Read on Twitter
1/ For anyone stumbling upon the NFT space, wanting to know WTF is going on - here’s a high level summary
2/ First, some terms:
NFT = non-fungible tokens = unique digital items
Encompasses any digital media: art, collectibles, gaming, music + more
NFTs enable platformless digital asset ownership
NFT = non-fungible tokens = unique digital items
Encompasses any digital media: art, collectibles, gaming, music + more
NFTs enable platformless digital asset ownership
3 / Value prop
Users...own assets, with skin in the game
Creators... are aligned with favorable economics
Assets...are programmable
individuals > platforms
Users...own assets, with skin in the game
Creators... are aligned with favorable economics
Assets...are programmable
individuals > platforms
4 / Market growth
$200M+ in Volumes
1M NFT Sales
1M Addresses Holding NFTs
Major recent wallet activity
$200M+ in Volumes
1M NFT Sales
1M Addresses Holding NFTs
Major recent wallet activity
5 / Creator monetization models
- Secondary NFT sale commission ( @ourZORA @mintable_app)
- Prefunded projects ( @viamirror crowdfunded essay)
- Community-owned marketplaces ( @rariblecom)
- Programmable access to communities ( @JammSession_)
Many more on the horizon
- Secondary NFT sale commission ( @ourZORA @mintable_app)
- Prefunded projects ( @viamirror crowdfunded essay)
- Community-owned marketplaces ( @rariblecom)
- Programmable access to communities ( @JammSession_)
Many more on the horizon
6 / Infrastructure build-out
Even though we've been discussing NFTs for 3+ years, infra is early
Stack includes:
Aggregators + Curation
Identity
Wallets
Price Discovery / Secondary Liquidity
Token Management
NFT Marketplaces
Creator Tools
Storage
Issuance Protocols
Even though we've been discussing NFTs for 3+ years, infra is early
Stack includes:
Aggregators + Curation
Identity
Wallets
Price Discovery / Secondary Liquidity
Token Management
NFT Marketplaces
Creator Tools
Storage
Issuance Protocols
7/ Vertical specialization
Platforms are doubling down on categories...
@dapperlabs - Collectibles @nba_topshot
@withFND / @SuperRare - art
@AxieInfinity - gaming
@ARterraPlatform - esports
...to build competitive moats and nuanced product offerings
Platforms are doubling down on categories...
@dapperlabs - Collectibles @nba_topshot
@withFND / @SuperRare - art
@AxieInfinity - gaming
@ARterraPlatform - esports
...to build competitive moats and nuanced product offerings
8 / Gas fees edge out users
Current gas environment poses challenges for onboarding new users
L2 solutions in 2021 will help
Current gas environment poses challenges for onboarding new users
L2 solutions in 2021 will help
9 / Asset inflation + price discovery
Price discovery is tough. Projects experimented with bonding curves, auction mechanisms and open market sales.
New solutions like @upshot offer alternative discovery mechanisms
More here: https://blog.coinfund.io/appraisal-games-and-the-nft-liquidity-problem-904afe6bc7af?source=rss-2584d192c956------2
Price discovery is tough. Projects experimented with bonding curves, auction mechanisms and open market sales.
New solutions like @upshot offer alternative discovery mechanisms
More here: https://blog.coinfund.io/appraisal-games-and-the-nft-liquidity-problem-904afe6bc7af?source=rss-2584d192c956------2
10 / Shifting into mainstream
NFTs are inherently social and consumer-facing
We've seen record sales in the past few months as well as an increase in mainstream support
@beeple @PostMalone @mcuban @MeekMill @RAC @3LAU @chamath
NFTs are inherently social and consumer-facing
We've seen record sales in the past few months as well as an increase in mainstream support
@beeple @PostMalone @mcuban @MeekMill @RAC @3LAU @chamath
11 / Skeptics question market prices + ulility
Digital stores of value are a highly subjective category - both from a valuation POV and credibility
Creation costs are (relatively) low w/ diminishing barriers to entry
Standards aren't mature, resulting in fractionalized market
Digital stores of value are a highly subjective category - both from a valuation POV and credibility
Creation costs are (relatively) low w/ diminishing barriers to entry
Standards aren't mature, resulting in fractionalized market
12 / Lots more to unpack
Some of my fave resources to stay up to date:
@forefront__ @zima_red @nonfungibles @viamirror https://metaversal.banklesshq.com/
Some of my fave resources to stay up to date:
@forefront__ @zima_red @nonfungibles @viamirror https://metaversal.banklesshq.com/
13 / Will continue to share interesting NFT trends & deep dives. Let me know what I'm missing!
