#230 - Louis Vuitton NFTs and SEC's Operation Chokepoint 😮

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Today,

1. The SEC strikes again 😮

2. Louis Vuitton NFTs 👜

3. AI art QR codes 🖼️

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

1. The SEC strikes again, suing Coinbase a day after filing against Binance

Before I could hit send on yesterday’s email, the SEC was back at it again with another beefy lawsuit – this time, against Coinbase.

The legal action follows a Well Notice (an official warning letter) issued to Coinbase by the SEC in March, for failing to register with the agency and therefore running an illegal exchange.

Coinbase has always maintained that they’re open to working with the SEC on ensuring its services comply with regulations.

But, they also say the SEC has deliberately obfuscated the process, making it technically impossible for Coinbase to operate in compliance.

So what’s inside this latest lawsuit?

The SEC alleges that Coinbase is an unregistered exchange, broker, and clearing agency – soliciting Americans to invest in various cryptocurrencies that the SEC considers illegal.

Once again, the SEC used the document to implicate several cryptocurrencies.

It called out SOL, ADA, MATIC – and even tokens belonging to gaming ecosystems like SAND and AXS.

Is this another example of Operation Chokepoint?

Operation Chokepoint is a supposed secret mission by US regulators, dating back to the Obama administration.

The operation’s goal is to shut down the current crypto industry, clearing a pathway for a government-controlled digital currency market.

Supporters of the theory include the ex-head of the OOC Brian Brooks and Congressmen Byron Donalds.

They claim that lawsuits like the SEC’s are part of a coordinated effort to make it impossible for crypto companies to interact with the US banking system.

If there are no simple ways to move from fiat to crypto, then it becomes too difficult for web3 companies to onboard users…

Tl; DR?

“You simply can’t ignore the rules because you don’t like them or because you’d prefer different ones.”

  - Gurbir Grewal, SEC Director of Enforcement.

“We asked the SEC for reasonable crypto rules for Americans. We got legal threats instead.”

  - Paul Grewal, Coinbase Chief Legal Officer.

…I assume they’re not related. Otherwise, it’s gonna be a real awkward 4th July family BBQ. 😂

Read more: Here’s the SEC's lawsuit against Coinbase

On the web3 wire

Google has a free generative AI online course 👩‍💻 
The 10-part course covers “the fundamentals of Large Language Models” and “how to create and deploy generative AI solutions.”

Will Apple Vision Pro cure VR motion sickness? 🤢
For many, a major roadblock to VR headset adoption is the prevalence of user motion sickness. Apple says they’ve designed a microchip that fixes nausea by processing data 8X faster than the blink of an eye.

JPMorgan works with 6 big Indian banks to test blockchain-based transactions 👀
The pilot scheme allows major banks to transfer funds between each other using the blockchain, meaning fewer transaction delays and no more customers left waiting on weekends and bank holidays.

2. Louis Vuitton’s pricey “Treasure Trunks”

Tomorrow, classy degens can register for the privilege of being selected to purchase one of several hundred digital “trunks” created by Louis Vuitton.

The price for a trunk? A chill 39,000 Euros – which is about $42K. 😳

I know suitcases are expensive, but how TF are these things worth 40K?

It looks like LV trunks are basically the world’s most expensive loot boxes.

Owning a trunk gets you access to digital collectibles, physical LV products, and invites to IRL experiences “at regular intervals” across the year.

Holders will also receive bespoke physical replicas of their Treasure Trunks.

(LV trunks are extremely expensive, which goes some way to explaining the price of the NFTs.)

Trunks are soulbound tokens, meaning holders won’t be able to sell them on once minted. But they should be able to sell other items they receive.

Why is Louis Vuitton launching such an expensive collection right now?

🤷‍♀️ …Your guess is as good as mine!

This is Louis Vuitton’s first real web3 effort, in contrast to other luxury brands like Gucci, Prada, and Tiffany’s, who are relative web3 veterans.

Vogue Magazine says that “Louis Vuitton will invite selected registrants to learn more about the [the NFT collection].”

So, it seems like they're going for an exclusive, invite-only thing for the rich and well-connected.

In other words, these are NFTs for ppl who don’t know it’s a bear market.

Watch more: Vogue covers the story

Notable Tweets

3. A cool ControlNet use case – artsy QR codes

One Redditor showed how it’s possible to use the AI image generator Stable Diffusion and the app ControlNet to turn boring QR codes into neat pieces of art.

– the cool part is that the barcodes remain functional!

Check out the original Reddit post for more examples.

It’s easy to imagine companies using this method to create QR codes that fit with their aesthetic.

It also unlocks the ability to give users a sense of where the QR code leads.

– Maybe it’s a bar that designs a QR code made of palm trees and surfboards for its summer cocktail menu.

Or a pfp project whose QR code matches the art style of its NFTs.

How does it work?

The OP didn’t share exactly how they created the QR codes. But they were made using ControlNet, the tool that plugs into Stable Diffusion and creates multiple variations of a reference image.

It looks like this Redditor trained a ControlNet model on QR codes, allowing the codes to retain their function while AI works its magic.

See more: Here’s the Reddit post

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Meme of the day

C u tmrw! 👋