1% TDS, NFTs taking a backseat & more!

GM folks! ✨

Welcome to This Week in Web3's 18th Issue. We're your pals, keeping you up to speed with Web3 updates that matter! Let's see what we have on the pages today:

• The 1% TDS

• Is the NFT Hype dead and gone?

• Wealth & Work in Web3

• Crypto Weekly & Reads of the week

Estimated reading time: 3:20 minutes

anybody knows how to turn off the degen mode? 👽

This Week In Crypto

Despite Backlash The Crypto Tax is Here

The moment we’ve been dreading finally arrived — the 1% TDS provision. Here’s the recap:

• What is TDS? Tax deducted at source is a liability imposed on the exchanges that deposit taxes on behalf of sellers on their platform.

• What is the provision? A whopping 1% tax will be levied anytime an Indian buys/sells crypto for transactions of >₹10,000.

• What does it mean? The buyer of a Virtual Digital Asset (VDA) is required to deduct 1% of the amount paid to the seller (an Indian resident) as TDS. The tax must be deducted at the time of credit of the amount or at the time of payment to the resident individual, whichever is earlier.

• What else? Another provision applies a 30% capital gains tax on all transactions from April 1.

• But… why? In Finance Minister Nirmala Sitharaman's words, "the government is taxing crypto because people are profiting from it," and the goal is to "check the source and trail".

The tax has become effective Friday, July 1. What now? 🤷‍♀️

• This provision will act as an experiment for over coming months for the Indian government.

• The impact of the tax will be seen and analyzed over time as this global investment community is facing a slowdown.

The biggest CEOs in Indian crypto are against the TDS, claiming it’ll do more harm than good, and 1% TDS is too high an amount for “trailing”. 1% TDS coupled with 30% tax is a lose-lose situation and will work to discourage investors in the already cold economy.

Reply to this newsletter and share your thoughts; let’s discuss. 👨🏻‍💻

Ethereum NFT Trading Volume Drops 70% in June

Don’t panic YET. ✋ Decrypt reports that the pace of NFT sales has remained steady despite a decline in the value of the assets.

According to Nansen and CryptoSlam Data:

• The total volume of Ethereum NFT trades declined by 55% in the past month—1.3 million ETH to just 584,000 ETH.

• This is roughly a 70% decrease from $2.6 billion to about $672 million.

• 71% decrease in the average sale price for an Ethereum NFT, down from $2,463 in May to just $703.

ETH average prices have remained stagnant among the top five ranked NFT collections on OpenSea.

• Bored Ape Yacht Club prices hovering around 100 ETH.

• CryptoPunks saw buy-in floor prices increase 48%, considering Christie's head of digital sales becoming their new brand lead.

Although the number of active traders for Ethereum NFTs has only declined slightly, a 16% decrease from about 422,000 to 354,000 still represents a significant market.

This month, the number of collections that have seen more than a thousand sales is down 30%, from 109 to 76. This means creators still see sales in collections with the highest market caps. The sun has not yet set on NFTs and NFT artists. 🔆

While the overall volume might be down and the bear market is still ongoing, NFT traders are still bullish. The NFT Community is not losing hope anytime soon; we’re also still onboard! ⚓️

More web3 crunch you should bite into 👇

• Binance has partnered with soccer legend Cristiano Ronaldo to launch exclusive NFT collections. siuuuu! ⚽️

• Coinbase announced an easy and secure way for eligible customers to earn staking rewards on Solana. 🪙

• Axie Infinity's Ronin Bridge went live three months after the $600 Million USD hack. 👾

• Polygon's eDAO launched"Unlabel", the first decentralized label for artists. 💟

• Anonymous, a hacking group, posted a YouTube video pledging to bring Do Kwon “to justice as soon as possible.” 🥷🏻

Wealth for Web3

• Fitmint, an Indian move-to-earn app with in-built NFT gaming and Social-fi elements, raised a seed funding of $ 1.6M led by General Catalyst and with participation from iSeed and Kearny Jackson, among others.

• Entrepreneur First (EF), a scaleup investor in early-stage founder talent, raised a $158M Series C funding round from a group of veteran tech founders, including Patrick, John Collison, and Reid Hoffman.

• Zigazoo, a kid-safe social network that recently launched a non-fungible token (NFT) collection, has raised $17 million in a Series A funding round led by Liberty City Ventures.

Work in Web3

• Be a Marketing Manager or Content Champion at DAO LENS. ✍️

• Pillow is looking for a Copy Writer, Product Designer and more! 🪶

• Become Coinbase’s full-time Frontend Engineer and work remotely. 🛠

Crypto Weekly

What if you're a curious cat, who wants to know more about Web3 events? We have good news! Introducing Crypto Weekly by The Product House, a new series to discuss and break down big events in the Web3 space. 

Tune in on Discord today at 6 PM to be a part of the discussions.

Interesting Reads

That’s a wrap for This Week in Web3, see you next week!🚀

Check out The Product house to start your Web3 journey with live learning masterclasses & workshops by seasoned web3 builders! 💻

And if you’re an early-stage Web3 builder going from 0 to 1, holler at our creative-capital studio Spacekayak and let’s great something extraordinary, through design!

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