Collecting art is fun.
Supporting artists, building your gallery, curating an aesthetic, appreciating art, joining communities are all good reasons to participate in collecting NFTs.
NFTs and digital art took off on Ethereum, but collecting art on the Ethereum mainnet is a luxury good. On the lowest end, you may be paying 0.05 or 0.1 $eth for a piece of artwork plus your gas fee which may be anywhere from $10 - $50 depending on when you buy. Most people are not in a position to collect a large number of art pieces costing hundreds, or thousands of dollars each.
Continuing some thinking about value accrual in web3 from earlier this week (link)
NFTs aren’t the reward. They’re a filter to decide who gets future rewards.
For a company, the equity entitles you to future profits. For an NFT project, holding the genesis collection entitles you to nothing, other than the fact that project teams tend to reward genesis holders as much as possible.
The “profits” or cash flows, in NFT world are airdrops, tokens, and minting opportunities.
Just because a protocol is good, doesn’t mean the native token will go up in price.
Unlike companies who have publicly traded stocks, tokens don’t actually grant holders ownership in the company, or a claim to future profits.
I think there was an early dream in the DeFi world, that the token would be the only form of “equity” and all value would accrue to the token. The protocol would release a governance token that would entitle the holders to voting power in the platform.
The thinking went that when the platform became profitable the token holders could vote a share of the profits to people who staked the governance tokens in the protocol. We saw projects like Sushi Swap implement this kind of staking and pay out a 0.05% of all swap volume to the stakers.
Web3, blockchain, crypto whatever you want to call it, has a lot of potential.
Right now the space is rife with speculation and hype. I’m much more interested in the long term benefits this could have in democratizing financial services, and giving people the ability to own digital items.
That has been the promise of crypto for years, and it slowly advances year after year. The problem is that there’s so much more money to be made in selling metaverse land than there is in banking the unbanked.
The hyper-capitalist aspects of crypto have attracted the most money-loving people in society. Traders, venture capitalists, hedge funds are all sophisticated market participants that now have more influence than ever.
Most NFT trading happens on OpenSea. But they are not universally loved in the NFT community.
OpenSea’s customer service is slow, and at times completely absent. Collections would get de-listed with little reason. Other collections would take months to become verified, while some would launch with verification on day one. There were insider trading allegations of OpenSea employees buying NFTs before they were featured prominently on their marketplace.
When OpenSea went down, NFT volumes would plummet. And the site would go down a lot.
People had lots of complaints about OpenSea, and to add fuel to the fire, OpenSea is a centralized company. They raised money from venture capitalists. And they didn’t launch a token or a DAO to reward early users.
As NFTs became more popular, many artists aspire to launch their own projects, minting their art as a non fungible token on a blockchain. The obvious benefit is the opportunity to sell your work and open up your art to new collectors anywhere in the world. While there is tremendous potential, there is a lot of work that happens behind the scenes to make a project successful.
As a long time supporter of Tawan Zher’s project, Manekirei, I think his story provides a great model for aspiring NFT artists.
Tawan Zher and the Manekirei Collection
We’ve known Mutant Kaijus are coming for a long time, but the details of the drop have been unclear.
So when we got a cryptic message like this, the Kaiju Kingz server lit up.
A wild journey began of people playing out this story line. People put on their uniforms, started to blend in and contribute to the research happening in the lab.
The Acaduhmii is an initiative from the Duhverse to onboard new people to web3. A small group of people apply to participate in a one week program and they receive a free Lamb Duhs NFT upon completion of the program.
The most meaningful onboarding experiences are person to person. It could be a family member who helps you set up a wallet, or helps you grasp NFTs, or a friend who sends you your first crypto asset.
There are so many great videos and articles meant to help people get into web3, but when you’re brand new, it’s helpful to have people to talk to.
When we thought about education and onboarding for the Duhverse, we wanted to build an experience for people who were brand new to web3. A Lamb Duh is many people’s first NFT because of it’s accessible price point and cute art style.
Over Christmas I was in my Dad’s house where I know a bunch of my old Pokemon cards still lived.
My brothers and I went on a mission to find out what we still had and understand the value of our collection.
We’d heard all the buzz about old Pokemon cards being worth hundreds or thousands of dollars, but we quickly realized we weren’t going to find a five figure stash.
For starters, it seemed like many of the cards I thought I had were missing and the ones we did have were in pretty rough shape.
NFTs are a promise.
One reason why Gary Vee’s collection has been so successful is because he thinks of his NFTs like buying his IPO. He promises to drive a ton of value to the holders, and he’s done that extraordinarily well so far.
But just because someone launches an NFT doesn’t mean you’re buying the equivalent of stock in that person.
I fell into this trap early on after hearing that an artist with 1M followers on Instagram was launching a collection of just 160 pieces. People started buying, and luckily I got one for 0.1 eth. The floor quickly shot up to 0.5 eth, but then people started to panic, undercutting the floor to 0.05 and now there hasn’t been a sale for 3 months.