Cultivating the New Creator Economy with Web 3.0

What is web 3.0?

The term “Web 3.0” was originally created by the co-founder of Ethereum, Gavin Wood in 2014. Web 3 in short, is an innovation of the internet that brings the mechanism of trust into technology. It is made up of emerging technologies such as blockchain, AI, VR, XR, NFT, Metaverse, and more. Using decentralization, equal access, and control as well as the exclusion of third parties, Web 3 has built up an enthusiastic community with a forward-looking vision that aims to forever change the world. Perhaps the most powerful aspect of a web 3 ecosystem is its ability to empower creators and owners of web 3 assets through transparency and a native payment system that transcends traditional banking or payment procedures. This has been a relatively positive step for artists and creators around the world as it not only brings more stakeholders online but also allows for such creators to grow a new economic segment that can address many existing issues they face with traditionally driven businesses and industries.

Content creation within the web 3 space has been seeing a rapid eruption with the rising trend of digital art-based crypto assets, namely, NFTs. While it is a new technology, many visual artists have embraced web 3 technology as the next step in the artistic and technological evolution of our society. Starting from pixelated images, NFTs have developed rapidly allowing for more trained artists and talented individuals to redefine creative experiences. Whether it is in the form of painting, animation, 3D modeling, or coding, the level of craftsmanship has grown rapidly, and with it, consumers are beginning to set a new standard for the content they consume in their daily lives.

With elevated artistic creations becoming more commonplace, the perception of what constitutes art is changing. This shift has captured the attention of the art industry as digital art begins to gain a reputation in the art world. Similar parallels can be seen in history. For example, photography was also not considered art until the 1940s and large-scale internet businesses saw a boom until it peaked during the dot-com bubble crash. For more traditional industries like art, and culture, NFT has become a new playground for interacting with a new generation of artists, collectors, and cultural enthusiasts. Artists are especially taking note of these changes with well-known art celebrities like Damien Hirst, Kaws, Jeff Koons, and many more experimenting with NFTs. At the same time, major cultural institutions such as the British Museum and Moco Museum are releasing their own web 3 projects. But what do they have to earn from all this?

Interested in finding out how the art & culture is changing through web 3 technology? Click below to read more!

Benefiting from innovation

With the Web 3 ecosystem, new business models are arising and with it, a new creator economy that is more open and independent from big tech platforms. While competitiveness is key for generating revenue, artists are able to have more control over how their art is used and the compensation that they can get through secondary sales and royalties executed through smart contracts. In fact, artists are seeing new opportunities as more brands and institutions begin to partner up to create highly valuable NFTs– that is not to say that it is easy to be an NFT artist. The value of an NFT is still mostly dependent on niche communities that are passionate about the potential of monetary growth in the future. Despite this, there is a definite reward for digital artists seeking proof of ownership enabled through blockchain technology.

The creation of an NFT can range from one creator to a large group of collaborators working together to create art-worthy experiences. This co-creation and co-branding aspect of NFTs and the Metaverse will generate a creator economy that will grow exponentially over time. On the other hand, one must be wary that not all web 3 projects will succeed in the long run. As NFT projects constitute bits of “smaller economies”, understanding the tangible value and impact of an NFT project will be a vital skill for any collector or enthusiast.

Why companies and large-scale institutions are investing in this area

Recently big name brands such as Nike as well as luxury brands like Gucci and Salvatore Ferragamo have been jumping onto the NFT bandwagon. The key reason for experimenting with NFTs for companies and large-scale institutions can be explained by the changing marketing trends tied to this generation’s demands. Consumer experiences have become extremely vital over the past few years with pop-up shops, offline to online experiences, and content-oriented promotions being commonplace. While this technique will still be a key method for attracting customers, there is a rising need for brands to focus on engagement and compelling content rather than traditional or digital advertising. As consumers begin to attach more value to digital assets, creating digitalized brand experiences will become more important than ever. By introducing these digital assets in the form of NFTs, consumers are able to experience owning a company’s good or service as they would in real life with clear ownership rights.

Another reason for investment in NFTs is the revenues and awareness that certain NFT projects are generating over time. While there are plenty of NFT projects that cannot achieve as much sales volume, bigger projects have seen exponential growth within hours of dropping their NFT collections. In 2021, CryptoPunk NFTs obliterated records when VISA purchased their NFT for $150K. With the purchase, CryptoPunk sales volumes increased by over 1,100% within 24 hours. Within a week, CryptoPunk saw a 50% increase in NFT prices with sales reaching up to $314 million in August 2021. Other success cases such as Beeple’s $69 million auction sale brought widespread attention to NFTs. Industries such as sports, IT, big tech, media, and gaming have already established new NFTs with this new upward trend.

Institutions and governments are also building their own web 3 solutions as of late. In Seoul Korea, the municipal government has announced plans for creating a Metaverse ecosystem for all areas of its municipal administration in order to improve planning, administration, and support of virtual tourism using digital twins and virtual reality. In 2022, The Kansong Art and Culture Foundation which runs South Korea's first private museum founded in 1938, the Kansong Art Museum, has also announced plans to create NFTs. It does so in order to generate new revenues to run the museum. In fact, the museum has been operating under debt since the pandemic and has had to unwillingly auction off two state-designated treasures: a gilt-bronze standing Buddha, and a gilt-bronze standing bodhisattva which was collected during the Japanese colonial era. For the foundation, this NFT project will be a new method for preserving treasured cultural heritage and support in maintaining it for future generations in a more sustainable way.

Approach it with a grain of salt

It is definitely easy to jump on the web 3 speculative hype that hinders its progression. While the market remains optimistic about its future, all stakeholders should take the time to understand the best method for engaging with NFTs and another web 3 tools.?

Although web 3 will help create a more decentralized marketplace for creators and collectors, it is clear that major companies will still have a say in the overall decisions of how people can partake in web 3. Also with security risks for cryptocurrencies, and NFT under discussion by governments, web 3 enthusiasts should not disregard the possibility of regulation in the future. The EU and several federal agencies are looking to decrease financial fraud and limit illegal activity. They have already drafted several guidelines and standards (i.e EU’s MiCA) that may become active within the next few years. However, this will not significantly impact the ownership rights or royalties for creators or collectors but rather set requirements for the token providers.

When investing in an NFT project, one must approach it as one approaches a brand. While NFTs and Metaverse may seem like a fun way to engage with interesting content, many NFT projects fail to build up their strategy and roadmap in the long run. Just because a project seems promising, it does not mean it will be. NFT creators are creating a business that has all the aspects a company should have. One must ask, what is the value and utility, who is the team and why can they be trusted? Do they have a clear roadmap and have they been investing in building their brand? What about their marketing? Furthermore, media portrayal of NFTs frequently highlights immense profits gained from selling NFTs. This is very misleading and may make NFTs seem like get-rich schemes. Key factors such as responsibility, trust, and value must all be questioned as we do with any big purchase. This is why many entrepreneurs have stated that over 90% of NFTs will fail.

That’s why Appreciator.io has set a higher standard for value and social impact with our new NFT platform. By combining the exclusive experience of fine art and a roadmap with distinct tangible value, we create Fine NFTs that serve major institutions and IPs, helping them to preserve their heritage and build a sustainable business model so that the world’s treasured culture can be appreciated in the future. With an experienced team that has delved into marketing, business strategy, big tech, tourism, as well as the art & culture industry, we aim to enrich the web 3 space with meaningful collectibles for the new connoisseurs.

What is Appreciator.io?

Appreciator.io is an experiential platform that collaborates with art institutions, IPs, artists, influencers, and brands for heritage preservation. Appreciator.io conceptualizes and creates NFTs, digital art, immersive experiences, and limited edition collectibles, which are then curated through the lens of the new wave of collectors in contemporary culture. It connects and inspires the new generation of collectors, especially those from China, to explore, learn, trade, and appreciate culture within its own web 3.0 eco-system.

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