🙅‍♂️Minecraft banning NFTs and Whales losing $150,000 for MEMEs.

GM 👨‍👩‍👧‍👦

Seedphrase Daily👋 The market is hotter than car seatbelts on a sunny day! This is everything that happened so you’re not confused.

Today’s estimated research time is 6 hours and 58 minutes condensed into a read time of 4 minutes. Stay tuned to where we talk about:

• 🙅‍♂️Minecraft Developers ban the use of NFTs

• 🐳How this whale lost $150K trolling

• 🧢Tesla’s sold 75% of it’s Bitcoin holdings

• 📈New Polygon zkEVM will be the Future of Ethereum Scaling!

🛑 Before we start

On Monday, during our Planting Plays series. We said we were eyeing the Nickelodeon mint that would happen on July 19th.

Since then, the project has seen 1.3KΞ in volume. The highest sale was 8.69Ξ and currently has a floor price of 0.2Ξ. Not bad for a $50 mint.

Read our newsletter, it pays. Now back to business.💼

🙅‍♂️Minecraft Developers ban the use of NFTs

Another fallen soldier. 🤧

If you're unfamiliar, NFTworlds is a fully decentralized, fully customizable, community-driven, play-to-earn gaming platform where world owners can create their limitless metaverse games or experiences for players or exclusive communities within their worlds.

The game uses Minecraft's source code as a basis to power its metaverse (which at the time had no regulation).

🧐Why Microsoft banned blockchain use

Let's be real. Microsoft saw the crazy amount of money coming into some of these games and wanted to maintain control over the game's monetization.

But they claim that it's a problem with exclusion. NFTs create an environment with a scarce amount of digital assets that won't be accessible to everyone.

"In our Minecraft Usage Guidelines, we outline how a server owner can charge for access and that all players should have access to the same functionality. We have these rules to ensure that Minecraft remains a community where everyone has access to the same content. NFTs, however, can create models of scarcity and exclusion that conflict with our Guidelines and the spirit of Minecraft," the firm said.Sure, let's believe that's the reason.

📊 The After effect?

NFT Worlds use to be 10ETH+ at one point.

The collection had generated around 50.8KΞ in volume averaging a steady $14M-$17M market cap before the bomb was dropped.

After the announcement, their native token $WRLD has dropped 56% in the last 48 hours! Currently, the market cap is $6M and could see a further decrease if they don't do anything about this.

The team was shocked when they heard the news.

"We have talked with Minecraft's IP department multiple times in the past. They have never clearly indicated that anything we were doing was going to be ruled on/restricted (other than existing EULA items, which we complied with for the entirety of the project, such as our stance on advertising/IP within the game)," the team wrote. "I know this is extreme cause for concern in the community, and it is for us too. But we're currently considered all options, and will do our best to figure out another option going forward, even if that's a pivot."

Now the question is, will they move to a Web3 native-like Sandbox, or will we see this company fall victim to regulation?

🧠Our thoughts

This is like a gaming company in the 90s avoiding the internet to "protect" their users.

Microsoft implementing or allowing the use of blockchain would completely change Mojang's business model. They preach equality but just want all the monetary benefits for themselves. And until they find a way to do that, they won" t allow other people to reap the benefits.

At the end of the statement, they say, "We will also be paying close attention to how blockchain technology evolves over time to ensure that the above principles are withheld- however, we have no plans of implementing blockchain technology into Minecraft right now."

Either they're psychos that don't see this gold rush, or they're cooking up in the back end, waiting for the perfect opportunity.

For the full statement

🐳 How this whale lost $150K trolling

We've talked countlessly about ENS domains. In short, Ethereum Name Service allows you to own a domain on the Ethereum network that is connected to crypto wallet addresses.

The collector named Franklin created the domain "stop-doing-fake-bids-its-honestly-lame-my-guy.eth" and placed a bid for 100WETH on another wallet.

After taking a picture and posting it for attention, he sold the domain for 1.9Ξ ($2.8K). He was so happy with his gains that he forgot to cancel the original bid he made on his other wallet.

Franklin experienced massive amounts of euphoria, thinking he made a few grand profits from a meme, which slowly became one of his greatest mistakes.

The new owner saw this and accepted the 100 WETH bid, profiting 98.1Ξ!

To make things even worse, he sent another 1.9Ξ to the new buyer in hopes of getting his money back. Spoiler alert: he didn't. 😂

Even though he lost 100Ξ, he got what he wanted in the end. The post went viral, LOL.

🧢Tesla’s sold 75% of it’s Bitcoin holdings

The soon-to-be trillionaire appears in headlines again.

Despite countless tweets of Elon Musk saying that Tesla was holding their Bitcoin, reports have revealed the truth.

After the earnings report of Q2, it was discovered Tesla had sold 75% of their Bitcoin, totalling $936M and profiting $106M!

He explains, "The reason we sold a bunch of our Bitcoin holdings was that we were uncertain when the COVID lockdowns in China would alleviate," Musk said on the call. "So it was important for us to maximize our cash position, given the uncertainty of COVID lockdowns in China."

For the Full Article

From a community standpoint, Elon Musk has so far manipulated markets by tweeting, promoting shitcoins to his followers, and promised people he's holding when he wasn't, which raised questions amongst his fans about his intentions for the space.

From a trader's standpoint, this was a good move if he saw the market declining. Selling at the top and rebuying the dip will maximize your profits.

I'm not here to get political, so I'll leave it up to you. Do you think he's pumping his bags or trying his best to maintain his company? 👇

📈New Polygon zkEVM will be the Future of Ethereum Scaling!

We'll try to break this down simply because big words can get lost in translation.

I thought this was just a cool name, but zkEVM stands for Zero-Knowledge Ethereum Virtual Machine.

Long, right?😅

Currently, Ethereum works on layer 1, where transaction times are slow, and the fees are huge when there is massive buying pressure, making it difficult to scale.

Polygon's solution is the release of zkEVM, a layer 2 protocol that works on top of layer 1.

Think of layer 2 as middlemen for large transactions.

It will be the "first Ethereum-equivalent scaling solution that works seamlessly with all existing smart contracts, developer tools and wallets, harnessing advanced cryptography called zero-knowledge proofs."

ZK takes all the transactions and proves them to the Ethereum Network with a single validity proof.

This way, the network could process transactions 90% faster, at a rate of 40-50 transactions/second!

Once launched, it will be easier for users to build with the futuristic technology of ZK proofs while benefiting from the decentralization, security and familiarity of Ethereum. This means that developers can move any Ethereum smart contract onto Polygon’s zkEVM without needing to change its code.

Polygon states the test net will launch sometime this summer, and the main net is set to be ready by early 2023. And since the announcement, Polygon's native coin, $MATIC, has risen 30% in the last five days!

Meme of the Day

Look back at the "🐳 How this whale lost $150K trolling". Meme enough.

See you tomorrow! ✌️

Disclaimer: None of this is financial advice. This newsletter is strictly educational and is not investment advice or solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research!