There is also promise for NFTs to create new kinds of relationships between entertainers and fans, particularly in the world of music. Catalog, for example, lets artists sell unique tracks directly to fans in the form of Wav NFTs. This lets fans directly support their favorite artists by purchasing their music directly from the source. Imagine purchasing a limited edition Taylor Swift song before she got famous.
NFTs can also create deeper relationships between fans and creators by conveying rights to exclusive experiences. For example, fans who purchased The Disclosure Face automatically received 4 tickets to any Disclosure show worldwide. On top of that, the purchasers became friends with the artist and Disclosure now regularly performs at their events.
Just as with music, the world of sports and NFTs are also colliding. NBA TopShots, which turns NBA moments (i.e. a Lebron James dunk) into digital trading cards, is already among the top grossing NFT collections. The company behind TopShots also just announced plans to expand into the NFL. Sorare, which just raised a mammoth $680m Series B, has similarly partnered with international soccer clubs to generate NFTs that represent players. These NFTs form the basis of a fantasy sports competition in which users are rewarded when their players perform well.
Social Tokens
Social tokens can be viewed as the fungible cousins of NFTs. Similar to how Bored Apes or NFTs minted by certain musicians convey access to certain communities or experiences, social tokens do the same.
Social tokens are catching on with creators and influencers who seek to create social communities around their individual brands. One interesting recent example is UCLA basketball player Jaylen Clark using the Rally platform to issue the $JROCK token. Holders of these tokens will get tickets to basketball games as well as unique content from Jaylen.
Social tokens are even earlier in their adoption curve, but alongside NFTs, are helping form the backbone of crypto’s social layer.
All roads lead to Web3
Crypto has now introduced several novel innovations to the world: first, Bitcoin and digital cash; then, Ethereum, smart contracts, and a revolution in capital formation; recently, DeFi and a reimagining of the financial system. Now, NFTs and what some believe will be a revolution in digital ownership and social coordination. Put all of these technologies together and you have the foundation for Web3 — an internet owned by its users.
Given the recent rapid rise in NFT values, it is likely that this market will experience boom and bust cycles, similar to previous crypto innovations. Regardless, we’re likely to see a continued cambrian explosion of new experiments that range from brilliant to absurd, as the lines between the digital and physical world continue to blur.
Previous editions of Around the Block
- Loot Project: the first community owned NFT gaming platform
- Axie Infinity, Yield Guild Games & the play-to-earn economy
Retail news
- CoinGecko, CMC, TradingView blocked in China, as crypto clampdown continues
- Robinhood is rolling out crypto wallet and transfer features + hints at DeFi
- Gemini & Binance US poised for multibillion dollar valuations
- Twitter rolling out BTC tipping via Lightning + NFT profile authentication
- Bitfinex pays $24M for a $100K ETH transaction in error
- Huobi to cease service to all users in mainland China
- FTX Moves Headquarters From Hong Kong to Bahamas
- Kraken to pay $1.25M Settlement with CFTC
Institutional news
- Visa unveils “Layer 2” network for stablecoins, CBDCs
- Mass Mutual-owned fintech (Flourish) launches BTC service for RIAs
- Fed chairman Powell says it would be ‘ideal’ to work with Congress on digital dollar
- Bank of England announces members of CBDC working groups including PayPal
- Latin America’s biggest investment bank (BTG Pactual) launching crypto platform
- Cambrian Asset Management is launching BTC/ETH trusts
- Crypto custodian Cobo raises $40M to expand DeFi services
- Invesco & Galaxy team up to develop crypto ETF suite
- Bitcoin fund launched by NYDIG has raised nearly $17 million to date
Ecosystem news
- Fantasy soccer NFT platform Sorare scores $680 million raise led by SoftBank
- Multi-chain wallet XDEFI raises $6 million in round led by Mechanism Capital
- Dapper Labs partners with NFL on digital collectibles marketplace
- Ripple Announces $250M Fund to support NFT projects on XRP Ledger
- Revolut to Launch Crypto Token
- Bitcoin’s Lightning Network capacity reaches an all-time high
- Social token platform Roll raises $10 million in Series A funding
- Permissioned DeFi platform Aave Arc gears up for launch
Tweets
- Chris Dixon on why Web 3 matters
- A sneak peak at Twitters NFT profile verification (using CB wallet)
- Compound Bug allows users to claim up to $80M in COMP tokens
- Axie Infinity is on pace to generate ~$1.4B in revenue in 2021
- Jeremy Allaire: Crypto is in line with US values of openness, transparency, privacy, and free market competition
- Lyn Alden: bitcoin adoption tends to be higher in places that have more restrictions on economic freedom
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