kicking off a panel at the recent GamesBeat Next 2023. The problem, he added, is that blockchain has produced its own centralizers, such as disgraced crypto company CEO and billionaire Sam Bankman-Fried, who may have single-handedly propped up the ...

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AI, blockchain, other technologies contributing to future of local agriculture Issued by icomm for Datacentrix Holdings Johannesburg, 01 Nov 2023 Visit our press office Read time 4min 30sec Comments (0) Innovative tech can help to alleviate global challenges like food security and wastage.

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Dubai is paving the way for a Web3 future by implementing a robust regulatory framework for digital assets and offering commercial licenses for Web3

It’s clear that not everyone is sold on the power and potential of blockchain. The bear market ... sweatshirt received “premier access to the next era of my records.” Buyers could scan ...

Singer Vérité’s fan-first approach to Web3, music NFTs and community building

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When you get together with your family and friends, you’ll likely hear some talk about NFTs, but more than likely it will be a regurgitation of something read or seen off the internet. Most people (bloggers and journalists included) don’t have the time or the dedication to dive deep into it or really think deeply about blockchain. The truth is that if you look at most publications including Forbes, Washington Post, and even Time, they don’t get the details of this blooming industry right. Journalists try to act like authorities in a space that they know little about and create blanket statements about entire industries that don’t help people understand what NFTs are really about or the technology behind them. All these publications hope to explain is how something that is mainly a digital certificate could generate so much interest and buzz. To be fair, it’s a hard concept to get right, layered with nuance, changing technology and open to many interpretations. ‍ A Look Back to Go Forward This reminds me of a 1995 video clip of Bill Gates trying to explain the to David Letterman who just didn’t get it. Letterman wonders why anybody would want to listen to a baseball game on the internet when the radio was working fine for generations. importance of the internet “What do I get that I’m not already getting now?” Letterman asks Gates. Letterman seems genuinely perplexed by this new technology. He wasn’t alone. Almost nobody knew what the internet would be used for, what its purpose was, or how it was any better than what we already had. It’s easy to simplify the NFT narrative to fit a particular point of view. There is no question that NFTs have disrupted the entire art world, its effects going far beyond just the digital landscape. To understand what goes on behind the scenes and what creating a generative NFT collection we had a conversation with the team behind Crypto Pharaohs, a generative NFT art collection inspired by the ancient Egyptian Civilization. Many people remain misinformed and associate NFTs with cartoonish, pixelated garish drawings. Although there are many collections like that out there, the reality is that there are also many serious artists. Melissa Morgan, Lead Designer of Crypto Pharaohs said: “Creating a generative NFT collection requires planning and it requires a deconstruction of the artwork even before its constructed. As I was creating the artwork for Crypto Pharaohs, I had to build up layers that when combined together in a certain order gave me a beautiful final image. These layers were programmatically generated resulting in multiple characters, each unique and each with its own set of characteristics, from head pieces, jewellery and accessories to skin tone, hairstyle, eye shapes and make up. The result is that every owner has a one of a kind piece.” When looking at NFTs it’s not so much the technology that is good or bad, but the people behind it that matter and what they do with it. A lot of the online social content is about what NFTs are currently, not what they will become. We look at the value of NFTs and how they are skyrocketing and we think that the story because it’s something that is easy to quantify. An NFT used to be worth $10 and now it’s worth $20. Simple, right? It doesn’t take any leaps of imagination or creativity. is That is not the case though. NFTs are much more than the price tag attached to them, they are a way to truly democratize art; allowing someone in Sub-Saharan Africa to view a Monet or Picasso for example; or discovering talent from rural towns and villages created by artists that may be unknown to us and showcasing their work on the international art scene. This technology is changing the way we create, view and interact with art. It is a way for people to experience culture and be part of a narrative. Hussein Hallak, Founder and CEO of Next Decentrum Technologies Inc said the following, “Growing up in Damascus, I didn’t have access to the works of world famous artists, today I can change that. Using blockchain technology we can create platforms, such as momentable.ai that are dedicated to museums, galleries and artists. We can truly democratize art while protecting the ownership and intellectual property and copyright to that art through the NFT smart contracts. When we created Crypto Pharaohs, we were able to take the Egyptian civilization that has inspired the world and make it relevant and accessible to those who love it in a new way.” It is very important to educate ourselves on NFTs and Blockchain technology because it’s a technology that has many applications, only one of which is digital art. Taking the time to research and learn is vital because of what is coming next. An Evolving Platform NFTs can be seen as a test case for a much larger and rapidly evolving blockchain space. That space, known as Web3 is yet to be realized but is the next evolution of the internet, one that is centralized with fewer huge tech players and more peer-to-peer technologies. What this will eventually look like, nobody knows. But whatever it is, Web3 is coming and we are all trying to figure out what it means and how it will play out. The tough part is that we all get to embrace the role of a futurist because its evolution will be less around a few power players and more collaboration. For a while now, artists have been able to express themselves digitally but NFTs give artists a way to make a profit from their labour and spend more time creating possibilities that are only limited by their imagination. While this new space, the true NFT artists have likely not risen to prominence yet – in fact, they might not even have been born. Who is to say? But there will be the Leonardo Di Vinci of NFTs – work so beautiful and profound that when we view it, the art piece will take our breath away. Their potential, however, is much wider and could be used in all types of contracts, ticket sales, and even the buying and selling of land. But what’s really exciting isn’t any of those applications. It’s that NFTs will be used in ways we cannot even comprehend. By: Hussein Hallak

Blanket Statements Do Not Help Define NFTs

Las declaraciones generales no ayudan a definir las NFT

Being able to make a living creating art is every artist's dream. And when the popularity of digital collectables exploded in 2021, it seemed that dream was becoming a reality. The rise of has opened a door for artists to create and distribute their work without relying on gatekeepers such as galleries, auction houses, publishers, or record labels. But even better, artists could actually make money with digital art – and sometimes lots of it. Web3 However, as with any new technology, there are also risks associated with Web3.  While Web3 is supposed to be decentralized, a few digital collectable marketplaces are dominating the space, concentrating power into a few companies like OpenSea, which has over as of February 2022. This allows OpenSea to dictate their terms to the creators on their platforms and, to some extent, the entire industry. 80% of market share Marketplaces like OpenSea and Rarible are supposed to be a haven for artists in the age of decentralization, but when marketplaces like Blur and LooksRare decided to stop paying artists royalties– one of the main benefits of selling on these marketplaces, all that seemed to be in jeopardy. The OpenSea Predicament According to a study by Galaxy Digital, a crypto firm, more than have been paid out to creators. Although OpenSea hasn't released the data publicly, it has undoubtedly paid out the most royalties of any other marketplace by a large margin. However, creator royalties aren’t enforceable at a technical level, meaning there is nothing on the blockchain that makes the seller pay the royalties. In the end, it’s up to the different marketplaces to honor the request or not. $1.8 billion in royalties On November 7OpeSa announced they were considering changing their position on royalties which saw significant pushback from the community, urging OpenSea to clarify its stance on what “optional creator fees” were and how they would work. Some creators cancelled or moved their drops away from OpenSea after the announcement was made. Other projects like BAYC released their own statements criticizing the largest digital collectable marketplace. If OpenSea decided not to pay royalties, many other marketplaces would likely follow to try to remain competitive. After some debate, OpenSea has decided to honour royalty payments – at least for now. However, OpenSea said it is still debating what it considers “a thoughtful, principled approach to the topic.” So, what does this mean to artists and creators? The trust in marketplaces has been shaken. Artists might no longer be able to rely on OpenSea – or any digital collectable marketplace- to have their best interests in mind. If creators are unable to collect royalties, then it will significantly impact how they make money – $1.8 billion is not an insignificant amount of money, especially for artists.. This is a dangerous precedent for other marketplaces in the space and a step backwards. If OpenSea, the largest marketplace for digital collectibles, can get away with not paying royalties, what's to stop other platforms from following suit? To remain competitive, it could potentially lead to a race to the bottom, where marketplaces compete to see who can offer the lowest prices for digital art. This would be detrimental to artists and creators, reducing their earnings and potentially pushing them out of the market entirely. It's becoming increasingly apparent that marketplaces aren’t there to help creators but rather to look at their own self-interest first. This is despite the fact that it was the creators who initially championed marketplaces like OpenSea, to begin with. These marketplaces seem to see the collectors as their customers – not the creators. This would be a mistake. At the end of the day, the marketplaces will need to do a better job of balancing the needs of the creators and their ability to make a livable wage through their art and the needs of the collector who wants to maximize their buying power. Marketplaces Aren't a Long-Term Solution The emerging trend is that marketplaces that thrive in Web3 and the concept of decentralization are leaning towards the benefit of traders. And while this may be good for business in the short term, it's not a sustainable model in the long term. The reason is that these marketplaces are built on trustless platforms, meaning there are almost zero rules and regulations. This gives traders much power and leaves artists and creators at a disadvantage. So, while it's understandable that marketplaces want to attract traders and encourage transactions, they need to find a way to do so without sacrificing the interests of artists and creators. Otherwise, they risk killing the very thing that makes their platform valuable in the first place. Instead of providing artists and creators with an avenue that'll help them thrive, they'll be driving them away. How to Avoid Marketplace Changes The way forward for artists and creators is to stop relying on third-party platforms to sell their digital collectables. Instead, creators need to have an online storefront like or their website that connects them directly to the collector. Momentable This not only builds a stronger relationship, but more importantly, it gives the creator complete control over their online collection, how it’s presented, how it’s sold, and the royalties collected. Additionally, as with any, relying on any type of sales channel or marketing strategy is generally unwise. Artists need to continue building their own platforms and audiences so that when marketplaces make changes out of their self-interest, creators have alternatives and aren’t left out in the cold. The Role of NFTs in Ensuring Web3 as a Safe and Secure Space for Creators Digital collectables need Web3 to be a safe and secure space for creators. By establishing provenance and ensuring that artists and creators are fairly compensated for their work, digital collectables help to create a more sustainable ecosystem for artists everywhere. The key is to retain the royalty system that's currently in place. This will ensure that artists and creators are compensated for their work when it's resold on marketplaces. If the royalties-based system is phased out altogether, it really is a step backwards for the Web3 movement.

Why Digital Marketplaces Are Not to Be Trusted by Artists

How are museums using NFTs, and perhaps just as intriguing, why are they using NFTs? Because it’s more than just a revenue stream to make money. In fact, if museums just think of museums in terms of dollars and cents (or, in this case, crypto), then they will most likely fail to make a real and lasting impact. For hundreds of years, museums are institutions that collect, protect and interprets object, artifacts and other material evidence of human history, as well as of nature and make them available to the general public. The rise of NFTs has coincided with the spread of the pandemic. While wasn’t the only reason for the popularity of NFTs and blockchain technology, it shows just how fast the industry is growing and how many people are embracing NFTs and their potential implications. COVID While celebrities, brands and sports companies have been early adopters, museums are generally slow to take on anything new. However, the shutdown of tourism and world travel has forced them to think outside of the box. NFTs are the perfect opportunity and have all but fallen into the laps of those looking to not only raise funds for museums but offer a new experience to patrons and museum-lovers who can’t travel. Last year, the British Museum in London converted Japanese painter Hokusai's famous works into NFTs. And recently, the museum announced that it is extending its partnership with LaCollection to digitize . William Turner's artworks The idea is that users get to purchase these digital tokens, which represent the artwork. These can then be displayed on digital walls as an NFT. A portion of the proceeds from these token sales will go towards the museum itself. In this way, they fundraise and generate income without resorting to selling physical assets. So how are museums using NFTs and perhaps just as intriguing, why? Because it’s more than just a revenue stream to make money. In fact, if museums just think of museums in terms of dollars and cents (or, in this case, crypto), then they will most likely fail to make a real and lasting impact. The Revolt Against Tradition Manhattan's New Museum was one of the first to adopt the technology by announcing a program of events meant to open discussions about the prospect of transitioning to the digital world. While the museum, in itself, is already a symbol of change in the art industry, this new program is a showcase that it's willing to break tradition. According to the museum's website, the initiative is a call to action for artists, technologists, and other cultural producers to consider how they might work together to create new structures for supporting the production, dissemination, and collection of art in the digital age. This is a revolt against convention. At the forefront of this shift are NFTs, the most significant technological innovation in the art world since the internet. The rise of NFTs has led to a new way of thinking about value, authenticity, and ownership. It has also called into question the very idea of an art object and what it could be. Virtual Experiences Many prominent museums have been offering making it possible to visit Paris, New York and Florence from your computer. These include online tours, 3D renderings, and even augmented reality (AR) and virtual reality (VR) simulations. virtual experiences But there's more they can do than just upgrade a visitor's virtual experience. For example, the world's first-ever full-time NFT museum, the Seattle NFT Museum, opened its doors early this year, intending to explore the potential of this technology. The museum hosts exhibitions and events that feature a variety of NFT-based artworks. These include everything from audio recordings and videos to 3D-printed sculptures. The museum's "Climate Conversation" exhibit features artworks sold as NFTs with the option of being printed in physical form. Fundraising But of all the motivations for embracing NFTs, nothing is more apparent than the fundraising potential. The possibility of creating a new revenue stream is too great for museums to ignore. Russia's Hermitage Museum leads the way in this regard – at least before the sanctions. The institution minted a substantial portion of its massive artwork collection (including a Da Vinci) into and sold them in their digital form. Driven by the instinct to survive, the museum may have even defied its country's long-standing aversion toward anything that resembles crypto. NFTs Fundraising through NFTs makes sense on many fronts. For one, it allows museums to generate income without selling any of their assets. Likewise, it also allows them to engage with a new and growing community of art collectors and enthusiasts. And it's not merely about the money. Embracing NFTs through a new platform for marketing their collections to a wider audience. With the help of blockchain technology, these NFTs can be authenticated and tracked. This gives rise to a new level of transparency that can help build trust between the institution and its supporters. fundraisers efforts To Educate Perhaps even more noble than making a new revenue source is the fact that some museums are opening their doors to help educate the public about NFTs. It brings about a sigh of relief, knowing that a historically traditional industry ultimately gives in to change for the betterment of all. In May of last year, the Smithsonian's Hirshhorn Museum conducted a comprised of entrepreneurs, artists, and curators to talk about the impact of NFTs in the art world. The focal point was the question of whether NFTs are a fad or will it be the art's future. panel discussion In the same month, the Brattleboro Museum invited prominent author Anne Spalter along with a few local artists and academics, to discuss the in the art market while also exploring the potential of new art forms brought by this change. impact of NFTs When museums take the initiative in exploring the implications of NFTs, it says a lot about how this revolution will eventually unfold. Preserving Culture NFTs are indeed the complete opposite of how traditional art and museums operate. But it doesn't mean they can't find a way to co-exist. Museums are some of the most important cultural institutions in the world. They preserve and promote art, culture, and history. In a rapidly changing world, museums are more important than ever to stay relevant. And one way they're doing that is by embracing new technologies like NFTs. NFTs offer a way for museums to collect, curate, and exhibit art by engaging with the public in a new platform and educating them about the ever-changing art world. NFTs also allow cultures to protect what is lost. During the war in Ukraine, there is a massive amount of destruction. The World Bank has estimated at least of damage has been done so far. Unfortunately, it’s impossible to know how much art has been lost (and perhaps we’ll never know the full extent) but it’s safe to say a significant amount will never be seen again.  In 2012, several buildings in Timbuktu, including 14 priceless mausoleums which were part of the World Heritage site, were . These are just two recent prominent examples. There are many more. While nothing can replace the physical buildings and works of art, at least if they are preserved through NFTs, they might be part of the new metaverse so it can be enjoyed by future generations. $60 billion worth destroyed by war Last Thoughts There are many reasons museums should be embracing NFTs but perhaps the most important is they are the future. NFT technology is here to stay and will only get adopted by more people, brands, and institutions. It won’t be long before people can hop into the metaverse and visit all their favourite museums from the comfort of their own living room. This should be something that all museums should be moving towards. By Hussein Hallak

NFTs Are More Beneficial to Museums than You Think

NonFungible recently came out with their quarterly market report and so we decided to break it down so you know what it means for the average creator, collector, and investor. The second quarter of 2022 saw a historical low for cryptocurrency. With Bitcoin's value steadily going down for the past several months, the trust in digital assets has dropped. Along with it, the prices of NFTs have significantly decreased as well. Even if NFTs aren't technically crypto, it's no surprise that the entire ecosystem of the former is currently facing a downbeat. Secondary market prices for NFTs have declined, with some hitting an all-time low since early 2021. It's not just the lack of interest in cryptocurrencies that's brought down the NFT market — it's also due to the mounting concerns over the long-term sustainability of the entire industry. The problems with Ethereum gas fees and scalability have made it difficult for NFT projects to maintain their momentum, while the increasing regulatory scrutiny is casting a shadow over the future of digital assets. But don't be too quick to write off NFTs just yet. While the short-term outlook may be bleak at this point, there's no shortage of reasons to be optimistic about the future of the NFT space. What Happened in Q2? According to The Block Research, NFTs' trading volume for the months of April, May, and June reached $12.22 billion. While this appears to be a decent figure, it's a significant drop from the $33.8 billion in Q1. This marks an almost 64% decrease in just three months. While these numbers show that the overall interest in NFTs has waned, it must be pointed out that the secondary market is not the only place where NFTs are traded. A large portion of NFT transactions still happens through direct market sales, which are not included in The Block's data. Despite this, there's no denying that the secondary market is going through a rough patch. Platforms like OpenSea and Foundation have seen a decrease in trading activity. Yet again, some reports online aren't providing a complete picture. Prominent stakeholders are still at it. If the NFT ecosystem has indeed slumped, then why would Coinbase proceed with the launch of its Ethereum NFT marketplace in beta version, or why is Starbucks suddenly announcing its first investment in NFTs? Meanwhile, you probably still remember Beeple, don't you? The American digital artist who played a key role in driving up the interest for NFTs last year teamed up with no less than the Queen of Pop herself, Madonna, to launch the latter's first-ever digital art collection. It was a pretty big deal back in June. But arguably, the two biggest newsmakers in the world of NFTs in Q2 of 2022 are eBay's acquisition of the prominent marketplace, KnownOrigin, and Mastercard's decision to allow its users to buy NFTs in selected marketplaces. So, not a bad time of the year after all. NFTs Might Be Down But Not Out The current market conditions may not be the best, but it's nothing that the NFT space hasn't gone through before. In fact, this isn't even the first time that cryptocurrencies and digital assets have seen a major dip metrics-wise. The one thing that many observers are taking a closer look at is "resale profit."  This is defined as the difference between an NFT at the time of acquisition and its price when resold. In other words, this metric seeks to measure how much an NFT holder has profited (or lost) from reselling their asset. Based on NonFungible.com's report, the total volume of resale profit for NFTs in Q2 is $1.88 billion. The drop is quite significant compared to the first quarter's $3.50 billion. But is it a legitimate cause for concern? We think not. A small number of whale sales largely drove the total resale profit for Q1. When you look at the top 10 resale transactions for that quarter, six of them were worth more than $5 million. Three of those were even over $10 million. In other words, a small number of very high-value transactions drove up the total resale volume for the entire quarter. This is not exactly indicative of a healthy and thriving market. On the other hand, Q2's top resale transactions only had one that was above $5 million. The rest were all under that mark. In fact, the top resale transactions for Q2 only generated a total of $37.5 million in profit, which is still a lot of money but a far cry from Q1's $213.4 million. So, what does this tell us? For starters, it shows that the market has become more decentralized. Fewer whales and more individuals are participating in the market. This is good as it indicates that the NFT space is becoming more accessible to regular people. It likewise shows that the market has become more efficient. Whale sales in Q1 were largely driven by hype and speculation. A small number of big players were artificially inflating prices. This is no longer the case in Q2. Prices have stabilized, and transactions are made based on actual value and utility rather than speculation. This is a sign of a maturing market and is a good thing in the long run. So, while the total resale volume for Q2 may be lower than Q1, we believe this is not indicative of a declining market. Rather, it indicates a market that is becoming more efficient and decentralized. And that's something to be excited about. Segment Performance There exist a handful of segments that make up the NFT ecosystem. It's inaccurate, even unfair, to judge the whole space's performance based on a single segment's performance. With that said, let's look at how the different segments of the NFT space have faired in Q2. 1 - Art NFT art remains king this year. Even with a substantial decline in total volume, art NFTs are still miles ahead of the other segments in total transaction value. In Q2, a total of 170,000 art NFTs were sold. This is a significant decline from Q1's 400,000 art NFT sales. But the total volume for Q2 is still higher than any other quarter before. So, while the growth has slowed, the market is still expanding. In terms of the total value, art NFTs generated a total of $430 million, a figure that epitomizes the resiliency of the segment. 2 - Gaming Suffice to say, and the gaming segment had a rough start to the year. The number of active wallets dived from one million last year to about 300,000 after Q2. While you can easily judge this as a decline in interest, the truth is it's never indicative of what transpires on the ground. For instance, not all players maintain or have existing wallets. The primary reason why gamers maintain active wallets is for trading purposes. Hence, you know there are players out there who are interested in the games, but they don't necessarily have or need an active wallet. This is one of those cases where the number doesn't tell the whole story. The fact is that gaming NFTs are still some of the most popular and best-selling items in the market. 3 - Collectibles This segment retains the title of the fastest-growing segment in the NFT space. In Q2, the total number of collectibles sold doubled from Q1. This is an incredible feat considering that the total volume for Q1 was already quite high. The total value generated by this segment also saw a massive uptick. Remember that we're talking about the volume of dollars traded here, not the price of individual NFTs. So, while the average price per collectible NFT has remained relatively stable, the total number of transactions has increased dramatically. This sign that the segment is becoming more mainstream and that more people are participating. 4 - Metaverse A rather unfamiliar segment for most people, the metaverse is essentially a virtual world where users can interact with each other. Think of it as a cross between Second Life and The Sims. While the art and gaming industry experienced stunted growth or decline, the metaverse segment is flourishing. This segment saw some incredible growth this year. In Q2, the total number of transactions increased, highlighted by the LAND sale by OtherDeed. The total value generated by this segment also increased substantially. This is partly due to the increasing number of high-value transactions and increased activity. 5 - Utilities This is the final and perhaps most important segment in the NFT space. The utility segment comprises NFTs with some sort of function or use case. This can be anything from a digital currency to a loyalty points system. Utility NFTs have real-world applications. And as more and more businesses begin to explore the use of NFTs, this segment will only grow in value. Q2 saw owners of the Bored Ape Yacht Club purchasing 4-digit names based on the name of the Ape they own. Its branding is done in a very creative way. This is just one example of how businesses use NFTs for utility purposes. The Biggest NFT Players The second quarter of 2022 is by no means a stale one. In fact, it's quite the opposite. We've seen a few new players enter the space and make waves. The most notable entrant is none other than Amazon. The online shopping giant has been very active in the NFT space, especially in the collectibles segment. Amazon has been working with several high-profile partners to launch its NFT marketplace. And with eBay's recent acquisition of an NFT marketplace, competition is at an all-time high. But for April to June, the spotlight is on Yuga Labs. Its two NFT projects, OtherSide and Bored Ape Yacht Club, raked in over $2 billion of trades this quarter alone. According to , it accounts for a little over 30% of the NFT market. NonFungible.com Yes, this could be indicative of centralization, but it's not entirely a bad thing. Yuga Labs is a company trying to push the boundaries of what's possible with NFTs. They're succeeding, at least in generating interest and trading activity. What's Supposed to Happen Next? The unpredictability of the NFT space is what makes it so exciting. We have no idea what's going to happen next and guess whether a project is going to go up or down. Will a new segment emerge? Will an existing one die out? For the new players in this ecosystem, it's best to proceed cautiously and not put any money into NFTs that you cannot afford to lose. However, as the saying goes: with great risk comes great reword. Anything is possible in this space with the right strategy and product. And that's precisely why we're seeing so much interest from big companies. They acknowledge that the NFT space is relatively new, yet there's a ton of growth potential. With what we've seen in the first two quarters of 2022, it's safe to say that the NFT market is on track to have quite a year. By Hussein Hallak

Recapping NonFungible's Q2 Report So You Don't Have To

You've probably heard about the concept of the 1,000 True Fans, but how can you combine Kevin Kelly's idea with the latest technology? It seems like a lifetime ago in the tech world when Wired magazine founding editor Kevin Kelly wrote an article called "1,000 True Fans". The concept has been widely discussed and debated since then. If you are unfamiliar with the premise, it is simple: it only takes 1,000 super fans to make a living as an artist in the digital age. The article had profound implications across the creative community: with the power of the internet, any artist or creator can reach a global audience of potential fans, and if just 1% of those fans are true die-hard fans who are willing to buy everything you create, you only need 1,000 of them to make a good living, thus eliminating the vast majority of starving artists. What's a True Fan? A true fan will buy anything you create, no matter what it is. They're the ones who show up to your concerts, buy your merch, and support you on whatever platform, niche, or industry you're on. They're also the most likely to buy your more niche or experimental work because they believe in you as a creator and trust that you'll always make something worthy. The internet has made reaching a global audience of potential fans easier, but it's also made it easier for those fans to find and connect with each other. This has led to the rise of niche communities and fandoms around specific creators, genres, and topics. (Amish science fiction anyone?) And while it's great to have a passionate and engaged fanbase, it can also be difficult to stand out in the noise and reach a wider audience. Getting Rid of a Centralized System Enter NFTs. are a new way to create and sell digital art, and they're quickly gaining popularity due to their ability to get rid of the traditional intermediaries and connect creators directly with fans. Non-fungible tokens The reliance on the blockchain means that the key concept is decentralization. In a traditional sale, there's usually a centralized platform or marketplace that takes a cut of the profits, and the creator only gets a fraction of what they would if they were selling directly to fans. With NFTs, creators sell their work directly to fans without going through another party, and they can keep close to 100% of the profits. You wouldn’t need to publish your book on Amazon, put your music on Spotify, or sell your art through an auction house. This is a huge benefit for creators, allowing them to connect with their fans directly and build a more sustainable business model. Getting rid of a central authority or figure reinforces Kelley's concept of 1000 True Fans as it enables a more direct connection between creators and their fans. It also helps to create a more sustainable and long-term relationship between them, as the fan is now invested in the creator's success rather than just being a consumer of their work. From the artists' perspective, they no longer need to gain millions of followers or achieve millions of views on their social media platform to earn a dime. After all, everything on social media revolves around a numbers game. The more views or engagement an artist gets, the more money they potentially make through ads or sponsored content. But with NFTs, it's about quality over quantity. As long as an artist can find and connect with their 1000 true fans, they can be successful without needing millions of followers and without the ads and the platform getting the lion's share of the profits. This is a huge shift in how we value art and creativity, and it's one that we believe is here to stay. In a world where attention is constantly being pulled in different directions, finding and nurturing your true fans is more important than ever. And NFTs are the perfect tool to do just that. NFTs and the Blockchain Seek to Change the Economics of the Web The power of the has always been in its ability to connect people from all over the world and allow them to share their ideas and creativity. But this power has always been held back by the centralized intermediaries that control how we access and consume content. internet Whether it's Google controlling what we see in our search results, Facebook deciding what we see in our newsfeeds, or Spotify dictating which songs we hear, there's always been someone in the middle controlling what we see and how we consume it. This has led to many problems, such as censorship, stifled creativity, and unfair compensation for artists and creators. But with the rise of blockchain technology and NFTs, we now have a way to decentralize the web and give power back to the people who deserve the credit. With the blockchain, no central authority controls what you see or how you access the content. Instead, it's a decentralized network of computers that anyone can access and contribute to. And because of this, it has the potential to completely change the economics of the web, meaning your 1,000 True Fans will be that much more important to find and engage. Decentralized Platforms Social media will always be the main avenue for artists and creators to strut their stuff, but several are popping up that could provide a more sustainable model for them. decentralized platforms There's nothing wrong with social media - it's just that the way platforms operate is very different from how the blockchain works. For example, platforms like Facebook and Instagram make their money by selling ads and taking a cut of the revenue that creators generate. This model means that the platforms are always incentivized to get more people to use their services, even if it's at the expense of the quality of the content. After all, they don't care about the content; they just want to sell more ads. But with a decentralized platform, no central authority takes a cut of the revenue. Instead, the revenue is distributed among the platform users according to their contributions. This not only incentivizes users to create quality content but also creates a more sustainable model for the platform. Better Economics for all Stakeholders The current model of the internet is not as conducive to creativity as it should be. It's becoming more and more difficult for artists and creators to make a living. As the platforms, they depend on taking an ever-larger share of the pie. But with the blockchain, we have the opportunity to create a new model that's fair and equitable for all stakeholders. By decentralizing the web, we can give power back to the people who create the content and allow them to reap the rewards of their labor. And with NFTs, we have a way to monetize our creativity that doesn't rely on ads or sponsored content. So, instead of working doubly hard to achieve superficial popularity with little substance, artists and creators can focus on strengthening their "limited" number of fans. It's about building loyalty to your brand as an artist. So, whatever you create, release, or sell to them, it should sell quickly and easily without having to worry about what critics will say about it. After all, those "thousand" fans are the only ones that matter. Tiered Pricing Decentralization of the internet corresponds to granularization of content. Instead of one person having control over what everyone sees, now each person can curate their experience. And with this granularization comes the opportunity for tiered pricing. If you have a group of people willing to pay for your content, then you can charge them a premium price for it. But if you have a group of people that only want to consume your content for free, then you can offer it to them at a lower price. This way, everyone is happy - the fans get the content they want, and the artist gets compensated fairly for their work. This is a way to give your fans what they want when they want it and how they want it without compromising on quality or quantity. Users as Direct and Genuine Owners NFTs further reinforce the concept of the "1000 true fans" because buyers of NFTs are direct and genuine owners of the content. They're not just consuming it; they're also directly investing in it and the person who created it. And as investors, they're much more likely to be passionate about the content and stay loyal to the artist who creates it. This is a big shift from the current social media models like YouTube, where users can easily consume content without ever having to think about who created it or how they're being compensated for their work. With NFTs, the relationship between artist and fan is much more direct. And this directness creates a deeper level of connection and loyalty between them. The Real Sense of 1,000 True Fans Social media and the internet have provided us with many positives as we transition to a more digital world. Without them, artists and creators can never truly connect to their fans on a large scale. But they have also created as many problems as they solve including centralized power, a winner-take-all mentality, and monopolization. The true sense of a thousand true fans lies in eliminating the constraints of the Web 2 model. It's a world where artists are free to create without worrying about whether their content will be seen or not; a world where there's no limit caused by the unfair distribution and closed ecosystems. NFTs help artists and creators get paid for their work and emphasises just because it's digital, doesn't mean it's worth less than art in the real world. And if artists can find and engage with their 1,000 True Fans by creating NFTs then the sky really is the limit to what is possible. Also Published here

How to Build a Digital Community of 1,000 True Fans

In this post, we discuss the NFT market conditions: what has happened, what is going on, and explain why the NFT space is still going as strong as ever, despite the recent drop in the market. It’s easy for those who live and breathe NFTs to forget they are a relatively new technology that can leave the average person scratching their head. The NFT evolution is an entirely new way of thinking about ownership, possession, and value transfer. Unless you are a crypto head or a techie and have fully bought into a decentralized future, NFTs take some getting used to. While NFTs were invented in 2014, it really wasn’t until 2017 that people started to sit up and take notice of them when CryptoKitties started selling tradable NFT cats. Like many innovations that came to be as a result of the rise of blockchain technology, NFTs suffered through the 2018 and 2019 Crypto Winter. However, in 2021 NFTs became . In 2022, NFTs have become a over last year. To compare, in . Collins Dictionary’s word of the year $17 billion industry which is up an incredibly 21,00% 2020, the NFT industry was only worth about $82 million In this report, we attempt to break down what’s been happening in the NFT industry, how we got where we are today, and some predictions about the future. We will look at some of the major trends, what major players are saying and doing, and what it all means for creators, collectors, and investors. How We Got Here There is little doubt that the COVID-19 pandemic played a key role in the rise of NFTs. When access to travel, museums, movie theatres, and stadiums was restricted, people had to find other outlets and communities online. The result was a boom in the digital realm. NFTs and crypto were beneficiaries, but other digital platforms were high in demand as well. Netflix, for example, added during the pandemic. 16 million new subscribers Another reason for the popularity of NFTs can be attributed to the media frenzy surrounding them. Of course, it all started when Beeple’s, “Everydays” sold for $69 million, seemingly out of nowhere, becoming the to be ever sold by a living artist. This, of course, became a massive news story. Almost every article in the mainstream media became about how some young teenager or a broke artist made millions of dollars selling NFTs, which fueled the flames, even more, causing more hype, and driving up prices. It didn’t take long before the frenzy was feeding on itself, taking on a life of its own. third most expensive work Objectivity In The Markets Explained While more volatile, crypto has generally followed the trends of traditional markets. Bitcoin’s popularity rose out of the , and from 2009 to 2010, Bitcoin’s price rose despite the economic depression felt around the world. For those early adopters who saw Bitcoin’s potential, it was a welcome reprieve from traditional markets that were taking a beating. However, according to the well-known financial blog , since 2017, crypto and crypto assets have seen their market correlated with the stock market. They follow the up and down market trends, just like other traded commodities. When the economy is bad, crypto is down, and when the economy is doing well, the crypto market is up. Financial experts call what we are now in a when the economy is in depression and a bull market when the economy is thriving. subprime mortgage crisis Investopedia “bear” market If you’ve been paying attention to the financial markets in general over the last twenty years, what we are seeing in the crypto and NFT market is nothing out of the ordinary. This is according to a released late last year. Bloomberg studied the financial markets and, using models, has concluded that the crypto market is well within normal parameters. Bloomberg News whitepaper The key is looking at the data objectively over time. To give an example,  most people won’t remember that in 2018, the stock market had its worst December since 1931. when a trade war intensified between China and the United States, and the government . Yet most people forget about the stock market, only remembering that Bitcoin fell by about 65% that year. The S & P fell more than 11% raised the interest rates Since the beginning of the pandemic, governments all across the world have been propping up their economies with bailouts, loans, and low-interest rates to ensure that people were financially stable as businesses had to close down and borders were shut. Now that the pandemic is winding down and borders have opened up, we are seeing the effects – namely high inflation, but also supply chain issues resulting from the shutdowns. That’s not to say everything could have been foreseen. The war in Ukraine and the sanctions NATO has put on Russia have increased the pressure on world economies, especially with gas prices which have certainly caused financial markets to drop. This has had a huge impact on the financial markets all over the world and of course, impacted investors. The Current State of NFTs If you look at the crypto and crypto asset markets in isolation, it hasn’t been a good year. The so-called algorithmic stablecoin , and at the time of this writing, trading has stopped, and it has been depegged from the US dollar. There have been calls to investigate what happened. Bitcoin prices have fallen steadily for the last two months. Declining nearly . This has caused huge ripples throughout the crypto and blockchain industry resulting in a decrease in trust and hesitation among investors. Crypto has seen a staggering $1 trillion wiped from its market cap. TerraUSD crashed 60% from November’s all-time high Some venture capitalists and investors are understandably nervous. However, overall, perception has shifted as crypto is more globally accepted. This recession is different from 2018 in a few key areas. During the 2018 downturn, the conventional wisdom on Wall Street was that crypto would die out and that investors were seeing the beginning of the end. Of course, that didn’t happen. Now, you almost never hear any serious investor say that, despite the drop in crypto assets. Some investors like might disagree with the basic ethos of crypto, but even they cannot deny that technology is here to stay. Today it’s hard to find a major financial institution that doesn’t offer some kind of crypto product or service. The major financial company Fidelity investment now offers employers the ability for their workers to put Bitcoin into their 401k. Financial apps like and both offer simple ways for regular non-technical investors to get into crypto. Robinhood went further and just announced a new Web3 Wallet that allows its users to stake, yield farm, and buy NFTs without ever leaving its own ecosystem. This new wallet is aimed at more advanced crypto-savvy users. Charlie Munger and Warren Buffet WealthSimple Robinhood Paypal and Square (which is now called Block because of its shifting focus to blockchain technology) are allowing people to pay with crypto. Brazil’s largest digital bank began offering to customers and plans to invest 1% of its treasury into cryptocurrency. Bitcoin trading Many mainstream companies across many industries took interest in cryptocurrency and blockchain in 2021. AMC, the entertainment company, for example, announced it will be able to accept by the end of this year. And recently, the Japanese investment banking company . Bitcoin payments for tickets Nomura announced a new 100-person unit devoted to working within the cryptocurrencies, DeFi and NFT spaces Here in Canada, the leading contender for the top spot of the conservative party is a strong supporter of cryptocurrency and, if elected, plans to make Canada . Meanwhile, Bitcoin’s global mining power continues to surge toward all-time highs, indicating that miners are optimistic about the future. a leader in cryptocurrency All this indicates that major investors – both in governments and large institutions – are increasing their investments in blockchain technology and getting ready for the future. ‍ To NFT Infinity and Beyond Where will the NFT market go from here? Believe it or not, this incredible decline has created a real opportunity for serious investors and could even be seen as good for the industry as a whole. The sudden dip in the prices of NFTs means those creators and investors who weren’t serious about the technology or just got into the NFT space to make a quick buck will likely be dissuaded from continuing. This includes scammers and hackers who also wanted to capitalize on the hype in the space. For collectors and investors who can stick it out, it means that the projects that are doing well are strong and stable and will be able to survive these tough market conditions. This year, the projects that were overhyped and underdeveloped have likely collapsed or simply disappeared altogether. With , investors don’t have to look as hard to find good projects and won’t have to worry about bottoming out. fewer projects This new phase of the NFT market is not necessarily bad for the industry, according to an article in . As a whole, if investors tighten their purses it often makes projects and creators better. No longer can just anyone get money for a half-hearted or lazy project. The projects now really have to earn the money that is invested in them – and the money is there for the taking. This is good for everybody from investors, to creators, and collectors. Yahoo Finance While the money might not be as free-flowing as it was last year, venture capitalists are still seeing lots of opportunities within the space. A string of mega-rounds of funding has been given out totaling close to half a billion dollars. This is despite the continual downward slide of Bitcoin, cryptocurrencies, and NFTs. Promising NFT projects are still getting funded and there is still money flowing into the industry. One such example is the The fund is the firm's fourth cryptocurrency and Web3 fund. Three billion dollars from the fund is earmarked for venture investments, with the remaining $1.5 billion is for seed investment. VC firm Andreessen Horowitz has raised $4.5B for its largest cryptocurrency and blockchain fund yet. In one of the latest fundraises, to bring NFTs for kids on the Flow Blockchain. This is despite the challenging market circumstances, and that building an NFT project for young kids, who probably don’t understand the technology, is especially daunting, according to TechCrunch. Cryptoys raised$23 million with partners Dapper Labs On a smaller scale, but still significant, an app named Floor which aims to make NFTs more accessible to the average investor just raised , according to CoinDesk. The app offers NFT-specific portfolio tracking, real-time alerts, and multi-wallet support, making it easier than ever to buy and sell NFTs. $8 million in a Series A round What Does This Mean for the Industry? There are lots of opportunities within the NFT space that will eventually fuel the metaverse. Strategic Market Research believes that the while a separate report by Morgan Stanley said luxury NFTs could generate as much as . metaverse could be worth $1.6 trillion by 2030 $56 billion in the metaverse by 2030 In the technological life cycle of blockchain, NFTs, the Metaverse and cryptocurrencies, it’s still early days. While NFTs might not be the fad that they were at the beginning of the year, the NFT marketplace has already grown to and are close to passing conventional art sales, according to Chainalysi, a blockchain research company. $41 billion this year There will also be a continuation of of NFT Technology. This year, Samsung will introduce the world’s first TV screen-based NFT marketplace aggregator, a platform that lets you browse, purchase, and display your favorite NFTs. The fashion giant Gucci announced its big move into the NFT space with the SuperGucci collection, which features ten collaborative pieces. is also creating its first-ever NFT project on OpenSea. As large corporations continue to develop precedence in the NFT space, this will likely see more brands utilizing digital ownership and creating new strategies for integration and interaction, according to an article published on . big brand adoption Coca-Cola TheStreet ‍ The Next Market Cycle If we look at the adoption cycle of NFTs, we can find correlations and similarities between the and what is happening now.  Back then everybody rushed to create anything and everything online, thinking that it would turn into a moneymaker. Many of these ventures failed including Pets.com and eToys.com. These companies made the mistake of thinking that by simply having a great domain they could be sold for millions or even billions of dollars. dot-com boom However, only a handful of companies found successful business models that helped make the internet a more compelling experience. These include many online shopping sites, Google's search engine and its profitable approach to keyword-based advertising, as well as eBay's auction site, Priceline discount travel company, and Amazon all became stronger and more resilient. These companies paved the way for even more successful, disruptive companies like Shopify, Airbnb and Uber. While the market is down, many businesses are getting ready for a crypto future. In a recent , they polled 2,000 senior executives at retail organizations from a variety of industries about digital assets. More than 85% of the executives polled say their businesses are giving high priority to accepting crypto payments. Of those executives, nearly 75% of the respondents say, their organizations planned to accept crypto payments within the next two years, only proving further adoption of this technology. study by Deloitte ‍ What’s Next for NFTs? While we can’t predict which NFT projects will survive, believes the larger, better-funded projects like CryptoPunks, Bored Ape, and Doodles will be resilient and are likely safe long-term investments.  According to NonFungible’s of the most trusted names in the space, there was a significant decline in total NFT market volume, with a drop of almost 50% in sales. However, this drop was also accompanied by a much smaller 5% drop in the volume of dollars traded. This is largely driven by an increase of almost 80% in the price of NFTs between Q4 2021 and Q1 2022. While larger projects have declined with the rest of the industry, there is no lack of interest, and trading is just as active as it ever was. Just recently, Yuga Labs, the creator of Bored Apes, raised about in the sale of its virtual land this year. This demand for this virtual land was so huge, it disrupted other activities on the Ethereum blockchain. DapperRader, which tracks NFTs, Q1 2022 report, one $320 million worth of cryptocurrency With nearly $8 billion traded in the first quarter of 2022, the market cannot really be considered to have collapsed, according to NonFungible’s Quarterly report. Continuing only in the report, it states: ‘we are seeing more of a form of stabilization, in line with the last quarter of 2021.’ Estimates by NonFungible suggest that around a quarter of a million people still actively trade NFTs every month on OpenSea's platform. Despite the drop in prices, that’s still a large number of active traders and there is lots of reason to be optimistic about the near future. One example is crypto payment services provider MoonPay which announced the launch of a new platform called that enables large companies and brands to create, manage, and mint utility NFTs at scale, which will integrate the technology further into everyday usage. HyperMint Until recently, NFTs have almost exclusively been used as collectibles. However, as the technology becomes more established, businesses are starting to understand that the long-term viability of NFTs requires them to have functional uses beyond this collectible element. For example, NFTs can be used to create a powerful customer loyalty program. Each customer can be issued an NFT and, with it, a permanent and unique blockchain entry. This NFT then serves as the customer’s proof of being part of the programs, and relevant data about visits and discounts can be handled digitally too. Cash-strapped museums which have been hit hard by the pandemic are using NFTs to regain some of their lost revenue. A group of Italian museums, including the iconic Uffizi Galleries in Florence, have recently of six famous Italian masterpieces. The British Museum also recently launched NFT collections with prices for some NFTs starting at $5,660 while the first-ever NFT-only museum . This is only the beginning of what will be a fully virtual museum experience, giving patrons the opportunity to visit in person or having the same experience virtually.. released NFTs launched in Seattle ‍ Final Thoughts No matter what type of markets you follow, they will always go up and down based on a variety of , including supply, demand, inflation, and other economic conditions. It’s important to remember that cycles end and new cycles take hold, and we will continue to see fluctuations just as we’ve seen throughout history. complex factors Bear markets, like the one we are seeing now, often have some amazing opportunities and savvy creators, entrepreneurs, and investors are less swayed by short-term market activity and more focused on building amazing, sustainable businesses that create and deliver value, and positively impact the world. Regardless of whether you’re an investor, an entrepreneur or a creator, you need to start with the fundamentals. Because the NFT space moves so fast, it can be tempting to jump in now and ask questions later, but it pays to stop and examine your reasons for getting in, what sort of value you want to create, deliver, and or extract from the market. Do your research and act cautiously.  Some may be able to run before they can walk, but many who jump in without having a purpose and an end in mind, even if that changes in the future, get caught up in the excitement surrounding the space and risk losing everything. There will be challenges, including scams, fakes, forgeries, and, of course, bubbles. But at the end of the day, NFTs are facilitating the human need for collecting, exploring, and earning and that is not going away, according to . Yohann Calpu, the VP of CryptoSlam The cycle will continue to spin and there will be more bull and bear markets to come. Now is as great of a time as ever to get more involved in the NFT space as long as one stays true to the fundamentals of building a great business. There is strong data as demonstrated in this report, that NFTs, while losing value, are going to be an important component of future innovation which is why we are still seeing investment within the industry. Also Published here ‍

NFTs: Where do we Go From Here?

The very question that NFTs might someday replace museums seems like something nobody would ever utter out loud. Museums are the bedrock of some of the most famous cities in the world. There’s no way that something that boils down to a piece of code will ever replace the experience of walking down the long hallways of the Louvre or the Smithsonian – the feeling of your feet against the tile floors, mingling with the other tourists and staring in awe at the magnificent works of art. Or will it? But it wasn’t that long ago that museums were thought of as a complete waste of space. It was preposterous to think that artworks could be appreciated by the average person. Kings and queens thought art was not for commoners. To think otherwise was simply beyond belief! Beautiful art was created for the nobility, and as such, art was kept in private collections, away from anyone except the most discerning eye. In fact, the world’s most important museums didn’t start opening until the 18th century. The British Museum opened in 1753. The Louvre in 1793. The in 1819 and the Metropolitan in New York in 1870. Museo del Prado In this light, museums aren’t the eternal institutions that most people think of them as, and therefore there could be potential disruption as new technology becomes wildly adopted. And no other technology has had the type of impact that have had on the art and collectible space. Blockchain-based collectibles are completely shifting how society values ownership. NFTs A Whole New Digital World The initial reaction most people have when looking at NFTs on their phone is: ‘I’d rather see the real thing.” And I get it. Who wouldn’t want to see the Statue of David in person as opposed to a picture of it on the phone? It takes only two seconds to Google a picture, yet people line up for hours to get a glimpse of it in real life. The Googled picture doesn’t strike awe, wonderment, or take away one’s breath. But standing in front of the chiselled features, David’s eyes staring into the distance, one can’t help but feel something that goes beyond the boundaries of time and beauty. But people who think that this is the only way to view art don’t understand where blockchain, AI, and NFT technology is heading and how the metaverse will shake up how we interact and operate in the world to the core. Let’s flip the question for a moment and imagine a Star Trek-like future. Why would you want to travel somewhere, line up, and purchase a ticket to see something that would take you only a few moments to see inside the metaverse? The experience would be exactly the same. There would be literally no difference. In fact, the metaverse experience might even be better as you would be able to touch the Statue of David or even put it in your bedroom. Already there is an arms race to control the untapped metaverse. And whether Mark Zuckerberg, , the or someone else will build and control it, NFTs will certainly be a prominent part. You’ll be able to view huge lifelike collections of NFTs just as you might view the Statue of David. NVIDIA Winklevoss twins You will be able to jump into the metaverse, pay for entrance to a virtual space with cryptocurrency and view some of the most famous NFTS that helped shape the space and have come a part of NFT history. (Image seeing a collection of Bored Ape Yacht Club on display as part of the rise of NFTs?) Detractors of NFTs say that the artwork is nothing special. To some, it’s like seeing an original Pollock – because let’s face it: the difference between a Pollock and paint splatter can be interpreted as only being Pollock himself. The thing is that art is open to interpretation and if someone can find value in a , why cannot one find value in an NFT? Jackson Pollock painting No matter which side of the fence you sit on, we are only at the very beginning of blockchain technology and who can tell where it will lead us or how it can turn out? Nobody knows – not even Mark Zuckerberg, but I for one, am excited to find out. Museums Can Survive by Embracing NFTs and the Metaverse Museums don’t need to be obsolete. They can use blockchain technology to their advantage. In fact, a few renowned art collections and have already taken the initiative. museums The in Florence recently sold a digital version of Michelangelo's "Doni Tondo" as an NFT; Saint Petersburg's Hermitage Museum announced its plan to auction its collection of masterpieces as NFTs, while the British Museum hopes to sell over a hundred of its Hokusai artworks as NFTs. Uffizi Gallery These examples show that some can see the potential and opportunity presented by NFTs – even for older institutions. The key for museums to adapt to this new landscape is taking advantage of NFTs' unique properties – provable scarcity, ownership, and provenance. Doing so allows these institutions to better showcase their collection for both patrons and art enthusiasts. More importantly, it allows art museums to thrive amidst the uncertainty of a digital future by embracing the technology changing it. It’s not a matter of whether NFTs will become as big of a draw for art enthusiasts as museums but when. The art world is changing, and with it, the way that museums operate must change. NFTs provide a way for these institutions to embrace the digital world while still holding onto their traditions. By using NFTs, art museums can create new experiences for their patrons and give art enthusiasts a better understanding of their collections. They can then monetize their collections in ways that were not possible before. Final Thoughts Instead of sticking to a risk-averse approach, museums will survive the threat of getting upended by NFTs and the metaverse only by embracing what blockchain technology has to offer. Gone are the days when museums are the sole keepers of our artistic heritage and culture. NFTs allow for a complete digital experience that will allow art lovers to feel deeply connected to the artwork as if it was right in front of them in the physical world. The art world is changing and these venerable institutions must as well if they are to survive. Hussein Hallak

A Whole New Digital World: Are Museums Dead? 

Un mundo digital completamente nuevo: ¿Están muertos los museos?

Un tout nouveau monde numérique : les musées sont-ils morts ?

एक पूरी नई डिजिटल दुनिया: क्या संग्रहालय मर चुके हैं?

まったく新しいデジタル世界: 博物館は死んだのか?

Todo um novo mundo digital: os museus estão mortos?

Một thế giới kỹ thuật số hoàn toàn mới: Các viện bảo tàng đã chết?

一个全新的数字世界：博物馆死了吗？

‍I was recently asked to speak as part of a panel on CSE TV about cryptocurrencies and blockchain technology. One of the questions we were asked was about billionaire Charlie Munger’s . view on cryptocurrency He has said on various occasions that he wished cryptocurrency had never been invented and crypto was for people who wanted to get rich quickly by doing very little for civilization. The argument that the stock market is somehow more legitimate than the cryptocurrency market is false if one understands how the current financial system works. People like Charlie Munger who have profited greatly from the like to portray crypto investors as lowlifes and bottom feeders while Wall Street brokers and hedge as pillars of the community and are shining examples of capitalism. traditional stock market fund managers What Does the Stock Market Really Do? To understand Munger’s comments we need to first take a brief look at those who profit the most from how the financial system operates – the hedge fund managers. A operates the private investment vehicles that typically only America’s wealthiest people can afford. Hedge fund managers try and control and often manipulate the stock market for their own gains. hedge fund manager They often anger the middle class and average investors when they squeeze profit out of a company for short-term gains, regardless of the long-term consequences – often causing layoffs, mergers, and or bankruptcies such as in or . Sears Trans World Airlines While one couldn’t predict the future of these companies – there are only a handful of Sears left in the United States and Trans World Airlines went out of business in 2001 – hedge fund managers and corporate raiders do nothing to try and build the economy. To achieve high returns on their investments for both themselves and their clients, hedge fund managers often participate in questionable financial practices such as selling junk bonds, short selling, and subprime mortgages as was the case in the . 2008 recession While governments half-heartedly pretended to clean up Wall Street during the subprime crisis, these dubious, sometimes-illegal practices are largely still practiced today. The true difference between the stock market and the crypto market is when people steal in the crypto market they are labelled as scammers and thieves but when people steal in the stock market, there are almost . no consequences During the entire subprime crisis, no CEO went to jail and only one banker was ever put behind bars. In fact, the white-collar crime prosecution rate seems to be dropping along with the number of reported white-collar crimes. In the 80s and 90s, there were around 10,000 prosecutions a year in the United States. But in 2019 the number of prosecutions was only 5,000 – the lowest it’s been since 1986, according to Bajoka Law Group. white-collar crime Because of the lack of accountability, there has been increasing anger against hedge fund managers and the inequity in the stock market in general. So much so, that a bunch of Reddit users decided to band together and teach hedge fund managers a lesson. When the hedge fund managers decided to short a stock called GameStop, the Reddit users decided they would keep buying the stock, driving the stock up causing the hedge fund managers to lose billions of dollars. Some major brokers like Robinhood and Webull panicked, on the stock. halted trading The stockbrokers cited ‘extreme volatility” as the reason for suspending GameStop trading when in fact it was to protect the hedge fund managers. There have been cases in the past where trading has stopped because a stock had dropped suddenly which is called a circuit breaker; this is to prevent panic selling, but rarely – if ever – is it used when a stock goes up in value. Investors everywhere rightly cried foul when GameStop was halted. But as per usual nothing ever changed to level the playing field for the average investor. When a few powerful brokers can halt trading to protect hedge funds but not small individual investors, the system is no longer fair or equal and it becomes increasingly hard to argue otherwise. So is the stock market for people who want to get rich quickly and do little for civilization but line their own pockets? Charlie Munger is defending a system that is designed to keep making money for the rich and those who have no money or power from taking advantage of the system. One way that Charlie Munger has made a profit from a scam was during the Wells Fargo fraud scandal in 2016. The bank created millions of fake savings and checking accounts on behalf of their clients without their knowledge. clients began to notice unauthorized fees being charged to their accounts. In addition, lines of credit and credit cards were opened up without authorization. Wells Fargo The initial blame was given to branch managers but later shifted to executives who pressured account managers to open as many accounts as possible. The regulatory bodies found out and fined the company $185 million as a result of this illegal activity. The company faced civil and criminal suits. However, nobody went to jail. As for the Wells Fargo Stock? It took a little hit but kept climbing, unaffected by the scams. Charlie Munger is also an investor in Bank of America.  In August 2014, Bank of America agreed to a near-$17 billion deal to against it relating to the sale of toxic mortgage-linked securities including subprime home loans, in what was believed to be the largest settlement in U.S. corporate history. settle claims Now to be clear in no way did Carlie Munger orchestrate any of these scams or schemes and most likely didn’t know about them but regardless he was able to profit immensely from them. And when he criticizes crypto he is either disregarding his own profiteering off the companies that have either acted unethically or committed illegal acts. And what’s more, he continues to invest in these companies (As of this writing he 1.59 million shares of Wells Fargo worth roughly $76 million and 2.2 million shares of Bank of America worth just over $100 million.) voting with his money that it’s okay for these companies to disregard the law. owns ‍ No Monetary System is Perfect Cryptocurrency is not perfect but Web3-enthusiasts and those working ethically within the blockchain ecosystem are aiming to create a better more fair system. However, there are plenty of bad actors trying to take advantage of the lack of regulations and the anonymity that comes with the space, but is it any better or worse than the stock market and fiat currencies in general? Unfortunately, greed is a human trait and it will be present in any system we create. There are plenty of great crypto and blockchain projects out there – far more than bad ones, just like the average person who invests in the stock market isn’t trying to lie, cheat, or steal. But in the crypto space, there are no so you have to be extremely careful when choosing to invest in a project; there is a good chance you’ll lose money. regulatory bodies As for the accusation that crypto companies are just out to make money and do not care about the economy? It only takes a quick glance to realize there are plenty of amazing crypto projects that aim to form online robust communities that can support creators in building amazing games, art, and platforms, among other things. These communities do not just benefit those who have money to invest but anyone can make money – and a living through what has been built. Final Thoughts In business as in the crypto space, people lose their way; either people become too greedy, they lose sight of what’s important or the business just becomes too unmanageable. The eventual aim of crypto and blockchain is that it will democratize investing so you don’t have to go through a broker and that a few brokers can’t halt a trade on the platform just because it’s not good for their business. It’s not that cryptocurrency offers something better than the stock market, it’s that it has the potential to offer ordinary people more control over what they invest in. While we clearly aren’t there yet, we can hope that one day we won’t have to worry about another recession because banks, hedge fund managers and other investors try to game the system. That the system won’t be one-sided towards the wealthy and powerful. But for this to happen cryptocurrencies will need to be regulated, but it needs to be done thoughtfully while still allowing the ability to innovate. Hussein Hallak

Is the Stock Market More Legitimate Than the Cryptocurrency Market?

¿Es el mercado de valores más legítimo que el mercado de criptomonedas?

Le marché boursier est-il plus légitime que le marché des crypto-monnaies ?

क्या शेयर बाजार क्रिप्टोक्यूरेंसी बाजार से ज्यादा वैध है?

株式市場は暗号通貨市場よりも正当ですか?

O mercado de ações é mais legítimo que o mercado de criptomoedas?

Thị trường chứng khoán có hợp pháp hơn thị trường tiền điện tử không?

股票市场比加密货币市场更合法吗？

Technology and cultural heritage can present a somewhat awkward partnership. Traditionalists may view all technology as a threat to history, whereas tech enthusiasts often see anything old as obsolete and meaningless in today's fast-paced world. It is a rare marriage indeed when technology can help preserve history and promote culture but NFTs are such a . technology For centuries, the print industry has held a monopoly on preserving culture and history. Books, newspapers, and magazines are all examples of traditional media which were largely used to pass along knowledge from generation to generation. What was written down in the history books was generally accepted as an unalterable fact. But worse, those who wrote this history often used it for influence, bulldozing other people's – often minorities – perspectives and opinions. This has led to many cultures losing their heritage and identity with no means of capturing it or passing it on to the next generation. For a moment, there was the possibility computers and the internet would change this monolithic viewpoint. The rise of blogging and social media made it easier to communicate. People would find themselves free to express their culture and their heritage with people across the world. But then Facebook and Google took over, bringing with them the biggest killer of individualized expression – the algorithm. With these large algorithms, we are no longer exposed to new ideas, new cultures or heritages. Only people who look, think and act like us. But, now we have NFT and blockchain technology where there isn't just one voice but many. With NFT and blockchain technology, we once again have the possibility to free ourselves from control, allowing us not only to express our culture and heritage but easily interact with those from different backgrounds. ‍ A New Way to Showcase Culture Now we have NFT and blockchain technology where there isn't just one voice but many. With this technology, we once again have the possibility to free ourselves from control, allowing us not only to and heritage but easily interact with those from different backgrounds. express our culture Tencent, a Chinese tech company, recently unveiled a partnership with Dunhuang Academy to "digitalize" the prehistoric wall paintings of the . The move is unprecedented, considering that the subject is a UNESCO World Heritage site. The company said that minting these ancient paintings into NFTs is meant to preserve cultural heritage in the digital age. Mogao Caves In a way, Tencent is one of the first organizations to make a legitimate attempt at showcasing cultural heritage with NFTs. The use of blockchain technology to is an undervalued but pivotal development that'll help generate more interest, even from the traditionalists. preserve culture ‍ Reclaiming Culture In British Columbia, where I live, there has been a tenuous relationship between aboriginals and Canadians, recently inflamed by the recent discovery of mass graves in the residential schools. The divide between aboriginal people and the rest of Canada goes back centuries and there is no easy solution to bring the two sides closer together as we all work towards creating a better future – yet uncertain about how to proceed. NFTs could provide a voice for those who previously had none and highlight aboriginal culture and history, by putting it on the blockchain. This way, NFTs are not only useful for preserving history, but they can also help people take back ownership over their culture. They could tell stories that would otherwise be lost and moreover even record languages. Many Indigenous communities have lost their language and culture due to colonialism. Some of their languages were even declared extinct. There is a prospect of saving these languages from extinction using the blockchain and NFTs. The idea is to use digital storage to preserve the language in its written form on the blockchain while simultaneously creating apps that translate it into English or any other modern language. This means that NFTs can help preserve vernacular cultures in their natural state. But this doesn't have to be a static process either, as NFTs can also allow for language translation and learning. This opens up a whole new range of possibilities, especially when considering the sheer number of languages spoken in the world today. ‍ Conclusion Whether NFTs will ever become truly democratic or allow for everyone to have a voice has yet to be fully determined. There are still preventative hurdles that could stop people from minting their own NFTs, including access to the internet and gas costs, but the step towards more selection, variety and freedom is gaining traction. There is also still a power grab that might dominate the technology and prevent new players from entering the space. It’s possible we’ll have a few wealthy individuals who will end up controlling the space just like we do now with Google and Facebook. However, it is irrefutable that NFT and blockchain technology have somewhat levelled the playing field to allow previously unheard-of artists to make a living and showcase their creativity. This is of course an excellent first start but NFTs have so much more potential. For example, they could be used to and artwork. These are crucial to preserving them for the next generations, and blockchain technologies such as NFTs are becoming a better solution for this purpose. digitize artifacts Hopefully one day we will be equally exposed to art from the Middle East, Africa, and aboriginal cultures from all over the world without any limitations. By Hussein Hallak

Can People Reclaim Their Culture and Heritage With NFTs?

Late last year, the NFT space got a shock when prominent New York art collector Todd Kramer took to Twitter to air his grievance over the theft of his NFT collection on OpenSea. The collection had an estimated value of over $2 million. “I have been hacked. All my apes gone. This just sold please help me,” wrote Todd Kramer, of New York’s Ross + Kramer Gallery, in a since-deleted tweet. The blockchain's seemingly safe and secure nature was suddenly put into the spotlight. There've been similar cases before, but nothing of the sheer volume and value of NFTs stolen. OpenSea, arguably the most trustworthy marketplace on the blockchain that hosts digital assets, is at the forefront of this issue. Like most decentralized marketplaces, OpenSea runs on the Ethereum blockchain and hosts digital assets, i.e., collectibles, digital files, game items through smart contracts. The buying and selling of items in OpenSea go through smart contracts, which promise privacy, security, and transparency. Vulnerability of Hot Wallets Kramer's NFTs were stored on a hot wallet, a less secure option where private keys are stored on a device with an active internet connection. He recalled how he was duped by a phishing site that mimicked a real decentralized app. There's no shortage of concerns about the vulnerability of hot wallets in crypto. The fact that the asset is stored in a wallet connected to the internet means that it has an increased chance of being compromised. OpenSea and all other marketplaces are taking precautions, but it'll be quite challenging for them to keep NFTs offline unless they're stored in cold wallets. There are just too many variables involved with exchanges and transactions, which can technically expose hot wallets to prying eyes. When OpenSea did respond to the theft, it raised many eyebrows. The platform decided to freeze all accounts related to the transaction involving Kramer's account. It flagged the NFTs as suspicious activity, causing quite a bit of hostility among users affected by the sudden change in policy. OpenSea went on to say that it's not liable for user assets or transactions. It encourages users to trade at their own risk, which is pretty much the norm across the blockchain industry right now. A Question of Freedom OpenSea's move to freeze any account or transaction involving NFTs is frowned upon for a good reason. Blockchain, NFTs, and decentralized markets are different from the traditional centralized financial market. It's called a free market because centralized authorities have no or minimal control over the flow of transactions. OpenSea is a platform that offers unfettered access to everyone, regardless of age, social status, location, etc. Doing so offers all users across the globe an equal playing ground where they can participate in buying and selling goods using cryptocurrency. This idea has been driving NFTs and blockchain technology forward. For some people, the fact that a decentralized marketplace is suspending transactions involving NFTs to suppress the theft suggests its propensity to embrace centralization - the very principle it wishes to defeat. It's not that OpenSea is acting in bad faith, though. We should look at it as a desperate way to minimize the damage caused by the incident. But facing a huge security breach shouldn't be a reason to deviate from the decentralized nature of the blockchain and the entire blockchain ethos as a whole. When NFT marketplaces freeze accounts in times like this, it could be doing more harm than good to the blockchain community because it sends a message that markets can freely suspend or freeze users' accounts any time they want. Of course, it can't be stressed enough that Kramer may have put himself in a pretty bad position by opting to keep his highly valuable NFT collection on a hot wallet. But OpenSea shouldn't be faulted for reacting to the security lapse because it has its credibility and reputation to worry about. As such, marketplaces should only freeze transactions when situations like this call for dire actions, and it should be a last resort employed in critical situations where there's evidence of asset theft or fraudulent activities. An Oversight Board, Anyone? It's surprising that this kind of incident involving NFT marketplaces happened in the first place. Considering how big the trading volume of ERC-721s has been, it should've been a priority for platform operators to learn more about their customers' assets and transactions. So, one might think about NFT marketplaces and platforms incorporating an oversight board. Will that solve scams, theft, and other issues? It probably will, but at what cost? Last year, Facebook revealed a new review board that acts as a self-regulatory body to ensure its data privacy measures are in place. The idea is to filter out content that doesn't adhere to the company's community standards. In a way, this move was triggered by several accusations of Facebook violating its users' privacy and giving access to their data without proper authorization. So, it probably made sense for the social media giant to have a new mechanism in place - even if it amends its reputation among certain groups. In the case of NFT marketplaces, it might not be a bad idea to have an oversight board that acts as its self-regulatory unit tasked with overseeing transactions and ensuring that all rules related to fraud or theft are followed through. This would make it easier for these platforms to avoid charges of fraud, but... By having an oversight board, it's almost inevitable that these platforms will impose restrictions on users. This could result in creating a new form of censorship where certain transactions are being monitored to comply with market policies - which is the opposite of what blockchains stand for. Strike a Balance There's no quick answer to the question of whether NFT marketplaces should freeze accounts and regulate transactions. After all, the blockchain is decentralized, which makes it possible for anyone to buy or trade NFTs in a peer-to-peer manner without the interference of centralized parties. But when there are issues involving theft and fraud, it's understandable that marketplaces have to protect their assets - just like what OpenSea is doing now. Platforms should understand that they can't completely rely on systems where they're always at the mercy of their users. In a way, it's a double-edged sword and whatever is decided won't make everyone happy. NFT marketplaces could benefit from better security measures and oversight boards to ensure that they can protect assets, but this level of intervention should be strictly used only when necessary. The truth is, anyone who invests in crypto and NFTs must fully embrace the responsibility of protecting their investments. After all, there are already enough security measures for them to use. Users should better understand how their digital assets work while being mindful of how they're going to use them. ‍ ‍By Hussein Hallak

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