Founder’s View — Future of NFTs (Short & Long)
I listened to the Steady Stack AMA yesterday and there were a few points that stood out to me… I hope to make them stand out for others.
- NFT market is eating itself
- NFTs are technology
- NFTs are not a business
Unfortunately, the crypto markets have created a reputation for being ponzi schemes and pump and dumps; therefore, suffering the obvious consequences… a hard pull back and bear market. The losses are real, forcing buyers to reevaluate their investment thesis.
Likewise, the NFT market has been sucked into the same preposterous evaluations creating false narratives of wealth creation. What’s worse is this is being done with the outmost limited understanding and use case for NFTs. Its laughable to think everything is based on art and the derivatives of said art.
If NFTs are technology, or a tool with a function, then the art is no more than a feature of the tool or a byproduct of the function. Yes, the art is important... it plays a role in establishing a brand but how unique can it be if everyone is a possum. What‘s going to happen to the top 100 projects on OpenSea when everyone realizes they spent five grand on a JPEG thumb up my ass?
Welp, most likely NFT buyers will STOP looking at NFTs like investment opportunities, because they are NOT investment opportunities. Because NFTs are NOT a business. They are technology.
“NFTs are an extension of the business” — Gary Vee.
Sadly, the majority of people starting NFT projects are both doing it for the wrong reason and in the most predictable and unstainable ways. The idea of the “NFT project” has become productized in itself… allowing anyone with a large Twitter following to launch an NFT. And the people starting these projects are not prepared for the responsibilities that come with operating a business. Because they don’t see it as a business.
This is where the idea of a roadmap is complete bullshit and a red flag. Just another part of the “productized template.” Anything with a roadmap is just saying we don’t have what we’re selling yet. Real businesses don’t operate this way. A real business establishes roots, attracts an audience, talks to them, understands what they want, and builds if for them.
The problem with looking at the Web3 space through a cash-grab-roadmap-piece-of-shit-template-like-business-model is that you miss all the opportunities to create real leverage. Sooner or later, the NFT market will ascend and see how ludicrous it all really is.
So how should you value an NFT project?
Same way you would a business, and profitable businesses are valued based on their ability to generate future cash flows.
To this day, the #1 selling NFT is Minecraft… which is METAVERSE. With over 200 million units sold and 141 million users in 2021 and rising in 2022, everyone hating on METAVERSE is excusing one of the most successful video games in history and the the only unclaimed frontier on Earth— cyberspace.
The metaverse and all its possibilities is the long term vision for NFTs. Long term because the technology, both NFT and metaverse, is too early for mass adoption. Realistically, it’s 5 to 10 years out.
In the short term, the future of NFTs is in gaming… more specifically eSports. And it’s no secret. Just look at regular sports. The global sports market is projecting over $500B in 2022 at an annual growth rate (CAGR) of 41.3%.
Similarly, the eSports market is a over a billion dollar market value and growing at 50%. If the Sports industry is an indicator of what is possible, eSports is just getting started.
Here’s the point… a smart NFT is not a business. Its technology. And a smart business doesn’t go into the NFT industry. It goes into an industry with some legs… like gaming and eSports.
Likewise, Black Meta is a Web3 business with a long term vision for the metaverse. The groundwork being built in gaming and eSports. Black Meta is not a pump and dump art project. Its a Research Facility, and we’re developing over a dozen potential use cases to test and share for NFTs:
- Ownership/Identification
- In game assets
- Season passes
- Clearances
- Collectables
- Consumables
- Crafting
- Currency
- Easter eggs
- Land
- Licensing
- User generated
So, when a business like Medieval Dao reached out to us about a potential collaboration, I got very excited because they weren’t selling NFTs. They're weren’t hyping. Or minting 10k tokens. On the contrary, they came to us with unique propriety technology… technology we can use.
Tonight we are hosting them for a private AMA in our Discord server. Unlike the usual hype-AMA-fuck-fuck-show where founders answer silly questions everyone always asks about the tokens and the tokens and the tokens…
We plan on asking questions that uncover the possibilities of the business behind the project…
- Why are you passionate about building in Web3?
- What are you building in Web3?
- What industry?
- How will it make money?
- How big is the market opportunity?
- What makes the team uniquely qualified?
- What positive early traction has the company achieved?
- What does it mean to be a holder? Is it the same or different as an investor? Partner? How?
- How will incoming revenue be spent?
- What’s the next step?
Again, @DaoMedieval is a social and strategic NFT game with quests to earn multiple rewards and a proprietary implementation of ERC721.
You can catch key members of the management team at a private AMA inside the Black Meta Discord Server:
DATE: Wednesday, May 18th at 9:30 PM EST
See you there,
BeckerPrime ♠️🩸
P.S. Medieval Dao is preparing for a limited private and public mint… and as a collaboration partner of Black Meta, we will be raffling off between 10 and 15 whitelist slots for their upcoming free mint.
Here are the participation instructions: https://twitter.com/blackmeta_/status/1526471771993649152
