This week, we highlight countries and companies embracing the metaverse and web3.
When it comes to countries, the British government has launched a consultation period seeking views on modifying the tax treatment of decentralized finance (DeFi) activity, which is currently taxed as income. China's metaverse industry is expected to grow by almost 40% this year, and the regime in Beijing has officially recognized the metaverse as a “key industry.” Meanwhile, the African continent remains a fertile ground for blockchain companies, which raised a total of $474 million in 2022, representing a 429% increase from the $90 million raised in 2021. These developments point to a broader trend: as Western governments struggle to find the right regulations, others in Africa and Asia unapologetically champion emerging technologies.
As for companies, Mastercard doubles down on crypto by creating the infrastructure necessary to better attest blockchain transactions; the NHL is launching its first fan experience on the metaverse platform Roblox; Mark Zuckerberg says he is absolutely not abandoning the metaverse; and Yuga Labs hires Epic Games veteran Mike Seavers as the company’s chief technology officer. These announcements point to another trend: despite the hype around AI, or perhaps because of it, major players remain committed to web3 and the metaverse.
The bottom line: The UK government has launched a consultation period seeking views on modifying the tax treatment of decentralized finance (DeFi) activity — particularly lending and staking. In the UK, earnings from DeFi activities such as borrowing and lending are currently considered “miscellaneous income,” subject to income tax. Capital gains tax is also levied when crypto tied to that activity is later sold.
The bottom line: The African continent continues to be a fertile ground for the growth and implementation of blockchain technology. According to the 2022 “African Blockchain Report” by CV VC, blockchain deals in Africa raised $474 million in 2022, representing a 429% increase from the $90 million raised in 2021. This growth in funding far surpassed the global average, which only saw a 4% increase in blockchain funding.
The bottom line: North Carolina has seen gains from their initial focus on bringing blockchain companies to the state and is doing all it can to keep North Carolina attractive for startups in this space.
The bottom line: Mastercard seeks to create the infrastructure necessary to better attest blockchain transactions as regulation around the sector remains a work in progress, the company said Friday. Called Mastercard Crypto Credential, the effort would define verification standards and offer technology needed for various use cases across the segment.
The bottom line: China is experiencing significant growth in the metaverse industry. In 2023, it is expected to grow 39.5% to reach US$1,06,102.8 million, according to figures from Research and Markets. The regime in Beijing has officially recognized the metaverse as a “key industry.” GlobalData also predicts that Chinese investments in metaverse-related technology will overtake the West this year.
The bottom line: Yuga Labs hired Epic Games veteran Mike Seavers as the company’s chief technology officer on Friday. Seavers said in a statement that “there have been rare moments over my career where I felt like a new technology was creating a true paradigm shift for the world,” adding that he recognizes web3 as “one of those moments.”
The bottom line: The NHL is launching its first fan experience on the online gaming platform Roblox that will bring hockey-inspired games and customizable team jerseys to the metaverse. NHL Blast, announced by the league Thursday, "will allow hockey fans and the Roblox community to hang out and play in a new online space that features many elements of NHL fandom," said David Lehanski, NHL executive vice president of business development and innovation.
The bottom line: "A narrative has developed that we're somehow moving away from focusing on the metaverse vision," Zuckerberg told investors on Wednesday. "So I just want to say upfront that, that's not accurate. We've been focusing on both AI and the metaverse for years now, and we will continue to focus on both."
The bottom line: Blur has overtaken OpenSea as the dominant platform in the NFT market, with a trading volume of $2.7 billion in Q1 2023 and a market dominance of 57.44%. Further, Solana and Polygon are emerging as significant players in the NFT market, with Solana’s Monkey Kingdom collection and Polygon’s inclusion in Binance NFT marketplace.
The bottom line: NFT collective Proof is working with 3D world-building platform Mona to unveil “Moonbirds Monaverse,” a new social and virtual world for the Moonbirds community. “We will continue to provide unique experiences aimed at combining immersive art and technology to our holders,” Kevin Rose, co-founder and CEO of Proof, said in a statement.
The bottom line: Doodles is expanding to fully customizable avatars. Today's launch of the Doodles 2 Character Builder within The Stoodio app for NFT holders marks a big step forward—with help from Pharrell Williams and Adidas. Doodles has announced an upcoming airdrop for a “Pharrell Pack.” The NFT pack includes digital apparel from musician Pharrell Williams and the fashion brands he created or collaborates with.