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The NFT Bubble Has Popped, But Creator Value Is Only Heating Up – Rolling Stone

The NFT Bubble Has Popped, But Creator Value Is Only Heating Up – Rolling Stone

Start The NFT craze was primarily fueled by the new discovery that digital assets can be scarce. The very idea that digital art could be collected and valued led early adopters to bet big in the hope of even bigger profits. At the time, CryptoPunks, a collection of unique pixelated punk rock heads, and CryptoKitties, a series of digital cats with rare traits, were selling for $170,000 each.

People were buying NFTs based on speculation, but like any market, if there is no real utility, it will collapse, and it has happened – hard. NFT trading volume plummeted from a peak of $17 billion this January to $466 million in September – a 97% drop. The fall, of course, came in the context of post-pandemic inflation and rising interest rates, the same macroeconomic factors that have also hit equities and cryptocurrencies.

Although the hype cycle has dried up, creators, investors, and brands continue to invest in NFTs. For creators, it all comes down to matching their own incentives with those of their fans. Here are three ways NFTs can unlock real value for creators in 2023 and beyond.

NFTs let fans share proof of loyalty

It has always been exciting to discover an artist or be one of their first fans to show loyalty, but with NFT, proof of discovery and attendance is now a commodity. On platforms like Sound.xyz, musicians can submit their music as an NFT set, and fans can purchase song NFT grants to prove they were early supporters.

Similarly, Ticketmaster is partnering with Dapper Labs to experiment with NFT tickets. This gives fans proof of presence—the modern equivalent of saving ticket stubs. And thanks to social media companies like Meta, which recently announced that featured creators will be able to sell NFTs directly on Instagram, creators and fans now have the ability to showcase and sell their collections.

For musicians, NFTs add value to music by reminiscent of the era of physical vinyl or CDs that has been dissolved in the turn towards digital streaming. Only this time, the profits go directly to the artists, who can secure ownership of the NFT when it is minted – this allows artists to continue to receive perpetual compensation after the sale of the NFT.

NFTs Open New Paths to Independence for Artists

NFT ownership can go even further in rewarding fan loyalty – fans who invest in an artist’s NFT can be rewarded with exclusive perks such as access to tokenized communities where they can engage in behind-the-scenes dialogue with artists (virtual backstage pass) or previews new songs and covers. This ability to directly monetize the artist-fan relationship opens up new opportunities for creators to gain independence beyond labels, studios and middle managers.

The Rolling Stone Cultural Council is an invitation-only community of influencers, innovators and creatives. Am I eligible?

While established artists are making waves with NFTs – from Kings of Leon to Steve Aoki – independent artists are also making headway with NFTs. For example, according to Cointelegraph, independent artist Young & Sick sold NFT for $865,000 despite only having 27,000 subscribers at the time.

Generation Z and millennials make up 94% of cryptocurrency buyers and are more likely to keep their money in digital assets, according to Stilt’s findings. I expect that as this data-conscious generation matures, we will see more artists and fans building a decentralized economy on Web3.

NFTs provide gamers with new financial rewards

When we think of creators, we often think of social media artists or musicians, but games make up one of the biggest verticals in the creator economy. As of 2021, there are 2.7 billion players worldwide and 404 million subscribers following the top 10 YouTube players.

On Twitch, a popular streaming platform for gamers, 2 billion hours of game video were streamed on that platform alone during the pandemic. With so many eyes watching gamers as they play, they have generally been able to monetize their craft through traditional paid sponsorships, product placement, and advertising.

In trend

Despite the decline in the number of active users of metaverses such as Decentraland and Sandbox, we are seeing the emergence of a new type of gaming revenue. Unlike Minecraft and Roblox, which have in-game currencies that allow players to access features, Web3 games allow players to access NFTs that can be bought, sold, and traded on the blockchain. This creates an economy that can benefit the player outside of the game. We see how Bored Ape Yacht Club, which launched one of the largest collections of NFTs in the world, is making big bets in the gaming space by creating its own Otherside metaverse gaming platform.

The novelty and speculation created an initial hype around NFTs, but the potential of this “networked” technology to create value for both creators and their fans is still largely untapped. As the brightest minds of major brands, from Disney to Starbucks, signal investment in NFT technology, I predict we will see a return of the NFT hype—only this time, I expect NFTs to be more than just a speculative asset.

Written by khirou

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