The History and Future of NFT's
If you've had a few years of experience in the crypto scene, chances are you've come across the Bored Ape NFTs—a set of 10,000 animated monkey-themed digital assets that fetched millions of dollars. However, over the past year, the buzz surrounding these NFTs appears to have waned. What factors have contributed to this decline, and does it signal a potential shift in the NFT landscape? The biggest problem with the Bored Apes, and others like Cryptopunks, was and is the fact they had no function at all. The reason Justin Bieber, Eminem, Neymar, Paris Hilton, and so many others bought a BAYC NFT for so much money was mostly clout. And a membership to one of the most exclusive clubs in the world.
A fad at best imo.
Love it or Hate it, - 50Cent.
"NFTs are pointless, bad for the environment and a product of late-stage capitalism" are the most negative arguments. Controversial yes, but it may not all be as negative as it seems.
NFTs are widely used in the 'art' sector as a way for artists to sell their digital works and for collectors to buy and own unique digital items. Recently, a collection of computer-generated NFTs by Vera Molnár, a 99-year-old Hungarian artist, was sold for $1.2 million(631 ETH), in less than an hour.
With the rise of Web3, the future for (most) NFTs looks promising:
Luxury goods: authenticity can be certified with NFTs. High-end watches or purses with proof of ownership on the blockchain.
Supply chain: Digital records of an item’s journey, from production to sale, can be turned into NFTs to ensure traceability, authenticity, and provenance. Ticket sales: NFTs can tokenize tickets, securing and verifying proof of purchase. This reduces fraud and allows secondary market transactions where original ticket issuers can benefit from sales.
Gaming: NFTs can represent video gaming items, characters, and virtual lands to establish a new level of interactivity.
Healthcare: NFTs can be used to give patients the option to monetize their health data and provide valuable data to researchers. Of course, the metaverse is also a potential application, but we won't be getting into that.
Streaming: Artists can tokenize their songs/videos, sell merchandise, and receive royalties. Apparently, this will be one of the next major disruptors in the streaming industry.
And much more...
Case Study: Glenfiddich Rare Whisky
Glenfiddich single malt Scotch whisky launched 200 limited-edition Chinese Lunar New Year NFTs to celebrate the Year of the Tiger in 2022. These bottles weren’t physically given to the buyers. Instead, each was represented by an NFT that the buyer owned. The physical bottle would only be handed over when the buyer decided to transfer the NFT back to Glenfiddich, thus creating a physical-digital bridge.
Web 1.0 = 1989-2004: mostly static pages and users were consumers.
Web 2.0 = 2004 - now: The web as a platform and centers on user-created content (Forums, social media, blogs, ...)
Web 3.0 = decentralization and often incorporates blockchain technologies.
The NFT market experienced a real bull run in late 2021 and early 2022, showing incredible performance and prices. The enthusiasm for NFTs has waned since the second half of 2022. The opinion on the streets (read Reddit) is you either love 'em or hate 'em. However, the increasing use of NFTs by various companies and the benefits they bring to many communities around the world show that there is significant potential for future growth and adoption. There are very exciting projects ready to take on the world: like Gucci Vault, Metaverse, ...
As I said before in this article, the opinion of the masses towards NFTs and crypto is still negative and mostly plagued with misconceptions. And this is the biggest puzzle Sorare faces; how do we get new football enthusiasts to deposit their hard-earned cash into something as controversial and/or complicated as Sorare (read: NFTs/Crypto).
We've been seeing a big marketing campaign by Sorare, they are more visible than ever. We've been seeing other content creators and YouTubers joining Sorare trying to get their community interested in Sorare.
And the addition of the FIAT wallet is a huge step in the onboarding process. The real-world rewards like shirts, hats, or football trips to games are proving an excellent step in shedding the controversial aura. It provides a sense of legibility that you can get something tangible delivered to your doorstep.
The flooding of the market with new cards at times doesn't help. It helps in dropping the prices and lowering the threshold for new players, but the value curve of a Sorare card dropping off the map isn't hard to understand for anyone.
A simple product is what Sorare needs to be. The announced (and discontinued) fitness bonus is a bad idea. I wouldn't even know how to explain it to anyone if they are starting with Sorare.