NFTs Go Mainstream
...Again! Top resources for your NFT education.
Top Resources this Month
NFTs and 1000 true fans (a16z, Chris Dixon): Chris highlights the three key economic benefits that NFTs provide creators: 1. removing rent-seeking intermediaries (like ad-based platforms). 2. enabling granular price tiering (your most passionate fans can pay for exclusive, more costly items). 3. making fans owners, reducing customer acquisition costs to near zero (as fans have skin in the game, and an incentive to spread the word)
Guide to NFTs for Creators (Peter Yang): Peter provides step by step instructions on how a creator can create an NFT for their content, and why they should consider it. In Peter's words: "The bottom line is: In the creator economy, most of the value should go to the creator and the fans, not the platforms. NFTs and crypto will make this a reality."
NFT Breakdown (Colin & Samir): On their creator-economy focused Youtube channel, Colin and Samir break down the concept of using NFTs as an entrance into a membership of superfans for a creator.
NFTs make the Internet Ownable (Jesse Walden): Jesse talks about the future of the NFT adoption cycle and the value in owning digital art
NFT Bible (OpenSea): A very comprehensive guide on everything you need to know about NFTs.
NFTs are a Dangerous Trap (Seth Godin): Seth warns how he thinks creator and buyers get hooked in a cycle, with everyone paying the lifetime of costs associated with an unregulated system that consumes energy to create scarce digital tokens.
NFT Deep-Dive
What is an NFT?
As Peter described in his guide to NFTs for creators:
A non-fungible token is a record that shows who owns a unique piece of content. Creators produce unique content such as images, videos, songs, and essays. An NFT is a record that says: "Jenny owns the rights to this song (URL to song). She purchased it from Taylor (the original creator) on 12/31/2020 for $30,000."
Why are NFTs better for artists?
Since NFTs can always be traced back to the original creator through the blockchain, no one can "forge" a creation. There will always be a way to detect the original.
In addition, there's an option that allows a % of the returns to come back to the creator every time the NFT is sold.
Why are NFTs great for fans?
Fans get to share in the success of the creator. They signal their "super-super-fandom" through the ownership of content that the creator created while still paying tribute to the creator.
They're incentivized to grow and support the artist to up the value of the NFT, much like a traditional art piece or collectible.
There are also additional perks depending on the creator. For example, some creators will allow their NFT owners to be a part of an exclusive community or a regular stream of benefits from the creator.
Why the craze now not before?
The intersection of the 3Cs paints a story for why the NFT hype was bound to happen.
Crypto's hype and maturity makes it possible to even mint NFTs.
COVID-19 drove artists to find online solutions to continue creating and getting value from their art, when typically, they would have had "offline versions of NFTs" (collectibles, physical art).
The creator economy is booming, now more than ever.
Which creators are using NFTs?
We are still in the very early innings of Creators using NFTs. We're excited to see how creators utilize this technology to create a unique experience for fans, especially because NFTs can have custom code attached to allow for any perks. Below are a few prominent examples of how creators are using NFTs:
Justin Kan (co-founder of Twitch) has turned all of his Youtube videos into NFTs. By buying one of his NFTs, you can join a "shareholder call" with Justin to provide feedback on his videos. He's also using NFTs as a lottery system, giving away $10,000 of Bitcoin to one of his fans who bids on his NFTs
Logan Paul sold over $5M worth of NFTs for his own branded trading cards (that look very similar to Pokemon Cards). Similar to Justin, Logan also used a lottery system to incentivize fans to buy the NFT, giving away 1st Edition Pokemon Card Packs (worth ~$40K) to 3 of his buyers
EDM artist 3LAU sold a record-breaking $3.6M NFT of his latest album. His NFT broke the record in NFT sales with over $11 million in total bids. The winning bidder also won a custom song by 3LAU, as well as access to unreleased music and a bonus physical vinyl. NFTs have been crucial for music producers seeking ways to recoup revenues lost from touring during COVID.
Who's talking about NFTs?
NFT thought leaders you should follow on Twitter.
Jen (@BackseatVC): working on underrated takes on the creator/passion economy (join the discord!) and @justinkan's youtube/tiktok/nfts. trying to build credibility without a bio
James Young (@jamesyoung): Prev Zynga (FarmVille), AdToken, Spankchain, Moloch, MetaCartel. Now building crypto community tools : https://Collab.Land
Jess Sloss (@thattallguy): Crypto strategy for creators. Instigator @seedclubhq the social token incubator. Contributor @themintfund + @forefront__. Squiggle aficionado @squiggledao
Creator x Crypto
Finally, here are a couple platforms that combine creators and crypto, including NFTs.
Cryptokitties was the first fad in the crypto world (circa 2017). Buy a kitty that's based on the Ethereum blockchain.
Rarible is the first community-owned NFT marketplace, where you can create, sell or collect your own NFTs.
OpenSea is a marketplace where you can create, sell or collect NFTs.
SuperRare is a marketplace that vets the artists who mint their own high-quality NFTs.
Foundation is a marketplace where you can create and participate in auctions on NFTs for high-quality digital art.
NBA Top Shot is an online company launched by Vancouver-based blockchain company Dapper Labs, and backed by the NBA, that allows users to procure a collection of digital basketball highlights, and then show off that collection to others
CryptoSlam organizes millions of blockchain collectibles.
CryptoKicks are Nike's patented blockchain-compatible sneakers.
Nifty Gateway is a premier marketplace that regular hosts "drops" for "Nifties"
Mirror is publishing platform revolutionizes the way we express, share and monetize our thoughts, and makes you a co-owner of the platform.
Buy & Sell Tweets! Whoever thought we'd get to this point. Check out the first ever tweet on Twitter.
Cryptopunks are 10,000 unique collectible characters with proof of ownership stored on the Ethereum blockchain.
Have any ideas on what we should cover next? Do you have any other examples of creators using NFTs in interesting ways? Let us know in the comments or by reply to this email.
With creator love,
Zack & Mika
P.S. Thank you to Jen (@BackseatVC) for sharing resources! Give her a follow.