Non Fungible Tokens (NFTs) have been the talk of the town across financial markets, both crypto and traditional markets alike. It is now growing at a pace faster than the blockchain and cryptocurrency industry by itself. On March 16, the Google searches for NFT reportedly reached its all-time high, more than 25 times the number in March.
Even Tesla’s CEO, Elon Musk, has now jumped on to the NFT gravy train. He announced that he would be selling a “song about NFTs as an NFT.” Essentially he will be selling a tweet with the song about NFTs in it. This announcement came only a few days after Twitter and Square CEO, Jack Dorsey, announced that he would be auctioning his tweet as an NFT and donate the proceeds to charity.
Content Creators Jump In
The NFT mania is not limited to CEOs of multinational companies like Tesla and Twitter; even content creators, including music artists, film personalities, influencers, and YouTubers, are encashing on this trend. On March 5, Kings of Leon became the first band to launch their album as an NFT. Within ten days, the band had generated $2 million in album sales already. Considering how the record industry has been faring due to the societal shift to music streaming, this number is exceptionally high compared to what it would be if King of Leon launched the record through the usual channels.
Within the music industry alone, a plethora of musicians have gotten into the NFT space. Linkin Park’s Mike Shinoda, Grimes, Snoop Dogg, Pellek, Steve Aoki, DeadMau5, and Post Malone are a few examples of the prominent players dabbling in this emerging combination of art and technology. Additionally, Crypto.com has appointed a music industry veteran, Joe Conyers III, to lead their NFT product. Most recently, he served as chief strategy officer at Downtown Music Holdings. These sorts of hires are indicative of the potential the experts believe this innovation has.
Apart from musicians, YouTubers are in the space now. In February, Logan Paul sold $5 million worth of NFTs, which were anime characters built in his likeness. Logan Paul has partnered with the NFT platform, Bondly, to create and launch his collectible NFT series to mark big events in this year. They were built on the Ethereum blockchain. Even Hollywood can’t be left behind when top money earning trends are concerned. On March 18, “Claude Lanzmann: Spectres of the Shoah,” an Oscar-nominated documentary, became the first Academy Award nominee that will be sold as an NFT.
As a whole, all content creators will now see this innovation as the “next thing” to get into to engage with their fans in innovative ways. While more creators will be gearing up to launch their NFTs, there is also an emerging demand for another innovation. Platforms.
Content Needs Platforms to House It
For NFTs like fan tokens and other similar ones, there needs to be a platform where the content will be housed and acts as a base for fans to engage with the creators. One example of such a platform is Rally.io. It is an open creator platform that enables creators to launch independent economies by engaging their communities using the Ethereum blockchain.
For instance, they brought Clubhouse Star Bomani X to their platform and has begun offering his $BOO token to allow his fans to engage with him. As an exemplification of such engagement, they have also taken onboard Twitch creator, FanHOTS and introduced his $FAN coin. The fans holding the coin can use it to choose which character he will play in online games.
Another company bringing a platform for creators and fans alike is Xfinite. Xfinite is a blockchain technology platform that aims to create positive economic incentives for its participants. They have launched their first product, Mzaalo, an on-demand over the top (OTT) decentralized platform. For users, Mzaalo provides access to free content, user rewards, and a range of interactive features. For content creators, it acts as a platform through which they can earn revenue and also engage with their fans and consumers in unique, customizable ways.
Xfinite’s own blockchain powers Mzaalo. With Mzaalo, Xfinite intends to enhance mainstream blockchain adoption and involve consumers in social entertainment. In contrast, in legacy platforms like Netflix and Hulu, no facility allows fan engagement with the content creators. Mzaalo’s ecosystem offers users rewards for streaming content on their platform, which can be redeemed as prizes, digital goods, and premium fan experiences. To achieve this, they have partnered with various prominent brands like Zomato, Skullcandy, Skyska, Cult.fit, Cross, Adidas, Swiss Military, and innumerable others.
The awards are usually dropped in XET. XET token is the native currency of the Xfinite ecosystem. It is a token on the Algorand blockchain. XET functions as a unique value exchange mechanism for all stakeholders, including users, brands & influencers, and content producers. Token holders can also vote for changes in the Xfinite protocol.
With the ever-growing number of content creators, there will be those who will want to cash in on the opportunity to engage fans and even earn more direct revenues. Since it doesn’t seem like NFTs will be obscure anytime soon, considering their various use cases, the need for such platforms is just going to rise exponentially. As usual, the early movers will have an enormous advantage over content creators and platforms that might follow the flock in this innovation. Best to reach first, and thus, also get served first.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.