As 2021 nears the end, one of the biggest stories of the year was the surge in non-fungible tokens (NFTs), a fever that Asia has no immunity.
From Bollywood’s Salman Khan and Amitabh Bachchan to K-POP supergroup BTS and Black Pink to Japanese cultural icons, Hello Kitty and Astroboy announce the launch and partnership of NFT, movie posters, video clips and digital. We provide goods such as art. Hong Kong Otter Wong Kar-wai has launched an NFT auction through Sotheby’s. Flower-like year flowerRaised about $ 550,000.
“People can’t travel. They use Zoom on a daily basis and are used to enjoying their second life online,” said Duncan Wong, founder of Hong Kong-based blockchain technology provider CryptoBLK. Says.
NFTs are tokens issued by blockchains (mainly Ethereum blockchains) that confirm ownership of unique digital assets, such as cryptocurrency tokens (such as Bitcoin and Ether) and security tokens (meaning ownership of shares). Is different. As a result, they are less scrutinized by regulators around the world, but given the rapid growth of the market, everything can change given that they can be traded for profits. According to DappRadar’s 2021 industry report, NFT trading volumes for the year were set to exceed $ 23 billion.
After igniting the world of art, NFT moved into the game. Some reports state that the Philippines is the country with the most NFT owners in the world. This is primarily due to enthusiasts around the “Play to Earn” video game Axie Infinity. China, which has already banned cryptocurrency mining and trading and cracked down on its enthusiastic gaming, e-commerce and social media giants this year, is, of course, less positive about the epidemic. not.
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Now it’s the turn of the media and content industry.U.S. studios such as Disney, Lionsgate, and Warner Bros. are all on the move, the latter being inspired by NFTs. matrix Filmmakers such as Quentin Tarantino, famous for the franchise and the copyright dispute with Miramax pulp Fiction NFT. Numerous NFT-powered companies were also launched in 2021, including Fox Entertainment’s Blockchain Creative Labs. An NFT studio founded by Martin Scorsese’s regular producer Niels Juul. A decentralized photo founded by Roman Coppola, tech veteran Leo Machete, and American Zoetrope executive Michael Musante.
In Asia, we’ve focused on NFT’s most obvious uses of merchandise and collectibles, but in Hong Kong, other companies such as CryptoBLK, Marvion, Coinllectibles, and recently acquired production clothing Phoenix Waters Productions by Coinllectibles. I am considering a company. How to integrate technology with the world of cinema and television.
Bizhan Tong, founder of Phoenix Waters, says he was interested in NFTs when studying pandemic thrillers. Blockade.. “”[NFTs] Build a deeper relationship between creators and their fan base. When it comes to engagement, there’s much more you can do with NFTs. “
Tong has partnered with Marvion to release five limited edition “Hybrid NFTs” for theatrical cuts. BlockadeAlready sold out at NFT to attend the theater premiere of the movie in the UK and Hong Kong, along with a variety of digital products.He is currently filming a crime series Forensic psychologist, Was recently acquired by Endeavor Content for global distribution offering cameo appearances packaged as NFTs.
Julian So, co-founder of technology companies Marvion and Coinllectibles, describes his company’s “hybrid” or “fusion” NFTs as a combination of virtual-world intangible assets backed by real-world licenses or copyright agreements. I am. “Everyone talks about how NFTs are smart contracts, but smart contracts aren’t legally binding. All they do is make payments easier,” said So, a professional lawyer. Says. “Our Fusion NFT contains a document created on the blockchain that specifies exactly what kind of rights you have.”
Phoenix Waters is also partnering with Duncan Wong’s CryptoBLK in a drama series. Cryptographic keeper, Provides NFTs that allow owners to vote for stories in the second season. “The second step is to provide the NFT with some kind of intellectual property rights, such as making short clips or hosting one of the characters on social media or the Metaverse,” Trade said. Wong, a cryptographer who started by relocating financial and insurance companies, says. For blockchain.
All this activity creates additional sources of revenue, but the situation is more complicated when it comes to blockchain, which is the equivalent of straight-up investment or equity crowdfunding. Wong explains that it is important that the tokens issued fall into the category of NFTs or utility tokens (which enable activities such as voting). This is the agency that regulates securities when tokens begin to look like stocks or security tokens.
“Show fans can buy NFTs to vote and sell more, which increases the value of the NFTs and gives them more incentives for the show to succeed.”
Wong also believes that utility tokens have other uses, such as supercharge subscriptions to streaming services, that can provide access to digital products and events, in addition to the distribution of movies and series. “Netflix has the potential to come up with a Metaverse live show for key talent and sell tickets as an NFT.”
Meanwhile, according to Tong, the technology could open up creative opportunities to trade film designs and artwork as NFTs, offering value beyond the initial payments. “Not only when the movie is made, you are still compensated for your work 10 years later.”
This all sounds exciting, but there are many problems faced before this technology becomes mainstream.Most NFTs are traded with cryptocurrencies on specialized exchanges such as OpenSea, Axie, and Rarible, which means that they have a specific audience. matrix It may be a franchise, but the audience for older cinephilia is not very large. “We’ve had a lot of calls from indie filmmakers, but this doesn’t help everyone,” says So.
Second, there are regulatory issues. Most governments are still sniffing the NFT phenomenon and don’t know how to deal with it, but as with cryptocurrencies, there is growing concern about money laundering and naive investors. China hasn’t specifically banned NFTs, but a recent editorial of the People’s Daily described NFTs as “a zero-sum game hyped by crypto investors and capital,” followed by Tencent and Ant Financial. Changed the name of the offer from NFT to “Digital Collectibles”.
For 2022, you’ll be relieved to know that this isn’t just a new way to sell products or crowdfunding, it could really be a game changer for the content industry. But it’s too early to tell. Blockchain technology has been welcomed as a savior in many other parts of the business (sales reporting, collection, manufacturing cost reductions), but so far nothing has been achieved in a critical way. The difference with NFTs is probably that trading volume and fan engagement indicators are a compelling argument. Over time, we’ll see if this is the killer app that will ultimately drive blockchain adoption in the industry.