#199 - PFP projects need an exit strategy 💨

GM and welcome to Decentra Daily.

We're the web3 newsletter that's stoked to see you back for another week in the metaverse.

Today,

1. PFP exit strategies: how to evolve your project

2. Coinbase takes legal action against the SEC

3. BAYC's 2nd birthday & RTFKT Air Force 1s

Plus, all the web3 headlines, memes, and Tweets of the day.

D-Daily takeaway 🥡Despite today's dip, we saw some decent gains over the weekend!

What's this? 🤔Our floor price index tracks the biggest, most influential pfp projects, art collections, and gaming assets.

PFP projects need an exit strategy - which option should they choose?

Things have been tough in the world of pfps.

For most older blue-chip collections, floors and unique holders are down – some more than 20% over the past 30 days.

Which could be nothing more than a prolonged dip (we've seen plenty before).

The market volatility caused by Blur airdrop farming could also resolve itself over time, returning things to prior market conditions.

But, recent down trends could also be a signal – that it's time for traditional pfp collections to evolve or die.

After all, nothing stays static in web3. A lot of s*** has gone down since the BAYC mint 2 years ago.

The AI revolution, bear market liquidity crunch, 3AC and FTX collapses, global recession, BLUR disruption – to name just a few space-changing events.

So, if you're a pfp founder who wants to reignite your community and project, what do you do?

We've counted 4 popular strategies for projects pivoting away from pfps towards other NFT use cases.

Pro tip: pick multiple options to truly activate Twitter hype.

Option #1 - Become art 🖼️

CryptoPunks isn't an experiment in blockchain JPGs anymore.

Now, it's a piece of art history, immortalized at the Centre Pompidou and other top-tier art galleries.

Option #2 - Become mainstream IP 📺

Pudgy Penguins in Walmart, you say?

Not to mention how Pudgies are all over your phone's GIF library.

Through their DAO, Nouns has turned their iconic glasses (noggles) into an IRL meme, seen everywhere from outdoor sculptures to boats in NY harbor.

Azuki is partnering with Chinese social media apps and IP studio Line Friends to turn their Beanz sidekicks into recognizable mascots.

Meanwhile, CloneX and Nike are hoping that their digital wearables will make them big names in the metaverse, attracting people to their collections.

Option #3 - Become a game 🎮

The Otherside is undoubtedly Yuga's long-term value proposition. And by connecting their ecosystem through $APE, they're already distributing that value to pfp holders.

Inhabitants' upcoming 2D fighter game has become that project's focus, alongside its parent company's blockchain gaming protocol, Reboot.

Option #4 - Do "nothing" 👌

Doing nothing has its benefits too.

After all, the market could rebound and most NFT holders have short memories.

Why not just continue with the ol' roadmap? I hear it's a pretty good time to launch a token...

Maybe a more optimistic way for projects to "do nothing" is to double down on community power – hand over the creative reigns to the community, and see where they take things.

In other words, take a page from the Jack Butcher/Opepen playbook.

What's the strongest option for the projects you hold? 🤔 Would love to discuss on Twitter where pfps go from here...

Notable Tweets ✅

On the web3 wire

Adidas ALTS merch collab 🧢 As part of their ALTS project, Adidas designers have collaborated with Pixel Vault's PUNKs to produce NFT-gated sneakers and hoodies.

Yuga delays HVY-MTL Evo 1 reveal 🤘The studio says they need more time to work on their "monster of a collection," without giving a specific reason for the delay.

Ledger's Apecoin community quest 📖Keep Security Boring is a 10-min token gated lesson on good wallet practices from Ledger. $Ape holders can complete the quest for a chance to win a custom Ledger Nano.

Coinbase sues the SEC for clear answers

Coinbase CEO Brian Armstrong is the patient substitute teacher trying desperately to keep his cool while the class clown attempts to break him.

The clown = this guy ⬇️ 🤡🤡🤡

So what's the next chapter in the Coinbase vs SEC saga?

Last night, Coinbase filed a narrow-action lawsuit against the SEC.

This would force the agency to respond to a rulemaking petition Coinbase sent the SEC last year.

That rulemaking petition asked the SEC to clarify its notoriously ambiguous guidance on crypto regulations – directions on how exchanges like Coinbase can register and comply with the agency.

By law, the SEC is supposed to respond to clarification requests in good faith.

...supposed to.

This latest legal action is part of a now-years long dispute between Brian Armstrong's Coinbase and Gary Gensler's SEC.

Earlier this year, the SEC sent Coinbase a Wells Notice – a semi-formal indication that the agency is planning to charge a company with non-compliance.

TL;DR

• SEC: "Coinbase needs to follow our very clear crypto rules."

• Coinbase: "OK. What are the rules?"

• SEC: "Our rules are very clear. Follow them or else."

• Coinbase: "Sure, but what are the rules?"

• SEC: "They are in fact very excellent and clear rules."

• Coinbase: "...K. Think we're gonna move to Bermuda."

Decentra Daily is brought to you by Ledger

Is it really fine though? Storing cryptocurrency on an exchange can be a risky business.

Don't play with fire - choose a hardware wallet from Ledger to keep your coins and NFTs where you can see them.

That's the whole point of the blockchain, right?

Ledger offers:

• 3 different wallets & price points to match your needs (inc. the new Stax)

• Support for NFTs + tmons of cryptocurrencies

• A team of security experts working around the 🕰

Things are fine until they're not. Pick up a wallet from Ledger and thank us later.

Meme of the day

C U Tmrw! 👋

What we're reading this week