EQ Magazine: Reason and Healing in the Web3 Space.
F.U.D. BUSTER MONDAY
May 23, 2022
It’s intimidating going into the Web3 world. The word “NFT” or “Non-Fungible Token” harkens images of money, monkeys, and Beeple…. And quite frankly, we don’t give a F.U.D.! Fear, Uncertainty nor Doubt.
Welcome to the F.U.D. Buster on EQ Magazine.
This is for the real people out there grinding jobs, parenting, educating themselves, empowering themselves, as well as creating and empowering others. We got you.
Part of the EQ mission is to demystify apprehension and bridge the gap between two worlds: Web2 and Web3. For everyone.
The State of Cryptocurrency is not unlike the State of the Union Address. There is good news and there is bad news. We make use of both; we learn, we apply.
On May 17, 2022 the first “State of Crypto” report was released by a16z, a venture capital firm out of Silicon Valley. The 56-slide report is fairly easy to follow. Don‘t be intimidated. Definitely a lot more information if you want it all here. Here are our takeaways.
“A huge part of the world is underserved by existing banks and financial institutions.”
- 1.7 billion people do not have access to a bank account.
- Of those, 1 billion do have access to a mobile phone and 480 million have access to the internet.
The access to crypto is much more accessible that of fiat. Physical money. Cash.
The report touches on digital authoritarianism and why Web3 matters. It speaks on the flaws of Web2 which is extractive (particularly, extracting our data, behaviors, and habits) and less cooperative (Web2 makes us conform to it). Web3 is built for us. Albeit, Netscape, After Dark’s flying toaster screensavers, and aisles of software boxes are nostalgic (good ol’ Web1).
A16z continues to report on DeFi (Decentralized Finance) demonstrating how Web3 is much better for creators than Web2, “DeFi has grown from nearly zero to over $100 billion in less than two years.” Token exchange and lending protocols are the most popular DeFi use cases today, ranging in the billions of dollars.
The report talks about Stablecoins and the current price dip of the crypto market. Milk Road, another great crypto resource, said it best, “go into BUILD MODE. Let’s say it’s 1999 and you’re excited about this “internet” thing. If you lost interest during the 2000 dotcom crash, you missed a once-in-a-generation cycle to build stuff like social networks, video streaming, cell phones, cloud computing, etc. Don’t let price dips kill your enthusiasm. Don’t be Mr. Market….Be Bob the Builder.” Be a Bob. ✊🏽
“The NFT market remains hot, and we are beginning to see mainstream adoption.” attribute
From profile pics, to art and music, to gaming, utility, and virtual worlds, Web3 platforms have drastically lower take rates than the internet giants of the current Web2. A take rate example would be a customer purchasing an item for $10, using a payment services company to complete the transaction, and the payment services company charges a $1 fee. This would be a take rate of 10%.
As a16z highlighted, “You know something is profoundly wrong with our economy when Big Tech has a higher take rate than the mafia.” — Ritchie Torres, U.S. congressman representing South Bronx.
We are not the mafia, but we’re absolutely ruthless about “who gets what” for their IP (Intellectual Property). EQ Exchange keeps only 3%. Here are some other numbers to take with you:
- Spotify’s 11 million artists average $636 per artist.
- NFT’s 22,400 creators average $175,000 per creator.
Technology is empowerment. For everyone. It’s how we keep “FAANGS” from sinking their teeth into our Web3 structures. They have trillions of dollars to protect and trillions of dollars to do it with.
Still, the report shows how only 15,000 musicians on streaming services (less than 0.2%) make more than $50K/year… less than 0.2%. The other 99% of artists make less and even fans suffer a lesser connection to the music and the artist. EQ Exchange boasts, “Fuck the middleman!” Our music NFTs allow artists to monetize directly from their fans. And the fans proudly support and get gifts in return. EQ Exchange emphasizes MEGs, the Mutual Exchange of Gifts, over “Non-Fungible Token.” The language is inclusive. For everybody.
For all the gamers out there, the report shows that while the music industry shunned the internet, Video games embraced it and continue to do so incredibly as it moves into Web3.
Of all the stats, the most important is that it is still early for Web3! “Expect many more creators to embrace NFTs in their own communities as they discover how much better they can monetize by selling digital goods directly to their fans vs banner ads and other web2 monetization methods.”
Check out other content such as the incredible women of Web3 coming this Wednesday.
Spread the knowledge (@ EQ Library)
Spread the wealth. (@ CELO)
Spread the love (@ music NFTs).
Spread the message. Share us!
The report is published by a Venture Capital company (VC) called “Andreessen Horowitz” (also known as “a16z”). The firm lends money to entrepreneurs to push Web3 development.
This article is strictly educational and not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Do your research, feel free to ask if you have any concerns. That’s how we all learn. Differently.
Crypto and Web3 are to be learned and capitalized on by those that currently have the least access to them. We build, grow, and monetize together. EQ Exchange builds on the CELO‘s blockchain which takes environmental and social healing measures per transaction. If you’re a supporting fan, a collector, a listener of fine music, or a creator of it, we grow together.
“They’re not going to exist much longer. It’s not like we’re against them or anything like that, but the idea is that we find better ways of working with one another.” -- Prince, The Artist (Formerly Known as Prince).
Let us know what you think on social media.