 2017 by studio Larva Labs and currently have a floor price of $177,663, according to blockchain data dashboard <a href="https://nftpricefloor.com/cryptoPunks" target="_blank" rel="noreferrer noopener">NFT Price Floor</a>.



The NFTs (non-fungible tokens) were valued at $20 million to $30 million.



Michael Bouhanna, co-head of digital art at Sotheby’s, had earlier described the sale as a “first-of-its kind” due to its focus on CryptoPunks in the auction house’s Feb. 8 <a href="https://cms.blockworks.co/sothebys-set-to-auction-off-104-cryptopunks-valued-at-20m-to-30m/" target="_blank" rel="noreferrer noopener">announcement</a>.



“CryptoPunks are the original PFP [profile picture] series that created the template for other NFT projects that have followed, and which helped propel NFTs to the global stage as one of the most recognizable visual styles that have become synonymous with the digital art movement,” Bouhanna said in a statement.&nbsp;



Last year, Sotheby’s launched an NFT marketplace and sold $100 million worth of the blockchain-based digital collectibles, according to an annual <a href="https://cms.blockworks.co/sothebys-reports-100m-in-nft-sales-attracts-younger-tech-savvy-collectors/" target="_blank" rel="noreferrer noopener">report</a> from the auction house.



Bouhanna told Blockworks that NFT sales have expanded Sotheby’s audience reach to a “whole new group of collectors.”&nbsp;



“I think we will continue to see growth of new collectors at Sotheby’s who come to us via our NFT sales, as well as more art collectors more familiar with contemporary and modern art exploring NFTs as they continue to become more prominent in pop culture,” Bouhanna said.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Start your day with top crypto insights from David Canellis and Katherine Ross. <a href="https://blockworks.co/newsletter/empire">Subscribe to the Empire newsletter</a>.

Sotheby’s CryptoPunk Auction Canceled After Seller Withdraws

Michael Bodley

<div id="highlights-block_61fda8b65515c" class="highlights">
 <ul>
 <li>Punk 6529, as the anonymous NFT collector is known, has more than 240,000 Twitter followers</li>
 <li>The launch raises due diligence questions for investors accustomed to deeply parsing the backgrounds of fund managers</li>
 </ul>
 
</div>



An anonymous CryptoPunk NFT owner with an influential Twitter following has launched a fund that invests in NFTs on behalf of institutional investors.



<a href="https://twitter.com/punk6529" target="_blank" rel="noreferrer noopener">Punk 6529</a>’s venture, confirmed by two sources with knowledge of the matter, represents one of the first such funds run by an unnamed portfolio manager — and is a validation of a metaverse world in which the reputations of pseudonymous whales are built upon their savvy in picking NFT projects and not their background.



Blockworks granted sources anonymity to discuss sensitive business dealings. Punk 6529 confirmed the fund launch but declined to comment further.



6529 NFT Fund, which has drawn the interest of institutional investors, including crypto fund-of-funds operators, started trading recently. The manager has not revealed the amount of capital raised.



<a href="https://www.larvalabs.com/cryptopunks/details/6529" target="_blank" rel="noreferrer noopener">Punk 6529</a>, the owner of a slew of other rare, valuable NFTs, has more than 240,000 followers on Twitter, where they expound on everything from the future of the metaverse to <a href="https://twitter.com/punk6529/status/1428638532684423173" target="_blank" rel="noreferrer noopener">regulation</a> by the Securities and Exchange Commission (SEC) to <a href="https://twitter.com/punk6529/status/1435229526133547010?lang=en" target="_blank" rel="noreferrer noopener">wealth inequality</a>.&nbsp;



“The Metaverse will actually happen this decade,” <a href="https://twitter.com/punk6529/status/1429514317108502536" target="_blank" rel="noreferrer noopener">Punk 6259 wrote.</a> “If it is open, human innovation will flourish. If it is closed, we are digital serfs of sorts. We 100,000 or so people right now are the front-line in this battle and we have to do it ourselves.”



The account is also building a virtual museum, <a href="https://opensea.io/assets/0xb47e3cd837ddf8e4c57f05d70ab865de6e193bbb/6529" target="_blank" rel="noreferrer noopener">6529 Museum</a>, and operates a <a href="https://oncyber.io/6529gm" target="_blank" rel="noreferrer noopener">number</a> of<a href="https://oncyber.io/6529photo" target="_blank" rel="noreferrer noopener"> virtual galleries</a> for <a href="https://oncyber.io/6529ab" target="_blank" rel="noreferrer noopener">viewing</a> NFTs and digital photographs.



In addition, the investor has been involved in bids for high-profile NFT projects, including bidding on imprisoned Silk Road founder <a href="https://cms.blockworks.co/imprisoned-silk-road-founder-sold-his-first-nft-to-a-dao-trying-to-free-him/" target="_blank" rel="noreferrer noopener">Ross Ulbricht’s</a> collection, <a href="https://www.theblockcrypto.com/post/132991/a-dao-trying-to-free-julian-assange-has-raised-4-million-and-counting" target="_blank" rel="noreferrer noopener">The Block reported</a>. They’ve also owned <a href="https://twitter.com/punk6529/status/1433550456853196811" target="_blank" rel="noreferrer noopener">one of the CryptoKiddies</a>, which have sold for more than 100 ether each.



<h3 class="wp-block-heading">Due diligence questions</h3>



The fund raises due diligence questions for deep-pocketed limited-partners looking to invest, sources said. Institutions typically run detailed vetting processes before backing a manager, including scouring an individual’s background and checking references. One of the sources, who invests in crypto funds, said he did not know Punk 6529’s identity.



How long of a lockup on investor capital the fund will impose also isn’t clear. It could impose fairly modest, hedge-fund-like liquidity, or the vehicle could go the private equity route — favored by a number of real-world funds that invest in art — and hold investor cash for a much longer period.



“If you’re going to build it as more of a trading platform, you do it as a hedge fund,” one source said. “But if you think of it more like art, you need to stick it in a [private equity] fund.”



There are few investment professionals with the know-how, at the moment, to mint serious money from NFT markets — so investors hungry for exposure may well sidestep traditional procedures.&nbsp;



It is believed Punk 6529 owns potentially thousands of NFTs. The anon also&nbsp;<a href="https://rattibha.com/thread/1445468399656595456?lang=en" target="_blank" rel="noreferrer noopener">claims</a>&nbsp;to have started investing in bitcoin in summer 2013 and “played a small role in BTC’s development and acceptance.”



Punk 6529 has urged first-time and small-time NFT investors to pony up only money they are willing to lose, and also to maintain custody over their assets rather than keeping them on exchanges and non-fungible marketplaces.



But for now, though, their focus is on much bigger investors. “2022 will be the year of the institutions in NFTs,” they wrote. “Plan accordingly!”



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Start your day with top crypto insights from David Canellis and Katherine Ross. <a href="https://blockworks.co/newsletter/empire">Subscribe to the Empire newsletter</a>.

Anon CryptoPunk Owner Launches NFT Fund, Betting on Ability Over Identity

Sam Martin

<div id="highlights-block_617725d07bf3f" class="highlights">
 <ul>
 <li>Ethereum has outperformed BTC since the latter half of October</li>
 <li>DOT enters price discovery </li>
 </ul>
 
</div>



Ethereum has outperformed BTC by 20% since the latter half of October.



ETH issuance was net negative over the last seven days, giving Ethereum enthusiasts a snapshot of what &#8216;ultra-sound money&#8217; could look like post merge. 



The BTC market has seen a drastic decline in the amount of leverage in the system, which makes further downside due to liquidations less likely. 



Polkadot (DOT) enters price discovery, last trading at $50.20.



A user mistakenly sold a CryptoPunk, the most infamous Ethereum NFT project, for 4.444 ETH instead of 4,444 ETH.



<h3 class="wp-block-heading">Latest in Macro:</h3>



<ul><li>S&amp;P 500: 4,613, +.18%</li><li>NASDAQ: 15,595, +.63%</li><li>Gold: $1,793, +.51%</li><li>WTI Crude Oil: $83.94, +.44%</li><li>10-Year Treasury: 1.559%, +.003%</li></ul>



<h3 class="wp-block-heading">Latest in Crypto:</h3>



<ul><li>BTC: $60,916, -.90%</li><li>ETH: $4,315, +.24%</li><li>ETH/BTC: .0708, +1.21%</li><li>BTC.D: 43.73%, -.87%</li></ul>



<h3 class="wp-block-heading">ETH outperforms BTC</h3>



ETH has outperformed BTC by nearly 20% since the last half of October. After surpassing all-time highs <a href="https://cms.blockworks.co/mana-sand-axs-explode-on-facebooks-meta-news-eth-beats-ath-markets-wrap/" target="_blank" rel="noreferrer noopener">last week,</a> ETH retested the highs made in April of 2021 as support. 



The put-call ratio sits at 0.913 and funding rates are creeping higher, according to data from <a href="https://app.laevitas.ch/dashboard" target="_blank" rel="noreferrer noopener">Laevitas.ch</a>. These two metrics indicate that traders are betting on further upside.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="638" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/11/ETHBTC_2021-11-01_16-46-02-1024x638.png" alt="" class="wp-image-10182" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/11/ETHBTC_2021-11-01_16-46-02-1024x638.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/ETHBTC_2021-11-01_16-46-02-1024x638.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/ETHBTC_2021-11-01_16-46-02-1024x638.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/ETHBTC_2021-11-01_16-46-02-1024x638.png?w=412 412w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/ETHBTC_2021-11-01_16-46-02-1024x638.png?w=419 419w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/ETHBTC_2021-11-01_16-46-02-1024x638.png?w=351 351w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/ETHBTC_2021-11-01_16-46-02-1024x638.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/ETHBTC_2021-11-01_16-46-02-1024x638.png?w=1086 1086w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption>Source: Trading View</figcaption></figure>



ETH issuance was net negative over the last seven days and will likely become more deflationary when the merge goes live in Q1/Q2 of 2022. This is possible due to the EIP-1559 upgrade that went <a href="https://cms.blockworks.co/eip-1559-is-live-thanks-to-ethereums-london-hard-fork/" target="_blank" rel="noreferrer noopener">live</a> on the mainnet in August, causing the base fee that users pay to transact on the network to be burned. When the number of transaction fees that are burned outpace the block subsidy paid out to miners, the total supply decreases. 



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" decoding="async" width="315" height="399" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-01-at-4.35.20-PM.png" alt="" class="wp-image-10183" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-01-at-4.35.20-PM.png?w=315 315w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-01-at-4.35.20-PM.png?w=237 237w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-01-at-4.35.20-PM.png?w=203 203w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-01-at-4.35.20-PM.png?w=206 206w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-01-at-4.35.20-PM.png?w=173 173w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-01-at-4.35.20-PM.png?w=63 63w" sizes="(max-width: 315px) 100vw, 315px" /><figcaption>Source: watchtheburn.com</figcaption></figure></div>



Average gas prices, or the cost to transact on the base layer of Ethereum, has been trending upward over the past week. Users can check estimated gas fees on <a href="https://etherscan.io" target="_blank" rel="noreferrer noopener">etherscan.io</a> to avoid transacting during periods of elevated activity. 



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="939" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/11/chart-1024x939.jpeg" alt="" class="wp-image-10188" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/11/chart-1024x939.jpeg?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/chart-1024x939.jpeg?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/chart-1024x939.jpeg?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/chart-1024x939.jpeg?w=280 280w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/chart-1024x939.jpeg?w=285 285w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/chart-1024x939.jpeg?w=239 239w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/chart-1024x939.jpeg?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/chart-1024x939.jpeg?w=1200 1200w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption>Source: etherscan.io</figcaption></figure>



<h3 class="wp-block-heading">Bitcoin</h3>



BTC fundamentals look good:



<ul><li>The balance of BTC on exchanges remains at three-year lows.</li><li>The CME is becoming one of the leading futures exchanges in terms of open interest, implying that there is increased institutional adoption. </li><li>The realized price, or cost basis of holders, of BTC is at all-time highs.</li><li>Miners are the most profitable they have been in over two years. </li><li>The percentage of futures open interest that is crypto-margined has dropped to 46% versus reaching as high as 69% during the April, 2021 peak. The less leverage behind longs, the smaller the chance of a liquidation event spurring further downside. </li></ul>



<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" decoding="async" width="1024" height="582" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-01-at-5.29.17-PM-1024x582.png" alt="" class="wp-image-10189" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-01-at-5.29.17-PM-1024x582.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-01-at-5.29.17-PM-1024x582.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-01-at-5.29.17-PM-1024x582.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-01-at-5.29.17-PM-1024x582.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-01-at-5.29.17-PM-1024x582.png?w=460 460w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-01-at-5.29.17-PM-1024x582.png?w=386 386w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-01-at-5.29.17-PM-1024x582.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-01-at-5.29.17-PM-1024x582.png?w=1185 1185w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption>Source: Glassnode</figcaption></figure></div>



<h3 class="wp-block-heading">Polkadot enters price discovery</h3>



Polkadot (DOT) is a platform that allows diverse blockchains to transfer messages, including value, in a trust-free fashion; sharing their unique features while pooling their security. In brief, Polkadot is a scalable heterogeneous multi-chain technology.



Polkadot is heterogeneous because it is entirely flexible and makes no assumption about the nature or structure of the chains in the network. Even non-blockchain systems or data structures can become parachains if they fulfill a set of criteria.



Polkadot may be considered equivalent to a set of independent chains such as Ethereum, except with important additions: pooled security and trust-free interchain transact-ability, according to <a href="https://www.coingecko.com/en/coins/polkadot" target="_blank" rel="noreferrer noopener">CoinGecko</a>.



&#8220;DOT will serve three key functions in Polkadot, namely (i) providing governance for the network, (ii) operating the network, and (iii) creating parachains by bonding DOT,&#8221; as <a href="https://polkadot.network/dot-token/" target="_blank" rel="noreferrer noopener">stated</a> on Polkadot&#8217;s official website. 



DOT was the best performing altcoin of the day when sorting by the largest amount of open interest. DOT was last trading at $50.30, up 17.58% over the last 24 hours. DOT is now in price discovery after passing its May highs of $47.33.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="161" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-01-at-5.35.11-PM-1024x161.png" alt="" class="wp-image-10190" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-01-at-5.35.11-PM-1024x161.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-01-at-5.35.11-PM-1024x161.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-01-at-5.35.11-PM-1024x161.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-01-at-5.35.11-PM-1024x161.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-01-at-5.35.11-PM-1024x161.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-01-at-5.35.11-PM-1024x161.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-01-at-5.35.11-PM-1024x161.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-01-at-5.35.11-PM-1024x161.png?w=1195 1195w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption>Source: Laevitas.ch</figcaption></figure>



<h3 class="wp-block-heading">Non-Fungible Tokens (NFTs)</h3>



A user mistakenly sold a CryptoPunk, the most infamous Ethereum NFT project, for 4.444 ETH instead of 4,444 ETH, <a href="https://www.larvalabs.com/cryptopunks/details/7557" target="_blank" rel="noreferrer noopener">according</a> to data from Larva Labs. This cost the seller millions of dollars in potential profit. 



Trading data from <a href="https://opensea.io/rankings" target="_blank" rel="noreferrer noopener">OpenSea</a> and <a href="https://solanalysis.com" target="_blank" rel="noreferrer noopener">Solanalysis</a> of some of the top Solana and Ethereum projects can be found in the photos below:



<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" decoding="async" width="1024" height="332" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-01-at-5.53.10-PM-1024x332.png" alt="" class="wp-image-10191" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-01-at-5.53.10-PM-1024x332.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-01-at-5.53.10-PM-1024x332.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-01-at-5.53.10-PM-1024x332.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-01-at-5.53.10-PM-1024x332.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-01-at-5.53.10-PM-1024x332.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-01-at-5.53.10-PM-1024x332.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-01-at-5.53.10-PM-1024x332.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-01-at-5.53.10-PM-1024x332.png?w=1225 1225w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption>Top Ethereum Projects</figcaption></figure></div>



<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" decoding="async" width="1024" height="292" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-01-at-5.53.21-PM-1024x292.png" alt="" class="wp-image-10192" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-01-at-5.53.21-PM-1024x292.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-01-at-5.53.21-PM-1024x292.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-01-at-5.53.21-PM-1024x292.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-01-at-5.53.21-PM-1024x292.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-01-at-5.53.21-PM-1024x292.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-01-at-5.53.21-PM-1024x292.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-01-at-5.53.21-PM-1024x292.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Screen-Shot-2021-11-01-at-5.53.21-PM-1024x292.png?w=1224 1224w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption>Top Solana Projects </figcaption></figure></div>



If you made it this far, thanks for reading! I am looking forward to catching up tomorrow.



<hr class="wp-block-separator"/>



Are you a UK or EU reader that can&#8217;t get enough investor-focused content on digital assets? <a target="_blank" href="https://cms.blockworks.co/events/das-london/" rel="noreferrer noopener">Join us</a>&nbsp;in London on November 15th and 16th for the Digital Asset Summit (DAS) London. Use code ARTICLE for £75 off your ticket.&nbsp;<a target="_blank" href="https://cms.blockworks.co/events/das-london/" rel="noreferrer noopener">Buy it now</a>.



<hr class="wp-block-separator"/>