Do You Believe in (Bitcoin) Magic?

NFTs continued to grow beyond their humble Ethereum roots this week, with Magic Eden becoming the first major NFT marketplace to offer Bitcoin-based collectibles on its platform.

Web3 gaming was also in the spotlight, as Sony filed a patent that could make NFTs transferable between different games and consoles. Meanwhile, blockchains Immutable and Polygon announced a major partnership aimed at making it easier for developers and game studios to jump into Web3.

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Magic Eden’s Ordinals expansion: Magic Eden has launched its own Bitcoin-based exchange for Ordinals NFTs, expanding its roster of supported blockchains and bridging the gap between Bitcoin maximalists and NFT enthusiasts. The move crowns Magic Eden as the first major NFT marketplace to offer Bitcoin-based collectibles as the battle for market dominance rages on.

Sony’s interoperable NFTs: Sony has filed a patent that would make NFTs transferable between games and even non-PlayStation consoles like Xbox. The patent would allow players to use NFTs across virtual reality (VR) headsets, tablets, computers and smartphones.

Powerful partnership: Two of the top players in the Web3 gaming ecosystem, Polygon and Immutable, have formed a strategic alliance to develop blockchain games and take them mainstream. As part of the partnership, Immutable will power its platform using Polygon’s zero-knowledge technology to make onboarding Web3 talent easier and more secure.

Opepen Edition

Who: Created by artist Jack Butcher

What: Jack Butcher has somehow managed to one-up his wildly successful Checks VV project with his new Opepen Edition, a dynamic NFT collection that combines the concept of an open edition NFT sale with the internet’s resurgence of the Pepe meme. The collection of 15,894 NFTs was offered as a free mint in January and is hovering at a floor price of around 0.3 ETH (about $540) on OpenSea at the time of writing.

How: While the collection started out with a Mondrian-esque image of the Pepe meme, Butcher has been continuously changing the collection’s metadata, allowing the image to shapeshift over time. There are also rumors that the collection might serve as a gateway toward a larger future profile picture (PFP) project, broadening the reach of Butcher’s coveted artwork.

The Quantum question: A lawsuit disputing the ownership of what is believed to be the first generative art NFT titled “Quantum” by Kevin McCoy was dismissed by a federal judge in New York, who said that Free Holdings did “nothing more than an attempt to exploit open questions of ownership in the still-developing NFT field to lay claim to the profits of a legitimate artist.”

IRS guidance on NFTs: The Internal Revenue Service (IRS) announced that NFTs can be treated as collectibles for tax purposes until final rules are agreed upon.

Is wash trading ruining NFT trading?: A recent Twitter thread by kouk.eth, a member of the Ledger team, discusses how the wash trading of NFTs is obscuring trade volume data and sabotaging the NFT market as a whole.

What Are Dynamic NFTs? Understanding the Evolving NFT

Most NFTs are static, meaning that once a token is minted to a blockchain, the data associated with that token cannot be changed. For example, if you mint a rare, one-of-a-kind artwork as an NFT, that digital image and the data associated with it will remain the same, no matter how much time passes or how many times it changes hands.

On the other hand, a dynamic NFT is a type of NFT that changes based on external conditions, such as events or achievements in a game.

Learn more about so-called “living NFTs”