James Cirrone

Startups in the NFT space are still feeling the effects of the crash in the crypto market last year that sent trading volumes plummeting after they reached a fever pitch in April 2022.



Among those <a href="https://dune.com/hildobby/NFTs">impacted</a>: Dapper Labs, which announced Wednesday it had laid off 51 full employees and contractors.



CEO Roham Gharegozlou tweeted an internal memo that fleshed out the reasoning behind the job cuts.&nbsp;



“This decision was incredibly difficult because of the amazing people affected but it is necessary and the right thing to do to ensure a lean and efficient Dapper Labs,” Gharegozlou wrote.&nbsp;



He continued: “We are setting the company up to both serve our customers in a sustainable way and to innovate and push the boundaries of technology forward for many years to come.”



Gharegozlou stressed that Dapper Labs and Flow, the company’s blockchain, are “well capitalized.” Additionally, he clarified that Flow is funded separately from Dapper Labs and that the Flow team will have cash for “several years” to continue operations.&nbsp;



<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">We said goodbye to 51 brilliant colleagues and friends today <a href="https://twitter.com/dapperlabs?ref_src=twsrc%5Etfw">@dapperlabs</a> – this is the note I sent our team. We remain fully dedicated to our core communities and committed to building amazing products that push the world forward together. If you&#39;re looking to hire some of the… <a href="https://t.co/xwhjZAYLN8">pic.twitter.com/xwhjZAYLN8</a>&mdash; roham (@roham) <a href="https://twitter.com/roham/status/1679301700669296640?ref_src=twsrc%5Etfw">July 13, 2023</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Dapper Labs laid off 20% of its full-time staff earlier this year. In November 2022, <a href="https://blockworks.co/news/latest-in-crypto-hiring-layoffs-pile-up-as-bear-market-crawls-on">its team shrank by 22%</a>.



NFT firms have been competing for a smaller slice of users. Trading volumes have largely failed to recover since early last year, save for a <a href="https://blockworks.co/news/blur-nft-volume-crypto-airdrop">momentary spike in February</a> thanks to Blur’s massively successful airdrops that <a href="https://blockworks.co/news/blur-opensea-nft-volume-traders-airdrop">toppled OpenSea</a>.&nbsp;



The peak of NFT global sales was as of Jan. 1, 2022 with a monthly total of $5.9 billion, <a href="https://www.cryptoslam.io/nftglobal?headerPeriod=all&amp;timeFrame=month">data</a> from CryptoSlam shows. As of July 1, 2023, global NFT sales are down to a monthly total of $275 million.



<h2 class="wp-block-heading">A big regulatory hire at CFTC</h2>



Two days before the <a href="https://blockworks.co/news/cftc-ftc-sue-celsius">CFTC sued bankrupt crypto lender Celsius</a>, Commissioner Christy Goldsmith Romero announced that <a href="https://www.linkedin.com/in/scott-l-16489421/">Scott Lee</a> will serve as her new senior counsel and policy adviser.



Lee has spent 11 years in various government roles. A lawyer by training, he’s served at the SEC, the CFTC and the office of then-Rep. Mazie Hirono, D-Hawaii.



More importantly for crypto watchers, Lee worked in the CFTC chief counsel’s office and directly dealt with digital asset platforms. According to the CFTC’s press <a href="https://www.cftc.gov/PressRoom/PressReleases/8747-23">release</a>, Lee “interacted with foreign regulators to ensure that their registrants are compliant with CFTC regulations.”



Romero celebrated the hiring, saying Lee is “a seasoned market regulator” who will help guide her “in ensuring that markets work well and in promoting market resilience to emerging risk.”



<h2 class="wp-block-heading">Other notable hires</h2>



<ul class="wp-block-list">
<li>Singapore-based crypto platform Matrixport appointed Mo Zhou as regional CEO in the US. <a href="https://www.linkedin.com/in/anthony-demartino-8086a81/">Anthony DeMartino</a>, who served in that position for a little over a year, is stepping into an advisory role.&nbsp;</li>



<li>Finery Markets, an over-the-counter trading solutions provider, <a href="https://finerymarkets.com/blog/finery-markets-appoints-stanislav-bublik-as-chief-product-officer">hired</a> <a href="https://www.linkedin.com/in/stanislavbublik/?originalSubdomain=cy">Stanislav Bublik</a> as chief product officer.&nbsp;</li>



<li>Customizable rollup developer Eclipse <a href="https://twitter.com/EclipseFND/status/1678940274742132736">brought on</a> former Uniswap and dYdX executive <a href="https://www.linkedin.com/in/vchetty/">Vijay Chetty</a> as its new chief business officer.</li>
</ul>



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



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/daily">Blockworks Daily</a>: The newsletter that helps thousands of investors understand crypto and the markets, by Byron Gilliam.</li>



<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Start your morning with the top news and analysis to inform your day in crypto.</li>



<li><a href="https://blockworks.co/newsletter/forwardguidance">Forward Guidance</a>: Reporting and analysis on the growing intersection of crypto and macroeconomics, policy and finance.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha directly in your inbox. Market highlights, data, degen trade ideas, governance updates, token performance and more.</li>



<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: Built for Solana investors, developers and community members. The latest from one of crypto&#8217;s hottest networks.</li>



<li><a href="https://blockworks.co/newsletter/thedrop">The Drop</a>: For crypto collectors and traders, covering apps, games, memes and more.</li>
</ul>

Crypto hiring: NFT woes spell trouble for Dapper Labs, CFTC makes major hire

Sebastian Sinclair

Dapper Labs said Monday it can no longer process Automated Clearing House (ACH) payments due to its payment partner, Circle.



In an announcement on its public Discord server, Dapper said Circle has made the decision to stop processing ACH payments for all of its partner companies, “effective immediately.”



“We work with a payments partner, Circle, to manage certain transactions,” Dapper said. “As a result, the ACH payment method is currently unavailable.” 



Circle is also the primary issuer of dollar-pegged stablecoin USD Coin, the second-largest by supply after tether.



For ACH payments currently in process, Dapper said it is actively monitoring and working with its payment partners to resolve any issues “as quickly as possible.”



ACH payments are a type of electronic funds transfer (EFT) that allows money to be moved from one US bank account to another. Dapper has said it’s attempting to secure a new partner for ACH payments as well as enabling withdrawals directly to credit and debit cards.&nbsp;



Dapper, mostly known for NFT-focused projects NBA Top Shot and CryptoKitties, had announced Sunday it was “temporarily” disabling the payments while it investigates an issue with one of its third-party partners.



Circle and Dapper Labs did not immediately respond to Blockworks’ request for comment. CoinDesk first reported the news.



Users are still able to withdraw USD via wire transfer and USDC, the latter on Ethereum and Flow blockchain networks, while NFTs can continue to be bought via credit card, debit card and crypto, Dapper said.



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



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/daily">Blockworks Daily</a>: The newsletter that helps thousands of investors understand crypto and the markets, by Byron Gilliam.</li>



<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Start your morning with the top news and analysis to inform your day in crypto.</li>



<li><a href="https://blockworks.co/newsletter/forwardguidance">Forward Guidance</a>: Reporting and analysis on the growing intersection of crypto and macroeconomics, policy and finance.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha directly in your inbox. Market highlights, data, degen trade ideas, governance updates, token performance and more.</li>



<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: Built for Solana investors, developers and community members. The latest from one of crypto&#8217;s hottest networks.</li>



<li><a href="https://blockworks.co/newsletter/thedrop">The Drop</a>: For crypto collectors and traders, covering apps, games, memes and more.</li>
</ul>

Circle Dropped Automated Clearing House Payments: Dapper Labs

Casey Wagner

A federal judge has denied Dapper Labs’ motion to dismiss a class action lawsuit claiming its NBA Top Shot NFTs are securities. 



Dapper Labs, the issuer behind the popular NFT collection announced in 2019, will have to continue with the suit, US District Judge Victor Marreo ruled, per the court <a href="https://www.dropbox.com/s/680mk9o4gzgpqp8/2023.02.22%20Dapper%20MTD%20Order.pdf?dl=0" target="_blank" rel="noreferrer noopener">filing</a>.



The class action suit, filed in 2021, claims the “moments” collection — digital video clips of highlights from NBA games — are securities and that by issuing them, Dapper Labs violated the law.&nbsp;



“An NFT constitutes an investment contract under Howey,” Marreo wrote in the ruling, citing the Howey Test, used to determine whether an asset is a security under US law.&nbsp;



In its motion to dismiss, <a href="https://blockworks.co/news/dapper-labs-closes-250m-round-bit2me-ico-raises-23-4m">Dapper Labs</a> alleged the plaintiffs used Dapper’s native <a href="https://blockworks.co/price/flow" target="_blank" rel="noreferrer noopener">FLOW</a> token to “confuse” the court. The NBA moments and <a href="https://blockworks.co/news/nba-top-shot-creator-raises-725m-fund-to-grow-flow-blockchain-usage">FLOW tokens</a> are separate entities, Dapper Labs added. 



Marreo agreed that while FLOW and NBA moments are two separate products, Dapper “ignores that FLOW is part of the economic realities of the investment scheme in dispute.”&nbsp;



The case, if it makes it to trial, has the potential to set a precedent for NFTs and securities laws.



The filing comes as crypto classification and ongoing battles with the SEC heat up. Exchange <a href="https://blockworks.co/news/kraken-settles-sec-crypto-staking-program">Kraken recently settled for $30 million</a> and agreed to discontinue its staking product after the SEC filing claimed it had offered an unregistered security.&nbsp;



In settlement cases, which could be the end result of this class action against Dapper Labs, it is important to remember that no precedent is set, according to Seth Hertlein, Ledger’s global head of policy.



“The settlement did not create any new rules or law in the United States, and it’s not binding on anyone besides Kraken, who agreed to it,” Hertlein said during a <a href="https://twitter.com/Ledger/status/1626177139946012677?s=20" target="_blank" rel="noreferrer noopener">Twitter Spaces</a> with Blockworks. “The scope is actually quite limited.”



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



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/daily">Blockworks Daily</a>: The newsletter that helps thousands of investors understand crypto and the markets, by Byron Gilliam.</li>



<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Start your morning with the top news and analysis to inform your day in crypto.</li>



<li><a href="https://blockworks.co/newsletter/forwardguidance">Forward Guidance</a>: Reporting and analysis on the growing intersection of crypto and macroeconomics, policy and finance.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha directly in your inbox. Market highlights, data, degen trade ideas, governance updates, token performance and more.</li>



<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: Built for Solana investors, developers and community members. The latest from one of crypto&#8217;s hottest networks.</li>



<li><a href="https://blockworks.co/newsletter/thedrop">The Drop</a>: For crypto collectors and traders, covering apps, games, memes and more.</li>
</ul>

Federal Judge Denies Dapper Labs’ Plea To Dismiss Top Shot Class Action

Ben Strack

Following staff cuts by major crypto companies such as <a href="https://cms.blockworks.co/coinbase-cut-workforce-ceo-wary-of-potential-recession/" target="_blank" rel="noreferrer noopener">Coinbase</a> and <a href="https://cms.blockworks.co/gemini-joins-growing-list-of-crypto-exchanges-cutting-staff-amid-downturn/" target="_blank" rel="noreferrer noopener">Gemini</a> earlier this year, a fresh round of reported layoffs and restructurings further accelerated the industry’s churn this week.



Crypto exchange BitMEX has cut staff as it pivots to focus on derivatives trading, though the number of laid off employees isn&#8217;t known.&nbsp;



The company, which took the opposite approach in <a href="https://blog.bitmex.com/beyond-derivatives-bitmexs-road-ahead/" target="_blank" rel="noreferrer noopener">expanding its offerings beyond derivatives</a> last year, is set to refocus on “liquidity, latencies and a vibrant derivatives community including BMEX token trading,” a spokesperson told Blockworks.



“As an undesirable consequence, we had to make changes to our workforce,” the spokesperson said in a statement. “Our top priority is to make sure all employees who will be impacted have the support they require.”



The spokesperson declined to comment on the specific number of staff impacted, but said a reported figure of cuts amounting to 30% was “inaccurate and too high.”&nbsp;



The staff cuts come after BitMEX CEO Alexander Hoeptner suddenly <a href="https://cms.blockworks.co/latest-in-crypto-hiring-bitmex-appoints-cfo-as-interim-ceo/" target="_blank" rel="noreferrer noopener">left the company</a>. The company tapped Chief Financial Officer Stephan Lutz as interim chief executive.



Dapper Labs has reduced its workforce by 22%, CEO Roham Gharegozlou said Wednesday.&nbsp;



“These reductions are the last thing we want to do, but they are necessary for the long-term health of our business and communities,” Gharegozlou <a href="https://www.dapperlabs.com/newsroom/a-message-from-founder-and-ceo-roham-gharegozlou" target="_blank" rel="noreferrer noopener">wrote</a>. “We know [Web3] and crypto [are] the future across a multitude of industries — with 1000x potential from here in terms of mainstream adoption and impact — but today’s macroeconomic environment means we aren’t in full control of the timing.”



Founded in 2018, Dapper Labs is behind NBA Top Shot and the original developer of the Flow blockchain. It closed <a href="https://cms.blockworks.co/dapper-labs-closes-250m-round-bit2me-ico-raises-23-4m/" target="_blank" rel="noreferrer noopener">a $250 million round</a> in September 2021.



The company grew from 100 people to more than 600 employees in less than two years, which Gharegozlou said brought operational challenges.&nbsp;



Galaxy Digital is considering cutting its workforce by about 15%, <a href="https://www.bloomberg.com/news/articles/2022-11-01/novogratz-s-galaxy-digital-explores-workforce-cuts-of-about-20?leadSource=uverify%20wall" target="_blank" rel="noreferrer noopener">Bloomberg reported</a> Tuesday.&nbsp;&nbsp;



The reported layoffs come after CEO Michael Novogratz said during the company’s August earnings call that Galaxy intended to increase its headcount from 375 people to more than 400 staffers by the end of the year.&nbsp;&nbsp;



“While our industry continues to face macroeconomic headwinds, Galaxy remains focused on building for the future state of institutional adoption, and on enhancing long-term shareholder value,” a spokesperson told Blockworks in a statement. “We are always considering optimal team structure and strategy and will share future plans when finalized.”



Galaxy’s third-quarter earnings call is slated for Nov. 9 at 8:30 am ET. The company <a href="https://cms.blockworks.co/galaxy-digitals-stock-rises-despite-posting-555m-q2-net-loss/" target="_blank" rel="noreferrer noopener">posted a $555 million net loss</a> during the second quarter — up from a net loss of about $112 million in the three months prior.&nbsp;



Digital Currency Group (DCG) promoted several of its executives in tandem with a department reorganization. Roughly 10 employees departed as a consequence of the restructuring, <a href="https://www.bloomberg.com/news/articles/2022-11-01/crypto-firm-digital-currency-group-dcg-to-cut-staff-by-about-10" target="_blank" rel="noreferrer noopener">according to Bloomberg</a>.&nbsp;



DCG is the parent company of digital asset manager Grayscale Investments and crypto brokerage Genesis Trading. The company reportedly has 66 members following the cuts.&nbsp;&nbsp;



<a href="https://www.linkedin.com/in/markdmurphy75/" target="_blank" rel="noreferrer noopener">Mark Murphy</a> was promoted to be DCG’s president. He joined the company as head of public affairs in April 2018 before becoming chief operating officer in January 2020, according to his LinkedIn page.&nbsp;&nbsp;



In addition, <a href="https://www.linkedin.com/in/jenngoodson/" target="_blank" rel="noreferrer noopener">Jenn Goodson</a> was named chief administrative officer; <a href="https://www.linkedin.com/in/simon-koster-901148149/" target="_blank" rel="noreferrer noopener">Simon Koster</a> became chief strategy officer; <a href="https://www.linkedin.com/in/kummell/" target="_blank" rel="noreferrer noopener">Matt Kummell</a> is now senior vice president of operations; and <a href="https://www.linkedin.com/in/amandacowie/" target="_blank" rel="noreferrer noopener">Amanda Cowie</a> leads communications, marketing and events.&nbsp;



A DCG spokesperson confirmed the Bloomberg report but declined to comment further.&nbsp;&nbsp;&nbsp;



<h3 class="wp-block-heading">A week of crypto layoffs saw a few new hires</h3>



Crypto securities platform Prometheum appointed <a href="https://www.linkedin.com/in/anoop-datta-1052821ba/" target="_blank" rel="noreferrer noopener">Anoop Datta</a> as COO of its Alternative Trading System (ATS) platform.&nbsp;



Datta was most recently head of electronic trading risk management and strategy at Goldman Sachs. He was also previously COO of Wells Fargo’s foreign exchange business and a derivatives trader at Chicago Trading Company.



The hire comes after Prometheum launched its alternative trading system, which offers digital asset securities trading, clearing, settlement and custody through integration with partners such as Anchorage Digital Bank.&nbsp;



The chief compliance officer at Andreessen Horowitz — or a16z — has joined AnChain.AI, a digital asset risk management and Web3 intelligence firm, as a strategic adviser.



<a href="https://www.linkedin.com/in/scott-walker-b1b89146/" target="_blank" rel="noreferrer noopener">Scott Walker</a> is set to advise on the firm&#8217;s innovative Web3 risk monitoring technology. AnChain.AI was founded in 2018 by cybersecurity and enterprise software veterans from FireEye and Mandiant.



Before joining a16z, Walker was a senior special examiner and counsel for digital assets and blockchain technology at the SEC. He also previously worked at asset management giant BlackRock as counsel, with a focus on hedge fund regulation, derivatives and prime brokerage.



Crypto marketplace Enclave Markets brought aboard <a href="https://www.linkedin.com/in/oltaandoni/" target="_blank" rel="noreferrer noopener">Olta Andoni</a> as general counsel and <a href="https://www.linkedin.com/in/martinprado/" target="_blank" rel="noreferrer noopener">Martin Prado</a> as chief information security officer.



Executives said in September that its Enclave Cross platform, which allows traders to make block trades off-chain, was in beta. It was inspired by <a href="https://www.investopedia.com/articles/markets/050614/introduction-dark-pools.asp" target="_blank" rel="noreferrer noopener">dark pools</a>, long a TradFi staple.



Andoni joined from Ava Labs, where she was deputy general counsel. Prior, she was chief legal officer at NFT-focused social media platform Nifty. Prado before his appointment led security and infrastructure teams at Blockchain.com and Xapo.



Layer-1 protocol Lamina1 added <a href="https://www.linkedin.com/in/g%C3%A9raldine-pamphile-350466/" target="_blank" rel="noreferrer noopener">Geraldine Pamphile</a> as its chief business development officer.



Pamphile spent nearly a decade working for the NBA, where she became a vice president of international business development and media distribution. She later joined augmented reality-focused company Magic Leap and investment platform Aser Ventures.



Input Output Global, the software research and development company behind the Cardano blockchain, hired <a href="https://www.linkedin.com/in/vanishree-rao/" target="_blank" rel="noreferrer noopener">Vanishree Rao</a> as head of applied cryptography.



Rao helped build privacy-focused blockchain Mina Protocol while she was the lead cryptographer at O(1) Labs.



She is set to help Input Output Global practically apply its research and develop and grow the company’s zero-knowledge proof expertise.



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



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/daily">Blockworks Daily</a>: The newsletter that helps thousands of investors understand crypto and the markets, by Byron Gilliam.</li>



<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Start your morning with the top news and analysis to inform your day in crypto.</li>



<li><a href="https://blockworks.co/newsletter/forwardguidance">Forward Guidance</a>: Reporting and analysis on the growing intersection of crypto and macroeconomics, policy and finance.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha directly in your inbox. Market highlights, data, degen trade ideas, governance updates, token performance and more.</li>



<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: Built for Solana investors, developers and community members. The latest from one of crypto&#8217;s hottest networks.</li>



<li><a href="https://blockworks.co/newsletter/thedrop">The Drop</a>: For crypto collectors and traders, covering apps, games, memes and more.</li>
</ul>

Latest in Crypto Hiring: Layoffs Pile Up as Bear Market Crawls On

Shalini Nagarajan

<div id="highlights-block_6344051f1cd17" class="highlights">
 <ul>
 <li>The impacted Dapper accounts haven’t been closed but services are restricted</li>
 <li>Dapper’s move is in line with the EU’s tightening Russian crypto ban</li>
 </ul>
 
</div>



Dapper Labs, the Web3 startup behind <a href="https://cms.blockworks.co/nba-top-shot-creator-raises-725m-fund-to-grow-flow-blockchain-usage/" target="_blank" rel="noreferrer noopener">NBA Top Shot</a>, has imposed a near-complete ban on Russian users in a bid to stay inline with fresh sanctions on the country.



“It is now prohibited to provide cryptoasset wallet, account, or custody services of any value to accounts with connections to Russia, irrespective of the amount of the wallet,” Dapper Labs said in a <a href="https://support.meetdapper.com/hc/en-us/articles/5486302427795-Restrictions-Affecting-Collectors-in-Russia" target="_blank" rel="noreferrer noopener">statement</a> last week.



The Vancouver-based blockchain company said the move was a result of a directive from its payment processing partner, which is subject to European Union regulations. 



On Oct. 6, the EU confirmed a <a href="https://ec.europa.eu/commission/presscorner/detail/en/ip_22_5989" target="_blank" rel="noreferrer noopener">sweeping ban</a> on providing crypto services to Russia as part of its eighth round of sanctions against the country for its aggression in Ukraine. 



The Dapper wallet is a custodial wallet for digital assets on Dapper Labs’ Flow blockchain, originally launched in 2020 as a gaming-focused network but now underpins a raft of NFT-centric projects.



The wallet supports NFT offerings NBA Top Shot, Allday, UFC Strike, CryptoKittes, which implies they will all be affected by the ban.&nbsp;



Under new measures, the bloc tightened a previous rule that restricted crypto payments to and from Russian accounts up to 10,000 euros ($9,727). The threshold has now been removed, banning all cryptoasset wallets, accounts or custody services.



<h3 class="wp-block-heading">Dapper Labs NFTs still ‘belong’ to Russians — they just can’t move them</h3>



Despite Dapper Labs stating it could no longer offer custody services to Russia-based users, the firm says those affected can still view and access their NFTs via its wallet, as it has only suspended accounts — not deleted them.



Dapper Labs says this means any NFT previously purchased by an affected Russian user still belongs to them. 



Blockworks has reached out to Dapper Labs to confirm whether the Flow blockchain itself would actively censor Russia-based users and will update this piece as we hear back.



“Any Moments you own and any Dapper Balance continue to be your property,” the company said in its blog post, referring to the blockchain-based collections that users hold.



But they can’t buy, sell or gift any NFTs, even by using their existing account balances.



The EU believes its crypto clampdown is warranted as the previous 10,000 EUR cap wasn’t effective. Its sanctions are “imposing a direct cost on Russia for its war of aggression and damaging Russia&#8217;s industrial and economic ability to wage war, manufacture more weapons, and repair existing weapons systems.”



Although Western powers have adopted several rounds of sanctions since Russia invaded Ukraine in February 2022, Moscow has not indicated a possible diplomatic solution. 



On Monday, <a href="https://www.aljazeera.com/news/2022/10/10/explosions-rock-ukraine-capital-kyiv-in-apparent-missile-strikes" target="_blank" rel="noreferrer noopener">massive explosions</a> shook Ukraine&#8217;s capital Kyiv and other cities in apparent revenge attacks.



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



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/daily">Blockworks Daily</a>: The newsletter that helps thousands of investors understand crypto and the markets, by Byron Gilliam.</li>



<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Start your morning with the top news and analysis to inform your day in crypto.</li>



<li><a href="https://blockworks.co/newsletter/forwardguidance">Forward Guidance</a>: Reporting and analysis on the growing intersection of crypto and macroeconomics, policy and finance.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha directly in your inbox. Market highlights, data, degen trade ideas, governance updates, token performance and more.</li>



<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: Built for Solana investors, developers and community members. The latest from one of crypto&#8217;s hottest networks.</li>



<li><a href="https://blockworks.co/newsletter/thedrop">The Drop</a>: For crypto collectors and traders, covering apps, games, memes and more.</li>
</ul>

Dapper Labs NFT Wallet Restricts Russian Users After EU Sanctions

Morgan Chittum

<div id="highlights-block_6170595f825f1" class="highlights">
 <ul>
 <li>Animoca previously raised roughly $139 million back in July, doubling its valuation in less than six months</li>
 <li>Investors in the most recent capital raise include 10T Holdings, Dragonfly Capital and Ubisoft Entertainment</li>
 </ul>
 
</div>



Animoca Brands, a metaverse proponent and early investor of decentralized gaming, raised a whopping $65 million in funding, the company <a href="https://twitter.com/animocabrands/status/1450784361993805829?s=20" target="_blank" rel="noreferrer noopener">announced</a> on Wednesday. The Hong Kong-based firm said in a press release that the capital will go toward “strategic investments,&nbsp; product development and licenses for popular intellectual properties.”



The company was an early investor in blue chip NFT projects such as OpenSea, <a href="https://www.animocabrands.com/animoca-brands-invests-in-dapper" target="_blank" rel="noreferrer noopener">Dapper Labs</a> and Axie Infinity developer Sky Mavis.



“In 2018 we laid out a strategy based on our assessment that in the future digital property rights would revolutionize industries by expanding financial inclusion, and that this significant change would start with NFT adoption in games,” Yat Siu, Co-founder of Animoca Brands, said. “That future is already here.”



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="576" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/0de4af_3f6766800d104f13b77d2b2fdf086cb6_mv2-1-1024x576.jpeg" alt="The Animoca Brands team in Hong Kong" class="wp-image-9649" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/10/0de4af_3f6766800d104f13b77d2b2fdf086cb6_mv2-1-1024x576.jpeg?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/0de4af_3f6766800d104f13b77d2b2fdf086cb6_mv2-1-1024x576.jpeg?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/0de4af_3f6766800d104f13b77d2b2fdf086cb6_mv2-1-1024x576.jpeg?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/0de4af_3f6766800d104f13b77d2b2fdf086cb6_mv2-1-1024x576.jpeg?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/0de4af_3f6766800d104f13b77d2b2fdf086cb6_mv2-1-1024x576.jpeg?w=464 464w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/0de4af_3f6766800d104f13b77d2b2fdf086cb6_mv2-1-1024x576.jpeg?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/0de4af_3f6766800d104f13b77d2b2fdf086cb6_mv2-1-1024x576.jpeg?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/10/0de4af_3f6766800d104f13b77d2b2fdf086cb6_mv2-1-1024x576.jpeg?w=1200 1200w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /><figcaption>The Animoca Brands team in Hong Kong</figcaption></figure>



Investors in the round include 10T Holdings, Dragonfly Capital, Liberty City Ventures, Ubisoft Entertainment, Sequoia China, Com2uS, Kingsway Capital, MSA Capital and others. Previously, Animoca pulled in a $139 million funding round in July, doubling its valuation to $2.2 billion since.&nbsp;



“Animoca Brands will continue to advance blockchain in gaming — and beyond — to introduce billions of gamers and internet users to true digital ownership,” Siu added.



The funding news comes as money continues to pour into NFT-investing platforms.&nbsp;



Galaxy Interactive, an affiliate of Galaxy Digital, <a href="https://cms.blockworks.co/galaxy-digital-affiliate-raises-325m-fund-for-nfts-interactive-gaming/" target="_blank" rel="noreferrer noopener">raised $325 million</a> for its venture capital fund dedicated to interactive gaming and NFTs on Tuesday. <a href="https://cms.blockworks.co/dapper-labs-closes-250m-round-bit2me-ico-raises-23-4m/" target="_blank" rel="noreferrer noopener">Dapper Labs</a> and Axie Infinity developer <a href="https://cms.blockworks.co/axie-infinity-developer-scores-152m-in-series-b-funding-nearing-3b-valuation/" target="_blank" rel="noreferrer noopener">Sky Mavis landed</a> a combined $402 million in capital since September as well.



MSA Capital, a participant in Animoca’s funding round, said that “crypto not only provides novel in-game monetization but also precipitates new systems for digital rights, begetting NFTs and metaverses,” a spokesperson added.



This story was updated on October 21, 2021, at 9:43 am ET. A previous version of the article misreported the funding amount at $85 million.

Dapper Labs Backer Animoca Scores $65M to Further Invest in the Metaverse

<div id="highlights-block_60c9fc7f1690b" class="highlights">
 <ul>
 <li>Solana ($SOL) and Avalanche ($AVAX) jumped roughly 19% and 23% on-day, according to Messari</li>
 <li>Dapper Labs announced a $250 million funding round, bringing the company to a valuation of $7.6 billion </li>
 </ul>
 
</div>



Cryptocurrency markets rallied following early-week losses as Federal Reserve officials maintained that inflation is &#8220;transitory&#8221; and that the US will continue its $120 billion per month bond purchases (for now). In a statement from the Federal Open Market Committee (FOMC) on Wednesday, officials <a href="https://www.federalreserve.gov/newsevents/pressreleases/monetary20210922a.htm" target="_blank" rel="noreferrer noopener">said</a> tapering &#8220;could be warranted soon&#8221; due to the country&#8217;s economic growth.



Bitcoin, often referred to as a hedge against inflation, advanced roughly 6% on-day. Ethereum followed suit, up over 9%, as of press time.



This was a nice change of tune for the market which plunged during a broad sell-off on Monday. Some point to growing concerns over Evergrande&#8217;s financial woes to the $250 billion market loss, Blockworks previously <a href="https://cms.blockworks.co/crypto-market-loses-250-billion-as-evergrande-fears-mount/" target="_blank" rel="noreferrer noopener">reported.</a> Major cryptos have since slowly recovered, but not all the way. BTC is still down almost 10% on the week.



Elsewhere, big gains were made in altcoins like Solana ($SOL) and Avalanche ($AVAX) which jumped roughly 19% and 23% on-day, according to Messari. 



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



<ul class="wp-block-list"><li>Terra ($LUNA) is trading at $31.05, up 16.4% and trading volume at $1,480,483,285 in 24 hours.</li><li>Uniswap ($UNI) is trading at $21.3, rising 5.7% with a total value locked at $4,363,399,894 in 24 hours at 4:00 pm ET.</li><li>DeFi:ETH is 32.1% at 4:00 pm ET. </li></ul>



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



<ul class="wp-block-list" id="block-1209f037-00c3-4876-ad37-a29ab610c717"><li>Bitcoin is trading around&nbsp;$43,432.91, up 6.12% in 24 hours at 4:00 pm ET.</li><li>Ether is trading around $3,025.99, advancing 9.35% in 24 hours at 4:00 pm ET.</li><li>ETH:BTC is at 0.069, rising 2.57% at 4:00 pm ET.</li></ul>



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



&#8220;The macro spillover came early with crypto markets tumbling this week along with global risk assets in response to the Evergrande headlines.&nbsp;Markets turned bearish from Monday morning, with China and Hong Kong on holiday for the Mid-Autumn Festival,&#8221; QCP Capital Broadcast said in a note. &#8220;For a market that was starving for directional catalysts and [was] extra edgy from FOMC uncertainty, this ‘risk-off’ was the perfect excuse for a hard dip.&#8221;



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" decoding="async" width="826" height="478" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/09/7587ABAC-0B14-4BBC-BC98-2A715B08E7FE.jpeg" alt="" class="wp-image-8433" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/09/7587ABAC-0B14-4BBC-BC98-2A715B08E7FE.jpeg?w=826 826w, https://blockworks-co.imgix.net/wp-content/uploads/2021/09/7587ABAC-0B14-4BBC-BC98-2A715B08E7FE.jpeg?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/09/7587ABAC-0B14-4BBC-BC98-2A715B08E7FE.jpeg?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/09/7587ABAC-0B14-4BBC-BC98-2A715B08E7FE.jpeg?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/09/7587ABAC-0B14-4BBC-BC98-2A715B08E7FE.jpeg?w=451 451w, https://blockworks-co.imgix.net/wp-content/uploads/2021/09/7587ABAC-0B14-4BBC-BC98-2A715B08E7FE.jpeg?w=378 378w, https://blockworks-co.imgix.net/wp-content/uploads/2021/09/7587ABAC-0B14-4BBC-BC98-2A715B08E7FE.jpeg?w=80 80w" sizes="auto, (max-width: 826px) 100vw, 826px" /><figcaption>Total crypto market capitalization over the past day Source:CoinMarketCap</figcaption></figure></div>



All major Wall Street gauges closed ahead for a second day in a row amid volatile trading sessions in September. Earlier in the month, the S&amp;P 500 fell 1.7% — its worst trading week since May.



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



<ul class="wp-block-list"><li>The Dow rose 1.14% to 34,304.</li><li>S&amp;P 500 was up 1.22% to 4,407.</li><li>Nasdaq made gains of 1.16% to 14,923.</li></ul>



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



<ul class="wp-block-list" id="block-d64d70c9-7052-4f1a-8167-3d370fe08354"><li>Brent crude was up to $76.11 per barrel, rising 2.34%.</li><li>Gold fell -0.55% to $1,768.4.</li></ul>



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



<ul class="wp-block-list"><li>The US dollar strengthened 0.12%, according to the Bloomberg Dollar Spot Index.</li></ul>



<h3 class="wp-block-heading">Fixed Income</h3>



<ul class="wp-block-list"><li>US 10-year treasury yields 1.316% as of 4:00 pm ET.</li></ul>



<h3 class="wp-block-heading">In other news&#8230;</h3>



Dapper Labs, the creator of NFT projects like NBA Top Shot, announced a $250 million funding round on Wednesday, bringing the company to a valuation of $7.6 billion, Blockworks <a href="https://cms.blockworks.co/dapper-labs-closes-250m-round-bit2me-ico-raises-23-4m/" target="_blank" rel="noreferrer noopener">reported.</a> 



<h3 class="wp-block-heading">We are looking out for</h3>



<ul class="wp-block-list"><li>Federal Reserve Chairman Jerome Powell will discuss pandemic recovery on Friday</li></ul>



That&#8217;s it for today&#8217;s markets wrap. I&#8217;ll see you back here 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"/>

Crypto Markets Rally; US Stocks Hold Gains: Markets Wrap

Jacquelyn Melinek

<div id="highlights-block_614b795a9af08" class="highlights">
 <ul>
 <li>“Dapper Labs will use the new funding to continue to scale and support major additional brand-driven sports, entertainment and music based products coming online and being developed on the Flow blockchain,” the company said</li>
 <li>Technological financial services crypto-based company Bit2Me closed its third phase of its initial coin offering (ICO) in just 38 seconds, the company said on Wednesday</li>
 </ul>
 
</div>



Dapper Labs, the creator of CryptoKitties, NBA Top Shot and the Flow blockchain, has closed a $250 million round in new funding led by Coatue, the company announced Wednesday.&nbsp;



The new round brings together established investors from Andreessen Horowitz (a16z,) GV (formerly Google Ventures) and Version One Ventures along with new investors including BOND and GIC.



“Dapper Labs will use the new funding to continue to scale and support major additional brand-driven sports, entertainment and music based products coming online and being developed on the Flow blockchain,” the company said.&nbsp;



The company’s Flow blockchain consists of over 500 developers and more than 100 known projects of decentralized applications for games, NFTs, DeFi and tools, according to its website. Flow also is launching UFC, or Ultimate Fighting Championship, digital collectibles for users to buy, sell, trade and collect on its blockchain, however a date for that was not disclosed.&nbsp;



This year has shown exponential growth for Dapper Labs. While beta testing its flagship product NBA Top Shop, it grew 30 times during the year, with over $780 million in collectibles bought and sold across 13 million transactions and over 1.1 accounts registered, the company said.







While Dapper Labs has grown quickly, its CEO Roham Gharegozlou said it has just scratched the surface of what the technology can do for users. The company will scale NBA Top Shot, launch new titles and improve the ecosystem building on its Flow blockchain, Gharegozlou said.&nbsp;



In March, Dapper Labs <a href="https://cms.blockworks.co/dapper-labs-superrare-consensys-and-nifty-gateway-make-nft-news/" target="_blank" rel="noreferrer noopener">raised $305 million</a> in funding, also led by Coatue. At the time, existing strategic investors included a16z, The Chernin Group, Union Square Ventures, Version One and Venrock also participated alongside Michael Jordan, Kevin Durant and other National Basketball Association players, Blockworks previously reported. 



<h3 class="wp-block-heading">Spain-based Bit2Me closes initial coin offering</h3>



Technological financial services crypto-based company Bit2Me closed its third phase of its initial coin offering (ICO) in just 38 seconds, the company said on Wednesday. In total the Spain-based company raised about $23.4 million, or €20 million.



It raised about $20.5 million, or €17.5 million, in less than three minutes across three public sale phases that took place throughout September. The company also raised $2.9 million, or €2.5 million, from an earlier private sale, it said.



&#8220;As of November 1, our tokens will be available for purchase, like any other cryptocurrency, on Bit2Me, Bittrex, and increasingly on more platforms,” said Abel Peña, chief revenue officer at Bit2Me.&nbsp;



Bit2Me offers over 20 solutions to buy, sell and manage virtual currencies and euros from a single place. Since its inception in 2015, it has expanded to clients across 100 countries and manages operations worth about $1.2 billion.



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



Are you a UK or EU reader that can’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> in London on November 15th and 16th for the Digital Asset Summit (DAS) London. Use code ARTICLE for £75 off your ticket. <a target="_blank" href="https://cms.blockworks.co/events/das-london/" rel="noreferrer noopener">Buy it now</a>.



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