The IRS squints at NFTs, Sony files a Web3 gaming patent, and Magic Eden launches a Bitcoin NFT marketplace
Welcome to this week’s Metaverse, where Fortune gathers the most interesting news related to NFTs, culture and virtual worlds. Email [email protected] with tips.
As Coinbase battles Gary Gensler and the Securities and Exchange Commission, the IRS takes on NFTs.
In a statement released Tuesday, the Internal Revenue Service said it is considering whether to tax NFTs like other collectibles, including gems or artwork. This is the first attempt the agency has made to try to define how NFTs should be taxed – collectibles are taxed at a higher rate than other assets when sold after a year – and the ramifications could ripple across the industry.
The agency is asking for comments from the public until June 19.
Elsewhere, companies are still laying the foundations for adopting NFT technology. PlayStation maker Sony recently filed a patent that would protect its rights to create NFTs that can be transferred between games and consoles, an important interoperability mechanism that could promote adoption of the technology in the gaming industry.
The patent also allowed for NFTs to be transferred from one generation of console to another, such as from PS4 to PS5, or between Sony’s and a competitor’s devices. It also noted the potential use of NFTs in e-sports, adding, according to CoinDesk: “In some example embodiments, the task may include a win in an e-sports tournament, and the digital asset may be usable via NFT by the first end-user device across several different computer simulations.”
Finally, as rumors circulate that former President and current candidate Donald Trump will soon be indicted, the floor price of the NFT collection he supported has skyrocketed.
The collection, which was derided for its raw art, has jumped double digits on NFT marketplace OpenSea to a price floor of 0.5 Ether, or about $883, from 0.3 Eth, or about $530, last week.
The company’s spotlight
One of the main problems with mass adoption of Web3 technology has traditionally been introduction, but a new startup, Redeem, is trying to change that by taking advantage of something we use every day: our phone numbers.
Instead of going through a complicated process to set up a crypto wallet, Redeem creates it for users automatically. Imagine a festival where the organizers give away a free NFT. Even if participants have no Web3 experience, all they have to do is scan a QR code, send a text to verify their phone number, and Redeem automatically creates a Polygon wallet linked to the phone number and deposits NFT. The company also allows users to connect other types of existing wallets.
Founder and CEO Toby Rush said this technology could be transformative for companies looking to give away digital collectibles or incorporate NFT token porting into events.
“There’s no app to download. There’s no form to fill out. So, literally, if you can click a link and hit submit, that’s it,” Rush told Fortune.
When I tried Redeem’s technology for myself, it took less than a minute to go from scanning a QR code to getting a sample NFT in a new wallet featured on the NFT marketplace Rarible. When I went to add a second NFT through the demo on Redeem’s website, I repeated the process of scanning a QR code, but this time for a trial token gated ticket. Redeem immediately recognized that I already had an account linked to my phone number and deposited the new NFT into the same crypto wallet.
In other news
Pace Verso, the Web3 hub of New York City-based Pace Gallery and generative AI platform Art Blocks, announced three new NFT projects by artists Trevor Paglen, Maya Lin and John Gerrard. The projects will be available for purchase on artblocks.io and sold via Dutch auctions. One of the pieces, by Paglen, is an interactive and experiential NFT series where Paglen has hidden Easter eggs that collectors can uncover, decipher and use in other parts of their project. Collectors who find them will receive a free limited edition vinyl LP of Paglen’s related “speculative reality work” titled CYCLOPS, and a gelatin silver print of the artist.
Supermodel and entrepreneur Karlie Kloss partnered with Roblox to launch a new experience in the digital world called FASHION KLOSETTE. In the game, users can work their way up in the fashion industry from intern to editor-in-chief by designing looks that are shown on a virtual runway and in galleries. Kloss created the items with a team of talented Roblox designers that included 17-year-old developer Rush Bogin, who has consulted with Kloss on her metaverse ventures, and Jenni Svoboda, who designed the model’s Carolina Herrera Spring/Summer digital floral dress. 2023 runway.
Magic Eden launched a marketplace for the ever-growing Bitcoin NFT market this week. Based on its current support for Solana, Ethereum and Polygon NFTs, Magic Eden’s new store will help leverage the 400,000 inscriptions, or minted Bitcoin NFTs, that exist to date. Initially, the marketplace will include 13 collections, including Taproot Wizards, Inscribed Pepes, and Bitcoin Bandits.
This story was originally featured on Fortune.com
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