paint-brush
Why NFT Creative Studios like Cultivate Are a Safer Betby@barthillerich
406 reads
406 reads

Why NFT Creative Studios like Cultivate Are a Safer Bet

by Bart HillerichOctober 17th, 2022
Read on Terminal Reader
Read this story w/o Javascript
tldt arrow

Too Long; Didn't Read

Like RTFKT, Cultivate is being set up with a sustainable business model to supply a Web3 product where clear demand will exist long-term. As NFT Creative Studios, both projects are inherently a less risky investment that the vast majority of NFT projects currently available.

Companies Mentioned

Mention Thumbnail
Mention Thumbnail

Coins Mentioned

Mention Thumbnail
Mention Thumbnail
featured image - Why NFT Creative Studios like Cultivate Are a Safer Bet
Bart Hillerich HackerNoon profile picture

With the NFT space so focused on what the next great PFP collection will be, it’s hard not to act with a short-term mindset and brush past many of the inherent risks associated with getting involved in the industry as an investor. Let’s put things into perspective.


Crypto is the riskiest and most speculative market in the world and NFTs are its newest major sector. As such, the sector is the least regulated, most unpredictable, and most risky. I view NFT projects as startups, most of which are trying to “become a brand”.


The problem is everyone can’t be the “Supreme of Web3” and focusing on NFT-derived IP to build value through merchandise, additional NFT drops, and (in many cases) third-party marketing is not a solid foundation for these projects to stand on for long-term growth and prosperity.


There should be a proper business plan in place to create tangible value, but most projects don’t have one.


To further drive home the point of how risky most of these PFP projects are, it’s important to note that approximately 90%+ of all startups fail.


Now, take that concept of a startup which is proven to be inherently risky, and instead of it being a traditional team building a tangible good or service, it’s a team in the most speculative market in the world with an incredibly high failure rate business plan (build a brand). Yikes.


Everyone can’t be the “Supreme of Web3”


Bar none, the biggest risk that I see NFT projects facing long-term is the uncertainty of the metaverse and how to integrate into it successfully. Lucky for today’s NFT teams, as I described in my previous article, the metaverse hasn’t yet arrived so there’s still time to figure it all out.


Let’s first dive deeper into the risk that metaverse uncertainty brings to the table, and then we can take a look at Cultivate and how they’re set up to be resilient to this unknown future that all projects must navigate.

All Roadmaps Lead to the Metaverse

Cultivate Concept


Whether an NFT project specifically states it or not, one of the end goals of their roadmap is successfully integrating into a globally prominent metaverse platform. Fail to do so, and the project faces a high probability of declining to 0.


This is no small undertaking as there are still so many variables and unknowns when it comes to the future of the metaverse. What will the dominant platforms be? What blockchain will they run on? What will the game engine be?


This poses a huge problem for every NFT project to try and solve before they even know the eventual constraints that they’ll have to operate within in order to achieve successful metaverse integration.


When there’s a problem like this to solve, everyone is going to go about doing it in their own way; that is what leads to winners and losers in emergent industries.


Whether an NFT project specifically states it or not, one of the end goals of their roadmap is successfully integrating into a globally prominent metaverse platform.


Today, the clearest divide in opinion as it pertains to solving the overarching problem lies in the debate between Solana and Ethereum (other chains can also be inserted interchangeably here).


If Solana is the dominant chain in 20 years and Ethereum has been wiped out, what happens to all of the NFTs built on the losing chain? This is an example of what I call “Chain Risk”, which almost all current NFT projects face and must account for when trying to plan for the metaverse.


Chain Risk Conversation with Elli, Founder of Anybodies (https://magiceden.io/marketplace/anybodies)


It’s clear today’s PFPs carry high risk with all of these uncertainties present. What if there was something you could invest in that doesn’t carry many of the same risks? This is where projects fitting into a niche category within the NFT industry come in.

A Sustainable NFT Business Model

CloneX (opensea.io/collection/clonex) Wearing a Custom-Skinned Cultivate DR1VER Helmet [Concept]


Both the tremendously successful RTFKT and highly-anticipated Cultivate fit into the category that I refer to as “NFT Creative Studios”.


These projects prioritize adaptability; creating high-quality 3D assets with the capability to plug into any metaverse that ultimately achieves global prominence.


The concept of a studio focused on creating interoperable NFTs of the highest quality is one much less risky than our standard PFP projects, especially when it comes to chain risk.


Although there are many uncertainties when it comes to the future of the metaverse, one thing that can be reasonably assumed as truth is that 3D assets will play a major role in the average consumer experience.


These assets are key to the metaverse as they enable the creation of the most compelling, immersive experiences possible.


As it pertains to NFT creative studios, in creating these kinds of assets, they’re effectively skating to where the puck is heading and setting themselves up very well for future success.


The concept of a studio focused on creating interoperable NFTs of the highest quality is one much less risky than our standard PFP projects


Flexibility and the ability to pivot in the face of an unpredictable environment are keys to the survival of any business, but they’re especially important at the forefront of technological innovation where we all stand as a part of the rapidly evolving Web3 industry.


Movies will be filmed in the metaverse, large organizations will need assets created for them for a variety of purposes, and popular brands will want to collaborate with the highest quality creators.


Being the supplier of these assets is a proper, sustainable business model because there’s a clear future of high demand for them! This is why it’s no surprise that when Nike decided to make a big move into Web3, they elected to purchase RTFKT.


Wilder Beast (https://opensea.io/collection/wilderbeasts-wolf) Wearing the Passion DR1VER Helmet [Concept]


My overall outlook on Cultivate is that if they play their cards right (hire great talent, effectively scale, keep proper cash reserves, market well, establish key partnerships early, etc.) they’re looking primed to have a long, successful run into the future of the metaverse.


Cultivate is targeting the augmented reality industry at precisely the right time: directly before companies like Apple launch new AR products to bring the technology to the mainstream and also right before the metaverse rises to the global stage.


By creating metaverse wearables with “built-in interoperability meant for use across different digital identities & metaverse worlds”, the team is able to diminish its risk by not being reliant on one blockchain, one key NFT partner, or one metaverse platform to achieve success long-term.


The use cases of what the team is building are expansive, and most notably, going to be in high demand. One day, I believe we’ll be seeing a variety of avatars exploring the metaverse wearing cherished Cultivate accessories and people rocking gear IRL for anyone to view through their AR glasses.


Cultivate Genesis SORCE Vial


Tip Jar

Enjoy the article? Consider leaving a tip to support my efforts. All donations are greatly appreciated, thanks for reading!

  • Coinbase (BTC): 0x9543128838F74bF6e95b7e056D288bc190236C2D

  • Metamask (ETH): 0x22B4E04c13EEBD21e2D35c4001B8B8fFFF17DD3a

  • Phantom (SOL): AXmyuktns4ehTWAuJbMDwavHAufbRpkQB3aoeJ7yE8iP


Disclaimer: This article is written purely for entertainment and educational purposes and should not be taken as financial advice in any way. Do your own research and, if you are seeking financial advice, find a professional who is right for you.