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NFTs for Skeptics

Crypto Pragmatist | March 2022

A CryptoPunk - NFTs for SkepticsIt’s obvious that the public adoption of NFTs is in its earliest stage. Both NFT fanatics and the NFT-skeptical can understand that these digital tokens currently used to represent ownership of JPEGs and GIFs (not even the intellectual property behind those JPEGs/GIFs) are pretty rudimentary in their current state.

Simultaneously, it’s hard to deny the fact that NFTs have become a force to be reckoned with: with Adidas, Nike, Visa, and the NBA all in the space, there’s simply no way to deny that NFTs have managed to capture public attention in a way that crypto hasn’t been able to previously. The market cap of NFTs has exploded to nearly $40 billion dollars last year, with somewhere around 500,000 people owning at least one NFT.

See:  Is Open Sea doing enough to combat NFT fraud?

With this blend of crypto optimism and pragmatism, we decided to spend the week hunting for novel use cases of NFTs: corners of the cryptoverse where these non-fungible tokens go beyond cultural or collectible memes and cross over to the realm of innovative technology.

VeNFTs

In short, Solidly wants protocols to have a representation of their governance in the protocol (veNFT) without actually giving them actual stake in the protocol (tokens). Simultaneously, Solidly can give the protocol a way to earn money against their future ownership share (by borrowing money) without selling the tokens themselves and depressing the token price.  What does this mean for the DeFi? Well, that there are many ways for NFTs an be integrated with the world of crypto-based decentralized finance seamlessly, all with the possibility of designing new parameters around governance, holding periods, lockups and more.  These veNFTs give more freedom to protocols and developers to better design incentive structures.

VeeFriends (Gary Vaynerchuk)

The project VeeFriends was launched in early May 2021 with a mint price of .5 ETH, at the time around $1,300. Now, the floor price sits at about 13 ETH, or ~$36,000. How exactly are these so valuable?  All 10,255 tokens provide exclusive access to the annual VeeCon, a multi-day event focused on business, marketing, ideas, and creativity: the things Vaynerchuck is best known for. NFTs are sold under the premise that these events will provide tremendous value to holders by fostering innovation and opening doors to a new network.

See:  Are NFTs More Than Just Art?

The first VeeCon will happen this spring, and it’ll be interesting to see how this affects price.  But these admissions tokens go beyond tickets, with more expensive ‘access tokens’ on sale that grant users a unique and personal experience with Gary such as group/one-on-one video calls, courtside Knicks games, dinners, various sports activities, and even giving holders the opportunity to host Gary on a podcast.

Bakery DAO

The Bakery DAO is all structured on both traditional finance rails as well as Web3/crypto rails, meaning you can log in after buying an NFT on OpenSea or by simply using your credit card. But the NFTs get you access to the digital community, which has been natively integrated across a web browser, Telegram, Discord, and a merchandise store.  Hold an NFT in your wallet to participate in the Discord, check the Telegram group, and read crypto content. Then, when you’re done, you can sell your NFT. Maybe it’s even gone up in price.  So now, you can buy an NFT, write an article, and contribute to the group chat. If you have onboarded users to the DAO, now you can earn passive income as an affiliate and sell your NFT at a premium when you choose to exit. Each individual adds value and benefits from the value created in multiple ways.  Ownership creates value.

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NCFA Jan 2018 resize - NFTs for Skeptics The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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