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NFT 2.0: The next generation of NFTs will be faster and more reliable

NFTs are becoming more mainstream, but their adoption requires a streamlined and trustworthy experience for the general public.

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For the past few years, nonfungible tokens (NFTs) have been in the news. Demand has skyrocketed, institutions have been formed, and the jargon has entered our collective consciousness as large swaths of the populace have sought to figure out why NFTs exist.

Capitalization of NFTs

Source: NFTGO

However, there is a thorn in the flesh: NFTs are difficult to utilize, and the vast majority of them are digital snake oil. However, these issues present a chance to develop solutions. NFTs’ accessibility and credibility are both in need of improvement. The market is maturing as more money enters the field, and that transition is gaining traction. We’re approaching a new era of NFTs, known as NFT 2.0, in which the technology will be more widely available and the NFTs’ underlying value proposition will be more clear and reliable.

When it comes to the rise of NFTs, there are a few things to consider

NFTs have surged into the crypto landscape in their brief history, surpassing $17 billion in trading volume in 2021. By 2026, this figure is predicted to reach $147 billion. Even more amazing is the fact that less than 400,000 people own this volume, resulting in a massive $47,000 transaction volume per user.

Along with the industry’s rapid growth, NFTs have seen significant changes since their introduction. For example, CryptoPunks ascended to blue-chip status after being coined for free in 2017 and selling for $11.8 million at Sotheby’s last year. A few years later, Yuga Labs, the parent company of the Bored Ape Yacht Club, purchased Larva Labs, the firm that created the Punks, for an undisclosed sum.

NFTs have evolved over time

NFTs were once dismissed as a fad, but they have proven to have a lot of staying power, drawing the attention of prominent celebrities and corporations, and even appearing in Super Bowl advertisements. Budweiser, McDonald’s, and Adidas have all launched their own lines, while Nike has joined the field by acquiring RTFKT Studios.

While companies work out their NFT strategies, the general landscape has replicated decades of technical advancement, albeit on a far faster timescale. In just a few years, NFTs have progressed from 8-bit pixelated visuals and Pong-like blockchain games to high-fidelity 3D animations and complicated play-to-earn game mechanics with large multiplayer experiences, whereas the iPhone took around ten years to reach its present form.

The ecosystem of pick-and-shovel solutions is evolving at the same time as the real NFTs. The flood of NFT minting platforms and toolings has substantially lowered the barrier to entry, resulting in market saturation. There were more NFTs than public websites in March 2022, resulting in a huge amount of noise that many people have found difficult to cut through.

The asset class’s long-term viability and massive transaction volumes have changed how creators approach the space. Many companies have rushed their Web3 strategy or considered their fans as a source of cash, resulting in a slew of mistakes, rug pulls, and canceled initiatives. Simply said, most businesses and artists aren’t ready for Web3, and they need more guidance and white-glove services than tools.

Similarly to email

In the end, NFTs look to be moving in the same direction as email. There was a time in the 1990s when businesses needed to employ experts to code their emails. Early adopters established profitable agencies that could support Fortune 500 firms and implement early digital initiatives. Until technical innovation (and education) made it easier for brands to do it themselves, the information gap gave these agencies immense power.

Similarly, brands are turning to specialists to educate and prepare them for a Web3 future, and it’s only a matter of time before they completely disintermediate and manage their Web3 strategy in-house. Onboarding for NFTs, and crypto in general, is a complicated procedure that many people are unable to handle. Some businesses, on the other hand, are figuring out how to abstract the more problematic aspects of crypto and use them to build stronger relationships with their customers.

Web 3.0’s advantages over web 2.0’s

NFT 2.0 was created with the general public in mind

NFTs in their current form is not intended for widespread use. Consumers aren’t happy with the onboarding process; the instability is hurtful to real fans, and it skews the artist-fan relationship. Many collections are experiencing rough demand shocks as they fail to execute on their road maps because there is too much mismatch between the sticker price of an NFT and the value it can deliver to consumers.

The core NFT buyer is growing more aware of rug pulls and scams, reducing the likelihood of new collections being created. Though it’s tempting to see gloom in dropping volumes, the reality is that NFTs require a significant washout to weed out those wanting to become rich quickly and motivate actual builders in the industry. Antifragile enterprises that can withstand the storm when migrating from Web2 to Web3 will thrive as vaporware is wiped out during a bear cycle. If timed improperly, agencies and platforms will be wiped out, but those who are ready for an email-style change will maximize high-margin, high-touch projects while collecting long-tail revenue streams.

Whether you’re a developer, a potential user, or an investor, this has significant ramifications. This is likely to be a fast-growing and evolving field. If you blink, you may miss it.

ART & COLLECTABLES

NHL Opens Hockey Collectibles NFT Marketplace

The NHL, along with its Alumni Association and Players’ Association, said on Thursday that it has joined with NFT platform Sweet to build a distinctive NFT marketplace and libraries of NFTs—individual blockchain tokens that denote ownership.

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The NHL’s market will fall between a full-fledged NFT trading platform and a website that enables momentary NFT drops, according to David Lehanski, the league’s executive vice president of business development and innovation.

By creating an NFT marketplace with exclusive releases, the NHL hopes to give fans a little bit of both. In preparation for the commencement of the 2022–2023 season, the NHL’s Sweet marketplace is anticipated to launch in October.

The NHL aims to gamify NFTs with “questing and collecting” components so that fans will interact and can be rewarded with benefits like other NFTs, according to Lehanski, who spoke to Decrypt.

Depending on a player’s performance, some of the NFTs will also be dynamic and alter over time. According to a statement, NFTs will also include “cinematic game highlights from past and present NHL seasons” or surprise packs of NFTs that may be seen in “3D interactive trophy rooms.”

Lehanski claimed that the NHL wasn’t yet ready to reveal which blockchain it would be constructing on. Though it might be on Polygon or Tezos if Sweet’s offerings are any indicator.

Lehanski stated, “We’re looking at everything,” and that the NHL’s top priorities in its search for a blockchain include “cheap gas expenses” and “environmental sustainability.”

The NHL is one of the most recent major professional sports leagues to enter the NFT market, following the NBA’s Top Shot NFTs, the NFL’s “play and own” NFT game, and MLB’s impending NFT contest.

Lehanski commented on the NHL’s approach to NFTs, saying, “There was clearly a lot of temptation to potentially moving very rapidly […] but we thought that was a little shortsighted.” He added that, in his opinion, spending the time to investigate indicators like fan behavior was worthwhile. Especially in relation to digital collectibles and gaming, NFTs have a long-term future as relevant and meaningful items for enthusiasts.

But according to Sweet CEO Tom Mizzone, the NHL’s NFTs won’t simply be targeted at hockey fans who are unfamiliar with cryptocurrencies; seasoned NFT collectors will also be able to participate in a way that feels natural to them.

It will undoubtedly appeal to that degen culture, he continued, but not to the extent that it excludes fancier consumer bases.

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NFT

MoonPay has officially launched HyperMint, a utility NFT minting service

MoonPay, a cryptocurrency payments company, announced Tuesday the debut of HyperMint, a new service that allows businesses to mint up to 100 million non-fungible tokens (NFTs) at once.

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Creators and companies can use the new service to attach photos, music, video, and other metadata to a token on their own platform.

MoonPay had been expanding its service since April, according to The Block. Its official debut is another step in the company’s strategy to build a full suite for businesses looking to release their own digital assets, which it previously referred to as “Amazon Web Services for NFTs.”

“Why take your intellectual property and list it on a secondary platform first, whether you’re Dolce & Gabbana, Selfridges, or Death Row Records?” In an interview with The Block, MoonPay CEO Ivan Soto-Wright said, “You might want to oversee that issuance yourself.”

Fox Corporation, Creative Artists Agency (CAA), Universal Pictures, Death Row Records, the United Kingdom-based luxury store Selfridges, lifestyle and gaming platform FaZe Clan, and music artist Timbaland’s Beatclub are among the companies that have already signed up.

Proof of attendance tokens, for capturing how many individuals attended an event, is one possible use case, according to Soto-Wright.

These digital assets would be utility tokens, as opposed to security tokens, according to MoonPay. Security tokens must be registered with regulatory organizations such the Securities and Exchange Commission in the United States.

MoonPay’s product portfolio already includes a fiat onramp infrastructure that allows people to buy NFTs using a debit or credit card, as well as a concierge service that educates high-net-worth individuals about cryptocurrency. MoonPay has also been rumored to be working on its own wallet in the future.

The introduction of HyperMint comes at a time when many of the most popular NFT projects have seen significant price declines due to the crypto bear market.

Because of their use cases, Soto-Wright believes NFTs will become shielded from broader market situations.

“I believe NFTs will be unpaired [because to crypto market conditions].” But I believe that will be unpaired in part due to the innovation that will accompany this asset class – you’ll see a slew of various NFTs that aren’t solely focused on the price movement of these assets.”

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Crypto and NFT-related accounts are prohibited on WeChat in China

Secondary NFT trading is also included by the policy, as the firm adds that “accounts that provide services or material connected to the secondary transaction of digital collections shall be dealt with.”

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WeChat, China’s most popular social media platform, has revised its policy to prohibit accounts from providing access to crypto or nonfungible token (NFT)-related services.

Accounts involved in the issue, trading, and financing of crypto and NFTs will be restricted or prohibited under the new standards and will fall under the “illegal business” category.

The corporation notes that “accounts that supply services or material relevant to the secondary transaction of digital collections will likewise be handled in accordance with this rule.”

On Monday, Hong Kong-based crypto news writer Wu Blockchain (Colin Wu) noted the move, pointing out the significance of the move given WeChat’s 1.1 billion daily users in China.

“Once such breaches are identified, the WeChat public platform will depending on the severity of the violations, instruct the violating official accounts to rectify within a time limit and restrict some features of the account until the permanent account is banned,” according to the new policy.

Between May and September of last year, the Chinese government implemented a phased ban on the local crypto sector. Given the time of the most recent WeChat policy amendment, it’s possible that the platform has been allowing some crypto activity to go undiscovered since then.

Furthermore, because the assets can be purchased in fiat, there is still a regulatory gray area in the country when it comes to NFTs. Nonetheless, to prevent potential regulatory difficulties related to the financialization of technology, most organizations and platforms prohibit secondary trading.

In April, the China Banking Association, the China Internet Finance Association, and the Securities Association of China issued a joint statement warning the public about the “hidden hazards” of investing in the assets.

Since March, popular platforms such as WeChat and the Ant group-owned WhaleTalk have been distanced from the technology, purportedly eliminating or banning NFT services from their networks due to a lack of regulatory clarity and fear of a Beijing crackdown.

Despite this, a local media report published on Thursday highlighted data revealing that the number of digital collectable platforms in China has increased by fivefold since February 2022, to over 500.

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