Welcome to Barmy’s Daily Crypto News – December 7th, 2022
1. Fir Tree Capital Management has filed a lawsuit against Grayscale Investments
Fir Tree Capital Management filed a complaint against Grayscale at the Delaware Court of Chancery on December 6, asking for Grayscale to reduce its fees, begin redemptions, and turn over documentation pertaining to its dealings with the Digital Currency Group.
The hedge fund also wants to stop Grayscale’s efforts in converting its $10.7 billion Grayscale Bitcoin Trust (GBTC) into a spot exchange-traded fund (ETF). The New York-based hedge fund said in its complaint that Grayscale’s shareholder-unfriendly conduct had “harmed” about 850,000 retail investors.
The company also wants Grayscale to quit trying to turn the trust into an ETF, which it has been attempting to do unsuccessfully for a number of years. They firmly think that transforming GBTC to an ETF is the optimal long-term product structure for GBTC and its shareholders, and they remain fully committed to doing so. The goal of Grayscale is to provide investors with accessible, transparent, and safe investment vehicles so they may participate in the rapidly developing crypto ecosystem.
2. The platform LGND Music is set to officially launch in January 2023
LGND has announced a partnership with Polygon and global entertainment company Warner Music Group to develop a Web3 music platform called LGND Music.
The music and collectibles network LGND Music, set to debut in January 2023, is intended to enable “digital valuables from any blockchain in a proprietary player,” enabling users to play their digital treasures while on the road.
Select Warner Music Group artists will be able to introduce digital collectibles thanks to the relationship on both the app and desktop platforms. Additionally, creators will be able to communicate with their following through curated experiences and exclusive material. Lower gas costs and quicker transactions will be offered by the platform, which will be built on Polygon.
3. Oasys Closes Strategic Funding Round to Expand Its Ecosystem
On December 6, Oasys, a blockchain initiative focused on gaming with a Japanese base, announced the conclusion of a strategic funding round that included Galaxy Interactive, a venture capital firm focused on entertainment, and Nexon, a South Korean gaming corporation. Presto Labs, MZ Web3 Fund, Hyperithm, Jets Capital, Jsquare, AAG, YJM Games, and Chainguardians were among the additional businesses that took part in the round.
The firm did not disclose how much money was raised in this round, but it did state that it would be used to strengthen its validator network, extend its partner network, and improve its ecosystem. According to Oasys, this fresh amount of finance will be able to develop new commercial potential in the industry.
Building a decentralized and strong company that is based on producing high-quality games and gaming content is crucial in the aftermath of recent incidents in the Web3 sector.
4. A court in Chinese has determined that NFTs represent virtual property protected by the laws
According to the Hangzhou Internet Court, digital collectibles are virtual properties whereas NFT collections exhibit features of property rights, such as value, scarcity, controllability, and tradability.
According to the court’s further explanation, “an NFT digital collection itself, as a virtual artwork, condenses the creator’s unique expression of art and bears the value of relevant intellectual property rights. While also being distinct digital assets created on the blockchain based on the trust and consensus process between blockchain nodes, NFT digital collections.
The Hangzhou court came to the conclusion that NFT collections fall under the heading of virtual property. Additionally, it stated that the transaction in question exemplifies the commercial activity of online sales of digital goods, making it a part of e-commerce activities and deserving of regulation as such under China’s “E-commerce Law.”
5. Nigeria increases the use of the eNaira — Nigeria’s Central Bank Digital Currency (CBDC)
In an effort to further its “cash-less Nigeria” policy and promote the usage of the eNaira, Nigeria’s Central Bank’s digital currency, the country has dramatically curtailed the amount of cash that people and businesses can withdraw (CBDC).
According to a Dec. 6 circular from the Central Bank of Nigeria, people and businesses are now only permitted to withdraw $45 (about 20,000 Naira) each day and $225 (almost 100,000 Naira) every week from ATMs. A 5% fee will be assessed to individuals who withdraw more than $225 ($100,000) and a 10% fee will be assessed to businesses who withdraw more than $1,125 ($500,000) per week from banks.
“Customers should be urged to complete their financial transactions through other channels, such as Internet banking, mobile banking apps, USSD, cards/POS, and eNaira,” the statement reads.
The restrictions are cumulative for each withdrawal, so someone who withdraws $45 from an ATM on the same day and then tries to withdraw money from a bank will be charged a 5% service fee.
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