😶The NFT community was too stunned to speak. Well, when you have based your entire ecosystem around a specific game and that game says they want nothing to do with you, that kind of throws a wrench into things. That’s precisely what happened this past week when Minecraft announced that third parties would not be able to use the Minecraft ecosystem for web3 / crypto / blockchain / NFT-based projects.
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What to know about NFTs and the ‘Bored Ape’ boom and bust cycle
Since NFTs, or nonfungible tokens, screamed into public consciousness in 2020 with million-dollar sales of digital artifacts, the debate surrounding them has gone more or less like this:
NFTs are the future of art and commerce! No, NFTs are a worthless scam! No, NFTs have a useful if limited future doing something that’s not quite clear yet! In the world of digital currencies, those are familiar arguments. So is the boom and bust cycle NFTs have been through, with big bucks made and lost along the way.
For instance, the price to join the Bored Apes Yacht Club by purchasing an NFT of an image of a bored ape soared to $420,430 before falling almost 79% in June, while the JPG NFT Index, which tracks a handful of blue-chip NFT projects, by June was down by more than 70% since its inception in April.
What if you could own a stake in Harry Potter? What if the book series functioned like a publicly traded company where individuals could “buy stock” in it, and as the franchise grows, those “stocks” become more valuable? If this were the case, someone who purchased just three percent of Harry Potter back when there was only one book would be a billionaire now.
Just imagine how that would affect the reading experience. Suddenly a trip to Barnes & Noble becomes an investment opportunity.
Early readers could spot “the next big thing” and make a $100 contribution that becomes $10,000 or even $100,000 if the book’s popularity grows. If readers could own a percentage of the franchise, they might then be incentivized to help that book succeed. They could start a TikTok account to promote the book via BookTok, or use their talents as filmmakers to adapt it to the screen. All of this stands to increase the value of their original investment.
NFTs enable brands to incentivize their users to not only rank up to a new level in their programme, but also to appreciate the value of the asset that they own and can later resell on NFT marketplaces.
Web3 loyalty programmes are being implemented by Budweiser, Bleacher Report, Pinkberry, and music festival groups Bonnaroo and Superfly.
The ‘consortium DAO’ – comprised of some of the leading web3 brands, including The Sandbox and Decentraland – will aim to foster inclusiveness, transparency, decentralization and interoperability in the metaverse.