Executive Summary

<aside> ⛱️ Market

• Market dynamics are stable overall, with previous trends continuing (EVM increasing, Tezos being stable)
• Foundation is shutting down, Moshi and Rodeo are trying to reinvent social. Lots of moving pieces within the broader ecosystem showcasing whole space is struggling. Only way out of this is through innovation.
  • Collectors feel irked about recent moves, tough environment for all platforms to communicate
• Institutions continue to lean into Generative Art, especially in US, but also Europe. Museums are showcasing Generative Art and bringing it into the mainstream art world.
  • Museum ULM is including GM.GEN.MATH into their show, will be on display for whole year

Realigned Product Goals / Targets

• By the time you will read this Report, we are doing last internal tests on V2 of fxhash and will release it in the next week
• Afterwards, we’ll reassess what needs to be done, but will mostly spend time rebuilding params/redeemables, as well as leaning into what is working (ease of onboarding through new tooling within evm space)

Strategic outlook

• We are seeing good growth, especially within Collectors trying and staying within Base.
  • Artists are still using Tezos, but sales are declining ⇒ Most of the up and coming artists of 2024 are releasing on Base
• Data showcasing above mentioned trajectory

General Sentiment

• The Art Market is notoriously hard to navigate, and we are continuing to see this in times of economic uncertainty
• We are really excited about our upcoming show at Paris Photo, important moment for us to assess art world collector feeling </aside>

🚀 Highlights

<aside> ⚡ Base growing / Onchain Summer

• Today, upwards of 70% of all new collections are launched on fxhash’s Base integration

• We’re seeing exceptional growth on Base. The chart below shows unique wallet interactions:

  

A variety of great exhibits and showcases of fxhash

• FWB DOM2 Exhibit - 3 Minute Video
• Gretchen Andrew - Facetune Portraits @ Berlin Art Week
• Responsive Dreams Festival in Barcelona
• fxhash artworks at Paris 2024 closing ceremony

Entangled Exhibit

• Event Recap
• Newsletter going into Detail of the exhibit
• Received very interesting inbound as result from the exhibition

Releasing Newsletter / Hiring Gorillasun

• Newsletter has started, starting to reengage with community, increase communication and showcase what we are building </aside>

Business Updates

Key Metrics Q3

<aside> ⛱️ Platform YTD

Tezos continues to loose marketshare across fxhash, EVM and especially Base are showcasing growth. onchain summer as additional driver for GMV growth.

Looking forward

• Redesigned Platform will finally launch, bringing in a new era for fxhash
• Token to be launched, final design and scope are done

Expenses

Higher Event expenses due to attention maximising events, such as Entangled, DOM2 and Berlin Art Week, payroll continues to decline and will decline even further in Q4.

Q324

Outlook

Runway

Burn: 150k p/m Runway with revenue (Token / Grant): 24 months Runway without revenue: 11.5 months

Generative Art Market continues to be a slaughter house, revenues are stable but bad. Actively looking into alternative way of funding to secure legacy of fxhash and Generative Art. Token as a enticing new proposition that can/will increase runway

Fundraising / Increasing Runway

• Increasing runway is prio1 for Paul, working on it simultaneously while creative team is pushing exciting new avenues and engineering is completing overhaul of platform
• Token + Grant is most likely avenue for prolonging runway and fxhash legacy

Platform stats (Daily Active Users)

Hovering stable at around 20k users per day

</aside>

Dev

<aside> 🛠️ Dev

• website v2: with project creation in the testing phase we have completed the bulk of the revamp, all systems go on getting the final tasks over the line in October!
• tech debt drive complete: with simplified architecture we have been able to ship multiple backend fixes and improvements over the last couple of months without any downtime or major issues
• fxhash sdk (integration package): we have now integrated the sdk into website v2 for contract operations - once we publish the package, anyone can build a custom frontend or integrate fxhash contract calls into their third party applications
• fiat conversion rate indexing: we are storing conversion rates for all historic currency related events on fxhash (with 1 hour of precision) - this enables fiat prices to be shown everywhere on website v2 and also fiat reporting in the analytics module
• evm secondary syncing improvements: implemented vast improvements to our reservoir syncing module to ensure that there are never stale or non-buyable listings shown on fxhash (with the added benefit of improved market stats accuracy) </aside>

In Q4 of 2024, we expect to:

<aside> 🥅 Q4

• Reshipping of platform features ‣
• Prepare to launch Token
• Launch new website
• Art fairs in the traditional art world → bridging gap between generative art & fine art
• Making the case for code-based art (vs. AI art, especially)

While still pursuing

1. Restore the potential of buying the next grail
2. Deeper exploration of potential for redeemables
3. Preparing for the next bull cycle
4. Find a sustainable source of income/work towards a way of becoming self-sufficient
5. Leveling up internally with a clear, united team vision </aside>