NFT News and Drops
New Espanyol NFT Drop
Our first 200 Cool Pericos NFTs were released last weekend and sold out quickly. Did you manage to catch one? If you don't have a Perico yet, don't worry! This weekend another 500 Pericos will land in Fayre's marketplace. Catch yours before they fly away!
What's New This Week?
The Social Token Paradox
We’ve mentioned how brands are successfully using digital collectibles to engage with their audiences. We’re also seeing this happening with social tokens - cryptocurrency being created by companies and individuals, which can be used to monetise their skills or services (the creator economy) while transitioning to a new concept of ownership that is shared with the community.
This brings us to the Social Token Paradox. When creating a social token, at first a small (and exclusive) community gathers together and purchases tokens that represent their membership. As the community grows (with members lured by the exclusivity factor), so does the value of the token. Driven by the Fear of Missing Out the number of members continues to grow and, as a result, exclusivity decreases even though token price appreciates. The result is a large non-exclusive community with a high-priced token. This is followed by members exiting until the equilibrium (member/token-price equilibrium) is met again.
For this reason, it’s important that these projects keep innovating and growing their own value proposition by improving their products and services and/or transitioning to a model that is not reliant on the exclusivity factor. Perhaps all along the answer lies in the community?
Web3 Never Sleeps
- Pumping the Ethereum network: BAYC startup generated $561 million in NFT sales over a 24h period.
- BlackRock: launches an ETF that seeks exposure to companies associated with blockchain tech and crypto assets.
- PayWall(et): PayPal to increase its efforts on digital wallets.
- In the name of gaming: Gaming publisher to sell assets to fund transition to blockchain-based games.
- Metalomania: Dubai is known for its exuberance and this time it's their crypto regulator moving into Sandbox.
- Old School: Warren Buffet (still) isn't bullish on Bitcoin.
- $69 million later, Beeple is not in it for the money: and shares his thoughts on the direction he sees NFTs heading to.
Use This Ice-Breaker Next Time You Need One:
If you own a crypto wallet, you should be familiar with the concept of “seed phrase”: a series of words that unlocks access to your wallet. It's like a master password and you can consider it like your bank account number, your social security number, date of birth, home address, PIN codes - all in one. One of the basic principles of crypto is the idea of “self-sovereignty”, namely being able to access your wallet/assets without having to prove your identity. That’s granted. The down side is if someone gets hold of your seed phrase, there’s no turning back and they can take ownership of all your crypto assets. Hence, why it is important you keep seed phrases in a safe place.
The (Orange) Elephant in the Room:
He Did Try and Warren Us! But What About Gold, Ser?
That's it for this week's full scoop! Please feel free to comment, share and discuss NFTs with us, we're here to help. Stay sweet!??
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The information in this email is provided by Fayre Group Ltd. (BVI) on an indicative basis only and shall not be considered binding or final in any way. Fayre Group Ltd. (BVI) reserves the rights to amend any of the parameters stated in this email with no notice. The sale is not offered nor available to US residents.