After much deliberation and careful thought Neptune Mutual decided to close the cover marketplaces.
After much deliberation and careful thought Neptune Mutual decided to close the cover marketplaces. Below the reasons for the decision as well as what it means for the community.
The marketplaces will be closed using an emergency withdrawal process whereby the liquidity provided to cover pools by LPs will be returned to the wallet addresses from which the liquidity was supplied. In addition to protecting cover pool LPs, there will also be refunds to all cover policy purchasers with an existing and valid policy who have paid over 10 USD in policy fees in one transaction.
For veNPM holders, please fill out this form to receive a refund for your veNPM to NPM conversion penalty.
From the end of June there will no longer be NPM emission incentives for LPs i.e. Epoch 3 of the liquidity gauge emissions will be canceled.
Unused funds raised from financial backers will be returned to those backers; this includes DEX liquidity that has now been removed from SushiSwap and Uniswap. A small amount of liquidity on SushiSwap Arbitrum has been left to enable a minimum amount of NPM trading.
The protocol will be open sourced, and become a true public good. Enabling the community to fork the code developed by the Neptune Mutual team such that others might use the existing resources to further our mission to make the blockchain space better protected against smart contracts and other risks.
There are numerous factors that have led to this difficult decision, some of which are external factors which are uncontrollable or unforeseeable. A few factors summarized below:
“Given Neptune Mutual’s Tier 1 backers, why have you not listed on a top CEX?”
This is perhaps one of the most frequently asked questions. In short, the answer is that for a variety of reasons Neptune Mutual was not able to achieve the diverse set of performance metrics (community size and engagement, marketplace user activity, DEX 24 hour trading volume, TVL growth etc.) required to list on top tier CEX. The CEXs that are prepared to list NPM token do not have the depth of liquidity or breadth of user-base to offer good prospects for NPM tokenholders.
“Why has Neptune Mutual not achieved strong growth?”
It is tempting to take a shortcut to answer this question by pointing a finger at one specific factor, but the reality is that there are many contributing factors. A few summarized below:
Since the outset of engaging with the community we have endeavored to highlight the need for DeFiInsurance; Neptune Mutual built a comprehensive dataset of on-chain hacks available, anywhere, and each week we highlight the many millions of dollars that are stolen as a result of smart contract hacks. Despite this, we have consistently been confronted by projects unwilling to spin up cover pools in our marketplace because of the sentiment that audits of their code are sufficient to persuade their community that their protocol is safe. Less than 0.3% of all digital assets are protected with some form of DeFiInsurance, and yet despite all the media reports of hacks, the conference discussions about the importance of governance or CEX proof-of-reserves, it continues to be the case that it is extremely difficult to get media attention to focus on the need for a fast and efficient means of mitigating smart contract risk.
A variety of approaches have been taken by different DeFiInsurance protocols to address this, from attending multiple conferences throughout the year and significant marketing spend, to the leaner approach that Neptune Mutual took (in part as a result of the bear market in 2023). What can be said is that no DeFiInsurance protocol has managed to achieve significant growth over the last 18 months, sadly the overall TVL of the sector has shrunk a lot.
For all the reasons above, at this moment the best course of action is no longer to double-down on investing in growth, but rather to refund unused capital and close the marketplaces.
The consequences are very tough for the Neptune Mutual team who have spent the past 3 years of their time on the mission to facilitate safer environments within DeFi. The team has delivered products according to the roadmap and the fact that the protocol was never hacked, despite attempts being made on the darkweb, is testament to the expertise, passion and absolute focus on security. The team survived the FTX and UST crisis unscathed, and believed that the continued growth in hacks would lead to growth in the demand for a good solution to mitigate these risks, but sadly, as can be seen right across the DeFiInsurance category, this is not yet in sight. So we would like to thank the team for all the dedication, skill and passion invested into the Neptune Mutual project since the outset.
The team will open source the protocol, including blockchain indexing protocol (subgraph alternative), frontend, middleware, database, and backend code, to make it a true public good. This will allow anyone to fork the code and create covers by defining parameters and premium ranges, potentially leading to innovative covers and organic usage.
The Discord channel will be closed to reduce the risk of phishing and other types of cyber attack, any questions / queries will be responded to in the Telegram channel.
We want to take this final opportunity to thank you all for your support.
Neptune Mutual will contact only its financial backers, with whom a signed agreement exists, in relation to next steps (i.e. holding NPM tokens does not qualify you for any form of refund). Contact will be made only from a neptunemutual.com domain email address so please check the source of any email you may receive very carefully. Please ignore any messages from any other email or social media accounts in relation to token/cash refunds.
What is the metaverse really all about? And is it worth the hype? Here’s what you need to know.
The metaverse is one of the biggest buzzwords in blockchain and has been touted as having the ability to usher in a new era of digital connectivity and shared virtual reality (VR) and augmented reality (AR) experiences. Tech and non-tech companies alike are pumping billions of dollars into the space even though it is still a long way from mainstream adoption.
What is the metaverse really all about? And is it worth the hype? Here’s what you need to know.
In October 2021, social media giant, Facebook announced that it would be rebranding to Meta with a view to “bringing the metaverse to life”. Despite the increased publicity generated about the metaverse since the announcement, the meaning of the term itself hasn’t necessarily gotten any clearer.
So what exactly is the metaverse?
It is a term that describes a hypothetical future version of the Internet where immersive virtual reality and mixed reality worlds combine to facilitate real time interactions and experiences.
Admittedly, this definition might not necessarily make the metaverse easier to understand. But hopefully, it gives enough to give you a general idea of the concept.
Basically, the metaverse is an upgrade to how we communicate with one another by allowing us to converse, work, shop, learn, and even play through a unified virtual experience. It’s essentially a massive network of interactive, blockchain-based virtual worlds where users are represented by custom avatars and move freely between these worlds for work, play, and everything in between.
Think of how you access the Internet now – open a browser, type in the website URL or do a web search, land on the website, and then browse through based on the site’s navigation system. Now try to imagine each website as a standalone 3D world that you can access and interact with using virtual and augmented reality tools like VR headsets, controllers, and haptic gloves.
Let’s say you want to buy something on Amazon. In the metaverse, instead of an eCommerce website, you would be browsing a virtual store where you can interact with the items for sale and check out information about them just as you would if you were shopping in a physical store. When you’re done shopping, you “exit the store” (close the tab) and visit any other virtual world (website) that you want.
What Are the Current Virtual World Platforms in the Metaverse?#
Right now, there are dozens of disconnected virtual worlds that will eventually become the metaverse. This means that these virtual worlds have their own avatars, access, currency, and interactions.
The most popular current virtual world platforms include Decentraland, Roblox, HyperVerse, Sandbox, NFT Worlds, Cryptovoxels, and Somnium Space.
Snapshot of real user avatars in Decentraland | Source: wired.com
Only when these worlds are truly interconnected whereby your avatar can move freely between worlds and interact with them without complications that we can achieve a true metaverse.
As you may have imagined, this will not likely happen anytime soon. Still, it’s worth highlighting the value that these pioneers bring into the space.
What Are Some of the Different Services Being Proposed by Metaverse Companies?#
There is a wide range of services being proposed by metaverse companies. These include everything from virtual currency exchange platforms to social VR applications. Some of the more popular services include:
Gaming: Players from all over the world can experience real-time gaming and move across worlds competing in different competitions and tournaments using their custom avatars. Think Ready Player One type of scenario. While we’re not there yet, it’s exciting to witness gaming that is more immersive and engaging than ever before.
Virtual Currency Exchange Platforms: These platforms allow users to buy, sell, or trade virtual currencies. Examples include Bittrex and ShapeShift.
Social VR Applications: These are applications that allow users to interact with each other in virtual reality, often for gaming or entertainment purposes. Examples include Rec Room, AltspaceVR, and High Fidelity.
Decentralized Virtual Worlds: These are virtual worlds that are powered by blockchain technology. This allows for more secure transactions and gives users more control over their data. Examples include DecentWorld, Decentraland, and .
What Are the Latest Innovations and Trends in Metaverse Startups?#
There are a few key trends that are currently driving innovation in the metaverse startup space.
The first is the development of new platforms and technologies that make it easier to create and deploy virtual worlds. This includes platforms like Unity and Unreal Engine, which allow developers to create high-quality visuals with ease.
Highly realistic human characters rendered using Unreal Engine MetaHumans | Source: unrealengine.com//metahuman
Additionally, there has been a rise in the use of blockchain technology to create decentralized virtual worlds. This allows for more secure transactions and gives users more control over their data.
Finally, we are seeing a trend towards the development of social VR applications. These are applications that allow users to interact with each other in virtual reality, often for gaming or entertainment purposes. Some popular examples include Rec Room, AltspaceVR, and High Fidelity.
Major Brand Names Investing Heavily in the Metaverse#
There are a number of major brand names that are already making their mark in the metaverse either with direct capital investments into the space or through filed patents and trademarks.
Here are some of the most popular examples by industry:
Behemoths in the tech space, including Meta, Apple, Microsoft, and Google have been quick to stake a claim in the metaverse with huge capital investments. For example, in January 2022, Microsoft announced its acquisition of gaming giant, Activision Blizzard for nearly $70 billion as part of the company’s plan to “provide building blocks for the metaverse.”
Nvidia, Epic Games (developers of Fortnite), and Roblox Corporation are among the leading brands in the gaming industry already making great strides in the metaverse. Who can forget the April 2020 Fortnite Astronomical event that featured a live concert with a massive hologram of rapper Travis Scott? The concert was attended by over 27 million participants.
It shouldn’t come as a surprise that many retail brands are chasing success in the metaverse. Virtual products are needed in the virtual world too, after all. To that end, US pharmacy chain CVS recently unveiled plans to trademark its products in the metaverse, as well as file a patent for downloadable virtual goods.
In fashion, sportswear giant Nike has already stamped its presence in the metaverse with a highly immersive and interactive world known as Nikeland. Since its launch in November 2021, the platform has recorded nearly 7 million visitors from all over the world.
Nikeland in the Roblox metaverse | Source: jingdaily.com
Other fashion brands investing in the metaverse include L'Oréal, Ralph Lauren, Tommy Hilfiger, and Dolce & Gabbana.
This one is tricky because it’s incredibly challenging to find a practical way to translate food and other everyday necessities into the virtual world. That hasn’t stopped fast-food restaurants like McDonald’s and Wingstop from having a go at it.
McDonald’s approach is to create a system where users can purchase virtual food in the metaverse and the physical version will be delivered to them in the real world. On the other hand, Wingstop intends to supply users in the virtual world with special tokens that grant them discounts for real-world purchases.
In February 2022, JPMorgan Chase became the first major investment bank to open a branch in the metaverse . This branch is located in the Metajuku Shopping Center, a 16,000 square foot shopping district in the Decentraland metaverse. Known as Onyx by JPMorgan, the bank branch features a luminous portrait of CEO Jamie Dimon, a live tiger, and a spiral staircase in the lounge.
That’s right, even governments are keen on getting a piece of the action that is the metaverse. In February 2022, South Korea’s Ministry of ICT, Science, and Future Planning released an official statement confirming its full-fledged support for the creation of an extended virtual world (metaverse) ecosystem. This is expected to expand the virtual industrial growth of the country.
A growing number of celebrities have also begun to create avatar versions of themselves, including Justin Bieber, Lady Gaga, and Leonardo DiCaprio. As the metaverse continues to grow in popularity, we expect to see even more major brands and celebrities entering this space.
How Much Money Has Been Invested in Metaverse Assets?#
This is difficult to quantify as the metaverse is still in its early stages and there is no centralized exchange where all transactions take place.
What we do know is that the figures are in the billions. A recent report by global consulting firm McKinsey & Company shows that in the first five months of 2022, over $120 billion has been invested in the metaverse. This is more than double the total amount invested in the space in 2021, which was estimated at $57 billion.
Additionally, according to a report by Goldman Sachs, the metaverse market might be worth $8 trillion.
So far, most of the investment has been in assets such as avatar data, NFTs, and virtual currencies. This is because these asset types offer the most potential for return on investment. However, as the metaverse matures, expect to see more investment in other asset classes such as property and art.
What Are the Different Types of Assets in the Metaverse?#
One of the biggest factors driving the growth and viability of the metaverse is the ability to fully own virtual assets and experiences thanks to the blockchain.
Some of the most popular assets in the metaverse include:
The metaverse is a collection of interconnected virtual worlds so it makes sense that one of its biggest selling assets is virtual real estate. The demand for virtual land is on the rise with some plots selling for millions of dollars. At the time of writing this, the highest amount spent on virtual real estate is $4.3 million by Republic Realms in The Sandbox.
Decentraland and Axie Infinity have also recorded million-dollar virtual land sales in their respective metaverse-worlds.
Another type of asset in the metaverse is NFTs. These are unique digital assets issued on the blockchain that cannot be replicated or interchanged, hence the name. They are often used to represent ownership of virtual property, avatars, art, or collectibles.
NFTs typically derive their value from their rarity level, as well as the current hype around their projects, which heavily influences demand. At the moment, the most expensive NFT sold is the Everydays: The First 5000 Days by Beeple, which was purchased at auction in February 2021 for a whopping $69.3 million.
Virtual currencies are digital assets that can be used to purchase goods and services within the metaverse. These coins help facilitate transactions within each world and can be ‘Hodled’ as well to benefit from upward market movements.
Top 10 metaverse virtual currencies by Market Capitalization | Source: coingecko.com
What Are the Biggest Risks Investors Face When Owning Metaverse Assets?#
Whether in physical or virtual form, assets represent value and are therefore subject to certain risks. These include:
This is one of the biggest challenges facing the entire blockchain ecosystem. Metaverse worlds run on regular IT hardware and software, making them susceptible to IT-based attacks. Recently, many large platforms like Roblox and Axie Infinity have experienced at least one form of hacking, with tons of user data and virtual assets worth millions being stolen.
One of the most recent events was the hack on Neopets, a popular metaverse game platform.
Phishing scams are a huge cause for concern among metaverse asset owners and investors. And rightly so, considering the occurrences of such scams have been on the rise lately.
In March 2022, Axie Infinity's Ronin bridge was hacked resulting in a loss of over $600 million. As the details of the hack came to light over the weeks that followed, it became clear that a phishing scam was the foundation of the attack. The hackers had duped a senior engineer at the company with a fake job offer via Linkedin. The victim had clicked on what they thought to be an acceptance letter in PDF format. It turned out that this action also resulted in downloading the spyware that was used to infiltrate Ronin’s systems.
Values of crypto coins and tokens are always subject to market volatility. This risk is further deepened by the fact the metaverse is still in its infancy stage so wild price changes are not uncommon.
These are risks that do not fit neatly into any of the other categories discussed above. For example, because metaverse worlds and their applications are relatively new, there’s no standard regulatory body overseeing their affairs.
Also, risks associated with power failure and poor Internet connectivity can result in huge financial losses for both users and creators within the metaverse ecosystem.
The metaverse is a rapidly growing collection of virtual worlds all offering richer, more immersive interactive experiences. It has been hyped up as a game-changing innovation and if recent developments are anything to go by, we can safely assume that it is on the right track.
However, with billions of dollars being pumped into the space, there are huge risks that must be taken into account. By understanding these risks, you can make informed decisions about how to protect your assets and maximize your chances for success in the metaverse.
