World's First Crypto Card Nexo, Meta's 47.5% Fee, Twitter Adopts "Poison Pill"
Chips Is the New Oil, Billionaire Hostile Takeover, Crypto Goes Mainstream
Happy Wednesday Everyone!
By Terrence Hooi
Chief Investment Strategist
1.) Nexo & MasterCard Launches World’s First Crypto Card
Last week, Crypto lender Nexo has teamed up with global payments company Mastercard to issue the world’s first “crypto-backed’ payments card for users to use their crypto balances as a collateral. The service will be launched in selected European countries allowing users to spend without having to sell their cryptos such as Bitcoin and at the same time getting credit granted by using Bitcoin as a collateral.
Singular Take: With no monthly minimum payments or 0% interest for customers who maintain a loan-to-value ration of 20% of below, this could create a bridge for crypto adoption and traditional financial networks to help digital assets become more widely accepted.
2) META Wants 47.5% on sales for its Metaverse platform
Meta, formerly Facebook, has announced its Meta marketplace initiative where it plans to charge upwards of 47.5% on all sales on its platform and product ecosystem. The fee consists of a 30% hardware fee and a 17.5% “software” fee for Horizon Worlds.
At the heart of the issue is how Meta will be constructed first with its Horizon Worlds Metaverse app available on Oculus. In contrast, we are seeing Twitter is looking to capture this Web3 gold rush by announcing NFT Twitter.
Singular’s Take: It’s still unclear whether the next wave of metaverses will be shepherded by today’s social media giants should be made a closed garden or an open one where a closed Metaverse is controlled by a central authority. Conversely, an open Metaverse allows people to buy and own land and items as NFTs usually traded with cryptocurrencies.
Apple often criticized for charging 30% App Store Fee
Horizon World’s transaction fees at 30% goes to Meta via Oculus,
NFT Marketplace OpenSea takes 2.5% cut for each transaction
Sandbox, a decentralized virtual world which users can buy and sell items for $SAND, the native crypto of Sandbox
3) Twitter Adopts “Poison Pill” to Fend Off Musk’s $43B Takeover
On Friday, Twitter adopted “Poison Pill” to fend off $43B hostile takeover by Elon Musk. This limited duration shareholder rights plan is a common way for a company to fend off potential hostile takeover by during the stake of the entity, or in this case a person eying the takeover.
Twitter’s board adopted a so-called “poison pill” after Musk’s offer to buy the company for $54.30 per share.
This new provision allows any person or group to purchase ownership of at least 15% of Twitter without board’s approval
Private equity Thoma Bravo competing with Musk to take Twitter Private
Singular’s Take: With the Poison Pill set to expire April 14th, 2023, any person or group acquires beneficial ownership of at least 15% of Twitter’s outstanding common stock without the board’s approval, other shareholders will be allowed to purchase additional shares at a discount. Let’s take a look at the shareholding structure of Twitter today.
Singular’s Action: Whether this latest drama of Elon Musk taking Twitter private or not, this could create more uncertainties for Twitter. Upcoming Twitter earnings in on April 28th.
Terra's LUNA surges 17% as UST becomes the third-largest stablecoin
Rhode Island green housing bill introduced last week proposes a “green coin” to be issued as an incentive for carbon emission reduction.
Australia's first bitcoin exchange-traded fund, will be listed on Cboe equities next week
Gold and bitcoin have seen a negative correlation recently, with gold rising 7.5% during bitcoin's recent price decline.
NVIDIA: Nvidia beats Q4 estimates and expected to double in net income over next 2 years with the rise of data centers, gaming businesses, crypto miners, AI , etc… Long On dips, still up +17% from last month. Semiconductors are now the “New Oil”.