Watching NFTs break into the mainstream last year, I’ve pretty much been able to create a scorecard that gives me a good idea of whether a project will succeed or not.
Of course, only time will tell because it’s not exactly foolproof. But it’s helped filter out which projects to keep my eye on for my mental health, especially with hundreds of minting every week.
The term derivative may not be such a bad word in this industry, but sometimes when I review a new project’s roadmap or whitepaper, I catch myself saying, “I’ve seen this before.”
Sadly, after some time, the space can become monotonous. And then, of course, there’s also the speculation, rug pulls and scams. Sometimes you need to step away from it all.
After all the shilling is said and done, could there be an NFT project that’s downright good for the soul?
I say yes. As a more diverse crowd enters the space, I’ve witnessed exciting projects that tell me that we’ve only seen the beginning of what NFTs can do.
Shifting away from art to phygital impact
Rather than artists being the centre of a project, I’ve seen founders use the most basic artwork as a key to unlock valuable utility.
OddFutur3, for example, attaches the following benefits to their 200 wordart-esque access token GIFs: exclusive community, minter and collector tools, VIP whitelists, membership to a DAO, IRL meetups and experiences, early content, and much more.
This opens up the possibilities for creators to focus on developing sustainable business models similar to that of Web2 social enterprises.
On February 27, 2022, CryptoKittens, Sussy Sharks, Chillin Chameleons, Honey Bee Club, Ocean Bandits, and Cyclo Turtles organised #NFTCLEANUPDAY. Their respective communities banded together to do a beach cleanup at the Santa Monica Pier.
While assets, the NFT, may be digital, the reach may be more tangible and lasting, straddling both Metaverse and the physical world as we know it.
In their mechanics, even those who couldn’t join physically had a way to enter the contest, blurring the physical and digital lines.
To me, that’s exactly what the Metaverse is, not just the platforms we know of. It’s an inclusive community coming together in a virtual space interacting in increasingly immersive ways.
Creators combine lessons and concepts learnt from previous PFP (profile picture ) projects like gamification, community involvement, and merchandise giveaways and apply them to sustainable development goal problems.
Also Read: Making sound NFT bets: Think before you mint; ruminate before you ape
In effect, they’re hacking the theory of cultural change with NFTs by making it possible, easy, normative, and rewarding to do good.
Cool collective capital
In the Web2 space, the common route startups and social enterprises would follow pursuing venture capital or incubation programmes. They would have to perfect their pitches to secure make-or-break funding. NFTs have changed the game by democratising how capital is secured.
If you think about it, minting is essentially a fundraising exercise, where the stakes aren’t as high for both founders and investors. To quote the tagline of one project, Not Essential, “Individuals cannot do much, but individuals together can do a lot.”
For illustration purposes, let’s consider the Luckies project by OddFutur3. A successful mint will raise 789.25 Eth or US$21,167,471.75 as of writing, less marketing costs, of course. This gives a pretty lengthy runway to execute on their roadmap, aiming to promote Asian culture from the perspective of second-generation immigrants in North America.
Imagine what it would take to do that using Web2 methodologies.
In Web3, fundraising in this manner empowers the community in two very specific ways.
It gives individuals the ability to earn like an angel investor with the minimal resources they may have.
Secondly, unlike pitching to a VC, the business model is not fully fleshed out. The community is highly involved in deciding the direction of a project. Decisions are made together, which tells me that more nuanced solutions can be created.
In light of recent events, we’ve seen how certain projects are using their clout to raise funds yet again for social good.
Jungle Freaks is raffling off 1 Genesis Jungle Freak, 5 “Allow List” spots each for JFMC and Fallout Freak to those who donate to the United Help Ukraine charity. Andrew Wang and other NFT influencers aren’t sitting this one out either.
They launched RELI3F, where 100 per cent of the funds from the primary sale will go towards relief efforts, and royalties from secondary sales will go back to the 27 Ukrainian artists in the collective.
Business savvy for creating value
However, what is common between Web2 and Web3 funding is the importance of the founding team and their ability to deliver on their promises.
Call it really good marketing, but time and time again, I’ve seen projects that are super hyped up until mint.
Also Read: How indigenous artists could preserve their own culture with NFT
After which, the project fizzles out. I’m of the opinion that great projects that deliver value to their community will always be a success. Floor prices should be indicative of the confidence in that value. Concretely, Zoofrenz, for example, currently averages at about 0.55E, holding steady one month after minting.
I don’t think the jump from its initial price of 0.15E would be the case if it weren’t for Zombot Studios, a game art agency behind the project.
When they say they will deliver a game as part of the roadmap, we can rest easy that they can make it happen.
For OddFutur3, which helps offline businesses go online, their deep expertise in knowing their client’s customers enables them to build meaningful Web3 solutions.
OddFutur3’s founders have been behind generating billions of dollars in value for their businesses and that of their clientele. I’d be wary of projects that don’t have a strong founding team, especially when they’re entrusted with that much funding, decentralised or not.
Final thoughts
It may be only a matter of time for the bubble to burst on PFP projects or even collectibles.
For me, however, I’m still extremely bullish. We’ve yet to explore what NFTs can do, and the positive impact Web3 projects can have on the world.
If you’re a creator wanting to enter the Web3 space, my advice is to make social good your jumping point. Ask yourself the question,s “What would you do to make the world a better place?”
And then find a community that shares your why.
If you’re an investor, consider projects that go beyond the collectible use case. Find projects that have utility impacting real lives phygitally.
In this fast-paced world of NFTs, it may be in projects that promote social good that you find what you’re looking for beyond the next 10x return.
I’ve always believed that there is a demand for good, and there will never be an oversupply. That is something you cannot hype.
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