- GM Frens Lootbox
- CBDCs Continue To Raise Concerns
CBDCs Continue To Raise Concerns
GM. It's Lootbox, your red pill out of the matrix.
Let's take a step outside of web3 gaming for a moment. Here's what we've got for today
CBDCs continue to raise concerns
Web3 funding slump in Q1 2023
The Sneakies - 🎮 Chainlink, NFTs, Lending, and Web3 Gaming
CBDCs Continue To Raise Concerns
Governments around the world are developing Central Bank Digital Currencies (CBDCs) to modernize financial systems and provide a more efficient means of transactions.
But is it really the solution we need?Ask the French Government. They seem to have it down...
Let's see what they've got
Recently, the French government unveiled its CBDC, aiming to modernize its financial system and provide a more efficient means of transactions.
But the code has raised eyebrows, with concerns emerging that it could make the CBDC's usage practically impossible.
Users discovered several red flags in the code that could compromise CBDC's utility, rendering it ineffective in serving its intended purpose.
Here's a shortlist of the no-nos found so far...
Every single transfer requires a separate Ethereum transaction. Imagine the gas...
ERC20 transfers must be approved in a separate Ethereum transaction by a centralized registrar. Just think of the confirmation delays...
Centralized control makes the CBDC susceptible to manipulation, censorship, and single points of failure. Never a good thing...
CBDC is designed to require whitelisting of all users, processing all user transfers, and even processing ERC20 approvals before processing the "transferFrom" function.
Centralized control gives the government and the central bank excessive power over the digital currency's usage. They can burn your money...
Brace yourselves, it gets worse...
They actually built a "take your money function into the code" as revealed by Twitter user @0xCygaar.
The new Euro-pegged stablecoin from SG-Generale (a French Bank) has a function that allows them to take all of your money lol
— cygaar (@0xCygaar)
Apr 20, 2023
From taking your money to burning your money, there is nothing this CBDC can't do.
Never been a fan of the idea of CBDCs. And building in code that allows them to transfer the entire amount out of a wallet is why. Too much power!
What do you think about CBDCs?
Web3 Funding Slump
The bear has been hard, and it's not looking great for our beloved web3 startups.
According to Crunchbase data, web3 startup funding has plummeted by a staggering 82% YoY, dropping from $9.1 billion in Q1 2022 to $1.7 billion in Q1 2023. 📉 Ouch!
This is also the lowest quarterly funding amount since Q4 2020 when web3 startups raised $1.1 billion.
And that's not all...
The number of deals between VCs and web3 startups also decreased by 33% YoY, from 499 deals in Q1 2022 to 333 deals in Q1 2023.
One more thing... the number of mega-rounds of $100 million or more almost vanished, with only two such rounds recorded in Q1 2023 compared to 29 in Q1 2022.
That's a big difference! 😱
So why the sharp decline?
The recent banking insolvencies, crypto exchange failures, hacks, and other negative sentiments have seemingly taken their toll on investors.
Many investors and entrepreneurs have become more cautious and selective about investing in web3 projects, especially those that are highly speculative or unproven.
But fear not, dear Lootboxers!
Some experts believe this drop in web3 startup funding is only temporary, and the long-term outlook for the sector remains positive. So keep calm and buidl on! 💎
Mandala plans an NFT release called Cryptonauts Collection via Astar Network for its cross-chain metaverse. The project is built on Polkadot's infrastructure, which enables the connection of different parachains, and the goal is to create an AAA-level game that takes users on a spiritual trip.
Secret Garden of Kadena (SGK) announced the launch of its new Web3 multi-game platform that will feature entertaining games, play-to-earn (P2E) systems, "stakeable" NFTs for rewards, and more.
YGG partners with XPLA Telescope as an initial validator.
SuperDuperSecret Co. has raised over $1 million in pre-seed funding to create modernized versions of classic games like chess, with the new element of a 10-player battle royale. Investors included Round 13 Digital Asset Fund, Merit Circle, Polygon, Solana, and angels like Sebastien Borget, Gabby Dizon, and Cristian Manea.
Karate Combat, a live-action martial arts sports league, has raised $18 million in a funding round led by BITKRAFT Ventures to support the launch of the Karate Combat App and $KARATE token. The league uses XR technology to offer immersive viewing experiences for fans, combining live-action and CGI environments powered by the Unreal Engine.
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