Hope everyone is happy for the weekend! As usual the Web3 world is packed with news and we are right here to bring it to you.

Outline for today🔥

• ⛓️ Multichain faces backlash as concerns mount

• 📈 Bitcoin Ordinals surge in popularity

• 🤯 NFT comebacks are possible!

Multichain faces backlash as concerns mount.

Growing concerns surrounding the safety of Multichain and uncertainty about the fate of its team have sparked rampant rumours within the crypto ecosystem.

Technical issues with the bridging protocol have resulted in users experiencing difficulties when attempting to withdraw tokens from the platform.

Crypto bridges, including Multichain, have raised alarm among market participants due to risks beyond hacking incidents that can lead to substantial losses.

Multichain, ranking as the third-largest bridging protocol in terms of transfer volume and total value locked, employs a mint-and-lock mechanism to facilitate the movement of assets across different blockchains.

For instance, it enables the bridging of USDC from Ethereum to Fantom.

During the recent troubles faced by Multichain, wrapped USDC tokens on Fantom lost their peg to the dollar, creating an opportunity for arbitrage traders to purchase them at a discount.

Consequently, Binance has temporarily suspended deposits for 10 tokens bridged through Multichain, citing concerns about the associated risks with non-native assets.

The method employed by Multichain to wrap assets for bridging purposes has raised skepticism among market participants.

As a result, Squid Router, an alternative bridging protocol that employs swaps rather than wrapped tokens, has witnessed increased activity during the Multichain crisis.

The crisis has also taken a toll on the value of Multichain's native asset, MULTI, which has plummeted by 54%. The lack of communication and factual information from Multichain has compelled entities to implement risk-mitigation measures irrespective of the true state of the protocol.

Bitcoin NFTs Surge in Popularity

Nike's highly anticipated .SWOOSH NFT drop encountered delays and technical difficulties, disappointing some users. Despite these setbacks, the NFT collection managed to generate over $1 million in sales, highlighting the continued demand for digital collectibles in the market.

In the world of NFTs, Bitcoin-based digital assets have been gaining significant traction and have climbed to the second spot in terms of sales per blockchain, closely trailing Ethereum.

This surge in popularity further solidifies the growing importance of NFTs in the crypto space.

NFT lending platforms, such as Blend and Binance, are witnessing notable growth as they enable users to utilise their NFTs as collateral for obtaining Ethereum-based loans.

This innovative approach allows individuals to monetise their NFT holdings without having to sell them outright.

Among the recent notable developments in the NFT space, the "Space Pepes" collection, based on Bitcoin, emerged as the most traded NFTs, amassing over $7.3 million in trade value. This demonstrates the enthusiasm and financial potential surrounding unique digital assets.

Despite Nike's expertise in exclusive sneaker releases, some users expressed disappointment with the technical issues experienced during the .SWOOSH NFT drop.

The mishaps raised questions among enthusiasts, given Nike's reputation for delivering seamless and highly sought-after products.

In the realm of NFT art, Claire Silver collaborated with RSTLSS to create the Pixelgeist NFT collection, which seamlessly blends fashion, art, and technology.

The collection features AI-generated artwork and wearable digital avatars, representing the intersection of various creative disciplines.

In other news, the NFT ecosystem continues to evolve, with updates including a forthcoming Dogecoin documentary, Gods Unchained roadmap developments, metaverse studies in China, and a virtual Pride event hosted in Decentraland.

The NFT lending market is also experiencing increased attention, with platforms like Blend, Binance, and Astaria offering unique opportunities for individuals to monetize their NFT assets without relinquishing ownership.

NFT comebacks are possible!

The Pudgy Penguins NFT project has made significant strides, capturing attention and achieving success in the NFT space.

Following its debut on Amazon, the floor price of Pudgy Penguins experienced a remarkable increase of over 6 ETH, demonstrating strong demand and investor interest.

The project's popularity was further enhanced when Pudgy Penguins joined the NFT lending platform Blend, solidifying its legitimacy and association with other well-known NFT collections such as Azuki and Bored Ape Yacht Club.

The Pudgy Penguins project successfully raised $9 million in a funding round and even released physical toys, which sold an impressive 20,000 units.

These accomplishments contributed to raising the project's floor price to 6.2 ETH, showcasing the growing value and appeal of these cute penguin-themed NFTs.

Led by Luca Netz, the Pudgy Penguins team focused on developing the project's intellectual property (IP) and aimed to onboard individuals from Web2 to Web3 by leveraging the charming penguin characters.

The community, affectionately known as "the Huddle," played a vital role in the project's success. Regular updates, transparent communication, and empowering holders to profit from the penguins' IP further strengthened the bond within the Pudgy Penguins community.

The project's trading volume reached an impressive 170,457 ETH (equivalent to over $300 million) with a floor price of 5.4 ETH ($9,700). These figures demonstrate the strong market demand and trading activity surrounding the Pudgy Penguins NFTs.

The inclusion of Pudgy Penguins in the NFT lending platform Blend has added credibility to the project, positioning it alongside other prominent NFT collections.

This recognition further solidifies the project's reputation and potential for long-term success in the NFT ecosystem.

Overall, the Pudgy Penguins NFT project has gained considerable momentum, garnering attention and achieving notable success in the competitive NFT space.

Disclaimer: This is not any kind of financial advise. This newsletter is solely informational; it does not constitute investment advice, a solicitation to buy or sell any securities, or a recommendation regarding how to manage your money. Be cautious and conduct your own study, please.