The market for non-fungible tokens (NFT, for its acronym in English) is growing. According to a new report from analytics platform DappRadar, NFT’s trading volume overcame the 10 billion dollars during the third quarter of 2021, multiplying by seven the figure of the previous quarter. While a significant portion of that action comes from smash hits like NBA Top Shot, CryptoPunks, and the Axie Infinity gaming platform, NFT use cases are proliferating rapidly as creators recognize its potential.
In the not-too-distant past, celebrities who wanted to profit from the burgeoning crypto scene had few options.. In most cases, they were limited to promoting an initial coin offering (ICO) or investing their own money in a startup they found promising. However, thanks to the NFTs, Now they can harness their appeal as stars by releasing coveted digital collectibles that represent, well, just about anything: artwork, albums, business cards, or specialty items. In turn, these collectibles can be traded on the open market between fans and investors..
The music industry is a perfect testing ground for NFTs
From musicians and athletes to actors and supermodels, prominent celebrities are busy minting and auctioning a dizzying array of blockchain-based assets and commodities that draw the digital crowd. Through NFTs, public figures can connect with their fans in a digital arena and open a new source of income.
Earlier this year, the Canadian musician Grimes sold nearly $ 6 million in NFT that included works of art and audiovisual animations. While some tokens were unique, other cheaper items had thousands of copiess. Although this fact appears to contradict the concept of NFT – isn’t each NFT supposed to be demonstrably unique? – the “duplicates” in question raised more than $ 5 million.
Dropping NFTs tomorrow at 2pm EST. enter the void pic.twitter.com/l9fNFUCheX
– Grimes ᚷᚱᛁᛗᛖᛋ (@Grimezsz) February 28, 2021
NFT launch tomorrow at 2pm EST. “Enter the void”
Perhaps not surprising that Musicians are increasingly taking advantage of NFTs to supplement their income: The shift towards streaming in the last decade has shocked massively in the earning power of the artists. The global COVID-19 pandemic also hit the industry hard as many musicians relied on live performances for income. Artists who have joined Grimes on the NFTs include Snoop Dogg, Eminem, Jay-Z, Shakira, Lewis Capaldi, Steve Aoki, Shawn Mendes, Kings of Leon, Soulja Boy, and Aphex Twin.
Of all the names mentioned, Kings of Leon was perhaps the one that impacted the most when tokenizing your new album, When You See Yourself, and raised 2 million dollars in the procesor. Interestingly, the launch included a half-dozen Golden Ticket auctions, which entitle you to front row seats to one show on each Kings of Leon tour for life. For their part, the album tokens, which were priced at $ 50, included a limited-edition vinyl.
We are proud to support the expected Katy Perry’s NFT launch in December, which celebrates its next “Play” residency at the Resorts World Las Vegas hotel. Katy is one of the world’s best-selling artists, with her six albums topping one billion streams on Spotify. Curiously, NFTs will include both digital collectibles and IRL experiences, so there will be something for everyone.
Creativity is at the core of these companies, and New NFT use cases are constantly emerging. For instance, the rust marketl, powered by blockchain, allows users to buy shares of songs they like and earn royalties as those same songs rise to popularity. The artists, for their part, retain most of the rights to their work and access direct funding from their largest followers. According to Royal, it is a system “in which artists and fans can mutually benefit without depending on intermediaries to take most of the benefits”. A nice idea, no doubt, and one wonders what the heads of record labels think of it.
From TopShot to Topps
Music may be the biggest driver of NFTs, but sports stars are also embracing NFTs.
Of course, we cannot talk about the intersection between blockchain and sport without referring to NBA Top Shot, the basketball card trading game that has turned its creator Dapper Labs into a multimillion dollar company. Top shot offers NBA fans the opportunity to buy, sell and trade videos of officially licensed iconic moments, like Lebron’s two-handed dunk against the Houston Rockets last February (the price lower is $ 219,000). So that it is not believed that the trade is concentrated in a nucleus of fanatics, Top Shot has facilitated more than 13 million transactions and has incorporated more than one million users.
Needless to say this formula is being replicated in other sports, such as baseball (Topps MLB), football (Sorare, Partners) and motor racing (F1 Delta Time). ONE Championship, Asia’s largest mixed martial arts (MMA) promoter, also recently announced that it will launch a marketplace on the Theta blockchain featuring NFTs that offer exclusive access to real-world benefits such as backstage passes, front row seats, and more. personalized experiences for fans. Athletes are also mobilizing their individual fan bases through special NFT releases., with heavyweight champion Tyson Fury selling a one-of-a-kind token for just under a million dollars. The buyer also received a physical painting of the artwork, signed boxing gloves, and a personal video of the self-proclaimed Gypsy King.
It is natural to wonder where we go from here. Will the NFT bubble burst, leaving fans and investors with tons of digital collectibles? Or will we see more creative use cases emerge, where NFTs will give fans all sorts of nifty perks?
This article does not contain investment advice or recommendations. All investing and trading involves risk, and readers should do their own research when making a decision.
The views, thoughts and opinions expressed here are solely those of the author and do not necessarily reflect or represent the views and opinions of Cointelegraph.
Mitch Liu is the Co-Founder and CEO of Theta Labs. In 2010, Liu co-founded Gameview Studios, one of the first free phone game studios, best known for its Tap Fish game franchise, with nearly 100 million downloads. The company was acquired by DeNA, one of Japan’s leading phone game companies, six months after its launch. Before that, he co-founded Tapjoy, a pioneer in phone video advertising, in 2007 and grew it to $ 100 million in revenue. He has a degree in Computer Science and Engineering from MIT and an MBA from the Stanford Graduate School of Business.
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Celebrities are embracing NFTs in a big way