Market-Wide Selloff, NFT Marketplaces, & Web3 Communities

FEB 24, 2022 • 4 Min Read

Joo Kian + 2 others

DISCLOSURE: DELPHI VENTURES HOLDS A POSITION IN BTC, ETH, UNIVERSE.XYZ AND SEED CLUB. MEMBERS OF OUR TEAM ALSO HOLD POLYMORPHS AND MAY HAVE RECEIVED AIRDROPS FROM LOOKSRARE. THESE STATEMENTS ARE INTENDED TO DISCLOSE ANY CONFLICT OF INTEREST AND SHOULD NOT BE MISCONSTRUED AS A RECOMMENDATION TO PURCHASE ANY TOKEN. THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND YOU SHOULD NOT MAKE DECISIONS BASED SOLELY ON IT. THIS IS NOT INVESTMENT ADVICE.

Metus vulputate eu scelerisque felis. Nulla facilisi cras fermentum odio eu. Scelerisque fermentum dui

faucibus in ornare quam viverra orci sagittis. A iaculis at erat pellentesque adipiscing commodo elit. In

fermentum et sollicitudin ac orci. Ultrices sagittis orci a scelerisque purus. Faucibus ornare

suspendisse sed nisi lacus sed viverra tellus in. Mauris cursus mattis molestie a iaculis at erat

pellentesque adipiscing. Volutpat diam ut venenatis tellus in metus vulputate. Eu consequat ac felis

donec et odio pellentesque. Eu mi bibendum neque egestas congue quisque egestas diam. Quam

lacus suspendisse faucibus interdum posuere lorem. Quam id leo in vitae. Ut faucibus pulvinar

elementum integer enim neque. Id ornare arcu odio ut sem nulla pharetra diam sit. Molestie ac feugiat

sed lectus vestibulum mattis. Ipsum nunc aliquet bibendum enim facilisis. Euismod nisi porta lorem

mollis aliquam ut porttitor.

Iaculis nunc sed augue lacus viverra vitae congue eu consequat. Gravida neque convallis a cras.

Nunc scelerisque viverra mauris in aliquam sem. Non odio euismod lacinia at quis risus sed vulputate

odio. Purus faucibus ornare suspendisse sed. Turpis egestas maecenas pharetra convallis posuere

morbi. Nec feugiat nisl pretium fusce id velit ut. Nunc congue nisi vitae suscipit tellus mauris a diam.

Posuere sollicitudin aliquam ultrices sagittis orci. Urna nec tincidunt praesent semper. Turpis nunc

eget lorem dolor sed viverra.

suspendisse sed nisi lacus sed viverra tellus in. Mauris cursus mattis molestie a iaculis at erat

pellentesque adipiscing. Volutpat diam ut venenatis tellus in metus vulputate. Eu consequat ac felis

donec et odio pellentesque. Eu mi bibendum neque egestas congue quisque egestas diam. Quam

lacus suspendisse faucibus interdum posuere lorem. Quam id leo in vitae. Ut faucibus pulvinar

elementum integer enim neque. Id ornare arcu odio ut sem nulla pharetra diam sit. Molestie ac feugiat

sed lectus vestibulum mattis. Ipsum nunc aliquet bibendum enim facilisis. Euismod nisi porta lorem

mollis aliquam ut porttitor.

Iaculis nunc sed augue lacus viverra vitae congue eu consequat. Gravida neque convallis a cras.

Nunc scelerisque viverra mauris in aliquam sem. Non odio euismod lacinia at quis risus sed vulputate

odio. Purus faucibus ornare suspendisse sed. Turpis egestas maecenas pharetra convallis posuere

morbi. Nec feugiat nisl pretium fusce id velit ut. Nunc congue nisi vitae suscipit tellus mauris a diam.

Posuere sollicitudin aliquam ultrices sagittis orci. Urna nec tincidunt praesent semper. Turpis nunc

eget lorem dolor sed viverra.

lacus suspendisse faucibus interdum posuere lorem. Quam id leo in vitae. Ut faucibus pulvinar

elementum integer enim neque. Id ornare arcu odio ut sem nulla pharetra diam sit. Molestie ac feugiat

sed lectus vestibulum mattis. Ipsum nunc aliquet bibendum enim facilisis. Euismod nisi porta lorem

mollis aliquam ut porttitor.

Chart of The Day: Liquidations Amid Market Selloff

  • At 10AM EST, Putin officially announced the invasion of Ukraine, which led to a market-wide selloff.
  • Asia equity indices like HSI (-3.21%), STI (-3.49%), NI225 (-1.81%), and KOSPI (-2.60%) sold off and SPY currently trades at -1.69% during pre-market hours. BTC and ETH are down -8.6% and -12.1% respectively.
  • The Dollar (+0.47%) and Gold (+2.32%) reacted positively as investors now see them as safer assets.
  • Crypto leveraged traders were caught in the sell-off, which caused over $450M of liquidations in the past 24hr, 73% of which belongs to Longs. In addition, ETH is now at risk of another 7 Siblings liquidation event if ETH hits ~$2.1K.
X2Y2 Launch, Universe.xyz Progress Update, Upcoming Mints

[Excerpt from our weekly NFT Insights]

  • Universe.xyz is worth watching more closely now that the launch of their decentralized marketplace is imminent, likely within the next 2 – 3 weeks. This is the culmination of the team’s development efforts since mid-2021. The Universe team is taking a long-term, product-driven approach, building and architecting their marketplace from scratch instead of relying on OpenSea’s backend. I am excited to see it finally go live and anticipate that it will become a viable decentralized alternative to OS in time.
  • As a DAO, the team engages closely with the community through weekly discord AMAs which contain a lot of useful development updates. The most recent AMA on 16 Feb shed a lot of light on coming developments. According to the Universe team:
  • Marketplace
    • The team has been focused on building a backend system that’s better architected and more scalable than OpenSea. This has been the most complex and time-consuming task that has taken the past 7 months to complete. This week the backend scraper has been completed and next step is to rig up all the API endpoints and make sure SDKs work properly.
    • NFT scraper is extremely efficient and fast (“better than any they have ever seen”), built on a micro-services architecture which makes it very scalable. The final bottleneck before launch is the search function, which may take 2 weeks. OpenSea’s search function isn’t great because it’s being load-tested all the time.
    • Once launched, new alpha features can be released fairly quickly in 2-week sprints.
    • Auctions feature has been deprioritized in favor of the marketplace; plan to launch that after the marketplace is live.
    • A DAO proposal outlining go-to-market plans & how they will incentivise users to use the marketplace will be submitted soon. Current thinking is to grow organically and gather user feedback after launch while developing the token strategy.
  • Polymorphs (NFT collection created by Universe team)
    • Working on a new collection inspired by Polymorphs that uses the Universe minting contract. Artwork is aesthetically-pleasing and done by talented (but not well-known) artists from the community. Launch details to be worked out, it may be a timed mint for Polymorph holders.
    • Tyler has been working on a self-funded NFT project that will be a gift to the DAO (3D project that includes music from a Grammy-nominated musician).
  • For more, Delphi members can read our latest NFT Insights.
Web3 Is Community Ownership: Jess Sloss, Co-Creator at Seed Club

[Excerpt from our latest Delphi Podcast)

  • Continuing our Web3 series, we bring on Jess Sloss, Co-creator of Seed Club, a DAO that builds and invests in communities, to talk about how Web3 is centered around community ownership. We dive into some Seed Club incubated projects, how tokens give power to creators and the community, scaling and mentorship in Seed Club, and much more!

Resources: 

More:

Notable Tweets

Coinbase Expects Post-Merge ETH Staking Yields to be 9-12% APR

Crypto Down Bad

Bitcoin Still Not Considered a Safe Haven

Create a free account to continue reading

Go Pro at 40% off

Immediately access the entire catalog of research for Delphi, Office Hours & private Discord

Joo Kian + 2 others