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The Next Wave of NFTs Is Here: They’re Called Social NFTs

And this platform is set to dominate the space.

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Non-Fungible Tokens, or NFTs, are everywhere. Though they’ve been around since 2012, earlier this year a huge surge in demand sent the NFT market into space — along with its most prized items, sold for millions of dollars.

What began as an art-centric market is now evolving into many other areas, including the creator economy.

Social NFTs are the next big thing in the NFT space. Here’s why, and which project to watch out for.

Quick Recap: What Are NFTs?

Simply put, NFTs are digital assets you can buy and sell on a blockchain, the open ledger that records each and every transaction on a network. That’s how Paris Hilton defined them a few days ago on the Tonight Show.

Of course, there’s more to unpack.

First, blockchain technology hard-codes the ownership and provenance of NFTs. It’s like a permanent audit trail that can’t be tampered with: one peek into the blockchain is enough to tell frauds from original assets.

Second, NFTs empower creators to cap the supply of their artwork. Limited supply, such as one-of-one editions, are rarer and thus perceived as more valuable.

Third, through what’s called “smart contracts”, NFTs can unlock unique rewards for fans.

When Kings of Leon released the world’s first NFT album, fans received an animated album cover along with a physical, limited-edition vinyl upon purchase.

Finally, once the NFTs are sold out, an entire secondary market opens up where holders can sell their NFTs for profit. A fan who bought the Kings of Leon NFT album when it launched, can now pocket a decent profit by re-selling it on a marketplace like OpenSea.

When they do so, a percentage of royalty will go back to the band; and for every sale that ever happens after that.

NFTs align incentives between creators and supporters like never before — which is why it’s such a revolutionary concept that attracted the attention of brands and celebrities around the world.

“I see NFTs, or non-fungible tokens, as the future of the creator economy. They use blockchain technology to help creators increase the value of their work and share it with fans in real-time. And blockchain technology will allow artists to get paid on secondary sales as well. That’s never happened before and it is mindblowing how much that can change things [for creators].” — Paris Hilton

Recently, the demand and trading volumes for NFTs shot through the roof:

  • ️NFT marketplace Rarible raised another $14 million.
  • OpenSea processed $1.06 billion in NFT sales over the past month alone, a 76,240% growth compared to the same time last year. Recently, daily volumes surpassed their 2020 yearly total.
  • Shopify, one of the largest e-commerce companies in the world, announced it’ll allow merchants to sell NFTs right on their storefronts.

These numbers show a growing interest in NFTs.

And this isn’t limited to virtual art, either. There’s a lot of potential for creators to enter the NFT game too.

This is where the concept of social NFTs comes in.

Enter Social NFTs

Social NFTs are the new way for creators and fans to connect. Let me explain.

A social media influencer with a large audience might decide to turn their content into NFTs. Why would they do that?

Simple:

  • Monetize their existing content and reputation over and over again: a piece of content could be sold exclusively or in multiple editions, and the creator earns a royalty every time someone re-sells their NFTs.
  • Build deeper connections with fans and reward them in unique ways: for instance, when a fan purchases their NFT, they could have access to a monthly call, a private community, or discounts on the creator’s merchandise.

People love to collect items that are rare and valuable. NFTs, let your fans own your most iconic moments in exclusive or limited editions. And, on top of that, they can unlock extra benefits.

The combination of virality and scarcity is what makes social NFTs so attractive.

An influencer can choose to “mint” their most viral TikTok video. The fact the video is viral shows there’s demand for it.

The asset becomes extra rare once turned into an NFT: by the fact it’s viral (scarce content), and by virtue of its limited supply in NFT form (even scarcer).

NFTs takes assets that have been viewed millions of time and make them scarce by giving them a unique ID on the blockchain.

That’s rarer than rare. Social NFTs combine the scarcity of NFTs with the virality of social media. It’s like a match made in heaven.

Viral content + limited supply = hyper valuable assets

As a creator, you could select your most viewed, relevant, and iconic moments captured across social platforms. You could then let your fans buy and sell those exclusive NFTs, unlock unique rewards, and unleash the full power of NFTs.

Sounds good, right? But where do you even begin?

Getting Started With Social NFTs

Social NFTs are a brand new category within the NFT market.

As such, the huge existing platforms like OpenSea and Rarible aren’t suited for influencers and their fans.

They’re overwhelming and aren’t made for social content. Plus, they’re expensive: you have to pay “gas fees” just to list or sell an item because these platforms use the Ethereum blockchain.

Luckily, there’s an alternative to the chaos.

Enter Melon.ooo — the NFT platform for creators and fans.

What’s Melon, you ask?

  • A place to browse your favorite creators’ NFTs.
  • A marketplace to trade creator NFTs and redeem exclusive rewards.
  • The simplest way for creators and fans to enter the world of NFTs.

A place to browse your favorite creators’ NFTs

To start with, Melon makes it super easy to discover NFTs from top creators.

The site has a “Featured Creators” and “Featured NFT Items” section, so you can search for your favorite influencers or scan through what’s on offer:

You can also use the “Explore” feature to filter what type of social NFTs you’re looking for — such as Art, Fashion, or Gaming.

Or choose specific platforms like YouTube or TikTok, and you’ll see social content from these platforms in NFT form:

On top of that, each creator on Melon has their own custom collection page which they can easily share across socials. Every creator on Melon is personally onboarded; this ensures the content they choose to turn into NFTs is authentic and they have the rights to it.

Melon then takes a copy of that content, so that it lives on forever even if it’s removed from its original platform (or the platform itself shuts down as Vine did).

Likewise, fans have their own page where they can show off their NFT collection.

A marketplace to trade creator NFTs and redeem exclusive rewards

Once you see an NFT you like, you can purchase it right from the site with various cryptocurrencies at a very low fee (2.5% only) and, soon, with the $melon token (with 0 fees).

When you click on any NFT, you’ll see its unique details:

  • Description: what the NFT is about, and whether any exclusive benefits are attached to it.
  • Owner: shows the creator and current owner of the asset (so you can verify the original owner is indeed the influencer).
  • History: shows when the asset was first created and any changes in price.
  • Info: the unique asset ID and metadata (the string of code that authenticates each NFT).

Then, click “Buy” and connect your MetaMask wallet to purchase the item.

The simplest way for creators and fans to enter the world of NFTs

Melon is the simplest way to get involved with NFTs, hands down.

The interface is simple and the site is super easy to use. It’s built with influencers and their fans in mind; even those who are new to crypto.

Don’t believe me? Here’s how easy it is to mint your own NFTs on Melon:

Melon is set to become the “NBA Top Shot” of socials, hands down.

We can’t wait to see the platform go live over the coming month.

Closing Thoughts

NFTs will enable the next-level creator economy.

For the first time ever, both creators and fans can capture value by sharing unique digital assets.

Social NFTs will make iconic social media content rarer than ever, via exclusive and limited editions that can’t be replicated anywhere else. NFTs turn content that live on the Internet into super rare assets.

Yet the world of NFTs may seem complicated and overwhelming. Thankfully, a platform like Melon takes all the hassle out of the process.

Creators can now turn their top moments into NFTs their fans can collect and trade. Are you as excited as we are?

NFT

Users’ email addresses are massively exposed due to an OpenSea data breach

The NFT marketplace stated that it has informed law enforcement of the occurrence and that an investigation is in progress.

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The largest nonfungible tokens (NFT) marketplace in the world, OpenSea, has issued a warning to users after learning that a Customer.io employee may have sent the list of OpenSea users’ email addresses to a third party while working on the platform for managing email newsletters and campaigns.

All users who have provided their email addresses to the marketplace, whether it be for the platform or its newsletter, have been impacted by the incident. OpenSea warned consumers about potential phishing attempts after the hack.

On Thursday, the NFT market reported that it had spoken to law enforcement about the incident and that a probe was ongoing.

The most recent data breach is far from the only significant attack this year on OpenSea and its subscribers. The popular NFT marketplace’s Discord server was compromised in May, which sparked a flood of phishing attacks. Numerous user wallets were in fact abused. The platform experienced one of its most severe attacks to date in January, during which a vulnerability allowed attackers to sell NFTs without authorization. The market covered losses of $1.8 million.

Customer.io rival Hubspot was breached in March, exposing users’ usernames, contact information, and email addresses on BlockFi, Swan Bitcoin, NYDIG, and Circle. Names, phone numbers, and email addresses of users of various platforms were disclosed to an unidentified entity.

Hackers may try to contact OpenSea clients by sending emails from domains that resemble OpenSea.io or OpenSea.xyz, according to a warning from OpenSea. Spam calls, texts, and emails have all increased, according to Twitter users.

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NFT

The Future of NFT Gaming Doesn’t Rely on Big Capital Expenditures

Large game publishers typically oppose your ability to trade freely. The economic model used in popular games, where players purchase in-game cash or points in order to unlock more content and improve their experience, is at existential risk from NFTs (non-fungible tokens).

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If it were possible to regulate the flow of NFTs in a closed market, this would be a different story. Interoperability will be key in the future, according to industry upstarts, and digital assets represented by NFTs will be portable from one platform to another.

Large gaming companies generate billions of dollars from microtransactions, and a key factor in their success is their ability to retain players willing to pay money for in-game items. These businesses have developed systems that entirely exclude any legitimate third-party access to certain material or digital assets because they want their player base to invest a lot of money in the game.

NFTs have the potential to be revolutionary since they open the door for broad lending of these assets in addition to allowing speculators to profit. It’s no longer necessary for a player to put a significant number of money into the game in order to fully enjoy it by enabling investors to purchase an NFT and then loan it out to someone – either for a fee or a profit-split arrangement.

How play-to-earn is implemented

A fully developed gaming ecosystem will see the emergence of two different types of stakeholders. Investors who have a sizable portfolio of in-game NFTs are less likely to play the game in exchange for a daily return of $50. Then there are gamers from all over the world, who in certain circumstances would make significantly more money than the minimum wage under a profit-sharing system for lending.

The second category, who can have less money, is more worried about the short-term volatility and low liquidity of digital assets. They are unable to take the risk of accumulating NFTs in the hopes that they will be steadily profitable and hold or increase in value.

In the gaming industry, tradeable digital assets already exist. However, the practice of putting these assets on the blockchain is expanding; this was a general trend in 2021, when NFTs earned $8.4 billion in revenue. The logical next step for this sector is video games, and since more and more of these sales are shifting to blockchain gaming, there may soon be a noticeable increase in established companies moving in-game objects, characters, and skins on-chain.

As opposed to nominally belonging to the investor or player but really being at the mercy of a centralized gaming platform that can ban the user at any time, on-chain assets are designated as unique and belonging to one true owner. It’s more decentralized and provides users a lot more room to choose their own routes, especially when it comes to lending in-game items and lowering entrance barriers.

creating the framework for play-to-earn players to borrow If NFTs result in a rapid expansion of the player base in new markets, they can be extremely advantageous for game producers. Even before one considers how digital assets might be coded to meet cross-platform use cases or be employed in metaverses, making the industry more accessible irrevocably alters the entire landscape.

The compatibility of digital resources

The idea of full cross-metaverse employment of NFTs on a single digital identity raises a host of hitherto unimagined benefits. As a result, potential value is unlocked and speculation may be brought under control in a less erratic and more stable market.

The restrictions must be adjusted and will be based on the rarity of particular assets and what you may do with them. Can they be upgraded? Can you construct on NFT land to increase its value? Should players be able to own an entire mountain, or can they only purchase plots? It will be entirely community-driven if gamers own everything, but creators should have some voice and may feel the need to impose restrictions.

It is likely that a DAO (decentralized autonomous organization) operated system, in which the entire globe is owned by members and NFT holders, is now being developed. However, it is unclear whether this will be sustainable without a rigid set of regulations.

establishing NFT financing

When you attempt to transfer an actual NFT to another user’s digital wallet, problems happen. You would want the loanee to post collateral to secure the loan because there is a danger of the loanee defaulting. This creates a capital cost that acts as a barrier to entry for a sizable number of potential players.

A preferable approach would be one in which the NFT’s utility, or “wrapped,” is the sole thing rented out. An NFT holder can put the asset in a smart contract, specify the loan terms, post it for rent on the market, and let the free market function as it should.

The wrapped NFT is a newly created copy that has the same metadata, URLs, and other characteristics as the original and can be programmed to expire after a specific date. By doing so, the human-trust layer is removed, and the remarkable security that blockchains offer is provided. In essence, this wrapped NFT is only useful and cannot be spent.

It expires, returns to the smart contract at the maturity date, and is burnt as the result of a frictionless, risk-free, and collateral-free NFT lending system. Additionally, if the loanee improves a piece of land or gives a character a lot more playtime, the original NFT might appreciate as a result of the loan.

The blockchain will be updated with these changes as a direct result of the wrapped NFT’s experience. Most NFT projects and protocols are moving in the direction of this methodology in the wake of the infamous Axie Infinity hack, which cost $600 million.

The rumor about large developers

Popular game producers will find it more difficult to avoid presenting some sort of product if current trends continue and the NFT lending sector experiences significant expansion over the following few years.

Ubisoft and Epic Games are already testing, and it’s feasible that NFTs may follow the same trajectory as the idea of cryptocurrencies in general, where everyone will eventually use elements of distributed ledger technology. The notion is that this will become too alluring for businesses to ignore, or they may employ private chains or something similar.

The play-to-earn buzz is not something that traditional gamers like, and they frequently have a point. The overall quality of the market is now relatively low, and players just play these games to earn cryptocurrency, so there isn’t much to get excited about. This has a detrimental effect because it was once hailed as the new paradigm.

The problem of people quitting a project because the value of the rewards has declined due to a token price fall is still there.

Some time may pass before those seeking a better future in NFT gaming. The profitability of large developers’ existing strategies won’t be simply abandoned in favor of a more decentralized NFT-based economy because doing so would undermine their economic model. However, seasoned creators may begin experimenting with already-existing in-game assets as NFTs, and they may profit greatly in this fashion.

Unless their bottom line is in danger or a highly lucrative opportunity arises, multibillion-dollar corporations often adapt slowly. Maybe both of these elements will be crucial in bringing about a change in how we handle digital assets.

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NFT

How Axie Infinity Recovers From $600M Hack and Relaunches New Ronin Bridge?

The popular non-fungible token (NFT) game Axie Infinity’s developer, Sky Mavis, celebrated the Ronin Bridge’s re-launch.

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Users may deposit, stake, withdraw money from the game, and access additional functions thanks to this cross-chain platform. In March 2022, the bridge’s remaining $600 million was drained.

Sku Mavis and the Axie Infinity team have been collaborating with law enforcement since the incident to retrieve the 173,600 ETH and $25.5 million in USDC. In this way, they have re-deployed the Ronin Bridge and compensated any users who lost money as a result of the attack.

All users have been fully compensated, as indicated in the release. Two outside firms, Verichains and Certik, have audited the new Ronin (RON) network. These businesses investigated the Ronin Bridge Smart Contracts and its components, then made their security findings public. Verichains reported

The audit team found certain weak points in the application during the audit process and made some recommendations as a result. The Sky Mavis team addressed and updated the smart contract code in accordance with our suggestions. There were no issues of Medium, High, or Critical severity with the Ronin Bridge Smart Contracts.

The updated architecture of the Ronin Bridge has added a new “circuit-breaker” feature in addition to the two independent audits of its smart contracts. This was specifically included to stop malicious actors from repeating the prior attack or making use of any potential new attack vector.

The corporation will reportedly make an effort to find the stolen monies, according to the notification. As previously announced, all users will be able to withdraw their funds in the interim:

As promised, all wETH and USDC that Ronin Network members own are now completely backed 1:1 by ETH and USDC on Ethereum. The entire user base has been restored.

This prevented the Axie Infinity DAO’s 56,000 ETH from being used. The condition of these assets will depend on how well law enforcement efforts go. The Axie DAO will “vote on next moves for the treasury” if this plan doesn’t produce any results after two years.

How Users Will Be Protected By Axie Infinity From Potential Attacks
The circuit-breaker system will function using a withdrawal restriction depending on total value. Large withdrawals will require the approval of over 70% of the node or, if they exceed $1 million, the signatures of 90% of the validators.

Withdrawals of more above $10 million require the approval of a manual review process that takes up to 7 days and requires the signatures of 90% of the validators. The daily maximum withdrawal amount on the new Ronin Network will be $50 million.

This limit must be manually reset by a Ronin administrator if network transactions exceed it. The project’s leadership stated:

We are more determined than ever to see Ronin establish itself as the de facto standard for consumer and gaming blockchain applications.

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