The 0% Royalties Debate & The Rug Pull Round Up

ETH Goes Up, NFTs Go Down... Bad

Author

Exit Liquidity
August 16, 2022

Exit Liquidity Newsletter Header

Welcome to the Exit Liquidity newsletter, the place to stay up to date on the ridiculous things that happen in the Crypto, NFTs & Web3. If you are looking to join the community check out the AlphaMint Discord where all the degens gather to chat in the dojo.

If you went out and touched grass this past weekend you missed some great Crypto price action and NFT Twitter drama. Bitcoin (BTC) went above $25,000 for the first time since June and Ethereum (ETH) crossed over $2,000. Both prices are back down as of writing. There was a lot of talk over 0% artist/creator royalties, influencers being called out for their rug pulling and then it was nicely wrapped up with @cobie calling NFTs speculative alt coins at best. For some reason people were shook by this comparison **inset shocked pikachu face** and honestly, I don’t know why.

All in all, it was an eventful weekend on Twitter. We can directly blame ETH for pumping over $2,000 for the instant FUD and price drops throughout the NFT space. NFT Twitter has to fight about something though to continue engagement farming, however, a few good things did come out of all the squabbling.

First, the space discovered that artists and creators can get cut out of royalties. With Sudoswap introducing 0% royalty fees on their new marketplace, it showed everyone that royalties do not happen on a contract level and are not on-chain. Royalties currently happen on the platform level which does not guarantee payment or payout. Seems like royalties are still stuck in Web2 while we are all trying to build in Web3. It was universally agreed that artists and creators should be paid royalties and cutting them out would more than likely kill the NFT space. One of the bigger alternatives thrown around was to have projects take a predetermined amount of NFTs from mint as payment. This can only lead to one inevitable outcome, teams dump on their holders and communities to get paid. That would more than likely crush project momentum.

deeze-tweet-calling-out-NFT-influencers-scam-fraud-hack-shill-bag-holder-fud-rug-pull

Second, people are fed up with influencers constantly using their followings as exit liquidity (fun fact, this is where our name comes from, thanks @farokh!). They are also sick of influencers pretending they aren’t doing that and the half assed apologies when they get caught and called out. It’s easy to say that this kicked off with @farokh selling all his Cool Cats NFTs last week. Right or wrong on his part, this is where the influencer hate train first left the station and others were quickly called out. @Helloimmorgan has taken a lot of the heat and people kept tagging the thread that @zachxbt’s posted on her pretty long history of shitty moves. To cap it off, we even had a well known Crypto Influencer ruin his career and name in the space by stealing $350,000 from a project with the idea that he was going to “revenge trade” and make back his losses from the recent crash, but he did apologize so that’s nice.

Last but not least, @cobie started tweeting about NFTs and people got excited. However, it did not go the way NFT Twitter thought it would and pretty much went exactly how you would expect from a crypto maxi with this tweet summing it up. Cabie's take on NFTs isn't shocking at all, but for some it was and they got defensive. It’s pretty easy to accept that 99% of current NFT projects are not only going to fail, but also highly speculative tokens at best. NFTs are still early and still being developed into more (like above example of off-chain royalties). The one good thing that did come out of this is that @cobie is planning to organize an Up Only episode with @punk6529 and @krybharat which we are personally excited about. It should be a great episode.

cobie nft alt coins same tokens web3 crypto

The Tornado Cash saga continues and it only gets worse. Dutch police arrested what they say is the main developer that worked on Tornado Cash. This shows that the Tornado Cash is not a unique to United States sanction. Not only are more “decentralized” platforms banning Tornado Cash addresses, but now they are banning people who have interacted with those addresses and those who got dusted from using certain DApps. They are trying to get rid of Tornado Cash and it’s scarier that companies and projects are lining up to show how compliant they are. We can assume it’s out of fear, but remember they care about their bottom line first – not you.

One more fun thing. Someone put out a fake Anonymous video saying that they were coming after Bored Ape Yacht Club and Yuga Labs. A widely accepted official Anonymous twitter account tweeted out that it's fake and they don't care about BAYC or anything @ryder_ripps is trying to do to bring down the brand and project. I think we can all chalk this one up to another crap attempt from Ryder to stay relevant and to get attention. It was a creative idea though that had Twitter chirping.

Crypto

NFTs

Web3

Disclaimer: The Exit Liquidity Newsletter is meant to be an informational and entertaining way to share interesting things found in and around the Crypto, NFT and Web3 space. Nothing in this newsletter should be taken as the contributor's, Exit Liquidity's or AlphaMint's personal opinion or views. Nothing in this newsletter constitutes as professional and/or financial advice. Cryptocurrencies and crypto-related assets can be extremely risky investments, invest at your own risk.

Forever hodling your favorite influencer’s bag: @R2Degen @DRTYMLK @dripcult

If you are interested in featuring your project or company or advertising with Exit Liquidity, let us know here.

Exit Liquidity is an AlphaMint project.