Pudgy Penguins bounces past bear market territory

In Token Issue this week, we look at Pudgy Penguins, an NFT project that took a dive earlier this year but is now flying to the moon. [Read from your browser]( Token Issue Welcome to Token Issue! Delivered every Friday, this free newsletter breaks down the biggest stories in Asia’s crypto scene and beyond. View past issues [here]( or [sign up here]( to receive future newsletters. Written by Shihan Fang Crypto journalist Hi {NAME} Penguins can’t fly. But Pudgy Penguins is defying all odds and is well on its way to the moon after a tough start to the year. The NFT project launched in June 2021, selling out the first batch of fluffy bird NFTs in 20 minutes and peaking at roughly US$3,500. But the price then crashed to about US$650 in January this year after the project ousted its controversial founder, Cole Villemain (aka ColeThereum). Pudgy Penguins was later bought for US$2.5 million by 24-year-old angel investor Luca Schnetzler, who eventually turned the project around. At the time of writing, the NFTs are trading at an average of US$4,500. If you look at the [charts]( the project has been on a steady ascent since the start of the crypto winter in May. And now with sound business fundamentals and a steady captain at the helm, the trend may just continue. Paraphrasing the words of a certain Disney princess, perhaps the cold never bothered them anyway. – Shihan  ---------------------------------------------------------------  THE BIG STORY [Pudgy Penguins breezes through the crypto winter]( The story of Pudgy Penguins is a timely reminder of why [PFP projects]( - cute as they may be - should be built upon sound business fundamentals. It seems Pudgy Penguin NFTs aren’t bothered by the crypto freeze at all - read on to find out why.  --------------------------------------------------------------- ⭐ TO THE STARS A look at what’s pushing Web3 forward 1️⃣ [NFTs are now considered property in Singapore]( The Singapore High Court has ruled that NFTs can be classified as property. The breakthrough ruling is the first of its kind in Asia, paving the way for the legal acknowledgment and protection of digital assets. The court decision was made in a case involving Singapore citizen Janesh Rajkumar, who owns a Bored Ape Yacht Club (BAYC) NFT, and a crypto lender named “chefpierre.” Rajkumar had used his BAYC NFT as collateral on the NFTfi platform to borrow cryptocurrency from chefpierre. On one occasion, Rajkumar didn't repay his loan on the agreed date and made an extension agreement with chefpierre. But even after agreeing, the lender foreclosed anyway, releasing the NFT into his cryptocurrency wallet. Rajkumar then obtained permission from the Singapore High Court to serve papers to chefpierre to repossess his NFT. The link to the court document is [here]( - the description of a BAYC NFT alone is worth the read. 2️⃣ [New UK prime minister is crypto-friendly]( New British prime minister Rishi Sunak’s plans for the crypto industry remain under wraps. But his track record shows that he is likely to position the UK as an international hub for cryptocurrencies. During his time as finance minister (or the “Chancellor of the Exchequer” to be exact) between 2020 and 2022, Sunak helped usher in the Financial Services and Markets Bill, which aims to bring crypto assets and stablecoins under the government’s regulatory framework for payments. The [bill was passed]( by the lower house of the Parliament this week and will be codified into law if it is later approved by the upper house of the Parliament, and finally, King Charles III. Sunak is no stranger to fintech, having began his career as an analyst at Goldman Sachs before becoming a politician in 2015. He is also the son-in-law of [NR Narayana Murthy]( the founder of Indian tech giant Infosys. Sunak, together with his wife, Akshata Murty, reportedly have a [combined net worth of US$800 million]( and are making headlines for being wealthier than King Charles himself.  --------------------------------------------------------------- 🌙 TO THE MOON Tokens, NFTs, and yield generators we’re noticing 1️⃣ [Oasys launches mainnet, public token listing to follow]( Japanese gaming blockchain company Oasys is set to launch its mainnet in three phases, starting this week until November 22. The company was founded by senior executives from several Japanese gaming giants and has enlisted a slew of game industry firms as its initial node validators. These include Square Enix, Ubisoft, Sega, Bandai Namco, WeMade, Neowiz, Netmarble, and Com2Us. Play-to-earn gaming guild, Yield Guild Games, is also a validator. Oasys raised US$20 million in July via a private token sale. It says that the public listing of its token, OAS, will follow after the mainnet launch. 2️⃣ [Reddit PFP NFTs surge on OpenSea]( Reddit users have been driving up the platform’s Polygon-based NFT collections this week, with cumulative sales volumes hitting US$6.5 million on Tuesday. The three Reddit NFT collections topping the charts on OpenSea are [Spooky Season]( [The Senses x Reddit]( and [Foustlings x Reddit](. This wouldn’t be the first time Reddit was involved in a pump. Last year in January, one subreddit group published several posts to prompt the wider Reddit community to purchase shares of GameStop, which was then a little-known video game retailer. The move pushed GameStop share prices up 600% in four days, forcing short sellers on Wall Street to lose billions in their portfolio. There’s even [a movie on Netflix]( about it now. --------------------------------------------------------------- 🌏 BACK TO EARTH The week’s biggest roadblocks [Monetary Authority of Singapore tests industry appetite for tighter consumer regulations]( The Monetary Authority of Singapore (MAS) is seeking industry feedback about the next set of rules governing cryptocurrencies. The regulator released a consultation paper on Wednesday, which highlights a series of proposed regulatory measures that it is tabling for discussion with crypto companies. Those that wish to provide feedback should do so by December 21, 2022 via [this link](. The proposed measures have raised eyebrows for being heavy-handed. (Thank you 3AC, Hodlnaut, and gang). Here are some of the notable measures: - An additional know-your-customer process to test retail customers’ knowledge of cryptocurrency risks before providing any services. - Prohibiting the use of credit cards to purchase crypto. - Banning airdrops as a customer acquisition tactic. - Banning yield farming or staking. - Requiring cryptocurrency trading platforms to publish their policies and procedures for selecting, listing, and reviewing cryptocurrencies. - Requiring cryptocurrency platforms to appoint an independent custodian to hold retail customers’ assets and minimize the risk of loss or misuse of customer funds. Related to the above is another [MAS paper on stablecoins](. The regulator’s position on that front appears to be far less controversial. Like the previous paper, the deadline for feedback is on December 21, 2022. The link to the form can be found [here](.  --------------------------------------------------------------- STILL A PONZI SCHEME The dark underbelly of Web3 and crypto today “Freeway managed to amass $150m+ in user deposits by providing an air of TradFiesque legitimacy. Their "Chief Investment Officer," Joel Krueger, used to manage multibillion-dollar funds for Prudential. I'm honestly shocked that he's legally able to shill Ponzis like this.” — @FatManTerra FatManTerra does it again. The prolific tweeter, famed for exposing Do Kwon before the Terrapocalypse, called out crypto staking platform Freeway last weekend for allegedly being a Ponzi scheme. He said that it was likely that Freeway would collapse within the next few months and that all depositors would lose everything. At that time, Freeway was offering users up to 43% in annual rewards. True enough, Freeway stopped platform withdrawals the very next day and wiped the names of all team members from their website. The platform said that it suspended withdrawals to diversify its assets and ensure the long-term sustainability and profitability of the company. No date was given for the end of the suspension. --------------------------------------------------------------- MORE TO CHEW ON 1️⃣ [Apple stays firm on 30% fee for in-app purchases of NFTs]( Apple has published an update to its App Store terms and conditions with more clarity about NFTs. Under the [new guidelines]( apps can use the in-app purchase feature to sell, mint, list, and transfer NFTs, as long as they pay the 30% fee for all in-app purchases. This, accompanied by Apple’s long-standing policy prohibiting apps from directing customers to outside purchasing mechanisms, makes clear that the company is not budging on its unpopular “Apple Tax.” The new rules also state that apps should also restrict the usage of NFTs such that users can only view but not use the NFTs to unlock features or functionalities within the app. 2️⃣ [East Ventures leads $1.7m funding for SG NFT startup]( Singapore-based blockchain firm AWST has raised US$1.7 million in a funding round led by East Ventures, with participation from 500 Global and Antler. AWST helps companies and brands launch NFT collections across different blockchain protocols and is the first Web3 firm in Asia to work closely with payment giant Stripe for processing NFT transactions. 3️⃣ [Key witness for Terra parliamentary inquiry is a no-show, cites “extreme mental stress”]( Kim Seo-joon, CEO of venture capital firm Hashed and an early Terra investor, was one of the six people selected to testify in South Korean parliament in a government inquiry into the infamous Terra crash. Kim had lost US$3.6 billion since April and had been hospitalized since July for anxiety and panic due to extreme mental stress. Kim stated that he was unable to attend the parliamentary meeting as his condition had worsened.  --------------------------------------------------------------- That’s all for this issue - we hope you liked it. WAGMI! P.S. Don't miss out on the biggest tech news and analysis. Add newsletter@techinasia.com to your address book, contacts, or safe sender list. 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