The Sandbox’s Animoca Brands Lays Down Web3 Expansion Plans

Key Insights:

  • Animoca Brands’ Yat Siu talks about shepherding companies into the Web3 space. 
  • Web3 and metaverse expansion could be on Animoca Brands’ cards this year.
  • The Sandbox has also actively advocated the entry of institutions and celebrities in the metaverse. 

With institutional and retail interest in Web3 and the metaverse growing, the Hong Kong-based game software company and venture capital, Animoca Brands, has laid down plans to speed up the evolution of the internet into an open metaverse.

Shepherding Firms Into Web3

In a recent interview, Animoca Brands’ co-founder and chairman Yat Siu claimed that his firm would continue to ‘shepherd companies into Web3.’ Siu has advocated the evolution of the internet into an open Metaverse for a long time. 

The Hong Kong-based entrepreneur is not very fond of the idea of closed internet dominated by large centralized Web2 companies. Instead, Siu is pro -decentralization of the internet which heads towards Web3. 

In the interview during the Australian Blockchain Week event, Siu discussed the broader aspects of Web3 for companies. The discussion was hosted by the CEO of crypto exchange BTC Markets — Caroline Bowler.

It covered several topics, including the actual value of Yuga Lab’s BAYC NFTs, the limitations of Web2, and Animoca’s ever-growing portfolio of companies and investments.

During the discussion, Siu said, 

“When you buy an expensive handbag, you buy the network effect and the story that is embedded within it. The same goes for BAYC, except you receive extra commercial rights which develop deeper network effects.”

Siu’s argument remains that decentralized Web3 platforms and digital assets like NFTs offer users a chance to maintain ownership rights over their data and content online, instead of it being controlled and utilized by firms such as Meta.

Furthermore, discussing the plans for Animoca Brands, Siu highlighted that the firm is still ‘super early’ in its long-term goal of building an open Metaverse. The entrepreneur also emphasized the importance of speeding up the process of building a decentralized space due to the risk of having larger centralized firms dominating the virtual sphere. He added, 

“You will continue seeing us take that approach as we try to shepherd companies into Web3.”

Animoca Brands Strengthing Crypto Marketing

Crypto marketing has been an effective way for projects to take the lead in the market. One of the most notable names for effectively marketing its brand is Crypto.com. The firm once again made headlines after adding FIFA World Cup Qatar 2022 to its list of sponsorship deals with sports to drive brand awareness.

The Sandbox, a subsidiary of Animoca Brands, has also actively marketed its brand with celebrities on board the metaverse train alongside partnerships and collaborations with institutions. 

As reported by FXEmpire, HSBC was the new corporate giant to enter the metaverse through a partnership with the Sandbox (SAND). HSBC joined a swarm of global brands working with the Sandbox, including Gucci, Warner Music Group, Ubisoft, and Adidas.

With Sandbox’s crypto marketing game on point and Web3 expansion on its cards seems like Animoca Brands is set for a bright 2022.

HSBC Partners with The Sandbox, Opening Doors Into the Metaverse

Key Insights:

  • The British banking giant HSBC has made its way into the metaverse.
  • HSBC is the first global bank to enter the Sandbox metaverse.
  • The partnership aims to help the bank ‘take sports engagement to a new level.’

The multinational investment bank and financial services holding company HSBC is the new corporate giant to enter the metaverse through a partnership with the Sandbox (SAND).

Finance Giant Entering the Metaverse

One of the world’s largest international banking and financial services providers, HSBC, made the partnership announcement today.

A blog post by the firm said that the new collaboration could potentially open more opportunities for virtual communities across the world to ‘engage with global financial services providers and sports communities.’

HSBC would acquire a plot of virtual real estate in the Sandbox metaverse to increase engagement and connect with sports, e-sports, and gaming enthusiasts.

Additionally, the financial giant believes that the agreement opens the door for other global institutions to continue innovating in Web3.

HSBC thinks that increased consumer adoption calls for robust experiences in the metaverse through decentralized and gamified offerings.

The statement provided no details of HSBC’s development in the virtual plot of land. However, the firm posted a promotional GIF in the blog showing an HSBC stadium next to a virtual body of water.

The Chief Marketing Officer, Asia-Pacific, at HSBC, Suresh Balaji, said,

“At HSBC, we see great potential to create new experiences through emerging platforms, opening up a world of opportunity for our current and future customers and for the communities we serve.”

Balaji further added that the firm’s partnership with the Sandbox will allow the bank ‘to create innovative brand experiences for new and existing customers.’

Customer Engagement through Metaverse and NFTs

The Metaverse and NFT space boom has led to many multinational firms entering the space to woo customers and increase consumer engagement. HSBC joins a swarm of global brands working with the Sandbox, including Gucci, Warner Music Group, Ubisoft, and Adidas, among others.

The Sandbox is a subsidiary of the Hong Kong gaming company – Animoca Brands. The firm raised $93 million in a funding round led by SoftBank Vision Fund 2 in November 2021.

The Sandbox has had its fair share of social attention over the last few months. On February 17, Snoop Dogg turned the Death Row record label into an NFT label and launched Snoopverse in the Sandbox.

Furthermore, just today, Paris Hilton announced a partnership with the Sandbox wherein the singer would appear as her voxel avatar.

Apart from gaming and sport, the metaverse has attracted celebrities from the music and entertainment industry. Interest from the Music industry has been so immense that even Tencent Music (TME) and Warner Music Group (WMG) have entered the metaverse.

Victoria’s Secret Plans NFTs and Entry into the Metaverse

Mainstream corporate interest in NFTs and the Metaverse has continued going into February.

This is in spite of a sharp fall in NFT trading activity through the early part of February. NFT trading activity had hit an all-time high in January, with OpenSea leading the way.

Major Brands Continue to Go NFT and Metaverse

In recent weeks, a number of major brands and corporations have filed for NFT and Metaverse-related trademarks.

Last week, we reported Gucci’s LAND purchase in the Sandbox (SAND). Back in 2021, Gucci had already collaborated with Roblox to host the “Gucci Garden”. This was a virtual version of a real-world installation in Italy, offering themed rooms in commemoration of Gucci’s centenary.

Major brands have also been embracing non-fungible tokens (NFTs) in rising numbers.

Gucci was among the first luxury fashion houses to sell NFTs, with Louis Vuitton, Prada, and sports brands Adidas and Nike also active in the NFT space. The rise in interest has been so significant that Nike purchased digital collectibles and sneakers creator RTFKT last year.

With Gucci and the likes of McDonald’s and Warner Music Group entering the Metaverse, it was only a matter of time before fashion week took to the Metaverse. Last week, Vogue Business announced on Twitter a 4-day digital fashion week in Decentraland (MANA) commencing 24th March.

Global brands and visitors will be able to virtually experience fashion shows, attend live music sessions and the after-parties. Attendees can also buy and wear digital clothing directly from catwalk avatars.

Some of the digital catwalk collections can be redeemed to receive the brand’s physical pieces. Buyers will need an Ethereum (ETH) wallet to purchase clothing.

Following last week’s news, beauty and lingerie powerhouse Victoria’s Secret joins the growing list of leading brands to enter the Metaverse.

Victoria’s Secret Plans Metaverse Debut

On Sunday, Mike Kondoudis, a trademark attorney, announced on Twitter trademark applications made by Victoria’s Secret.

According to Kondoudis, Victoria’s Secret “plans to offer digital collectibles and media created with blockchain tech and online clothing and media for use in virtual environments”. Victoria’s Secret filed the applications on 8th February.

The Sandbox Price Action

On Sunday, SAND slid by 3.79% to end the day at $4.06. Risk aversion stemming from the rising risk of Russia invading Ukraine weighed on SAND and the broader crypto market.

At the time of writing, SAND was down by 3.59% to $3.916. A move through February’s high $4.87 would bring January’s high $6.03 into play. SAND would need plenty of support from the broader market, however, for a breakout from $5.00 levels.

A move back through to $6.00 levels would then give SAND a clear run at November’s ATH $8.48. Breaking down resistance at $7.00 would be key, however. Geopolitical risks will need to subside to support the more bullish SAND price predictions.

SANDUSD 140222

Gartner Sees the Metaverse as a Growth of Digital Business

Metaverses have become more popular in recent months, especially in the crypto world as adoption increases.

Research and consulting firm Gartner predicts that by 2026, 25% of all people will spend at least one hour per day in the metaverse for work, shopping, education, socializing, or entertainment, according to a press release.

As the metaverse trend grows, there is a transition towards new business models that extend digital business, the consulting firm said.

Marty Resnick, research vice president at Gartner, commented:

“By 2026, 30% of the organizations in the world will have products and services ready for metaverse.”

Gartner’s Thoughts About the Metaverse

The press release mentioned that the metaverse will impact all the businesses that consumers use every day. Gartner also expects that metaverses will have their own digital economies with the use of digital currencies and NFTs.

When it comes to enterprises, the metaverse will provide their employees a better experience in a digital workspace. The metaverse also will bring companies the infrastructure they need to run the business.

Finally, as we went working to our homes because of the pandemic, virtual events are now more common than before, and with the metaverse there could be more networking opportunities such as online workshops.

What’s Next for the Metaverse?

As crypto global adoption continues, a lot of big names have joined the metaverse, such as Warner Music Group (WMG), Adidas, and McDonald’s.

Not only are big names entering the metaverse, nowadays, but there are also “metaverses mortgages”, metaverse casinos, metaverse weddings, metaverse art galleries, and more things happening in the digital world.

Most of all of these new experiences have been happening in metaverses known as Decentraland (MANA) and The Sandbox (SAND). Both metaverses have their own digital currency and are built on the Ethereum network. 

With the metaverse hype, both MANA and SAND have positioned themselves as the principal metaverse coins. 

Last month, Crypto.com commented that global crypto users can reach 1 billion by this December. In December 2021, there were 295 million users in the crypto world, according to their statement.

Gartner’s prediction would not be that insane by 2026 if crypto users reach one billion by late this year.

There is no doubt MANA and SAND will lead the way to other metaverse-related coins as crypto adoption continues.

Disney Shows NFT Interest With Latest Job Vacancy

Almost every brand has an NFT plan in the background, and Disney has finally revealed its own. 

The media and entertainment company announced this with a job posting for a new business development manager. The hire would be in charge of the Digital Experiences team at the company.

Disney Wants to Hire NFT Expert

The job description posted on January 30 states that part of the role of business manager would be to lead Disney efforts in the NFT space. This will include monitoring the dynamic marketplace, determining strategy, and managing partners.

With more than about ten responsibilities, Disney is focused on getting an experienced hand. Its requirements include a minimum of 5 years of experience with licensing and/or business development. It also requires knowledge and passion for Digital and NFT categories.

This won’t be the first time talks about NFT will involve Disney, but this is the clearest the company has been about its intention. In a recent interview with New York Times, former Disney chairman Bob Iger dropped hints about the company’s move into NFT and Metaverse.

Disney’s Metaverse Efforts

As a media company, Disney is well-positioned to take advantage of the growing industry because it already has assets to help its drive. 

Recently, journalists uncovered a virtual world simulator patent for Disney. The United States Patent and Trademark Office (USPTO) approved the patent last December. 

This was after the CEO, Bob Chapek, said during its November earnings call that the company is ready for its own metaverse.

The media giant also has a partnership with NFT marketplace Veve. The partnership was for the Gochain based platform to promote Disney streaming service Disney+ using the “Golden Moments” collection of digital tokens.

All of these point to a strategic plan by a leading company to become a relevant force in the NFT space. But it’ll find lots of competition with other media brands like YouTube, Meta, and Netflix, also exploring similar ideas.

Furthermore, many companies like Nike, Mercedes Benz, Coca-Cola, and more have already entered the NFT space with their own collections, partnerships, and patents. 

Polygon Continues Web3 Drive With Investment in Gaming Developer

Layer 2 protocol, Polygon announced early today that it has invested in gaming developer, Hike. The Twitter announcement described Rush Gaming Universe as India’s most exciting social gaming universe. 

Polygon Invests in Hike

The investment means that the Rush Gaming Universe platform will now deploy on Polygon Network.

Hike developed the Rush Gaming Universe, which has emerged as one of the top gaming platforms in India. Launched a year ago, RGU has been doing incredible numbers. The platform now generates $50 million Gross ARR.

Rush Gaming Universe is a virtual world of fun and entertainment, with more than 100 million gameplays per quarter across eight different games. The whole ecosystem is currently built around the app, but the platform is now looking to deploy on-chain for a better experience.

According to the CEO and Founder of Hike, Kavin Bharti Mittal, a new era of gaming is emerging where players will be at the centre of the ecosystem. He stated that gaming wouldn’t just be a source of joy and entertainment for people in this new era. It’ll also provide economic opportunities for people.

By partnering with Polygon, Rush Gaming Universe will have access to the robust infrastructure of Ethereum. While Polygon started as a Layer 2 sidechain for Ethereum, it has gradually emerged as a major network of its right.

The partnership with Hike aligns with Polygon Web3 aspirations. The network is currently making itself a digital culture hub amidst the metaverse trend. It has established Polygon Studio recently and has been recruiting top executives for the project. 

It recently hired YouTube gaming executive and esports commentator Ryan Wyatt as the CEO. Polygon Studio also announced a partnership with Adidas Originals and Prada that’ll see it launch a unique NFT project.

Polygon’s Price Down in the Last 24 Hours by Over 1%

While Polygon is making new inroads into the Web 3 space, its native token, MATIC, is yet to find its way back to its past glory. The token has lost over 40% of its value in the past thirty days, and nothing seems to be breaking the fall.

As of press time, the asset is trading for $1.59 after it shed around 1.3% of its value in the last 24 hours.

Polygon’s implementation of EIP-1159 for its token hasn’t had much of an impact on the price. But the development of a social gaming universe of the network might have a positive effect. Moreover, RGU promises a new class of users for the Polygon network when deployed.

Adidas and Prada Unite to Hit the NFT Market with a First-of-its-Kind Collaboration

While the crypto market sees deep red, as FED policy and regulatory chatter break investor resolve, the NFT market has kicked off the year in stellar fashion.

Founded in 1913, Italian fashion house Prada has joined forces with Germany leading sports brand, Adidas.

Fashion, Sport, and NFTs

Sports and NFTs have been in partnership for some time now. U.S leading sports franchises the NFL and the NBA both launched NFT market places to allow sports fans to collect or trade scoring moments and digital highlights.

Such is the growth in the NFT space that leading player Dapper Lab (Flow) became the first NFT-linked company to register to lobby with the U.S government. Regulatory scrutiny has spiked at the turn of the year, with the SEC warning of more regulatory activity to come.

Europe and the NFT Market

Prada and Adidas are not the first big European brand names to enter the NFT space. Other big brands include Gucci and Louis Vuitton.

RTFKT, formed back in 2020, has certainly influenced fashion houses and sports brands to enter the space. RTFKT creates digital collectibles and sneakers. Such was RTFKT’s success that Nike bought RTFKT late last year.

Gucci was among the first fashion houses to enter the NFT space. Last year, Gucci sold a 4-minute video at Christie’s auction for $25m. Proceeds of the sale were reportedly to be donated to UNICEF USA to support the non-profit COVAX initiative.

As a result of the COVID-19 pandemic, Paris Fashion Week went NFT last year. Not only has fashion embraced NFTs but are now selling product as NFTs. RTFKT and Gucci have sold digital sneakers in the NFT market place. Other big names selling virtual articles have included Stella McCartney and Nike. Valentino, Burberry, Balenciaga, and Hermes are other big names that have also entered the virtual world.

The Prada Adidas Collaboration

This week, Adidas and Prada announced a “first-of-its-kind open-Metaverse & user-generated NFT project”. The project will be on the Polygon (MATIC) blockchain and is titled the “Adidas for Prada re-source”.

According to the announcement, 3,000 community-sourced artworks will be minted as NFTs. The NFTs will form tiles in a “mass-patchwork NFT”, which will be designed by Zach Lieberman. NFT market place SuperRare (RARE) will auction the final NFT.

From Monday 24th January, “anyone can register with a digital wallet and have a chance to create and mint a pseudonymous NFT”. Selected contributions will then appears as individual tiles in the final “mass-patchwork NFT”.

Polygon Price Action

At the time of writing, MATIC was up by 0.35% to $1.708. The modest rise this morning comes off the back of a 13.2% tumble on Friday. Market sentiment towards FED monetary policy and a global equity sell-off weighed on the crypto markets on Friday, leaving MATIC in the deep red.

Sitting well below November’s ATH $2.925, a move back through January’s high $2.603 would give MATIC a run at $3.00 levels. Sentiment across the broader market would need to change, however, for MATIC to breakdown resistance at $2.00.

MATICUSD 220122

Crypto Inspiration Boosts GameStop Stock by Over 20%

The shares of video game retailer GameStop saw a 27% rise on extended trading yesterday. This came after news that the company is launching a division to develop a Non-fungible token (NFT) Marketplace and establish cryptocurrency partnerships.

GameStop to Launch an NFT Marketplace 

Although the company refused to comment, a source close to the matter confirms this saying it is part of the massive restructuring currently ongoing at the company. This is in a bid to turn GameStop to eCommerce after years as a brick-and-mortar business.

Apparently, an NFT marketplace is an important part of this plan. According to Wall Street Journal, which first reported the news, the company is already working with some game developers and publishers who’ll list their NFTs on the marketplace.

The company got a lot of attention during the meme stock rally as the price of GME went through the roof last year. But it has since dropped to more conservative levels. 

Now, an NFT marketplace appears to be the perfect catalyst the company needs for its shares to rebound. GameStop launched an NFT website last year for creators to join the platform and also announced that it would be accepting popular meme coins, Dogecoin and Shiba Inu.

With the company already hiring over 20 people to work on the project, the marketplace might be a reality soon. Per WSJ, the marketplace will be a virtual space for people to trade NFTs of virtual video games collectibles.

GameStop’s interest in NFT isn’t surprising, especially with the digital asset’s mainstream attention in recent months. You’ll recall that we reported the acquisition of an NFT by popular football star Mario Gotze. We also reported that a leading sporting event, Australian Open, is also incorporating NFTs into its tournament.

Also, two of the leading electronics makers in the world, Samsung and LG electronics have announced that they would be adding NFT features to their new smart TVs.

NFT-related Tokens are in red Despite Public Interest

According to data from Coingecko, the top 5 NFT tokens by market cap have lost between 2% to 25% of their values in the last seven days.

In fact, Axie Infinity’s AXS token, for example, is one of the biggest losers as it lost over 20% of its value within the last 7 days despite the growing interest by top companies like Adidas and others. Other top losers include GALA and SAND with losses in double digits too.

However, it should be noted that the entire crypto market is currently bearish.

Projects like Decentraland, Enjin Coin, and others went on a bull run that culminated in their native tokens rising to new heights last year.

Heavy Metal Magazine Enters NFT Space With 5200 Pieces

Non-fungible tokens (NFTs) have had a great time this year, and that’s not stopping anytime soon. With several companies getting in on the NFT wave, Heavy Metal has announced that it’ll be dropping NFT items that represent the characters and stories that have been featured in its Magazine.

Heavy Metal Launch NFT

The publisher has played a pivotal role in shaping the heavy metal music scene in the US and giving Americans an inside view of the edgy world. The magazine not only introduced the finest international acts to the US, but it also made several underground superstars popular. But more than that, it also explored sci-fi, alternate realities, thrillers and more.

Now, all these iconic characters will return as NFTs with the 5,200 Krampus packs. Each pack will contain 3 NFTs with over 10 different NFT variants for each pack. The Heavy Metal mag will explore old characters loved by fans. 

What further makes this concept amazing is that the NFTs won’t just be digital art, but those with the right combination will also have special prizes that include 10 Replicas of the AXE from Joe Trohman and Brian Posehn and 20 Taarna Painted Air Jordans.

Adidas, Others on the NFT Train

It’s not only Heavy Metal that’s on the NFT train. Adidas recently launched its NFT collection. It’s taking a step further in its romance with the blockchain technology that already includes a partnership with Coinbase.

The 30,000 item NFT collection, tagged “Into the Metaverse”, was launched in partnership with Bored Ape Yacht Club, PUNKS Comic, and GMoney. Interest in NFTs has grown as the idea of metaverse becomes more popular and mainstream.

Both Heavy Metal Magazine and Adidas NFT collections are based on the Ethereum blockchain and can be bought with ETH

The coin, which is currently worth over $4,000, has been having a tough time in the bear market. Since it dropped from its ATH of $4,891.70, it’s been hovering around $4000. CoinMarketCap reports a 1.09% rise in its value in the past 24 hours with a 4.63% rise in the past 7 days.

Instagram is Currently Exploring NFTs, CEO Reveals

The nonfungible token (NFT) space is one of the fastest-growing within the cryptocurrency industry, attracting major companies and celebrities in recent months. The sector is expected to record further growth over the coming months and years.

Social Media Giant is Entering the NFT Space

Instagram CEO Adam Mosseri has revealed that the social media giant is actively exploring the NFT space. The Meta-owned social media platform is the latest big company to enter the budding NFT industry.

Mosseri said, “Nothing to announce yet, but we are definitely actively exploring NFTs and how we can make them more accessible to a wider audience. I think it’s an interesting place that we can play…and also a way to hopefully help creators.”

This isn’t the first time Instagram is entering the NFT space. Earlier this year, the company hosted a panel for NFT creators in a bid to attract talent to its social media platform. Instagram designed the event to help creators grow their following and monetize their platforms.

Instagram’s desire to go deeper into the NFT space doesn’t come as a surprise as its parent company Facebook rebranded to Meta two months ago, a move that underlined its desire to explore the NFT and metaverse sector.

NFT Space Continues to Attract Big Companies

The past few months have seen numerous large companies enter the NFT space. Last week, Microsoft and Warner Bros became the latest companies to invest in the NFT space after backing startup Palm NFT Studio.

Other leading companies such as Adidas, Nike, Marvel, DC Comics, and several others entered the NFT sector area this year. The sector has also attracted numerous celebrities since the start of the year.

NFTs have become very appealing to music stars, movie actors and athletes of various sports. Former US first lady Melania Trump also launched her first NFT last week. The adoption is expected to continue as the sector is just starting to grow and grab people’s attention.

Instagram isn’t the only social media company that is expanding into the NFT space. Social media platform Parler announced earlier today that it would expand its business into nonfungible tokens.

Adidas Will Launch Its First Nft Collection Today

Adidas hasn’t stopped being involved with the blockchain space during the last two months, in November they partnered with Coinbase and earlier this month Adidas announced they were joining the metaverse and NFT world by partnering with the Bored Ape Yacht Club (BAYC), Gmoney and PUNKS Comic, and today they are launching their first NFT collection named “Into the Metaverse” on their official website.

“The intent is this thing, this NFT, you belong to a community, and we continue to add value to that over time, and it’s gonna also evolve with what we’re learning about the community, how they’re changing and evolving”. Adidas Originals VP of Brand Communications Erika Wykes-Sneyd commented.

“Into the Metaverse” NFT collection

There will be a limited supply of 30,000 NFTs in the collection, each NFT will cost 0.2 ETH ($767 at the time of the writing) and the drop will occur in two phases, the early access phase and the public sale phase. The early access phase will consist of dropping 20,000 NFTs for Bored Ape/Mutant Ape Yacht Club, Pixel Vault, POAP, Gmoney POAP for NFT holders who held their NFTs in their wallets on December 14th. The public sale phase of 9,620 NFTs will be dropped for anyone who wants to be a part of the community, leaving 380 NFTs for future drop events, according to its official website.

Holders of this NFT collection will have great benefits, from virtual land experiences in the digital world to adidas Originals physical merchandise and graphic hoodie as the PUNKS Comic #2.

Will sports clothing companies have a great role on the metaverse?

Adidas is not the only one that has jumped into the metaverse and NFT world, Nike partnered with the gaming platform Roblox to create a metaverse called “Nikeland”, additionaly, this week it entered the space by acquiring RTFKT, a digital design sneaker company. One sure thing is that it appears we are going to live in a double life, a physical and a digital one, and if we are going to have a digital human representing us in the metaverse, we will need something to wear, and these giant sport clothing companies are leading the way. The people in the metaverse will value very much having products of companies they use in real life, which brings new opportunities for these companies to expand in this new digital era. In the future we can expect more clothing companies, not only sports, to join the metaverse and NFT ecosystem.

Adidas Partners with Coinbase, The Sandbox Could be Next

The cryptocurrency space has grown to become a $3 trillion market over the past few years. The massive growth recorded in recent months has attracted some of the leading companies and brands in the world.

Big companies have partnered with cryptocurrency entities and invested in their products and services.

Adidas Announces Partnership with Coinbase

The Adidas brand Adidas Originals announced earlier this week that it has partnered with Coinbase, one of the largest cryptocurrency exchanges in the world. The partnership has gotten a lot of attention within the crypto space due to the German company’s stance as one of the leading sports apparel manufacturers in the world.

Adidas wrote, “We’ve partnered with Coinbase. Probably nothing.” On its part, Coinbase replied to the tweet, welcoming Adidas to the party. The announcement stopped there as neither Coinbase nor Adidas provided further details regarding the partnership.

The crypto world is now left wondering how the two companies could work together in the cryptocurrency space. However, Coinbase and Adidas could provide in-depth details into the partnership when they feel the time is right.

The Sandbox Might be Next for Adidas

The German company could be looking to establish deeper roots within the cryptocurrency space. One of the most exciting areas in the crypto space at the moment is the metaverse. Adidas might be looking to establish a presence in the metaverse space.

The company is flirting with the metaverse, and The Sandbox could be the company it partners with to explore this new exciting field. Adidas purchased a 144-parcel space in The Sandbox’s virtual space.

Following this acquisition, Adidas said, “Adidas Originals is diving into the Metaverse and headed for the Sandbox with our first immersive and always-on virtual experience. Join us as we take our first steps into this brave new world of originality.”

The Sandbox has been one of the biggest winners in the metaverse in recent weeks, rising by more than 260% since the start of the month.

European Stocks Slide as Evergrande Concerns Resurface

The regionwide STOXX 600 index slipped 0.5% after a three-day run of gains. Miners, automakers and retailers fell more than 1% each.

Investors took some profits off the table after mid-week rally as a deadline for paying $83.5 million in bond interest passed without remark from Evergrande, concerns about which rocked financial markets earlier this week.

German sportswear makers Adidas and Puma fell 3.7% and 2.5%, respectively, after Nike cut its fiscal 2022 sales expectations and said it expects delays during the holiday shopping season, blaming the ongoing supply chain crunch.

Broadly, Germany’s DAX fell 0.7%, heading into the weekend when the country will vote to elect German chancellor Angela Merkel’s successor.

British drugmaker AstraZeneca jumped 3.2% after the company said its cancer drug Lynparza met its primary goal in a late-stage trial.

For a look at all of today’s economic events, check out our economic calendar.

(Reporting by Sruthi Shankar in Bengaluru; Editing by Arun Koyyur)

European Stocks Log Best Winning Streak Since 2006, Fourth Week of Gains

The pan-European STOXX 600 index inched up 0.2% to a record high of 476.16, for the tenth straight session. The index has now matched its best winning streak since December 2006.

While the pace of gains has slowed due to thin summer trading, the index has logged nine-day gaining streaks seven times in the past fifteen years.

Germany’s DAX index ticked above 16,000 points for the first time ever, while France’s CAC 40 index index touched its highest level in nearly 21 years.

Both European and U.S. stocks hit record levels this week, supported by rising earnings expectations and improving economic data, even as Asian equities were held back by worries about Chinese regulation and the fast-spreading Delta variant of the coronavirus.

“If investors are concerned about rising Delta variant cases globally there’s little evidence that it is prompting any undue worry, although markets in Asia have been a little more cautious,” said Michael Hewson, chief market analyst at CMC Markets UK.

Meanwhile, speculation that the U.S. Federal Reserve could soon start to unwind its bond-buying stimulus calmed a bit following tame U.S. consumer prices data this week.

Focus will be on the minutes from the U.S. central bank’s last policy meeting next week for clues on the outlook for monetary policy.

“With equity markets almost doubling since the start of the pandemic and a bull market lasting over a decade, investors are questioning how far the bull market can rally,” said Geir Lode, head of global equities at the international business of Federated Hermes.

“With higher inflation and regulatory risk we believe value stocks will outperform growth stocks,” said Lode, adding that he expects stronger earnings growth among mid-cap and smaller companies versus the mega-cap growth companies.

Italian shares were also trading near their highest since September 2008.

Adidas rose 2.3% after it said it was selling Reebok to Authentic Brands Group for up to 2.1 billion euros ($2.5 billion).

Pet supplies retailer Zooplus shot up 41.1% after it accepted a takeover offer worth around 3 billion euros ($3.5 billion) from U.S. private equity firm Hellman & Friedman.

French healthcare company Ipsen tumbled 12.7% after it withdrew a U.S. application for palovarotene, its treatment for an extremely rare disease that causes muscles and tissue to turn to bone.

For a look at all of today’s economic events, check out our economic calendar.

(Reporting by Sruthi Shankar and Shreyashi Sanyal in Bengaluru; Additional reporting by Sagarika Jaisinghani and Susan Mathew; Editing by Shounak Dasgupta and Dan Greber)

Marketmind: Muddied Waters

That confusion was evident in global markets too.

World stocks are set to sign off the week on a record high while the U.S. Treasury yield curve is still trading near its flattest levels this year, a sign that bond punters remain concerned about inflation.

For now, the Federal Reserve can maintain its assertion that inflation rises are temporary.

But a majority of economists polled by Reuters expect the Fed to taper its asset purchases in September — the jobs market is stronger and Fed officials appear to be more willing to discuss tapering the $120 billion monthly asset purchases.

Until fresh data adds to the taper debate, markets will likely remain in summer torpor mode.

Even a widening regulatory crackdown in China has failed to ignite broader market unease with the VIX “fear gauge” dropping to a five-week low, and a U.S. equity put/call ratio slipping below already very low levels.

European and U.S. stock futures are generally flat, with the second quarter earnings season supporting sentiment. U.S. investment grade companies have recorded an impressive 30% earnings growth in the June quarter compared to the similar period two years ago, Citibank estimates.

Favourable readings were evident in Europe too with banks, historically laggards, posting impressive results.

The spoiler in the cautiously optimistic markets outlook remains the surging Delta variant of COVID-19, especially in Asia. Malaysia’s central bank on Friday slashed its 2021 economic outlook due to the COVID surge. Australia’s two largest cities – Sydney and Melbourne – remain in extended lockdown.

Elsewhere, oil prices fell for a second day, while the U.S. dollar held near four-month highs against its rivals.

Key developments that should provide more direction to markets on Friday:

– Europe macro: France unemployment, final July CPI, euro June trade balance.

– U.S. macro: Import price index, Michigan University sentiment readings.

– British engineering firm Babcock to sell its consultancy unit Frazer-Nash for 293 million pounds ($404.5 million) in cash.

– Adidas is selling Reebok to Authentic Brands Group(ABG) for up to 2.1 billion euros.

For a look at all of today’s economic events, check out our economic calendar.

(Reporting by Saikat Chatterjee; Editing by Dhara Ranasinghe)

Reebok Is Struggling? Its No Longer Adidas’s Problem

Reebok has been struggling for the past few years, and Adidas is ready to part with the sneaker brand after agreeing to sell it to Authentic Brands Group.

Adidas To Sell Reebok To Authentic Brands Group

German apparel giant Adidas has announced today that it has agreed to sell Reebok to Authentic Brands Group. The Reebok deal is set to be worth around 2.1 billion euros, or roughly $2.5 billion and would take away Reebok from Adidas‘s control for the first time in years.

Authentic Brands Group is a New York-based brand management company that is known for its holdings in many ventures such as apparel, athletics, and entertainment. Over the years, Authentic Brands Group has built a reputation for acquiring bankrupt brands such as Brooks Brothers, Aeropostale and Forever 21 and adding them to its retail conglomerate.

At the moment, Authentic Brands Group is not yet a publicly listed company, but it is preparing for an IPO. Reebok has been a part of Adidas since the German company bought it for $3.8 billion in 2006 in a bid to compete with Nike. However, Reebok has underperformed in recent years, prompting repeated calls from investors to sell the brand.

Adidas has been able to successfully enter the United States market without the help of Reebok, thanks to numerous partnerships with celebrities such as Kanye West, Beyonce and Pharrell Williams.

Reebok To Maintain Its Operational Status

According to Reebok, it will maintain its headquarters in Boston. The company will also continue operations in North and Latin America, Asia-Pacific, Europe and Russia. Furthermore, Reebok will work closely with Adidas during the transition period to ensure everything goes as expected.

Jamie Salter, founder, chairman and CEO of Authentic Brands Group, stated that they have been eyeing Reenok for the past few years and they are excited to acquire it. “We are committed to preserving Reebok’s integrity, innovation, and values – including its presence in bricks and mortar” the CEO added.

ADS stock chart. Source: FXEMPIRE

The shares of Adidas went up by 0.57% on the German stock exchange. ADS has performed well this year, rising from EUR 296 to currently trade at EUR 308.

European Stocks Extend Record Rally on Lift From Insurers, M&A Activity

The pan-European STOXX 600 index inched up 0.1%, extending gains to a ninth consecutive session.

British insurer Aviva rose 3.5% after saying it would return at least 4 billion pounds ($5.5 billion) to shareholders, while Zurich Insurance Group added 3.8% on reporting a 60% jump in first-half business operating profit.

Dutch insurer Aegon NV jumped 7.3% after posting much better than expected second-quarter earnings.

Deutsche Telekom rose 2.8% after raising its profit outlook for the second time this year.

The benchmark STOXX 600 clocked its longest winning streak since June, as earnings reports and optimism related to the pace of vaccination across Europe reinforced investor confidence in an economic recovery.

Data showed Britain’s economy grew by a faster than expected 1% in June, after many hospitality firms restarted indoor service in mid-May and as more people visited doctors following the pandemic, lifting healthcare.

Factory output fell in June in the euro zone, as Germany, the bloc’s industrial powerhouse, faltered amid supply bottlenecks, European Union estimates showed.

“The second successive monthly fall in euro-zone industrial production in June was largely due to ongoing supply-chain difficulties in Germany,” said Andrew Kenningham, chief Europe economist at Capital Economics.

“As these will ease only slowly, we don’t expect industry to contribute much to economic growth in the coming months, even though demand is still red hot,” Kenningham added.

Cineworld Group rose 3.9% after it said it was considering a listing of itself or a partial listing of its movie chain Regal on Wall Street.

Meanwhile, Adidas rose 1.6% after selling its Reebok brand to Authentic Brands Groups for up to 2.1 billion euros ($2.5 billion), as the German sporting goods company sought to draw a line under an ill-fated investment.

Stock Spirits Group soared 43.7% funds as funds affiliated with private-equity firm CVC agreed to take over the London-listed vodka maker in a deal valuing it at 767 million pounds ($1.1 billion).

Dragging down miners, UK-listed shares of global miner Rio Tinto slipped 5.5% on trading ex-dividend.

For a look at all of today’s economic events, check out our economic calendar.

(Reporting by Sruthi Shankar and Shreyashi Sanyal in BengaluruEditing by Shounak Dasgupta and David Holmes)

Stock of The Day: Adidas

A short analysis today of Adidas, a German company, which needs no introduction. It’ll be a very short analysis because the situation here is very straightforward. We have one crucial support, which is being currently tested by the price. What will happen from here will depend on the mid-term sentiment on this instrument.

So at the end of June, Adidas broke the crucial horizontal resistance, slightly above the psychological level of 300 EUR. It was not just a round price but also the upper line of the sideways movement locked inside of the rectangle formation (yellow lines).

That breakout, gave us a buy signal and indeed, the price did climb higher making new all-time highs. Not bad, huh? Sentiment changed though when the global markets started to slide. Adidas did not resist and went down as well.

And here we are, Adidas is currently testing the 303 EUR support but this time, from the top. As long as we stay above, the sentiment is positive. A bounce here in the shape of a hammer or a bullish engulfing pattern would be a great occasion to buy.

On the other hand, the price closing a day below the yellow support would be a very negative sign as that would mean a false bullish breakout and if you’ve been following us long enough, you know what that means. If not, then let me explain: it means trouble, big, big trouble.

For a look at all of today’s economic events, check out our economic calendar.

Will Earnings Season Bring Volatility To The Stock Market?

The Commerce Department last week reported that the U.S. economy grew at a +6.4% annual rate in the first quarter, slightly below estimates but still strong. If it would have come in real hot and much higher bears would have pointed to fanning the inflation flames even further.

This mindset of “bad-news-could-be-good-news” is helping to keep the stock market at or near all-time highs. If economic data somewhat disappoints it means the Fed stay dovish and accommodative for longer.

Fundamental analysis

That might be important to keep in mind as April data starting this week is expected to be extremely good. The April Employment Report is due next Friday and with upper-end of Wall Street estimates look for upwards of +1 million new jobs being added. Other key April data next week includes the ISM Manufacturing Index on Monday, and the ISM Non-Manufacturing Index on Wednesday.

employment

If the data comes in better than expected the bears will win the nearby battle and have the upper hand when talking higher inflation and the Fed perhaps tightening sooner than anticipated. So this week could be a bit tricky whereas “disappointing-data” could actually be digested as a win for the bulls and “strong data” a win for the bears.

The earnings calendar is packed again next week with big names including Activision Blizzard, Adidas, AllState, Cerner, Cigna, CVS, Dominion Energy, Enbridge, Etsy, Hilton Worldwide, Moderna, Monster Beverage, Nintendo, PayPal, Peloton, Pfizer, Rocket Companies, Square, TMobile, Wayfair, and Zoetis.

COVID-19

Checking in on U.S. progress against Covid-19, the number of adults that have received at least one dose is around 60%-65%, depending on the source. Global cases continue to rise led by India, where new infections have been hitting new record highs every day for weeks now. The country reported a staggering 380k new infections and 3,645 new deaths on Thursday while less than 10% of the population has been vaccinated.

Bottom line, the global restart will not be synchronized like many bulls had hoped would be the case and global growth may continue to struggle. At the moment the U.S. market doesn’t seem to care. It will be interesting to see if increasing inflation and continued global headwinds will eventually come home to roost.

SP500 technical analysis

SP500 earnings season

Earnings season can bring volatility to the stock market. At the beginning of May, cycles turn to the downside. Note, this is only a timing tool and it never shows the amplitude or strength of the move. When cycles are topping, it means we can expect a move down or choppy trading. This is it.

But relying on cycles only is not a good idea. Insider Accumulation Index shows bearish divergence on a daily chart. At the same time, Advanced Decline Line is still strong. The key resistance is around 4250 at the moment. I believe earning season can bring a profit booking to the stock market. If that happens, watch 4000 – 39500. It was a massive resistance and now it might turn into support. Intermarket Forecast is neutral. But if it turns to the downside, we will finally see a pullback in SP500.

For a look at all of today’s economic events, check out our economic calendar.