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Bitcoin and the Lindy Effect

In the evolving realm of global finance, Bitcoin, a pioneering digital currency, has emerged as a popular alternative asset class. As per the 2022 CFA Institute Investor Trust Study, numerous financial entities including endowments, sovereigns, pension funds, and institutional investors, are gradually diversifying their portfolios to include cryptocurrencies like Bitcoin. This article delves into this shift in investment strategies, referencing a survey by Coalition Greenwich that reveals two-thirds of institutional investors’ exposure to cryptocurrencies. Furthermore, we explore the Lindy Effect, a concept that helps understand the perceived value and future stability of an asset class based on its longevity, and how it applies to Bitcoin.

One of the most researched alternative assets is Bitcoin, a pioneer in the world of digital currencies. According to the 2022 CFA Institute Investor Trust Study, endowments, sovereigns, pension funds, and institutionals are already allocating a portion of their investments to cryptocurrencies like Bitcoin, showcasing a gradual yet significant shift in asset allocation strategies.

For the study, Coalition Greenwich surveyed 3,588 retail investors and 976 institutional investors in October and November 2021 from 15 markets across the globe. The survey revealed an astonishing two-thirds of institutional investors have exposure to cryptocurrencies. 

“Bitcoin is a compelling asset for institutions seeking diversification and inflation protection, and I expect adoption to accelerate in 2024.” Paul Tudor Jones, Founder of Tudor Investment Corporation (October 2023)

Percentage of Organizations Currently Investing in Cryptocurrencies

The Lindy Effect

It is conventional wisdom that humans look to staying power to judge if something is reliable in the future. If the ground shifts, builders would be weary to build a house upon it instead of looking for solid footing before the start of construction. In the same way, people look to the longevity of an asset class to judge its potential future stability as well. This has led the modern risk manager to look at things like an S&P 500 Index or government-backed bonds as a means of investing today’s capital for “safe” future returns.

The Lindy Effect puts into layman’s terms what economists describe by way of the Regression Theorem. In short, individuals look to the collective subjective value of something in the recent past and project that value to the current and short-term future times. However, this is often a recency bias which can lead people to invest in what has worked before believing it will always work in the future. 

The Lindy Effect is often the barometer for commodities like gold and silver, as they have had thousands of years of documented history as a medium of exchange, stores of value, and industrial use. In the same breadth, Bitcoin has only been around since the Genesis Block was launched on January 3rd, 2009. To many, this remains an unproven medium of exchange or store of value as the asset itself lacks longevity in comparison to other asset classes.

To some, Bitcoin is a fad that will burn out like the pet rock. To others, there is an asymmetrical risk involved with flagrantly brushing aside Bitcoin instead of taking an educated look at the potential evolution of money. 

The pivot into Bitcoin has yielded phenomenal returns in contrast to other salient investments, such as Nvidia and Tesla, as shown in the next figure. 

Bitcoin’s Return on Investment Since 2016

The perception of Bitcoin as an asset class is varied, with some considering it a short-lived trend while others view it as a significant evolution in the financial system. The Lindy Effect, used as a measure for the reliability of commodities like gold and silver, presents a challenge for Bitcoin due to its relatively short existence since its inception in 2009. However, the increasing interest and investment in Bitcoin by institutional investors indicate a potential shift in this perspective. As we move forward, it will be interesting to observe whether the financial world embraces Bitcoin as a reliable medium of exchange and store of value, or if it succumbs to the test of time.

Impact of Adding Bitcoin to a Global Stock and Bond Portfolio

In an ever-evolving financial landscape, the traditional approach to investment portfolios, often composed of a 60/40 split between equities and bonds, is facing new challenges. With diminishing returns, increasing inflation, and reduced diversification benefits, institutional investors are exploring alternative asset classes to bolster their portfolio performance. This article delves into the growing interest in alternative investments, their potential benefits, and the risks they may pose.

The 60/40 portfolio, traditionally composed of equities and bonds, has served investors reliably for decades, as shown in Figure. However, the conventional portfolio of stocks and bonds is no longer as efficient as it once was. Diminishing diversification benefits, reduced actual returns, and increasing inflation pose significant hurdles for family offices, endowments, and pension funds. With the evolving financial landscape, there’s increasing interest in diversifying this blend to include new asset classes commonly referred to as alternatives.

Institutional investors have significantly allocated resources to alternative investments for many years to enhance their returns. A 2023 survey by Fidelity Investments revealed that pension funds allocate 22% to such alternatives, whereas endowments and foundations dedicate 32% of their portfolio to them.1

Figure 1: 60/40 Performance Over Long Periods with Traditional Assets


Source: New York University. 60% S&P 500 Index, 40% 10-year U.S. Treasury Bonds. Simplify The Case for Alternatives Case Study. The results are hypothetical (data ended 12/31/22), do not indicate future results, and do not represent returns that any investor attained. Hypothetical strategies and indices presented are unmanaged and do not reflect management or trading fees. One cannot invest directly in an index

The prestigious Yale University Endowment, a bellwether in the institutional portfolio landscape, has increased its exposure to alternative assets. In the last three decades, their allocation to alternative investments has surged from below 20% to above 77%, as illustrated in Figure 2. This strategic shift has proven beneficial for Yale; over the two decades concluding in June 2022, their portfolio garnered an average yearly return of 11.3%, compared to the 60/40 portfolio’s 7.2%.


Source: Yale Investments Office, 2023, Simplify The Case for Alternatives Case Study.

WHAT IS AN ALTERNATIVE INVESTMENT?

An alternative investment is an investment in assets different from traditional investment forms such as stocks, bonds, and cash. Typically, alternative investments include hedge funds, private equity, real estate, commodities, and tangible assets like art and antiques. They can also encompass newer asset categories like cryptocurrencies. Alternative investments are known for their potential to provide diversification benefits to a portfolio because their returns often have a low correlation to traditional asset classes. However, they may also come with higher fees, less liquidity, and a higher investment threshold compared to traditional investments.

The world of investment is undergoing significant transformation as traditional asset classes like stocks and bonds no longer offer the same level of efficiency and returns. As a result, institutional investors are turning to alternative investments such as hedge funds, private equity, real estate, commodities, and even cryptocurrencies to diversify their portfolios and enhance their overall returns. While these alternative assets come with their own set of risks and challenges, including higher fees and less liquidity, their potential for diversification and higher returns cannot be overlooked. As we navigate this changing financial landscape, it’s clear that alternative investments are playing an increasingly crucial role in institutional investment strategies.

Growth in the Metaverse Market

Projected to become a multi-trillion dollar industry, the metaverse is seeing key trends such as increased corporate adoption, decentralization through blockchain technology, and skyrocketing investments. However, history shows that smaller, agile projects can surpass larger systems, reminding us of the unpredictability of technological advancements. As marketing opportunities arise within this space, the importance of real-world testing for successful blockchain application becomes evident. Furthermore, the metaverse offers unique asset qualities, like sovereign ownership and freedom from interference, pointing to a future of digital ownership and control.

The metaverse is expected to experience a rapid growth in both market size and user adoption the next seven years.

As we have seen in this report, McKinsey and Citibank are both estimating the Metaverse industry to be a multi-trillion dollar industry. According to an optimistic scenario by statista, by 2030, the total addressable market value of metaverse could surpass $4.44 trillion, while in terms of users, it could onboard 700 million people worldwide by the end of the decade, which would be equivalent to 8.23% of the expected global population.

Some of the key trends of the metaverse for this decade will be:

  • Increasing Adoption of the Metaverse in the Corporate World: The growth of the metaverse in its initial phase has largely been fueled by the consumer sector. However, as the technology becomes more sophisticated, it could open up various use cases for companies ranging from product virtual simulations to employee experience.
  • Continued Decentralization: Blockchain technology has enabled the true ownership of assets in the metaverse, and with time, more and more users are realizing its advantages over the centralized legacy model. Moreover, it also makes assets more liquid through various marketplaces. In the coming years, blockchain technology is expected to become the default platform for most metaverse projects to hold and transact assets.
  • Increased Investments: Given the metaverse still needs a huge leap in technology, various entities are funding it, looking to capitalize on the potential of the metaverse. As stated earlier in the report In the first five months of 2022, VC, corporations and Private equity funds invested over $120 billion60 in the metaverse, which is more than double the amount ($57 billion) invested in the entire year of 2021. This number is expected to increase exponentially over the next few years.
  • Marketing in the Metaverse: As the number of active users in the metaverse grows, a new channel for marketing could open up for corporations where they would rent popular places in the metaverse and use it to advertise their products. It would also open up a revenue channel for metaverse owners and content creators.

Often times throughout technological advances, disruptions to industries, and historical paradigm shifts, the outcome is unseen by anyone. If you asked someone during the 1990s who would be the biggest internet provider in North America in 2020s, they would likely say AOL, or if you asked someone in the late 1800s who would be the biggest oil company in the late 1900s, they would say Standard Oil. It has historically been the case that smaller, agile projects can adapt to market forces and speed ahead of the slow, complicated systems which may lead the pack today.

Often in the blockchain and crypto industry, there is a lot of talk about mass adoption and potential use cases for a particular piece of technology. While theory is necessary and very tempting, it is the application and real-world testing that is necessary to figure out what simply works and does not work. Drawing up a good idea on paper that cannot possibly be implemented in reality happens more often than not. And while there will be an extremely high amount of failures, the blockchain industry needs to go through these phases. It not only reveals best practices, and what is viable and nonviable, but also conditions the public for what to expect.

This technology provides a mix of asset qualities which people have not had access to before in history. The most novel, is the right to sovereign ownership over the asset, and to freely do with that asset whatever the individual wants without interference from an outside third party.

Obstacles to Metaverse Adoption

As the digital revolution continues to evolve, the concept of the metaverse has emerged as a fascinating prospect that could reshape our understanding of reality and interaction. This immersive virtual universe promises endless possibilities, from socializing and entertainment to business and education. Yet, despite its potential, the journey towards a fully realized metaverse is fraught with challenges that extend beyond just technical hurdles.

The early promise of the metaverse has already managed to captivate the imagination of various stakeholders, including technologists, investors, and futurists. However, there are several obstacles in its way to becoming a widespread reality.

Technology: One of the biggest obstacles to the adoption of the metaverse is the current limitations of technology. As discussed in the earlier sections, the technology for all the different layers of metaverse is still in its early stages. Without a fully developed technology stack for metaverse, it is impossible to unlock it’s full potential. According to the meta, it could take at least 15 years59 to develop the technology to make the metaverse as immersive as the real world.

Lack of standardization: The metaverse will require a set of standards to ensure interoperability and seamless communication between different virtual environments. However, there are currently no widely accepted standards, and different companies are developing their own proprietary systems, which could limit interoperability. This could serve as a major hindrance in achieving future growth.

Regulation: The metaverse will likely require some form of regulation to ensure that it is safe and fair for all users. Some metaverse platforms have been already accused of criminal activities; however, the regulation of virtual worlds is a complex and largely untested area, and it remains to be seen how governments and regulatory bodies will approach this issue.

Privacy and security: As with any online platform, privacy and security are major concerns. The metaverse will require robust security measures to prevent hacking and protect user data. There is also a risk of identity theft and fraud in a virtual world, which will need to be addressed.

Social acceptance: There is a growing apprehension among some people that the metaverse could have negative consequences for human life. One of the primary concerns is that the metaverse will reduce the amount of time people spend engaging in real-world activities, leading to a loss of touch with reality and a degradation of the essential human experience designed by nature. In addition, there are ethical questions about what content and activities should be allowed within the metaverse and where the line should be drawn between what is acceptable and what is not. As the metaverse becomes more prominent, it is likely that it will face significant backlash from individuals and groups who are skeptical or critical of its impact on society.

In conclusion, while the metaverse holds immense promise, its path to becoming a mainstream reality is not without significant obstacles. From technological limitations to lack of standardization, regulatory concerns, privacy and security issues, and social acceptance, the challenges are manifold. However, these are not insurmountable and with the right approach, solutions can be found. As we move forward, it’s crucial that we navigate these challenges thoughtfully to ensure the metaverse evolves into a space that is safe, inclusive, and beneficial for all.

Top 5 Upcoming Metaverse Projects

The digital frontier is expanding at a rapid pace with the development of numerous metaverse projects, each promising unique experiences that leverage blockchain technology and the concept of Web3. Among these emerging landscapes, projects like Eldora, The Otherside, Star Atlas, Outer Ring MMO, and Bloktopia are pushing the boundaries of virtual interaction, ownership, and gaming.

These platforms not only offer unprecedented opportunities for privacy, networking, and community building but also blend elements of economics, strategy, and role-playing into their fabric. From empowering users with user-friendly interfaces for community creation to providing a haven for crypto enthusiasts, these initiatives aim to reshape the way we interact with the digital and economic realms.

Eldora

The upcoming metaverse project Eldora aims to address major pain points that people face: lack of privacy in their online interaction, siloed network and rapidly evolving technologies. Eldora proposes two answers to these problems: a quick and easy on-ramp to the blockchain and a Web3 powered environment.

Eldora will provide an user-friendly interface for people who want to create their own community by using Web3 tools. With a key aspect of privacy, Eldora gives the opportunity for family offices, HNWI, to develop their network inside the metaverse and connect them with a money pool smart contract. Businesses will be able to directly connect with these actors for providing their services while individuals will be able to connect and learn about emerging blockchain. One of the main features of Eldora will be clubs which will facilitate the sharing of information and allow both businesses and consumers to network and share opportunities. To gain access to these clubs, users will need to have an Eldoran pass, which takes the form of a NFT on the Ethereum Blockchain.

Eldora will integrate many blockchain services to benefit Eldorans, such as an NFT marketplace, DEX, Defi protocol, trading room, on-chain data visualizations and on-chain messaging integration. The Eldora Pass NFT, which gives holders access to online and offline special events, clubs and businesses, will be available at a 50% discount for the first hundred whitelisted addresses. Register for the Eldoran Pass whitelist here.

Otherside

The Otherside is one of the most highly anticipated metaverse projects due to its ambitious plans and affiliation with Animoca brands and Yuga Labs, two prominent names in the Web3 space. The game will be an integral part of the Bored Ape Yacht Club (BAYC) ecosystem, enabling NFTs to be transformed into playable characters within the metaverse.

Owners of Bored Ape Yacht Club or Mutant Ape Yacht Club NFTs will be allocated plots of land, and additional plots will be available for purchase using the APE token. These plots of land are represented by nonfungible deed tokens called Otherdeeds. The APE token is the platform’s native token and will be used for utility and governance actions within The Otherside metaverse. The Otherside is being developed using the M2 network, which can facilitate over 10,000 players simultaneously interacting with the platform, and features voice chat capable of supporting thousands of players speaking concurrently.

Star Atlas

Star Atlas is an innovative space exploration game that is being developed on the Solana blockchain. It offers players the chance to own and trade virtual assets, engage in epic battles, and immerse themselves in a vast and captivating sci-fi universe. Set in the year 2620, the game combines elements of strategy, role-playing and economics as players build and manage their own space empires, complete with customizable fleets of ships and advanced technologies. Three factions are available for players to join: the ONI, a consortium of alien species; the Uster, sentient androids; and the MUD, a faction of humans.

Thanks to its use of Unreal Engine 5, Star Atlas boasts stunning, next-generation graphics that rival or surpass the latest AAA games. The game operates on a dual-token model, utilizing the ATLAS token for utility and the POLIS token for governance. ATLAS tokenholders can purchase digital assets, including ships, land and equipment, and pay for operating expenses for their mining equipment and ships. Meanwhile, POLIS tokenholders wield power over different regions in the game, enabling them to levy taxes, charge tolls, and create laws for players in their jurisdiction.

Outer Ring

Outer Ring MMO is an RPG game that combines science fiction, fantasy, and a tokenized economy in an open-world universe. The open-ended storyline allows players to freely explore the vast galaxy and create their own stories, adding to the game’s replayability. The game’s fusion of genres, including third-person shooter, MMORPG, and open- persistent world, allows for various game modes and events, including PVP combat and eSports competitions. The different tiers of planets and environments add to the game’s playability, allowing players to choose their level of difficulty and risk.

The vision of Outer Ring as a metaverse is ambitious, as it aims to create a virtual world without physical and social boundaries, where players can interact, develop their own stories, and even engage in real-world transactions through the Player Driven Economy. The Galactic Quadrant token is the game’s governance token, allowing holders to have direct influence over the game and adding another layer of engagement for players.

Bloktopia

Bloktopia is an upcoming virtual reality blockchain game that aims to bring the crypto community together in an immersive and engaging environment. The game is represented as a skyscraper with 21 levels, paying homage to Bitcoin’s total supply of 21 million. The game will provide a central hub for crypto enthusiasts, where users can access crypto information and immersive content all in one place. Bloktopians will be able to earn revenue through real estate ownership, advertising revenue, games, building networks and more.

The game will use advanced 3D creation engine technology to create stunning visualizations and experiences. Players can use Bloktopia’s native token, BLOK, to purchase in-game items and upgrade their real estate, known as Reblok. Reblok will be a valuable commodity within Bloktopia, allowing users to speculate on the property and either resell for profit or lease for passive income opportunities. Bloktopians can also earn through advertising, with a proportion of advertising fees generated returned to tokenholders. Learn more about Bloktopia in our article here.

In conclusion, the metaverse is not just a singular concept but an ecosystem of diverse projects each carving out their niche within the digital universe. Eldora focuses on privacy-centric community building with blockchain convenience, while The Otherside expands the Bored Ape Yacht Club’s reach into virtual reality. Star Atlas invites players into an intricate space odyssey with strategic gameplay, and Outer Ring MMO merges genres for a multifaceted gaming experience. Finally, Bloktopia creates a VR-based central hub for the crypto community.

These platforms are not merely games or social networks; they represent the next step in online evolution—a convergence of technology, entertainment, and digital economics that promises to define the future of our online lives. Each project, with its specialized offerings, contributes to a broader vision of the metaverse—one that is rich with potential and waiting for explorers to stake their claim in its ever-expanding territories.

Top 5 Metaverse Projects

In the dynamic world of digital innovation, developers are continually pushing boundaries to create immersive experiences that transform reality as we know it. This exploration is centered on Top 5 Metaverse Projects, which are setting new standards in virtual interaction: The Sandbox, Illuvium, DeFi Land, Decentraland, and Upland. Each of these platforms, integral components of the Top 5 Metaverse Projects, offers unique experiences, transforming how users interact with digital spaces and enabling a deeper level of engagement and ownership.

The Sandbox

The Sandbox is a virtual world building game where players can create, build and share their own voxel-based worlds and games with others. The Sandbox and its successor, The Sandbox Evolution, first hit the market as mobile-only Web2 games and became wildly popular, generating over 40 million downloads combined. Seeing the potential of blockchain technology, the games publisher, Pixowl, ventured into the Web3 space in 2018 to give players true ownership of their in-game items. The Sandbox metaverse platform comprises three main components: their voxel editor, marketplace and game maker. The Sandbox’s voxel editor, VoxEdit, and The Sandbox Game Maker allow anyone to build 3D models, games and nonfungible tokens (NFTs).

No coding is required for either editor, and they are completely free to use, facilitating a hassle-free experience for users aiming to make their first creation on the blockchain. Each model from VoxEdit is represented as an NFT called ASSETS. Users can earn from their NFT creations by uploading, publishing and selling their ASSETS on The Sandbox’s NFT Marketplace. The game uses three tokens to support its economy, SAND, LAND and ASSETS.

SAND is the games central token and is used for all of the ecosystem’s transactions. Holders of the SAND token can use it to acquire in-game items and NFTs, participate in governance, and earn rewards through staking. The nonfungible LAND tokens represent a digital piece of real estate in The Sandbox metaverse. Players can populate these LAND tokens with games and ASSETS. Each LAND token is large enough to support a robust gaming experience and can be managed by a single player, but those looking for a larger and more immersive online experience can combine multiple LAND tokens into an ESTATE.

Illuvium

Illuvium is a metaverse game that offers a unique combination of open-world fantasy gameplay and PvP autobattler mechanics. Players take on the role of a transport-ship survivor and explore a dangerous planet filled with mythical creatures known as Illuvials. The game features over 100 different Illuvials to collect and allows players to train and fuse their creatures to increase their power. The game’s economy is powered by its native token, ILV, which is used for purchasing Illuvials, staking and earning rewards. ILV holders will have a say in the project’s future, as stakers receive regular distributions and can vote on tokenomics-related issues and features in the game itself. The game’s integration with immutableX allows for instant peer-to-peer trading of in-game items with zero gas fees. Illuvium represents a new era in blockchain gaming, offering a fully decentralized protocol with AAA-rated blockchain gaming experiences that appeal to both casual and competitive players.

DeFi Land

DeFi Land is a decentralized finance game that incorporates well-known AMMs, DEXs and lending protocols to create a gamified environment where users can seamlessly perform DeFi actions. Each in-game asset corresponds to a real cryptocurrency, such as Solana (SOL) representing sunflowers, USD Coin (USDC) representing corn and Cope (COPE) representing pumpkins. In addition to DeFi features, DeFi Land offers mini-games and NFTs to enhance the user experience. Players can start for free and work their way up to the play-and-earn tier, where they can earn income for completing tasks or reaching milestones. The game features a dual-token model, with the native utility token, DFL, used for trading in-game assets and NFTs, staking and LP incentives, game mechanics, and governance votes. The game’s second token, GOLDY, is used to upgrade and craft NFTs and for in-game micro-transactions. DeFi Land is currently available on desktop, and a mobile version is in development, set to release later this year.

Decentraland

Decentraland is a decentralized virtual reality platform built on the Ethereum blockchain that allows users to buy, sell and create interactive 3D scenes and games. With the platform’s set of developer tools, including a visual scripting tool, users can easily create unique experiences, even if they have no programming skills. The world of Decentraland is represented as LAND, which is divided into parcels and sold to players for the platform’s native token, MANA. The value of each LAND token is determined by its location, with those located near attention hubs and capable of hosting applications being more valuable. Additionally, users have full control over the content published on their portion of virtual land. MANA is also used for purchasing in-game goods and services, making it an integral part of the platform’s ecosystem.

Upland

Upland offers players an exciting virtual property trading game where they can participate in buying, selling and trading virtual real estate based on real-world locations. The game’s interconnected world allows players to explore virtual cities, interact with one another, and take part in events. Moreover, the play-to-earn model of the game rewards players for their efforts by allowing them to earn real-world money using UPX, Upland’s native game currency.

Players can use UPX to mint property NFTs, which can be traded on an open marketplace for both USD and UPX. Unlike many in-game tokens, UPX has a fixed price and is not tradable outside the Upland ecosystem. This encourages players to reinvest their tokens into the game, as there is no token outflow. The game has already paid out over $1.5M to players. Furthermore, Upland takes pride in its thriving and active player base, which contributes to the game’s interconnected community. The developers plan to continue to expand the game by creating a fully realized digital metaverse that includes arcades, marketplaces, businesses and more.

With the continuous advancement of the digital age, the aforementioned metaverse projects – The Sandbox, Illuvium, DeFi Land, Decentraland, and Upland – serve as pioneers in the space. Each offers distinctive experiences that cater to diverse user preferences. From world-building and fantasy gameplay to gamified finance and virtual real estate, these platforms encapsulate the vast possibilities of the metaverse. As they continue to evolve and innovate, they pave the way for a future where virtual and real-world interactions seamlessly intertwine, redefining our perception of reality. Our exploration of the Top 5 Metaverse Projects provides a glimpse into the exciting future of the metaverse.

Top Metaverse Hacks

The metaverse has largely avoided major platform exploits. However, bridges to these virtual worlds, like Axie Infinity’s Ronin Bridge, have been hacked, with $600 million stolen in the largest incident. As the metaverse grows and integrates more Web3 sectors, it becomes a more attractive target for hackers. Prioritizing security is crucial for the future of metaverse platforms.

No metaverse has suffered a major exploit in its platform layer so far, but bridges to metaverses have been hacked. This could mostly be attributed to the fact that other sectors of Web3, like DeFi, are far more vulnerable and lucrative to hackers. The single biggest exploit related to the metaverse has been related to the infrastructure layer.

Axie Infinity Ronin Bridge exploit: The Ronin Bridge hack is not only the biggest hack in the metaverse but the biggest by value in the entirety of Web3, with assets worth a whopping $600 million50 siphoned by hackers.

Acknowledging the raging popularity of its play-to-earn game, Axie Infinity, the parent company, Sky Mavis, moved the game onto its own network from Ethereum to make transactions cheaper for players; it was a sidechain of Ethereum called the Ronin network. Players could move their assets in or out from the sidechain to the Ethereum mainnet through the Ronin Bridge.

Axie Infinity soon became the highest revenue-generating DApp, with over $1.5 billion in value locked on the Ronin network at its peak.

On March 23, 2022, an attacker managed to obtain four of the Ronin validator keys, which were held by Sky Mavis centralized servers. The attacker then identified a backdoor in the gasless remote procedure call node and successfully obtained access to five private keys, including four validators of Sky Mavis and one validator operated by Axie DAO. According to the Ronin Bridge design, only five out of nine validator keys are required to recognize a withdrawal or deposit event, which allowed the attacker to validate and drain funds from the bridge.

Following the incident, Binance and a16z led a fresh round of $150 million in funding and insured Axie users of reimbursement, preventing a snowball effect from the crisis.

Since then, various attempts have been made to recover the stolen funds, with a government bureau of Norway, Chaina lysis and the U.S. Federal Bureau of Investigation managing to recover $36 million cumulatively.

Although this exploit was not directly related to metaverse technology itself, it serves as a reminder that as the metaverse evolves and incorporates other Web3 primitives lack of major exploits, the metaverse remains a major target like DeFi, it will also inherit their vulnerabilities. Despite the for social engineering hacks, with Arkose abs, a fraud prevention entity, reporting that metaverse businesses face more bot attacks compared to other sectors.

As adoption increases and more valuable data and assets are stored in the metaverse, it will soon be under threat from major exploits. This is reflected in Metas strategy to attract white hat hackers to hack its R AR headsets and reward them up to $300,000 for finding critical vulnerabilities.

Metaverse platforms must ensure that security is their top priority in the coming years if they want to thrive.

In conclusion, the metaverse, despite its relative insulation from major exploits thus far, is not immune to the vulnerabilities that plague other Web3 sectors. The Axie Infinity Ronin Bridge exploit serves as a stark reminder of this fact. As the metaverse continues to grow in popularity, attracting more users and storing more valuable data and assets, it becomes an increasingly attractive target for hackers. Therefore, it is incumbent upon metaverse platforms to prioritize security in their development strategies. The future success and sustainability of the metaverse hinge on the ability to provide a secure environment for its users.

Meet SpaceCatch – The Web3 Game Exceeding All Expectations

Just like any other blockchain enthusiast out there, you might be looking for crypto games to try out and maximize your earnings in 2024. And this is great, considering that earning tokens through blockchain-based games can be fun and help you learn how to deal with cryptocurrencies if you are new to the industry. 

But finding a suitable game for you is where the situation gets a little tricky. Each game tries to become famous through its features and gameplay, constantly working on its graphics, tokenomics, and story. But not all of them manage to come up with a high-quality product. 

However, those who build a good strategy and closely follow it may find success. Combining advanced technologies may even get them one step closer to becoming some of the top choices among crypto gaming enthusiasts. 

A promising game is SpaceCatch, which became popular in no time thanks to its tokenomics, an engaged community, and a game concept that will make it impossible to stay away from the project. 

Little by Little, a Little Becomes a Lot

SpaceCatch is a blockchain-based game that surprises users with an intriguing story and a game that could not be better. The SpaceCatch team has been working for a little over 1 year and a half to develop a bright product with promising tokenomics and numerous benefits and opportunities for users. 

SpaceCatch welcomes users to a parallel universe “not so different from ours.” In the SpaceCatch world, the main characters are AI-driven aliens who invaded Earth to use the land for mining biomass. To save their world, humans become Catchers and have the main goals of fighting the aliens and restoring peace on Earth. 

Catchers can build their own weapons, improve existing ones, choose their shields, and find the best ways to defeat aliens, invaders, and enemies. The catch is that players do not know what type of alien they are about to fight until the battle starts, so they will have to be prepared for anything they might face. Thus, they should build a strategy and choose weapons and shields wisely. 

SpaceCatch focused on working with multiple advanced technologies to develop a stunning and engaging game. With the help of complex AI features, AR (Augmented Reality), and 2 game models, SpaceCatch provides a great product that will challenge users in many ways. 

SpaceCatch uses 2 game models: P2E (Play-to-Earn) and M2E (Move-to-Earn). The play-to-earn game model is pretty straightforward, requiring users to fight the aliens and restore peace on Earth. On the other hand, in the M2E game model, users have the opportunity to learn more about both the SpaceCatch universe and augmented reality. 

The move-to-earn game model allows users to simply walk with the game open and explore in-game elements smoothly blended with real-life elements, such as a tree, a building, a car, or a bench. This way, while in the M2E mode, you will likely see an alien on top of your car, next to you in a park, or between the aisles of a supermarket. 

The M2E game model offers users various rewards they can then use to purchase in-game assets. They can also share them with other users who prefer the P2E game mode rather than M2E. 

Get Your CATCH Tokens to Be at the Top of Your Game

Not only did SpaceCatch develop a bright game, but it also worked on a native token that will offer users plenty of benefits. The CATCH token was developed to allow users to purchase in-game assets they can use to improve their strategy and power. 

CATCH allows for staking, meaning users can earn passive income by simply locking up part of their CATCH tokens and waiting for the rewards. But how can you get some CATCH tokens? Well, all we have to say is that you should hurry, as CATCH seems to have become extremely popular. 

With the token presale event that ended recently, SpaceCatch achieved its goal in just a few weeks. The project raised $2,200,000 during that event and does not plan to stop there. The company is already working to start a launchpad round allowing users to purchase CATCH tokens for $0.09. 

Stay Tuned

With an official version close to being launched on the App Store and Google Play, SpaceCatch constantly updates its website to let users know how it progresses. 

Furthermore, to join the SpaceCatch community and be the first to learn about all the updates, you can follow the project’s activity on Telegram, Discord, Twitter (X), YouTube, Instagram, Threads, Medium, and CoinMarketCap.

The Case for Bitcoin in an Institutional Portfolio Research Report

The fusion of traditional investment strategies with the innovative world of Bitcoin has created a new horizon for institutional investors. This groundbreaking report delves into Bitcoin’s potential to revolutionize asset portfolios, offering a meticulous analysis of its historical performance and strategic importance. It uncovers the compelling reasons driving institutional interest towards Bitcoin and addresses the challenges and opportunities this digital asset presents. With over 120 pages, six chapters, and 94 charts, this report provides a step-by-step guide for institutional investors who want to learn more about Bitcoin.

Download ‘The Case for Bitcoin in an Institutional Portfolio’ Research Report. 

Bitcoin’s Strategic Impact on Institutional Portfolios

In exploring the optimal allocation strategies and time horizons for Bitcoin investments, the report highlights Bitcoin’s unique market behavior. It discusses the balancing act of volatility and returns, providing a nuanced view of how Bitcoin can enhance portfolio diversification. The report also examines the global regulatory landscape, crucial for institutions navigating this new terrain.

Between 2014 and 2023, a portfolio with a traditional 60-40 allocation in stocks and bonds, rebalanced quarterly, achieved a 71% cumulative return. However, this return was significantly enhanced to 157% by incorporating just a 5% investment in Bitcoin. This stark contrast underscores Bitcoin’s powerful influence in portfolio performance, demonstrating its effectiveness as a diversifier and a potential source of higher returns in mixed-asset portfolios.

The report further addresses the infrastructural aspects of institutional Bitcoin investment. It sheds light on the technological and operational considerations essential for incorporating Bitcoin into traditional investment portfolios, emphasizing the importance of security and regulatory compliance.

Expert Insights and Forward-Looking Analysis

The report is a culmination of expert research, drawing on diverse perspectives from finance and technology. It’s an invaluable resource for institutional investors, providing a comprehensive understanding of Bitcoin’s role in the future of finance and offering forward-looking insights into the evolving landscape of digital assets.

Mint and Trade Real-World Addresses Onchain with PropyKeys dApp, part of Propy ecosystem

January 3, 2024, 10 am EST, Miami, Florida – Today, PropyKeys, a new gamified application, part of Propy ecosystem, introduces a home addresses market onchain. It is a decentralized application (dApp) game, powered by the PRO token and launched on Base, a layer-2 network operating on top of Ethereum and part of the Coinbase ecosystem. Participants can mint their own or someone else’s home addresses onchain and stake or sell later. 

Real estate has long been restricted by barriers to entry such as exorbitant title fees and inefficiencies that blockchain can simplify. Propy and its ecosystem companies aim to make homeownership seizure-resistant, more affordable and user friendly. The $280 trillion market has remained entrenched in a “no trading zone,” but PropyKeys seeks to rewrite this narrative by being a fun entry point to the Propy ecosystem and title onchain. Now, anyone can start their onchain journey by minting home addresses via PropyKeys, and then verifying ownership via Propy, and even creating instant property sales or micro mortgages—all within the onchain Propy ecosystem.

“Imagine a world where every property’s rightful ownership is seamlessly encapsulated in an immutable onchain title”, said Andrew Zapo, lead contributor to PropyKeys. “Picture a future where individuals can effortlessly engage in peer-to-peer property transactions or leverage their property holdings for micro mortgages. This future, underpinned by blockchain’s trustless architecture, redefines property rights autonomy and, in turn, societal norms.”

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Unlocking Property Ownership


At its core, PropyKeys addresses critical pain points:


Democratized Minting and Trading

PropyKeys allows crypto natives to mint addresses, stake them, and seamlessly facilitate trades with property owners. Address NFTs could be minted for a PRO token fee. Home address holders and real owners of properties of the acquired addresses have the following advantages for the 3 tiers of NFTs. Inherent in the tokenomics strategy is the collection of $PRO as a fee for minting onchain addresses and property titles. This fee structure, while sustaining ecosystem development, simultaneously incentivizes community participation. 100% of the collected fees from addresses are redirected to incentivize and reward the network of address owners, ensuring active engagement and network growth. Additionally, mechanisms such as staking and governance participation offer avenues for token holders to contribute and influence the ecosystem while earning rewards in $PRO tokens.

Additionally, in the future, the community will be incentivized to provide loans for collateralized RWA NFTs via a secure protocol, developed by the Propy ecosystem of partners.


Onchain Titles & RWA NFTs

Property owners can elevate their addresses to onchain titles, enabling them to stake these titles or convert them into Real World Asset (RWA) NFTs. These NFTs facilitate easy sales or micro mortgages, opening new avenues for property transactions.

Trust & Security

Leveraging user trust, PropyKeys champions an onchain, open-source, and community-governed title registry. By replacing paper deeds with algorithm-based systems, the platform guarantees a trustworthy and secure environment for all users. 

Get your real-world address minted today

Visit PropyKeys.com today to mint your real-world address onchain. Join the movement empowering accessible property transactions and ownership like never before.

PropyKeys’s innovation embodies philosophical tenets—trust and transparency. The transition from conventional property registries to blockchain-based onchain titles instills trust in algorithms rather than centralized intermediaries. This philosophical shift reverberates beyond the real estate sphere, transcending into a broader societal paradigm that has started its rapid revolution with programmable decentralized money.

About Propy:

Propy is a pioneering platform leveraging blockchain technology to facilitate seamless transactions of real world assets (RWA), specifically focused on revolutionizing global real estate markets. As an industry leader, Propy specializes in providing secure and efficient solutions, ensuring an enhanced experience for buying and selling properties worldwide.

X (Twitter): https://twitter.com/PropyInc

Facebook: https://www.facebook.com/propyinc

Website: https://propy.com/

Media contact: [email protected]

Disclaimer: This press release contains forward-looking statements and should not be construed as investment advice. The actual results may differ materially from those projected in the forward-looking statements.

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