Spotify, Universal, Meta, Coinbase, Twitter, Ebay, GameStop, etc: The list of world-famous companies working on NFT business models is huge. New markets, some of which focus on a particular industry or topic, such as GameStop, ensure an important expansion of infrastructure. JPEG thumbnails that don’t have the context, story, or strong branding found in markets like open c However, hardly a chance.
markets as a basis
A well-developed NFT market infrastructure alone is of little use if the virtual goods to be purchased from the markets do not have a relevant use case. The largest social media platforms, Meta and Twitter, play a role at exactly this point or the other extreme. Assuming there’s enough supply, nothing stands in the way of the big NFT wave, right?
NFT images are not enough
The most important question is: is there a sufficiently large demand for the supply that is created. After all, that has collapsed precipitously in recent weeks — trading volume on the largest NFT market OpenSea is down 76 percent since the start of the year. collapsed. Profile pictures alone should not be enough to justify the high investments and sometimes high ratings of individual platforms such as OpenSea.
The hopes of the NFT sector are therefore primarily in the differentiation of individual NFT sectors that offer more than just micro-pictures. So success depends on communities like the Bored Ape Yacht Club (BAYC), game developers like Activision, and blockchain games like Infinity axfrom Metaverse projects such as The Sandbox, Discentraland Or from art and lifestyle platforms like Spotify. If they can generate new demand through new innovations in the coming months, sustainable value creation can succeed. If not, there is a risk of low-transaction NFT platforms as the companies and investors behind them quickly lose interest.
Music: The Most Underrated NFT Sector
In order for a sector-specific NFT organization to function, an ecosystem of the most important players in the respective industry is needed. Above all, however, use cases need to be easy to implement and quick to scale across the board. These terms are more likely to be found in the music sector than in other NFT sectors. The world’s largest record label, Universal Music, and the world’s largest music streaming platform, Spotify, are investing both time and money into NFT business models. Other music players such as Warner Music or file-sharing platform Limewire are planning to enter the NFT sector, and some even have their own NFT marketplace.
At the same time, there is hardly an industry with a greater social media reach. After all, the biggest Instagram accounts include musicians like Beyoncé, Ariana Grande, and Taylor Swift, all of whom have between 200 and 300 million followers on the platform. Promoting their NFT very quickly can create a high level of demand, which is unimaginable for Metaverse NFTs, for example.
Finally, the music industry offers easy ways to create NFT use cases. In addition to the collector aspect, specific services such as access to exclusive (online) concerts, exclusive chat groups or the development of entire communities can bring enormous added value. There are no major obstacles for the music sector, neither technological nor organizational. Except for the prospect of also organizing music licensing income via NFTs, which for some artists should be more exciting than said fan monetization.
Aspects that speak in favor of the rapid incorporation of NFTs into the music industry also speak against NFTs in the Metaverse. While almost everyone consumes music, hardly anyone spends time in the Metaverse. Sandbox only has 30,000 active users per month. Metaverse blockchain is the industry leader with a market capitalization of approximately $3.5 billion.
This has nothing to do with widespread use. Instead, using an elitist image and marketing platform on which companies build useless landmarks so they can then put out a press release that they are now in the Metaverse.
In the long term, the potential of the Metaverse could undoubtedly be enormous, but in the short to medium term, it is overstated. One still asks oneself why one would want to spend more time on current metrics? Excluding test rounds and NFT speculation.
It lacks basic ecosystem and usability aspects. So if you’re banking on real, sustainable use cases, you’re better off with relatively simple music and lifestyle. Moreover AdvertisingThe fact that the developers behind Bored Ape Yacht Club also want to build the Metaverse doesn’t make these possibilities any better.
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