NFTs could be perfect for influencers \u2013 but they keep ruining it Yuga Labs\/YouTube: David DobrikWith the rise of NFTs, creators and influencers have the perfect opportunity to leverage their brand and expand their revenue streams \u2014 but most of them are missing the mark completely. Non-fungible Tokens, or NFTs, have grown exponentially in recent years \u2013 although it\u2019s not all positive. The most expensive NFTs are worth millions of dollars, with digital assets from brands like Yuga Labs\u2019 Bored Ape Yacht Club, Larva Labs\u2019 CryptoPunk, and more becoming incredibly valuable to own. NFTs, though, for as much as they have grown, have also become somewhat taboo among skeptics and fans of those who look to utilize them. Their skepticism isn\u2019t misplaced, either: mistrust in any new technology is likely to happen, but one that breaks banks for what is perceived as no real reason becomes an easy target for accusations of scams, ponzi schemes, money laundering, or really any other variety of financial misdeed. Content creators getting NFTs wrong There\u2019s no denying that a number of top influencers have made good money from NFTs, especially those who hopped in early. FaZe Clan co-owner Ricky \u2018Banks\u2019 Bergstrom, for example, started his Web3 journey before the industry really started to boom, and as such has an NFT wallet worth at least $10m by his own estimations. For most influencers, though, this is the key reason they have shown any interest in NFTs or blockchain technology in general. While Banks may have plans in Web3 beyond just cashing in on NFTs, many don\u2019t have the same mindset. There have been numerous crypto and NFT scams from content creators in the last year alone. Earlier in March 2022, Banks spoke out about YouTuber David Dobrik, who was accused of being involved in a $6m \u201cscam\u201d through the Bored Bunny NFTs. \u201cI think it\u2019s worth noting that I didn\u2019t make this mistake only because I\u2019ve taken the time to educate myself,\u201d Banks explained at the time. \u201cA lot of these influencers take deals brought to them by their management [because they\u2019re] treated as a product campaign.\u201d Outside of the \u201cscam\u201d accusations that are levied against creators who promote certain NFT projects, there are also those who either create their own cryptocurrency or NFT without full knowledge of what they\u2019re actually agreeing to. \u2018Utility\u2019 is an incredibly important word in the world of Web3. It\u2019s key for any NFT project looking to onboard customers or, in this case, influencers looking to leverage their brand with fans, that they have something to offer in return. The idea that you could simply sell the NFT for more money than you paid for it (dubbed the \u2018bigger fool\u2019 model), or simply help said influencer, isn\u2019t enough and does a complete disservice to the fans who support their favorite creators. This is exactly what YouTube collective Yes Theory found out when they launched their NFT. Fans quickly called them out on it and criticized their decision. Their NFT is meant to fund the post-production of their \u2018Project Iceman\u2019 documentary, with said NFT also operating as a ticket to the premiere of the film. The issue is, that isn\u2019t rational justification for an NFT by the standards of their viewers. Many of them are, quite rightly, asking why they couldn\u2019t simply have sold tickets as tickets. What use is an NFT in this scenario? The crucial thing they got wrong was that they tried to implement the technology with no understanding (by their own admission) of NFTs or why they should use it. They did change course and decided to offer just 50% of their tickets as NFTs, but the damage was already done. Who\u2019s doing it right? While there are some notable instances where influencers and brands have failed their fans, others are finding ways to make sure their fans benefit. The NELK Boys, for example, have their FULL SEND Metacard, a membership of sorts for NELK\u2019s followers. The plan for these Metacards is to give owners priority access to merchandise and future NELK brands, including gyms, casinos, and more. In the world of esports, London-based organization Fnatic has similar aims for their NFT which, similarly, operates as a membership program. At three tiers of membership, owners can get varying levels of rewards, including merchandise each year, mystery boxes, and \u201cunprecedented access to your Fnatic heroes.\u201d Esports fans are also notoriously reluctant to dip into their pockets usually, but NFTs, if done right, could be a solution to this industry-wide dilemma. For committed Fnatic or NELK fans, these rewards are unparalleled. After a couple of years, they may well have made their money back simply in the value of merchandise or membership costs, and that\u2019s not including the value of the NFTs themselves. That, to many, begs the question: Why does it have to be an NFT? Why not just a traditional membership? The fact is, it benefits both parties. So, why NFTs? This is ultimately the question that so many people ask when these things crop up. Why do brands and influencers have to make their memberships an NFT? For creators to better get a grasp of their income and not have to live under the rules of platforms such as YouTube or Twitch, a membership subscription is a logical and fan-friendly solution. By creating a membership platform as an NFT, both creator and fan can benefit. Rather than \u2018renting\u2019 a membership and ultimately losing every asset or advantage when ending the membership \u2014 or, alternatively, spending extortionate monthly fees for years on end \u2014 the one-off cost of an NFT grants you all the benefits available until you decide to sell your membership, at least offering the opportunity for a return on your initial investment. The fact is that there are still many NFT and Web3 skeptics across the internet, and that isn\u2019t likely to change for several years. When influencers look to utilize NFTs as a way to leverage their brand, the last thing they want \u2014 and, often, the first thing many assume \u2014 is that it comes across as predatory. Simply \u201cownership of a part of the X brand\u201d isn\u2019t enough to justify a fan minting an influencer\u2019s NFT; there has to be some kind of intrinsic reward for being part of an exclusive club. While some know that, many are failing to recognize it \u2014 or recognize the opportunities of NFTs for their community at all.<\/p>\n","protected":false},"excerpt":{"rendered":"
NFTs could be perfect for influencers \u2013 but they keep ruining it Yuga Labs\/YouTube: David DobrikWith the rise of NFTs, creators and influencers have the perfect opportunity to leverage their brand and expand their revenue streams \u2014 but most of them are missing the mark completely. Non-fungible Tokens, or NFTs, have grown exponentially in recent […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-56337","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/dejan.au\/index.php\/wp-json\/wp\/v2\/posts\/56337","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dejan.au\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dejan.au\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dejan.au\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dejan.au\/index.php\/wp-json\/wp\/v2\/comments?post=56337"}],"version-history":[{"count":0,"href":"https:\/\/dejan.au\/index.php\/wp-json\/wp\/v2\/posts\/56337\/revisions"}],"wp:attachment":[{"href":"https:\/\/dejan.au\/index.php\/wp-json\/wp\/v2\/media?parent=56337"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dejan.au\/index.php\/wp-json\/wp\/v2\/categories?post=56337"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dejan.au\/index.php\/wp-json\/wp\/v2\/tags?post=56337"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}