Hi-
Still, a bit run down from the “mild” covid. So here’s a little something I put together on NFTs to hold y’all over.
Dave
Big Ideas:
- Value is defined by the customer, not you.
- Is it speculation or is it something else?
- This is a bet.
How’d everyone make out in the Bitcoin crash of 2022?
This short primer on the NFT market is very helpful if you are trying to figure out what to think about the topic.
I won’t go as far as Mark Ritson, yet, and call them the latest idiot magnet. But I will say that it is odd to see so many folks go all-in on something that doesn’t have so many use cases when you can barely get them to change other business practices that are outdated and haven’t changed in decades.
So it goes!
I’m often not too hot or not too cold on anything. I’m much more of an “it depends” on most things.
Again, with NFTs, it depends.
In looking at the role that NFTs are likely to play in building audiences, growing a connection to your fans, and being a part of your business, my go-to resource is Zoe Scaman. Her work focuses on using these “Web3” technologies to build and grow fandoms. She’s been talking about some of the examples like Gronk used for quite a while.
First, you have to look at what the value is.
As Rich Klineman says, the customer defines the value…you don’t.
Some of the examples where the physical and the digital are coming together in a way that generates value can be seen with Gronk’s example of meet and greets. We also recently saw the Warrington Wolves become the first Super League team to use NFTs in their jersey launch. Then we see someone like NFT Concerts offering up what could be considered an expansion of the bootlegs that are often by artists like Pearl Jam, the Dead, and other artists.
Second, there is speculation.
Bitcoin Crash 2022 highlighted the reality in any investment, “things don’t always go up.”
You have to have a risk profile.
Do I think that a lot of these investments were bonkers?
For me, sure.
Do I know that a lot of the investments were being made with cryptocurrencies and paid for with cryptocurrencies so that no fiat currency ever changed hands?
I don’t, but I wouldn’t be surprised.
Does this mean everything is bad?
No.
It means that you have to keep an eye on these things and you should be cautious when making investments in these kinds of items the same as you would with stocks, real estate, sports cards, or tickets.
Third, this is a bet.
Like any new business opportunity, you are making a bet that you can get to the future before other folks.
Again, I’m not all or nothing on most things.
In the way that Blockchain or NFTs are offered up as additional value to sports fans, theatergoers, or audiences of the arts. Innovation hasn’t always been the strongest suit for a lot of these businesses, so I’m cautious.
And, as we are seeing in many places, the people that seem to be benefiting currently aren’t necessarily the customers that bought in early but the creators or content producers…which isn’t necessarily saying there is anything wrong, but it does highlight the need for caution.
Finally, with any emerging technology or idea, the whims of the market can shift pretty quickly.
Remember, Kozmo.com, the pet rock, or pandemic pets.
With everything, do your due diligence. Understand that there is a certain amount of risk involved in any decision. And, make certain that you recognize that value is in the eye of the customer, not in the eye of the creator.