Initia's Rise, NFTs on Skin, and Binance's Strategic Moves | Crypto Weekly Brew #011

This week’s crypto weekly brew delves into Binance Labs' investment into Initia, the future of NFTs may be in tattoos and more.

Initia Emerges As A Fresh Contender In The Layer One Arena

Source: Initia Emerges from Stealth Mode with Pre-Seed Funding from Binance Labs

Initia, a layer one project has recently come out from hiding with backing from Binance Labs. As established cryptocurrencies become more expensive layer one solutions offer efficiency that attracts traders and hype and potentially paves the way, for market dominance. Layer one projects face challenges with securities regulations and a tendency to prioritize hype, over actual development. Layer one teams may choose to postpone implementing features to maintain speculation placing price above genuine progress.

All these promises of improved costs and efficiencies are all well and good and we have heard it before. Every year we see a usual pattern emerge with different layer solutions flourishing, but we should be questioning whether we have learned from previous mistakes, particularly around exaggerated promises and the impact bad actors can have on the crypto space. From a short-term trading perspective, these types of news can be advantageous, and they bring a promise of market hype and FOMO, especially during the current crypto bear market cycle.

Tattoos as NFTs

Source: New tattoo machine can ink your arm with an NFT, allowing artists to collect royalties

In 2021, NFTs made a splash in both culture and the crypto world. However, they also faced criticism and skepticism leading to questions, about their future. Recently, the introduction of machines that create NFTs on people's arms is making headlines. This creative approach allows artists to earn royalties through NFTs which is a use case that not many would have thought when NFTs were first introduced.

Binances Deployment of the Recovery Fund

Source: Why Binance’s $1 Billion Recovery Fund Is Now Worth Just $32 Million

When examining Binances Crypto Recovery Fund or known as Industry Recovery Initiative (IRI), it has become clear that careful and strategic deployment is crucial given the changing crypto market conditions. With that in mind and based on the analysis of public wallets, only $32m has been deployed. It does raise further questions as to Binance’s intent and whether it was just a show to garner positive news sentiment when it launched the IRI fund late 2022.

As the world of cryptocurrency continues to progress, it becomes essential to strike a balance between hype and genuine development in the industry. Whether navigating through the crypto environment through the hype of Layer One projects or anticipating the resurgence of NFTs with a use case of them being tattoos; we need to learn from previous market cycles and not just jump into the next hype cycle with rose-tinted glasses.

Thank you for reading and hope you have a good rest of the day!

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