AR/VR is finally getting started; Regulatory heat on crypto giants
MARKET UPDATE
For the first time since March 2022, the Fed decided not to raise interest rates in its effort to fight inflation. CPI numbers also came in lower than expected, giving the Fed a bit of breathing space. Experts polled by the FT say the Fed will need to take tougher action than markets expect to cool the economy. Leading academic economists predict at least two more quarter-point interest rate increases this year, while the futures markets suggest traders favour just one more quarter-point rate rise in July. Either way, inflation cooling down is good for the economy and the market reacted positively. It’s still too early to say if we’re past the worst, but the micro-sentiment is positive. Similar to the Fed, we’re waiting to see what the real impacts on the economy are and when and if the recession will appear.
In the crypto space, the SEC dominated the headlines. Despite this, Bitcoin has performed well, largely because the SEC does not classify it as a security. This was recently revealed when the SEC identified several other major cryptocurrencies as securities. Consequently, many investors moved their crypto assets into Bitcoin
1. AR/VR is finally getting started: Apple’s Vision Pro and Meta's Oculus 3
Apple and Meta have unleashed their latest innovations in AR/VR headsets within a week of each other. Apple's Vision Pro, a state-of-the-art augmented reality headset, and Meta's Oculus 3, the third instalment in their line of virtual reality headsets, are set to transform the way we interact with digital content and consequently, revolutionise the internet as we know it.
Apple's Vision Pro, combines advanced image processing algorithms and LiDAR technology to overlay digital information onto the physical world, making it an exciting tool for professional use and personal entertainment (in-flight entertainment gets massively upgraded). Meanwhile, the integration of Siri, hand and eye-tracking, elevates user interaction to an impressive hands-free experience (unlike Meta’s controllers).
Meta's Oculus 3 comes in significantly cheaper at $500 (vs Vision Pro’s $3,500) and offers users a more affordable option to enter the AR/VR space. The 'pass-through' feature, present in both devices, is of particular interest. This allows users to toggle between the virtual/augmented experience. The integration of this feature paves the way for a new generation of mixed reality applications, highlighting the potential these technologies hold for creating immersive entertainment and commercial applications (think Pokémon Go with goggles on). This new technology will revolutionise how we work, learn, socialise, and consume content online. Meta and Apple are highly committed to be market leaders in this space, all the way from the device to the content that goes on these devices. We are very much looking forward to a 3-dimensional internet experience.
2. Regulatory heat on crypto giants: SEC vs Crypto
In an unprecedented regulatory blitz, the US Securities and Exchange Commission (SEC) has targeted two giants of the crypto arena - Binance.US and Coinbase. Alleging potential misuse of customer funds, the SEC issued a temporary restraining order against Binance.US, freezing its assets. In a dramatic response, Binance.US declared its transition to a crypto-only exchange, suspending all USD transactions as banking partners prepare to cut USD channels.
A hefty 136-page lawsuit accuses Binance of multiple transgressions, including unlawful securities sales and intermingling of funds. A wave of panic ensued in the crypto community, with $900M+ fleeing from Binance post-announcement, and an 8% drop in BNB value.
The SEC has not limited its crosshairs to Binance.US, launching a lawsuit against Coinbase, claiming it has been operating as an unregistered securities exchange, broker, and clearing agency (the SEC approved Coinbase's IPO in 2021). Notably, Coinbase's stock price weathered the storm and is back up to where it was before the SEC lawsuit was announced.
Not so lucky are some of the cryptos that the SEC named as securities in their lawsuit. These include ADA (Cardano), SOL (Solana), MATIC (Polygon), SAND (Sandbox), MANA (Decentraland) and more. The price of these cryptos fell significantly (>20%) and have not yet recovered. This regulatory crackdown raises significant questions about the classification of other cryptocurrencies as securities, and the implications on the broader crypto ecosystem. As the saga unfolds, the crypto world finds itself at a regulatory crossroads with potentially far-reaching implications.
3. Web3 news you didn’t hear about:
The SEC’s pressure on the crypto industry has lead to Crypto.com shutting down institutional services in the US and in Nigeria, the regulator has halted Binance’s operations.
Robinhood will end support for 3 tokens named in SEC lawsuits.
NFThing is a London-based creative technology production studio, building bespoke web3 experiences for creators and consumers, while fully respecting decentralisation and the web3 ethos. NFThing builds strategies and products in multiple areas from AR/VR to NFTs, crypto and blockchain technology. For more details visit: www.nfthing.com