A creators metaverse through NFTs
For those of us still fascinated about the opportunities crypto and web3 brings for everyone cos I believe we all create one thing or another, we just have to knw what it is. This is even as I still struggle to reconcile its privacy/algorithm/ data collection issue with its positive aspects, there has been almost daily announcements of major brands and companies moving swiftly into the NFT space trying to take advantage of this evolving trend.
According to Animoca Brands CEO, Robby Wright;
“We believe that in the battle between content and distribution, content is king, In the world of Web3, content will win out over distribution because we will see content itself becoming the platform.”
Watch this video featuring Gary Vee if you doubt the new creator trend coming to our doorstep;
Affirming my point with this quote from Kevin Kelly in his 1000 True Fans essay about the internet transformation;
To be a successful creator you don’t need millions. You don’t need millions of dollars or millions of customers, millions of clients or millions of fans. To make a living as a craftsperson, photographer, musician, designer, author, animator, app maker, entrepreneur, or inventor you need only thousands of true fans. A true fan is defined as a fan that will buy anything you produce.
The NFT is another phase of the evolution of the internet, with fans gravitating to the space and the control web3 gives to its creators. There are three ways NFTs offer a better economics for its creators and users according to Simon Dixon of a16z;
The first is by removing rent-seeking intermediaries. The logic of blockchains is once you purchase an NFT it is yours to fully control, just like when you buy books or sneakers in the real world. There are and will continue to be NFT platforms and marketplaces, but they will be constrained in what they can charge because blockchain-based ownership shifts the power back to creators and users — you can shop around and force the marketplace to earn its fees.
The second way NFTs change creator economics is by enabling granular price tiering. In ad-based models, revenue is generated more or less uniformly regardless of the fan’s enthusiasm level.
The third and most important way NFTs change creator economics is by making users owners, thereby reducing customer acquisition costs to near zero. Open any tech S-1 filing and you’ll see massive user/customer acquisition costs, usually going to online ads or sales staff. Crypto, by contrast, has grown to over a trillion dollars in aggregate market capitalization with almost no marketing spend. Bitcoin and Ethereum don’t have organizations behind them let alone marketing budgets, yet are used, owned, and loved by tens of millions of people.
NFTs is the latest buzz in mainstream media with various company allocating resources to develop their own and get in on maintaining their customer base as;
Walmart announced plans to venture into the metaverse with plans to create its own cryptocurrency and collection of NFTs. The big-box retailer filed several new trademarks late last month that indicate its intent to make and sell virtual goods.
Twitter is introducing a new feature that will allow users to show off their NFTs, or non-fungible tokens.
According to the Financial Times; Facebook and Instagram are “readying” a feature that will let users display NFTs as their profile pictures, as well as working on a prototype to let users mint new NFTs. Others at Meta are reportedly discussing “launching a marketplace for users to buy and sell NFTs.”
Looking at the volume of sales in the NFT space, there has been over $300M in the last 30 days:
It’s been able to grow with an exponential curve as users feel like owners and they also have a role to play. It’s true peer-to-peer marketing, fueled by community, excitement, and ownership.
We are early in this movement and I believe there are so many opportunities for creators to maximize with NFTs.
*Shameless plug incoming: This is what JUJU NFT represents to us. “Preserving our culture not cancelling it.”
See you tomorrow!
- Ope