gm! It's been another eventful week in Web3 and we're here to recap the top stories...

• FTX Aftermath: Contagion and shocking revelations

• Virtual Fashion Wars: Nike and Adidas introduce their virtual wearable platforms

• Rug Radio Updates: Nike .SWOOSH space, Uniswap partnership announcement, Rekt Radio, Metaverse Miami/Art Basel, Givenchy x Rug Radio

FTX Aftermath

The fallout from the FTX collapse continues with the effects spreading to other companies, in addition to shocking discoveries. Here's the latest...

• The Financial Times leaked the balance sheet showing that FTX had $9B+ in liabilities, but only $900M of liquid assets.

• FTX's 30 page bankruptcy filing, showed a severe lack of internal controls, especially surrounding cash management, and potentially more than 1 million creditors.

• Former FTX senior engineer, Yung Dot, released a thread describing how funds were commingled without detection via SBF's "backdoor" system.

• BlockFi filed for bankruptcy after having significant exposure to FTX and loan obligations owed to them by Alameda.

• FTT contract deployers moved the remaining FTT supply worth $600M which was found to be hack that also resulted in suspicious mobile app updates and unexpected requests for access to bank accounts.

• On November 17th, the Securities Commission of The Bahamas released a statement saying that they’re taking control of FTX assets.

Virtual Fashion Wars Heat Up

Nike launched .SWOOSH, a platform to create, trade and display virtual products, in addition to unlocking access to IRL events and products. This is Nike's 2nd Web3 venture after acquiring RTFKT, an NFT project leading the way in fashion and gaming, in December of 2021. The platform is currently in Beta with registration opening this month and the full launch scheduled for 2023, according to their press release.

Adidas introduced virtual gear, their genesis collection of virtual wearables designed for interoperable metaverse experiences. Holders of a virtual wearable and a compatible partner NFT will also be able to "dress up" their NFT with the wearable. See the press release on the Adidas website.

Yuga Labs announced the Punk Legacy Project starting with a donation to ICA Miami during Art Basel on December 2.

Azuki partners with Oracle Red Bull Racing and Bybit to feature Lei the Lightning Azuki as the 1st NFT on the side of an F1 car.

Pudgy Penguins announced a licensing deal with Kelloggs to feature a Penguin on the cover of a cereal box.

X2Y2 will start enforcing royalties after OpenSea released their on-chain royalties filter.

Circle integrated Apple Pay for crypto-native businesses to accept both traditional payments and buying crypto via Apple Pay.

It's been a busy week here at Rug Radio HQ! Here's a few things that we've been up to...

• We hosted a special event with Nike to announce their launch of .SWOOSH

• We announced Uniswap as our media partner for the next month

• We launched our newest show, Rekt Radio, on Thursdays at 2pm EST

• We'll be hosting Givenchy at 3pm EST on Monday to celebrate their collaboration with (b).STROY

• Art Basel is almost here and we'll be there as sponsors for Metaverse Miami and our Project Basel announcement👀

THE LEXLINE VERDICT: Web3 Wins with Carlo⚖️.eth

Everyday, new legal developments in web3 impact how creators, businesses and investors interact. More than ever, there’s a need for high quality discussion of legal issues, from intellectual property to securities law. 

Rug Radio’s LexLine show, hosted by Carlo.eth and Ray@gencolaw, fits that bill and is a must-listen. Every Tuesday through Friday at 12:30 EDT, these hosts, plus attorneys and guests who join the space, engage in lively debate that moves web3 law forward. WagginWendy had the privilege of interviewing Carlo.eth, whose passions range from crypto criminal defense to Italian cooking.