The vast majority are going to have ten views, not a billion. It’s an unregulated, non-transparent hustle with ‘bubble’ written all over it.
NFTs are still early and will evolve. Their utility will increase as digital experiences are built around them, including marketplaces, social networks, showcases, games, and virtual worlds. It’s also likely that other consumer-facing crypto products emerge that pair with NFTs.
I will be using Malcolm Gladwell’s The Tipping Point to explain the phenomenon. In The Tipping Point, Gladwell argued that there are three key factors for every influential trend:
- The Law of the Few: a small handful of people (connectors, mavens, salesman) that will spread the word out like fire.
- Stickiness: the idea must be somewhat intriguing, memorable, or addictive.
- Principle of context: the appropriate situation that makes people care.
While we will not follow the framework by its exact granular details, we can broadly use these three factors to examine BAYC’s success.
The Law of the Few
In 2008, Kevin Kelly wrote that content creators only need 1,000 true fans to make a living in her essay.
BAYC has 10,000.
Are NFTs the new crypto?
Digital ownership of a wide range of irreplicable intangible items can be represented by NFTs. This novel technology broke through into the mainstream in the first year of the 21st century.
How are NFTs created?
Minting is the process of making a token.
The process of turning a digital item into an asset is referred to as turning it into an asset. NFTs are like metal coins in that they are created and added into circulation.
How do I sell NFTs?
You can put an existing NFT on the market by clicking on the desired NFT.
The blue Sell button can be found at the top of the screen.
NFTs are a step forward in the reinvention of this infrastructure because they enable digital representations of physical assets.
To be sure, neither the concept of digital representations of physical assets nor the use of unique identification is novel. When these ideas are combined with the advantages of a tamper-resistant blockchain of smart contracts, they become a powerful force for change.
The most obvious advantage of NFTs is market efficiency.
Converting a physical asset to a digital asset streamlines processes and eliminates intermediaries. The use of NFTs on a blockchain to represent digital or physical artwork eliminates the need for agents and allows artists to connect directly with their audiences.
They can also be used to improve business processes.
Treat this article as an introduction to NFTs — it’s a vast space, and there’s a lot more reading and learning you can do, but my goal with this article is to give you a baseline that you can build off.
What is an NFT?
NFT stands for “nonfungible token,” which, according to Investopedia, are “assets on blockchain with unique identification codes and metadata that distinguish them from each other.” The keyword in that definition is “unique.” What makes NFTs different from cryptocurrencies is the fact they are all different (or nonfungible), whereas cryptocurrencies are fungible or “identical to each other and, therefore, can be used as a medium for commercial transactions.”
An easier way to explain the difference between cryptocurrencies and NFTs is this: Cryptocurrency is a currency, and NFTs are goods.
From the color palette to the edgy design style to the choice of lo-fi music, the creative choices all come together to make BAYC such a cool brand. BAYC has all that a strong brand has — a unique logo, fantastic brand personality, and a mascot (or 10,000?).
It doesn’t have a slogan, but honestly, not every brand needs one. BAYC never deviates from the cool branding it is. They know who their audiences are.
Whether it’s the Mutant Apes or Bored Ape Kennel Club, BAYC stays true to the brand’s cool vibes, creating a universe that can extend out of the digital space.
The Power of Context
BAYC did not start its own platform in isolation. They leveraged existing crypto communities on Twitter in the very beginning.
They were also introduced when ETH was breaking out around $3,000.
July 16, 2021, | AtoZ Markets – Non-fungible tokens, or NFTs, witnessed massive growth in value over the past six months. Year-to-date, the market capitalization of major NFT projects has skyrocketed to over $14.5 billion, representing a 60,000% rise in a little more than six months.
Non-fungible tokens are digital assets built on a blockchain to show ownership of a unique virtual item such as art, music, pictures, videos, or even collectible cards (remember Pokémon cards?).
In the first quarter of the year, NFTs saw thebiggest boost in value everas top digital artists, celebrities, athletes, and corporations launched their digital assets.
Top digital artist, Beeple, whose real name is Mike Winkelmann,sold a piece of digital artwork for nearly $70 millionin March, causing a rumble in the NFT space.
Lack of engagement can then become a self-fulfilling prophecy, devaluing the NFTs themselves.
To maintain ongoing community engagement, NFT project teams must generate confidence that they can continue executing.
In the world of crypto, where many people engage partially or completely anonymously, crises of confidence in a project can cascade quickly, which means it’s particularly important that the team communicate frequently and transparently about how they intend to evolve the project. (Many NFT teams have frequent “community calls” for this purpose.)
Here NFT projects can also lean on established brands or institutions, as well as explicit promises of real-world utility.
You’re buying the property rights to the picture.”
Why don’t people just right-click on an image instead and save it to their desktop? That’s free.
But like with other collectables, whether it’s baseball cards, rare books or fine art, having an original is special.
Take CryptoPunks, pixelated avatars that have fetched millions of dollars. Sure, you could download one of the alien avatars, but collectors would not consider it authentic.
A real alien CryptoPunk costs, on average, $900,000.
To be clear, there’s no visual difference between an original and a copied version.
And to make it even more confusing, not all NFTs are originals. Many are the digital equivalent of a reprint.
With Top Shot, for instance, we may see NBA players offering court-side seats and meet-and-greets in exchange for certain moments.
Inside the virtual world Decentraland, Decentral Games is building a virtual casino where people can play poker tournaments. Buying (and wearing) certain NFT clothing items — say a digital $1k jacket — will get you a seat at certain high-roller tables. But ultimately, an NFT is only worth what someone else will pay for it.
The use of NFTs would enable, for example, concert organizers to limit resale prices and drive even the most tech-savvy, robot-using scalpers out of business. Tokens could be used to sell digital wildlife to fund conservation efforts.
You can buy, sell and resell almost anything in the physical world and NFTs enable you to do that with digital goods. And because they are verifiable, thanks to the blockchain, they can be traced back to their source of ownership, which makes them ready to be commoditized.
Look at it this way: An NFT is like a concert ticket. When you buy your ticket and print it out, your name and the date and name of the event are on the ticket. It can all be traced back to you. Your ticket is unique — someone could duplicate your ticket, but it won’t work because your ticket belongs to you and only works for you unless you decide to sell it to someone else, transferring the ticket’s ownership.
Because NFT ownership is easy to certify and transfer, we can use them to create markets in a variety of different goods.
But NFTs don’t just provide a kind of digital “deed.” Because blockchains are programmable, it’s possible to endow NFTs with features that enable them to expand their purpose over time, or even to provide direct utility to their holders. In other words, NFTs can do things — or let their owners do things — in both digital spaces and the physical world.
In this sense, NFTs can function like membership cards or tickets, providing access to events, exclusive merchandise, and special discounts — as well as serving as digital keys to online spaces where holders can engage with each other.
Moreover, because the blockchain is public, it’s even possible to send additional products directly to anyone who owns a given token.