With the floor price of the so-called "blue-chip NFTs" decreasing, as well as the recent poor performance of @Azuki Elemental and @Memeland, and the average FOMO effect of the new game from @BoredApeYC, the NFT market is facing an unprecedented crisis. The myth created by PFP narratives during the bull market, after being tested by time, is gradually being debunked. The extremely low survival rate of projects and the arrogance and difficult balance of expectations brought by the winners-take-all mentality have led to today's overall decline in the NFT market (PS: @WeirdoGhostGang is still strong).
So today, let's briefly discuss the possibilities for the next breakthrough in the NFT market cycle. Here are my personal opinions, and I welcome you to share your insights in the comments.
[PS: The following scenarios are listed from easy to difficult]
I. Membership Cards
Similar to the Pass card gameplay, holding an NFT becomes a VIP membership for a certain project, brand, or platform. In addition to identity differentiation, members can also enjoy exclusive services, discounts, points redemption, prize pool draws, online and offline merchandise, and gifts. Essentially, the whitelist benefits of NFT projects are also part of this gameplay.
Pros: Flexible threshold, can be low or high
Cons: Continuous work, introduction of cooperation
II. Data Storage
Music NFTs can be seen as a demonstration of the functionality of data storage, and the storage format of NFTs is not limited to text, images, audio, and video. Essentially, this is also a way to open up the creator economy, and the threshold is relatively low. People are not buying NFTs, or not just NFTs, but rather the stored data or content.
Pros: Simple functionality, diverse forms
Cons: Content requirements, payment segregation
III. Game Invitations
Games can be big or small, from casual games like 4399 and 7K7K (such as Sewer Run and Monkey Box) to AAA productions like Phantom Galaxy and Ultiverse. NFTs can be used as closed beta invitations or proof of rights for big players.
Pros: Strong entertainment value, low user understanding cost
Cons: Short elimination cycle for games, high production requirements
IV. IRL Equity Tokens
In the post-pandemic era, people who desire offline physical space contact naturally find offline equity more attractive. Experiences such as dining, entertainment, clothing, housing, travel, and shopping can bring NFT holders together to create collective memories. On the other hand, it can also stimulate brand consumption and loyalty improvement. Compared to invisible and intangible online membership cards, the quality of IRL equity depends only on the quality of offline services.
Pros: Direct benefits, tangible experiences, wide target audience
Cons: Long time-consuming, high costs, difficult operation
V. O2O Ticket Proof
Imagine that with just an NFT in your wallet, you can enjoy various scenarios such as museums, art exhibitions, concerts, and music performances. Isn't that cool? In the industry, there have been explorations of NFT ticketing applications and transformations by Ticketmaster and nft_tix.
Pros: Transparency, easy traceability, low distribution costs
Cons: Long process, outdated industry, privacy verification issues
VI. Qualification Resume Proof
As a non-fungible token, NFTs to some extent play the role and function of Soulbound Tokens (SBT). Now, a crucial part of the Web3 community's activities is to obtain early NFTs from projects as proof of participation, whether through simple social media tasks or on-chain transactions. The obtained NFTs can be considered as part of the on-chain resume.
In addition, the on-chain reputation value of the Web3 community needs further development. It is possible to visualize one's work experience as an NFT and use it as an industry endorsement or consulting certification. These are directions that can be expected in the future.
Pros: Clear and intuitive, clear rights and responsibilities
Cons: Counterfeiting issues, testing the circulation ecosystem
VII. RWA Equity
Real World Assets (RWA) is not a particularly new concept, but in the packaging and tokenization of Web3 narratives, people may be preparing for the real "Metaverse," mapping real assets as various concepts of equity, bonds, and fragmented packaged assets. The emergence of lending protocols can also attract more players to some extent.
Of course, NFTs can also play a role in this process, as the boundaries between ERC20 and ERC721, ERC1155 are gradually blurring. Fragmenting NFTs into tokens or airdropping tokens to NFT holders are common on-chain operations and marketing gimmicks. Even CityDAO can try this approach to expand its narrative imagination space.
Pros: Low entry threshold, high return expectations, broad market space
Cons: Policy regulation, realization of rights, packaging risks of junk assets
Finally, here are some questions to ponder:
- What do you think will be the main theme of the next NFT market cycle?
- What practical use cases will emerge and lead the next bull market?
- What kind of Web3 projects (not limited to NFTs) can guide 100 million people into Web3 and transcend the bull and bear cycles?
Looking forward to your sharing and personal reference answers!
Author: wenser
Twitter: https://twitter.com/wenser2010
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