š
Welcome!
A Scandinavian country opens a tax office in the metaverse and a leading exchange is likely working on creating a stablecoin.
Today, we take a look at Reddit NFTs and our Research team examines the competition between X2Y2 and LooksRare.
This is theĀ Delphi Daily. Letās dive in.
šØ In Case You Missed It

- Norway launches a tax office in Decentraland to raise awareness about taxes related to DeFi and NFTs.
- Jeffrey Yass, the co-founder of Susquehanna, donates 100 BTC to Crypto Freedom PAC, marking the largest BTC-denominated political donation ever.
- Reality Labs, metaverse R&D arm of Meta Platforms, posts a quarterly loss of $3.6B with the company stating that losses will increase next year.
- Sam Bankman-Fried, CEO of FTX, says the exchange will likely create a stablecoin.
- Core Scientific, the worldās largest Bitcoin miner, warns it may have to declare bankruptcy.
š Polygon NFT Volume Ramps up as Reddit NFTs Take Off

- Spooky Season is the second series of NFTs launched by Reddit. The team has partnered with 27 independent artists to release 78 unique NFTs or collectible avatars.
- Each avatar is a Polygon NFT with an appearance based on the Reddit mascot, Snoo. Owning these NFTs allows Redditors to use them as profile pictures.
- Over the past seven days, the cumulative trade volume of all collections within Spooky Season has reached $3.7M. When combined with Redditās first series of NFTs, the cumulative trade volume rises to $7.8M.
- Spooky Season was launched on Oct. 20 and saw its highest trading volume of $1.8M on Oct. 24. On that day, the volume for Spooky Season NFTs soared 10x from the previous day while the total volume for OpenSea Polygon soared almost 8x.
- During this period, the āSpooky Season: poieeeyee x Reddit Collectible Avatarsā collection ranked first in trade volume on OpenSea, with other Spooky Season collections making a brief appearance in the top 10.
ā” LooksRare vs. X2Y2: A Story of Incentivized NFT Marketplaces

- The LOOKS tokenās price rose immediately after launch, primarily driven by lucrative dual staking rewards in the form of LOOKS and Wrapped ETH (WETH).
- There was a lot of speculation surrounding LOOKSā valuation against OpenSeaās colossalĀ $300M raise at a $13.3B valuation.
- LOOKS peaked at $7 which valued LooksRare at a $7B FDV. With artificial volume painting LooksRare as a worthy competitor, it reached 53% of OpenSeaās valuation.
- This was short-lived and swiftly reversed, as wash trading, hyperinflationary token emissions, and wider market turbulence resulted in immense sell-side pressure. LOOKS currently trades at $0.20 ā a 97% decrease from its highs.
- The X2Y2 token tells a similar story of lucrative dual staking rewards and its peak valuation at a $4B FDV.
- The difference lies where X2Y2 attempted to amend the āwrongsā of LOOKS by introducing a supply-burning mechanism to combat sell-side pressure.
- The supply of LOOKS experienced large jumps in early February and mid-June, increasing 2.5x and 2x, respectively. However, X2Y2ās circulating supply has doubled since inception.
- As of writing, LOOKS has released over 400M more tokens than X2Y2, despite both having a total supply of 1B tokens.

- Due to a parameter error, 56% of the 200M X2Y2 staking rewards were distributed within the first 30 days ā significantly higher than the originally planned 18%.
- This error, alongside token burning, undoubtedly added fuel to X2Y2ās token price decline. Burning tokens is a double-edged sword, as you are essentially burning token incentives to attract and maintain users on the platform.
- The logic of burning rewards to reduce selling pressure has not played out so far, as evidenced by X2Y2ās price being down 98% since inception.
- For more on X2Y2 and LooksRare, Delphi members can read our Delphi Pro report here.
š£Ā Notable Tweets
Redditās Metaverse Ambitions
Solving the Royalty Trilemma