What Makes NFTs Valuable, Anyways?
GM. This is the Mint—the weekly newsletter that's all about NFTs.
So far, Meta has spent $10 billion developing the metaverse of the future. It's surely developing state-of-the-art tech, right?
Wrong. This is all they've got from its new Horizon Worlds project.
Sheesh. That looks like a drawing I could've made in art class in second grade. You're going to have to do better than that, Zuck.
- Houston Texans Score Web3 Touchdown 🏈
- Why Should NFTs Have Value? A Breakdown 💰💭
- ABCs of NFTs - G is for GM 🌞☕
- Quick Hits 🎯
- Referral Giveaway - Winner Announced!!! 👏
Houston Texans Partner with Texas-Based Crypto Firm
The NFL season will be underway soon. That means that teams are beginning to announce the new partnerships they have made in the offseason. The Houston Texans are the latest of a long list of teams to partner with a crypto brand. They announced a partnership with BitWallet in an announcement earlier this week.
What this means →
BitWallet is a crypto wallet, i.e., you can buy, sell and store crypto using its app. The Texans are using this partnership to encourage people to use crypto to buy suites at their home games. They are the first NFL team to do this.
John: It was only a matter of time to see a pro sports team accept crypto to purchase tickets. Since you're in the Denver area, are you using ETH to go to a Broncos game this season?
Austin: Honestly, I'd love to, but the Broncos are a bit behind the ball when it comes to using crypto. Does crypto-friendliness equate to being good at football? If so, sign me up to be a fan of the Texans. The Vikings let me down every year.
John: Never thought of the Texans as the innovative pro sports team. I know Mark Cuban of the Dallas Mavericks is all over this stuff. They've done NFT giveaways for fans who attend games and he's been considering NFT season tickets since March 2021. The dude is an early adopter!
Austin: Speaking of Cuban... I heard he was trying to turn a small Texas town into a real-life Jurassic Park. What doesn't this guy have his hands on?
John: Only a matter of time until we can mint that mosquito fossilized in dinosaur DNA and have our own T-Rex NFT. Can't wait.
Why Do NFTs Have Value?
The fundamental NFT question these days is, why do these things have value, and why should I care?
The Mint Staff recently stumbled upon an article that did a great job explaining that very question.
The article broke down what an NFT is and what gives them its value. The author further divided the value of NFTs into two sides, perceived and functional value.
Perceived Value →
Most of the value in NFTs today comes from perceived value. The current NFT market is dominated by collectibles, primarily PFP (profile picture) collections like Moonbirds, Bored Apes, CryptoPunks, and Doodles. Like a pokemon card, vintage watch, or a 1985 Jordan 1, collectibles demand a ton of perceived value, and their NFT counterparts are no different. The great thing about NFTs is that they have digital permanence—you no longer have to worry about your prized collectibles deteriorating or being lost, as they are stored on the blockchain forever.
Functional Value →
This is where things get really interesting. The functional value of NFTs is why John and I are so excited about this technology and why we even write this newsletter in the first place. The author breaks down functional value into a few different categories. Here are two that resonated with us.
Proof of Ownership/Membership
NFTs are a public proof of authenticity, without the need for third parties. Proof of ownership is a game changer for luxury items, artwork, or collectibles, plagued by counterfeiting. Think of companies like PSA for trading cards, StockX for collectible sneakers, and PCGS for coins. NFTs inherently show authenticity. This has all kinds of use-cases down the road.
New Worldly Functions
With NFTs, content creators, like musicians, YouTubers, and artists no longer need to rely on Spotify streams, views, subscribers, or advertising dollars to make a living. NFT issuance is a direct connection between the creator and the customer. Creators can ingrain whatever perks into the NFTs that they think their fans desire: limited-edition items, access to VIP experiences, reserved tickets, front-row seats, voting on content direction, community networking, or even revenue-sharing through royalties!
The article does a great job explaining the possibilities of NFT technology and what we can expect from it in the next ten years. We highly recommend checking it out if you've got time.
ABCs of NFTs
G - GM!
GM! We've said it here at the Mint before, but GM simply means good morning! It's the go-to catchphrase for folks in Web3, and you'll see it on Twitter whether it is 8 am or 8 pm.
GM stands for good morning, but it really means, "Hey, I'm a part of this tribe! And if you respond with a GM, you are too!"
Check out this video for more on web3 slang like GM 👇
Quick Hits of the Week
1. Real Madrid and FC Barcelona filed a joint trademark centered on metaverse activities (crypto wallets, metaverse gaming software, and virtual apparel).
Our Take: Real Madrid and FC Barcelona are some of the most-followed teams in the world. Both teams have been working in the NFT scene for some time, so we're not surprised they continue to finance and research new ways to create revenue while also giving their fans new ways to experience the team.
2. Fox is using a dedicated Web3 and NFT division to differentiate itself from competitors and make up for lost revenue on streaming.
Our Take: We talked about the new Krapopolis show in a prior edition of the Mint. We were really impressed with how the new Fox show is using NFTs to improve the fan experience. It's apparent that Fox is putting a lot of thought and effort into this space, and we are glad to see them trailblaze a path for entertainment companies into web3.
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One Last Meme Before You Go
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That concludes this week's version of The Mint! Thanks for reading, and make sure to share your freshly-minted knowledge with your friends and coworkers.