I have always believed that we’d need complex solutions to solve the world’s complex problems. Web3’s clap back to troubling issues like distrust, privacy, and inequity: decentralisation implemented through blockchain technology.
In one corner of Web3 lies the use case of intellectual property, where we try to answer the question– how do we return to power and control back into the hands of original creators?
We’ve witnessed artists, writers, and inventors shafted over and over again, often exploited by the rich and powerful. While copyright laws were meant to prevent this, they seem to be lacking the teeth that safeguard our world’s dreamers and schemers. Enter the Non-Fungible Token or NFT, the intersection of art, tech, finance, and community.
Focus on the good
In 2021, this new digital asset class took the world by storm. PFP projects proved to be an easy entry into a space that was previously deemed intimidating. Fortunes were created for early adaptors who rode NFTs meteoric rise which explains why we’ve seen so many try their hand at creating a project.
Alongside the success stories are massive rug pulls as well. In non-crypto speak, projects have failed, with malicious intent or otherwise. Sure there have been bad actors, but as part of my new year’s resolution, I’m choosing to see the good in others.
Let’s just say that these rug pulls were projects that ran out of steam or were mismanaged. It’s one thing to dream it; it’s another to build it.
So the question now remains, how can we tell a project that’s gonna make it from one that won’t?
The need for T-shaped leaders
For a space that is so new, I’m very suspicious of those that vehemently claim expertise. There has hardly been enough time to accumulate those 10,000 Gladwell hours. All the more, if it’s a claim of expertise across all functions (art, tech, finance, community).
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Realistically, I don’t think we’d find someone who is proficient in all four domains, at least to the level that would lead a project to success.
For this reason, I think we should be looking for a good blend of generalised specialists that have proven themselves whether or not it’s been in Web3. My hunch is, it won’t be.
The proof is in the NFT pudding
Before you invest in an NFT, find out if a project has the complete suite. Good examples include Oni Squad, Jungle Freaks, Supernormal, and Fomo Mofo.
All of these teams don’t just have a superstar, each founder on their teams brings a wealth of experience that they’ve gained from their adventures in other industries and endeavours. That’s what you drill down for as you do your own research.
Smart art
“The art is incredible.” That’s what you will always hear as people entice you to buy into their projects. Art styles will come and go, and you will have to go with your gut on this.
One principle I standby is this: quality people, make quality things. Investing in art is betting on the artist’s career, that they will go on and create great things that resonate with many people.
For Jungle Freaks, the project is built around the legendary illustrator, George Trosley II. At 75, his hand-drawn, thought-provoking, editorial cartoon style has stirred the imaginations of those in Web3, just like they did during his heyday at Hustler magazine.
An already established female artist (digital and mixed media) in her own right, South Korean illustrator Zipcy, shakes things up giving a gentler, more human face to PFPs, both in technique and subject.
Out of Hawaii, Jasper Wong is channelling his mural, art instructor, and art direction experience into their Web3 project. Before NFTs, he’s already been using public art to uplift communities, and internationally at that.
He’s also cracked the formula to get the buy-in of brands and cities. Imagine that talent going into Fomo Mofo’s 8,008 generative art project.
You may be able to chance upon the next art wonder early on, but more often than not, you can get a sense of a creatives’ career path by their body of work. It just sings of consistency and growth. What makes me hopeful for this domain is that there is such an abundance of talent out there.
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As Wong puts it, “I feel that we are in an arts renaissance. I can’t think of any point in history where there are so many communities being built that are centred around art. It’s quite remarkable and I feel lucky to be a part of it all.”
Finance fundamentals
During the Renaissance, the arts were bolstered by patrons. Without funding, creators couldn’t focus on honing their craft and being their prolific selves. It’s no different in the NFT space.
This is why a solid NFT project needs people who are well-versed in finance. Business developers create strategies and offerings that allow the artwork to maintain its value for the duration of the project and hopefully beyond.
Subtle changes in tokenomics – burning, staking, initial coin offerings, pricing, partnerships to pursue – can make or break a project. Experience in crypto, what strategies you can employ considering Web3 nuances, can be vital and isn’t something that you just wing.
Because it’s Pavan Kapelli at the helm over at Oni Squad, it’s almost an unfair advantage. Kapelli has had a successful US$750 million exit out of his startup, Trilogy Education Services.
Currently, he also mentors startups allowing him to keep a pulse on the latest innovations. If that’s not enough, Oni Squad has Jason Lee on board as well.
At Omlet Arcade, a mobile game live streaming platform increased the user base from 10 million at launch to 70 million downloads. Undeniably, his experience in the gaming industry as well as business development and strategy work at Warner Bros make Oni a cut above the rest.
Wong’s art is made viable through the work of A$AP Ether. In his two years in the NFT space, which translates to decades in other industries, A$AP joined roughly 200 different communities. He’s condensed what he thinks works and what doesn’t to inform many of the decisions that they’re making in Fomo Mofo.
Cutting edge tech
The hero of NFTs is smart contracts. They self-execute the set of business rules that a project comes up with. When certain conditions are met, transactions are automatically carried out.
This is why the tech associated with a project has to be sound. The developers need to ensure they are accurate and efficient while making it user friendly via a front end site or marketplace.
At Supernormal, they have Andrew Choi, the tech lead at Coinbase in their camp. Andrew is no noob having stints at tech giants: Microsoft, Snapchat, Linkedin, IBM, and BlackBerry.
At Oni Squad, Kapelli plays multiple roles. His experience as a blockchain solutions architect at Metamask and Gitcoin proves invaluable. It helps him steer the team in the right direction.
To cover their front end and back end development work, they also have Eduardo Boarsa and Jonatan Pietroski to complete the roster.
Connected community
If I were to map what community is to its Web2 or IRL equivalent, it would be CRM. It’s almost like a loyalty programme if you think about it.
In a community, however, the relationships between project leaders and client base are so tight that it becomes more of an organic, co-creation kind of relationship, rather than a producer-consumer kind of dynamic.
This is why I think George Trosley III shines in his role at Jungle Freaks. His eight years in medical device sales has allowed him to develop an ear for the client.
He’s picked up the sensitivities that allow him to communicate the intricacies of the project and receive feedback, translating them into meaningful changes.
They put the community, the holders especially, front row and centre. And they’re thinking really long term. Concretely, Trosley III shares that they’re working on giving the community access to not just one metaverse but multiple.
They’re also creating partnerships with the likes of Netvrk to reward those who believe in the art with more than they’ve hoped for. Utility, before you even realized you wanted or needed it.
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Final thoughts
In NFTs, we find an elegant solution to incentivise those whose life goal is to make the world a more beautiful, functional, and just place. There’s definitely so much value to create.
All the excitement around the possibilities has made the market of both NFTs and the underlying cryptocurrency so volatile that you need a way to tune out all the noise.
We’re definitely going to experience a bubble, just like the dot-com boom. The task at hand is to figure out which projects are the equivalent of FAANG, the new blue chips and will be able to deliver value for the long haul.
When you see all aspects of a project come together and realise the experience needed to pull it off, vetting projects is almost like a science.
As Trosley III puts it, “I think the “lightbulb moment” for me was when you finally understand Web3 and NFTs and see the true value in everything that comes with them. Once you are able to see beyond the art and what that NFT can do and what these projects can create, it will give you goosebumps.”
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