Salesforce NFT Cloud – The Good, the Bad & the Ugly
It’s been just over a week since reports leaked that Salesforce have started working on an NFT Cloud, and divided opinions are already spreading across the Salesforce ecosystem. Big brands such as Coca-Cola, the NBA, and Time Magazine have already launched their NFT collections, with many others due to jump on the bandwagon this year.
It’s no wonder that Salesforce wants to build a platform to support this new wave of digital art. But as hundreds of Salesforce employees sign a letter of protest against the company’s NFT plans, what makes these non-fungible tokens so controversial? Let’s take a look…
What are NFTs?
Before diving into the specifics of what a Salesforce NFT Cloud could mean, let’s first cover what the heck an NFT actually is!
NFT stands for Non-Fungible Token.
Salesforce tells employees it’s working on nft cloud service
However, collectibles that aren’t included in nonfungible.com’s statistics — such as NBA Top Shots — have experienced similar growth rates.18
18. Number of Sales Over Time
Back in 2017, even a good week might barely get 100 total sales. However, after NFT sales spiked in December of that year, it only went back down to around 15,000 sales a week.
Since then, NFT weekly sales have varied between 15,000 and 50,000.
For the months between November 2019 and April 2020, there was an increase in weekly sales, with most weeks between 30,000 and 80,000. However, after that, NFT sales went down to around 10,000 and have barely returned to the 15,000 to 50,000 range.1
19. Value of Sales Over Time
For most of 2017, the total value of NFT sales each week was firmly below $10,000.
Then, during the winter spike, it hit a peak of $13.9 million.
How Much Does an NFT Sell for on Average?
NFT trackers and marketplaces often give an average sale price — when you add all of the sale prices together and divide by the number sold — so big, one-off sales can distort the numbers and make it seem like average NFTs will go for thousands of dollars.
Instead, artist Parker worked with an unnamed data scientist to analyze primary NFT sales on OpenSea between March 14 and March 24 in 2021. They found that over a third of sales went for under $100, and 53.6 percent went for under $200.2
So although some NFTs may go for millions, most don’t even break $200. This looks even worse when you consider that the costs of minting and selling an NFT can range between $70 and $150 — enough to turn this small profit into a loss.
Tells employees working nft cloud9
They also allow artists to receive royalties whenever an NFT audio file is played, as well as whenever the NFT is sold on.
However, I doubt independent artists are the target market for Salesforce. The success of the NFT Cloud will undoubtedly come down to the success of brands launching their own NFTs, and how this influences their customers. So far, mainstream NFT launches have been widely successful, such as NBA Top Shot, as well as Time Magazine’s “Slice of Time” (also owned by Marc Benioff – coincidence? I think not).
However, it’s too early to see the effect on customer engagement, community, and replicability.
Whilst you could say that NFTs and digital art are a logical path for our evolution to the meta-verse, they don’t come without their fair share of criticism.
Firstly, you could say that NFTs are a bubble.
Tells employees working nft clouded
This settled down to around $450,000 each week, occasionally spiking as high as $6 million on a busy week.
In September 2020, despite sales not increasing much, the total value of those weekly sales hit $4.8 million. The weekly sales would then stay between $2 and $4 million until late January 2021, where it began to increase to a peak of $176 million in May. After this, the weekly sales fell, but they’ve stayed above $10 million so far.1
Increase in Active Wallets Over Time
The total number of active wallets started in double figures and first went over 100 on November 24, 2017. At the 2017 peak, it hit 34,985 active wallets in a week, but quickly fell and settled into the 2,000 to 4,000 range.
Tells employees working nft cloude
- On Saturday, Chain CEO Deepak Thapliyal purchased CryptoPunks #5822 directly from Larva Labs’ own marketplace for $23.7 million, shattering the previous top sale record by double the amount.
- McDonald’s plans Metaverse move by filing 12 trademarks for ‘Virtual Restaurant’. If approved, this will allow them to share downloadable media files such as artworks, audio, video, and of course NFTs.
- South Korean giant Samsung built an entire immersive experience on the Decentraland Ethereum Metaverse. The experience features a gamified exploration of their city corner, allowing the user to play a mini-quest within different locations such as a theatre hall, a dancing disco arena, and a big forest.
The largest NFT marketplace by total volume traded is NBA Top Shot, with over $600 million all-time volume traded in mid 2021. However, if you look just at recent sales, OpenSea, which hosts trades valued between $70 and $90 million every 30 days, takes the top spot in mid 2021.5
If you look at the number of traders rather than total value, the Atomic Market and NBA Top Shots are the largest.
The Atomic Market has had over 440,000 all-time traders and around 150,000 over 30 days in mid 2021, and the NBA Top Shots have just over 400,000 all time and 160,000 over 30 days in mid June, with nothing else currently getting close.
Most Expensive NFTs
OpenSea.io has also recently raised a $300m Series C funding round at a $13.3 billion valuation.
The Good, The Bad, and The Ugly
Salesforce is no stranger to reacting almost instantly to global demands on technology. Back in 2019, they released Salesforce Blockchain, in response to the hype around Blockchain & Cryptocurrency, and since the Pandemic, they have released Work.com & Safety Cloud, two products focussed on opening the economy back up, safely.
Although the Salesforce NFT Cloud might come as a shock and almost feel a bit “off-piste” to some, if the NFT market is going to grow way beyond the $40 billion in transactions that occurred in 2021, then Salesforce could become perfectly poised for their customers to create, mint, and sell NFTs using their own product.
For independent artists, NFTs could be the future.
Fabrice Coffrini | AFP | Getty Images Salesforce told employees at a sales kickoff on Wednesday that the company plans to release an NFT Cloud, according to people with knowledge of the matter.
NFTs (non-fungible tokens) are unique digital assets stored using blockchain technology. They’ve taken off in the world of art and collectibles, and Salesforce sees an opportunity to bring the technology into enterprise software.
Salesforce co-CEOs Marc Benioff and Bret Taylor both talked about the strategy at the online event, said one person who attended. The person asked not to be named because the event was private.
We, therefore, intend to build a community of collectors from diverse backgrounds, genders, and cultures.
A Salesforce-owned marketplace could mean there wouldn’t be a need to use OpenSea.
Salesforce’s interest in the space shouldn’t come as a surprise. Time magazine, which is owned by Benioff and his wife, Lynne, recently introduced TIMEPieces, a digital collectible that gives owners access to magazine content and events.
In a blog post on 2022 predictions published in December, Mathew Sweezey, director of market strategy at Salesforce, said that in the coming year “pioneering brands will search for utility via NFTs.” He called Time’s project a “great example,” and said NFTs will become more pervasive as they move beyond the novelty phase.
“To unlock their full potential, brands are going to have to start creating utility via the token,” Sweezey wrote.