Hold on for dear life, reader - there’s a lot of cryptocurrency news in this issue!

Cryptocurrency is wrapping its tokenized tentacles around a lot of different industries and communities - and as of today, entire nations! From new NFT-loving game studios stuffed with cash and top industry talent, to the awkward new power dynamics between corporations, small investors, and internet celebrities, here's a snapshot of the finance world in a truly historic moment of flux.

El Salvador becomes first nation to adopt bitcoin as legal tender

Headlines are a dime a dozen when it comes to cryptocurrency, a financial sector often driven by viral marketing and cults of personality. But the nation of El Salvador gave us one for the history books today, as its congress officially adopted bitcoin as a recognized legal currency. The Ley Bitcoin (Bitcoin Law) was championed by President Nayib Bukele and was affirmed by the Salvadoran Congress in a 62-22 supermajority vote.

El Salvador may not be an international financial heavyweight, but that will not dampen the enthusiasm of bitcoin supporters who see this as the first domino to fall on the way to widespread legitimacy. As with all alternative currencies, the larger the sphere of commerce where bitcoin is accepted and used, the greater its real value, and the more stable its future becomes.

While crypto investors will care more about the optics of the Ley Bitcoin, President Bukele is presenting it as a legitimate advance for El Salvador’s economy and people. There is almost certain to be an influx of foreign investment from bitcoin holders looking to cash in on their digital wealth, and subsequent growth of the local financial sector.

The President paints this as a solution for 70% of Salvadorans who he claims lack access to basic banking and financial infrastructure. A digital currency makes it drastically easier to achieve widespread economic participation.

Of course, no nation would pass a law like the Ley Bitcoin without some cryptocurrency stockpile of its own. President Bukele was swift to announce a government crypto-mining operation to be conducted by El Salvador’s nationalized geothermal energy company. Whether or not volcano power can offset environmental concerns surrounding mining, El Salvador and its highly-online millennial president are clearly committed to a new role as a hub of digital commerce.

Logan Paul reignites Charizard speculation with big-fight theatrics

Tiresome as it might be to constantly be reminded of Logan Paul or his brother Jake, those of us following the collectibles industry will not escape him anytime soon. The YouTuber-cum-boxer used his farcical exhibition match against Floyd Mayweather to escalate his symbiotic relationship with the current Pokemon boom, walking to the ring with a BGS 10 original foil Charizard on a lanyard.

The elder Paul brother perfectly represents the current trend of prominent celebrities driving the hype train for alternative investment markets. We recently reported his role in the official anniversary year celebrations for Pokemon, which came in the form of a massively-publicized 1st Edition box break and auction stream back in February.

Paul trumpeted that the booster boxes for that stream alone cost him $2 million USD to acquire from various sources. In turn, hopeful collectors bid a minimum of $10,000 to pre-purchase the rights to each of the random cards he would open.

Paul’s profile in the collecting community is so titanic that grading service PSA added a special label to cards from his box breaks, confirming that his touch alone is contributing to their valuation. Oh, and investors who purchased a card slot received a customized Logan Paul Pokemon card as a limited edition NFT. Because of course.

Fellow YouTubers, collectors and “wealth gurus” found it hard to agree on the dollar value of Paul’s fight jewelry, variously quoting the Charizard at $150,000, $200,000, even $500,000. There was debate over the official grading - BGS Gem-Mint 10.0 - and the card’s status as one-of-a-kind at that grade. Even the exact price Logan Paul paid for the Charizard was reported differently by news outlets; some said $190K instead of the common line of $150K.

But this confusion can only be expected when the “market price” depends on so few actual sales, many of which are directly influenced by Paul, and the apparent growth is so explosive. As with the mindblowing $4.6 million sale of a Luka Doncic NBA rookie card we reported back in March, these absurd deals blur the line between PR stunt and investment decision, and one wonders whether their real value to the buyers lies in the collectible itself, or the market frenzy it inspires.

But wait... there's more

Team SoloMid mints record sponsorship deal with coin exchange FTX

One of the most beloved esports teams in North America has signed a record sponsorship deal with cryptocurrency exchange FTX. Team SoloMid, known worldwide for their storied League of Legends franchise but also prominent in Fortnite, Smash Bros. and Rainbow 6 Siege, will receive $210 million to tag up as “TSM FTX”, but there’s a lot more going on in this contract. Supposedly the deal includes TSM purchasing $1 million of FTX’s proprietary FTT token, distributing cryptocurrency to their players and employees, and most likely selling NFTs and other digital collectibles connected to their in-game exploits.

FTX has been on a big promotional push, buying naming rights to the Miami Heat’s home stadium for $135 million in March. While their young CEO Sam Bankman-Fried characterized that deal as “partly philanthropic”, the recent association between sports and crypto through ventures like NBA Top Shot has no doubt influenced this direction.

AMC reimagines their "meme stock" investor base as VIP customers

Crushed by the pandemic shutdown of cinemas last year and on the verge of bankruptcy, AMC Entertainment and its CEO Adam Aron were unexpectedly rescued by a horde of small-time retail investors, directed by the hive mind of Reddit’s r/WallStreetBets community. Now, 5 months and 1400% growth later, AMC is making loud moves to try and lock in the allegiance of its 3 million+ individual shareholders. Aron announced a series of new perks for investors who visit AMC’s cinemas, offering free popcorn and ticketing offers alongside stock updates.

Transforming stock ownership into a loyalty program could be a relevant precedent for other companies adjusting to the rising influence of retail investors. But few will go as far as Aron in pandering to the internet culture which rallied around his company. In honor of their ironic self-branding as “apes”, the CEO promised AMC would make a $50,000 corporate donation to the Dian Fossey Gorilla Fund.

Games heavyweights commit $120 million to explore blockchain gaming

“Next generation gaming technology gaming studio” Mythical Games has brought in $75 million of Series B financing this week, bringing its total raise to $120 million. Mythical’s mission statement is etched in huge bold letters on their website, as seen above. While that lofty message seems to tap into positive prophecies about the potential of blockchain technology to improve the power or financial position of gamers, the list of games executives and developers investing in Mythical hints at who may stand to profit the most from any eventual shift in the dominant business model.

Veterans of Activision, Oculus, EA and Zynga - all firms with a checkered history when it comes to mercantile extraction of profit from video games - were involved on each side of this fundraising, along with StubHub alumni, Charles Schwab and Gary Vaynerchuck’s Vaynerfund. Mythical is yet to give any hint as to what technologies or projects they plan to build their new studio around.