MIAMI BEACH, FLORIDA – APRIL 07: A view of collection during the launch of social investing platform … [+]
2022 started well for the NFT and crypto market overall, however through dramatic sell-offs, and industry-altering shifts, the market – similarly to many others – isn’t performing as well compared to the start of the year.
According to Bloomberg, through data from Dune Analytics, trading volumes in NFTs (nonfungible tokens) have decreased 97% since the start of the year. The report states that there was $17 billion in volume in January, whilst September brought in $466 million. The data was pooled from popular sites such as OpenSea, Rarible, NFTX, LarvaLabs, Foundation, and SuperRare.
As mentioned above, NFTs and the overall crypto sector that makeup web3 (the new iteration of the World Wide Web that counts decentralization, blockchain technologies and token-based infrastructure as its pillars) are not the only ones being affected by soaring inflation and threats of a recession. However, with the market plagued by scams and new tax regulations coming into play, the market is unique in how it has been affected. Where does the sector go from here and what does a bounce back look like?
Adam Da Cata, the founder and CEO of the blockchain, metaverse and NFT development studio Run It Wild, and former Head of Partnerships at Decentraland, is known as a go-to resource for brands looking to successfully pivot into the web3 arena.
On the current climate, he opined, “I still think it’s just scratching the surface of its potential,”
“A lot of sectors are being affected by the downturn in markets, but web3 is specific in that it’s still finding its feet in our society. So it’s grappling with growing pains and a shaky marketplace.”
“In my opinion, there’s no better time to jump in, there are tons of opportunities with how fast the space is growing. General media reports that NFTs are struggling, constantly reporting the price of pieces of artwork, and what they were once worth, but fails to talk about the adoption curve and the momentum NFTs still have even in the bear market.”
According to data compiled by licensed trademark attorney Mike Kondoudis, the total number of trademark applications for NFTs and their respective products in the U.S. went up from 2,142 in 2021 to 6,856 as of October 2022.
De Cata’s company, Run It Wild, was acquired by public company NFT Tech in July 2022. Previously he was an executive at Warner Bros., managing iconic brands and media franchises such as Batman (worth $29.9 billion) and Harry Potter (worth $33 billion). He has also worked on notable projects such as the first fully on-chain Elvis NFT for the Estate of Elvis Presley; the onboarding of Sotheby’s, the famous 250-year-old auction house for their first Metaverse experience; and web3 strategies for Coca-Cola KO , Unilever UL , the Australian Open, and Samsung.
On how the entertainment sector’s future is aligned with the NFT and wider web3 space he continued, “Media and entertainment have the biggest opportunities, from sports to large brands with huge fan bases. NFTs unlock further ways these brands can interact with their fans and additional ways to monetize.”
Netflix’s NFLX recent blockbuster hit, The Gray Man, starring Ryan Gosling and Chris Evans also took a stroll into NFTs through Media.Monks, a digital advertising agency. The company helped Netflix build a metaverse experience for the film where users navigate a 3D maze whilst answering questions about the film. If they answer all the questions correctly they have the opportunity to win a Non-Fungible Token (NFT) in a prize draw.
“Enter the maze, find the fastest route to the fountain, retrieve the USB with classified information and get to the secret room as soon as possible,” the mission goal states
In the first week of the experience going live 2000 people accessed the metaverse on Decentraland. Diego Alvarez, the senior business developer at The Electric Factory, the programmers and architects behind the game itself said that the metaverse is ultimately “about having fun, about getting in touch with other people here. And that’s why we have this stimulus [trivia game] that makes you feel like you are always doing something.”
He also went on to iterate that those who are first movers into the market now will have a much better understanding of how it can be utilized for their audiences in the future.
MIAMI BEACH, FLORIDA – APRIL 07: A view of collection during the launch of social investing platform … [+]
Da Cata concluded, “We believe that NFTs and web3 will transform the industry in the same way the internet and streaming services did. NFTs allow fans to access and own exclusive content while allowing artists and NFT creators, like ourselves, to set rules on how this exclusive content is consumed while generating revenue. We’re already seeing how creators are embracing the technology and the utility it brings to the industry’s IP, licensing, and community.”
“The possibilities are endless working within the entertainment industry. Similar to what Harry Potter has done in Universal Studios, the ability to make digital experiences and content for major brands have major opportunities for NFT Tech.”
With the new age element of the industry, NFTs are still being brought into mainstream consciousness concerning how they can be utilized. The culmination of the current bear market coupled with increased education around the sector will be an interesting watch. Regardless, the entertainment industry is a certain growth area for the technology as it continues to integrate with media brands, film festivals, and content.
