However, there are elephants in the room. NFTs are difficult to use and most of them are digital snake oils. However, these questions create opportunities to provide answers. Both accessibility and legitimacy of NFTs are ripe for change. As money is poured into the space, the market is beginning to mature and the changes are gaining momentum. We are entering a new era of NFTs — NFT 2.0 — technology will be more easily accessible by mainstream, and the underlying value proposition of NFTs will be more transparent and reliable.
Looking back on the rise of NFT
NFTs have exploded into the cryptocurrency scene in a short period of time, with trading volumes in 2021 exceeding $ 17 billion. This number is expected to rise to $ 147 billion by 2026. Even more striking is the fact that this amount is owned by less than 400,000 holders. , This is a total transaction volume of $ 47,000 per user.
Along with the rapid growth of the industry, NFT itself has undergone major changes since its inception. For example, CryptoPunks, which was cast for free in 2017, has risen to the status of a top-tier company, peaking at $ 11.8 million in sales at Sotheby’s last year. A few years later, Larva Labs, the creator of punk, was acquired by Yuga Labs, the parent company of Bored Ape Yacht Club, for a private amount.
Evolution of NFT
Rejected as an epidemic early on, NFTs have shown a tremendous amount of sustainability, attracting the attention of major celebrities and brands, and featured in Super Bowl commercials. Companies such as Budweiser, McDonald’s and Adidas have removed their own collections and Nike has entered the field with the acquisition of RTFKT Studios.
Related: Why are major global brands experimenting with NFTs in the Metaverse?
While the organization decides on the NFT strategy, the overall space reflects the innovations of the last few decades under a significantly accelerated timeline. It took about 10 years for the iPhone to reach its current version, but NFT offers high-fidelity 3D animations and massive, from 8-bit pixelated images and blockchain games like Pong. We have moved to a complex game mechanics with a multiplayer experience. A few years.
While the actual NFTs are evolving, the ecosystem of pick and excavator solutions is also evolving rapidly. The onslaught of NFT minting platforms and tools has dramatically reduced barriers to entry and brought deep market saturation. As of March 2022, there were more NFTs than published websiteCreates a fair amount of noise, which many find difficult to get through.
There are more NFTs in OpenSea than the websites that were on the internet in 1/2010.
Soon, NFTs will be more than websites, and in some cases web pages. This growth will have a major impact on how NFTs are indexed …
— Alex Atallah (@xanderatallah) March 9, 2022
Asset class sustainability and huge transaction volumes have changed the way creators approach space. Many are rushing to Web3 strategies or treating fans as a source of liquidity, leaving behind failures, rug pulls, and abandoned project confusion. Simply put, most businesses and creators aren’t ready to enter Web3 and need more on-hand and white glove services than tools.
Like an email
Ultimately, NFTs appear to be heading in the same direction as email. There was a time in the 1990s when businesses needed to hire professionals to code email. Early adopters have set up a profitable agency to serve Fortune 500 companies and execute their early digital strategies. Information gaps have had a tremendous impact on these institutions until technological advances (and education) make it easier for brands to do it themselves.
Related: Not starting to harness the potential of NFTs
Similarly, we are in an era where brands are now looking for professionals to educate and prepare for the future of Web3, and it’s only a matter of time before the Web3 strategy is managed entirely in-house. NFT onboarding, and cryptography in general, is a fairly complex process that many cannot simply handle. However, some companies are finding ways to abstract the more difficult aspects of cryptography and create a means for deeper engagement with their fans.
Built for mainstream: NFT 2.0
The current iterations of NFTs are not designed for mainstream consumption. Onboarding systems are not smooth for consumers. Volatility is damaging true fans. And it distorts the relationship between the artist and the fan. There are too many discrepancies between the price of NFT stickers and the value they can provide to consumers, and many collections are hit by intense demand shock because they cannot be run on the roadmap.
NFT core buyers are familiar with rug pulls and scams, so they are less likely to create new collections. It’s easy to see the fate by looking at the diminishing volume, but in reality, NFTs are pretty much in order to knock out those who want to get rich and better motivate the true builders in the space. Washout required. When vaporware is wiped out during the bare cycle, vulnerable enterprises that can survive the storm when migrating from Web2 to Web3 thrive. Agencies and platforms are wiped out when they’re out of timing, but preparing for an email-like shift maximizes high-margin, high-touch projects while earning long-tail revenue sources.
This is important whether you’re building in space, a potential user, or an investor. This space grows rapidly and evolves rapidly. Do not blink. If it does not blink, you may miss it.
This article is Mark Peter Davis When Stalin Campbell..
This article does not contain any investment advice or recommendations. All investment and transaction movements carry risks and readers need to do their own research when making decisions.
The views, ideas and opinions expressed here are for the author only and do not necessarily reflect or express the views or opinions of Cointelegraph.
Mark Peter Davis Venture capitalist, serial entrepreneur, writer and community organizer. He is a managing partner of Interplay, the premier venture capital firm based in New York City. He is also an active podcaster and Donation rules Founder of both the Columbia Venture Community and the Duke Venture Community.
Stalin Campbell Is the CEO of Minotaur, a web3 company that serves leading creators and brands in developing NFT projects, decentralized autonomous organizations and tokens. He has spent most of his career focusing on consumer-centric techniques such as Blockchain Capital, Lerer Hippeau, Grisin Robotics and William Morris Endeavor, where he has also developed his talent. Sterling holds a Bachelor of Science degree in Music Industry and Business Administration from the University of Southern California and a Master of Business Administration degree from Columbia Business School.
