The non-virtual side of NFTs: VIP rights
What is this? This does not look like a J-shaped growth curve, but rather a cliff curve!
Undoubtedly, the NFT trend is continuing to grow drastically.
According to Dune Analytics, a statistical data platform focused on smart contracts, the world’s largest secondary market trading platform, Opensea, saw explosive growth at the end of July and August of this year (2021),
Let’s take a look at Opensea’s annual GMV (Gross Merchandise Volume), which is the total amount of all NFT transactions that occur on the platform.
- Approximately $473,000 USD (NT$13 million) in 2018
- Approximately $8,000,000 in 2019 (NT$220 million)
- Approximately $24,000,000 in 2020 (NT$670,000,000)
- Approximately $1,020,000,000 (NT$28.5 billion) in 2021 (January to early August)
From a different perspective, the cumulative NFT trading volume from January to August is quite impressive. Starting from a tiny volume in January to a figure of over $1 billion in August, that’s only eight months of trading I say, eight months!
Which makes me ask myself: what was I doing at 8 months old?
One of the two main reasons for this growth is the explosive growth of various pfp (picture for profile) auto-generated image categories (such as CryptoPunks, Bored Ape Yacht Club, and the recently mentioned pudgy Penguins).
Another reason is that many mainstream IPs have jumped in to make NFTs, allowing more mainstream markets that are new to cryptocurrencies to support their favorite creators, in other words, collect these rare collectibles.
These mainstream IPs, especially celebrities (such as singers, artists, influencers, etc.), will often attach some online or offline feedback in order to increase their NFT selling points and also reward purchasers for their early support so that the purchasers will have a stronger motivation to buy.
Some commonly seen ways of feedback online or offline today are:
- Concert tickets: Kings of Leon, the first band in the world to release NFT, allows buyers to buy an NFT that comes with a lifetime of VIP privileges to sit in the first row of every concert which lasts a lifetime! Fansi’s collaboration NFTs with Ma Nianxian also comes with a concert ticket, among which there is a special gold edition that includes two tickets to the concert and an invitation to watch the rehearsal of the concert, which is quite tempting.
- Exclusive interaction or content: This is also quite common, as many creators with a fan base choose to interact more with the community. For example, Gary Vaynerchuk’s Veefriends is an excellent example, with his entire NFT collection being designed to give his fans many perks after purchase. Each NFT can be used as an admission ticket to VeeCon for three years, and some special NFTs can give the buyer a chance to meet with Garyvee, discuss things, brainstorm, participate in some activities…etc.
- Participate in the production of artwork: another application of making a NFT(which is even more awesome), is to participate in some of the creative process of the creator, and even decide some of the direction of the work. The most famous example is the NFT of electronic DJ 3LAU. The highest bidder (platinum level) can let 3LAU customize a track for you. You give a direction of the genre, and he will make a demo out of the music. The next highest bidder (Gold) can also participate in a custom mix version. In Asia, Fansi’s collaborators, Vera and Keril, also have the incentive to involve purchasers in the production of their works. Vera allows NFT purchasers to provide their favorite songs and stories, and she will customize a chorus for them; Keril allows NFT purchasers to participate in the creation of the official lyrics, incorporating what NFT holders find to be the most romantic dating stories to be put into Keril’s official Chinese lyrics.
- Redeeming goods/giveaways: The easiest, most intuitive, and often the most accepted application is to directly exchange the token for a physical item. An example that immediately comes to mind is the Portuguese American musician/producer RAC’s previous $TAPE that can be exchanged for a physical album cassette. In addition, Fansi’s collaborator, DJ DAPUN, offers a t-shirt with the exclusive DAPUN IP; and our first collaborator, rap OG Lin Kim Mao(Ian Lin), offers NFT collectors who purchase the song “Grilled Sausage” to actually redeem a grilled sausage, which is quite relevant and creative!
Conclusion: Creators need to know their fans/collectors.
Based on “the theory of 1,000 fans”, NFTs can indeed help many small and medium-sized fanbase creators to not be controlled by large streaming platforms, to not be regulated by intermediaries on what they can do, and to build an unprecedented positive relationship directly with their supporters.
But the prerequisite is that the creator must know and understand who their fans are, what they like about you, what makes them excited, and how to manage their community. It is definitely not enough to just make good artwork but to get the message out and find those 1,000 diehard fans, take good care of them, and create a positive cycle.
Have you heard of other cool feedback ideas? Come share with us and talk about it!